Gjensidige Forsikring ASA

Investor Presentation • Jan 22, 2021

Gjensidige
Forsikring Group

4th quarter 2020 results

22 January 2021

Highest ever fourth quarter underwriting result - excluding run-offs

• Pre-tax profit NOK 2,314m
• Underwriting result NOK 1,162m
• 8.9% premium growth
• · Strong underlying frequency loss ratio
• Positive Covid-19 impact
• · Good cost control
• Financial result NOK 1,152m, return 2.0%

Gjensidige Forsikring Group $\overline{2}$

Record high full year result - excluding gain on the sale of the bank in 2019

• Pre-tax profit NOK 6,342m $\bullet$
• Underwriting result NOK 5,076m
• 10.2% premium growth
• Combined ratio 81.3
  • Effective pricing and re-underwriting measures
  • Good progress towards NOK 750m outside Norway
• Good cost control
• Financial result NOK 1,342m, return 2.2% $\bullet$
• Return on equity 19.2% $\bullet$

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)

Proposed regular dividend NOK 7.40 per share in addition to declared special dividend NOK 2.40 per share

Strong track record of generating attractive shareholder returns

Dividend policy

Gjensidige targets high and stable nominal dividends to its shareholders, and a payout ratio over time of at least 80 per cent of profit after tax. When determining the size of the dividend, the expected future capital need will be taken into account.

Over time, Gjensidige will also payout excess capital.

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Our ESG focus areas

Key achievements through 2020

Safe society	Implemented research-based climate insights in tariffs Damage prevention Product innovation Councelling and self-help psychological service offerings Established project to support mental health challenges Increased employee engagement
Reduced $CO2$ intensity	Climate neutral in 2020 Increased digital interaction with customers
Responsible investments	Signatory to UN PRI New Policy for Responsible Investments Established carbon intensity reporting for equity and property investments

Focus in 2021: Prepare for responding to the EU taxonomy

Moving towards becoming our customers' problem solver

Our customer centric corporate strategy...

....and segment priorities

Retain strong & unique position in Norway Exceed customer expectation, strengthen customer relationships

Continued strong position in Denmark Stringent profitability control, further development of business processes

Digital transformation in Sweden Rationalisation, simplification and digitalisation of the customer journey

Profitable growth in the Baltics Rationalisation, simplification and digitalisation of the customer journey ╬

£

$\blacksquare$

Financial performance

NOK m	Q4 2020	Q4 2019	FY 2020	FY 2019
Private	704	550	2757	2025
Commercial	477	428	2097	1730
Denmark	225	99	800	599
Sweden	3	18	76	76
Baltics	5	19	68	61
Corporate Centre/costs related to owner	(66)	(90)	(331)	(318)
Corporate Centre/reinsurance	(187)	(105)	(391)	(137)
Underwriting result	1 1 6 2	920	5076	4036
Pension	56	61	167	197
Financial result from the investment portfolio	1 1 5 2	832	1 3 4 2	2 3 0 6
Amortisation and impairment losses of excess value	(43)	(63)	(182)	(256)
Other items	(13)	(21)	(60)	1471
Profit/(loss) before tax expenses	2 3 1 4	1729	6 3 4 2	7 7 5 4

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Satisfactory profit for Pension operation

Profit and return

Assets under management

$14$

Investment return of 2.0 per cent, reflecting continued rebound

16% 15.1% $14%$ 12% 10% 8% $7.2%$ 6% $4.4%$ $4%$ $2.5%$ $2.1%$ $2%$ $0.5%$ $0%$ Fixed income (Match) come (Free) equities (Free) properties (Free) other (Free)

Investment return per asset class

Figures as at 31.12.2020¹ Internal rating - rating by Gjensidige. 96% of this portfolio rated as Investment grade.

Balanced investment portfolio

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Moving ahead on operational targets

Gjensidige Forsikring Group

Metric	Status Q4 2020	Target 2022
Customer satisfaction (CSI)	79	> 78, Group
Customer retention	90%	> 90%, Norway
	79%	> 85%, outside Norway
Sales effectiveness	$+10%$	+ 10%, Group
Automated tariffs	52%	100%, Group
Digital claims reporting	80%	80%, Norway
Claims straight-through processing	17%	64%, Norway
Claims cost	NOK 483 million	Reduce by NOK 500 million, Group
$CO2$ -intensity	Annual reporting	Reduce year by year, Group

Record high customer satisfaction

Concluding remarks

• Solid results for the fourth quarter and full year 2020
• Encouraging outlook for results $\bullet$
• Structural growth ambitions $\bullet$
• Strong capital position $\bullet$

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 $(and > 80\% over time)$

Appendix

Roadshows and conferences post Q4 2020 results

Date	Location	Participants	Event	Arranged by
22 January	Oslo	CEO Helge Leiro Baastad CFO ostein Amdal Head of IR Mitra H. Negård IRO Kjetil Gill Østvold	Roadshow (tel. meetings)	Pareto
25 January	London	CEO Helge Leiro Baastad Head of IR Mitra H. Negård	Roadshow (tel. meetings)	ABGSC
28 January	Frankfurt	CFO Jostein Amdal Head of IR Mitra H. Negård	Roadshow (tel. meetings)	Nordea
29 January	Copenhagen	CEO Helge Leiro Baastad Head of IR Mitra H. Negård	Roadshow (tel. meetings)	Danske Bank
8 February	Paris	CEO Helge Leiro Baastad Head of IR Mitra H. Negård	Roadshow (tel. meetings)	Carnegie
$16 - 17$ February	Toronto, Montreal, Boston and New York	CFO ostein Amdal Head of IR Mitra H. Negård	Roadshow (tel. meetings)	DNB
16 March	London	CEO Helge Leiro Baastad Head of IR Mitra H. Negård	Conference (tel. meetings)	Morgan Stanley

Gjensidige Forsikring Group 20

Positive claims impact from Covid-19

Claims, NOK million	Q1 20	Q2 20	Q3 20	Q4 20	FY 20
Corporate Centre, gross	(222)	(38)	(24)	(20)	(305)
Corporate Centre, net of reinsurance	(60)	(72)	(31)	(22)	(184)
Private	39	69	49	83	240
Commercial	30	25	17	47	119
Denmark	(12)	108	$\overline{7}$	22	124
Sweden	(2)	(11)	(5)	(4)	(23)
Baltics	(1)	14	3	3	20
Total impact on claims, net of reinsurance	(6)	132	41	129	296

Effect of discounting of claims provisions

Effect of discounting on CR - Q4 2020

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 $\bullet$

NOK m NOK m

Appendix

Large losses development

~ NOK 1.25bn in large losses expected annually

Large losses per segment - actual vs. expected

Run-off development

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

Run-off % of earned premium

Appendix

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

Appendix

Reinsurance - overview valid as from 2021

• Reinsurance is purchased for protection of
  the Group's capital position and is primarily
  a capital management tool $\bullet$
• 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
  hitting more than one reinsurance
  programme is NOK 500m including any $\bullet$ reinstatement premium
• Gjensidige considers additional coverage if
  this is appropriate considering internal
  modelling and capital requirement

Practical example, natural perils claim in Norway

Example: Natural perils event

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

Appendix

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

Match 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

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Contribution from the portfolios

Asset allocation as at 31.12.2020

Quarterly investment returns

Balanced geographical exposure

Match portfolio

Free portfolio, fixed-income instruments

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Split - Rating	Match portfolio		Free portfolio
	NOK bn	%	NOK bn	%
AAA	13.9	38.1	0.9	7.5
AA	3.3	8.9	4.1	33.7
A	6.1	16.7	2.3	18.5
BBB	4.6	12.5	1.9	15.1
BB	0.1	0.3	0.4	3.2
B	0.8	2.1	0.2	1.6
CCC or lower	0.1	0.2	0.1	0.5
Internal rating 1)	5.3	14.6	0.9	7.5
Unrated	2.4	6.6	1.5	12.5
Fixed income portfolio	36.4	100.0	12.3	100.0
Split - Counterparty	Match portfolio		Free portfolio
	NOK bn	%	NOK bn	%
Public sector	5.2	14.2	3.6	29.1
Bank/financial institutior	19.0	52.2	5.1	41.6
Corporates	12.2	33.6	3.6	29.3
Total	36.4	100.0	12.3	100.0

(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	21.0	19.1	21.1	19.3	2.1
Capital requirement	10.6	9.5	8.5	7.4	1.4
Solvency margin	198%	201%	248%	260%	146%

Gjensidige Forsikring Group 41

Bridging the gap between IFRS equity and Solvency II capital

NOK bn	Approved partial internal model (Group)	Own partial internal model $(Group)^{1}$
Eligible own funds	21.0	21.1
Capital charge for non-life and health uw risk	8.7	6.7
Capital charge for life uw risk	1.4	1.4
Capital charge for market risk	6.6	6.2
Capital charge for counterparty risk	0.3	0.3
Diversification	(4.4)	(5.6)
Basic SCR	12.7	10.0
Operational risk	0.9	0.9
Adjustments (loss-absorbing capacity of deferred tax)	(3.0)	(2.4)
Total solvency capital requirement	10.6	8.5
Surplus	10.4	12.6
Solvency ratio	198%	248%

	Т1	T2	Constraint
SII	Max 20% of Tier 1 capital	Max 50% of SCR less other T 2 capital items	Must be satisfied at group and solo level

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Equity (NOK m)

Annualised return on equity 19.2 per cent

Annualised return on equity (%)

Market leader in Norway

Market share - Commercial

Market share - Private

Ownership

10 largest shareholders¹⁾

No	Shareholder	Stake (%)
1	Gjensidigestiftelsen	62.24
$\overline{2}$	Folketrygdfondet	4.29
3	Deutsche Bank	3.58
4	BlackRock Inc	3.04
5	Nordea	1.36
6	State Street Corporation	1.11
7	Svenska Handelsbanken Group	1.08
8	The Vanguard Group, Inc.	1.00
9	Danske Bank	0.95
10	ORIX Corporation	0.92
	Total 10 largest	79.41

Geographical distribution of shares²⁾

Gjensidige Foundation 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

¹Shareholder list based on analysis performed by Orient Capital Ltd of the register of shareholders in the Norwegian Central Securities Depository (VPS) as per 31 December 2020. This analysis provides a survey of the sha

Gjensidige

Gjensidige Forsikring Group - 50

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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 calclualtions can be found at www.gjensidige.no/reporting.

Notes

Notes

Investor Relations

Mitra Hagen Negård

Head of Investor Relations Mitra-Hagen.Negard@gjensidige.no Mobile: +47 95 79 36 31

Kjetil Gill Østvold

Investor relations officer Kjetil-gill.ostvold@gjensidige.no Mobile: +47 46 86 30 04

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