Gjensidige Forsikring ASA

Earnings Release • Jan 24, 2025

Higher profits in 2024, driven by significant improvement in the insurance service result

Higher profits in 2024, driven by significant improvement in the insurance service result

This release contains inside information related to Gjensidige Forsikring ASA

pursuant to the EU Market Abuse Regulation and is subject to the disclosure

requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

Gjensidige generated a profit after tax of NOK 1,203 million during the fourth

quarter and NOK 5,181 million for the full year, reflecting continued strong

revenue growth and an improved combined ratio, which together with the results

from the investment portfolios and Pension contributed to a return on equity of

22.7 per cent. Gjensidige delivered on the annual financial targets except the

combined ratio. The Group will continue to implement targeted measures to

improve profitability and deliver on the financial targets for 2025 and 2026.

The Group's capital position is strong. The Board proposes a total dividend of

NOK 10.00 per share, consisting of a regular dividend of NOK 9.00 per share and

a special dividend of NOK 1.00 per share.

-Our strong growth momentum is very encouraging, and we are very pleased to see

that our strong efforts have resulted in improved profitability in the fourth

quarter, says CEO Geir Holmgren.

-We are confident to deliver on our targets for the next two years. We will

continue to focus on profitable growth and further improve operational

efficiency, which together with our strong product offering should bode well for

continued solid results and attractive returns, says Holmgren.

Highlights fourth quarter 2024 (fourth quarter 2023)

Profit or loss before tax expense: NOK 1,605.3 million (1,574.6)

Earnings per share: NOK 2.38 (2.18)

Insurance revenue: NOK 10,019.0 million (8,979.2)

Insurance service result: NOK 1,669.9 million (725.2)

Combined ratio: 83.3 % (91.9 %)

Cost ratio: 12.2 % (12.6 %)

Financial result: NOK 207.8 million (1,837.8)

Highlights year as a whole 2024 (2023)

Profit or loss before tax expense: NOK 6,823.4 million (5,504.3)

Earnings per share: NOK 10.01 (8.11)

Insurance revenue: NOK 38,359.4 million (34,568.1)

Insurance service result: NOK 5,386.6 million (4,460.6)

Combined ratio: 86.0 % (87.1 %)

Cost ratio: 12.3 % (13.7 %)

Financial result: NOK 2,458.3 million (2,527.1)

Proposed dividend

Proposed regular dividend: NOK 4,500 million (4,375), corresponding to NOK 9.00

per share (8.75)

Proposed special dividend: NOK 500 million (0), corresponding to NOK 1.00 per

share (0.00)

General insurance

Insurance revenue increased by 11.6 per cent to NOK 10,019.0 million (8,979.2)

in the quarter, or by 11.2 per cent measured in local currency. This was mainly

driven by effective and differentiated pricing measures and solid renewals.

The insurance service result was 1,669.9 million (725.2) mainly reflecting

higher insurance revenue and an improvement in the loss ratio, primarily driven

by successful targeted pricing measures.

The loss ratio decreased by 8.2 percentage points, reflecting a 6.1 percentage

points improvement in the underlying frequency loss ratio, lower large losses

and the change in risk adjustment. Adjusted for weather-related claims in the

fourth quarter of 2023, the loss ratio improved by 7.0 percentage points and the

underlying frequency loss ratio improved by 4.8 percentage points, driven by

Private and Commercial in Norway and Sweden.

The cost ratio improved by 0.4 percentage points driven by Commercial in Norway,

Private in Denmark and Sweden.

Pension

The pension segment recorded a profit before tax expense of minus NOK 58.3

million (113.7), driven by a negative net finance income.

Financial result

The financial result for the quarter was NOK 207.8 million (1,837.8),

corresponding to a return on total assets of 0.3 per cent (3.0). The result for

the quarter was positively impacted by high running yields, lower credit spreads

and positive equity markets. Higher interest rates had a negative impact on the

result.

Result for the year as a whole

The Group recorded a profit before tax expense of NOK 6,823.4 million (5,504.3)

for the year. The profit from general insurance operations measured by the

insurance service result was NOK 5,386.6 million (4,460.6), corresponding to a

combined ratio of 86.0 per cent (87.1).

The profit after tax expense from continuing operations was NOK 5,180.7 million

(4,085.8). Earnings per share amounted to NOK 10.10 (8.02).

The insurance service result from general insurance operations increased by 20.8

per cent, reflecting higher insurance revenue, and a lower cost ratio. The loss

ratio increased by 0.3 percentage points, mainly driven by a higher underlying

frequency loss ratio and lower run-off gains. The change in risk adjustment and

the discounting effect contributed positively. The underlying frequency loss

ratio increased by 1.0 percentage point. Adjusted for weather-related claims of

NOK 577.1 million in 2024 and 748.1 million in 2023, the loss ratio and the

underlying frequency loss ratio increased by 1.0 percentage point. The

deterioration was primarily driven by Private and Commercial in Norway,

reflecting higher claims cost for motor insurance. The insurance service result

for the period also reflects a positive impact from the change in risk

adjustment recognised in the second quarter of NOK 393.7 million.

The cost ratio improved by 1.4 percentage points, primarily reflecting one-off

expenses recognised in the third quarter of 2023. Higher insurance revenue also

contributed positively.

The pension segment recorded a profit before tax expense of NOK 403.0 million

(106.1), driven by an improved insurance service result, an increase in net

finance income and income from the unit-linked business.

The financial result for the period was NOK 2,458.3 million (2,527,1), which

corresponds to a return on total assets of 3.9 per cent (4.2). A high running

yield and lower credit spreads, as well as rising equity markets generated

positive returns.

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

described at www.gjensidige.com/reporting

This release is issued by Christian Haraldsen, media relations officer at

Gjensidige Forsikring ASA.

Date and time of publication: 07:00 CET, 24 January 2025

Contact persons, Gjensidige Forsikring ASA:

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 4,900 employees and offer insurance products in Norway,

Denmark and Sweden. In Norway, we also offer pension and savings. The Group's

insurance revenue was NOK 39 billion in 2024, while total assets were NOK 171

billion.