Delivering superior customer experiences and stable returns October 2017
Attractive value proposition Proven track-record Strong position in attractive market place Scalable hard-to-copy business model and loyal customers Efficient capital structure and good financial flexibility Attractive dividend policy Strong value creation since IPO NOK bn 50 40 30 20 10 0 driven by solid growth, underwriting and cost discipline NOK bn 24 22 20 18 16 14 2010 2011 2012 2013 2014 2015 2016 Q317 2010 2011 2012 2013 2014 2015 2016 R12m Q317 Earned premiums Combined Ratio (RHS) Target corridor* 25% 20% 15% 10% Equity base Cumulative dividend payments Annualised ROE (RHS) 100% 95% 90% 85% 80% 75% *Long-term target corridor assumes 0pp run-off and and normalised large losses 3
Diversified general insurer with growing pan-nordic presence Gjensidige Forsikring ASA Diversified product mix Motor 14% Property 33% Norway Nordic Baltics Accident & Health Other 18% General insurance: NOK15.5bn General insurance: NOK 5.9bn General insurance: NOK 1.0bn 35% 69% Pension and Savings AUM: NOK 38.4bn 26% 5% 80 % direct distribution Retail Bank Gross lending: NOK 41.2bn Direct Brokered and tied agents 20% 80% General insurance numbers are earned premiums 2016. AUM and Gross lending as of 31.12.2016 3
Market leader in Norway and a strong position in the Nordic/ Baltic region Growth ambition in Nordic/ Baltic region Ambition to secure strong position in Norway Market share top 5 Norway 75% Denmark 62% Sweden 83% Finland 89% Baltic states 79% % 40 30 If Gjensidige #5 #1 #7 #5 20 10 Tryg Sparebank1 Other 0 1999 2001 2003 2005 2007 2009 2011 2013 2015 Q217 Consolidated market shares for the 5 largest players in each market. Position in each country based on Q22017 Norway, Baltics and Sweden (including Vardia), Q32016 Denmark, and Q42016 Finland. Source: Finance Norway. 25 companies in Other category Q217. 4
Attractive market characteristics in the Nordic market provide barriers to entry Cost efficient market place* Cost ratio (%) Other key market characteristics Consolidated market place 40 30 European GI Rational listed players Strong local brands Automatic renewals Nordic GI Integrated value chains 20 10 Company Customer *Source: Published figures 31.12.2016 European players: Direct Line, Country entities Generali (France, Italy, Germany), Aviva GI, RSA UK, Ageas. Nordic players: If, Tryg, Sparebank1,TopDanmark, RSA Scandinavia 5
Unique strengths provide competitive advantage Brand awareness and strength Quality mark in a competitive and digitalised environment Loyal customers Low acquisition costs and high-quality portfolio Customer dividend model Gjensidige Gjensidige Foundation Shareholder dividends Customer dividends Building loyalty and preference in Norway Technology platform and analytical capabilities Common legacy system key to analysing Big Data and applying insight 7
Set for further value creation in a changing market Digitalisation and demographics key drivers scale increasingly important Attract and develop skills Strategic investments Preferred partner Sources: businessinsider.com, gettyimages.no, telegraph.co.uk 7
Delivering superior customer experiences and stable returns continues to be key priority Financial targets Becoming the most customer-oriented general insurance company in the Nordic region Return on equity >15% Efficient operations Strategic partnerships Combined Ratio Cost ratio 86-89%* ~15% Dividends Nominal high and stable (>70%) Business intelligence and analytics Organisational capabilities Profitable growth and stable returns Customer centricity Superior customer experiences Brand development Automation and digitalisation *Combined ratio target on an undiscounted basis, assuming ~ 4 pp run-off gains next 2.25-4.25 years and normalised large losses impact. Beyond the next 2.25-4.25 years, the target is 90-93 given 0 pp run-off. 8
Key operational strategic priorities Digital customer experiences Koncernen har været no teret på Oslo Børs siden 2010. I snart 200 år har vi ans at ildsjæl e, som arbejder for at sikre kunde rnes liv, helbred og værdie r. Gjensidige Forsikring Vi er circa 3.100 medarbejde re, heraf 495 i Danma rk, og vi tilbyder skade forsikring i Norge, Danma rk, Sverige og Baltikum. The best online customer experiences in the Nordic general insurance market Preparing for a strong position in a growing market for health and personal insurance Business intelligence and analytics 5 4 3 2 1 1 2 3 4 5 Analytical use of data to ensure attractive value propositions and profitable operations Organisational capabilities Business-driven development of people and organisation 9
Premium growth and underwriting discipline offset challenging investment environment Continued solid premium growth expected Organic growth in line with nominal GDP growth over time Continued complementary growth through M&A Conservative investment approach balanced investment portfolio** 2% 6% 2% 2% 6% 3% 6% 8% 32% Solid underwriting increasingly important NOK bn* 8.0 6.0 4.0 2.0 0.0-2.0 2010 2011 2012 2013 2014 2015 2016 R12m Q317 UW result Investment income Other 8% Match portfolio NOK 34.6bn Free portfolio NOK 18.9bn 25% Money market Bonds at amortised cost Current bonds Money market Other bonds High Yield bonds Convertible bonds Current equities PE funds Property Other *Split of pre-tax profits ** Investment portfolio as at 30 September 2017 10
Solid capital position capital discipline supports dividend growth over time Strong capital position Capital available (NOK bn) 25 20 15 10 5 0 Solvency margin: 110% 173% 145% 1.4 9.3 14.2 12.7 S&P rating model (GI) Partial Internal Model (Group) Capital requirement Capital > Capital requirement 6.7 15.0 Standard Formula (Group) Dividend policy High and stable nominal dividends Pay-out ratio over time of at least 70% of profit after tax Expected future capital need taken into account when determining the size of the dividend Excess capital will be paid out over time Special Regular Figures as at 30.09.2017. The Solvency II regulation is principle based. Calculations are based on Gjensidige s understanding of the Solvency II regulation and how it is implemented in Norway, including the current view of the Norwegian FSA on the guarantee provision. If the Guarantee provision had been treated as solvency capital, the Group s PIM and SF solvency margins would be 177% and 148%, respectively. The figures related to the S&P rating model are based on Gjensidige s interpretations of the model. The figures are adjusted for a formulaic dividend pay-out ratio of 70 per cent of net profit. 11
Attractive value proposition Proven track-record Strong position in attractive market place Scalable hard-to-copy business model and loyal customers Efficient capital structure and good financial flexibility Financial targets Return on equity >15% Combined ratio* 86-89% Cost ratio ~15% Dividend Nominal high and stable (>70%) Attractive dividend policy *Combined ratio target on an undiscounted basis, assuming ~4 pp run-off gains next 2.25-4.25 years and normalised large losses impact. Beyond the next 2.25-4.25 years, the target is 90-93 given 0 pp run-off.
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Investor relations Janne Flessum Head of Investor Relations, Capital Management and M&A janne.flessum@gjensidige.no Mobile: +47 91 51 47 39 Anette Bolstad Investor relations officer anette.bolstad@gjensidige.no Mobile: +47 41 67 77 22 Katharina H. Hesbø Investor relations officer katharina-helena.hesbo@gjensidige.no Mobile: +47 99 36 28 04 Address: Schweigaards gate 21, PO Box 700 Sentrum, 0106 Oslo, Norway www.gjensidige.no/ir