Gjensidige Forsikring ASA

Investor Presentation • Apr 22, 2020

Gjensidige Forsikring Group

1st quarter 2020 results 22 April 2020

Solid underwriting result offset by effects from financial market turmoil

• Pre-tax loss NOK 497m
• Underwriting result NOK 1,058m
  • Limited Covid-19 impact
  • 10.7% premium growth
  • Good underlying frequency loss ratio
  • Lower large losses and somewhat higher run-off gains than expected
  • Good cost control
• Financial result minus NOK1,519m, return minus 2.5%
  • Significant impact from financial turmoil

Combined ratio

Dividend proposal withdrawn in response to regulatory stance

• Dividend proposal withdrawn despite strong capital position
  • Compliance with regulatory stance
  • Board intends to distribute dividends to shareholders as soon as the situation will allow for it
• AGM to be held on 25 May
  • Attendance via webcast only

Dividend policy unchanged

Gjensidige targets high and stable nominal dividends to its shareholders, and a pay-out ratio over time of at least 80 per cent of profit after tax. 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.

Special

Supporting our society during these difficult times

• Active and tailored advice, rapid claims settlement
• Product offerings to simplify everyday lives
  • Online doctor and vet services
• Caring for the vulnerable
  • Psychosocial helpline in cooperation with SOS International
  • Project to support mental health challenges

Solid operations

• Effective contingency plans put in action in response to C-19 situation
  • Maintaining good customer services
  • All critical business functions operating well
• Continued superior position in Norway
  • Effective pricing measures and strong renewals
• Progress outside Norway
  • Strong renewals
  • Continued focus on enhanced efficiency

High customer retention in Norway

Financial performance

Financial performance

Solid underwriting result driven by strong growth and good claims development

NOK m	Q1 2020	Q1 2019	2019	2018
Private	520	395	2 025	1 935
Commercial	494	333	1 730	1 548
Denmark	176	103	599	434
Sweden	21	22	76	78
Baltics	5	6	61	68
Corporate Centre - costs related to owner	(105)	(79)	(318)	(379)
Corporate Centre - reinsurance	(53)	19	(137)	(79)
Underwriting result	1 058	798	4 036	3 606
Pension	36	53	197	167
Financial result from the investment portfolio	(1 519)	682	2 306	8 21
Amortisation and impairment losses of excess value	(52)	(62)	(256)	(265)
Other items	(19)	1 559	1 471	(64)
Profit/(loss) before tax expenses	(497)	3 031	7 754	4 265

10.7 per cent premium growth

NOK m

Premium development Key drivers – premium development

• Private +6.9%
  • Price driven
• Commercial +8.9%
  • Price and volume driven
• Denmark +20.7%
  • Positive 12.5% in local currency, price and volume driven
• Sweden +6.7%
  • Positive 1.7% in local currency, price driven
• Baltics +11.2%
  • Positive 3.5% in local currency, volume driven

Solid loss ratio at 68.9 per cent

Loss ratio development Key drivers

• Increased premiums
• Improved underlying frequency loss ratio
• Lower run-off gains and higher large losses

Continued good cost control – cost ratio 15.0 per cent

NOK m

882	30	13	38	(5)	5	26	989
9 01 Q1 2	ate v Pri	al erci m m o C	ark m en D	en wed S	cs alti B	C C	0 2 0 Q1 2

Cost development Key drivers – cost development

• Strong cost discipline across the Group
• Cost ratio 14.3 per cent excluding Baltics

Lower profit for Pension operation

Profit and return Assets under management

Investment return of minus 2.5 per cent, reflecting market turmoil

Investment return per asset class Portfolio mix as at 31.3.2020

Financial performance

Very solid solvency position

Solvency margin misc. assumptions

• Dividend withdrawal in response to regulatory stance
• Solvency margin well above target range
• Board intends to distribute dividends to shareholders as soon as the situation will allow for it

Strong capital position – continued capital discipline

• Solid capitalisation adjusted for proposed dividend
  • FSA approved partial internal model 269%
  • Own partial internal model 331% 2)
• Capital buffers well within risk appetite
• Gjensidige Pensjonsforsikring's solvency margin 152%

Moving ahead on operational targets

Metric	Status Q1 2020	Target 2022
Customer satisfaction (CSI)	78	> 78, Group
Customer retention	91%	> 90%, Norway
	80%	> 85%, outside Norway
Sales effectiveness	+8.3%	+ 10%, Group
Automated tariffs	45%	100%, Group
Digital claims reporting	78%	80%, Norway
Claims straight-through processing	18%	64%, Norway
Claims cost	NOK 244 million	Reduce by NOK 500 million, Group
Claims related CO -intensity 2	1.7 1)	Reduce year by year, Group

• Focus on digital customer interactions
• Simplification is key to enhanced efficiency
• Process optimisation and automation necessary to secure sufficient agility
• Top ranking in financial sector by Sustainable Brand Index

Financial performance

Concluding remarks

• Strong operational response to C-19 situation
• Limited C-19 impact on underwriting result
• Solid financial and operational platform
• Strong competitiveness
• Maintaining financial targets and dividend policy
  • ROE target not expected to be achieved for 2020

Annual financial targets through 2022

Metric	Target
Combined ratio	86-89%1)
Cost ratio	<15%
Solvency margin (PIM)	150-200%
ROE after tax	2) >20%
UW result outside Norway	NOK 750m 3) (in 2022)
Dividends	Nominal high and stable (and >80% over time)

Appendix

Roadshows and conferences post Q1 2020 results

Date	Location	Participants	Event	Arranged by
22 April	Oslo	CEO Helge Leiro Baastad CFO Jostein Amdal IR	Roadshow (tel. meetings)	ABGSC
23 April	London	CEO Helge Leiro Baastad CFO Jostein Amdal IR	Roadshow (tel. meetings)	DNB
4 May	Zürich/Geneva	CEO Helge Leiro Baastad IR	Roadshow (tel. meetings)	Danske
6 May	Frankfurt	CFO Jostein Amdal IR	Roadshow (tel. meetings)	Nordea
11 May	Stockholm	CFO Jostein Amdal IR	Roadshow (tel. meetings)	Carnegie
13 May	London	CEO Helge Leiro Baastad IR	Conference (tel. meetings)	KBW
16 June	Milano/Lugano	EVP Communication and Shared Services Janne Flessum IR	Roadshow (tel. meetings)	Barclays
9 June	Paris	CEO Helge Leiro Baastad IR	Conference (tel. meetings)	Exane BNP
10 June	Rome	CEO Helge Leiro Baastad IR	Conference (tel. meetings)	Goldman Sachs

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General insurance – cost ratio and loss ratio per segment

Private Commercial

General insurance – cost ratio and loss ratio per segment

Effect of discounting of claims provisions

Effect of discounting on CR – Q1 2020 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

Appendix

Large losses 3.0 percentage points – lower than expected

^{304 313} 83 195 Q1 2019 Q1 2020 Expected Reported

Large losses – reported vs. expected Large losses per segment

NOK m NOK m

²² CC = corporate centre. Large losses: Losses > NOK 10m. Weather related large losses are included. Large losses in excess of NOK 30m 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.

Appendix

Large losses development

~ NOK 1.25bn in large losses expected annually Large losses per segment – actual vs. expected

Run-off gains 4.2 percentage points – higher than expected

Run-off net Run-off net per segment

Q1 2019 Q1 2020

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

Q1 Q2 Q3 Q4

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 NOK 700m. Adjusted for a non-recurring NOK 44m increase in provision for restructuring cost and NOK 23m 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 653m.

5) Reported UW result for Q4 2018 was NOK 1,914m. Adjusted for the extra run-off gains of NOK 1.1bn the UW result was NOK 834m .

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

Match 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 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	Mortage, sovereign and corporate bonds, investment grade bond funds and loan funds containing secured debt	IBOX COR 1-3 years 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

1) See quarterly report for a more detailed description 28

Asset allocation – as at 31.3.2020

Match portfolio Free portfolio

• Carrying amount: NOK 36.1bn
• Average duration: 3.5 years

Money market Bonds at amortised cost Current bonds

• Carrying amount: NOK 25.7bn
• Average duration fixed-income instruments: 4.3 years

Money market Other bonds High Yield Convertible bonds Current equities PE-funds Property Other

Contribution from the portfolios

58% 42%

Asset allocation as at 31.3.2020 Quarterly investment returns

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	13.9	38.3	2.9	17.1
AA	4.4	12.0	6.2	36.4
A	5.0	13.8	4.8	28.5
BBB	4.1	11.2	0.9	5.1
BB	0.3	0.7	0.2	1.1
B	0.9	2.6	0.1	0.6
CCC or lower	0.0	0.0	0.0	0.2
Internal rating1)	5.0	13.7	1.2	7.2
Unrated	2.8	7.7	0.6	3.8
Fixed income portfolio	36.4	100.0	16.9
Split - Counterparty	Match portfolio			Free portfolio
	NOK bn	%	NOK bn	%
Public sector	5.0	13.6	5.7	33.8
Bank/financial institutions	19.5	53.6	9.7	57.2
Corporates	11.9	32.8	1.5	9.0
Total	36.4	100.0	16.9	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)1)	Own partial internal model (general 1) insurance)	Gjensidige Pensjons forsikring
Capital available	26.8	24.8	26.9	25.0	2.3
Capital requirement	9.9	9.0	8.1	7.1	1.5
Solvency margin	269%	277%	331%	351%	152%

Solvency II eligible own funds

Bridging the gap between IFRS equity and Solvency II capital

NOK bn

³⁴ Figures as at 31.3.2020. 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)1)
Eligible own funds	26.8	26.9
Capital charge for non-life and health uw risk	8.2	6.8
Capital charge for life uw risk	1.7	1.7
Capital charge for market risk	6.2	5.3
Capital charge for counterparty risk	0.7	0.7
Diversification	(4.7)	(4.8)
Basic SCR	12.1	9.7
Operational risk	0.9	0.9
Adjustments (loss-absorbing capacity of deferred tax)	(3.1)	(2.5)
Total solvency capital requirement	9.9	8.1
Surplus	16.8	18.8
Solvency ratio	269%	331%

Scope regulatory approved PIM

Solvency II sensitivities for the approved partial internal model

Appendix

Subordinated debt 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

Principles for capacity Capacity and utilisation

• Tier 1 remaining capacity is NOK 3.5-4.4bn
  • 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 3.4bn

³⁷ Figures as at 31.3.2020. 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 minus 7.7 per cent

Equity (NOK m) Annualised return on equity (%)

Market leader in Norway

Market share –Total market Market share – Commercial Market share – Private

13.4%

5.4%

3.3%

25.2%

29.2%

Growth opportunities outside Norway

⁴¹ Sources: Insurance Sweden, 4th quarter 2019 (Gjensidige including Vardia), The Danish Insurance Association 1st quarter 2019. Baltics Insurance Supervisory Authorities of Latvia and Lithuania, Estonia Statistics, competitor reports, and manual calculations, 4th quarter 2019

Ownership

No	Shareholder	Stake (%)
1	Gjensidigestiftelsen	62.2
2	Folketrygdfondet	4.1
3	Deutsche Bank	3.7
4	Caisse de Depot et Placement du Quebec	3.0
5	BlackRock Inc	2.8
6	Nordea	1.3
7	ORIX Corporation	1.1
8	The Vanguard Group, Inc	1.1
9	State Street Corporation	1.0
10	Danske Bank	1.0
	Total 10 largest	81.4

10 largest shareholders 1) Geographical distribution of shares 2)

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

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 31 March 2020. 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).

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 95 79 36 31

Kjetil Gill Østvold

Investor relations officer Kjetil-gill.ostvold@gjensidige.no Mobile: +47 46 86 30 04

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

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