Gjensidige Insurance Group 3rd quarter results 2016

26 October 2016

A strong third quarter

• Pre-tax profit NOK 1,516m • Underwriting result NOK 712m • Combined ratio 87.5%, (85.4% adjusted for one-off) • 4.3% premium growth • Good underlying frequency claims development • Level of run-off and large losses as expected • Good cost control – cost ratio 17.3% (15.2% adjusted

Combined ratio % 80.1 14.5

87.5 17.3

65.6

70.2

Q3 2015

Q3 2016

Loss ratio

for one-off)

• Solid contributions from bank and pension operations with pre-tax profit of NOK 178m

Cost ratio

Pre-tax profit NOK m

1 516 952

• Financial result NOK 700m, investment return 1.3% • 21.7% return on equity*

700 1 091 -150 Q3 2015

UW-result * Annualised, YTD

712 Q3 2016

Financial result

Q3 2016 including one-off restructuring cost NOK 120m

Other 2

• Successful NOK 1.0bn RT1 issue

Dividend policy

• Sale SR-Bank shares with ~NOK 300m

• High and stable dividends

• Special dividend NOK 4.00 per share corresponding to a total NOK 2bn -

Excess capital distribution

-

Adopted based on existing Board authorisation

-

Ex-date: 1 November 2016

• 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 above the targeted capitalisation will be paid out over time

Special

capital effect

Regular

Further optimising of capital structure - special dividend NOK 4.00 per share

3

Operational strategic priorities

Digital customer experiences

Business intelligence and analytics

Koncernen har væ no teret på Oslo ret 2010. I Børs siden snart ans at ildsjæ 200 år har vi l e, som jder for arbe at liv, helb sikre kunde rnes red og væ rdie r.

Gjensidige

5 4 3 2 1 1

Organisational capabilities

Forsikring

Vi er circa arbejde 3.100 medre, heraf Danma 495 i rk, skade forsikog vi tilbyder ring i Norg Danma e, rk, Baltikum. Sverige og

2

3

4

5

 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

 Analytical use of data to ensure attractive value propositions and profitable operations

 Business-driven development of people and organisation 4

Set to ensure future competitiveness

• Organisational changes to strengthen analytical capacity, digital customer offerings, marketing and CRM • Changes in Group management

Targets unchanged Return on equity Combined ratio Cost ratio Dividends

>15% 86-89%* ~15% Nominal high and stable (>70%)

• Cost efficiency measures to create room for strategic investments - Reduction 190 FTEs in staff and support functions

Becoming the most customer-oriented general insurer in the Nordic region

*Combined ratio target on an undiscounted basis, assuming ~ 4 pp run-off gains next 2-4 years and normalised large losses impact. Beyond the next 2-4 years, the target is 90-93 given 0 pp run-off.

5

Financial performance

Strong year-to-date and third quarter results

NOK m

Q3 2016

Q3 2015

YTD 2016

YTD 2015

Private

536

687

1 647

1 569

Commercial

401

419

1 249

1 038

Nordic

60

140

227

443

Baltics

(21)

(17)

(63)

(34)

(196)

(77)

118

(229)

Corporate Centre/reinsurance

(67)

(61)

(144)

(209)

Underwriting result

712

1 091

3 034

2 578

Pension and savings

39

19

97

61

Retail Bank

139

57

334

221

Financial result from the investment portfolio

700

(150)

1 594

882

Amortisation and impairment losses of excess value

(64)

(53)

(194)

(127)

Other items

(11)

(13)

(30)

(35)

1 516

952

4 834

3 579

Corporate Centre/costs related to owner

Profit/(loss) before tax expenses

7

Underwriting result development affected by one-offs - frequency claims level stable and benign Development in underwriting result Q3 2015 – Q3 2016

R12M combined ratio development

NOK m 1 091

100 95

(120) (70) (89)

Target corridor adjusted for run-off gains next 2-4 years

90

712 85

80

75

UW Q3 2015

On-off One-off Change Underlying model restructuring large losses change change cost Q316 and run-off actuarial provision Q315

UW Q3 2016

Q4 10

Q2 11

Q4 11

Q2 12

R12M reported

Q4 12

Q2 13

Q4 13

Q2 14

Q4 14

R12M adjusted*

Q2 15

Q4 15

Q2 16

Target corridor**

*Adjusted for one-offs, assumes 0 run-off until Q315 and NOK800m per year from and including Q315, and normalised large losses. **Long-term target corridor assumes 0 run-off and and normalised large losses

8

Underlying change in loss ratio 1.6 percentage points - partly due to short period of heavy rains in Norway Loss ratio development Q3 2015 – Q3 2016

Key drivers – underlying loss ratio development

%

• Heavy rains in Norway affecting property products 65.6

0.9

6557.9 %

Q3 2015

0.3

6648.7 %

1.8

1.6

70.2

• Overall stable and benign frequency claims level for main portfolios and products

6679.0 %

Change in Change in Acturarial Underlying large losses run off model change change Q315

• Random quarterly variations

Q3 2016

-

Nordic segment adversely affected by Vardia, change in provision modelling for product insurance and higher loss ratio on commercial property

-

Satisfactory profitability improvement in Sweden (excluding Vardia) and the Baltics

9

Premium growth of 4.3 per cent

Premium development Q2 2015 – Q2 2016

Key drivers - premium development

NOK m

• Private +1.3% 121 192

5 471

28

(130)

5 705

23

• Commercial +1.3% • Nordic +14.0% driven by acquisitions and currency -

Underlying +2.0%

• Baltics +86.4% driven by PZU Lietuva -

Underlying +4.9%

* CC = corporate centre

Q3 2016

CC*

Baltics

Nordic

Commercial

Private

Q3 2015

• Change in CC is mainly driven by reinsurance in Vardia

10

Good cost control - increase driven by acquisitions and one-off restructuring cost Cost development Q3 2015 – Q3 2016

Key drivers - cost development

NOK m

• Nordic segment: Increase due to Vardia 109

792

12

(9)

31

989

54

• Baltics segment: Increase due to higher expense run-rate in PZU Lietuva -

Synergies are being realised and expense base decreasing

• CC: One-off restructuring cost NOK 120m • Cost ratio 14.1% adjusted for one-off and excluding the Baltics

* CC = corporate centre

Reported cost ratio 15.2% adjusted for one-off

Q3 2016

CC

Baltics

Nordic

Commercial

Private

Q3 2015

-

11

Normal level of large losses

Large losses – reported vs expected

Large losses per segment

NOK m

NOK m 321

318

181

283

156

259

90 74 43 24 14 0 Q3 2015

Q3 2016

Reported

Expected

Private

Commercial

Nordic

Q3 2015

0

0

Baltics

CC

Q3 2016

* Large losses: Losses > NOK 10m. Weather related large losses are included. Large losses in excess of NOK 30.0m 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

12

Impact of 4.1 percentage points from run-off gains

Run-off net

Run-off net per segment

NOK m

NOK m 128 709

93 75

494 64

53 33 241

19

234

3

8

-3 Private YTD 2015 * CC = corporate center

YTD 2016

Q3 2015

Q3 2016

Commercial

Nordic

Q3 2015

Baltics

CC*

Q3 2016 13

Investment return of 1.3 per cent

Investment return (%)

Portfolio mix as at 30.09.2016

2.0 % 1.0 %

1%

6% 3% 11% 2% 5%

0.0 % Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

-1.0 %

10% 32%

-2.0 %

8% Match portfolio

Free portfolio

Total Portfolio

Investment return, free portfolio Q3 2016

22%

%

Fixed income

1.7

Current equities

5.8

PE funds

1.6

Property

1.5

Total free portfolio

2.0

Match portfolio NOK 36.3bn

Free portfolio NOK 19.6bn

Money market Bonds at amortised cost Current bonds Money market Other bonds Convertible bonds Current equities PE funds Property Other 14

Strong capital position - continued capital discipline Capital discipline

Strong capital position Capital available (NOK bn)

Solvency margin adjusted for special dividend: 104%

179%

141%

2.0

2.0

25 20 15

2.0 0.6

• Capital efficiency improved further through Tier 1 debt issuance and dividend decision • S&P strategic buffer NOK 0.9bn •

5.7

8.9

Including the capital effect of ~NOK 300m from sale of SR-bank shares in October (margin 106%)

• Capital buffers within risk appetite

10 14.4 5

14.0

11.3

0 S&P rating model (GI) Capital requirement

Partial Internal Model (Group)

-

Adjusted for adopted special dividend of NOK 2.0bn

-

Solvency margins 183% (PIM) and 144% (SF) when including guarantee scheme

Standard Formula (Group)

Capital > Capital requirement

Special dividend

Figures as at 30.09.2016. 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 183% and 144%, respectively. The figures related to the S&P rating model are based on Gjensidige’s interpretations of the model. Total comprehensive income is included in the calculations, minus a formulaic dividend pay-out ratio of 70 per cent of net profit.

15

Concluding remarks

Key takeaways

• Strong competitive position and good profitability • Continued cost discipline • Strong capital position

Targets Return on equity Combined ratio Cost ratio Dividends

>15% 86-89%* ~15% Nominal high and stable (>70%)

Becoming the most customer-oriented general insurer in the Nordic region

* Combined ratio target on an undiscounted basis, assuming ~4 pp run-off gains next 2-4 years and normalised large losses impact. Beyond the next 2-4 years, the target is 90-93 given 0 pp run-off.

16

Roadshows and conferences post Q3 2016 results

Date

Location

Participants

Event

Arranged by

26 October 2016

Oslo

CEO Helge Leiro Baastad CFO Jostein Amdal

Interim presentation

Gjensidige

26 October 2016

Oslo

CEO Helge Leiro Baastad CFO Jostein Amdal Head of IR Janne Flessum

Group lunch Roadshow

Sparebank 1

27 October 2016

London

CEO Helge Leiro Baastad CFO Jostein Amdal Head of IR Janne Flessum

Roadshow

Arctic Securities

2 November 2016

Copenhagen

CFO Jostein Amdal IRO Katharina Hesbø

Roadshow

ABG Sundal Collier

9-10 November 2016

Zürich and Geneve

CFO Jostein Amdal IRO Katharina Hesbø

Roadshow

Danske Bank

24 November 2016

Frankfurt

CEO Helge Leiro Baastad Head of IR Janne Flessum

Roadshow

Nordea

25 November 2016

Milan

CEO Helge Leiro Baastad Head of IR Janne Flessum

Roadshow

KBW

6 December 2016

London

CEO Helge Leiro Baastad Head of IR Janne Flessum

European Conference

Berenberg

Appendix

General insurance – cost ratio and loss ratio per segment

Private

Commercial

74.4 % 12.6 %

73.4 % 12.7 %

67.4 % 12.5 %

74.9 % 12.9 %

80.4 % 11.6 %

77.1 % 10.9 %

76.8 % 11.2 %

78.1 % 10.6 %

61.8 %

60.6 %

54.9 %

62.0 %

68.9 %

66.1 %

65.6 %

67.5 %

YTD 2015

YTD 2016

Q3 2015

Q3 2016

YTD 2015

YTD 2016

Q3 2015

Q3 2016

Loss ratio

Cost ratio

Loss ratio

Nordic

Cost ratio

Baltics

88.5 % 15.3 %

94.8 % 15.2 %

89.8 % 14.5 %

96.2 % 14.7 %

73.1 %

79.6 %

75.3 %

81.5 %

YTD 2015

YTD 2016

Q3 2015

Q3 2016

Loss ratio

Cost ratio

108.9 %

108.0 %

111.9 %

108.2 %

32.8 %

37.4 %

33.2 %

38.5 %

76.1 %

70.6 %

78.7 %

69.7 %

YTD 2015

YTD 2016

Q3 2015

Q3 2016

Loss ratio

Cost ratio 20

Effect of discounting of claims provisions Assuming Solvency II regime

Effect of discounting on CR – Q3 2016

Assumptions • Only claims provisions are discounted (i.e. premium provisions are undiscounted) • Swap rates in Norway, Sweden and Denmark

0.8%

87.5%

Reported CR

86.7%

Discounting

• Euroswap rates in the Baltic countries

Discounted CR (SII)

21

Large losses and run-off development

~ NOK 1.3bn in large losses* expected annually

Expected annual run-off gains of ~NOK 800m next 2-4 years

NOK m 500

Run-off % of earned premium Motor TPL and WC (Norway)

4.0 %

450

3.5 %

400

Group life and Motor BI (Norway) Liability and Accident (Denmark)

3.0 %

350

2.5 %

300

2.0 %

250

1.5 %

Reported

* Losses >NOK 10m. From and including 2012, the numbers include weather related large losses.

Run-off (%), net

R12M 2016Q3

Expected

2015

-2.0 %

2014

WC and disease (Norway)

2013

2012

2011

2010

2009

-1.5 %

2008

-1.0 %

2007

0

2006

-0.5 %

2005

50

2004

0.0 % 2003

100

2002

0.5 % 2001

150

2000

1.0 %

Q316 Q216 Q116 Q415 Q315 Q215 Q115 Q414 Q314 Q214 Q114 Q413 Q313 Q213 Q113 Q412 Q312 Q212 Q112 Q411 Q311 Q211 Q111

200

Average 22

Quarterly underwriting results General Insurance

NOK m 1 150 950 750 550 350 150 ( 50) ( 250) ( 450) Q1 Q2 Q3 Q4

2008 79 270 346 165

2009 97 319 259 142

2010 (369) 289 562 315

2011 50 615 570 186

Q1

2012 506 719 780 603

Q2

Q3

2013 343 448 853 376

2014 349 951 755 807

2015 417 1070 1091 879

2016 774 * 1072 832 **

Q4

*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. ** Reported UW result for Q3 2016 was NOK 712m. Adjusted for a non-recurring NOK 120m restructuring cost the UW result was NOK 832m.

23

Asset allocation As at 30.09.2016

Match portfolio

Free portfolio

• Carrying amount: NOK 36.3bn • Average duration: 3.5 years

• Carrying amount: NOK 19.6bn • Average duration fixed-income instruments: 3.2 years 7%

17%

23% 17%

34%

6% 19%

49%

14% 4% 10%

Money market Bonds at amortised cost Current bonds

Money market High Yield Current equities Property

Other bonds Convertible bonds PE-funds Other

24

Stable contribution from the match portfolio

Quarterly investment returns*

Asset allocation as at 30.09.2016

8% 6% 4% 2%

35%

0% Q3 2016

Q1 2016

Q3 2015

Q1 2015

Q3 2014

Q1 2014

Q3 2013

Q1 2013

Q3 2012

Q1 2012

Q3 2011

Q1 2011

Q3 2010

Q1 2010

-2% -4%

65% -6% -8% -10%

Match portfolio

Free portfolio

Match portfolio Free portfolio * Associated companies

* From and including 2014 former associated companies are included in the Free portfolio. The investment in STB was sold in Q1 2014. From and including Q2 2014 the investment in SRBANK was classified as an ordinary share

25

Balanced geographical exposure

Match portfolio

Free portfolio, fixed-income instruments

2%

0%

7%

9%

8%

12%

37%

6% 49%

22% 39%

6%

2% 1%

Norway

Sweden

Denmark

UK

Baltic

Other

USA

Figures as at 30.09.2016. Geographical distribution relates to issuers and does not reflect actual currency exposure

Norway

Sweden

Denmark

UK

Baltic

Other

USA

26

Credit and counterparty risk

Credit exposure

Total fixed income portfolio

•

Split - Rating

•

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

AAA AA A BBB BB B CCC or lower

• •

Relevant benchmark for high yield and investment grade are international, wide HY and IG indices Generally, foreign-exchange risk in the investment portfolio is hedged close to 100 per cent, within a permitted limit of +/- ten per cent per currency

Internal rating* Unrated Fixed income portfolio

Match portfolio NOK bn % 10.7 3.8 6.1 1.9 0.6 1.2 0.0 8.0 4.1 36.2

Split - Counterparty

Match portfolio NOK bn

Public sector

Free portfolio NOK bn % 29.4 1.1 10.5 1.3 16.9 2.6 5.1 1.9 1.5 1.0 3.2 0.8 0.0 0.2 22.0 1.4 11.3 0.6 100.0 11.0

10.1 11.4 24.1 17.5 9.3 7.7 1.4 13.0 5.5 100.0

Free portfolio % NOK bn

%

4.8

13.1

1.9

17.7

Bank/financial institutions

19.6

54.0

4.4

39.8

Corporates

11.9

32.9

4.7

42.6

Total

36.2

100.0

11.0

100.0

Figures as at 30.09.2016. * Internal rating – rating by third party

27

Overview capitalisation

SF (Group) (NOK bn)

SF (general insurance)

PIM (Group)

PIM (general insurance)

Rating model (general insurance)

Gjensidige Bank & Gjensidige Investeringsrådgivning

Gjensidige Pensjonsforsikring

Capital available

Capital requirement

Solvency margin

19.8

14.7

20.1

15.2

15.0

3.3

1.6

14.0

10.0

11.3

7.2

14.4

3.3

1.3

141%

148%

179%

211%

104%

100%

123%

Figures as at 30.09.2016. 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 183% and 144%, respectively. The figures related to the S&P rating model are based on Gjensidige’s interpretations of the model. Total comprehensive income is included in the calculations, minus a formulaic dividend pay-out ratio of 70 per cent of net profit. Allocation of capital to Gjensidige Bank is based on 16 per cent capital adequacy ratio. Allocation of capital to Gjensidige Investeringsrådgivning is based on 8 per cent capital adequacy ratio.

28

Solvency II economic capital available

NOK bn 0.2

1.5

2.5 2.0 1.4 0.8

4.5 2.0

23.1

1.9

0.3

0.3

0.4

2.6 20.1

IFRS equity capital

Adjustments for other financial sectors

Subordinated debt

Declared Dividend (minimum dividend, not already dividend according to recognised in accounts dividend policy. 70% of YTD result)

Intangible assets

Fair value adjustment, assets

Discounting Risk margin Solvency II Solvency II Deferred tax Miscellaneous liability calculation of calculation of effect of technical premium claims provisions provisions for provisions life insurance (which are not (GPF) already disc.)

Economic capital available (internal model)

19.8

Additional risk margin standard formula

Figures as at 30.09.2016. GPF = Gjensidige Pensjonsforsikring. 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. Deferred tax: All differences in valuation of assets and liabilities are adjusted for tax. No tax is assumed on the security provision. Miscellanious: Main effects are related to the guarantee scheme provision and different valuation of Oslo Areal

Economic capital available (standard formula)

29

Solvency II capital requirements

NOK bn

PIM

SF

Capital available

20.1

19.8

Capital charge for non-life and health uw risk

5.8

8.1

Capital charge for life uw risk

1.3

1.3

Capital charge for market risk

6.2

6.9

Capital charge for counterparty risk

0.4

0.4

(4.4)

(3.8)

Basic SCR

9.2

12.9

Operational risk

1.0

1.0

(2.2)

(3.2)

3.3

3.3

11.3

14.0

Diversification

Adjustments (risk-reducing effect of deferred tax) Gjensidige Bank/Gjensidige Investeringsrådgivning Total capital requirement

Solvency ratio

179%

141%

Scope internal model Out of scope, covered by SF

Within IM scope

Non-life and health uw risk Life insurance risk Other risks

Market risk Operational risk

Figures as at 30.09.2016. 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 183% and 144%, respectively. Total comprehensive income is included in the calculations, minus a formulaic dividend pay-out ratio of 70 per cent of net profit. Allocation of capital to Gjensidige Bank is based on 16 per cent capital adequacy ratio. Pie chart is based on allocated capital for the specified risk types within the Gjensidige Group excl. Gjensidige Bank and Gjensidige Investeringsrådgivning .

30

Solvency II sensitivities PIM

179%

175%

182%

182% 172%

190% 168%

169%

SCR 100%

Solvency II ratio

Equity (-20%/+20%)

Interest rate (-100 bps/+100 bps)

Spread (-100 bps/ +100 bps)

Inflation +100 bps

Figures as at 30.09.2016. 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 solvency margin would be 183%. Total comprehensive income is included in the calculations, minus a formulaic dividend pay-out ratio of 70 per cent of net profit. UFR-sensitivity is very limited.

31

Solvency II sensitivities SF

141%

145% 136%

145% 134%

149% 132%

131%

SCR 100%

Solvency II ratio

Equity (-20%/+20%)

Interest rate (-100 bps/+100 bps)

Spread (-100 bps/ +100 bps)

Inflation +100 bps

Figures as at 30.09.2016. 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 SF solvency margin would be 144%. Total comprehensive income is included in the calculations, minus a formulaic dividend pay-out ratio of 70 per cent of net profit. UFR-sensitivity is very limited.

32

S&P total available capital

Bridging the gap between IFRS equity and available capital NOK bn 0.3 3.5

1.2

2.5 2.0 4.4

23.1

1.7

0.7

0.8

0.3

15.0

IFRS equity capital

Retail Booked equity Bank Tier 1 in Retail Bank capital and Pension and Savings (subsidiaries)

Subordinated debt

Dividend Declared (minimum dividend, not dividend already according recognised in to accounts dividend policy, 70% of YTD result)

Intangible assets

Fair value adjustment, assets

Discounting Deferred tax effect claims liability provisions (which are not already disc.) and premium provisions

Adj Oslo Areal

Total available capital (TAC)

Figures as at 30.09.2016. The figures related to the S&P rating model are based on Gjensidige’s interpretations of the model. Note that the rating perspective is based on the balance sheet of the Group’s general insurance operations.

33

S&P capital requirement

NOK bn Total capital charge for asset risk

7.3

Total capital charge for insurance risk

9.1

Total gain diversification

(1.2)

Quantitative credit

(0.9)

Total capital requirement A-rating

14.4

Figures as at 30.09.2016. The figures related to the S&P rating model are based on Gjensidige’s interpretations of the model. Note that the rating perspective is based on the balance sheet of the Group’s general insurance operations.

34

Subordinated debt capacity Principles for capacity Intermediate Equity Content

Constraint

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.

S&P

SII

Capacity and utilisation

T1

T2

Constraint

Max 20% of Tier 1 capital

Max 50% of SCR less other T2 capital items

Must be satisfied at group and solo level

•

Tier 1 remaining capacity is NOK 1.5bn • Utilised Tier 1 debt capacity: NOK 1.0bn

•

Tier 2 capacity is fully utilised for the insurance group assuming PIM approval • Utilised sub debt: NOK 1.5bn* • Utilised natural perils fund and guarantee scheme: NOK 2.9bn

Figures as at 30.09.2016. 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. However, 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. * Sub debt Gjensidige Forsikring ASA NOK 1.2bn, Gjensidige Pensjonsforsikring NOK 0.3bn

35

Annualised return on equity 21.7 per cent year-to-date

Return on equity (%)

Equity (NOK m)

3 579

4 197

23 331

31.12.2015

Profit YTD Q3 2016

592

997

22 121

22 121

Dividend Total RT1 paid components issue of other comprehensive income

Bridge shows main elements in equity development

21.7

23 111 17.4

FY 2015

30.09.2016

* Annualised

YTD 2016*

36

Market leader in Norway

Market share – Total market

2.9%

18.2%

Market share – Commercial

Market share – Private

25.4%

4.2% 4.8%

21.2%

10.0%

24.4%

27.1% 24.3%

19.4%

13.3% 13.3%

14.2% Gjensidige Tryg DNB Codan

If Sparebank1 Eika Other

Source: Finance Norway, non-life insurance, 2nd quarter 2016

12.8%

4.3% Gjensidige

If

Tryg Sparebank1

Gjensidige

If

Sparebank1 Tryg

37

Nordic and Baltic growth opportunities

Market shares Norway

Market shares Sweden 2.4%

Gjensidige 25.4%

30.1%

Gjensidige If

21.2%

10.0%

6.5%

5.7% 11.2%

If Lansförsäkringar

15.1%

Folksam

29.9%

Trygg Hansa

16.4%

Other

Other

Market shares Denmark

31.7%

18.2%

Tryg Sparebank1

13.3%

18.0%

17.2% 18.0% 9.7%

Market shares Baltics Gjensidige Topdanmark Tryg Alm.Brand Codan If Other

10.8% 26.2%

13.3%

Gjensidige inc PZU If PZU

12.5% 12.9%

24.3%

Ergo BTA Other

Sources: Finance Norway, 2nd quarter 2016. Insurance Sweden, 2nd quarter 2016 (Gjensidige including Vardia), The Danish Insurance Association 3rd quarter 2015. Baltics Insurance Supervisory Authorities of Latvia and Lithuania, Estonia Statistics, competitor reports, and manual calculations, 2nd quarter 2016

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Ownership

10 largest shareholders*

Geographical distribution of shares** 2%

No

Shareholder

1

Gjensidigestiftelsen

2

Folketrygdfondet

4.5

3

Deutsche Bank

4.2

4

Danske Bank

2.9

5

Caisse de Depot et Placement du Quebec

2.7

6

BlackRock

1.6

7

State Street Corporation

0.8

Gjensidige Foundation ownership policy:

8

DNB

0.8

•

Long term target holding: >60%

9

The Vanguard Group

0.7

•

10

Safe Investment Company

0.7

Can accept reduced ownership ratio in case of acquisitions and capital issues when in accordance with Gjensidige’s overall strategy

Total 10 largest

Stake (%) 62.2 24%

40% 4% 9% 22%

Norway

North America

UK

Asia

Europe excl. UK and Norway

RoW/ Unidentified

81.2

* Shareholder list based on analysis performed by Orient Capital Ltd of the register of shareholders in the Norwegian Central Securities Depository (VPS) as per 30 September 2016. This analysis provides a survey of the shareholders who are behind the nominee accounts. There is no guarantee that the list is complete. ** Distribution of shares excluding share held by the Gjensidige Foundation (Gjensidigestiftelsen).

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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.

40

Notes

41

Notes

42

Notes

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Investor relations

Janne Flessum Head of Investor relations, M&A and Capital management [email protected] Mobile: +47 91 51 47 39 Katharina H. Hesbø Investor relations officer [email protected] Mobile: +47 99 36 28 04

Address: Schweigaards gate 21, PO Box 700 Sentrum, 0106 Oslo, Norway www.gjensidige.no/ir 44