Gjensidige Forsikring ASA

Earnings Release • Jul 14, 2020

Best ever second quarter result

Best ever second quarter result

Strong retention, effective pricing measures and solid renewals resulted in

continued high premium growth in the second quarter and a further improvement in

the underlying underwriting result. The investment return in the second quarter

was high, reflecting the financial market rebound. The Group's long term outlook

remains good. The capital position is significantly stronger than what is needed

to support the business. The Board maintains its intention to distribute

dividends to shareholders as soon as the situation allows.

Gjensidige Forsikring Group recorded a profit before tax of NOK 2,476.8 million

(1,722.9) for the quarter. The profit from general insurance operations measured

by the underwriting result was NOK 1,343.8 million (1,257.6), corresponding to a

combined ratio of 80.1 (79.3). The return on financial assets was 1.9 per cent

(0.9) or NOK 1,158.5 million (512.9). The profit after tax was NOK 1,952.1

million (1,341.5). Earnings per share amounted to NOK 3.90 (2.68).

-We are very satisfied with delivering a record strong second quarter result and

maintaining solid operations. Our market position remains strong. I am very

pleased with the efforts of our employees, taking good care of our customers in

these extraordinary times, says CEO Helge Leiro Baastad.

The increase in the underwriting result was driven by 11.2 per cent growth in

earned premiums and an improved underlying frequency loss ratio, partly offset

by lower run-off gains and higher large losses. Earned premiums rose 7.6 per

cent in local currency. The underlying frequency loss ratio improved due to

effective pricing measures and lower claims because of the pandemic. Overall the

Covid-19 pandemic had a slightly positive impact on the Group's underwriting

result, with lower claims on several insurance products due to the pandemic,

partly offset by higher travel insurance claims. Covid-19 related claims for

travel insurance amounted to NOK 71.5 million, recognised in the Corporate

Centre.

The Pension operation recorded a lower profit due to higher operating expenses.

All asset classes contributed positively to the financial result in the second

quarter, reflecting lower interest rates and credit spreads in combination with

strong equity markets.

Year to date the Group recorded a profit before tax of NOK 1,979.7 million

(4,753.6). The result in the first half-year 2020 was significantly impacted by

negative returns on the investment portfolio, reflecting the turmoil in the

financial market in the wake of the Covid-19 situation. The corresponding result

in the first half-year 2019 included the gain from the sale of Gjensidige Bank

with NOK 1.6 billion. The profit from general insurance operations measured by

the underwriting result was NOK 2,401.4 million (2,055.7), corresponding to a

combined ratio of 82.0 (82.9).

The Covid-19 pandemic had a limited impact on the Group's underwriting result in

the first half of 2020. Claims related to travel insurance increased

significantly, but reinsurance coverage limited net claims incurred to NOK 162.1

million, of which NOK 131.6 million was recognised in the Corporate Centre.

Several insurance products, in particular motor insurance, recorded lower claims

because of the pandemic, which had a positive impact on claims in all segments

except Sweden.

The profit after tax from continuing and discontinued operations was NOK 1,472.8

million (4,127.2) and the corresponding earnings per share were NOK 2.95 (8.25).

The return on financial assets was minus 0.6 per cent (plus 2.1) or minus NOK

360.8 million (plus 1,195.1). Current bonds in the match portfolio and high

yield bonds, convertible bonds, current equities and PE funds in the free

portfolio recorded negative results for the period.

Highlights second quarter 2020 (second quarter 2019)

· Profit/(loss) before tax: NOK 2,476.8 million (1,722.9)

· Earnings per share: NOK 3.90 (2.68)

· Earned premiums: NOK 6,765.3 million (6,082.8)

· Underwriting result: NOK 1,343.8 million (1,257.6)

· Combined ratio: 80.1 (79.3)

· Cost ratio: 14.5 (14.9)

· Financial result: NOK 1,158.5 million (512.9)

Highlights year to date 2020 (year to date 2019)

· Profit/(loss) before tax: NOK 1,979.7 million (4,753.6)

· Earnings per share: NOK 2.95 (8.25)

· Earned premiums: NOK 13,335.8 million (12,019.5)

· Underwriting result: NOK 2,401.4 million (2,055.7)

· Combined ratio: 82.0 (82.9)

· Cost ratio: 14.8 (14.9)

· Financial result: NOK minus 360.8 million (plus 1,195.1)

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

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

Forsikring Group Q2 2020.

This information is subject to disclosure under the Norwegian Securities Act

section §5-12.

Contacs:

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 2019, while total

assets were NOK 112 billion.