Gjensidige Forsikring ASA

Earnings Release • Jul 12, 2019

A strong second quarter result

A strong second quarter result

The second quarter 2019 result was strong, with the improvement from the

corresponding quarter last year primarily driven by improved and good

profitability for Norwegian motor insurance and more favourable weather

conditions in Norway. The Group continued to put through significant

profitability measures across all segments. The annualised return on equity year

-to-date was 23.5 per cent excluding the gain on the sale of Gjensidige Bank.

Gjensidige Forsikring Group recorded a profit before tax of NOK 1,722.9 million

(1,034.9) for the quarter. The profit from general insurance operations measured

by the underwriting result was NOK 1,257.6 million (706.8), corresponding to a

combined ratio of 79.3 (88.2). The return on financial assets was 0.9 per cent

(0.7) or NOK 512.9 million (370.7). The profit after tax was NOK 1,341.5 million

(1,004.6). Earnings per share amounted to NOK 2.68 (2.01).

-We are very satisfied with delivering a strong quarter, which reflects a clear

improvement in our underlying profitability, to a large extent due to strong and

effective profitability measures. Going forward we will continue to develop our

unique position in Norway and strengthen our profitability and growth in

Denmark, Sweden and the Baltics, says CEO Helge Leiro Baastad.

The underwriting result was driven by 1.6 per cent growth in earned premiums, an

improved underlying frequency loss ratio, higher run-off gains and lower large

losses. The underlying frequency loss ratio improved primarily due to

profitability measures implemented for motor insurance in Norway and improved

weather conditions compared to last year, which impacted the property insurance

lines.

The Pension operation recorded increased profit due to higher net operating

income, partly offset by lower returns on property investments. The financial

return in the quarter was higher than in the same period last year. All asset

classes contributed positively in the quarter.

The Group recorded a profit before tax of NOK 4,753.6 million (1,639.9) for the

first half-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 NOK 3,169.1 million.

The profit from the general insurance operations measured by the underwriting

result was NOK 2,055.7 million (1,118.0), corresponding to a combined ratio of

82.9 (90.6). The return on financial assets was 2.1 per cent (1.2) or NOK

1,195.1 million (625.5). The profit after tax from continuing and discontinued

operations was NOK 4,127.2 million (1,539.1) and the corresponding earnings per

share were NOK 8.25 (3.08).

Highlights second quarter 2019 (second quarter 2018):

·  Profit/loss before tax: NOK 1,722.9 million (1,034.9)

·  Earnings per share: NOK 2.68 (2.01)

·  Earned premiums: NOK 6,082.8 million (5,987.2)

·  Underwriting result: NOK 1,257.6 million (706.8)

·  Combined ratio: 79.3 (88.2)

· Cost ratio: 14.9 (15.2)

·  Financial result: NOK 512.9 million (370.7)

Special factors and events:

·  Dividend for 2018 was paid on 9 April 2019: NOK 3,550 million,

corresponding to NOK 7.10 per share

Highlights year to date 2019 (year to date 2018):

· Profit/loss before tax: NOK 4,753.6 million (1,639.9)

· Earnings per share: NOK 8.25 (3.08)

· Earned premiums: NOK 12,019.5 million (11,853.5)

· Underwriting result: NOK 2,055.7 million (1,118.0)

· Combined ratio: 82.9 (90.6)

· Cost ratio: 14.9 (15.2)

· Financial result: NOK 1,195.1 million (625.5)

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 3,900 employees and offer insurance products in Norway,

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

savings. Operating income was NOK 26 billion in 2018, while total assets were

NOK 157 billion.