Gjensidige Forsikring Group – 4

th Quarter and Preliminary Full year 2019 Report 1

Group highlights Fourth quarter and preliminary full year 2019 report

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

Year as a whole

Group

Profit/(loss) before tax expense: NOK 7,753.8 million (4,265.0)
Earnings per share: NOK 13.19 (7.44)

General Insurance

Earned premiums: NOK 24,650.4 million (24,052.8)
Underwriting result: NOK 4,036.4 million (3,605.8)
Combined ratio: 83.6 (85.0)
Cost ratio: 14.7 (15.2)
Financial result: NOK 2,306.4 million (820.9)

Fourth quarter

Group

Profit/(loss) before tax expense: NOK 1,728.6 million (1,661.2)
Earnings per share: NOK 2.95 (2.61)

General Insurance

Earned premiums: NOK 6,313.8 million (6,081.2)
Underwriting result: NOK 919.6 million (1,914.4)
Combined ratio: 85.4 (68.5)
Cost ratio: 15.2 (14.8)
Financial result: NOK 832.5 million (negative 231.0)

Proposed dividend

Proposed dividend: NOK 6,125 million (3,550)
Proposed dividend per share: NOK 12.25 (7.10)
- Of which regular dividend: NOK 7.25
- Of which special dividend: NOK 5.00

Profit performance Group

NOK millions	Q4 2019	Q4 2018	1.1.-31.12.2019	1.1.-31.12.2018
General Insurance Private	550.5	811.1	2,025.1	1,934.8
General Insurance Commercial	428.2	1,035.6	1,729.8	1,548.2
General Insurance Denmark	99.0	124.5	599.3	434.5
General Insurance Sweden	18.2	45.5	75.9	78.2
General Insurance Baltics	19.4	17.4	60.9	68.5
Corporate Centre - costs related to owner	(90.4)	(80.2)	(317.7)	(379.1)
Corporate Centre - reinsurance 1	(105.3)	(39.5)	(136.9)	(79.3)
Underwriting result general insurance	919.6	1,914.4	4,036.4	3,605.8
Pension	61.1	56.3	196.9	166.6
Financial result from the investment portfolio	832.5	(231.0)	2,306.4	820.9
Amortisation and impairment losses of excess value – intangible assets	(63.2)	(63.6)	(256.4)	(264.6)
Other items	(21.4)	(14.9)	1,470.5	(63.8)
Profit/(loss) before tax expense 2	1,728.6	1,661.2	7,753.8	4,265.0
Alternative performance measures
Large losses 3, 4	211.4	200.8	635.0	954.7
Run-off gains/(losses) 3	338.0	1,384.1	1,363.2	2,356.9
Loss ratio 3	70.3%	53.8%	68.9%	69.8%
Underlying frequency loss ratio 3, 5	72.3%	73.2%	71.8%	75.6%
Cost ratio 3	15.2%	14.8%	14.7%	15.2%
Combined ratio 3	85.4%	68.5%	83.6%	85.0%

1 Large losses in excess of NOK 30.0 million are charged to the Corporate Centre, while claims of less than NOK 30.0 million are charged to the segment in which the large losses occur. As a main rule, the Baltics segment has a retention level of EUR 0.5 million, while the Swedish segment has a retention level of NOK 10 million. Large losses allocated to the Corporate Centre amounted to NOK 163.4 million (202.9) for the year as a whole and NOK 84.9 million (39.5) in the quarter. Accounting items related to reinsurance are also included. ² The profit before tax expense is presented for the continuing operation (excluding Gjensidige Bank).

³ Defined as an alternative performance measure (APM). APMs are described at www.gjensidige.no/reporting in a document named APMs Gjensidige Forsikring Group Q4 2019. 4 Large losses = loss events in excess of NOK 10.0 million. Expected large losses for the quarter were NOK 300.0 million.

⁵ Underlying frequency loss ratio = claims incurred etc. excluding large losses and run-off gains/(losses) divided by earned premiums

A strong fourth quarter and record high full year result

The result for the fourth quarter 2019 was strong, driven by continued improvement in the underlying underwriting result and significantly higher returns on financial assets. The result for the full year 2019 increased significantly compared with 2018, driven by gains on the sale of Gjensidige Bank, successful pricing measures, solid renewals, better weather conditions in Norway and good progress outside Norway. The Board proposes a dividend of NOK 12.25 per share, consisting of a regular dividend of NOK 7.25 and a special dividend of NOK 5.00.

Group profit performance

Development during the year

Gjensidige Forsikring Group recorded a profit before tax expense of NOK 7,753.8 million (4,265.0) for the year. The sale of Gjensidige Bank was completed on 1 March, with proceeds of approximately NOK 5.6 billion and a gain for the Group of NOK 1.6 billion recorded in the first quarter. The profit before tax expense excluding this gain was a record high NOK 6,173.5 million.

The profit from general insurance operations measured by the underwriting result was NOK 4,036.4 million (3,605.8), corresponding to a combined ratio of 83.6 (85.0).

The return on financial assets was 4.1 per cent (1.5) or NOK 2,306.4 million (820.9).

The tax expense amounted to NOK 1,197.6 million (883.5), resulting in an effective tax rate of 15.4 per cent (20.7). The effective tax rate was impacted by the sale of shares in Gjensidige Bank and other realised and unrealised gains and losses on equity investments in the EEA.

The profit after tax expense from continuing and discontinued operations was NOK 6,593.8 million (3,716.4) and the corresponding earnings per share were NOK 13.19 (7.44).

Earned premiums from general insurance increased to NOK 24,650.4 million (24,052.8) for the full year. The underwriting result increased due to price increases, adjustments to terms and conditions, re-underwriting and efficiency measures in addition to more favourable weather conditions in Norway compared to the previous year. The underlying frequency loss ratio improved by 3.8 percentage points. Lower large losses also contributed to the improved results, although they were offset by significantly lower run-off gains. Updated reserve reviews carried out during the fourth quarter of 2018 revealed NOK 1,080 million higher excess claims reserves than previously anticipated. This increase in the excess reserves was released in its entirety in the fourth quarter of 2018, in addition to other run-off gains, resulting in total run-off gains of NOK 1.4 billion.

The 12-month rolling underlying profitability of the motor insurance line in Norway reached a turning point during the first quarter and continued to improve through the rest of the year to a satisfactory level as a result of effective profitability measures.

Earned premiums in the Private segment increased by 1.3 per cent. The underwriting result increased due to improvement in the underlying profitability of the motor insurance line and more favourable weather conditions.

Earned premiums in the Commercial segment increased by 7.4 per cent due to increased prices, which together with an improved underlying frequency loss ratio that was partly due to more favourable weather conditions, led to an increase in underwriting results.

The Danish segment recorded a decrease of 1.2 per cent in earned premiums measured in local currency. The underwriting result improved mainly due to a lower underlying frequency loss ratio.

Earned premiums in the Swedish segment were down 9.8 per cent measured in local currency. The underwriting result decreased mainly due to lower earned premiums, partly offset by an improved underlying frequency loss ratio.

Earned premiums in the Baltic segment increased by 1.8 per cent measured in local currency. The underwriting result was lower than the previous year, mainly driven by a higher underlying frequency loss ratio.

The Pension segment generated a higher profit for the full year, driven by a growing customer portfolio and increased assets under management.

Gjensidige Bank was recorded as a discontinued operation until the closing of the sale on 1 March 2019. The profit after tax expense in the first two months of the year was NOK 37.6 million (334.9 for 2018).

The return on financial assets was higher than the previous year, with positive contributions from all asset classes.

Development during the quarter

The Group recorded a profit before tax expense of NOK 1,728.6 million (1,661.2) for the quarter. The profit from general insurance operations measured by the underwriting result was NOK 919.6 million (1,914.4), corresponding to a combined ratio of 85.4 (68.5). The return on financial assets was 1.4 per cent (minus 0.4) or NOK 832.5 million (minus 231.0).

The profit after tax expense was NOK 1,473.4 million (1,304.2). Earnings per share amounted to NOK 2.95 (2.61).

Adjusted for extraordinary run-off gains of NOK 1.080 million in the fourth quarter 2018, the underwriting result improved. The improvement was driven by 3.8 per cent growth in earned premiums combined with an improved underlying frequency loss ratio as a result of effective pricing and re-underwriting measures across all segments.

The Pension operation recorded an increased profit due to higher net operating income.

The return on financial assets in the quarter was higher than in the same period the previous year, with positive contributions from all asset-classes except private equity in the free portfolio.

Equity and capital position

The Group's equity amounted to NOK 26,192.2 million (23,845.2) at the end of the year. The return on equity was 28.2 per cent (17.3). Excluding the NOK 1.6 billion gain on the sale of Gjensidige Bank, the return on equity was 22.6 per cent. The solvency margins at the end of the year were:

Approved Partial Internal Model¹ : 206 per cent
Own Partial Internal Model² : 250 per cent

The solvency margins are calculated net of the NOK 6,125 million kroner in dividend proposed by the Board.

The guarantee scheme provision is treated as a liability in accordance with instructions from the Financial Supervisory Authority of Norway. In Gjensidige's opinion, special Norwegian provisions that are actually an equity element should be treated as solvency capital. Gjensidige will continue to make endeavours to ensure that the regulations are in line with this view.

Gjensidige has an 'A' rating from Standard & Poor's.

¹ Regulatory approved partial internal model

² Partial internal model with own calibration

General Insurance Private

Development during the year The underwriting result was NOK 2.025,1 million (1,934.8). Lower run-off gains were more than offset by the improvement in the underlying profitability of the motor insurance line and more favourable weather conditions. The combined ratio was 77.2 (77.9).

Earned premiums increased to NOK 8,872.4 million (8,762.5), mainly due to price increases for motor and property insurance. Price increases were implemented for all main product lines. The number of insured objects within motor and property insurance declined somewhat compared with the same period the previous year, both as a result of the ongoing pricing measures and because of the previously announced termination of the NITO partner agreement with effect from 1 January 2019. The trend improved during the year, however.

Claims incurred amounted to NOK 5,682.6 million (5,720.7). The loss ratio improved to 64.0 (65.3), primarily driven by a 3.7 percentage point improvement in the underlying frequency loss ratio. A positive effect from lower large losses was more than offset by lower run-off gains. Both the motor and property insurance lines showed improved profitability, reflecting the difference in weather conditions. The profitability of the motor insurance line also reflected significant pricing measures and adjustments to terms and conditions in response to claims inflation. The negative 12-month rolling underlying profitability trend for motor, excluding the extraordinary weather effects in the previous year, reached a turning point during the first quarter 2019 and continued to improve to a satisfactory level in subsequent quarters.

Operating expenses amounted to NOK 1,164.7 million (1,106.9) The cost ratio was 13.1 (12.6).

Development during the quarter

The underwriting result was NOK 550.5 million (811.1). The decrease in the underwriting result was primarily driven by significantly lower run off gains. The combined ratio was 75.3 (63.6).

Earned premiums were stable at NOK 2,230.1 million (2,230.2) The number of insured objects within motor and property insurance increased compared with the third quarter 2019. Earned premiums increased for most product lines, but the increase was mainly offset by changes in intra-year accruals.

Claims incurred amounted to NOK 1,375.3 million (1,148.7). The loss ratio increased to 61.7 (51.5), mainly due to significantly lower run-off gains. The underlying frequency loss ratio improved by 0.7 percentage points following effective profitability measures for the motor insurance line. The profitability of the property insurance line was weaker than in the same quarter in 2018. Travel insurance and accident and health also recorded improved profitability.

Operating expenses amounted to NOK 304.3 million (270.5). The cost ratio was 13.6 (12.1).

General Insurance Private

NOK millions	Q4 2019	Q4 2018	1.1.-31.12.2019	1.1.-31.12.2018
Earned premiums	2,230.1	2,230.2	8,872.4	8,762.5
Claims incurred etc.	(1,375.3)	(1,148.7)	(5,682.6)	(5,720.7)
Operating expenses	(304.3)	(270.5)	(1,164.7)	(1,106.9)
Underwriting result	550.5	811.1	2,025.1	1,934.8
Amortisation and impairment losses of excess value – intangible assets	(7.2)	(4.3)	(26.6)	(17.5)
Large losses 1	22.8	35.3	38.9	142.2
Run-off gains/(losses) 1	130.3	385.5	467.3	787.2
Loss ratio 1	61.7%	51.5%	64.0%	65.3%
Underlying frequency loss ratio 1	66.5%	67.2%	68.9%	72.6%
Cost ratio 1	13.6%	12.1%	13.1%	12.6%
Combined ratio 1	75.3%	63.6%	77.2%	77.9%

General Insurance Commercial Development during the year

The underwriting result was NOK 1,729.8 million (1,548.2). Lower run-off gains were more than offset by higher earned premiums and an improved underlying frequency loss ratio, partly due to more favourable weather conditions. The combined ratio was 78.8 (79.6).

Earned premiums increased to NOK 8,164.1 million (7,603.3), reflecting pricing measures and solid renewals. All the main product lines recorded higher premiums. The overall portfolio quality is solid, reflecting good risk selection and risk pricing.

Claims incurred amounted to NOK 5,608.6 million (5,182.8). The loss ratio increased to 68.7 (68.2), reflecting significantly lower run-off gains, a 6.1 percentage point improvement in the underlying frequency loss ratio and lower large losses. The underlying frequency loss ratio decreased as a result of effective pricing and re-underwriting measures and improved weather conditions. The improvement in profitability was mainly in the property insurance line.

Operating expenses amounted to NOK 825.7 million (872.3), corresponding to a cost ratio of 10.1 (11.5) The decrease was mainly due to higher earned premiums and continued efficient operations.

Development during the quarter

The underwriting result was NOK 428.2 million (1,035.6). The decrease was due to the high run-off gains in the same quarter the previous year. The combined ratio was 79.6 (47.0).

Earned premiums increased to NOK 2,099.5 million (1,953.2), reflecting pricing measures and solid renewals. All the main product lines recorded higher premiums.

Claims incurred amounted to NOK 1,476.9 million (701.9). The loss ratio increased to 70.3 (35.9) due to lower run-off gains. The result also reflects lower large losses and a 0.8 percentage point improvement in the underlying frequency loss ratio. The underlying frequency loss ratio decreased as a result of effective pricing and re-underwriting measures, for both the property and motor insurance lines.

Operating expenses amounted to NOK 194.4 million (215.6), corresponding to a cost ratio of 9.3 (11.0). The cost ratio was positively impacted by higher earned premiums and efficient operations.

General Insurance Commercial

NOK millions	Q4 2019	Q4 2018	1.1.-31.12.2019	1.1.-31.12.2018
Earned premiums	2,099.5	1,953.2	8,164.1	7,603.3
Claims incurred etc.	(1,476.9)	(701.9)	(5,608.6)	(5,182.8)
Operating expenses	(194.4)	(215.6)	(825.7)	(872.3)
Underwriting result	428.2	1,035.6	1,729.8	1,548.2
Large losses 1	43.7	112.7	355.4	523.9
Run-off gains/(losses) 1	140.2	889.7	617.0	1,268.4
Loss ratio 1	70.3%	35.9%	68.7%	68.2%
Underlying frequency loss ratio 1	74.9%	75.7%	71.9%	78.0%
Cost ratio 1	9.3%	11.0%	10.1%	11.5%
Combined ratio 1	79.6%	47.0%	78.8%	79.6%

General Insurance Denmark

Development during the year The underwriting result was NOK 599.3 million (434.5). The increase was mainly driven by a lower underlying frequency loss ratio. The combined ratio was 87.9 (91.1).

Earned premiums amounted to NOK 4,960.1 million (4,904.6). Measured in local currency, earned premiums decreased by 1.2 per cent, as a result of price increases and re-underwriting for the commercial lines and for selected private lines.

Claims incurred amounted to NOK 3,642.0 million (3,766.2). The loss ratio improved to 73.4 (76.8), mainly driven by a 3.7 percentage point decrease in the underlying frequency loss ratio. The decrease in the underlying frequency loss ratio reflects improvement in the profitability of private and commercial lines as a result of the ongoing pricing measures.

Operating expenses amounted to NOK 718.8 million (704.0). The cost ratio was broadly stable at 14.5 (14.4), despite the development in earned premiums, due to continued focus on operating efficiency.

Development during the quarter

The underwriting result was NOK 99.0 million (124.5). The decrease in the underwriting result was mainly driven by higher large losses and lower run-off gains, partly offset by an improved underlying frequency loss ratio. The combined ratio was 92.4 (89.8).

Earned premiums amounted to NOK 1,301.1 million (1,226.0). Measured in local currency, earned premiums increased by 1.6 per cent. The premium development reflects a stabilisation of the portfolio after a period of customer attrition driven by higher pricing.

Claims incurred amounted to NOK 1,001.2 million (913.2). The loss ratio was 77.0 (74.5), negatively impacted by higher large losses and lower run-off gains, partly offset by a 4.6 percentage point decrease in the underlying frequency loss ratio. The decrease reflects improvements in the profitability of commercial and private lines.

Operating expenses amounted to NOK 200.9 million (188.3). The cost ratio was 15.4 (15.4).

General Insurance Denmark

NOK millions	Q4 2019	Q4 2018	1.1.-31.12.2019	1.1.-31.12.2018
Earned premiums	1,301.1	1,226.0	4,960.1	4,904.6
Claims incurred etc.	(1,001.2)	(913.2)	(3,642.0)	(3,766.2)
Operating expenses	(200.9)	(188.3)	(718.8)	(704.0)
Underwriting result	99.0	124.5	599.3	434.5
Amortisation and impairment losses of excess value – intangible assets	(35.1)	(36.5)	(142.9)	(159.0)
Large losses 1	60.0	13.4	77.3	55.7
Run-off gains/(losses) 1	19.2	61.9	174.9	171.0
Earned premiums in local currency (DKK) 1	964.6	949.1	3,759.6	3,805.8
Loss ratio 1	77.0%	74.5%	73.4%	76.8%
Underlying frequency loss ratio 1	73.8%	78.4%	75.4%	79.1%
Cost ratio 1	15.4%	15.4%	14.5%	14.4%
Combined ratio 1	92.4%	89.8%	87.9%	91.1%

The underwriting result was NOK 18.2 million (45.5). The decrease in the underwriting result was driven by lower run-off gains and increased operating expenses, partly offset by an improved underlying frequency loss ratio. The combined ratio was 95.0 (87.5).

Earned premiums increased to NOK 364.7 million (362.5). Measured in local currency, earned premiums decreased by 0.8 per cent, reflecting a reduction in the insurance portfolio due to the termination of a large unprofitable account. The underlying increase in earned premium is due to improvements in the commercial portfolio.

Claims incurred amounted to NOK 263.2 million (252.5). The loss ratio was 72.2 (69.7), reflecting lower run-off gains, partly offset by a 4.4 percentage point decrease in the underlying frequency loss ratio. The improvement in the underlying frequency loss ratio was the result of improved risk selection in the commercial portfolio.

Operating expenses increased to NOK 83.3 million (64.5). The cost ratio was 22.8 per cent (17.8).

General Insurance Sweden Development during the year

The underwriting result was NOK 75.9 million (78.2). The decrease in the underwriting result was mainly driven by lower earned premiums partly offset by an improved underlying frequency loss ratio. The combined ratio was 94.6 (95.0).

Earned premiums decreased to NOK 1,405.8 million (1,569.2). Measured in local currency, earned premiums decreased by 9.8 per cent, reflecting a reduction in the insurance portfolio following repricing measures for private insurance lines and the termination of two large unprofitable accounts.

Claims incurred amounted to NOK 1,058.6 million (1,231.7). The loss ratio was 75.3 (78.5), positively impacted by a 3.2 percentage point improvement in the underlying frequency claims loss ratio. The improvement was a consequence of ongoing price increases and efforts to improve risk selection in both the private and commercial portfolios.

Operating expenses increased to NOK 271.3 million (259.3). The cost ratio was 19.3 per cent (16.5), impacted by lower earned premiums.

General Insurance Sweden

NOK millions	Q4 2019	Q4 2018	1.1.-31.12.2019	1.1.-31.12.2018
Earned premiums	364.7	362.5	1,405.8	1,569.2
Claims incurred etc.	(263.2)	(252.5)	(1,058.6)	(1,231.7)
Operating expenses	(83.3)	(64.5)	(271.3)	(259.3)
Underwriting result	18.2	45.5	75.9	78.2
Amortisation and impairment losses of excess value – intangible assets	(15.8)	(17.0)	(63.9)	(70.2)
Large losses 1	0.0	0.0	0.0	30.0
Run-off gains/(losses) 1	14.6	39.8	31.6	64.7
Earned premiums in local currency (SEK) 1	385.2	388.4	1,511.0	1,675.6
Loss ratio 1	72.2%	69.7%	75.3%	78.5%
Underlying frequency loss ratio 1	76.2%	80.6%	77.5%	80.7%
Cost ratio 1	22.8%	17.8%	19.3%	16.5%
Combined ratio 1	95.0%	87.5%	94.6%	95.0%

The underwriting result amounted to NOK 19.4 million (17.4), as a result of higher run-off gains and earned premiums, partly offset by a higher underlying frequency loss ratio. The combined ratio was 93.4 (93.5).

Earned premiums amounted to NOK 292.7 million (268.0). Measured in local currency, earned premiums increased by 4.4 per cent, driven by sales growth in the accident, health, and motor insurance lines.

Claims incurred amounted to NOK 189.9 million (171.8). The loss ratio was 64.9 (64.1) after a 3.4 percentage point increase in the underlying frequency loss ratio was offset by higher run-off gains. The increase in the underlying frequency loss ratio was due to margin pressure in motor and health insurance.

Operating expenses amounted to NOK 83.4 million (78.9). The cost ratio was 28.5 (29.4). The improvement was mainly due to effective ongoing restructuring and cost-saving initiatives, focusing on operational efficiency.

General Insurance Baltics

Development during the year The underwriting result amounted to NOK 60.9 million (68.5),

mainly due to a higher underlying frequency loss ratio. The combined ratio was 94.6 (93.7).

Earned premiums amounted to NOK 1,126.9 million (1,078.8). Measured in local currency, earned premiums rose by 1.8 per cent, reflecting sales growth in the accident, health and motor insurance lines. This was offset by somewhat lower prices as a result of fierce competition, particularly in motor insurance.

Claims incurred amounted to NOK 728.7 million (675.9). The loss ratio was 64.7 (62.7), reflecting a 2.9 percentage point increase in the underlying frequency loss ratio, due to less favourable weather conditions in the first quarter and margin pressure.

Operating expenses amounted to NOK 337.3 million (334.4). The cost ratio was 29.9 (31.0). The improvement was mainly due to ongoing restructuring and cost-saving initiatives, focusing on operational efficiency.

General Insurance Baltics

NOK millions	Q4 2019	Q4 2018	1.1.-31.12.2019	1.1.-31.12.2018
Earned premiums	292.7	268.0	1,126.9	1,078.8
Claims incurred etc.	(189.9)	(171.8)	(728.7)	(675.9)
Operating expenses	(83.4)	(78.9)	(337.3)	(334.4)
Underwriting result	19.4	17.4	60.9	68.5
Amortisation and impairment losses of excess value – intangible assets	(3.8)	(3.6)	(14.7)	(14.5)
Large losses 1	0.0	0.0	0.0	0.0
Run-off gains/(losses) 1	9.9	2.1	35.8	24.4
Earned premiums in local currency (EUR) 1	29.0	27.8	114.4	112.3
Loss ratio 1	64.9%	64.1%	64.7%	62.7%
Underlying frequency loss ratio 1	68.3%	64.9%	67.8%	64.9%
Cost ratio 1	28.5%	29.4%	29.9%	31.0%
Combined ratio 1	93.4%	93.5%	94.6%	93.7%

The pension segment reported a profit before tax expense of NOK 61.1 million (56.3).

Administration fees increased to NOK 38.7 million (37.2) and insurance income to NOK 45.8 million (24.0), both for the same reasons as described above. Management income rose to NOK 44.8 million (40.3) driven by increased assets under management.

Operating expenses rose to NOK 81.5 million (59.7), driven by increased business volume and an impairment on IT systems.

Net financial income was NOK 13.3 million (14.5).

Assets under management increased by NOK 1,963.0 million during the fourth quarter, reflecting a positive market trend.

Pension

Development during the year

The profit before tax expense was NOK 196.9 million (166.6). The increase was driven by higher operating income.

Administration fees increased to NOK 152.3 million (144.4), driven by a growing customer portfolio. Insurance income increased to NOK 111.4 million (72.6), driven by a higher risk result, portfolio growth and lower costs related to reinsurance. Management income increased to NOK 167.2 million (150.5) as a result of growth in assets under management.

Operating expenses increased to NOK 275.6 million (241.0), driven by increased business volume and an impairment on IT systems.

Net financial income, including returns on both the group policy portfolio and the corporate portfolio, amounted to NOK 41.5 million (40.2).

The year-to-date return on the paid-up policy portfolio was 4.3 per cent (5.6). The decrease was related to non-recurring effects in 2018 following a change in the classification of unrealised gains relating to property investments. The average annual interest guarantee was 3.4 per cent.

Assets under management increased by NOK 6,647.0 million from year end 2018. Total pension assets under management amounted to NOK 37,335.1 million (30.688.2) including the group policy portfolio of NOK 7,204.2 million (6,586.4).

Pension

NOK millions	Q4 2019	Q4 2018	1.1.-31.12.2019	1.1.-31.12.2018
Administration fees	38.7	37.2	152.3	144.4
Insurance income	45.8	24.0	111.4	72.6
Management income etc.	44.8	40.3	167.2	150.5
Operating expenses	(81.5)	(59.7)	(275.6)	(241.0)
Net operating income	47.8	41.9	155.3	126.5
Net financial income	13.3	14.5	41.5	40.2
Profit/(loss) before tax expense	61.1	56.3	196.9	166.6
Run-off gains/(losses) 1	0.0	0.0	0.0	0.0
Operating margin 1	36.97%	41.23%	36.05%	34.41%
Recognised return on the paid-up policy portfolio 2			4.34%	5.61%
Value-adjusted return on the paid-up policy portfolio 3			4.72%	4.30%

¹ Defined as an alternative performance measure (APM). APMs are described at www.gjensidige.no/reporting in a document named APMs Gjensidige Forsikring Group Q4 2019. ² Recognised return on the paid-up policy portfolio = realised return on the portfolio

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

Management of financial assets and properties

The Group's investment portfolio includes all investment funds in the Group, except for investment funds in the Pension segment. The investment portfolio is split into two parts: a match portfolio and a free portfolio. The match portfolio is intended to correspond to the Group's technical provisions. It is invested in fixed-income instruments that match the duration and currency of the technical provisions. The free portfolio consists of various assets. The allocation of assets in this portfolio must be seen in conjunction with the Group's capitalisation and risk capacity, as well as the Group's risk appetite at all times. Results from the use of derivatives for tactical and risk management purposes are assigned to the respective asset classes. Currency risk in the investment portfolio is generally hedged close to 100 per cent, within a permitted range of +/- 10 per cent per currency.

Development during the year

At the end of the period, the investment portfolio totalled NOK 59.1 billion (52.8). The financial result for the year was NOK 2,306.4 million (820.9), which corresponds to a return on total assets of 4.1 per cent (1.5).

Match portfolio

The match portfolio amounted to NOK 34.1 billion (34.5). The portfolio yielded a return of 2.8 per cent (2.0), excluding changes in the value of the bonds recognised at amortised cost. Bonds recognised at amortised cost amounted to NOK 14.9 billion (15.7). Unrealised excess value amounted to NOK 0.5 billion (0.8) at the end of the period. The reinvestment rate for new investments in the portfolio of bonds held at amortised cost was approximately 3.0 per cent on average in the fourth quarter, while the running yield on the portfolio of bonds held at amortised cost was 3.6 per cent at the end of the period.

The average duration of the match portfolio was 3.5 years. The average term to maturity for the corresponding insurance liabilities was 3.8 years. The distribution of counterparty risk and credit rating is shown in the charts on page 13. Securities without an official credit rating amounted to NOK 8.0 billion (9.0). Of these securities, 4.3 per cent (6.1) were issued by Norwegian savings banks, while the remainder were mostly issued by Norwegian power producers and distributors, property companies, industry and municipalities. Bonds with a coupon linked to the development of the Norwegian consumer price index accounted for 2.5 per cent (6.4) of the match portfolio.

The geographical distribution³ of the match portfolio is shown in the chart on the next page.

³ The geographical distribution is related to issuers and does not reflect actual currency exposure.

Financial assets and properties

		Result Q4		Result 1.1.-31.12.		Carrying amount 31.12.
NOK millions	2019	2018	2019	2018	2019	2018
Match portfolio
Money market	19.9	11.8	90.5	57.5	4,818.7	4,917.9
Bonds at amortised cost 1	283.9	150.4	771.7	642.1	14,916.1	15,698.5
Current bonds 2	72.4	(116.1)	89.9	7.0	14,327.1	13,892.5
Match portfolio total	376.3	46.1	952.1	706.5	34,062.0	34,508.9
Free portfolio
Money market	18.6	5.5	58.2	26.9	6,812.3	3,703.2
Other bonds 3	36.3	29.1	230.8	(23.0)	4,552.9	3,912.7
High yield bonds 4	24.0	(19.4)	105.4	(12.8)	1,101.8	436.1
Convertible bonds 4	83.7	(51.9)	168.1	(11.3)	1,725.3	713.8
Current equities 5	194.5	(349.5)	444.7	(217.1)	3,047.3	2,466.2
PE funds	(23.0)	15.4	91.6	189.5	1,232.3	1,346.6
Properties	134.5	113.6	373.6	275.8	4,803.9	4,608.8
Other 6	(12.4)	(20.0)	(118.3)	(113.3)	1,716.8	1,119.6
Free portfolio total	456.2	(277.2)	1,354.3	114.4	24,992.4	18,307.1
Financial result from the investment portfolio 7	832.5	(231.0)	2,306.4	820.9	59,054.4	52,816.0
Financial income in Pension	13.3	14.5	41.5	40.2
Interest expense on subordinated debt Gjensidige Forsikring ASA	(10.1)	(8.0)	(36.5)	(30.9)
Interest expense on the lease liability	(7.6)	-	(31.5)	-
Realised gains on subsidiaries	(1.5)	-	1,580.3	-
Net income from investments	826.6	(224.6)	3,860.3	830.2

¹ There was a profit of NOK 151.1 in the fourth quarter due to early redemption of an inflation linked secured bond.

² The item includes discounting effects of the insurance liabilities in Denmark and Sweden, and a mismatch between interest rate adjustments on the liability side in Denmark and the corresponding interest rate hedge. Investments include mortgage, sovereign and corporate bonds, investment grade bond funds and loan funds containing secured debt. ³ The item includes investment grade, emerging markets and current bonds. Investment grade and emerging market bonds are investments in internationally diversified funds that are externally managed.

4 Investments in internationally diversified funds that are externally managed.

⁵Investments mainly in internationally diversified funds that are externally managed. The equity risk exposure is reduced by NOK 369.9 million due to derivatives.

⁶ The item includes currency hedging related to Gjensidige Sweden and Gjensidige Denmark, lending, paid-in capital in Gjensidige Pensjonskasse, profit/loss effects from a total return swap with Gjensidige Pensjonskasse, hedge funds and finance-related expenses.

Free portfolio

The free portfolio amounted to NOK 25.0 billion (18.3) at the end of the period. The return was 6.0 per cent (0.6). The increase in assets was mainly due to the sale of Gjensidige Bank ASA.

Fixed-income instruments

The fixed-income instruments in the free portfolio amounted to NOK 14.2 billion (8.8), of which money market investments, including cash, accounted for NOK 6.8 billion (3.7). The rest of the portfolio was invested in Norwegian government bonds and international bonds (investment grade, high yield and convertible bonds). The total fixed-income portfolio yielded a return of 4.4 per cent (negative 0.2). A fall in interest rates and lower credit spreads were the main drivers of the positive returns.

At the end of the period, the average duration in the portfolio was approximately 3.4 years. The distribution of counterparty risk and credit rating is shown in the charts on the next page. Securities without an official credit rating amounted to NOK 3.5

billion (1.3). Of these securities, 10.1 per cent (6.0) were issued by Norwegian savings banks, while the remainder were mostly issued by industry and municipalities. The geographical distribution⁴ of the fixed-income instruments in the free portfolio is shown in the chart above.

Equity portfolio

The total equity exposure at the end of the period was NOK 4.3 billion (3.8), of which NOK 3.0 billion (2.5) consisted of current equities and NOK 1.2 billion (1.3) of PE funds. The return on current equities was 15.6 per cent (negative 6.4). PE funds generated a return of 6.9 per cent (14.8).

Property portfolio

At the end of the period, the exposure to commercial real estate in the portfolio was NOK 4.8 billion (4.6). The property portfolio yielded a return of 8.0 per cent (7.0).

⁴ The geographical distribution is related to issuers and does not reflect actual currency exposure.

Return per asset class

Per cent	Q4 2019	Q4 2018	1.1.-31.12.2019	1.1.-31.12.2018
Match portfolio
Money market	0.4	0.2	1.8	1.2
Bonds at amortised cost 1	1.9	1.0	5.0	4.0
Current bonds 2	0.5	(0.8)	0.6	0.1
Match portfolio total	1.1	0.1	2.8	2.0
Free portfolio
Money market	0.3	0.1	1.0	0.6
Other bonds 3	0.8	0.9	4.9	(0.8)
High yield bonds 4	2.2	(4.3)	10.5	(2.8)
Convertible bonds 5	4.8	(7.2)	12.3	(1.1)
Current equities 5	6.4	(11.2)	15.6	(6.4)
PE funds	(1.7)	1.2	6.9	14.8
Properties	2.8	2.7	8.0	7.0
Other 6	(1.1)	(1.8)	(12.1)	(8.4)
Free portfolio total	1.9	(1.5)	6.0	0.6
Return on financial assets 7	1.4	(0.4)	4.1	1.5

¹ There was a profit of NOK 151.1 in the fourth quarter due to early redemption of an inflation linked secured bond.

²The item includes discounting effects of the insurance liabilities in Denmark and Sweden, and a mismatch between interest rate adjustments on the liability side in Denmark and the corresponding interest rate hedge. Investments include mortgage, sovereign and corporate bonds, investment grade bond funds and loan funds containing secured debt. ³ The item includes investment grade, emerging market and current bonds. Investment grade and emerging market bonds are investments in internationally diversified funds that are externally managed.

4 Investments in internationally diversified funds that are externally managed.

5 Investments mainly in internationally diversified funds that are externally managed. The equity risk exposure is reduced by NOK 369.9 due to derivatives.

The financial result for the total investment portfolio was NOK 832.5 million (minus 231.0) in the quarter. This corresponds to a return on financial assets of 1.4 per cent (minus 0.4).

The match portfolio yielded 1.1 per cent (0.1), excluding changes in the value of the portfolio valued at amortised cost. The return on the free portfolio was 1.9 per cent (minus 1.5). All asset classes except for PE contributed positively in the fourth quarter.

Organisation

The Group had a total of 3,674 employees at the end of the fourth quarter, compared with 3,711 at the end of third quarter.

The composition of the Group's employees was as follows: 1,875 (1,884) in general insurance operations in Norway, 70 (70) in Gjensidige Pensjonsforsikring, 724 (736) in Denmark, 265 (267) in Sweden and 740 (754) in the Baltic states (excluding agents). The figures in brackets refer to the number of employees at the end of the third quarter.

Events after the balance sheet date

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

Dividend

The Board has proposed a dividend based on the profit for the 2019 financial year of NOK 6,125 million (3,550). This corresponds to NOK 12.25 (7.10) per share, of which NOK 7.25 is a regular dividend and NOK 5.00 is a special dividend. The regular dividend corresponds to a pay-out ratio of 72 per cent (96), adjusted for the gain from the sale of Gjensidige Bank.

Gjensidige targets high and stable nominal dividends to its shareholders, and a pay-out 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 pay out excess capital.

Strategy and outlook

The Group's annual financial and solvency targets for the period 2019 through 2022 are as follows:

Combined ratio between 86 and 89 per cent (undiscounted)
- Corresponding to 90 to 93 per cent given zero run-off gains
- Average annual run-off gains of approximately NOK 1 billion are still expected through 2022
Cost ratio <15 per cent

Solvency margin based on the Partial Internal Model (both the regulatory approved model and the model with internal calibration) between 150 and 200 per cent
- To support an 'A' rating, stable regular dividends over time, financial flexibility for smaller acquisitions and organic growth not financed through retained earnings, as well as providing a buffer for regulatory changes.
Return on equity after tax > 20 per cent
- Corresponding to > 16 per cent excluding run-off gains

These are financial targets and should not be regarded as guidance for any specific quarter or year. Unexpected circumstances relating to the weather, the proportion of large losses and run-off gains or losses could contribute to a combined ratio that is above or below the annual target range.

Gjensidige's ambition is to become the most customeroriented general insurance company in the Nordic region. The Group's priority is to retain its strong and unique position in Norway and to continue improving its profitability and growth outside Norway. Furthermore, the Group will focus on ensuring continued capital discipline, including delivering attractive returns to shareholders. A fundamental prerequisite for long term value creation is sustainable choices and solutions.

Geopolitical uncertainty, low interest rates and financial challenges in several key economies reflect an uncertain economic situation. The macroeconomic outlook in the Nordic region and the outlook for Gjensidige's operations are still regarded as good.

Organic growth is expected to be in line with nominal GDP growth in Gjensidige's market areas in the Nordic and Baltic countries over time. In addition, profitable growth will be achieved by pursuing a disciplined acquisition strategy, as has been done successfully in the past.

In the next few years it is expected that Gjensidige's business model and the market participants will broadly stay the same. Gjensidige has different positions and preconditions for further growth and development in the segments. Best practices will be implemented across segments where natural and expedient. Profitability will be prioritised over growth.

A key strategic priority for the next few years is maintaining and cultivating the direct customer relationship. Gjensidige aims to achieve greater relevance and create sales opportunities by offering customers a broader value proposition than ever before – in terms of both services and products, alone or in partnership with other providers. The goal is to become an even better and more relevant partner for customers – a problem-solver with a stronger focus on claims prevention – and thereby further strengthening the customer relationship.

Continued investments in technology and data are key to reducing cost and achieving enhanced functionality and

flexibility. This is necessary to enable a more flexible partner integration and product modularity. The launch of next generation tariffs and CRM and investments in a new core system and IT infrastructure are important in order to succeed in becoming an analytics-driven company. This will result in better customer experiences, more efficient operations and create sufficient capacity for innovation. Gjensidige has started the process of developing and configuring its new core IT system. The investment is expected to be handled within the current cost ratio target, and will be made step-by-step, starting with Denmark.

Gjensidige has a robust investment strategy, although returns are affected by challenging market conditions. There are still some outstanding uncertainties relating to changes to the

regulatory framework conditions for the financial sector in Norway and internationally.

The Group has satisfactory capital buffers in relation to internal risk models, statutory solvency requirements and its target rating. The Board considers the Group's capital situation and financial strength to be strong.

There is always considerable uncertainty associated with the assessment of future developments. However, the Board remains confident in Gjensidige's ability to deliver solid earningsand dividend growth over time.

Oslo, 21 January 2020 The Board of Gjensidige Forsikring ASA

Consolidated income statement

NOK millions	Notes	Q4 2019	Q4 2018	1.1.-31.12.2019	1.1.-31.12.2018
Operating income
Earned premiums from general insurance	4	6,313.8	6,081.2	24,650.4	24,052.8
Earned premiums from pension		535.4	469.3	3,023.7	2,050.5
Other income including eliminations		45.6	42.4	171.6	158.2
Total operating income	3	6,894.8	6,592.9	27,845.7	26,261.6
Net income from investments
Results from investments in associates and joint ventures		114.7	101.9	309.2	291.8
Interest income and dividend etc. from financial assets		214.0	261.2	933.7	1,032.2
Net changes in fair value on investments (incl. property)		623.9	(625.2)	1,453.7	(502.8)
Net realised gain and loss on investments		(98.1)	66.6	1,282.9	129.8
Expenses related to investments		(28.0)	(29.1)	(119.1)	(120.8)
Total net income from investments		826.6	(224.6)	3,860.3	830.2
Total operating income and net income from investments		7,721.4	6,368.3	31,705.9	27,091.7
Claims
Claims incurred etc. from general insurance	5, 6	(4,437.6)	(3,268.9)	(16,978.6)	(16,791.1)
Claims incurred etc. from pension		(450.9)	(408.1)	(2,760.0)	(1,833.5)
Total claims		(4,888.5)	(3,676.9)	(19,738.6)	(18,624.6)

Operating expenses
Operating expenses from general insurance		(956.6)	(897.9)	(3,635.4)	(3,655.9)
Operating expenses from pension		(81.5)	(59.7)	(275.6)	(241.0)
Other operating expenses		(2.9)	(9.0)	(46.2)	(40.6)
Amortisation and impairment losses of excess value - intangible assets		(63.2)	(63.6)	(256.4)	(264.6)
Total operating expenses		(1,104.3)	(1,030.2)	(4,213.6)	(4,202.1)
Total expenses		(5,992.8)	(4,707.1)	(23,952.2)	(22,826.7)
Profit/(loss) before tax expense	3	1,728.6	1,661.2	7,753.8	4,265.0
Tax expense		(255.2)	(367.5)	(1,197.6)	(883.5)
Profit/(loss) from continuing operations		1,473.4	1,293.7	6,556.1	3,381.6
Profit/(loss) from discontinued operations			10.6	37.6	334.9
Profit/(loss) from continuing and discontinued operations		1,473.4	1,304.2	6,593.8	3,716.4
Profit/(loss) attributable to:
Owners of the company continuing operations		1,473.4	1,293.7	6,556.1	3,382.7
Owners of the company discontinued operations			10.6	37.6	334.9
Non-controlling interests				0.1	(1.2)
Total		1,473.4	1,304.2	6,593.8	3,716.4
Earnings per share from continuing and discontinued operations, NOK (basic and diluted)		2.95	2.61	13.19	7.44
Earnings per share from continuing operations, NOK (basic and diluted)		2.95	2.59	13.11	6.77

Consolidated statement of comprehensive income

NOK millions	Q4 2019	Q4 2018	1.1.-31.12.2019	1.1.-31.12.2018
Profit/(loss) from continuing and discontinued operations	1,473.4	1,304.2	6,593.8	3,716.4
Other comprehensive income
Other comprehensive income that will not be reclassified subsequently to profit or loss
Remeasurement of the net defined benefit liability/asset	(117.1)	(50.8)	(117.1)	(50.8)
Tax on other comprehensive income that will not be reclassified subsequently to profit or loss	29.3	12.7	29.3	12.7
Total other comprehensive income that will not be reclassified subsequently to profit or loss	(87.9)	(38.1)	(87.9)	(38.1)
Other comprehensive income that will be reclassified subsequently to profit or loss
Exchange differences from foreign operations	(3.0)	351.9	(67.3)	14.9
Tax on other comprehensive income that will be reclassified subsequently to profit or loss	1.6	(56.5)	17.1	(0.7)
Total other comprehensive income that will be reclassified subsequently to profit or loss	(1.3)	295.3	(50.2)	14.2
Total other comprehensive income from continuing operations	(89.2)	257.3	(138.1)	(23.9)
Total other comprehensive income from discontinued operations		0.1		0.1
Comprehensive income from continuing and discontinued operations	1,384.2	1,561.6	6,455.7	3,692.6
Comprehensive income attributable to:
Owners of the company continuing operations	1,384.2	1,551.0	6,418.0	3,358.8
Owners of the company discontinued operations		10.6	37.6	335.0
Non-controlling interests			0.1	(1.2)
Total	1,384.2	1,561.6	6,455.7	3,692.6

Consolidated statement of financial position

NOK millions	Notes	31.12.2019	31.12.2018
Assets
Goodwill		3,554.6	3,577.0
Other intangible assets		1,124.8	1,288.1
Investments in associates and joint ventures		3,318.6	2,959.7
Owner-occupied property, plant and equipment	11	1,264.9	251.9
Pension assets		244.3	156.6
Financial assets
Interest-bearing receivables from joint ventures	8	2,401.4	2,513.1
Financial derivatives	8	934.1	577.9
Shares and similar interests	8	6,551.6	5,134.9
Bonds and other securities with fixed income	8	30,992.4	26,374.8
Bonds held to maturity	8	210.7	391.5
Loans and receivables	8	19,963.3	20,477.9
Assets in life insurance with investment options	8	29,989.4	23,909.5
Receivables related to direct operations and reinsurance	8	7,097.6	6,784.7
Other assets and receivables	8	1,192.0	1,081.7
Cash and cash equivalents	8	2,419.5	2,363.3
Other assets
Deferred tax assets		21.2	13.1
Reinsurers' share of insurance-related liabilities in general insurance, gross		1,072.5	926.9
Prepaid expenses and earned, not received income		53.2	81.7
Assets held for sale			57,898.8

Total assets		112,405.9	156,762.9
Equity and liabilities
Equity
Share capital		1,000.0	999.9
Share premium		1,430.0	1,430.0
Natural perils capital		2,676.3	2,491.1
Guarantee scheme provision		676.3	653.9
Perpetual Tier 1 capital Gjensidige Bank (held for sale)			444.8
Other equity		20,409.0	17,824.9
Total equity attributable to owners of the company		26,191.6	23,844.7
Non-controlling interests		0.6	0.5
Total equity		26,192.2	23,845.2
Insurance liabilities
Premium reserve in life insurance		6,896.1	6,336.2
Provision for unearned premiums, gross, in general insurance		10,499.1	10,051.1
Claims provision, gross	7	28,164.8	29,355.8
Other technical provisions		410.4	353.2

Financial liabilities Subordinated debt	8	1,498.4	1,498.0
Financial derivatives	8	641.0	869.9
Liabilities in life insurance with investment options	8	29,989.4	23,909.5
Other financial liabilities	8	2,735.4	2,838.4
Liabilities related to direct insurance and reinsurance	8	709.4	1,174.5

Other liabilities
Pension liabilities		610.6	562.4
Lease liabilities	11	1,125.1
Other provisions		297.3	319.3
Current tax		1,046.1	638.8
Deferred tax liabilities		1,168.6	1,093.0
Accrued expenses and deferred income		422.0	403.3
Liabilities held for sale			53,514.4
Total liabilities		86,213.7	132,917.7
Total equity and liabilities		112,405.9	156,762.9

Consolidated statement of changes in equity

NOK millions	Share capital	Own shares	Share premium	Other paid-in capital	Perpetual Tier 1 capital	Exchange differ ences	Re measure ment of the net defined benefit liab./asset	Other earned equity	Total equity
Equity as at 31.12.2017 attributable to owners of the company	1,000.0	0,0	1,430.0	48.2	1,369.4	602.0	(1,936.7)	21,172.2	23,685.1
Non-controlling interests as at 31.12.2017									18.0
Equity as at 31.12.2017									23,703.1
Adjustment due to amendment to IFRS 2				8.5					8.5
Adjustment on initial application of IFRS 9 in the bank								(10.4)	(10.4)
Equity as at 1.1.2018									23,701.2
1.1.-31.12.2018
Comprehensive income
Profit/(loss) (the controlling interests' share)					47.5			3,670.1	3,717.6
Total other comprehensive income Comprehensive income				0.1 0.1	47.5	14.1 14.1	(38.0) (38.0)	3,670.1	(23.8) 3,693.8

Transactions with owners of the company
Own shares		0,0						(10.9)	(11.0)
Paid dividend								(3,549.9)	(3,549.9)
Equity-settled share-based payment transactions Perpetual Tier 1 capital				7.9	75.4			(0.6)	7.9 74.7
Perpetual Tier 1 capital - interest paid					(46.9)				(46.9)
Net effect of purchase of non-controlling interests								(7.2)	(7.2)
Total transactions with owners of the company		0,0		7.9	28.4			(3,568.6)	(3,532.3)
Equity as at 31.12.2018 attributable to owners of the company	1,000.0	(0.1)	1,430.0	64.7	1,445.3	616.0	(1,974.6)	21,263.3	23,844.7
Non-controlling interests as at 31.12.2018									0.5
Equity as at 31.12.2018									23,845.2
Adjustment on initial application of IFRS 16								(61.4)	(61.4)
Equity as at 1.1.2019									23,783.8
1.1.-31.12.2019
Comprehensive income
Profit/(loss) (the controlling interests' share)					53.9			6,539.8	6,593.7
Total other comprehensive income						(50.1)	(87.9)		(138.1)
Comprehensive income				0,0	53.9	(50.1)	(87.9)	6,539.8	6,455.6
Transactions with owners of the company
Own shares		0,0						(9.2)	(9.2)
Paid dividend								(3,549.9)	(3,549.9)
Remeasurement of the net defined benefit liability/asset of sold companies							4.4	(4.4)
Equity-settled share-based payment transactions				4.8				4.6	9.4
Perpetual Tier 1 capital					(445.5)			(0.6)	(446.2)
Perpetual Tier 1 capital - interest paid Total transactions with owners of the company		0,0		4.8	(51.4) (496.9)		4.4	(3,559.6)	(51.4) (4,047.3)

Equity as at 31.12.2019 attributable to owners of the company	1,000.0	0,0	1,430.0	69.5	1,002.3	565,9	(2,058.1)	24,182.1	26,191,6
Non-controlling interests as at 31.12.2019									0.6
Equity as at 31.12.2019									26,192.2

Consolidated statement of cash flows

NOK millions	1.1.-31.12.2019	1.1.-31.12.2018
Cash flow from operating activities
Premiums paid, net of reinsurance	30,769.5	31,022.5
Claims paid, net of reinsurance	(19,365.9)	(20,168.4)
Net payment of loans to customers	827.8	(5,498.6)
Net payment of deposits from customers	(589.9)	(647.0)
Payment of interest from customers	279.5	1,612.1
Payment of interest to customers	(15.0)	(297.2)
Net receipts/payments of premium reserve transfers	(2,413.7)	(1,266.8)
Net receipts/payments from financial assets	(5,822.9)	(984.1)
Operating expenses paid, including commissions	(4,089.7)	(4,586.8)
Taxes paid	(797.8)	(1,281.7)
Net other receipts/payments	(17.4)	204.3
Net cash flow from operating activities	(1,235.7)	(1,891.7)
Cash flow from investing activities
Net receipts/payments from sale/acquisition of subsidiaries and associates/joint venture	5,261.9	(34.7)
Net receipts/payments on sale/acquisition of owner-occupied property, plant and equipment and intangible assets	(438.5)	(403.6)
Net cash flow from investing activities	4,823.4	(438.3)

Cash flow from financing activities
Payment of dividend	(3,549.9)	(3,549.9)
Net receipts/payments on subordinated debt incl. interest	(47.5)	(41.8)
Net receipts of capital from non-controlling interests
Net receipts/payments on loans to credit institutions	(140.9)	6,455.4
Net receipts/payments on bonds and commercial papers issued
Net receipts/payments on other short-term liabilities	52.9	(26.7)
Net receipts/payments on interest on funding activities	(61.6)	(349.7)
Net receipts/payments on sale/acquisition of own shares	(9.2)	(11.0)
Repayment of lease liabilities	(161.6)
Payment of interest related to lease liabilities	(32.2)
Tier 1 issuance/installments		74.7
Tier 1 interest payments	(52.1)	(58.6)
Net cash flow from financing activities	(4,002.0)	2,492.5
Effect of exchange rate changes on cash and cash equivalents	(6.1)	(7.9)
Net cash flow	(420.4)	154.6
Cash and cash equivalents at the start of the period	2,839.9	2,685.2
Cash and cash equivalents at the end of the period	2,419.5	2,839.9
Net cash flow	(420.4)	154.6

Specification of cash and cash equivalents
Deposits with central banks		53.9
Cash and deposits with credit institutions ¹	2,419.5	2,786.0
Total cash and cash equivalents	2,419.5	2,839.9
¹ Including source-deductible tax account	91.7	85.9
hereof source-deductible tax account from discontinued operations	6.2	6.7
Specification of cash and cash equivalents from discontinued operations
Deposits with central banks		53.9
Cash and deposits with credit institutions		422.6
Total cash and cash equivalents from discontinued operations		476.6
Specification of cash and cash equivalents from continuing operations
Deposits with central banks
Cash and deposits with credit institutions	2,419.5	2,363.3
Total cash and cash equivalents from continuing operations	2,419.5	2,363.3

Cash flows from discontinued operations
Net cash flow from operating activities	(7.0)	(6,162.0)
Net cash flow from investing activities	(4.5)	(28.3)
Net cash flow from financing activities	(150.8)	6,236.8
Total cash flows from discontinued operations	(162.3)	46.5

Notes

1. Accounting policies

The consolidated financial statements as of the fourth quarter of 2019, concluded on 31 December 2019, comprise Gjensidige Forsikring ASA and its subsidiaries (collectively referred to as the Group) and the Group's holdings in associated companies. Except for the changes described below, the accounting policies applied in the interim report is the same as those used in the annual report for 2018.

The consolidated financial statements as of the fourth quarter of 2019 have been prepared in accordance with IFRS and IAS 34 Interim Financial Reporting. 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 2018.

New standards adopted

IFRS 16 Leases (2016)

Gjensidige implemented IFRS 16 at 1 January 2019 and there were significant implementation effects on the balance sheet, as well as an effect on equity. Please refer to note 11 for further details.

Amendments to IAS 12: Changes in classification of tax on equity items that are classified as liability for tax purposes In accordance with IAS 12 paragraph 57A, tax on equity items classified as liability for tax purposes are no longer classified as part of the equity transaction, but as part of the tax expense in the income statement.

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 2019. They have not been applied when preparing these consolidated financial statements. Those that may be relevant to Gjensidige are mentioned below. Gjensidige 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 regarding 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 2021. 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 2021, 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 of 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.

Gjensidige is a financial conglomerate which primarily operates insurance business and has therefore decided to make use of this exception. According to the Exposure Draft "Amendments to IFRS 17" published June 2019, the IFRS 9 will be effective 1 January 2022, at the same date as IFRS 17.

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 expected to be effective 1 January 2022. 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 based on Gjensidige's 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 Group's accounting policies and the most important sources of uncertainty in the estimates are the same regarding preparing the interim report as in the annual report for 2018.

Comparable figures are based on IFRS. 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.

Notes are presented on a Group level. Separate notes for Gjensidige Forsikring ASA (GF ASA) are not presented as GF ASA is the material part of the Group and therefore the notes for the Group give a sufficient presentation of both the Group and GF ASA.

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

2. Seasonal variations

For some insurance products, seasonal premiums are used. This is because the incidence of claims is not evenly distributed throughout the year but follows a stable seasonal pattern. Normally, premium income (earned premiums) is accrued evenly over the period of insurance, but for products with a seasonal pattern, premium income must also be allocated according to the incidence of claims. Gjensidige Forsikring has a seasonal premium for the following products: pleasure craft, snowmobiles and motorcycles. For example, for motorcycles, earned premiums for the period from April to September amount to a full 85 per cent of the annual premiums.

3. Segment information

Gjensidige Bank was discontinued from the third quarter 2018 and is no longer a separate segment in Gjensidige Group. The sale was completed on 1 March 2019.

The Group´s core operations comprise the segments general insurance Private, Commercial, Denmark, Sweden and Baltics. The Group also has operation in the Pension segment.

The segments are evaluated regularly by Gjensidige´s senior group management based on financial and operational

Another consequence of a seasonal premium is that if the customer cancels the insurance contract before the renewal date, only the portion of the seasonal premium is refunded for which the Company did not bear any risk. For motorcycle insurance taken out on 1 April, but cancelled on 1 October, the policyholder will only be refunded 15 per cent of the annual premium, even though the insurance was in effect only for six months.

information specially prepared for each segment for the purpose of following up performance and allocating necessary resources.

Segment income is defined as earned premiums for general insurance and earned premiums and other income for Pension.

The segment result is defined as the underwriting result for general insurance and the profit before tax expense for Pension.

	Segment income 2		Claims		Operating expenses		Net income from investments		Segment result/profit/(loss) before tax expense
Fourth quarter
NOK millions	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018
General Insurance Private	2,230.1	2,230.2	(1,375.3)	(1,148.7)	(304.3)	(270.5)			550.5	811.1
General Insurance Commercial	2,099.5	1,953.2	(1,476.9)	(701.9)	(194.4)	(215.6)			428.2	1,035.6
General Insurance Denmark	1,301.1	1,226.0	(1,001.2)	(913.2)	(200.9)	(188.3)			99.0	124.5
General Insurance Sweden	364.7	362.5	(263.2)	(252.5)	(83.3)	(64.5)			18.2	45.5
General Insurance Baltics	292.7	268.0	(189.9)	(171.8)	(83.4)	(78.9)			19.4	17.4
Pension	580.2	509.6	(450.9)	(408.1)	(81.5)	(59.7)	13.3	14.5	61.1	56.3
Eliminations etc. 1	26.5	43.4	(131.1)	(80.8)	(156.5)	(152.8)	813.3	(239.1)	552.2	(429.2)
Total	6,894.8	6,592.9	(4,888.5)	(3,676.9)	(1,104.3)	(1,030.2)	826.6	(224.6)	1,728.6	1,661.2

		Segment income 2		Claims	Operating expenses		Net income from investments		Segment result/profit/(loss) before tax expense
1.1.-31.12.
NOK millions	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018
General Insurance Private	8,872.4	8,762.5	(5,682.6)	(5,720.7)	(1,164.7)	(1,106.9)			2,025.1	1,934.8
General Insurance Commercial	8,164.1	7,603.3	(5,608.6)	(5,182.8)	(825.7)	(872.3)			1,729.8	1,548.2
General Insurance Denmark	4,960.1	4,904.6	(3,642.0)	(3,766.2)	(718.8)	(704.0)			599.3	434.5
General Insurance Sweden	1,405.8	1,569.2	(1,058.6)	(1,231.7)	(271.3)	(259.3)			75.9	78.2
General Insurance Baltics	1,126.9	1,078.8	(728.7)	(675.9)	(337.3)	(334.4)			60.9	68.5
Pension	3,190.9	2,201.0	(2,760.0)	(1,833.5)	(275.6)	(241.0)	41.5	40.2	196.9	166.6
Eliminations etc. 1	125.5	142.1	(258.1)	(213.7)	(620.3)	(684.2)	3,818.7	790.0	3,065.9	34.2
Total	27,845.7	26,261.6		(19,738.6) (18,624.6)	(4,213.6)	(4,202.1)	3,860.3	830.2	7,753.8	4,265.0

¹ Eliminations etc. consist of internal eliminations and other income and expenses not directly attributable to one single segment, and large losses of NOK 163.4 million (202.9) for

the year as a whole and NOK 84.9 million (39.5) in the quarter. Interest on subordinated debt is included in Net income from investments. ² There is no significant income between the segments at this level in 2019 and 2018.

4. Earned premiums from general insurance

NOK millions	Q4 2019	Q4 2018	1.1.-31.12.2019	1.1.-31.12.2018
Earned premiums, gross	6,485.9	6,275.6	25,371.9	24,779.3
Ceded reinsurance premiums	(172.0)	(194.4)	(721.5)	(726.5)
Total earned premiums, net of reinsurance	6,313.8	6,081.2	24,650.4	24,052.8

5. Claims incurred etc. from general insurance

NOK millions	Q4 2019	Q4 2018	1.1.-31.12.2019	1.1.-31.12.2018
Gross claims	(4,580.1)	(3,433.1)	(17,396.0)	(17,111.6)
Claims, reinsurers' share	142.5	164.3	417.4	320.5
Total claims incurred etc. from general insurance	(4,437.6)	(3,268.9)	(16,978.6)	(16,791.1)

6. Run-off gains/(losses) from general insurance

NOK millions	Q4 2019	Q4 2018	1.1.-31.12.2019	1.1.-31.12.2018
Earned premiums from general insurance	6,313.8	6,081.2	24,650.4	24,052.8
Run-off gains/(losses) for the period, net of reinsurance 1	338.0	1,384.1	1,363.2	2,356.9
In per cent of earned premiums from general insurance	5.4	22.8	5.5	9.8

¹ Run-off gains/(losses) from general insurance includes run-off from the general insurance segments in addition to run-off on Corporate Centre/reinsurance.

7. Claims provision, gross from general insurance

NOK millions	31.12.2019	31.12.2018
Claims provision, gross, as at 1 January	29,355.8	31,322.7
Claims for the year	18,669.8	19,484.7
Claims incurred in prior years, gross	(1,271.3)	(2,361.1)
Claims paid	(18,710.8)	(19,083.6)
Discounting of claims provisions	33.2	68.9
Change in discounting rate	198.1	(55.4)
Exchange differences	(110.0)	(20.4)
Claims provision, gross, at the end of the period	28,164.8	29,355.8
Discounted claims provision, gross - annuities	5,904.9	5,941.8
Nominal claims provision, gross - annuities	6,203.7	6,573.4

The claims provisions shall cover future claims payments. The claims provisions for insurances with annuity payments are converted to present value (discounted), whereas other provisions are undiscounted.

The reason why the claims provisions for annuities are discounted is due to very long cash flows and substantial future interest income. The claims for occupational injuries in Denmark are paid either as annuities or as lump-sum indemnities (which are calculated mainly as discounted annuities). Therefore, it is

most expedient to regard the whole portfolio as annuities. For Swedish MTPL personal injuries are paid as lifelong annuities. The discount rate used is a swap interest rate.

Over the next three years, average annual run-off gains are expected to be around NOK 1,000 million, moving the expected reported combined ratio to the lower end of the 86-89 corridor (undiscounted).

8. 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 based on the lowest level 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 based on valuation techniques which are 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 derivatives, equity options and forward rate agreements, 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.
Listed subordinated debt 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 following financial assets are classified as level three in the valuation hierarchy

Unlisted private equity investments. The private equity investments that are not organised as funds are valued using cash flow analysis, price multiples and recent market transactions. The private equity investments that are organised as funds are valued based on NAV (Net Asset Value) as reported by the fund administrators in accordance with IPEV guidelines (International Private Equity and Venture Capital Valuation. Because of late reporting from the funds, the NAV from the previous quarterly reporting is used in estimating fair value. The NAV is then assessed for discretionary adjustments based on objective events since the last reporting date. Objective events may be the development in underlying values of listed companies since the last reporting, changes in regulations or substantial market movements.
Loan funds with secured loans and real estate funds. The funds are valued based on reported NAV values as reported by the fund administrators. Because of late reporting from the funds, the NAV values from the previous quarterly reporting are used in estimating fair value.

The valuation process for financial assets classified as level three

In consultation with the Investment Performance and Risk Measurement department, the Chief Investment Officer decides which valuation models will be used when valuing financial assets classified as level three in the valuation hierarchy. The models are evaluated as required. The fair value and results of the investments and compliance with the stipulated limits are reported weekly to the Chief Financial Officer and Chief Executive Officer, and monthly to the Board.

Sensitivity financial assets level three

Shares and similar interests (mainly unlisted private equity investments and loan funds and real estate funds), as well as bonds and other fixed-income securities are included in level three in the valuation hierarchy. General market downturns or a worsening of the outlook can affect expectations of future cash flows or the applied multiples, which in turn will lead to a reduction in value of shares and similar interests. Bonds and other fixed-income securities primarily have interest rate and credit risk as a result of changes in the yield curve or losses due to unexpected default on Gjensidige's debtors. However, the sensitivity to changes in the yield curve is reduced through hedging using interest rate swaps classified as level 2.

	Carrying		Carrying
NOK millions	amount as at 31.12.2019	Fair value as at 31.12.2019	amount as at 31.12.2018	Fair value as at 31.12.2018

Financial assets
Financial derivatives
Financial derivatives at fair value through profit or loss	934.1	934.1	577.9	577.9
Financial assets at fair value through profit or loss, designated upon initial recognition
Shares and similar interests	6,551.6	6,551.6	5,134.9	5,134.9
Bonds and other fixed income securities	30,992.4	30,992.4	26,374.8	26,374.8
Shares and similar interests in life insurance with investment options	25,792.8	25,792.8	20,627.2	20,627.2
Bonds and other fixed income securities in life insurance with investment options	4,196.5	4,196.5	3,282.3	3,282.3
Loans	2.2	2.2
Financial assets held to maturity
Bonds held to maturity	210.7	212.1	391.5	392.5
Loans and receivables
Bonds and other fixed income securities classified as loans and receivables	19,951.8	20,598.9	20,303.7	21,176.9
Loans	2,410.8	2,410.8	2,687.3	2,687.3
Receivables related to direct operations and reinsurance	7,097.6	7,097.6	6,784.7	6,784.7
Other assets and receivables	1,192.0	1,192.0	1,081.7	1,081.7
Cash and cash equivalents	2,419.5	2,419.5	2,363.3	2,363.3
Total financial assets	101,751.9	102,400.5	89,609.2	90,483.4

Financial liabilities
Financial derivatives
Financial derivatives at fair value through profit or loss	641.0	641.0	869.9	869.9
Financial liabilities at fair value through profit or loss, designated upon initial recognition
Debt in life insurance with investment options	29,989.4	29,989.4	23,909.5	23,909.5
Financial liabilities at amortised cost
Subordinated debt	1,498.4	1,505.9	1,498.0	1,487.5
Other liabilities	2,735.4	2,735.4	2,838.4	2,838.4
Liabilities related to direct insurance	709.4	709.4	1,174.5	1,174.5
Total financial liabilities	35,573.6	35,581.1	30,290.3	30,279.8
Gain/(loss) not recognised in profit or loss		641.1		884.7

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	Level 3
		Valuation	Valuation
	Quoted prices	techniques based on	techniques based on non
	in active	observable	observable
NOK millions	markets	market data	market data	Total
Financial assets
Financial derivatives
Financial derivatives at fair value through profit or loss		934.1		934.1
Financial assets at fair value through profit or loss, designated upon initial recognition
Shares and similar interests	69.2	5,176.0	1,306.3	6,551.6
Bonds and other fixed income securities	10,783.6	19,500.1	708.6	30,992.4
Shares and similar interests in life insurance with investment options		25,792.8		25,792.8
Bonds and other fixed income securities in life insurance with investment options		4,196.5		4,196.5
Loans			2.2	2.2
Financial assets at amortised cost
Bonds held to maturity	212.1			212.1
Bonds and other fixed income securities classified as loans and receivables		20,598.9		20,598.9
Loans			2,410.8	2,410.8

Financial liabilities
Financial derivatives
Financial derivatives at fair value through profit or loss		641.0		641.0
Financial liabilities at fair value through profit or loss, designated upon initial recognition
Debt in life insurance with investment options		29,989.4		29,989.4
Financial liabilities at amortised cost

Subordinated debt		1,505.9		1,505.9

Valuation hierarchy 2018

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
	Quoted prices	techniques based on	techniques based on non
	in active	observable	observable
NOK millions	markets	market data	market data	Total
Financial assets
Financial derivatives
Financial derivatives at fair value through profit or loss		577.9		577.9
Financial assets at fair value through profit or loss, designated upon initial recognition
Shares and similar interests	122.0	3,653.8	1,359.1	5,134.9
Bonds and other fixed income securities	13,193.2	12,402.9	778.7	26,374.8
Shares and similar interests in life insurance with investment options	20,610.0	17.3		20,627.2
Bonds and other fixed income securities in life insurance with investment options	3,268.1	14.1		3,282.3
Financial assets at amortised cost
Bonds held to maturity	255.7	136.8		392.5
Bonds and other fixed income securities classified as loans and receivables		21,173.0	3.8	21,176.9
Loans			2,687.3	2,687.3
Financial liabilities
Financial derivatives
Financial derivatives at fair value through profit or loss		869.9		869.9

Financial liabilities at fair value through profit or loss, designated upon initial recognition
Debt in life insurance with investment options	23,878.1	31.4		23,909.5
Financial liabilities at amortised cost
Subordinated debt		1,487.5		1,487.5

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

		Net realised/ unrealised							Amount of net realised/ unrealised gains recognised in profit or loss that are
NOK millions	As at 1.1.2019	gains recognised in profit or loss	Pur chases	Sales	Settle ments	Trans fers into/out of level 3	Cur rency effect	As at 31.12.2019	attributable to instruments held as at 31.12.2019
Shares and similar interests	1,359.1	(41.9)	178.5	(189.4)				1,306.3	(42.8)
Bonds and other fixed income securities	778.7	89.2		(155.4)			(3.9)	708.6
Loans at fair value				(1.7)		3.8		2.2
Total	2,137.8	47.3	178.5	(346.5)		3.8	(3.9)	2,017.1	(42.8)

Reconciliation of financial assets valued based on non-observable market data (level 3) 2018

NOK millions	As at 1.1.2018	Net realised/ unrealised gains recognised in profit or loss	Pur chases	Sales	Trans fers into/out of level 3	Cur rency effect	As at 30.12.2018	Amount of net realised/ unrealised gains recognised in profit or loss that are attributable to instruments held as at 31.12.2018
Shares and similar interests	2,211.8	96.6	126.4	(164.1)	(911.7)		1,359.1	70.1
Bonds and other fixed income securities	904.3	60.7		(187.6)		1.3	778.7
Total	3,116.2	157.4	126.4	(351.7)	(911.7)	1.3	2,137.8	70.1

9. Contingent liabilities

NOK millions	31.12.2019	31.12.2018
Guarantees and committed capital
Gross guarantees	0.1	0.1
Committed capital, not paid	590.5	702.2

As part of its ongoing financial management Gjensidige has committed, but not paid up to NOK 590.5 million (702.2) in loan funds containing secured debt and various private equity and real estate funds, over and above the amounts recognised in the balance sheet.

Gjensidige Forsikring is liable externally for any insurance claim arising in the cooperating mutual fire insurers' fire insurance operations.

According to the agreement with Gjensidige Pensjonskasse, the return, if not sufficient to cover the pension plans guaranteed interest rate, should be covered from the premium fund or through contribution from Gjensidige Forsikring.

10. Related parties

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

11. Leasing

IFRS 16 requires all contracts that qualify under its definition as a lease to be reported on a lessee`s statement of financial position as right of use assets and lease liabilities. Earlier classification of leases as either operating leases or finance leases are removed. Short-term leases (less than 12 months) and leases of low-value assets are exempt from the requirements. A lessee shall recognise a right-of-use asset and a lease liability. The interest effect of discounting the lease liability shall be presented separately from the depreciation charge for the right-of-use asset. The depreciation expense will be presented with the group's other depreciations, whereas the interest effect of discounting will be presented as a financial item.

To determine whether a contract contains a lease, it is considered whether the contract conveys the right to control the use of an identified asset. This is for Gjensidige considered to be the case for rental contracts, leases for cars and some office machines etc. However, the main part of the latter group is exempted for recognition due to low value. IT agreements are not considered to fall under IFRS 16 since these are based on the purchase of capacity that is not physically separated and thus not identifiable.

The rental period is calculated based on the duration of the agreement plus any option periods if these with reasonable certainty will be exercised. Joint expenses etc. are not recognised in the lease liability for the rental contracts.

The discount rate for the rental contracts is determined by looking at observable borrowing rates in the bond market for each of the countries in which Gjensidige operates. The interest rates are adapted to the actual lease contracts duration etc. The discount rate for the leasing cars is determined based on an assessment of which loan interest Gjensidige would achieve for financing cars from a financing company.

Gjensidige has recognised its lease liabilities at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate at the date of initial application, as well as the recognition of related right-of-use assets to an amount corresponding to the lease liability according to the modified retrospective approach. However, for the largest rental agreements in Norway, Sweden and Denmark, Gjensidige has chosen to recognise the right-of-use asset at the carrying amount as if the standard had been applied since the commencement date, but discounted using the lessee's incremental borrowing rate at the date of initial application. Comparative figures were not adjusted. The difference between this and the lease liability, less deferred tax, amounted to NOK 61.4 million and was recognised directly in equity on 1 January 2019.

NOK millions	31.12.2019	1.1.2019
Leases in the statement of financial position
Assets
Right-of-use assets - property	1,031.4	1,210.2
Right-of-use assets - plant and equipment	10.5	13.6
Total	1,041.9	1,223.8
Liabilities
Lease liabilities	1,125.1	1,304.4
Leases in the income statement
Depreciation right-of-use assets	(165.7)
Interest expense on lease liabilities	(32.2)

Alternative performance measures and key figures

		Q4 2019		Q4 2018 1.1.-31.12.2019 1.1.-31.12.2018
Gjensidige Forsikring Group
Equity	NOK millions			26,192.2	23,845.2
Equity per share	NOK			52.4	47.7
Earnings per share in the period, basic and diluted 1	NOK	2.95	2.61	13.19	7.44
Return on equity, annualised 2	%			28.2	17.3
Return on tangible equity, annualised 2	%			35.6	22.4
Return on financial assets 2	%	1.4	(0.4)	4.1	1.5
Total eligible own funds to meet the group SCR 3	NOK millions			21,855.1	23,665.1
Group SCR margin 4	%			205.7	168.5
Total eligible own funds to meet the minimum consolidated group SCR 5	NOK millions			18,670.7	15,772.6
Minimum consolidated group SCR margin 6	%			373.6	321.9

Gjensidige Forsikring ASA
Total eligible own funds to meet the SCR 7	NOK millions			21,261.9	21,899.5
SCR margin 8	%			219.2	234.6
Total eligible own funds to meet the MCR 9	NOK millions			18,220.9	19,051.8
MCR margin 10	%			434.7	465.0
Issued shares, at the end of the period	Number			500,000,000	500,000,000
General Insurance
Gross premiums written 2
Private	NOK millions	2,036.9	1,974.4	9,136.3	8,942.2
Commercial	NOK millions	1,893.6	1,760.2	8,692.8	8,017.9
Denmark	NOK millions	1,174.8	1,109.1	5,291.6	5,196.8
Sweden	NOK millions	404.4	331.5	1,440.7	1,495.1
Baltics	NOK millions	279.5	268.9	1,179.3	1,110.1
Corporate Centre/reinsurance	NOK millions	0.1	0,0	113.6	105.7
Total General Insurance	NOK millions	5,789.3	5,444.1	25,854.2	24,867.8
Premiums, net of reinsurance 2	%			97.2	97.1
Earned premiums
Private	NOK millions	2,230.1	2,230.2	8,872.4	8,762.5
Commercial	NOK millions	2,099.5	1,953.2	8,164.1	7,603.3
Denmark	NOK millions	1,301.1	1,226.0	4,960.1	4,904.6
Sweden	NOK millions	364.7	362.5	1,405.8	1,569.2
Baltics	NOK millions	292.7	268.0	1,126.9	1,078.8
Corporate Centre/reinsurance	NOK millions	25.8	41.3	121.2	134.4
Total General Insurance	NOK millions	6,313.8	6,081.2	24,650.4	24,052.8
Loss ratio 2
Private	%	61.7	51.5	64.0	65.3

Commercial Denmark	% %	70.3 77.0	35.9 74.5	68.7 73.4	68.2 76.8
Sweden	%	72.2	69.7	75.3	78.5
Baltics	%	64.9	64.1	64.7	62.7
Total General Insurance	%	70.3	53.8	68.9	69.8
Underlying frequency loss ratio 2
Private	%	66.5	67.2	68.9	72.6

Commercial	%	74.9	75.7	71.9	78.0
Denmark	%	73.8	78.4	75.4	79.1
Sweden	%	76.2	80.6	77.5	80.7
Baltics Total General Insurance	% %	68.3 72.3	64.9 73.2	67.8 71.8	64.9 75.6
Cost ratio 2
Private	%	13.6	12.1	13.1	12.6
Commercial	%	9.3	11.0	10.1	11.5

Denmark	%	15.4	15.4	14.5	14.4
Sweden	%	22.8	17.8	19.3	16.5
Baltics	%	28.5	29.4	29.9	31.0
Total General Insurance	%	15.2	14.8	14.7	15.2

		Q4 2019		Q4 2018 1.1.-31.12.2019 1.1.-31.12.2018
Combined ratio 2
Private	%	75.3	63.6	77.2	77.9
Commercial	%	79.6	47.0	78.8	79.6
Denmark	%	92.4	89.8	87.9	91.1
Sweden	%	95.0	87.5	94.6	95.0
Baltics	%	93.4	93.5	94.6	93.7
Total General Insurance	%	85.4	68.5	83.6	85.0
Combined ratio discounted 2	%	85.6	67.9	83.0	84.0
Pension
Assets under management pension, at the end of the period	NOK millions			37,335.1	30,688.2
of which the group policy portfolio	NOK millions			7,204.2	6,586.4
Operating margin 2	%	36.97	41.23	36.05	34.41
Recognised return on the paid-up policy portfolio 11	%			4.34	5.61
Value-adjusted return on the paid-up policy portfolio 12	%			4.72	4.30
Share of shared commercial customers 13	%			67.5	70.0
Return on equity, annualised 2	%			17.9	16.0

1 Earnings per share from continuing and discontinued operations, basic and diluted = the shareholders' share of the profit or loss from continuing and discontinued operations in the period/average number of outstanding shares in the period

2 Defined as alternative performance measure (APM). APMs are described on www.gjensidige.no/reporting in document named APMs Gjensidige Forsikring Group Q4 2019. 3 Total eligible own funds to meet the group SCR = Total eligible own funds to meet the group solvency capital requirement, where the group solvency capital requirement is based on

approved partial internal model. Total comprehensive income for the year-to-date is included in the solvency calculations, minus the proposed dividend. 4

Group SCR margin = Ratio of total eligible own funds to group solvency capital requirement, where the group solvency capital requirement is based on approved partial internal model. ⁵Total eligible own funds to meet the minimum consolidated group SCR = Total eligible own funds to meet the minimum consolidated group solvency capital requirement, where the minimum consolidated group solvency capital requirement is based on approved partial internal model. Total comprehensive income for the year-to-date is included in the solvency calculations, minus the proposed dividend.

6 Minimum consolidated group SCR margin = Ratio of eligible own funds to minimum consolidated group solvency capital requirement, where the minimum consolidated group solvency capital requirement is based on approved partial internal model.

7 Total eligible own funds to meet the SCR = Total eligible own funds to meet the solvency capital requirement for Gjensidige Forsikring ASA, where the solvency capital requirement is based on approved partial internal model. Total comprehensive income for the year-to-date is included in the solvency calculations, minus the proposed dividend.

⁸ SCR margin = Ratio of total eligible own funds to solvency capital requirement for Gjensidige Forsikring ASA, where the solvency capital requirement is based on approved partial internal model.

⁹Total eligible own funds to meet the MCR = Total eligible own funds to meet the minimum capital requirement for Gjensidige Forsikring ASA, where the minimum capital requirement is based on approved partial internal model. Total comprehensive income for the year-to-date is included in the solvency calculations, minus the proposed dividend.

¹⁰MCR margin = Ratio of eligible own funds to minimum capital requirement for Gjensidige Forsikring ASA, where the minimum capital requirement is based on approved partial internal model.

¹¹ Recognised return on the paid-up policy portfolio = realised return on the portfolio

¹² Value-adjusted return on the paid-up policy portfolio = total return on the portfolio

¹³ Share of shared commercial customers = customers having both pension and general insurance products with Gjensidige

Quarterly earnings performance

	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4
NOK millions	2019	2019	2019	2019	2018	2018	2018	2018	2017
Earned premiums from general insurance	6,313.8	6,317.0	6,082.8	5,936.7	6,081.2	6,118.1	5,987.2	5,866.3	5,969.5
Other income	581.0	823.5	1,076.0	714.7	511.7	499.2	595.0	602.8	522.9
Total operating income	6,894.8	7,140.6	7,158.9	6,651.5	6,592.9	6,617.4	6,582.1	6,469.1	6,492.3
Total net income from investments	826.6	264.3	500.5	2,268.9	(224.6)	429.7	370.4	254.7	487.1
Total operating income and net income from investments	7,721.4	7,404.9	7,659.3	8,920.4	6,368.3	7,047.1	6,952.5	6,723.8	6,979.5
Claims incurred etc. from general insurance	(4,437.6)	(4,367.7)	(3,916.4)	(4,256.8)	(3,268.9)	(4,591.7)	(4,371.0)	(4,559.5)	(4,468.4)
Claims incurred etc. from pension	(450.9)	(718.5)	(974.9)	(615.6)	(408.1)	(406.1)	(503.0)	(516.4)	(444.9)
Total claims etc.	(4,888.5)	(5,086.3)	(4,891.4)	(4,872.4)	(3,676.9)	(4,997.8)	(4,874.0)	(5,075.9)	(4,913.3)
Operating expenses from general insurance	(956.6)	(888.2)	(908.7)	(881.8)	(897.9)	(953.0)	(909.3)	(895.7)	(945.7)
Other operating expenses	(147.6)	(158.8)	(136.3)	(135.5)	(132.3)	(132.3)	(134.3)	(147.3)	(124.9)
Total operating expenses	(1,104.3)	(1,047.0)	(1,045.0)	(1,017.3)	(1,030.2)	(1,085.3)	(1,043.6)	(1,043.0)	(1,070.7)
Total expenses	(5,992.8)	(6,133.3)	(5,936.4)	(5,889.7)	(4,707.1)	(6,083.1)	(5,917.6)	(6,118.8)	(5,984.0)
Profit/(loss) for the period before tax expense	1,728.6	1,271.5	1,722.9	3,030.7	1,661.2	964.0	1,034.9	605.0	995.5
Underwriting result general insurance	919.6	1,061.1	1,257.6	798.1	1,914.4	573.4	706.8	411.2	555.4


	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
NOK millions	2017	2017	2017	2016	2016	2016	2016	2015	2015
Earned premiums from general insurance	6,056.4	5,824.7	5,547.7	5,685.6	5,705.5	5,536.8	5,514.0	5,493.5	5,471.2
Other income	553.6	352.2	539.1	476.5	440.2	315.1	338.1	498.6	357.4
Total operating income	6,610.0	6,177.0	6,086.8	6,162.1	6,145.6	5,851.9	5,852.2	5,992.1	5,828.6
Total net income from investments	475.5	471.0	568.6	541.5	709.2	573.9	328.0	618.7	(156.5)
Total operating income and net income from investments	7,085.5	6,648.0	6,655.4	6,703.6	6,854.8	6,425.8	6,180.2	6,610.8	5,672.1
Claims incurred etc. from general insurance	(4,013.7)	(3,961.7)	(3,957.9)	(4,013.8)	(4,004.3)	(3,599.6)	(3,898.1)	(3,734.7)	(3,588.0)
Claims incurred etc. from pension	(478.1)	(282.6)	(456.2)	(387.1)	(371.2)	(250.2)	(275.1)	(432.8)	(286.4)
Total claims etc.	(4,491.9)	(4,244.2)	(4,414.1)	(4,400.9)	(4,375.5)	(3,849.8)	(4,173.2)	(4,167.5)	(3,874.3)
Operating expenses from general insurance	(892.5)	(890.7)	(857.6)	(971.3)	(989.4)	(865.6)	(365.2)	(879.5)	(792.3)
Other operating expenses	(123.1)	(132.1)	(121.5)	(120.0)	(115.7)	(119.7)	(114.7)	(176.0)	(111.1)
Total operating expenses	(1,015.6)	(1,022.8)	(979.0)	(1,091.3)	(1,105.1)	(985.2)	(479.9)	(1,055.5)	(903.4)
Total expenses	(5,507.5)	(5,267.0)	(5,393.1)	(5,492.2)	(5,480.6)	(4,835.1)	(4,653.1)	(5,223.0)	(4,777.7)
Profit/(loss) for the period before tax expense	1,578.1	1,381.0	1,262.2	1,211.4	1,374.2	1,590.8	1,527.1	1,387.7	894.4

Income statement

Gjensidige Forsikring ASA

Premiums etc. Earned premiums, gross 6,191.8 5,855.3 24,236.4 23,105.9 Ceded reinsurance premiums (170.6) (194.8) (712.9) (715.9) Total earned premiums, net of reinsurance 6,021.2 5,660.5 23,523.5 22,389.9 Claims Gross claims (4,388.9) (3,141.9) (16,662.5) (15,973.9) Claims, reinsurers' share 141.2 163.0 412.6 324.5 Total claims incurred, net of reinsurance (4,247.7) (2,978.9) (16,249.9) (15,649.4) Insurance-related operating expenses Insurance-related administration expenses incl. commissions for received (927.8) (856.1) (3,544.5) (3,558.6) reinsurance and sales expenses Received commission for ceded reinsurance and profit share 6.0 14.3 45.2 51.0 Total insurance-related operating expenses (921.8) (841.8) (3,499.3) (3,507.6) Other insurance-related operating expenses (12.7) Technical profit/(loss) 851.7 1,839.8 3,761.7 3,233.0 Net income from investments Income from investments in subsidiaries, associates and joint ventures (1.3) 279.1 3,093.3 374.0 Impairment losses of investments in subsidiaries, associates and joint ventures (81.5) (153.2) (76.0) Interest income and dividend etc. from financial assets 252.5 289.4 1,000.8 1,043.1 Changes in fair value on investments 642.5 (619.5) 1,451.6 (494.7) Realised gain and loss on investments (110.8) 68.4 (312.8) 143.2 Administration expenses related to investments, including interest expenses (76.9) (69.0) (201.6) (166.2) Total net income from investments 624.5 (51.5) 4,878.1 823.4 Other income 3.9 2.5 12.7 10.3 Other expenses (10.7) (9.5) (38.5) (37.1) Profit/(loss) of non-technical account 617.7 (58.5) 4,852.3 796.6 Profit/(loss) before tax expense 1,469.4 1,781.3 8,613.9 4,029.5 Tax expense (238.9) (519.6) (1,153.6) (995.0) Profit/(loss) before other comprehensive income 1,230.4 1,261.7 7,460.3 3,034.5 Other comprehensive income Other comprehensive income that will not be reclassified to profit or loss Changes in estimates related to defined benefit plans (116.4) (49.4) (116.4) (49.4) Tax on other comprehensive income that will not be reclassified to profit or loss 29.1 12.3 29.1 12.3 Total other comprehensive income that will not be reclassified to profit or (87.3) (37.0) (87.3) (37.0) loss Other comprehensive income that may be reclassified to profit or loss Exchange differences from foreign operations (2.5) 232.1 (65.1) 3.2 Tax on other comprehensive income that may be reclassified 1.6 (56.5) 17.1 (0.7) Total other comprehensive income that may be reclassified (0.9) 175.6 (48.0) 2.5 Comprehensive income 1,142.3 1,400.3 7,325.1 3,000.0	NOK millions	Q4 2019	Q4 2018	1.1.-31.12.2019	1.1.-31.12.2018

Statement of financial position

Gjensidige Forsikring ASA

NOK millions	31.12.2019	31.12.2018
Assets
Goodwill	2,950.1	1,846.6
Other intangible assets	1,026.0	1,013.0
Total intangible assets	3,976.2	2,859.5

Investments
Buildings and other real estate
Owner-occupied property	28.5	28.5
Right-of-use property	966.7
Subsidiaries and associates
Shares in subsidiaries	2,063.8	3,832.7
Shares in subsidiaries, held for sale		2,461.5
Shares in associates and joint ventures	1,086.9	1,086.9
Interest-bearing receivables on subsidiaries and joint ventures	2,401.4	2,513.1
Financial assets measured at amortised cost
Interest-bearing securities		105.8
Loans and receivables	14,714.8	15,471.3
Financial assets measured at fair value
Shares and similar interests (incl. shares and similar interests measured at cost)	6,545.3	5,061.4
Interest-bearing securities	28,446.3	22,152.3
Subordinated loans	2,2	44.3
Financial derivatives	934.1	577.9
Other financial assets	111.0	111.0
Reinsurance deposits		1,094.7
Total investments	57,301.0	54,541.4
Reinsurers' share of insurance-related liabilities, gross
Reinsurers' share of provision for unearned premiums, gross	42.3	39.6
Reinsurers' share of claims provision, gross	554.5	473.6
Total reinsurers' share of insurance-related liabilities, gross	596.8	513.2

Receivables
Receivables related to direct operations	6,843.3	6,323.5
Receivables related to reinsurance	23.7	75.5
Receivables within the group	7.1	339.6
Other receivables	864.4	820.2
Total receivables	7,738.4	7,558.9
Other assets
Plant and equipment	189.8	203.7
Cash and cash equivalents	1,796.1	1,656.4
Pension assets	241.8	155.2
Total other assets	2,227.6	2,015.2
Prepaid expenses and earned, not received income
Other prepaid expenses and earned, not received income	37.7	46.2
Total prepaid expenses and earned, not received income	37.7	46.2
Total assets	71,877.7	67,534.4

NOK millions	31.12.2019	31.12.2018
Equity and liabilities
Paid in equity
Share capital	1,000.0	1,000.0
Own shares	0,0	(0.1)
Share premium	1,430.0	1,430.0
Perpetual Tier 1 Capital	1,002.3	1,000.5
Other paid-in equity	67.4	58.2
Total paid-in equity	3,499.6	3,488.6
Retained equity
Funds etc.
Natural perils capital	2,676.3	2,491.1
Guarantee scheme provision	676.3	653.9
Other retained earnings	11,459.6	10,655.3
Total retained earnings	14,812.2	13,800.3
Total equity	18,311.9	17,288.9
Subordinated debt	1,198.6	1,198.3
Insurance-related liabilities in general insurance, gross
Provision for unearned premiums, gross	10,003.0	9,399.6
Claims provision, gross	27,693.3	28,769.8
Provision for premium discounts and other profit agreements	77.3	75.4
Total insurance-related liabilities in general insurance, gross	37,773.6	38,244.9
Provision for liabilities
Pension liabilities	608.1	559.9
Current tax	984.6	591.3
Deferred tax liabilities	1,391.4	1,289.0
Other provisions	294.5	316.5
Total provision for liabilities	3,278.5	2,756.7
Liabilities
Liabilities related to direct insurance	380.9	381.5
Liabilities related to reinsurance	46.1	40.9
Financial derivatives	641.0	869.9
Accrued dividend	6,125.0	3,550.0
Other liabilities	3,711.2	2,766.0
Liabilities to subsidiaries and associates	56.7	104.9
Total liabilities	10,960.9	7,713.3
Accrued expenses and deferred income
Other accrued expenses and deferred income	354.2	332.3
Total accrued expenses and deferred income	354.2	332.3
Total equity and liabilities	71,877.7	67,534.4

Statement of changes in equity

Gjensidige Forsikring ASA

NOK millions	Share capital	Own shares	Share premium	Other paid-in capital	Perpetual Tier 1 capital	Exchange differ ences	Changes in estimates related to defined benefit plans	Other earned equity	Total equity
Equity as at 31.12.2017	1,000.0	0,0	1,430.0	45.1	999.8	383.8	(1,932.8)	15,945.9	17,871.7
Adjustment due to amendment to IFRS 2				5.5					5.5
Equity as at 1.1.2018	1,000.0	0,0	1,430.0	50.6	999.8	383.8	(1,932.8)	15,945.9	17,877.2
1.1.-31.12.2018
Comprehensive income
Profit/(loss)					35.0			2,999.5	3,034.5
Total other comprehensive income				0.1		2.4	(37.0)		(34.5)
Comprehensive income				0.1	35.0	2.4	(37.0)	2,999.5	3,000.0
Transactions with owners of the company
Own shares		0,0						(10.9)	(11.0)
Accrued and paid dividend								(3,549.9)	(3,549.9)
Equity-settled share-based payment transactions				7.6					7.6
Perpetual Tier 1 capital					0.6			(0.6)
Perpetual Tier 1 capital - interest paid					(34.9)				(34.9)
Total transactions with owners of the company		0,0		7.6	(34.3)			(3,561.5)	(3,588.2)
Equity as at 31.12.2018	1,000.0	(0.1)	1,430.0	58.2	1,000.5	386.2	(1,969.8)	15,384.0	17,288.9
Adjustment on initial application of IFRS 16								(61.4)	(61.4)
Merger losses								(65.7)	(65.7)
Equity as at 1.1.2019	1,000.0	(0.1)	1,430.0	58.2	1,000.5	386.2	(1,969.8)	15,256.9	17,161.9
1.1.-31.12.2019
Comprehensive income
Profit/(loss)					51.3			7,409.0	7,460.3
Total other comprehensive income				0,0		(48.0)	(87.3)		(135.3)
Comprehensive income				0,0	51.3	(48.0)	(87.3)	7,409.0	7,325.1
Transactions with owners of the company
Own shares		0,0						(9.2)	(9.2)
Accrued and paid dividend								(6,124.9)	(6,124.9)
Equity-settled share-based payment transactions				9.2					9.2
Perpetual Tier 1 capital					0.6			(0.6)
Perpetual Tier 1 capital - interest paid					(50.1)				(50.1)
Total transactions with owners of the company		0,0		9.2	(49.5)			(6,134.8)	(6,175.0)
Equity as at 31.12.2019	1,000.0	0,0	1,430.0	67.4	1,002.3	338.2	(2,057.1)	16,531.2	18,311.9

th Quarter and Preliminary Full Year 2019 Report

36 Gjensidige Forsikring Group – 4

AI Terminal

Gjensidige Forsikring ASA

3606_rns_2020-01-22_6fc0adc3-c317-407f-813f-e272b2d9c9c7.pdf

Group highlights Fourth quarter and preliminary full year 2019 report

Year as a whole

Group

General Insurance

Fourth quarter

Group

General Insurance

Proposed dividend

Profit performance Group

A strong fourth quarter and record high full year result

Group profit performance

Development during the year

Development during the quarter

Equity and capital position

General Insurance Private

Development during the quarter

General Insurance Private

General Insurance Commercial Development during the year

Development during the quarter

General Insurance Commercial

General Insurance Denmark

Development during the quarter

General Insurance Denmark

General Insurance Sweden Development during the year

General Insurance Sweden

General Insurance Baltics

General Insurance Baltics

Pension

Development during the year

Pension

Management of financial assets and properties

Development during the year

Match portfolio

Financial assets and properties

Free portfolio

Fixed-income instruments

Equity portfolio

Property portfolio

Return per asset class

Organisation

Events after the balance sheet date

Dividend

Strategy and outlook

Oslo, 21 January 2020 The Board of Gjensidige Forsikring ASA

Consolidated income statement

Consolidated statement of comprehensive income

Consolidated statement of financial position

Consolidated statement of changes in equity

Consolidated statement of cash flows

Notes

1. Accounting policies

New standards adopted

IFRS 16 Leases (2016)

New standards and interpretations not yet adopted

IFRS 9 Financial instruments (2014) in the insurance operations

Amendments to IFRS 4 Applying IFRS 9 Financial

IFRS 17 Insurance Contracts (2017)

2. Seasonal variations

4. Earned premiums from general insurance

5. Claims incurred etc. from general insurance

6. Run-off gains/(losses) from general insurance

7. Claims provision, gross from general insurance

8. Financial assets and liabilities

Fair value

Quoted prices in active markets

Valuation based on observable market data

The valuation process for financial assets classified as level three

Sensitivity financial assets level three

Valuation hierarchy 2019

Valuation hierarchy 2018

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

9. Contingent liabilities

10. Related parties

11. Leasing

Alternative performance measures and key figures

Quarterly earnings performance

Income statement