Gjensidige Forsikring ASA

Investor Presentation • Apr 22, 2021

Gjensidige
Forsikring Group

1st quarter 2021 results

22 April, 2021

Solid first quarter results

• Pre-tax profit NOK 1,597m
• Underwriting result NOK 1,040m
• 6.1% premium growth
• Strong underlying profitability
• Unfavourable weather conditions
• Positive Covid-19 impact
• Good cost control
• Financial result NOK 556m, return 0.9%

■ UW-result ■ Financial result ■ Other

Strong operations

• Solid performance in Norway
• Maintained superior market position
• Effective pricing measures
• Good progress in Denmark
• Strengthened brand
• New core IT system in pre-launch stage
• Moving forward on digital transformation in Sweden
• Acquired Nordeuropa
• New mobility platform through schysst.se $\bullet$
• Baltics impacted by challenging market conditions $\bullet$

High customer retention in Norway

Moving forward to deliver on our sustainability goals

• Introducing The Swan ecolabel for private $\bullet$ house reconstruction
• Ranked number two in Sustainable Brand Index's Insurance and Pension category
• Added online mental treatment programme to $\bullet$ commercial health insurance coverage in Norway
• Renewed sponsor agreement with the Norwegian $\bullet$ Athletics Association, targeting physical and mental health
• High engagement score among Gjensidige's employees
• Preparing for reporting according to EU taxonomy

Financial performance

Strong underlying UW profitability and financial result

NOK m	Q1 2021	Q1 2020	FY 2020	FY 2019
Private	569	520	2,757	2,025
Commercial	440	494	2,097	1,730
Denmark	216	176	800	599
Sweden		21	76	76
Baltics	(10)	5	68	61
Corporate Centre/costs related to owner	(92)	(105)	(331)	(318)
Corporate Centre/reinsurance	(86)	(53)	(391)	(137)
Underwriting result	1,040	1,058	5,076	4,036
Pension	45	36	167	197
Financial result from the investment portfolio	556	(1, 519)	1,342	2,306
Amortisation and impairment losses of excess value	(30)	(52)	(182)	(256)
Other items	(14)	(19)	(60)	1,471
Profit/(loss) before tax expenses	1,597	(497)	6,342	7,754

6.1 per cent premium growth - 6.4 per cent adjusted for currency effects

Premium development

Key drivers - premium development

• Private +6.2%, mainly price driven
• Commercial +11.3%, price and volume driven
• Denmark $+0.1\%$
• Positive 1.6% in local currency, mainly volume driven
• $\cdot$ Sweden +5.6%
• Positive 2.2% in local currency, mainly volume driven
• Baltics negative 8.2%
• Negative 6.3% in local currency, price and volume driven

Improved loss ratio, adjusted for weather and Covid-19 claims

Premium development

Loss ratio (%)

Key drivers

• Effective pricing measures
• Negative weather impact, estimated at 4.5 percentage points on loss ratio, 3.1 percentage points on underlying frequency loss ratio
• Positive Covid-19 impact estimated at 1.9 percentage points (negative 0.1 in Q1 20) on loss ratio
• Adjusted for both weather and Covid, loss ratio improved by 0.8 percentage points (0.7 percentage point for underlying frequency loss ratio)

Continued good cost control - cost ratio 14.5 per cent

Cost development

• Strong cost discipline across the Group
• Cost ratio 13.9 per cent excluding Baltics

Satisfactory profit for Pension operation

Profit and return

Assets under management

Investment return of 0.9 per cent, reflecting market condition

Investment return per asset class

Figures as at 31.3.2021 ¹Internal rating - rating by Gjensidige. 96% of this portfolio rated as Investment grade.

Balanced investment portfolio

Bonds at amortised cost Fixed income - short duration Other bonds (US/EUR IG, Sovereigns, EMD) High Yield bonds

• Convertible bonds
• Current equities
• PE funds
• Properties
• Other (incl. hedge funds and commodities)

Investment grade

Investment grade (internal rating)¹⁾

• Non-investment grade
• Non-investment grade (internal rating) $1$ )
• Unrated

Successful launch of T1 and T2 - securing optimal capital base

	Restricted Tier 1	Subordinated Tier 2
Maturity	Perpetual	30 years
Amount	NOK 1,200 million	NOK 1,200 million
Rate	3M NIBOR + 2.25% p.a.	3M NIBOR + 1.10% p.a.

Strong capital generation driven by subordinated loans, strong UW and investment result

^<sup>1) Operating SII earnings comprise SII underwriting result and SII financial result of the match portfolio after tax ²⁾ 80% payout ratio according to dividend policy for the accounting year

• Solvency margin 215 per cent including both subordinated loans settled on 7 April
• 197 per cent excluding the two new subordinated loans
• Eligible own funds
• Increased by operating profit, return on the free portfolio and new subordinated loans
• Subtracted formulaic dividend (80 per cent of YTD result)
• Capital requirement
• Market risk increased due to higher exposure to equities and proceeds from new subordinated loans

Moving ahead on operational targets

Metric	Status Q1 2021	Target 2022
Customer satisfaction (CSI)	79	> 78, Group
	90%	> 90%, Norway
Customer retention	79%	> 85%, outside Norway
Sales effectiveness	$+16%$	+ 10%, Group
Automated tariffs	53%	100%, Group
Digital claims reporting	79%	80%, Norway
Claims straight-through processing	17%	64%, Norway
Claims cost	NOK 559 million	Reduce by NOK 500 million, Group

Concluding remarks

• Solid underlying results for the quarter $\bullet$
• Structural growth ambitions $\bullet$
• Robust capital position $\bullet$
• Maintaining strong capital discipline $\bullet$
• Promising outlook expect continued strong $\bullet$ results going forward

Annual financial targets through 2022

Metric	Target
Combined ratio	$86 - 89%1$
Cost ratio	15%
Solvency margin (PIM)	150-200%
ROE after tax	$>20\%2$
UW result outside Norway	NOK 750m (in 2022) 3)
Dividends	Nominal high and stable $(and > 80\% over time)$

Roadshows and conferences post Q1 2021 results

Date	Location	Participants	Event	Arranged by
22 April	Oslo	CEO Helge Leiro Baastad CFO ostein Amdal Head of IR Mitra H. Negård IRO Kjetil Gill Østvold	Roadshow (tel. meetings)	ABGSC
26 April	London	CFO Jostein Amdal Head of IR Mitra H. Negård	Roadshow (tel. meetings)	BofA
6 May	Zürich/Geneva	CFO Jostein Amdal Head of IR Mitra H. Negård	Roadshow (tel. meetings)	Nordea
12 May	London	CEO Helge Leiro Baastad Head of IR Mitra H. Negård	Conference (tel. meetings)	KBW
25 May	Amsterdam	Head of IR Mitra H. Negård IRO Kjetil Gill Østvold	Roadshow (tel. meetings)	Barclays
26 May	London	CFO Jostein Amdal Head of IR Mitra H. Negård	Conference (tel. meetings)	Autonomous
27 May	London	CFO Jostein Amdal Head of IR Mitra H. Negård IRO Kjetil Gill Østvold	Conference (tel. meetings)	Citi
27 May	Stockholm	CEO Helge Leiro Baastad Head of IR Mitra H. Negård	Roadshow (tel. meetings)	Carnegie

Positive claims impact from Covid-19

Claims, NOK million	Q1 21	Q1 20	FY 20
Corporate Centre, gross	$\overline{O}$	(222)	(305)
Corporate Centre, net of reinsurance	$\overline{0}$	(60)	(184)
Private	77	39	240
Commercial	14	30	119
Denmark	34	(12)	124
Sweden	$\overline{2}$	(2)	(23)
Baltics	3	(1)	20
Total impact on claims, net of reinsurance	130	(6)	296

Private

General insurance - cost ratio and loss ratio per segment

Commercial

General insurance - cost ratio and loss ratio per segment

Effect of discounting of claims provisions

Effect of discounting on CR - Q1 2021

Assumptions

• Only claims provisions are discounted $\bullet$ . (i.e. premium provisions are undiscounted)
• Swap rates in Norway, Sweden and Denmark $\bullet$ .
• Euroswap rates in the Baltic countries $\bullet$ .

Large losses 4.2 percentage points - lower than expected

Large losses - reported vs. expected

NOK_m

Large losses per segment

CC = Corporate Centre. Large losses: Losses > NOK 10m. Weather related large losses are included. Large losses in excess of NOK 30m are charged to the Corporate Centre while up to NOK 30m per claim is charged
to the segmen

Gjensidige Forsikring Group 22

Large losses development

~ NOK 1.3bn in large losses expected annually

Large losses per segment - actual vs. expected

Run-off gains 5.4 percentage points - higher than expected

Run-off net

□ Expected ■ Reported

Run-off net per segment

Run-off development

Expected average annual run-off gains of ~4 pp (~NOK 1bn) through 2022

Run-off % of earned premium

Quarterly underwriting results - seasonality in Nordic general insurance

¹⁾ Reported UW result for Q1 2016 was NOK 1,251m. Adjusted for a non-recurring income of NOK 477m related to the pension plans, the UW result was NOK 774m.
²⁾ Reported UW result for Q3 2016 was NOK 712m. Adjusted for a

Norwegian Natural Perils Pool in brief

Details regarding the pool

• As per 01.01.2021 the premium rate is set to 0.065 per thousand of the fire insurance amount, no change from 2020
• Natural perils damages in Norway:
• NOK 0-1,500m covered by general insurance companies based on national market share
• NOK 1,500m-16,000m covered by the Norwegian Natural Perils Pool's reinsurance programme
• Maximum compensation per event is NOK 16,000m
• No limit for the frequency of events

Objects covered

• Fire insurance coverage for buildings and contents in Norway includes coverage for natural catastrophes
• The pool does not cover loss of profits, motor vehicles, leisure boats, and certain other items, which are covered through ordinary insurances
• For damages on private property that cannot be insured, e.g. roads, bridges, farmland and forests, coverage may be sought through the National Natural Perils Fund

Handling of natural perils claims

• The customers report claims to own insurance company
• The insurance company reports claims on to Finance Norway, who coordinates the Norwegian Natural Perils Pool
• Share of claims is allocated to the companies based on national market share for fire insurance
• Through own accounts, the companies cover the allocated claims costs

Gjensidige specific

• Gjensidige is a reinsurer for the pool, for it's own market share
• Natural perils claims are booked in the same month as the claim occurs

23.4% Gjensidige's calculated market share for 2021

Reinsurance - overview valid as from 2021

• Reinsurance is purchased for protection of the Group's capital position and is primarily a capital management tool
• General retention level per claim/event is $\bullet$ around NOK 100m
• For weather-related events the retention $\bullet$ level per claim/event is around NOK 200m
• Maximum retention level per claim/event $\bullet$ hitting more than one reinsurance programme is NOK 500m including any reinstatement premium
• Gjensidige considers additional coverage if this is appropriate considering internal modelling and capital requirement

Practical example, natural perils claim in Norway

A natural perils event covered by the Norwegian Natural Perils Pool occurs and is defined by Finance Norway as a single event. The total industry claims exceed NOK 1,500m

• Gjensidige is allocated its share of the NOK 1,500m claim from the pool
• Gjensidige is in addition allocated its share of the amount exceeding NOK 1,500m, as a reinsurer for the pool
• Gjensidige receives claims directly, for damages not covered by the pool
• Gjensidige's total claims related to the natural perils event exceeds Gjensidige's retention level and hits the catastrophe reinsurance programme
• Gjensidige's net impact for this event is around NOK 200m if the event occurs

Investment strategy supporting high and stable nominal dividends

Match portfolio

• Duration and currency matching versus technical provisions (undiscounted)
• Credit element for increased returns
• Some inflation hedging

Free portfolio

• Compounding and focused on absolute returns
• Dynamic risk management
• Tactical allocation
• Active management fixed income and equities
• Normal risk premiums basis for asset allocation and use of capital

Key characteristics

• Limited risk appetite
• Currency hedging vs NOK ~ 100%
• Limit +/- 10% per currency
• Marked-to-market recognition
• Except bonds at amortised cost
• Stable performance

Investment portfolio

Asset class	Investments, key elements 1)	Benchmark
Match portfolio
Fixed income - short duration	Norwegian money market	ST1X index
Bonds at amortised cost	Government and corporate bonds	Yield provided in quarterly reports
Current bonds	Mortgage, sovereign and corporate bonds, investment grade bond funds and loan funds containing secured debt	IBOX COR 1-3 years QW5C index
Free portfolio
Fixed income - short duration	Norwegian money market	ST1X index
Other bonds	IG bonds in internationally diversified funds externally managed and current bonds	Global Agg Corp LGCPTRUH index
High Yield bonds	Internationally diversified funds externally managed	BOAML global HY HWIC index
Convertible bonds	Internationally diversified funds externally managed	BOAML global 300 conv VG00 index / Exogen factors
Current equities	Mainly internationally and domestic diversified funds externally managed	MSCIAC NDUEACWF index
PE funds	Oil/oil-service/general (Norwegian and Nordic funds)	OSEBX index / oil price
Property	50% of Oslo Areal	IPD index Norway / Exogen factors
Other	Miscellaneous

¹⁾ See quarterly report for a more detailed description

Asset allocation - as at 31.3.2021

Match portfolio

• Carrying amount: NOK 36.1bn $\bullet$ .

• Average duration: 3.4 years $\bullet$

• Fixed income short duration Bonds at amortised cost

• Current bonds

Free portfolio

• Carrying amount: NOK 24.4bn
• Average duration fixed-income $\bullet$ instruments: 3.1 years

Quarterly investment returns

Credit and counterparty risk

Credit exposure

• The portfolio consists mainly of securities in rated companies with high creditworthiness (Investment grade)
• Issuers with no official rating are mainly Norwegian savings banks, municipalities, credit institutions and power producers and distributors

Total fixed income portfolio

Split - Rating	Match portfolio		Free portfolio
	NOK bn	%	NOK bn	%
AAA	13.4	37.0	0.4	2.5
AA	3.1	8.7	7.2	48.5
A	6.4	17.6	2.3	15.5
BBB	4.9	13.5	1.9	13.1
BB	0.1	0.4	0.4	2.6
B	0.9	2.5	0.2	1.3
CCC or lower	0.1	0.4	0.1	0.4
Internal rating 1)	4.8	13.2	0.7	4.9
Unrated	2.4	6.7	1.6	11.1
Fixed income portfolio	36.1	100.0	14.8	100.0
Split - Counterparty	Match portfolio		Free portfolio
	NOK bn	%	NOK bn	%
Public sector	4.7	13.0	2.2	14.8
Bank/financial institutions	18.9	52.5	9.0	61.0
Corporates	12.5	34.5	3.6	24.2
Total	36.1	100.0	14.8	100.0

Capital position per operational areas

(NOK bn)	Approved partial internal model (Group)	Approved partial internal model (general insurance)	Own partial internal model (Group) 1)	Own partial internal model (general insurance) 1)	Gjensidige Pensjons- forsikring
Capital available	23.7	21.7	23.9	21.8	2.3
Capital requirement	11.0	9.9	9.1	7.9	1.5
Solvency margin	215%	218%	263%	274%	150%

Solvency II eligible own funds

Bridging the gap between IFRS equity and Solvency II capital

Figures as at 31.3.2021. GPF = Gjensidige Pensjonsforsikring AS. Deferred tax: All differences in valuation of assets and liabilities are adjusted for tax.
Tax is assumed on the security provision. Miscellaneous: Main effe

Solvency II capital requirements

NOK bn	Approved partial internal model (Group)	Own partial internal model $(Group)^1$
Eligible own funds	23.7	23.9
Capital charge for non-life and health uw risk	8.6	6.7
Capital charge for life uw risk	1.5	1.5
Capital charge for market risk	7.2	6.8
Capital charge for counterparty risk	0.4	0.4
Diversification	(4.7)	(4.9)
Basic SCR	13.1	10.5
Operational risk	0.9	0.9
Adjustments (loss-absorbing capacity of deferred tax)	(3.0)	(2.4)
Total solvency capital requirement	11.0	9.1
Surplus	12.7	14.8
Solvency ratio	215%	263%

Scope regulatory approved PIM

Solvency II sensitivities for the approved partial internal model

Figures as at 31.3.2021. The legal perspective is the regulatory approved version of the partial internal model. Solvency margins reflect best estimate reserves. UFR-sensitivity is very limited.

Subordinated debt capacity

Principles for capacity

	T 1	T 2	Constraint
SII	Max 20% of Tier 1 capital	Max 50% of SCR less other T2 capital items	Must be satisfied at group and solo level

Capacity and utilisation

• Tier 1 remaining capacity is NOK 1.4-1.8bn
• Utilised Tier 1 debt capacity: NOK 2.2bn
• Tier 2 remaining capacity is 0.1bn
• Utilised sub debt: NOK 2.7bn¹⁾
• Utilised natural perils fund: NOK 2.7bn

Equity (NOK m)

Annualised return on equity 22.9 per cent

Annualised return on equity (%)

Market leader in Norway

Market share - Commercial

Market share - Private

Growth opportunities outside Norway

Sources: Insurance Sweden, 4^th quarter 2020 (Gjensidige including Vardia), The Danish Insurance Association 1^st quarter 2020.
Baltics Insurance Supervisory Authorities of Latvia and Lithuania, Estonia Statistics, compe

Gjensidige Pensjonsforsikring - Number five position in the growing Norwegian defined contribution pension market

• Well positioned for continued profitable organic $\bullet$ growth
• Core focus on SMF customers $\bullet$
• Strong profitability $\bullet$
• Multi-channel distribution $\bullet$

Market shares - total AUM NOK 347bn

Gjensidige Pensjonsforsikring - Paid up policies a small part of liabilities

-Share of paid up policies - market total -Share of paid up policies - GPF

AUM defined contribution and paid up policies

Share of paid up policies 1)

Gjensidige Pensjonsforsikring - Balanced group policy portfolio

Group policy portfolio NOK 7.4bn

Bonds at amortised cost

• Property exposure
• $\blacksquare$ Fixed income short duration
• Other financial investments
• Equity funds

... of which paid-up policy portfolio NOK 4.2bn

Bonds at amortised cost

Gjensidige Pensjonsforsikring - Well positioned for long-term growth in the Norwegian defined contribution pension market

Annual contribution (DC) and premium (DB) 1)

Ownership

10 largest shareholders¹⁾

No	Shareholder	Stake (%)
1	Gjensidigestiftelsen	62.24
$\overline{2}$	Folketrygdfondet	4.16
3	Deutsche Bank	3.54
4	BlackRock Inc	3.27
5	Nordea	1.45
6	State Street Corporation	1.07
	The Vanguard Group, Inc.	1.05
8	Svenska Handelsbanken Group	1.00
9	Danske Bank	0.95
10	Scotia Bank	0.87
	Total 10 largest	79.60

Geographical distribution of shares²⁾

Gjensidigestiftelsen ownership policy:

• Long term target holding: >60%
• Can accept reduced ownership ratio in case of acquisitions $\bullet$ . and capital issues when in accordance with Gjensidige's overall strategy

¹>Shareholder list based on analysis performed by Orient Capital Ltd of the register of shareholders in the Norwegian Central Securities Depository (VPS) as per 31 March 2021. This analysis provides a survey of the share

Gjensidige

Gjensidige Forsikring Group 48

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 informatio 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 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 informat 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, th 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 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 forward looking 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.

This presentation does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothin shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. The infor this presentation is subject to verification, completion and change. The contents of this presentation have not been independently verified. While the Company relies on information obtained from sources believed to be reli does not guarantee its accuracy or completeness. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its owners, directors, officers or employees or any person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. None of the Company, its affiliates or any of their respective advisors or representatives or any other per any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. The Company's securities have will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act"), and are offered and sold only outside the United States in accordance with an exemption from registration provided by Regula the US Securities Act.

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 appraisa 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 info 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 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 IFR measures of performance, but have been included to provide insight into Giensidige's performance and represent important measures for how management governs the Group and its business activities. Key figures that are regul 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 ear The APMs have generally been used consistently over time. Definitions and calculations can be found at www.giensidige.no/group/investor-relations/reports.

Notes

Notes

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