Higher insurance service result driven by revenue growth

22 Oct 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.

The third quarter showed continued strong revenue growth as well as high claims
levels for property and private motor insurance in Norway. Targeted measures
will gradually improve the underlying profitability. Results from the investment
portfolios and the pension business contributed to an annualised return on
equity of 23.5 per cent. Due to the insurance service result year-to-date, the
Group does not expect to deliver on the combined ratio target for 2024. All the
financial targets for 2025 and 2026 are maintained.

Highlights Third quarter Year-to-date
2024 2023 2024 2023
Group
Profit or loss before NOK million 2,214.6 1,115.0 5,095.2 3,929.7
tax
Earnings per share NOK 3.32 1.63 7.63 5.93
General Insurance
Insurance revenue NOK million 9,888.8 8,853.1 28,340.5 25,588.9
Insurance service NOK million 1,590.0 1,111.6 3,716.7 3,735.4
result
Combined ratio Per cent 83.9% 87.4% 86.9% 85.4%
Cost ratio Per cent 11.8% 16.6% 12.3% 14.1%
Financial result NOK million 1,306.5 114.5 2,250.5 689.3
Solvency ratio, Per cent 164% 185%
approved Partial
Internal Model

-Claims cost in Norway continues to increase, both within property and motor
insurance. It is encouraging to see that we manage to deliver solid revenue
growth and that our customer loyalty remains high, says CEO Geir Holmgren.

General insurance

Insurance revenue increased by 11.7 per cent to NOK 9,888.8 million (8,853.1) in
the quarter, or by 10.6 per cent measured in local currency. This was mainly
driven by effective and differentiated pricing measures and solid renewals.

The insurance service result increased by 43.0 per cent. The increase was driven
by a lower cost ratio and higher insurance revenue. Operating expenses in the
third quarter 2023 were significantly impacted by one-off expenses of NOK 409.0
million.

The loss ratio in the third quarter 2024 increased by 1.3 percentage points,
reflecting a higher underlying frequency loss ratio, lower run-off gains, a
change in risk adjustment and a lower discounting effect. Large losses were
lower than the same quarter last year. For comparison, the Group recognised
weather-related claims costs of NOK 558.1 million in the third quarter last
year, of which NOK 35.0 million as frequency losses. Adjusted for this the
underlying frequency loss ratio increased by 2.3 percentage points. The
deterioration was primarily driven by private and commercial property and
accident and health insurance in Norway and private motor insurance in Norway
and Denmark.

Pension

The pension segment recorded a profit before tax expense of NOK 123.8 million
(3.9), driven by an increase in net finance income and increased income from the
unit linked business.

Financial result

The financial result for the quarter was NOK 1,306.5 million (114.5), which
corresponds to a return on total assets of 2.1 per cent (0.2). The result for
the quarter was positively impacted by high running yields, falling interest
rates, lower credit spreads and positive equity markets.

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, 22 October 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.

More information:
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630031_Interim_report_Q3_2024.pdf
630031_Interim_presentation_Q3_2024.pdf