Gjensidige Forsikring ASA

Earnings Release • Jul 14, 2021

Very solid second quarter results

Very solid second quarter results

Strong operations, effective pricing measures, good risk selection and stringent

cost control resulted in a record high second quarter underwriting result. A

strong financial result contributed to the solid result for the quarter.

Gjensidige's outlook remains promising.

.Gjensidige Forsikring Group recorded a profit before tax of NOK 2,330.2 million

(2,476.8) for the quarter. The profit after tax expense was NOK 1,819.2 million

(1,952.1) and the corresponding earnings per share were NOK 3.64 (3.90). The

profit from general insurance operations measured by the underwriting result was

NOK 1,527.0 million (1,343.8), corresponding to a combined ratio of 78.7 (80.1).

- We are very pleased with the strong results we continue to deliver. This is to

a large degree a result of our solid brand, efficient operations and dedicated

employees who put strong efforts in serving our customers every day, says CEO

Helge Leiro Baastad. In Norway operations continue to run very well, we have

good progress in our Danish operations, while the profitability in Sweden and

the Baltics is not satisfactory. Going forward, we will continue to focus on

growth in our markets. Together with strong and efficient operations, this is a

prerequisite to continue delivering solid results and attractive returns,

Baastad says.

The Covid-19 pandemic had a positive impact on the Group's claims, estimated at

approximately NOK 119 million (132), corresponding to 1.7 percentage points on

the loss ratio. The positive effect was primarily due to less travel activity.

Earned premiums from general insurance increased by 6.1 per cent to NOK 7,175.4

million (6,765.3) for the quarter. Measured in local currency, premiums

increased by 8.6 per cent. Earned premiums increased due to solid renewals and

effective and differentiated pricing measures. The underwriting result increased

primarily due to premium growth. The underlying frequency loss ratio improved by

1.0 percentage points compared with the same quarter last year, driven by

Private and Commercial. Adjusted for the effects of the Covid-19 claims, the

underlying frequency loss ratio improved by 2.4 percentage points.

The Pension segment generated a higher profit for the period, driven by higher

operating income.

The return on financial assets was 1.3 per cent (1.9) or NOK 802.1 million

(1,158.5). An improved outlook for economic growth, higher inflation and low and

stable interest rates and credit margins drove the performance of cyclical

assets such as equities, commodities and real estate during the quarter.

For the first-half year, the Group recorded a profit before tax of NOK 3,927.3

million (1,979.7). The profit from general insurance operations measured by the

underwriting result was NOK 2,566.9 million (2,401.4), corresponding to a

combined ratio of 81.9 (82.0). The return on financial assets was 2.3 per cent

(minus 0.6) or NOK 1,358.3 million (minus 360.8). The profit after tax expense

was NOK 3,159.6 million (1,472.8). Earnings per share amounted to NOK 6.32

(2.95).

The increase in the underwriting result was driven by 6.1 per cent growth in

earned premiums and higher run-off gains, partly offset by higher large losses

and operating expenses. Earned premiums rose 7.5 per cent in local currency. The

reported underlying frequency loss ratio was broadly in line with the same

period last year. Adjusted for the effects of the weather- and Covid-19 claims,

the underlying frequency loss ratio improved by 1.6 percentage points.

The Pension segment recorded a higher profit due to higher operating and

financial income.

The return on financial assets was 2.3 per cent (0.6) or NOK 1,358.3 million

(minus 360.8).

Highlights second quarter 2021 (second quarter 2020)

· Profit/(loss) before tax: NOK 2,330.2 million (2,476.8)

· Earnings per share: NOK 3.64 (3.90)

· Earned premiums: NOK 7,175.4 million (6,765.3)

· Underwriting result: NOK 1,527.0 million (1,343.8)

· Combined ratio: 78.7 (80.1)

· Cost ratio: 14.2 (14.5)

· Financial result: NOK 802.1 million (1,158.5)

Highlights year-to-date 2021 (2020)

· Profit/(loss) before tax: NOK 3,927.3 million (1,979.7)

· Earnings per share: NOK 6.32 (2.95)

· Earned premiums: NOK 14,148.7 million (13,335.8)

· Underwriting result: NOK 2,566.9 million (2,401.4)

· Combined ratio: 81.9 (82.0)

· Cost ratio: 14.4 (14.8)

· Financial result: NOK 1,358.3 million (minus 360.8)

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

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

Forsikring Group Q2 2021.

This release is issued by Jon Aniksdal, Communication Manager at Gjensidige

Forsikring ASA.

Date and time of publication: 07:00 CET, 14 July 2021

This information is subject to disclosure under the Norwegian Securities Act

section §5-12.

Contacts:

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

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

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

Exchange. We have about 3,700 employees and offer insurance products in Norway,

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

savings. The Group's operating income was NOK 28 billion in 2020, while total

assets were NOK 118 billion.