Gjensidige Forsikring ASA

Earnings Release • Oct 20, 2021

Very solid third quarter result

Very solid third quarter result

Strong operations, effective pricing measures, good risk selection and stringent

cost control resulted in a record-high third-quarter underwriting result. The

return on financial assets was moderate, reflecting market conditions.

Gjensidige's outlook remains promising. The Board has decided to distribute a

special dividend of NOK 4.00 per share.

Gjensidige Forsikring Group recorded a profit before tax of NOK 2,022.0 million

(2,048.4) for the quarter. The profit after tax was NOK 1,495.1 million

(1,550.6) and the corresponding earnings per share were NOK 2.99 (3.10). The

profit from general insurance operations measured by the underwriting result was

NOK 1,804.0 million (1,512.3), corresponding to a combined ratio of 76.0 (78.2).

The main contributors to the improvement were Commercial and Denmark.

The Board has decided to distribute excess capital of NOK 2,000 million,

corresponding to NOK 4.00 per share. The decision was made on the basis of the

Board's authorisation to determine distribution of dividend, granted by the

General Meeting on 24 March 2021. The distribution is in accordance with the

current capital strategy and dividend policy. The payment of the dividend is

pending approval from the Financial Supervisory Authority of Norway. Relevant

key dates will be announced upon approval.

- We are very pleased with the strong results we continue to deliver. We will

continue to focus on growth in our markets. Together with strong and efficient

operations and dedicated employees, this is a prerequisite to delivering solid

results and attractive returns, says CEO Helge Leiro Baastad.

The Covid-19 pandemic had a positive impact on the Group's claims, estimated at

approximately NOK 64 million (41), corresponding to 0.9 percentage points (0.6)

on the loss ratio. The positive effect was primarily due to less travel

activity.

Earned premiums from general insurance increased by 8.2 per cent to NOK 7,516.1

million (6,949.0) in the quarter. Measured in local currency, premiums increased

by 9.1 per cent. Earned premiums increased due to solid renewals and effective

and differentiated pricing measures. The increase in the underwriting result was

primarily due to premium growth. The underlying frequency loss ratio improved by

1.4 percentage points compared with the same quarter last year, driven by

Private, Commercial, Denmark and Sweden. Adjusted for the effects of Covid-19

claims, the underlying frequency loss ratio improved by 1.6 percentage points.

The Pension segment generated a higher profit for the period, driven by an

increase in operating income.

The return on financial assets was 0.3 per cent (0.9) or NOK 207.5 million

(550.6). Moderation of expectations for economic growth and somewhat increased

expectations for inflation resulted in mixed returns for the different asset

classes. Returns on cyclical assets such as equities were tempered, although

there was dispersion across the markets. Real estate and credit performed well.

Year-to-date, the Group recorded a profit before tax of NOK 5,949.3 million

(4,028.1). The profit from general insurance operations measured by the

underwriting result was NOK 4,370.9 million (3,913.8), corresponding to a

combined ratio of 79.8 (80.7). The profit after tax expense was NOK 4,654.7

million (3,023.4). Earnings per share amounted to NOK 9.31 (6.05). The increase

in the underwriting result was driven by 6.8 per cent growth in earned premiums

and higher run-off gains, partly offset by higher large losses. Earned premiums

rose 8.1 per cent measured in local currency. The reported underlying frequency

loss ratio improved somewhat compared with the same period last year. Adjusted

for the effects of the weather- and Covid-19 claims, the underlying frequency

loss ratio improved by 1.6 percentage points.

The Pension segment recorded a higher profit due to higher operating and

financial income.

The return on financial assets was 2.6 per cent (0.3) or NOK 1,565.7 million

(189.8). The rise in interest rates year-to-date had a negative impact on fixed

income investments with long duration. At the same time, lower credit margins

contributed positively. There were also some positive effects from higher

inflation (lower real rates) in the fixed income portfolio. Net of these changes

gave a modest positive return on fixed income securities for the period. An

improved outlook for economic recovery supported returns on fixed income

securities with credit exposure, equities, commodities and real estate.

Highlights third quarter 2021 (third quarter 2020)

· Profit/(loss) before tax: NOK 2,022.0 million (2,048.4)

· Earnings per share: NOK 2.99 (3.10)

· Earned premiums: NOK 7,516.1 million (6,949.0)

· Underwriting result: NOK 1,804.0 million (1,512.3)

· Combined ratio: 76.0 (78.2)

· Cost ratio: 13.6 (13.9)

· Financial result: NOK 207.5 million (550.6)

Highlights year-to-date 2021 (2020)

· Profit/(loss) before tax: NOK 5,949.3 million (4,028.1)

· Earnings per share: NOK 9.31 (6.05)

· Earned premiums: NOK 21,664.8 million (20,284.8)

· Underwriting result: NOK 4,370.9 million (3,913.8)

· Combined ratio: 79.8 (80.7)

· Cost ratio: 14.1 (14.5)

· Financial result: NOK 1,565.7 million (189.8)

Declared dividend

· Special dividend: NOK 2,000 million, corresponding to NOK 4.00 per share

This release contains alternative performance measures (APMs). APMs are

described at www.gjensidige.no/reporting in a document named APMs Gjensidige

Forsikring Group Q3 2021.

This release is issued by Jon Aniksdal, Communication Manager at Gjensidige

Forsikring ASA.

Date and time of publication: 07:00 CET, 20. October 2021

This information is subject to disclosure under the Norwegian Securities Act

section §5-12.

Contactpersons, Gjensidige Forsikring ASA

Head of Communication Øystein Thoresen. Tel: 47 952 33 382

Head of Investor Relations Mitra Hagen Negård. Tel:  47 957 93 631

Gjensidige is a leading Nordic insurance group listed on the Oslo Stock

Exchange. We have about 3,700 employees and offer insurance products in Norway,

Denmark, Sweden and the Baltic states. In Norway, we also offer pension and

savings. The Group's operating income was NOK 28 billion in 2020, while total

assets were NOK 118 billion.