Gjensidige Forsikring ASA

Earnings Release • Jan 22, 2021

Gjensidige Pensjonsforsikring AS

Highlights Fourth quarter and preliminary full year report 2020

In the following, the figures in brackets indicate the amount or percentage for the corresponding period in the previous year.

Year as a whole

• Profit/loss before tax expense: NOK 166.8 million (196.9)
• Operating income: NOK 421.8 million (430.9)
• Operating expenses: NOK 291.1 million (275.6)
• Operating margin: 30.99 per cent (36.05)
• Return on equity, annualised: 13.1 per cent (17.9)
• Solvency capital (SF): NOK 2,080.7 million (2,678.6)
• Solvency margin (SF): 146.2 per cent (140.3)
• Assets under management: NOK 42,361.7 million (37,335.1)

Fourth quarter

• Profit/loss before tax expense: NOK 56.2 million (61.1)
• Operating income: NOK 108.2 million (129.3)
• Operating expenses: NOK 68.2 million (81.5)
• Operating margin: 36.97 per cent (36.97)

Profit performance

NOK millions	Q4 2020	Q4 2019	1.1.-31.12.2020	1.1.-31.12.2019
Administration fees	40.6	38.7	158.1	152.3
Insurance income	18.2	45.8	81.3	111.4
Management income etc.	49.4	44.8	182.4	167.2
Operating expenses	(68.2)	(81.5)	(291.1)	(275.6)
Net operating income	40.0	47.8	130.7	155.3
Net financial income	16.2	13.3	36.0	41.5
Profit/(loss) before tax expense	56.2	61.1	166.8	196.9
Operating margin 1	36.97%	36.97%	30.99%	36.05%

¹ Operating margin = net operating income/total income

Solid end to a troubled year

Development during the year

Earnings performance

The profit before tax expense was NOK 166.8 million (196.9). The decline was mainly due to lower insurance income and higher operating expenses. The Covid-19 pandemic had a minor impact on the company's results for the period, except from the effects from movements in interest rates and market prices.

Operating income

Total operating income amounted to NOK 421.82 million (430.9).

Administration fees were NOK 158.1 million (152.3). Insurance income was NOK 81.3 (111.4). The main reason for the decrease was the positive risk result last year relating to the paid-up policies.

Management income increased to NOK 182.4 million (167.2) as a result of increased assets under management.

Operating expenses

Operating expenses increased to NOK 291.1 million (275.6), mainly driven by higher depreciation as a result of a shorter depreciation timeframe for IT-investments. A higher head count in response to the growing business volume also had an impact on operating expenses.

Net financial income

Net financial income, including returns on both the group policy portfolio and the corporate portfolio, amounted to NOK 36.0 million (41.5). The decline was due to non-recurring gains from divestments previous year.

Paid-up policy portfolio

The recognised return on the paid-up policy portfolio was 3.5 per cent (4.3). The average annual interest guarantee was 3.4 per cent.

Assets under management

Assets under management increased by NOK 5,026.5 million from year-end 2019. Total pension assets under management amounted to NOK 42,361.7 million (37,335.1) including the group policy portfolio of NOK 7,664.1 million (7,204.2).

Solvency position

The solvency margin reported at the end of the period was 146.2 per cent, down from 153.9 per cent in the previous quarter.

Development during the quarter

Earnings performance

The profit before tax expense decreased to NOK 56.2 million (61.1) reflecting a lower insurance income more than offsetting a positive development in other items. The Covid-19 pandemic had a negligible impact on the segment's results for the quarter.

Operating income

Total operating income amounted to NOK 108.2 million (129.3).

Administration fees were NOK 40.6 million (38.7). Insurance income declined to NOK 18.2 million (45.8), due to a lower recognised risk result. Management income was NOK 49.4 million (44.8), reflecting growth in assets under management.

Operating expenses

Operating expenses were NOK 68.2 million (81.5), the decline reflecting impairment on IT-systems in the fourth quarter last year.

Net financial income

Net financial income was NOK 16.2 million (13.3) as a result of good returns on real estate investments.

Events after the balance sheet date

No significant events have occurred after the end of the quarter.

Outlook

Gjensidige Pensjonsforsikring AS offers occupational pension and disability pension products to individuals. The defined contributions market remains competitive but highly active, creating ample business opportunities. A significant amount of work has been done during the year to prepare for the introduction of individual pension account next year. It is uncertain how this will affect the market, but the company is well prepared to participate in the competition.

Oslo, 21 January 2021

The Board of Gjensidige Pensjonsforsikring AS

Income statement

NOK millions	Q4 2020	Q4 2019	1.1.-31.12.2020	1.1.-31.12.2019
Technical account
Gross written premium	1,042.6	1,059.5	3,913.4	3,938.9
Ceded reinsurance premiums	(16.8)	(15.9)	(75.8)	(65.4)
Transfer of premium reserves from other insurance companies/pension funds	493.9	217.7	1,835.2	1,684.1
Total premiums for own account	1,519.6	1,261.2	5,672.8	5,557.6
Income from investments in associates	63.9	27.7	101.7	73.7
Interest income and dividends etc. from financial assets	49.4	48.4	173.2	170.4
Unrealised gains and losses on investments	(3.4)	(2.0)	(19.3)	17.7
Realised gains and losses on investments	2.4	2.0	(44.8)	18.3
Total net income from investments in the group policy portfolio	112.3	76.2	210.8	280.2
Income from investments in associates	100.6	24.9	153.3	66.2
Interest income and dividends etc. from financial assets			19.5	19.1
Unrealised gains and losses on investments	2,028.3	946.6	1,411.3	2,709.9
Realised gains and losses on investments	243.2	171.9	1,225.0	989.4
Total net income from investments in the investment portfolio	2,372.0	1,143.4	2,809.2	3,784.7
Other insurance-related income	49.4	44.8	182.4	167.2
Gross claims paid	(216.7)	(156.7)	(690.4)	(635.5)
- Paid claims, reinsurers' share	10.5		15.9	19.2
Transfer of premium reserve and statutory reserves to other insurance companies/pension funds	(402.3)	(294.2)	(2,804.8)	(2,143.7)
Total claims	(608.6)	(450.9)	(3,479.3)	(2,760.0)
Change in premium reserve, gross	(126.2)	(95.4)	(455.6)	(513.5)
Change in premium reserves, reinsurers' share	18.8	18.2	69.3	63.1
Change in statutory reserves	(10.3)	(41.2)	(11.8)	(42.5)
Change in value adjustment fund	0.7	1.1	19.6	(15.5)
Change in premium fund, deposit fund and the pension surplus fund	(0.1)	(0.1)	1.9	1.5
Total changes in reserves for the group policy portfolio	(117.1)	(117.5)	(376.6)	(506.9)
Change in premium reserve	(3,501.2)	(1,985.5)	(6,842.8)	(7,455.2)
Change in premium reserves, reinsurers' share	1.6		1.6
Change in other provisions	333.4	145.7	2,275.2	1,426.5
Total changes in reserves for investment portfolio	(3,166.2)	(1,839.8)	(4,565.9)	(6,028.7)
Profit on investment result	(35.2)	22.8	(1.7)	(3.9)
Risk result allocated to insurance contracts	(3.9)	0.7		(22.1)
Total funds allocated to the insurance contracts	(39.1)	23.5	(1.7)	(26.0)
Management expenses	(2.3)	(3.7)	(8.6)	(14.7)
Sales expenses	(6.0)	(3.5)	(22.4)	(19.7)
Insurance-related administration expenses (incl. commissions for reinsurance received)	(59.9)	(74.3)	(260.1)	(241.2)
Total insurance-related operating expenses	(68.2)	(81.5)	(291.1)	(275.6)
Profit/(loss) of technical account	54.1	59.5	160.6	192.6
Interest income and dividends etc. from financial assets	9.1	7.4	21.8	11.1
Unrealised gains and losses on investments Realised gains and losses on investments	(6.7) 2.2	(3.2) 0.9	(10.7) 6.9	3.2 3.4
Total net income from investments in the company portfolio	4.5	5.1	18.0	17.7
Other expenses	(2.5)	(3.5)	(11.9)	(13.4)
Profit/(loss) on non-technical account	2.1	1.6	6.2	4.3
Profit/(loss) before tax expense	56.2	61.1	166.8	196.9
Tax expense	(13.2)	(14.7)	(40.8)	(48.6)
Profit/(loss) before other comprehensive income	43.0	46.4	126.0	148.3
Remeasurement of the net defined benefit liability/asset		(0.8)	(2.5)	(0.8)
Tax on items that are not reclassified to profit or loss	(2.5)
	0.6	0.2	0.6	0.2
Total items that are not reclassified to profit or loss	(1.9)	(0.6)	(1.9)	(0.6)
Total comprehensive income	41.1	45.9	124.1	147.7

Statement of financial position

NOK millions	31.12.2020	31.12.2019
Assets
Other intangible assets	22.2	48.1
Total intangible assets	22.2	48.1
Buildings and other real estate
Right-of-use property	7.5	10.3
Financial assets at amortised cost
Loans and receivables	251.0	225.9
Financial assets measured at fair value
Shares and similar interests	3.7	6.3
Bonds and other securities with fixed income	856.0	751.5
Total financial assets	1,118.2	993.9
Receivables related to direct operations	6.1	7.8
Other receivables	184.4	232.3
Total receivables	190.5	240.1
Cash and cash equivalents	124.9	118.3
Pension assets	1.7	2.4
Total other assets	126.6	120.7
Prepaid expenses and earned, not received income	2.2	1.2
Total assets in the company portfolio	1,459.7	1,404.0
Subsidiaries and associates
Shares in associates	1,036.4	958.2
Financial assets measured at amortised cost
Loans and receivables	5,467.7	5,020.4
Financial assets measured at fair value
Bonds and other securities with fixed income	722.3	824.0
Receivables in the group policy portfolio
Cash and cash equivalents	42.2	23.9
Total investments in the group policy portfolio	7,268.5	6,826.5
Reinsurers' share of insurance-related liabilities in the group policy portfolio, gross	518.3	454.2
Subsidiaries and associates
Shares in associates	1,661.4	1,290.3
Financial assets measured at fair value
Shares and similar interests	28,330.6	24,502.5
Bonds and other securities with fixed income	4,594.3	4,196.5
Receivables in the investment option portfolio	72.3	73.3
Cash and cash equivalents	38.8	68.2
Total investments in the investment option portfolio	34,697.5	30,130.9
Reinsurers' share of insurance-related liabilities in the investment option portfolio, gross	1.6
Total assets in the customer portfolio	42,485.9	37,411.6
Total assets	43,945.6	38,815.6

NOK millions	31.12.2020	31.12.2019
Equity and liabilities
Paid in capital
Share capital	39.0	39.0
Other paid-in capital	82.8	82.3
Total paid-in equity	121.8	121.3
Retained equity
Risk equalisation fund	35.2	38.0
Other earned equity	869.8	743.0
Total earned equity	905.0	780.9
Total equity	1,026.8	902.2
Subordinated debt	299.9	299.8
Premium reserves	7,364.1	6,896.1
Additional statutory reserves	295.8	284.0
Market value adjustment reserves	1.6	21.2
Premium fund, deposit fund and the pension surplus fund	2.7	2.9
Total insurance obligations in life insurance - the group policy portfolio	7,664.1	7,204.2
Premium reserves	34,446.0	29,843.5
Premium fund, deposit fund and the pension surplus fund	251.5	287.4
Total insurance obligations in life insurance - the investment option portfolio	34,697.5	30,130.9
Pension liabilities etc.	4.0	2.5
Tax liabilities
Period tax liabilities	50.8	57.5
Provisions for deferred taxes	28.8	39.4
Total provisions for liabilities	83.6	99.5
Liabilities related to direct insurance	88.2	52.7
Liabilities related to reinsurance	28.1	32.9
Other liabilities	39.8	76.9
Total liabilities	156.0	162.5
Accrued expenses and deferred income	17.6	16.5
Total equity and liabilities	43,945.6	38,815.6

Statement of changes in equity

		ment of the
					Total equity
39.0	81.8	(0.4)	15.3	618.4	754.0
				148.3	148.3
		(0.6)			(0.6)
		(0.6)		148.3	147.7
			22.7	(22.7)
	0.5				0.5
39.0	82.3	(1.0)	38.0	743.9	902.2
				126.0	126.0
		(1.9)			(1.9)
		(1.9)		126.0	124.1
			(2.7)	2.7
	0.5				0.5
39.0	82.8	(2.9)	35.2	872.6	1,026.8
	Share capital	Other paid in capital	Remeasure net defined benefit liab./asset	fund	Risk equalisation Other earned equity

Statement of cash flows

NOK millions	1.1.-31.12.2020	1.1.-31.12.2019
Cash flow from operating activities
Premiums paid, net of reinsurance	5,706.7	4,927.2
Claims paid, net of reinsurance	(674.5)	(616.3)
Net receipts/payments of premium reserve transfers	(2,804.8)	(2,143.7)
Net receipts/payments from financial assets	(1,927.2)	(1,895.7)
Operating expenses paid, including commissions	(231.7)	(261.3)
Taxes paid	(57.5)	(12.5)
Net cash flow from operating activities	11.0	(2.4)
Cash flow from investing activities
Net receipts/payments on sale/acquisition of owner-occupied property, plant and equipment	(0.8)	(27.1)
Dividend between Group companies		(100.0)
Net cash flow from investing activities	(0.8)	(127.1)
Cash flow from financing activities
Net receipts/payments on subordinated debt	(11.8)	(13.3)
Repayment of lease liabilities	(2.6)	(2.4)
Payment of interest related to lease liabilities	(0.3)	(0.7)
Net cash flow from financing activities	(14.6)	(16.4)
Cash and deposits with credit institutions at the start of the period	210.4	356.3
Net cash flow	(4.5)	(145.9)
Cash and deposits with credit institutions at the end of the period	205.9	210.4

Notes

1. Accounting policies

The financial statements as of the fourth quarter of 2020, concluded on 31 December 2020, comprise Gjensidige Pensjonsforsikring AS (GPF) and associated companies. Except of the changes described below, the accounting policies applied in the interim report is the same as those used in the annual report for 2019.

The financial statements as of the fourth quarter of 2020 have been prepared in accordance with the Norwegian Accounting Act and Norwegian Financial Reporting Regulations for Insurance Companies (FOR 2015-12-12-1824). The interim report does not include all the information required in a complete annual report and should be read in conjunction with the annual report for 2019.

New standards and interpretations not yet adopted

A number of new standards, changes to standards and interpretations have been issued for financial years beginning after 1 January 2020. They have not been applied when preparing these financial statements. Those that may be relevant to GPF are mentioned below. GPF does not plan early implementation of these standards.

IFRS 9 Financial instruments (2014) in the insurance operations

IFRS 9 addresses the accounting for financial instruments and is effective for annual periods beginning on or after 1 January 2018. The standard introduces new requirements for the classification and measurement of financial assets, including a new expected loss model for the recognition of impairment losses, and changed requirements for hedge accounting.

IFRS 9 contains three primary measurement categories for financial assets: amortised cost, fair value through other comprehensive income, and fair value through profit or loss. Financial assets will be classified either at amortised cost, at fair value through other comprehensive income, or at fair value through profit or loss, depending on how they are managed and which contractual cash flow properties they have. IFRS 9 introduces a new requirement in connection with financial liabilities earmarked at fair value: where changes in fair value that can be attributed to the liabilities' credit risk are presented in other comprehensive income rather than over profit or loss.

Amendments to IFRS 4 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (2016) The amendments to IFRS 4 permit entities that predominantly undertake insurance activities the option to defer the effective date of IFRS 9 until 1 January 2023. The effect of such a deferral is that the entities concerned may continue to report under the existing standard, IAS 39 Financial Instruments. In addition, the insurance sector of a financial conglomerate is allowed to defer the application of IFRS 9 until 1 January 2023, where all of the following conditions are met:

• no financial instruments are transferred between the insurance sector and any other sector of the financial conglomerate other than financial instruments that are measured at fair value with changes in fair value recognised through the profit and loss account by both sectors involved in such transfers
• the financial conglomerate states in the consolidated financial statements which insurance entities in the group are applying IAS 39
• disclosures requested by IFRS 7 are provided separately for the insurance sector applying IAS 39 and for the rest of the group applying IFRS 9

GPF is an entity that predominantly undertake insurance activities and has therefore decided to make use of this exception.

IFRS 17 Insurance Contracts (2017)

IFRS 17 establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts issued. IFRS 17 is a complex standard that includes some fundamental differences to current accounting for liability measurement and profit recognition. Insurance contracts will be recognised at a risk-adjusted present value of the future cash flows plus an amount representing the unearned profit in the group of contracts (the contractual service margin). If a group of contracts is or become loss-making, the loss will be recognised immediately. Insurance revenue, insurance service expenses and insurance finance income or expenses will be presented separately. IFRS 17 is effective from 1 January 2023. The standard is expected to have an effect on the group's financial statements, significantly changing the measurement and presentation of income and expenses.

Based on our preliminary assessments and on the basis of current operations, other amendments to standards and interpretation statements will not have a significant effect.

The preparation of interim accounts involves the application of assessments, estimates and assumptions that affect the use of accounting policies and the amounts recognised for assets and liabilities, revenues and expenses. The actual results may deviate from these estimates. The most material assessments involved in applying the accounting policies and the most important sources of uncertainty in the estimates are the same in connection with preparing the interim report as in the annual report for 2019.

All amounts are shown in NOK millions unless otherwise indicated. Due to rounding-off differences, figures and percentages may not exactly add up to the exact total figures.

A complete or limited audit of the interim report has not been carried out.

2. Financial assets and liabilities

Fair value

Financial assets and liabilities measured at fair value are carried at the amount each asset/liability can be settled to in an orderly transaction between market participants at the measurements date at the prevailing market conditions.

Different valuation techniques and methods are used to estimate fair value depending on the type of financial instruments and to which extent they are traded in active markets. Instruments are classified in their entirety in one of three valuation levels in a hierarchy on the basis of the lowest level of input that is significant to the fair value measurement in its entirety.

The different valuation levels and which financial assets/liabilities that are included in the respective levels are accounted for below.

Quoted prices in active markets

Quoted prices in active markets are considered the best estimate of an asset/liability's fair value. A financial asset/liability is considered valued based on quoted prices in active markets if fair value is estimated based on easily and regularly available prices and these prices represent actual and regularly occurring transactions at arm's length principle. Financial assets/liabilities valued based on quoted prices in active markets are classified as level one in the valuation hierarchy.

The following financial assets are classified as level one in the valuation hierarchy

• Listed shares
• Norwegian government/government backed bonds and other fixed income securities
• Exchange traded funds

Valuation based on observable market data

When quoted prices in active markets are not available, the fair value of financial assets/ liabilities is preferably estimated on the basis of valuation techniques based on observable market data.

A financial asset/liability is considered valued based on observable market data if fair value is estimated with reference to prices that are not quoted, but are observable either directly (as prices) or indirectly (derived from prices).

The following financial assets/liabilities are classified as level two in the valuation hierarchy

• Currency futures, equity options, forward rate agreements and currency swaps, in which fair value is derived from the value of underlying instruments. These derivatives are valued using common valuation techniques for derivatives (option pricing models etc.).
• Equity funds, bond funds, hedge funds and combination funds, in which fair value is estimated based on the fair value of the underlying investments of the funds.
• Bonds, certificates or index bonds that are unlisted, or that are listed but where transactions are not occurring regularly. The unlisted instruments in this category are valued based on observable yield curves and estimated credit spreads where applicable.
• Interest-bearing liabilities (banking activities) measured at fair value. These liabilities are valued based on observable credit spreads.
• Listed subordinated notes where transactions are not occurring regularly.

Valuation based on non-observable market data When neither quoted prices in active markets nor observable market data is available, the fair value of financial assets/liabilities is estimated based on valuation techniques which are based on non-observable market data.

A financial asset/liability is considered valued based on nonobservable market data if fair value is estimated without being based on quoted prices in active markets or observable market data. Financial assets/liabilities valued based on non-observable market data are classified as level three in the valuation hierarchy.

The only financial assets classified as level three in the valuation hierarchy are shares in Norsk Pensjon and Pensjonsregisteret AS.

Gjensidige Pensjonsforsikring AS

NOK millions	Carrying amount as at 31.12.2020	Fair value as at 31.12.2020	Carrying amount as at 31.12.2019	Fair value as at 31.12.2019
Financial assets
Financial assets at fair value through profit or loss, designated upon initial recognition
Shares and similar interests	3.7	3.7	6.3	6.3
Bonds and other fixed income securities	1,578.2	1,578.2	1,575.5	1,575.5
Shares and similar interests in life insurance with investment options	28,330.6	28,330.6	24,502.5	24,502.5
Bonds and other fixed income securities in life insurance with investment options	4,594.3	4,594.3	4,196.5	4,196.5
Loans and receivables
Bonds and other fixed income securities classified as loans and receivables	5,718.7	6,090.8	5,246.3	5,372.8
Receivables related to direct operations and reinsurance	78.4	78.4	81.2	81.2
Other receivables	184.4	184.4	232.3	232.3
Cash and cash equivalents	205.9	205.9	210.4	210.4
Total financial assets	40,694.3	41,066.3	36,050.9	36,177.5
Financial liabilities
Financial liabilities at amortised cost
Subordinated debt	299.9	301.8	299.8	304.3
Other liabilities	39.8	39.8	76.9	76.9
Liabilities related to direct insurance and reinsurance	116.3	116.3	85.6	85.6
Total financial liabilities	456.0	457.9	462.3	466.8
Gain/(loss) not recognised in profit or loss		370.2		122.0

Valuation hierarchy 2020

The table shows a valuation hierarchy where financial assets/liabilities are divided into three levels based on the method of valuation.

	Level 1	Level 2	Level 3
		Valuation	Valuation
		techniques	techniques
	Quoted prices	based on	based on non
NOK millions	in active markets	observable market data	observable market data	Total
Financial assets
Financial assets at fair value through profit or loss, designated upon initial recognition
Shares and similar interests		2.8	0.9	3.7
Bonds and other fixed income securities		1,578.2		1,578.2
Shares and similar interests in life insurance with investment options		28,330.6		28,330.6
Bonds and other fixed income securities in life insurance with investment options		4,594.3		4,594.3
Financial assets at amortised cost
Bonds and other fixed income securities classified as loans and receivables		6,090.8		6,090.8
Financial liabilities at amortised cost
Subordinated debt		301.8		301.8

Valuation hierarchy 2019

The table shows a valuation hierarchy where financial assets/liabilities are divided into three levels based on the method of valuation.

	Level 1	Level 2 Valuation	Level 3 Valuation
NOK millions	Quoted prices in active markets	techniques based on observable market data	techniques based on non observable market data	Total
Financial assets
Financial assets at fair value through profit or loss, designated upon initial recognition
Shares and similar interests		6.1	0.2	6.3
Bonds and other fixed income securities		1,575.5		1,575.5
Shares and similar interests in life insurance with investment options		24,502.5		24,502.5
Bonds and other fixed income securities in life insurance with investment options		4,196.5		4,196.5
Financial assets at amortised cost
Bonds and other fixed income securities classified as loans and receivables		5,372.8		5,372.8
Financial liabilities at amortised cost
Subordinated debt		304.3		304.3

Reconciliation of financial assets valued based on non-observable market data (level 3) 2020

								Amount of net
								realised/ unrealised gains
		Net realised/						recognised in
		unrealised						profit or loss that
		gains						are attributable
		recognised				Transfers		to instruments
	As at	in profit or	Purch		Settle	into/out of	As at	held as at
NOK millions	1.1.2020	loss	ases	Sales	ments	level 3	31.12.2020	31.12.2020
Shares and similar interests	0.2		0.7				0.9
Total	0.2		0.7				0.9

Reconciliation of financial assets valued based on non-observable market data (level 3) 2019

								Amount of net
								realised/
								unrealised gains
		Net realised/						recognised in
		unrealised						profit or loss that
		gains						are attributable
		recognised				Transfers		to instruments
	As at	in profit or	Purch		Settle	into/out of	As at	held as at
NOK millions	1.1.2019	loss	ases	Sales	ments	level 3	31.12.2019	31.12.2019
Shares and similar interests	0.2						0.2
Total	0.2						0.2

3. Related parties

There have not been any significant transactions with related parties other than ordinary current agreements conducted at arm's length distance.

4. Contingent liabilities

There are no contingent liabilities.

Alternative performance measures and key figures

Q4 2020	Q4 2019	1.1.-31.12.2020	1.1.-31.12.2019
NOK millions		42,361.7	37,335.1
NOK millions		7,664.1	7,204.2
% 36.97	36.97	30.99	36.05
%		3.48	4.34
%		2.99	4.72
%		66.80	67.50
%		13.12	17.95
NOK millions		2,080.7	2,678.6
%		146.2	140.3
NOK millions		640.6	670.2

¹ Operating margin = net operating income/total income

²Recognised return on the paid-up policy portfolio = realised return on the portfolio

³Value-adjusted return on the paid-up policy portfolio = total return on the portfolio

⁴Shared customers = customers having both pension and general insurance products with Gjensidige

5 Return on equity, annualised = Shareholders' share of net profit for the period/average shareholders' equity for the period, annualised

6 Solvency capital (SF) = Solvency capital /Capital requirement under the Solvency II standard formula

7 Solvency margin (SF) = Solvency capital available under the Solvency II standard formula

8 Minimum capital requirement under the Solvency II standard formula

9 Defined as alternative performance measure (APM). APMs are described on www.gjensidige.no/reporting in document named APMs Gjensidige Forsikring Group Q4 2020