Higher profits in 2024, driven by significant improvement in the insurance service result

24 Jan 2025 07:00 CET

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.

Gjensidige generated a profit after tax of NOK 1,203 million during the fourth
quarter and NOK 5,181 million for the full year, reflecting continued strong
revenue growth and an improved combined ratio, which together with the results
from the investment portfolios and Pension contributed to a return on equity of
22.7 per cent. Gjensidige delivered on the annual financial targets except the
combined ratio. The Group will continue to implement targeted measures to
improve profitability and deliver on the financial targets for 2025 and 2026.
The Group's capital position is strong. The Board proposes a total dividend of
NOK 10.00 per share, consisting of a regular dividend of NOK 9.00 per share and
a special dividend of NOK 1.00 per share.

-Our strong growth momentum is very encouraging, and we are very pleased to see
that our strong efforts have resulted in improved profitability in the fourth
quarter, says CEO Geir Holmgren.

-We are confident to deliver on our targets for the next two years. We will
continue to focus on profitable growth and further improve operational
efficiency, which together with our strong product offering should bode well for
continued solid results and attractive returns, says Holmgren.

Highlights fourth quarter 2024 (fourth quarter 2023)

Profit or loss before tax expense: NOK 1,605.3 million (1,574.6)

Earnings per share: NOK 2.38 (2.18)

Insurance revenue: NOK 10,019.0 million (8,979.2)

Insurance service result: NOK 1,669.9 million (725.2)

Combined ratio: 83.3 % (91.9 %)

Cost ratio: 12.2 % (12.6 %)

Financial result: NOK 207.8 million (1,837.8)

Highlights year as a whole 2024 (2023)

Profit or loss before tax expense: NOK 6,823.4 million (5,504.3)

Earnings per share: NOK 10.01 (8.11)

Insurance revenue: NOK 38,359.4 million (34,568.1)

Insurance service result: NOK 5,386.6 million (4,460.6)

Combined ratio: 86.0 % (87.1 %)

Cost ratio: 12.3 % (13.7 %)

Financial result: NOK 2,458.3 million (2,527.1)

Proposed dividend

Proposed regular dividend: NOK 4,500 million (4,375), corresponding to NOK 9.00
per share (8.75)

Proposed special dividend: NOK 500 million (0), corresponding to NOK 1.00 per
share (0.00)

General insurance

Insurance revenue increased by 11.6 per cent to NOK 10,019.0 million (8,979.2)
in the quarter, or by 11.2 per cent measured in local currency. This was mainly
driven by effective and differentiated pricing measures and solid renewals.

The insurance service result was 1,669.9 million (725.2) mainly reflecting
higher insurance revenue and an improvement in the loss ratio, primarily driven
by successful targeted pricing measures.

The loss ratio decreased by 8.2 percentage points, reflecting a 6.1 percentage
points improvement in the underlying frequency loss ratio, lower large losses
and the change in risk adjustment. Adjusted for weather-related claims in the
fourth quarter of 2023, the loss ratio improved by 7.0 percentage points and the
underlying frequency loss ratio improved by 4.8 percentage points, driven by
Private and Commercial in Norway and Sweden.

The cost ratio improved by 0.4 percentage points driven by Commercial in Norway,
Private in Denmark and Sweden.

Pension

The pension segment recorded a profit before tax expense of minus NOK 58.3
million (113.7), driven by a negative net finance income.

Financial result

The financial result for the quarter was NOK 207.8 million (1,837.8),
corresponding to a return on total assets of 0.3 per cent (3.0). The result for
the quarter was positively impacted by high running yields, lower credit spreads
and positive equity markets. Higher interest rates had a negative impact on the
result.

Result for the year as a whole

The Group recorded a profit before tax expense of NOK 6,823.4 million (5,504.3)
for the year. The profit from general insurance operations measured by the
insurance service result was NOK 5,386.6 million (4,460.6), corresponding to a
combined ratio of 86.0 per cent (87.1).

The profit after tax expense from continuing operations was NOK 5,180.7 million
(4,085.8). Earnings per share amounted to NOK 10.10 (8.02).

The insurance service result from general insurance operations increased by 20.8
per cent, reflecting higher insurance revenue, and a lower cost ratio. The loss
ratio increased by 0.3 percentage points, mainly driven by a higher underlying
frequency loss ratio and lower run-off gains. The change in risk adjustment and
the discounting effect contributed positively. The underlying frequency loss
ratio increased by 1.0 percentage point. Adjusted for weather-related claims of
NOK 577.1 million in 2024 and 748.1 million in 2023, the loss ratio and the
underlying frequency loss ratio increased by 1.0 percentage point. The
deterioration was primarily driven by Private and Commercial in Norway,
reflecting higher claims cost for motor insurance. The insurance service result
for the period also reflects a positive impact from the change in risk
adjustment recognised in the second quarter of NOK 393.7 million.

The cost ratio improved by 1.4 percentage points, primarily reflecting one-off
expenses recognised in the third quarter of 2023. Higher insurance revenue also
contributed positively.

The pension segment recorded a profit before tax expense of NOK 403.0 million
(106.1), driven by an improved insurance service result, an increase in net
finance income and income from the unit-linked business.

The financial result for the period was NOK 2,458.3 million (2,527,1), which
corresponds to a return on total assets of 3.9 per cent (4.2). A high running
yield and lower credit spreads, as well as rising equity markets generated
positive returns.

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, 24 January 2025

Contact persons, Gjensidige Forsikring ASA:
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 4,900 employees and offer insurance products in Norway,
Denmark and Sweden. In Norway, we also offer pension and savings. The Group's
insurance revenue was NOK 39 billion in 2024, while total assets were NOK 171
billion.

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637061_Interim_presentation_Q4_2024.pdf
637061_Interim_report_Q4_2024.pdf