Second quarter 2024 result s impacted by higher claims in Norway

15 Jul 2024 07:00 CEST

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.

Higher claims for motor and property insurance in Norway had a negative impact
on the insurance service result. Adverse development in claims in the first
quarter 2024 also contributed to the deterioration of the underlying frequency
loss ratio in the second quarter. Ongoing pricing measures have been further
strengthened to improve profitability. The insurance service result was
positively impacted by changes in the risk adjustment. Delivery on the combined
ratio target for 2024 will be challenged by the results for the first half of
2024.

Highlights Second quarter Year-to-date
2024 2023 2024 2023
Group
Profit or loss before NOK million 1,830.5 1,333.9 2,906.7 2,825.3
tax
Earnings per share NOK 2.72 2.04 4.31 4.30
General Insurance
Insurance revenue NOK million 9,831.7 8,959.5 19,305.6 17,491.3
Insurance service NOK million 1,433.6 1,508.6 2,137.7 2,623.4
result
Combined ratio Per cent 85.4 83.2 88.9 85.0
Cost ratio Per cent 13.2 13.6 13.3 13.5
Financial result NOK million 514.2 -199.3 961.8 594.8
Solvency ratio, Per cent 169.8 179.8 169.8 179.8
approved Partial
Internal Model

Development during the quarter

-The second quarter results were significantly impacted by higher claims in
Norway, but we continue to have a very strong growth momentum, and our capital
position is solid, says CEO Geir Holmgren.

-We are fully committed to improve profitability. The increase in claims is
being met with significant and targeted pricing measures. We will improve the
combined ratio for the Group and the underlying frequency loss ratio for Private
and Commercial over time, and we maintain all the financial targets for 2025 and
2026, Holmgren says.

General insurance

Insurance revenue increased by 9.7 per cent to NOK 9,831.7 million in the
quarter, or by 10.0 per cent measured in local currency. This was mainly driven
by effective and differentiated pricing measures and solid renewals.

The insurance service result decreased by 5.0 per cent, reflecting 2.7
percentage points increase in the loss ratio. A change of the risk adjustment,
and a higher discounting effect contributed positively to the loss ratio. The
underlying frequency loss ratio rose 5.6 percentage points primarily driven by
higher claims frequency and claims severity for motor and property insurance in
Norway. Adverse development in claims in the first quarter 2024 for Private and
Commercial in Norway also contributed with approximately 2 percentage points to
the deterioration of the underlying frequency loss ratio in this quarter.

Ongoing pricing measures have been further strengthened to improve
profitability.

The cost ratio improved by 0.4 percentage points mainly due to efficiency
measures and growth in insurance revenue.

Pension

The pension segment recorded a profit before tax expense of NOK 185.9 million,
mainly driven by a higher net finance income.

Financial result

The financial result for the quarter was NOK 514.2 million, which corresponds to
a return on total assets of 0.8 per cent. The result for the quarter was
positively impacted by high running yields and positive equity markets. Higher
interest rates had a negative impact on the result.

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, 15 July 2024

Contact persons
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 4,500 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 36 billion in 2023, while total
assets were NOK 148 billion.

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623612_Interim_presentation_Q2_2024.pdf
623612_Interim_report_Q2_2024.pdf