Gjensidige Forsikring ASA

Earnings Release • Oct 25, 2018

Results impacted by extraordinary weather conditions

Results impacted by extraordinary weather conditions

Gjensidige Forsikring Group recorded a profit before tax of NOK 964.0 million

(1,578.1) for the quarter. The result does not include the profit from

Gjensidige Bank, as this now is recorded as a discontinued operation. The profit

from general insurance operations measured by the underwriting result was NOK

573.4 million (1,150.2), corresponding to a combined ratio of 90.6 (81.0).

Adjusted for the NOK 80.0 million restructuring provision, the result was NOK

653.4 million. The return on financial assets was 0.8 per cent (0.9), or NOK

426.5 million (477.3). The profit after tax from continuing and discontinued

operations was NOK 873.1 million (1,312.7) and the corresponding earnings per

share were NOK 1.75 (2.63).

- Results were significantly impacted by claims following the extreme weather,

which continued into the third quarter, in addition to the expected

deterioration of profitability in our Norwegian motor insurance line. However,

we are very pleased with the positive development outside Norway. Going forward

we will strengthen our efforts to improve profitability through price

adjustments, cost-efficient operations and the best customer experiences in the

Nordic market, CEO Helge Leiro Baastad says.

- I am very pleased with our handling of the customers in this situation with an

extraordinary claims volume. This has provided us with an opportunity to show

that claims handling is a competitive advantage, Baastad says.

The decline in the underwriting result was driven by 1.0 per cent growth in

premiums, offset by a significant weather-related increase in frequency claims,

primarily for property and agriculture insurance lines in Norway as well as the

underlying claims inflation for Norwegian motor insurance. The deviation in

weather-related frequency for property and agricultural claims for the third

quarter, considering historical average levels, is estimated to ~ NOK 130-160

million. This includes NOK 80 million relating to estimated claims for damages

to crops. Large losses increased, partly related to weather, and were somewhat

higher than the expectation level. Run-off gains increased and were somewhat

higher than anticipated.

The Pension segment generated record profits for the quarter, driven by customer

growth and an increase in assets under management.

The financial return in the quarter was lower than in the same period last year,

with lower contributions from bonds and current equities.

The Retail Bank recorded a lower result compared with the same quarter last

year, due to higher operating expenses, increased acquisition costs and lower

gains on financial instruments.

Year to date the Group recorded a profit before tax of NOK 2,603.9 million

(4,221.3). The result does not include the profit from Gjensidige Bank. The

profit from general insurance operations measured by the underwriting result was

NOK 1,691.4 million (2,854.7), corresponding to a combined ratio of 90.6 (83.6).

The return on financial assets was 2.0 per cent (2.8) or NOK 1,052.0 million

(1,513.4). The profit after tax from continuing and discontinued operations was

NOK 2,412.2 million (3,517.2) and the corresponding earnings per share were NOK

4.83 (7.04).

Highlights third quarter 2018 (third quarter 2017)

· Profit/loss before tax: NOK 964.0 million (1,578.1)

· Earnings per share: NOK 1.75 (2.63)

· Earned premiums: NOK 6,118.1 million (6,056.4)

· Underwriting result: NOK 573.4 million (1,150.2)

· Combined ratio: 90.6 (81.0)

· Cost ratio: 15.6 (14.7)

· Financial result: NOK 426.5 million (477.3)

Highlights year to date 2018 (year to date 2017)

· Profit/loss before tax: NOK 2,603.9 million (4,221.3)

· Earnings per share: NOK 4.83 (7.04)

· Earned premiums: NOK 17,971.6 million (17,428.8)

· Underwriting result: NOK 1,691.4 million (2,854.7)

· Combined ratio: 90.6 (83.6)

· Cost ratio: 15.3 (15.2)

· Financial result: NOK 1,052.0 million (1,513.4)

This information is subject to disclosure under the Norwegian Securities Act

section §5-12.

Head of Communication Øystein Thoresen. Tel: 47 952 33 382

Head of Investor Relations Mitra Hagen Negård. Tel:  47 957 93 631

Gjensidige is a leading Nordic insurance group listed on the Oslo Stock

Exchange. We have about 3,800 employees and offer insurance products in Norway,

Denmark, Sweden and the Baltic states. In Norway, we also offer banking, pension

and savings. Operating income was NOK 27 billion in 2017, while total assets

were NOK 149 billion.