Gjensidige Forsikring Asa

Good morning and welcome to the first quarter presentation for Insidia. My name is Mitra Negård and I'm Head of Investor Relations. We will start this session with our CEO, Geir Holmgren, who will give you the highlights of the quarter, followed by our CFO, Jostein Amdahl, who will run through the numbers in further detail. And we have plenty of time for a Q&A after that. Geir, please.

Thank you Mitra and good morning everyone. I will start with the Danish Supreme Court ruling on the workers compensation scheme announced yesterday. Reducing the compensation threshold. This ruling marks a significant change in the Danish authorities' practice regarding workers' compensation. The Danish Insurance Association expects the Danish government to assume full responsibility for the industry's losses. At this stage, the financial impact remains highly uncertain. Based on our initial assessments, we estimate that the ruling could result in additional claims costs in the range of around 500 to 800 million Danish kroner for Jens Iria. It is key to point out that our reserves will, to a certain extent, absorb such risks. As announced yesterday, we will undertake a thorough review of the ruling and carry out the necessary analysis before providing a reliable estimate of the financial impact. Any related accounting effects will be recognized in the second quarter of 2026. I would like to point out that we do not expect the regular dividend for the 2026 accounting year to be affected by this matter, and we will still expect to deliver on the financial targets for 2026. Turning to page 3. We generated strong insurance results this quarter, driven by efficient operations, disciplined pricing and a consistent focus on serving our customers. The continued loyalty we experienced demonstrates the value and significance of our services. More than 40,000 customers received travel assistance this quarter, including many affected by the conflict in the Middle East. We responded swiftly to the situation, extended the coverage and assisted our customers with everything from evacuation and changes to travel plans to accommodation and safe return home. In February, we presented our strategy and ambitions at our Capital Markets Day, setting a clear path for future growth. As part of our focus on damage prevention, we expanded our sensor-based alarm services from homes to cabins, further strengthening our support for customers. The rollout of these sensor-based alarm services in homes has already proven highly successful, resulting in reduced incidents and greater peace of mind for our customers. Building on this strong foundation, we are confident that these initiatives will deepen our customer relationships and drive long-term loyalty. We remain focused on delivering attractive returns to shareholders. The board's proposed dividend was approved at our annual general meeting in March, resulting in a payout of 7 billion 250 million to shareholders earlier this month. So let's turn to page four. This quarter, we achieved a profit of the tax of 1,548,000,000. Our strong general insurance service result reflected continuing robust growth momentum and a notable improvement in margins. The results from our pension business were negatively affected by a recalculation of reserves in the IFRS 17 accounts. It is also important to emphasize that this did not impact the solvency position. The results were also impacted by a lower net finance income. The performance of our investment portfolios was very satisfactory, especially given the significant market turmoil. Additionally, our return on equity of 27.7% is very strong and we maintain a solid solvency position of 195%. Turning to page 5. I am very pleased with a significant increase in the insurance service results this quarter, amounting to 2,288,000,000 kr. Lower and larger losses were part of the explanation, but we also saw a notable contribution from revenue growth and an improved margin. Achieving a combined ratio of 79.2% in the winter quarter is exceptional and well below our annual target of 82%. This strong result was driven not only by fewer large losses, but also by the implementation of ongoing pricing measures. Discipline cost control and favourable weather conditions for motor insurance in Norway also contributed positively. I am especially pleased that the underlying frequency loss ratio declined by 3 percentage points, while our commitment to cost discipline further reduced our cost ratio to 11.7%. Our investment portfolio delivered a financial result of 226 million this quarter, reflecting positive returns from both fixed income instruments and real estate. The pension segment recorded a pre-tax loss of 298 million, adjusted for CSM, reflecting the recalculation of reserves within the insurance portfolio and reduced net finance income. This was partly offset by the Unitlink business, which continued its strong performance thanks to growth in occupational pension memberships and a rise in assets under management compared with the first quarter last year. So over to page 6. Group insurance revenues increased by 10.6% in this quarter in local currency. I'm very pleased with our strong growth momentum continuing into the first quarter, which demonstrates our robust position and unwavering focus on profitability. Our disciplined pricing approach across all segments has been successfully implemented, strengthening our profitability and supporting our overall growth strategy. We remain committed to maintaining our pricing at least in line with the anticipated increase in claims costs, ensuring that our premiums continue to reflect underlying risk and market trends. This ongoing focus on pricing not only safeguards our margins, but also enables us to proactively respond to evolving claims patterns and external factors. Growth in our private segment was driven by both Norway and Denmark, primarily through price increases, complemented by higher volumes across the main product lines. The commercial segment also saw growth in both Norway and Denmark, reflecting price increases across all key products, as in recent quarters growth in certain accident insurance products remained subdued, reflecting our consistent prioritization of profitability over growth. Sweden also demonstrated growth, although at a somewhat lower pace, driven by price adjustments across all main products and higher volumes. Nevertheless, the increase in gross written premium reflects a solid growth trajectory. So, over to page 7. Improvement in operational targets is important to support the delivery of strategic priorities and ESEDIS financial targets. The 2028 operational targets for the Group were announced at our Capital Markets Day in February this year. Retention rates remain a key driver of cost efficiency. Retention rates in Norway held firm at 91%, a very strong level, especially considering the necessary and significant price increases we have put through. Retention in Denmark rose to 87%, driven by a positive underlying development and an improved reporting structure for the commercial portfolio. Our continued focus on automation and digitization is accelerating operational progress. The quarter saw robust growth in digital sales and distribution efficiency is improving across both private and commercial segments. So thanks to automation initiatives, 42% of claims in Norway are now handled as straight through processing. This not only greatly reduces manual work and advances our broader cost efficiency, but also speeds up processing times, enhancing customer satisfaction. Over to page eight. I'm encouraged by the strong progress we continue to make on sustainability, on our sustainability agenda, and by our unwavering commitment to developing new initiatives that reinforces our contribution to sustainable development. As highlighted on this slide, and at our capital markets in February, we have set ambitious long-term goals through 2030, and our organization remains focused on delivering these outcomes. The external recognitions and ratings we have received are a testament to our achievements and serve as a powerful motivator for us to sustain and further elevate our efforts in this critical area. So, with that, I will leave it over to Jostein to present the first quarter results in more detail.

Thank you, Guy, and good morning, everybody. I will start on page nine. We delivered a profit before tax of $2.55 billion in the first quarter, with a significant increase compared with the first quarter last year being driven by a higher insurance service result. The pension segment contributed negatively to the overall results, posting a loss this quarter, primarily due to a recalculation of reserves in the IFRS 17 accounts and reduced net financial income. Net financial results from our investment portfolios were lower this quarter, mainly due to a larger increase in interest rates compared with the same quarter last year. The contribution from other items was lower, mainly due to the transfer of profits from natural perils insurance and higher amortization. This was partly offset by a 106 million provision reversal after the Danish Supreme Court ruling in February. Higher results from Jens Hiding Mobility Group also contributed positively. Turning over to page 10 to comment on the segments, starting with private. I'm very pleased with the strong development in private Norway this quarter. The insurance service result increased by 258 million, driven by a significant margin improvement and continued strong growth in revenue. The underlying frequency loss ratio improved by 3.5 percentage points, reflecting both effective pricing measures and favourable driving conditions in Norway this winter, benefiting profitability for motor. Staying ahead of claims inflation through proactive pricing is one of the most important things we do in this business. Heightened geopolitical uncertainty has increased concerns around inflationary pressures and potential supply chain disruptions. We are monitoring developments closely and remain committed to ensuring that our pricing models continuously reflect updated assumptions. Our latest estimates on repair cost increases in Norway are 4-7% for motor and 4-6% for property. Inflationary pressure remains somewhat lower in Denmark and Sweden, as has been the case for some time. Turning to our private portfolio in Denmark, I am pleased to report a marked improvement this quarter. The insurance service result reached 74 million, a substantial improvement from a loss of 57 million in the same period of last year. This positive development was largely driven by the successful implementation of targeted pricing initiatives and the reduction in mid-size claims, with property and motor insurance showing higher profitability. We remain firmly committed to enhancing cost efficiency in Denmark, and it is encouraging to see these efforts beginning to deliver tangible results. Moving on to page 11 for comments on the performance of our commercial portfolios. The insurance service result in Norway remained stable this quarter. We achieved higher revenues due to effective pricing measures and benefited from lower large losses. It is also very encouraging that we managed to further reduce our already low cost ratio. This was offset by lower runoff gains and a slight decline in underlying profitability in property and liability insurance, although other product areas such as motor showed increased profitability. We will continue to prioritize profitable growth and maintain high operational efficiency. Our insurance service result in Denmark improved markedly this quarter, primarily due to a better underlying frequency loss ratio and fewer large losses. Profitability for most product lines increased, mainly as a result of affecting pricing measures. We remain committed to further advancing cost efficiency and ensuring sustainable growth across our Danish portfolio. Turning over to page 12. Our Swedish business continues to perform well overall, although this quarter we experienced reduced underlying profitability in commercial motor, private property, and payment protection insurance. The insurance service result was supported by a higher runoff gains, but was negatively impacted by a higher underlying frequency loss ratio and an increase in large losses. We continue to focus on growth and profitability by implementing efficiency measures, investing in technology and optimizing costs. In addition, we are broadening our partner collaborations, most recently by entering a partnership with Svealand for pet insurance. We are also continuing to develop and improve our claims processes, leveraging artificial intelligence for personal injury assessments, a newly launched initiative aimed at enhancing efficiency and accuracy in claims handling. Let's turn to page 13 for comments on our pension business. This segment generated a pre-tax loss of 298 million after adjustment for the contractual service margin. Of this total, 255 million relates to recalculation of reserves in our IFRS 17 accounting, negatively impacting the insurance service result, whereas the result under IFRS 4 remained unaffected. Excluding this and the non-recurring effects in the first quarter of 2025, the insurance service result declined by 21 million, largely attributable to claims associated with the child pension product. It is important to note that the reserve strengthening did not have any impact on the resolvency position. The result for the quarter was also negatively affected by net finance income, following the sharp increase in interest rates during the quarter. The negative return on assets, unwinding and higher profit sharing with customers as interest rates were above guaranteed levels, more than offset the decrease in insurance liabilities caused by the higher interest rates. On a positive note, net income from our unit-linked business continued to improve, underpinned by price adjustments as well as growth in occupational pension members and assets under management compared to the same period last year. Our pension business not only supports our insurance operations, it unlocks attractive opportunities for cross-selling and synergies throughout the company. We are confident that it will continue to generate substantial value across our organization over time. Let's now turn our attention to the investment portfolio as presented on page 14. The capital markets experienced considerable volatility this quarter. In light of these market conditions, we are pleased with the performance of our investment portfolio. Our quarterly results benefited from positive returns on fixed income securities and real estate holdings. On the other hand, higher interest rates, wider credit spreads, and both private and listed equities negatively affected overall performance. The match portfolio generated a return net of insurance finance that was essentially flat, while the free portfolio returned around 70 basis points. Risk in our portfolios remained low, and we maintain a well-balanced asset allocation with a focus on high credit quality. We are confident that our investment strategy positions us well to withstand any further market turbulence. Over to page 15. The Group Solvency Ratio, based on the approved model, was 195% at the end of the first quarter and increased from 188% at the end of 2025. Please note that factoring into the redemption of the Tier 1 loan announced and completed earlier this month, the Solvency Ratio would have been 190%. Solvency II operating earnings and returns from the Free Portfolio made positive contributions to legible loan funds. In line with our established practice, for the calculation, we reduced owned funds by applying a dividend of 80% of profit after tax. The sale of our Baltic business had a favorable effect on owned funds, although this was offset by a reduction in eligible Tier 2 funds, resulting from a lowered capital requirement. We currently hold around 400 million in Tier 2 funds that are not included in eligible owned funds, but anticipate their full inclusion over time. The capital requirement declined due to the strengthening of the Norwegian krona against all relevant currencies, as well as reduced market risk from the life insurance business. The sale of our Baltic operations further lessened the capital requirement. As previously announced, the overall effect of this divestment was a positive 5 percentage points. And with that, I hand the word back to Geir.