Gjensidige Forsikring ASA

Investor Presentation • Nov 24, 2021

Sustainable value creation

Gjensidige Forsikring Capital Markets Day 2021

24 November 2021

Disclaimer

This presentation and the information contained herein have been prepared by and is the sole responsibility of Gjensidige Forsikring ASA (the "Company"). Such information is being provided to you solely for your information and may not be reproduced, retransmitted, further distributed to any other person or published, in whole or in part, for any purpose. Failure to comply with this restriction may constitute a violation of applicable securities laws. The information and opinions presented herein are based on general information gathered at the time of writing and are therefore subject to change without notice. The Company assumes no obligations to update or correct any of the information set out herein.

These materials may contain statements about future events and expectations that are forward-looking statements. Any statement in these materials that is not a statement of historical fact including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forwardlooking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

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This presentation should not form the basis of any investment decision. Investors and prospective investors in securities of any issuer mentioned herein are required to make their own independent investigation and appraisal of the business and financial condition of such company and the nature of the securities. Any decision to purchase securities in the context of a proposed offering of securities, if any, should be made solely on the basis of information contained in any offering documents published in relation to such an offering. For further information about the Company, reference is made public disclosures made by the Company, such as filings made with the Oslo Stock Exchange, periodic reports and other materials available on the Company's web pages.

Gjensidige Forsikring provides alternative performance measures (APMs) in the financial reports, in addition to the financial figures prepared in accordance with the International Financial Reporting Standards (IFRS). The measures are not defined in IFRS (International Financial Report Standards) and are not necessarily directly comparable to other companies' performance measures. The APMs are not intended to be a substitute for, or superior to, any IFRS measures of performance, but have been included to provide insight into Gjensidige's performance and represent important measures for how management governs the Group and its business activities. Key figures that are regulated by IFRS or other legislation, as well as non-financial information, are not regarded as APMs. Gjensidige's APMs are presented in the quarterly report and presentation. All APMs are presented with comparable figures for earlier periods. The APMs have generally been used consistently over time. Definitions and calculations can be found at www.gjensidige.no/group/investor-relations/reports.

Our agenda today is focused on our ambitions and capabilities

Helge Leiro Baastad CEO

Sustainable value creation

René Fløystøl EVP Private

Market leadership and beyond

Lars G. Bjerklund, EVP Commercial

The leading commercial underwriter

Mats Gottschalk EVP Denmark

Fit for future

Aysegül Cin EVP Sweden & the Baltics

An aspiring challenger in Sweden

Capitalising on attractive market growth in the Baltics

Jostein Amdal CFO

Delivering attractive returns

Sustainable value creation

Helge Leiro Baastad CEO

We have an ambitious strategy for growth and profitability …

Strong ambitions for the benefit of all stakeholders

Ambitious annual financial targets 2022–2025

Taking care of people, and our planet

Key sustainability goals:

• 80% premiums from sustainable products by 2025
• 35% reduction in CO2e from claims handling processes by 2025
• Net 0 emission in investment portfolio by 2050

Catering to increasing need for security and demand for convenience

4

Seeking even deeper relevance for our customers

Become a preferred problem solver and partner in mobility solutions

Help customers to secure safe and good lives at home

Help customers to secure pension, lives and good health

Attract profitable customers, increase share of wallet and maintain retention

Help customers avoid damages and incentivise for sustainable choices

Further profitable growth opportunities

Building capabilities for the future based on our strong brand …

Hard-to-copy position based on our people and culture

8

Further potential in our technological and analytical platforms, customer orientation and pricing capabilities

Technology projects

• Cloud solutions
• Digital system architecture
• New core system

Analytical models

• Automatic risk premium models
• AI customer score
• External and real time data

Customer orientation

• Customer insights
• Digital solutions
• Advanced CRM approach

Pricing capabilities

• Pricing claims inflation
• Analytical renewal models
• Customer risk scoring

Enhanced growth and profitability

• Short time to market
• Competitive pricing
• Cost efficiency

Retaining competence and the unique Gjensidige culture is key to our success

Sustainable solutions are prerequisites for long term value creation

Our focus areas

Our priorities towards 2025

Build on our strong and unique position in Norway

Strengthen profitability and grow outside Norway

Maintain capital discipline and attractive dividends

Enablers Customer insights and relevance, supported by our customer dividend model

Efficient cost base, supported by our operational excellence in distribution and claims handling

Solid capitalisation, providing ample financial flexibility

Private Market leadership and beyond

René Fløystøl EVP Private

Market leadership and beyond

• Stay at the forefront and further improve omnichannel customer communication
• Enhance efficiency in claims processes, and continue to focus on damage prevention and sustainable claims handling
• Deliver on an ambitious growth agenda, fueled by solving a broader range of customer problems

2

Ensuring distribution power through an optimal omni-channel model

Enhanced sales efficiency through automation and AI

Example: Outbound omni-channel prospecting

Before calling

Optimised digital marketing1)

1) Google ads 2) Change in sales based on pre-marketing with Google ads/ Google ads costs. R12m Q3'21.

Enhanced sales efficiency through automation and AI

Example: Outbound omni-channel prospecting

When calling

1) Year-on-year change, after implementing machine learning models with new data 2) Predicted unprofitable customers

Enhanced sales efficiency through automation and AI

Example: Outbound omni-channel prospecting

New tools for sales reps Smart offers: Pre-calculated quotes both in assisted and digital channels Next Best Action: AI-based product suggestions Supporting sales reps with analytics and data 3

During the call After customer contact

4

Adapting the customer journey to increase value

Individualised onboarding

Adapting communication to the outcome of the call, combined with upsell potential, future value and churn risk, using AI

Using assisted and digital channels to complete the buying process or follow up active offers

Delivering customer excellence in claims – when it matters most

Optimal steering to selected vendors with superior market terms

450

strategic partners

>80%

damage assessments by robots1)

Effective claims assessment

1) Share of all digital assessments received from vendor, processed through assessment-robot

Speedy payment and closure

The competition for customer attention is tightening

Improving omni-channel customer communication

Smart offers

Next Best Action in real time

Tracking online journeys

Personalised webpages

Streaming events in real time

Cross functional agile teams

Customer satisfaction at the heart of what we do

Increasing automation and reducing claims handling cost

Private and Commercial Providing excellent claims experiences

and explore new technology

Establish data driven procurement

Ensure that sustainability is at the core of our claims processes

Explore new operating models combining technology and core competence

Innovation to solve our customers' everyday problems

Three focus areas for solving our customers' jobs-to-be-done

Meeting the need for mobility solutions of the future

Actively secure homes, in connection with both transactions and the everyday lives of our customers

Ease navigation of health services, and help customers to live at home longer

We have an ambitious growth agenda, with several initiatives in the pipeline

Gjensidige Mobility Home seller insurance Damage-prevention-as-a-service Health assistance 24/7

Private Market leadership and beyond

Key priorities to secure market leadership

• Stay at the forefront and further improve omni-channel customer communication
• Enhance efficiency in claims processes, and continue to focus on damage prevention and sustainable claims handling
• Deliver on an ambitious growth agenda, fueled by solving a broader range of customer problems

Commercial The leading commercial underwriter

Lars Gøran Bjerklund EVP Commercial

Maintaining our position as the leading commercial underwriter

• Expand use of analytical insight in all parts of our operations
• Provide solid customer concepts with intensified efforts for damage prevention
• Enable our highly competent employees to spend their time in the most value creating way

2

Commercial market characteristics make scale an advantage

• The commercial insurance market is more complex and less digitally mature compared to the retail market
• The market is adapting new technology and facing new requirements and regulations
• Customer expectations to digital solutions and supplier relevance are increasing
• Gjensidige has navigated this market for more than 200 years with
• a high degree of direct distribution, solid growth and profitability and cost efficiency
• 92% customer retention

Further utilising analytical insight in all parts of our operations

• Scale enables granular segmentation, and precise and optimising data usage
• 30 per cent market share and a 200 years history gives a scale advantage
• Flexibility important to ensure timely development in a rapidly changing environment
• Our data platform and advanced models provide a flexible framework
• Competence essential to capitalise on our extensive amount of data
• Effective teams of data engineers and data scientists are established

Improving quality and precision in analytical underwriting

Example: Customer scoring included in analytical repricing

• Customer scoring improves output and effect of annual repricing
• Reducing need for manual underwriting
• Customer score used in repricing of 54% of premium volume, increasing to 75% by 2025
• Introducing customer score as part of pricing new sales

Serving commercial customers in a more digital era

• Making our expertise available supports customer retention and satisfaction
• Aiming to offer customers seamless navigation between digital and serviced channels
• Great effort required in digitally immature commercial insurance market
• We started this journey years back and are ambitious

Automatic data gathering enables us to spend more time providing advice

Providing competent advice in an efficient and convenient manner

• Increasing use of automatic data gathering
• Reducing need for customer input
• Introducing advice based on aggregated own data
• Resulting in more efficient and well prepared customer dialogue, and more time available for providing advice and discussing solutions
• The digital adviser is a good example of an efficient solution that creates value for the customers – and for Gjensidige

Historical and forward-looking insight is essential in developing future value propositions

Exploring new approaches to risk reduction

1) Competitor analysis/ customer satisfaction survey, 2020 (Ipsos) 10

Example: Sensors reducing fire risk

• Offering solution for fire prevention based on continuous monitoring
• Sensor installed in fuse box, tracking temperature changes
• In case of irregular changes the customer receives alert on mobile phone
• The solution enables customer to stop potential fires before they start

Contributing to reduced consumption through more repair and reuse

Adjusting products and processes

• Transforming 80 per cent of the Group's products covered by the taxonomy by 2025
• Including sustainable choices
• Offering incentives for damage prevention

Co-operating with suppliers

• Quality of suppliers is essential we screen suppliers for climate footprint
• Finding common solutions balancing the interests of the customers, the environment and Gjensidige

Driving new market practice

• Taking responsibility as market leader to set new market standards – inducing positive change

Increasing repair and reuse in motor claims

• Initiating new market practice by raising condemnation limit
• Target of increasing use of used spare parts from 1% to 11% within 2025
• Exploring the challenge of battery recycling

Increasing repair and reuse in property claims

Key priorities to maintain our position as the leading commercial underwriter

• Expand use of analytical insight in all parts of our operations
• Provide solid customer concepts with intensified efforts for damage prevention
• Enable our highly competent employees to spend their time in the most value creating way

Denmark Fit for future

Mats C. Gottschalk EVP Denmark

Denmark Fit for future

Fit for future

• Continue journey of profitable growth in core and specialty segments
• Stronger technical and analytical platform to enhance operating efficiency and pricing capabilities
• Increase brand awareness and proactive customer care to establish higher trust and loyalty

2

Well positioned to continue profitable growth

We have have built a strong and scalable franchise in Denmark

4

1) From 2017 to 2021 we have uprated old terms and conditions to new and improved standards on various products

2) Unaided brand awareness increased from avg. 18% in 2019 to 25% in September 2021

3) Growth rates measured in GPE. Gjensidige Denmark adjusted for the acquisition of Mølholm Forsikring (2017/2018)

4) Market growth according to most recent official statistics www.forsikringogpension.dk/statistik/markedsandele-for-skadesforsikring/

Strong performance relative to large competitors

Strong underlying profitability and efficient operations are key capabilities for growth

1) Avg. lead value is in direct sales in retail markets. Measured from Q1 2020 – Q1 2021

2) Underlying frequency loss ratio for Gjensidige Denmark YTD Q3 2019 76,0 vs YTD Q3 2021 69,7

3) Gjensidige Denmark's cost ratio is measured on NPE as reported in official financial reports Tryg DEN, Topdanmark and Alm. Brand's cost ratios is measured on GPE as reported in official financial reports

Well positioned to deliver above-market profitable growth

Challenger of market standards in areas of expertise	API integrated platforms • New products: Global expat • solution, Private health	Change of ownership, specialty travel & health	High customer and industry satisfaction reflected in awards1)
Leveraging our franchise and growing in traditional segments	Omni-channel infrastructure • Advanced CRM • New integrated partnerships • Competitive pricing and cost • effectiveness	Commercial property & retail market segments	New strategic partners and an acquisition in 2021 for further growth2)
Consolidation opportunities in still fragmented market	Strong track record of M&A • Capabilities in realising post • merger synergies and fast integrations	Bolt-on acquisitions

1) Danish AutoAwads 2019 and nominated I 2021 (pending results), Public Sector elite supplier acknowledgment by Mercell 2020 and Best Travel Insurance in Denmark 2020 2) New partners in mobility, bank assurance and real estate brokers

Create differentiating customer experiences

Challenging market standards in our areas of expertise

Example: Change of ownership & health

Change of ownership

Fully IT-integrated into partners' core systems

Scale Access to +40% of real estate transactions in Denmark

Automation Highly automated processes with rule-based UW and digital acceptance flows

Integrations High convenience for both partners and customers

Unique product Unique digital technical report including pictures and descriptions

Health

"Time to talk" free psychological hotline for big and small corona worries

"Online doctor" free online medical advice

"Health compass" customers get access to a personal health counselor

Modular based product tailored to both private and commercial customers

Analytics and CRM at the core of our customer centric strategy

Example: "InsuranceScore" – Denmarks first digital insurance check

We are problem solvers

• Number 1 customer pain: Do my insurances and coverages suit my current needs?
• Our number 1 priority: Solving the problems of our customers

InsuranceScore

Personalised CX

• "InsuranceScore" Denmark's first digital and 100% personalised insurance check
• Based on 100+ variables from our legacy system
• Customers presented with a number (1–19) and personal recommendations

Strongly churn reducing

9/10

• "InsuranceScore" participants rate us 9/10 points in customer satisfaction surveys
• Customers 4x less likely to churn compared to control group

Retail insurance is a technology game and we are at the forefront

Denmark as a technology pioneer within Gjensidige with new core system

Key priorities to be fit for the future

• Continue growth of profitable franchise in core and specialty segments
• Technology investments will deliver new generation of tariffs and products
• Build a trusted brand and evolve towards becoming a customer problem solver

Sweden An aspiring challenger

Aysegül Cin EVP Sweden and the Baltics

Sweden An aspiring challenger

An aspiring challenger

• Strengthen our brand and market position, supported by a digital first approach
• Boost growth through partnerships and bolt-on M&A opportunities

2

• Improve operations with digitalisation and modern IT-platform

Strengthening our core

Improved profitability through strengthened UW and pricing capabilities

Increased efficiency and lower cost ratio

Good increase in sales and customer loyalty

Starting off a digital business transformation

Taking the first steps towards a digital business transformation

• Long-term vision is insurance with one-clickfeeling
• Simple and with a personalised experience
• Empowering customer to make the right decisions with insurance based on the specific customer's needs and behavior
• Instant and automated claims services

Realising digital ambitions with customer centric development

• Swedish development unit covering the whole value chain and with the flexibility to scale up
• Customer centricity implemented in the whole development process
• Cross-functional team set-up and agile principles
• Innovation as part of our way-of-working

Building an agile growth platform

Boost growth and continue to pursue M&A opportunities

Enabling success with an agile growth platform

Boost growth		Efficient and data driven operations
Build digital platform for digital customer journeys & digitise operations	Strengthen capabilities within CRM & analytics	Implement new core system	Develop our partner platform with digital plug and-play solutions
Continue building strong capabilities

Focus on innovation and exploring new opportunties

Drive as much as you need – no milage limitations

Flexible 30-day subscription – Switch car or end your plan

when you need to

parking included

Fixed monthly fee – with everything except fuel and

Renault Zoe (EV) 5 490:- / month

KIA Stonic 5 990:- / month

What Why

First-hand insight in new mobility business models

✓ Build new partnerships and alliances

✓ Expand Gjensidige's position in mobility value chain

✓ Inform insurance product development

Fiat 500 (hybrid) 3 990:- / month

Citroën C3 4 990:- / month

KIA Picanto 3 990:- / month

6 490:- / month

• Opportunity for upscale
• Continue to add new services
• Develop mobility services beyond cars

Key priorities for becoming an aspiring challenger

• Strengthen our brand and market position supported by a digital first approach
• Boost growth through partnerships and bolt-on M&A opportunities
• Improve operations with digitalisation and modern IT-platform

Baltics Capitalising on attractive market growth

Aysegül Cin EVP Sweden and the Baltics

Capitalising on attractive market growth

• Seek organic growth through rebalancing the product mix, an optimal distribution mix and improved analytics
• Strengthen risk management and pricing capabilities
• Improve efficiency through process standardisation, digitalisation and automation

2

Strong outlook for market growth in the Baltics

Promising economic growth outlook1) Immature insurance markets with low insurance penetration2)

Solid core capabilities

Focus areas going forward

Grow premiums

• Increase sales on digital platform
• Optimise distribution through mixed channels, including seeking new partnerships
• Rebalance the product mix by targeting health, property and travel insurance
• Increase sophistication in data analytics

Improve portfolio profitability

• Strengthen tariff and pricing competences
• Enhance risk management and pricing processes
• Implement data driven renewal processes

Ensure efficient operations and sustainable solutions

• Improve claims automation and focus on online claims reporting with straight through processing
• Increase efficiency through process optimisation initiatives
• Contribute to a safer society and reduced carbon intensity

Ready for execution

Key priorities to capitalise on attractive market growth

• Seek organic growth through rebalancing the product mix, an optimal distribution mix and improved analytics
• Strengthen risk management and pricing capabilities
• Improve efficiency through process standardisation, digitalisation and automation

Delivering attractive returns

Jostein Amdal CFO

We have delivered beyond our financial targets...

Enabled by Gjensidige's robust market position, operational excellence and strong capital discipline

...enabling attractive dividends

Regular dividend, NOK per share Special dividend, NOK per share Pay-out ratio regular dividends

Capital > Capital requirement

Capital requirement

Ambitious financial targets...

Profitable growth

• Organic and bolt-ons
• Underwriting excellence
• Broadened customer offering

High operational efficiency

• Digitalisation and automation
• Scale
• Customer loyalty
• Stringent cost control

Strong capital discipline

• Efficient capitalisation
• Disciplined and rational M&A

Enablers Annual financial targets 2022–2025

• Expand use of analytical insight in all parts of operations

…based on high ambitions across our geographies

5

Further improvement in cost efficiency to come

Claims handling cost ratio2)

We have brought down our ratios… …and there is still room for further cost efficiency

Operating and claims handling expenses NOK 5.9 bn3)

Share of claims handling and operating expenses

1) Operating expenses/earned premiums, general insurance 2) Claims handling expenses /earned premiums, general insurance 3) General insurance operations R12M Q3 2021

We will remain cost efficient and make further room for growth

Operational KPIs to support delivery on financial targets

Metric	Target 2022	Status Q3 2021
Customer satisfaction	> 78, Group	79
	> 90%, Norway	90%
Customer retention	> 85%, outside Norway	79%
Sales effectiveness	+ 10%, Group	+23%
Automated tariffs	100%, Group	55%
Digital claims reporting	80%, Norway	80%
Claims straight-through processing	64%, Norway	21%
Claims cost	Reduce by NOK 500 million, Group	NOK 630 million

Good progress on goals set in 2018 Our new operational KPIs towards 2025

Customer orientation Customer satisfaction, Group > 78 Retention:

• Norway > 90%
• Outside Norway > 85%

Efficient and sustainable operations Digitalisation index, Group > +10% annually Digital claims reporting, Group > 85% Automated claims processing1), Norway > 70% Sustainability KPIs, Group

Planned release of excess reserves exhausted by 2022

History of positive run-off gains, also excluding planned reserve releases

Claims reserves NOK 27.6bn1)

Macro trends in favour of stable damage development

• Safer cars and roads
• Strong HSE focus in workplaces
• Damage prevention efforts incentivised by insurers

1) Reserves according to IFRS as at Q3 2021, not including planned releases through 2022 9

Our investment portfolio shall contribute to attractive returns and be ESG compliant

We have a moderate risk appetite

Considerations:

• Match market risk in technical reserves
• Target solvency ratio
• Dividend policy
• The investment portfolio a diversifier

Solvency II sensitivities1)

Social responsible investments – supporting the Paris Agreement

• Signatory to TCFD, CDP, UN Global Compact, UN PRI
• Target net zero carbon for the investment portfolio, at the latest in 2050
• Active governance via external managers and directly versus companies, to be compliant with our ESG policy

Strong capital generation supports dividends

Eligible own funds, approved partial internal model (Group)

Partial Internal Model (PIM)

• Used for capital allocation and pricing optimization
• Received FSA approval for changes in 2020 and 2021
• Continued efforts for full approval of own PIM

1) Approved partial internal model change, changes in risk margin calculation and introduction of own pension account in Norway. 2) Operating SII earnings comprise SII underwriting result and SII financial result of the match portfolio after tax. 3) Dividends over the period including 80% payout ratio according to dividend policy, based on the YTD profit

Targeting an efficient capital base and an optimal capital structure

Solvency margin target 150–200%

Target zone ensures:

• Absorption of normal volatility in results and
• stabilization of dividends over time
• A-rating from S&P
• Capital for organic growth and smaller acquisitions that are not financed by retained earnings
• Buffer for regulatory uncertainty

Risk buffer:

• Ensures that Gjensidige remains over regulatory capital requirements in a severe stress event

Remaining

loan capacity:

• Tier 1: NOK 1.9–2.4bn
• Tier 2: NOK 0.4bn

Remaining focused on delivering attractive returns

Ambitious targets in focus
CR < 85%	Cost ratio < 14%	ROE > 19%	Solvency ratio 150-200%
Promising results outlook and robust capital position
Attractive markets and macro outlook	Solid brand and market position	Efficient operations	Dedicated and competent employees
Solid base to deliver on dividend policy

Gjensidige targets high and stable nominal dividends, and a pay-out ratio over time of at least 80 per cent of profit after tax. Over time, Gjensidige will also pay out excess capital.

Gjensidige's value proposition

• Proven track-record
• Hard-to-copy position in attractive markets
• Strong brand and loyal customer base
• Efficient and scalable operations
• Strong sustainability credentials
• Efficient and robust capital structure
• Attractive dividend policy and unique customer dividend model

Investor Relations

Mitra Hagen Negård

Head of Investor Relations Mitra-Hagen.Negard@gjensidige.no Mobile: (+47) 957 93 631

Kjetil Gill Østvold

Investor Relations Officer Kjetil-gill.ostvold@gjensidige.no Mobile: (+47) 468 63 004

Address

Schweigaards gate 21, PO Box 700 Sentrum, 0106 Oslo, Norway gjensidige.no/ir