Gjensidige Forsikring ASA

Investor Presentation • Nov 27, 2018

Gjensidige Forsikring

Capital Markets Day

Tuesday 27 November 2018

Programme

13:00 Presentations

Helge Leiro Baastad, CEO

Sigurd Austin, EVP Private

Catharina Hellerud, EVP Analytics, Product and Price

14:25 Break

Jostein Amdal, CFO

Janne Flessum, EVP Communications and Shared Services

Concluding remarks

16:00 Mingling with management

Disclaimer

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Excel today – Empower for tomorrow

Helge Leiro Baastad CEO

Today's CMD agenda

Excel today – Empower for tomorrow Helge Leiro Baastad, CEO

Delivering the best customer experiences today and tomorrow Sigurd Austin, EVP Private

Roadmap to continued strong value creation Jostein Amdal, CFO

Creating sustainable competitive advantage through business intelligence and analytics Catharina Hellerud, EVP Analytics, Product & Price

Excellence in our core operations is our first priority

Retain strong and unique position in Norway

Operational strategic priorities

Strengthen profitability and growth outside Norway

Maintain capital discipline and attractive dividends

Koncernen har været no teret på Oslo 2010. I sna Børs siden rt 200 år har vi ans at ildsjæl e, som arbe - jder for at sikre kunde rnes liv, helbred og værdie r. Gjensidige Forsikring Vi er circa 3.100 med arbejde re, he Danma raf 495 i rk, og vi tilbyder skade forsikring i Norge, Danma rk, Sverige og Balti kum.	Digital customer experiences	We will provide the best digital customer experiences in the Nordic and Baltic general insurance market
5 4 3 2 1 1 2 3 4 5	Business intelligence and analytics	We will increase our analytical use of data to ensure attractive value propositions and profitable operations
	Dynamic organisational capabilities	We will continue to invest in our people and organisation

We operate in an attractive market place - further consolidation expected

Stable market and high barriers to entry… …size and scale are increasingly important

• Superior cost positions
• Strong local brands
• High customer loyalty
• Rational, well-capitalised players
• Strong partner structures
• Rising risk premiums

Capital Markets Day 2018 7 *Source: Published figures 31.12.2017 European players: Direct Line, Generali (France), Aviva UK GI, RSA UK, Ageas. Nordic players: If, Tryg, Sparebank1,TopDanmark, DNB, Frende, RSA Scandinavia

Cost ratio European GI 40	Meet compliance complexity	§
Nordic GI 30 20	Enable strategic/tech investments
10 Company	Attract and develop skills
• Superior cost positions • Strong local brands • High customer loyalty	Increase diversification
• Rational, well-capitalised players • Strong partner structures • Rising risk premiums	Be preferred alliance partner

Gjensidige is a highly profitable and leading general insurer in the Nordic and Baltic market…

Leading position		Strong returns		Efficient operation
			Other Motor A&H Property

Capital Markets Day 2018 8

…delivering ahead of targets…

KPI targets 2018 Annual financial targets 2014-2018

…and continuing to return high, stable and predictable dividends on a regular basis

Attractive and predictable cash dividends

…strong capital position supports the dividend

* Target corridor assumes ~4pp run-off gains and normalised large losses

** Solvency margins when adjusting capital position to reflect best estimate reserves.

Figures as at 30.09.2018. The legal perspective is the regulatory approved version of the partial internal model.

The Solvency II regulation is principle based. The figures are adjusted for a formulaic dividend pay-out ratio of 70 per cent of net profit.

R12M18 CR affected by extreme weather…

Our mission is to safeguard life, health and assets - sustainability is in our DNA…

…reflected also in the important role of the Gjensidige Foundation in the Norwegian society

Social responsibility through prevention in the areas of safety and health

Our vision is "knowing the customer best and caring the most"…

Demonstrating a strong ability and willingness to adapt to and drive change

Capital Markets Day 2018 13

… and our strategy is Excel Today – Empower for Tomorrow

We have what it takes! Strong brand, loyal customers, attractive partners, analytical skills, advanced processes and solid financial capacity And it's still all about people…!

Capital Markets Day 2018 14

Our targets towards 2022 are both ambitious and achievable

Becoming the most customer-oriented general insurer in the Nordic and Baltic region

CSI: >78 Retention: >90% in Norway and >85% outside Norway

CSR target 2022

Reduce claims-related CO2 intensity relative to premiums year by year*

* Assuming CR within target range; reflecting normal claims years

Customer targets 2022 Annual financial targets 2019 - 2022

Ambitions	Target 2019-2022
Combined ratio	86-89%1)
Cost ratio	<15%
Solvency margin (PIM)	2) 135-200%
ROE after tax	>20%1)-3)
UW result outside Norway	NOK 750m4) (in 2022)
Dividends	Nominal high and stable 2) (and >80 % over time)

1) Assuming annual run-off gains ~NOK 1 billion through 2022. Corresponds to 90-93 per cent given zero run-off gains post 2022.

2) Assuming sale of Gjensidige Bank

3) Corresponds to >16 per cent given zero run-off gains post 2022

4) Excluding run-off

Delivering the best customer experiences today and tomorrow

Sigurd Austin EVP Private

We have four key ambitions towards 2022

	Ambitions	Measures	KPI Targets 2022
1	Maintain high customer satisfaction (CSI*)	Be customer centric	>78
2	Maintain high retention	Build loyalty and broad engagements	> 90% Norway > 85% outside Norway
3	Improve sales effectiveness	Enhance sales activity output	+10%
4	Increase share of digital claims reporting	Increase speed and enhance precision	80% Norway

Delivering the best customer experiences - Operating and developing through customer centricity

The Gjensidige experience – Customer centricity is our #1 differentiator An industry leading brand preference

25

Gjensidige

No preference

Competitors

19

13

9

We will improve customer experiences even more through analytics and digitalisation

Capital Markets Day 2018 19

Target 2022: Maintain high customer satisfaction – Group CSI >78

Price, quality and trust remain the key drivers for customer satisfaction We have record high customer satisfaction

We have the best reputation in Norway

Price and terms	• Value for money • Terms and conditions
Claims	• Effective and efficient
Interactions	• Available and pleasant • Effective and efficient
Trust and adaptability	• Reputation • Customer oriented solutions
Digital solutions	• Available • Low customer effort
Customer dividend	• Customer "profit share"

*Source: CSI, Ipsos ** Source: Reputation surveys, Ipsos

High retention levels drive cost efficiency

Satisfied customers buy more and stay longer * Keeping the best customers

Example Private segment:

High customer retention and broad product engagement **

Average number of products

* Relative change in retention and premium growth one year after customer satisfaction score

** Source: Operational customer satisfaction survey 2017-2018, Netlife/Gjensidige

*** Affinity/ loyalty customers, representing 85% of premium volume

– Retention rates are higher for most profitable customer segments

Retention by customer score

Target 2022: Maintain high and stable retention – Norway > 90 per cent, outside Norway > 85 per cent

Potential for improved retention Key drivers for retention Retention rates, %

• Increase customer satisfaction
• Price, quality and trust
• Broaden product engagement
• Relevant product and service offerings
• CRM excellence
• Improve pricing and scoring models
• Optimal risk selection and risk pricing

We will make every customer interaction more relevant and convenient

Connecting data

– Applying analytics through the customer journey

Personalizing interactions

• Internal /external data
• Rule engines
• Application for all customer contacts

CRM analytics drives sales effectiveness

Predictive modelling has increased hit rates by 40% and sales per hour by 28%

Adapting distribution model to customer needs

– Consumer maturity drives digital conversion

Customers prefer online sales and services*

Online sales ambition towards 2022: ~ 20 % annual growth 100 258 Online sales Index

2012 2013 2014 2015 2016 2017

Target 2022: 10 per cent increase in sales effectiveness

Further improve low cost distribution model Drivers for increased sales effectiveness

Digital claims reporting improves customer experience and operational efficiency

First step towards straight through processing - Speed, predictability and precision Two main effects from digital reporting

• Improved customer experience
• Follow claims status process online
• Faster claims settlement
• Frees up capacity for better handling of more complicated claims
• Efficiency gains
• Reduced average claims handling cost per claim
• 20% reduction since 2016 (FTE cost)

Target 2022: 80 per cent digital reporting of frequency claims

CSI score claims and online reporting share, Norway

Strong ambitions for digitalisation Drivers for increasing digital reporting

Share of claims reported online for retail customers outside Norway

• Sweden: 51%
• Denmark: 47%
• Baltics (Lithuania): 67%

We have four key ambitions towards 2022

KPI targets 2022

• Deliver the best customer experiences through customer centricity
• Maintain customer loyalty and broad engagements
• Enhance sales activity output
• Further digitalise and improve speed and precision

Ambitions	Target 2022
Customer satisfaction (CSI)	> 78
Retention	> 90% Norway > 85% outside Norway
Sales effectiveness	+10 %
Digital claims reporting	80% Norway

Creating sustainable competitive advantage through business intelligence and analytics

Catharina Hellerud EVP Analytics, Product and Price

We have four key ambitions towards 2022

	Ambitions	Measures	KPI targets 2022
1	Automate tariffs	Optimal and dynamic risk selection and risk pricing	100 %
2	Increase sales effectiveness	Apply more data, broader application	+10%
3	Increase straight through processing	Automate frequency claims handling	64% Norway
4	Reduce claims cost	Apply analytics	NOK 500m

We use data analytics to establish increasingly advanced pricing models …

Development of pricing strategy Strategic initiatives for next generation tariffs

… and continuously aim to achieve optimal pricing

Example: Private motor in Norway

– profitability deterioration 2016-2018*

Illustration of efficiency losses

Minimize efficiency loss by:

* Illustration purpose – not based on exact figures.

**Optimal pricing: Illustration of pricing model assuming perfect symmetry with claims, risk and market behaviour

We are now on a journey to automate pricing

Target 2022: 100 per cent data driven tariffs in our new pricing regime

Automation

Capital Markets Day 2018 33

We are improving sales effectiveness through state-of-the-art analytical CRM

Addressing the right customer – with the right product – at the right time – in the right channel

Target 2022: 10 per cent increase in sales effectiveness

Further improve low cost distribution model Drivers for increased sales effectiveness

• Real time use of data and content
• Model factory
• Machine learning
• Real-time event processing
• Improved digital marketing and analytics platform

Combining digital and offline data and contents to personalise customer journeys

Straight through processing of claims will further increase efficiency

Second step towards STP - Speed, predictability and precision

Three main effects from STP

• Improved customer experience
• Faster claims settlement
• Frees up capacity for better handling of more complicated claims
• Efficiency gains
• Further reduced average claims handling cost per claim
• Lower claims pay-outs
• Automated and prioritised repairs, e.g. Smart Repair

Illustration: Our rule engine provides a unique claims score

Target 2022: 64 per cent straight-through processing

Further potential for straight-through processing

Close to 100% of motor windshield and rescue already fully automated in a different process.

Drivers for increased straight-through processing and improved efficiency

• Increase share of claims reported online
• Continue improving claims rule engine
• Advance data capture
• Continue monitoring of claims payment and leakages

Target 2022: Reduce annual claims cost by NOK 500m

Cost reduction potential across several areas Drivers to reduce claims cost

Procurement	• •	Monitor cost and vendor agreements Incentivise vendors to keep cost down
Steering/ method	•	Utilise analytical insight and robotics; i.e. image recognition and smart repair
Fraud detection	• •	Improve analytical models Include new data sources
Process optimisation	•	Automate claims handling

Example motor: Smart-repair potential for 10% of frequency claims with corresponding potential for 40-70% claims cost reduction

We have four key ambitions towards 2022

KPI targets 2022

• Automate pricing processes
---------------------------------------

• CRM excellence
• Automate claims processes
• Achieve further claims savings

Ambitions	Target 2022
Automated tariffs	100%
Sales effectiveness	+10%
Claims straight through processing	64% Norway
Claims cost	Reduce by NOK 500m

Continued strong value creation

Jostein Amdal CFO

We have ambitious targets

Ambitions	Target 2022
Customer satisfaction (CSI)	> 78
Customer retention	> 90% Norway > 85% outside Norway
Sales effectiveness	+10%
Automated tariffs	100%
Digital claims reporting	80% Norway
Claims straight-through-processing	64% Norway
Claims cost	Reduce by NOK 500m
Claims-related CO2 intensity	Reduce year-by-year

KPI targets 2022 Annual financial targets 2019-2022

Ambitions	Target 2019-2022
Combined ratio	86-89%1)
Cost ratio	<15%
Solvency margin (PIM)	2) 135-200%
ROE after tax	>20%1)-3)
UW result outside Norway	NOK 750m 4) (in 2022)
Dividends	Nominal high and stable 2) (and >80 % over time)

Capital Markets Day 2018 42 1) Assuming annual run-off gains ~NOK 1 billion through 2022. Corresponds to 90-93 per cent given zero run-off gains post 2022.

2) Assuming sale of Gjensidige Bank

3) Corresponds to >16 per cent given zero run-off gains post 2022

4) Excluding run-off

Excellence in our core operations is our first priority

Retain strong and unique position in Norway

• Adjust prices and terms
• Improve tariffs
• Increase digitalisation and automation

Strengthen profitability and growth outside Norway

Maintain capital discipline and attractive dividends

• Reduce total costs
• Improve tariffs
• Increase digitalisation and automation
• Strengthen own distribution

• Implement new core IT system

• Retain solid capital situation

• Pursue disciplined and rational M&A
• Deliver high and stable nominal dividends
• Support ROE target

We will continue to be among the most cost efficient insurance companies…

19

32

8

Low cost base Efficiency measures in place

* General insurance operation, excluding Corporate Center, R12M Q3 2018

** Full year 2017

*** General insurance Norway

… and build a profitable operation outside Norway

Growing outside Norway to improve stability and long-term dividend potential Where are we heading outside Norway?

Increasing profitability outside Norway

• Target 2022: total underwriting result outside Norway at NOK 750m (excl run-off)
• Improving CR, but above level in Norway
• Building on best practice from our Norwegian business
• Growth through value enhancing M&As
• Private and SME segments
• Returns above cost of capital
• Generate dividend capacity

Private – Leveraging our unique position

Very strong profitability

.

Leading position and high customer retention Private will remain the most profitable segment

• Turning point for motor during 1H 2019
• Improving tariffs
• Adjusting prices and terms
• Developing advanced digital solutions
• Automating internal processes
• Increasing sales efficiency
• Organic growth ambitions

Commercial – Maintaining our strong position

High profitability

Leading position and high customer retention Underlying improvements in profitability

• Turning point for motor during 1H 2019
• Strong focus on SME
• Implementing best practice digitalisation in distribution and claims handling from Private segment
• Improving tariffs
• Adjusting prices and terms
• Organic growth ambitions

Denmark – Strengthening our competitive position

Profitability improving

Well established player with further potential Improved profitability through streamlining processes and products

• Reducing costs focus on simplification and digitalisation
• Increase sales efficiency and retention
• Implementing new IT core system
• Re-underwriting activities
• Improving tariffs and CRM
• Reconsidering partnerships
• Seeking attractive M&A opportunities

Sweden - Laying the ground for future profitability

Profitability turned the corner in 2018

Need to build scale and strengthen position Attractive potential, focus on efficiency

• Reducing cost through digitalisation and automation
• Implementing new IT core system
• Repricing and improving risk selection / tariffs
• Strengthening internal sales force, increase sales efficiency and retention
• Seeking attractive M&A opportunities

Baltics - Robust profitability, positioned for growth

Profitability turned the corner in 2018

Well established player with further potential Profitability reached, ready to focus on growth

• Strengthening internal sales force, improve CRM and increase sales efficiency
• Enhancing our retention rate
• Further cost reduction
• Increasing digitalisation
• Seeking attractive M&A opportunities

Pension – Completing the offer to Norwegian commercial customers

Strong profitability

Established challenger Positioned for continued growth and increased profits

• Capitalising on a strong brand and large non-life commercial portfolio
• Cross selling accident and health insurance with DC pension plans to SME customers
• Continue to develop customer friendly digital solutions
• Attractive market growth prospects
• Capital light and scalable business model
• Organic growth ambitions

Investments – Supporting the general insurance business

High share of fixed income investments High quality assets

Investment returns well above risk free rate Investment strategy

Split - Rating	Match portfolio		Free portfolio
	NOK bn	%	NOK bn	%
AAA	10.9	31.7	1.1	14.1
AA	3.1	9.0	1.0	12.1
A	4.7	13.6	2.1	26.6
BBB	1.8	5.1	1.2	14.8
BB	0.3	0.8	0.3	3.9
B	2.4	7.0	0.3	3.2
CCC or lower	0.1	0.3	0.1	0.7
Internal rating	7.9	22.8	1.5	18.8
Unrated	3.3	9.7	0.5	5.8
Fixed income portfolio	34.4	100.0	8.1	100.0

• Conservative strategy
• Strict limits on market, interest rate, ALM, currency and credit risks
• SRI policy in place for 11 years

Solvency Capital Requirement (SCR) Capital > SCR

Strong capital position… ..leads to potential for further M&A growth, or special dividends

• Solid capitalisation to support dividend, regulatory uncertainty and growth
• Solvency margin in the legal perspective will, all else equal, decrease by ~10pp by year-end as the FSA requires some model changes
• In addition decrease due to actual dividend being subtracted from capital at year end and likely change in tax regulation
• Further debt capacity as of Q318: Tier 1 NOK 1.5-2.1 bn

We have an attractive dividend policy

Strong track record of generating attractive shareholder returns Dividend policy

Gjensidige targets high and stable nominal dividends to its shareholders, and a pay-out ratio over time of at least 70 per cent of profit after tax (80 per cent payout ratio from 2019, assuming closing of the sale of Gjensidige Bank). 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.

We will continue to deliver superior customer experiences and stable shareholder returns - in a sustainable way

Becoming the most customer-oriented general insurer in the Nordic and Baltic region

CSI: >78 Retention: >90% in Norway and >85% outside Norway

CSR target 2022

Reduce claims-related CO2 intensity relative to premiums year by year*

* Assuming CR within target range; reflecting normal claims years

1) Assuming annual run-off gains ~NOK 1 billion through 2022. Corresponds to 90-93 per cent given zero run-off gains post 2022.

2) Assuming sale of Gjensidige Bank

3) Corresponds to >16 per cent given zero run-off gains post 2022

4) Excluding run-off

Customer targets 2022 Annual financial targets 2019 - 2022

Ambitions	Target 2019-2022
Combined ratio	86-89%1)
Cost ratio	<15%
Solvency margin (PIM)	2) 135-200%
ROE after tax	>20%1)-3)
UW result outside Norway	NOK 750m4) (in 2022)
Dividends	Nominal high and stable 2) (and >80 % over time)

Excellence in our core operations is our first priority

Retain strong and unique position in Norway

Strengthen profitability and growth outside Norway

Maintain capital discipline and attractive dividends

Digital customer experiences

Business intelligence and analytics

Dynamic organisational capabilities

Attractive value proposition

• Proven track-record
• Strong position in attractive market place
• Scalable hard-to-copy business model and loyal customers
• Efficient capital structure and good financial flexibility
• Attractive dividend policy

Investor relations

Mitra Hagen Negård Head of Investor Relations Mitra-Hagen.Negard@gjensidige.no Mobile: +47 95 79 36 31

Live Christine Bjønness Investor relations officer Live-Christine.Bjonness@gjensidige.no Mobile: +47 48 21 16 61

Address: Schweigaards gate 21, PO Box 700 Sentrum, 0106 Oslo, Norway www.gjensidige.no/ir