Gjensidige Forsikring Asa

Good morning and welcome to the second quarter presentation of Jensidiga. 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 highlights of the quarter, followed by our CFO, Jostein Amdal, who will run through the numbers in further detail. And we have plenty of time for questions after that. Geir please.

Thank you, Mitra, and good morning, everyone. Turning to page two. We generated strong results this quarter, but before discussing them, I would like to highlight a few important developments during the quarter. First, Lisa Legallet, CEO of the pension business, has joined the group management team. This reflects the growing strategic importance of pension within Jensidia and ensures that this business area is represented directly in key strategic discussions and decisions. At the same time, the product pricing and analysis division has been integrated into the private and commercial divisions. This brings key capabilities closer to customers and operations, enabling faster decisions, stronger business ownership and better execution across the group. Second, an important highlight this quarter was the customer dividend payment from the NCD foundation. In May, 3.1 billion kroner was distributed to customers in Norway, corresponding to 11% of premiums paid last year. The customer dividend remains a unique feature in Norway and is highly valued by customers. It represents a tangible financial benefit, strengthens customer loyalty and retention, and reinforces the distinctive mutual heritage. Every year since our IPO in 2010, customers have received dividend payments, underscoring INSEAD's long-standing commitment to sharing value creation with customers. Thirdly, our pension business achieved a shared top ranking in the 2026 recognized occupational pension barometer in Norway. This recognition reflects the strength of our customer offering and confirms the strong position we have established in a rapidly growing and highly competitive market. During the quarter, several new partnerships were established while key agreements were renewed, broadening market access and reinforcing positions in attractive customer segments. Let us turn to page 3 for some comments on this. We have very recently entered into a partnership with Tesla, one of the most distinctive and innovative brands in the mobility market. Tesla has a strong position in Norway, with around one in five new cars sold. As the market leader in Norwegian motor insurance, it is important for Insidia to be well positioned with leading mobility players. The partnership provides us a strong platform for developing relevant insurance solutions that can further strengthen the customer offering over time. We already have a strong position among Tesla owners. By partnering directly with Tesla, we can engage with customers earlier in the purchase process, increasing our opportunities both to attract and retain customers over time. A new agreement with Privatmegleren is an important addition to our partner portfolio. Together with our existing real estate partnerships, it means that we now have a market reach of approximately 45% of private real estate transactions in Norway. We have also entered into a new partnership with Husseierne, a nationwide homeowner association, representing around 300,000 members. In addition, we renewed our long-standing partnership with Tekna, representing more than 118,000 engineers and technology professionals in Norway. These partnerships strengthen our ability to reach attractive customer groups, create new business opportunities, and support profitable growth over time. So, let's turn to page 4. We generated a profit after tax of 2 billion 122 million in the second quarter. This included the announced negative impact from the Danish Supreme Court ruling of workers' compensation, which amounted to 419 million net of reserve releases. Just for this, profit after tax was up year on year driven by a strong insurance service result. Revenue growth continues to be strong at 9.3% in the quarter. We are well positioned for further growth, supported by the ongoing strengthening of the distribution capacity in Denmark, high market growth and improved distribution in pension, and further opportunities from partner agreements and housing initiatives in Norway. In commercial, we will pursue various pockets of profitable growth, and Sweden already has good volume growth. We saw significant improvement in profitability this quarter, with the underlying frequency loss ratio down 4 percentage points, The cost ratio remained at a very competitive level of 11.7%, and profit from our pension business and the financial result for general insurance also contributed to a very strong return on equity of 33.3%. The solvency ratio was robust at 189%. Turning to page 5 for more details. Adjusted for the impact from the Danish court ruling, the insurance service result was 2 billion 794 million, and the combined ratio was 75.2%. I'm very pleased with this very strong result, thanks to continued revenue growth, high operational efficiency, and cost discipline. In terms of the consequences of the Danish court ruling, while some uncertainty remains around how many claims may ultimately be reopened and how the ruling will be applied in practice, the estimate reflects our current best-est assessment. Danish workers' compensation remains an attractive line of business. At the same time, such developments will naturally be reflected in our pricing going forward. The principle is straightforward. Premiums must reflect the underlying risk, and we have both the tools and the discipline to ensure that they do. The financial result in the general insurance business was 786 million this quarter, reflecting positive returns from fixed income instruments and equities. Our pension business delivered a pre-tax profit of 245 million, adjusted for a change in CSM. This was supported by higher net income from finance and continued growth in the Unitlink business. The insurance service result adjusted for CSM was lowered this quarter, mainly due to lower profitability for the child pension product. Over to page 6. Insurance revenue increased by 9.3% this quarter, driven by effective price increases across all segments and helped by some volume growth. In private, growth was driven by both Norway and Denmark, primarily through price increases with additional contribution from higher volumes in Norway. In commercial, revenues also increased across Norway and Denmark, reflecting price increases for all main products. Volume decreased mainly due to the consistent prioritization of profitability over growth, as well as the termination of agreements with the fire mutuals in Norway. Our focus remains on writing the right business at the right price. If that means accepting lower volumes in certain parts of the portfolio, that is a trade-off we are comfortable with, as profitability remains the priority. In Sweden, growth was supported by both price increases and higher volumes. The pricing measures we have already implemented strengthen profitability and give us more flexibility in how we manage pricing going forward. Differentiated pricing will continue to be important as we work to further improve portfolio quality. Price increases will be broadly aligned with expected increases in claims cost, while selected products and customer segments will increase above this level. So, moving to point seven, I will say a few words about how this strategic focus has contributed to building a healthier commercial portfolio. Over the past years, our commercial portfolio in Norway has delivered strong growth, supported by significant price increases and a clear focus on profitability. We have achieved this growth by maintaining strict underwriting discipline. As shown on this slide, portfolio quality has improved, particularly among SME customers, but also for larger corporate customers. Our strong analytical capabilities, disciplined pricing and targeted execution have enabled us to retain more profitable customers, while reducing exposure to customers with weaker profitability. This demonstrates the value of the tools, data and underwriting expertise developed over many years, as well as our ability to steer activities effectively. Our in-house distribution capacity provides us with an important advantage in executing these measures. The strong combination of high distribution efficiency, leading pricing capabilities and solid customer retention has increased our market share by 0.9 percentage points since 2021. Over to page 8. Progress on our operational targets is important, as these are key enablers for delivering on our financial targets. Retention in Norway remained high at 90%, although it was slightly down from last year. This was mainly due to the termination of the agreements with the five mutuals. and in affected regions, efforts are now focused on retaining customers and rebuilding volumes through our existing distribution channels and targeted commercial initiatives. In Denmark, retention remains stable at 87%. We also continue to make good progress on automation and digitalization. The digital distribution index improved further, mainly driven by strong growth in digital sales in private. Distribution efficiency in private also increased. Commercials showed a slight improvement in distribution efficiency, and straight-through processing in Norway was at 41%. Over to page 9. Sustainability remains an important strategic priority for Jenside, and I am pleased with the progress achieved during the quarter. We continue to make tangible advances across several key areas, while maintaining a clear focus on the ambitious targets set for 2030. While there is still work to be done, the results achieved so far demonstrate that our efforts are having an impact. The external recognition and ratings we have received provide valuable confirmation that we are moving in the right direction. And they serve as a strong motivation to continue strengthening our contribution to sustainable development. So with that, I will leave the word to Jostein to present the second quarter results in more detail.

Thank you, Geir, and good morning, everybody. I'll start on page 10. We delivered a profit before tax of 2 billion and 790 million in the second quarter, with negative impacts from workers' compensation in Denmark and lower results from investments. The general insurance service result adjusted for this impact was up almost 600 million. The pension result was broadened in line with last year, with higher net income from finance and unit-linked results, and a lower insurance service result. Net finance was negatively impacted by revaluations of real estate, partly offset by higher earning yield and lower credit spreads. The result from other items was lower compared to the second quarter last year, mainly due to profit transfers from Net Repairs Insurance and higher other expenses from General Insurance. Higher results from Gensidig Mobility Group, lower interest on subordinated loans, and decreased amortization of intangible assets contributed positively. Turning over to page 11 to comment on the segments, starting with private. Private Norway delivered another strong quarter, with the insurance service result up 168 million from the second quarter last year. The improvement was due to continued revenue growth and a 1.4 percentage point improvement in the underlying frequency loss ratio, driven by motor. Claims inflation has been broadly in line with our expectations. The underlying drivers are still present, but we now have greater confidence in our expected range of 4-7% for motor and 4-6% for property in Norway. We continue to see somewhat lower inflationary pressure in Denmark and Sweden than in Norway. And as Geir mentioned, with strong profitability restored, pricing will be in line with expected claims cost development, differentiated by customer and product, and for selected products and customer segments, above expected claims cost. Turning to our private portfolio in Denmark, performance continued to improve this quarter. The insurance service result reached 74 million, up 71 million from the second quarter last year, driven primarily by an improved margin. The underlying frequency loss ratio improved by 8.7 percentage points, supported by pricing measures in property and motor. The cost ratio was reduced by 1.9 percentage points compared with the second quarter last year. Implemented cost efficiency measures, together with cost discipline, are improving efficiency in our Danish private business. Moving on to page 12 for comments on the performance of our commercial portfolios. The insurance service result in Norway increased significantly by 501 million from the second quarter last year, mainly driven by lower large losses, an improved margin and revenue growth. The underlying frequency loss ratio improved by 4.2 percentage points, driven by all main products. The cost ratio was 8.1%. The insurance service result in Denmark also improved this quarter, primarily driven by higher profitability. Higher runoff gains and revenue growth also contributed positively. The underlying loss ratio improved by 3.5 percentage points, reflecting effective pricing measures across all main products. The cost ratio was 11.7%. We maintain a strong focus on cost efficiency in both Norway and Denmark. Turning over to page 13. Our Swedish business reported a 56 million decrease in the insurance service result compared with the second quarter last year, mainly due to runoff losses. Revenue growth remained solid. The underlying frequency loss ratio increased by 1.3 percentage points, mainly driven by property and motor in the prior portfolio, as well as the higher share of leisure boat insurance. The increase in the underlying frequency loss ratio should be seen in the context of normal inherent volatility in general insurance and the seasonality in leisure boat insurance, rather than a negative trend. We are very pleased with our partnership with Svenska Sjø, providing us with efficient access to attractive customer groups and high quality leads. The cost ratio improved by one percentage point, supported by higher insurance revenue and continued cost efficiency measures. Let's now turn to page 14 for comments on our pension business, which delivered a pre-tax profit adjusted for changes in CSM of 245 million. This was 40 million lower than the same quarter last year. Net income from our unit-linked business increased slightly. This reflected higher management income driven by growth in assets and management. Higher administration fields also contributed positively, supported by growth in the number of occupational pension members and implemented price increases. This was partly offset by higher expenses, mainly related to increased staffing to support higher business volumes as well as higher IT costs. Net finance income increased, reflecting running yield and a slight decrease in interest rates. The insurance service result adjusted for the CSM was lower, mainly due to weaker performance in the child pension product. We have taken measures to improve profitability that will yield results over time, including pricing actions and changes in terms and conditions. Let's now turn to the investment portfolio on page 15. The result for the quarter reflected positive returns from both fixed income instruments and equities. This was supported by a high running yield and lower credit spreads. The real estate portfolio had a negative return, driven by negative value adjustments in line with the general market and high yield requirements. The portfolio consists of six high-quality properties in Oslo Central Business District and is more or less fully rented with long leases and solid tenants. The matched portfolio generated a return of 0.6% net of insurance finance, whereas the free portfolio delivered 0.5%. Overall, portfolio risk remained low. We continue to maintain a well-balanced asset allocation with a clear focus on high credit quality. This gives us confidence that the investment strategy remains well positioned to withstand further market turbulence. Over to page 16. The group's solvency ratio remained strong at 189% at the end of the second quarter. Solvency II operating earnings contributed positively to eligible loan funds, together with returns from the free portfolio. As usual, this was partly offset by the firm-like dividend, which reduced owned funds by 80% of profit after tax. The redemption of the Tier 1 loan in April reduced eligible owned funds by 713 million. At the same time, a higher share of Tier 2 capital was eligible this quarter. We still hold 200 million in Tier 2 funds that are not currently included in eligible owned funds, but expect these to be included over time. Capital requirements increased during the quarter, driven by growth. A significant part of the increase came from continued growth in the unit-linked business, with higher lapse risk and market risk. The positive impact from this growth is reflected in the owned funds. In addition, higher capital requirements for equities under the standard formula contributed to increased market risk in the life insurance business. Overall, this leaves us with a strong capital position, providing continued flexibility to support profitable growth and shareholder distributions. With that, I hand the word back to Geir.