Gjensidige Forsikring ASA

Investor Presentation • Apr 25, 2019

Gjensidige Forsikring Group

1 st quarter 2019 results

25 April 2019

A solid first quarter result

• Pre-tax profit NOK 3,031m
  • Including gains of NOK 1.6bn from sale of Gjensidige Bank
• Underwriting result NOK 798m
  • 1.2% premium growth
  • More normal winter than in Q118
  • Low large losses
  • Good cost control
• Financial result NOK 682m, return 1.2%
• Return on equity 49.6%, 21.6% excluding gain on sale of Gjensidige Bank

Combined ratio

Pre-tax profit

This presentation contains alternative performance measures (APMs). APMs are described on www.gjensidige.no/reporting in document named APMs Gjensidige Forsikring Group Q1 2019.

Operational highlights - focus on improved profitability

• Reached turning point for profitability for Motor Norway
  • Expect improved profitability from Q2 2019
• High quality portfolio in Commercial segment
  • Significant price increases and solid renewals
• Continued efforts to increase profits outside Norway
  • Portfolio repricing, cost efficiency measures and growth

Keeping the best customers

High customer retention in Norway

Sale of Gjensidige Bank completed

• Enhanced focus on core operations
• Increased financial flexibility
  • Sales proceeds NOK 5.6 billion
  • Group gain NOK 1.6 billion
• Strategic distribution partnership with Nordea
  • Broad customer base
  • Presence in key customer processes
  • Wide product range and holistic customer approach
  • Digital customer solutions
  • Strong collaboration through referrals and selected co-locations

Moving ahead on operational targets

• Focus on digital customer interactions
• Simplification is key to enhanced efficiency
• Process optimisation and automation are necessary to secure sufficient agility
• Ranked no. one sustainable brand in the Norwegian financial sector1)

Metric	Status	Target 2022
Customer satisfaction (CSI)	78.1	> 78, Group
Customer retention	90.5%	> 90%, Norway
	78.3%	> 85%, outside of Norway
Sales effectiveness	1.6%	+ 10%, Group
Automated tariffs	2.7%	100%, Group
Digital claims reporting	64%	80%, Norway
Claims straight through processing	13.9%	64%, Norway
Claims cost	Annual reporting	Reduce by NOK 500 million, Group
Claims related CO2-intensity	Annual reporting	Reduce year by year, Group

Financial performance

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Strong improvement in Norway, progress according to plan outside Norway

NOK m	Q1 2019	Q1 2018	FY 2018	FY 2017
Private	395	344	1 935	2 200
Commercial	333	69	1 548	1 635
Denmark	103	85	434	284
Sweden	22	10	78	(92)
Baltics	6	9	68	(7)
Corporate Centre/costs related to owner	(79)	(83)	(379)	(272)
Corporate Centre/reinsurance	19	(23)	(79)	(338)
Underwriting result	798	411	3 606	3 410
Pension	53	32	167	104
Financial result from the investment portfolio	682	255	821	2 003
Amortisation and impairment losses of excess value	(62)	(71)	(265)	(261)
Other items	1 559	(22)	(64)	(38)
Profit/(loss) before tax expenses	3 031	605	4 265	5 217

1.2 per cent premium growth

Premium development Key drivers - premium development

• Private +1.3%
  • Price driven
• Commercial +8.6%
  • Price driven
• Denmark -3.0%
  • Negative 3.9% in local currency, impacted by price increases and re-underwriting for commercial and selected private lines
• Sweden -17.7%
  • Negative 15.0% in local currency following repricing measures, mainly in private lines
• Baltics 1.5%
  • 0.4% in local currency

Improved loss ratio mainly due to better weather conditions in Norway

7527.4 % 7491.3 % 7170.3 % 2.4 0.4 3.2 77.7 71.7 Q1 2018 Change in large losses (pp) Change in run off (pp) Change in underlying frequency loss ratio (pp) Q1 2019 Loss ratio (%)

Loss ratio development Key drivers

• Lower underlying frequency loss ratio
  • More favourable weather conditions in Norway
• Lower large losses

Continued good cost control - cost ratio 14.9 per cent

Cost development Key drivers – cost development

• Strong cost discipline across the group
• Cost ratio 14.1 per cent excluding Baltics

Solid profit and increased assets under management for Pension operations

Profit and return Assets under management

Investment return of 1.2 per cent, reflecting strong financial markets

Investment return, free portfolio

Q1 2019	%
Fixed income	1.5
Current equities	7.6
PE funds	3.6
Property	1.0
Total free portfolio	2.1

Investment return Portfolio mix as at 31.03.2019

Strong capital position - continued capital discipline

Solvency margin: 9.9 8.4 14.7 16.3 0 5 10 15 20 25 30 Approved partial internal model (Group) Own partial internal model (Group) NOK bn Capital requirement Capital > Capital requirement 248% 295%

Strong capital position

• Solvency ratios reflect completion of sale of Gjensidige Bank during the quarter
• Capital buffers well within risk appetite
• All FSA required changes are implemented in the approved partial internal model

Figures as at 31.03.2019. Solvency margins reflect best estimate reserves. Total comprehensive income for the year-to-date is included in the solvency calculations, minus a formulaic dividend pay-out ratio of 80 per cent of net profit (excluding the gain from Gjensidige Bank).

Concluding remarks

• Solid first quarter result
• Implemented significant price increases in Norway
  • Motor Norway reached turning point expect improved profitability from Q2 2019
  • Focus on retaining strong and unique position in Norway
• Pursuing strengthened profitability and growth outside Norway
• Strong capital position, exploring M&A opportunities

Annual financial targets 2019-2022

Metric	Target
Combined ratio	86-89%1)
Cost ratio	<15%
Solvency margin (PIM)	135-200% 2)
ROE after tax	>20%1)-2)
UW result outside Norway	NOK 750m 3) (in 2022)
Dividends	Nominal high and stable (and >80 % 2) 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) Corresponds to >16 per cent given zero run-off gains post 2022

Appendix

Roadshows and conferences post Q1 2019 results

Date	Location	Participants	Event	Arranged by
25 April	Oslo	CEO Helge Leiro Baastad CFO Jostein Amdal Head of IR Mitra H. Negård	Roadshow	Arctic
29 April	Stockholm	CFO Jostein Amdal IRO Live Bjønness	Roadshow	Pareto
2 May	Geneva	CEO Helge Leiro Baastad Head of IR Mitra H. Negård	Roadshow	Danske Bank
3 May	Zurich	CEO Helge Leiro Baastad Head of IR Mitra H. Negård	Roadshow	Danske Bank
7 May	Milano	EVP Janne Flessum Head of IR Mitra H. Negård	Roadshow	Barclays
15 May	London	CFO Jostein Amdal EVP Lars Gøran Bjerklund Head of IR Mitra H. Negård	Conference	KBW
28 May	Frankfurt	EVP Sigurd Austin Head of IR Mitra H. Negård	Roadshow	Nordea

Large losses 1.4 percentage points - lower than expected

NOK m NOK m 295 300 225 83 Q1 2018 Q1 2019 Expected Reported 28 118 0 10 0 8 75 0 0 0 0 Q1 2018 Q1 2019

Large losses – reported vs expected Large losses per segment

CC = corporate centre. Large losses: Losses > NOK 10m. Weather related large losses are included. Large losses in excess of NOK 30.0m are charged to the Corporate Centre while up to NOK 30m per claim is charged to the segment in which the large loss occurred. The Baltics segment has, as a main rule, a retention level of EUR 0.5m. The Sweden segment has a retention level of NOK 10m.

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Run-off gains 6.2 percentage points - higher than expected

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Run-off net Run-off net per segment NOK m NOK m 250 250 340 366 Q1 2018 Q1 2019 Expected Reported

General insurance – cost ratio and loss ratio per segment

General insurance – cost ratio and loss ratio per segment (cont'd)

Baltics

Effect of discounting of claims provisions

Assuming Solvency II regime

Effect of discounting on CR – Q1 2019 Assumptions

• Only claims provisions are discounted (i.e. premium provisions are undiscounted)
• Swap rates in Norway, Sweden and Denmark
• Euroswap rates in the Baltic countries

Large losses development

~ NOK 1.2bn in large losses1) expected annually

Large losses per segment – actual vs expected

Run-off development

Expected average annual run-off gains of ~4 pp (~NOK 1bn) through 2022

Run-off % of earned premium

Quarterly underwriting results Seasonality in Nordic general insurance

1) Reported UW result for Q1 2016 was NOK 1,251m. Adjusted for a non-recurring income of NOK 477m related to the pension plans, the UW result was NOK 774m.

2) Reported UW result for Q3 2016 was NOK 712m. Adjusted for a non-recurring NOK 120m restructuring cost the UW result was NOK 832m.

3) Reported UW result for Q4 2016 was NOK700m. Adjusted for a non-recurring NOK 44m increase in provision for restructuring cost and NOK23m provision for increased pay-roll tac the UW result was NOK 767m

4) Reported UW result for Q3 2018 was NOK 573m. Adjusted for a non-recurring NOK 80m restructuring cost the UW result was NOK 653.

5) Reported UW result for Q4 2018 was NOK 1914. Adjusted for the extra run-off gains of NOK 1.1bn .

Investment strategy supporting high and stable nominal dividends

• Match portfolio

• Duration and currency matching versus technical provisions (undiscounted)
• Credit element for increased returns
• Some inflation hedging

• Free portfolio

• Compounding and focused on absolute returns
• Dynamic risk management
• Tactical allocation
• Active management fixed income and equities
• Normal risk premiums basis for asset allocation and use of capital

Key characteristics

• Limited risk appetite
• Currency hedging vs NOK ~ 100%
  • Limit +/- 10% per currency
• Marked-to-market recognition
  • Except bonds at amortised cost
• Stable performance

Investment portfolio - asset classes and relevant benchmarks

Asset class	Investments, key elements1)	Benchmark
Match portfolio
Money market	Norwegian money market	ST1X index
Bonds at amortised cost	Government and corporate bonds	Yield provided in quarterly reports
Current bonds	Mortgage, sovereign and corporate bonds, investment grade bond funds and loan funds containing secured debt	IBOX COR 1-3 yrs QW5C index
Free portfolio
Money market	Norwegian money market	ST1X index
Other bonds	IG bonds in internationally diversified funds externally managed and current bonds	Global Agg Corp LGCPTRUH index
High Yield bonds	Internationally diversified funds externally managed	BOAML global HY HWIC index
Convertible bonds	Internationally diversified funds externally managed	BOAML global 300 conv VG00 index / Exogen factors
Current equities	Mainly internationally and domestic diversified funds externally managed	MSCIAC NDUEACWF index
PE funds	Oil/ oil-service/ general (Norwegian and Nordic funds)	OSEBX index / oil price
Property	50% of Oslo Areal	IPD index Norway / Exogen factors
Other	Miscellaneous

Asset allocation As at 31.03.2019

Match portfolio Free portfolio

• Carrying amount: NOK 33.8bn
• Average duration: 3.2 years

Money market Bonds at amortised cost Current bonds

• Carrying amount: NOK 26.1bn
• Average duration fixed-income instruments: 2.6 years

Property Other

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Contribution from the match portfolio

Asset allocation as at 31.03.2019 Quarterly investment returns

Match portfolio Free portfolio

Balanced geographical exposure

Match portfolio Free portfolio, fixed-income instruments

Credit and counterparty risk

• The portfolio consists mainly of securities in rated companies with high creditworthiness (Investment grade)
• Issuers with no official rating are mainly Norwegian savings banks, municipalities, credit institutions and power producers and distributors

Credit exposure Total fixed income portfolio

Split - Rating	Match portfolio		Free portfolio
	NOK bn	%	NOK bn	%
AAA	11.3	33.3	3.4	20.5
AA	2.7	7.9	4.9	29.5
A	5.3	15.7	3.4	20.7
BBB	4.1	12.2	1.3	8.0
BB	0.2	0.7	0.7	4.4
B	1.5	4.4	0.5	3.2
CCC or lower	0.0	0.1	0.1	0.5
Internal rating1)	5.6	16.4	1.4	8.5
Unrated	3.2	9.4	0.8	4.8
Fixed income portfolio	33.9	100.0	16.5	100.0

Split - Counterparty	Match portfolio		Free portfolio
	NOK bn	%	NOK bn	%
Public sector	4.6	13.5	6.2	37.3
Bank/financial institutions	16.2	47.8	7.5	45.7
Corporates	13.1	38.7	2.8	17.0
Total	33.9	100.0	16.5	100.0

Capital position per operational areas

(NOK bn)	Approved partial internal model (Group)	Approved partial internal model (general insurance)	Own partial internal model (Group)	Own partial internal model (general insurance)	Gjensidige Pensjons forsikring
Capital available	24.6	22.1	24.7	22.1	2.5
Capital requirement	9.9	8.7	8.4	7.1	1.8
Solvency margin	248%	254%	295%	310%	138%

Figures as at 31.3.2019. The legal perspective is the regulatory approved version of the partial internal model. Solvency margins reflect best estimate reserves. Total comprehensive income for the year-to-date is included in the solvency calculations, minus a formulaic dividend pay-out ratio of 80 per cent of net profit (excluding the gain from Gjensidige Bank).

Solvency II economic capital available

Bridging the gap between IFRS equity and Solvency II capital

Figures as at 31.3.2019. GPF = Gjensidige Pensjonsforsikring. Deferred tax: All differences in valuation of assets and liabilities are adjusted for tax. Tax is assumed on the security provision. Miscellanious: Main effects are related to the guarantee scheme provision and different valuation of Oslo Areal.

Solvency II capital requirements

NOK bn	Approved partial internal model (Group)	Own partial internal model (Group)
Eligible own funds	24.6	24.7
Capital charge for non-life and health uw risk	7.1	6.1
Capital charge for life uw risk	1.8	1.8
Capital charge for market risk	7.2	6.3
Capital charge for counterparty risk	0.6	0.6
Diversification	(4.6)	(4.8)
Basic SCR	12.0	10.0
Operational risk	0.8	0.8
Adjustments (risk-reducing effect of deferred tax)	(2.9)	(2.5)
Gjensidige Bank	0	0
Total solvency capital requirement	9.9	8.4
Surplus	14.7	16.3
Solvency ratio	248%	295%

Scope regulatory approved PIM

Solvency II sensitivities for the approved partial internal model

Figures as at 31.3.2019. The legal perspective is the regulatory approved version of the partial internal model. Solvency margins reflect best estimate reserves. Total comprehensive income for the year-to-date is included in the solvency calculations, minus a formulaic dividend pay-out ratio of 80 per cent of net profit (excluding the gain from Gjensidige Bank). UFR-sensitivity is very limited.

Subordinated debt capacity

Principles for capacity

	Intermediate Equity Content		Constraint
S&P	25% of TAC		For the general insurance group, both Solvency II Tier 1 and Tier 2 instruments are classified as Intermediate Equity Content. Capital must be regulatory eligible in order to be included.
	T1	T2	Constraint
SII	Max 20% of Tier 1 capital	Max 50% of SCR less other T2 capital items	Must be satisfied at group and solo level

Capacity and utilisation

• Tier 1 remaining capacity is NOK 2.8-3.7bn
  • Utilised Tier 1 debt capacity: NOK 1.0bn
• Tier 2 capacity is fully utilised for the insurance group
  • Utilised sub debt: NOK 1.5bn1)
  • Utilised natural perils fund and guarantee scheme: NOK 3.2bn

Figures as at 31.3.2019. Legal perspective is the regulatory approved version of the partial internal model. The FSA's view on the Guarantee provision as a liability for solvency purposes has not been reflected in the debt capacity figures, as Gjensidige still assumes that the Guarantee provision will count as solvency capital. 1)Sub debt Gjensidige Forsikring ASA NOK 1.2bn, Gjensidige Pensjonsforsikring NOK 0.3bn

Reduced Solvency II regulatory uncertainty

Element	Solvency surplus effect (NOK bn)	Comment
Guarantee scheme provision	~ (0.1) – 0.5	Increase in provision suggested, no news regarding treatment in Solvency II

Annualised return on equity 49.6 per cent

Equity (NOK m) Return on equity (%)

Market leader in Norway

Market share – Total market

Growth opportunities outside Norway

• Market shares Denmark • Market shares Sweden

• Gjensidige Tryg Topdanmark Alm. Brand
• Codan
• If
• Other

• Market shares Baltics

- Gjensidige PZU Vienna Ergo

• Other

1) Shareholder list based on analysis performed by Orient Capital Ltd of the register of shareholders in the Norwegian Central Securities Depository (VPS) as per 29 March 2019. This analysis provides a survey of the shareholders who are behind the nominee accounts. There is no guarantee that the list is complete. 2) Distribution of shares excluding share held by the Gjensidige Foundation (Gjensidigestiftelsen).

No	Shareholder	Stake (%)
1	Gjensidigestiftelsen	62.2
2	Folketrygdfondet	4.4
3	Deutsche Bank	3.6
4	Caisse de Depot et Placement du Quebec	3.3
5	BlackRock Inc	2.6
6	Danske Bank	1.2
7	Nordea	1.0
8	Svenska Handelsbanken Group	0.8
9	State Street Corporation	0.8
10	The Vanguard Group, Inc	0.8
	Total 10 largest	80.6

10 largest shareholders1) Geographical distribution of shares²)

Gjensidige Foundation ownership policy:

• Long term target holding: >60%
• Can accept reduced ownership ratio in case of acquisitions and capital issues when in accordance with Gjensidige's overall strategy

Disclaimer

This presentation and the information contained herein have been prepared by and is the sole responsibility of Gjensidige Forsikring ASA (the "Company"). Such information is being provided to you solely for your information and may not be reproduced, retransmitted, further distributed to any other person or published, in whole or in part, for any purpose. Failure to comply with this restriction may constitute a violation of applicable securities laws. The information and opinions presented herein are based on general information gathered at the time of writing and are therefore subject to change without notice. The Company assumes no obligations to update or correct any of the information set out herein.

These materials may contain statements about future events and expectations that are forward-looking statements. Any statement in these materials that is not a statement of historical fact including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

This presentation does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. The information in this presentation is subject to verification, completion and change. The contents of this presentation have not been independently verified. While the Company relies on information obtained from sources believed to be reliable, it does not guarantee its accuracy or completeness. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its owners, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. None of the Company, its affiliates or any of their respective advisors or representatives or any other person shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. The Company's securities have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act"), and are offered and sold only outside the United States in accordance with an exemption from registration provided by Regulation S of the US Securities Act.

This presentation should not form the basis of any investment decision. Investors and prospective investors in securities of any issuer mentioned herein are required to make their own independent investigation and appraisal of the business and financial condition of such company and the nature of the securities. Any decision to purchase securities in the context of a proposed offering of securities, if any, should be made solely on the basis of information contained in any offering documents published in relation to such an offering. For further information about the Company, reference is made public disclosures made by the Company, such as filings made with the Oslo Stock Exchange, periodic reports and other materials available on the Company's web pages.

Gjensidige Forsikring provides alternative performance measures (APMs) in the financial reports, in addition to the financial figures prepared in accordance with the International Financial Reporting Standards (IFRS). The measures are not defined in IFRS (Internation Financial Report Standards) and are not necessarily directly comparable to other companies' performance measures. The APMs are not intended to be a substitute for, or superior to, any IFRS measures of performance, but have been included to provide insight into Gjensidige's performance and represent important measures for how management governs the Group and its business activities. Key figures that are regulated by IFRS or other legislation, as well as non-financial information, are not regarded as APMs. Gjensidige's APMs are presented in the quarterly report and presentation. All APMs are presented with comparable figures for earlier periods. The APMs have generally been used consistently over time. Definitions and calclualtions can be foundat www.gjensidige.no/reporting.

Notes

Notes

Investor Relations

Mitra Hagen Negård Head of Investor Relations Mitra-Hagen.Negard@gjensidige.no Mobile: +47 957 936 31

Live Christine Bjønness Investor relations officer Live-Christine.Bjonness@gjensidige.no Mobile: +47 482 116 61

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

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