Interim report Q1 2024

Gjensidige Pensjonsforsikring AS

Highlights

First quarter report 2024

In the following, the figures in brackets indicate the amount or percentage for the corresponding period in the previous year.

First quarter

• Profit/loss before tax expense: NOK 60.9 million (59.2)
• Operating income: NOK 156.8 million (138.7)
• Operating expenses: NOK 110.4 million (95.6)
• Operating margin: 29.60 per cent (31.07)
• Retuon equity, annualised: 21.9 per cent (21.6)
• Total eligible own funds to meet the SCR: NOK 2,546.5 million (2,073.8)
• SCR margin: 133.3 per cent (139.8)
• Assets under management: NOK 75,966.1 million (60,517.9)

Profit performance

1 Operating margin = net operating income/total income

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Oslo, 23 April 2024

The Board of Gjensidige Pensjonsforsikring AS

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Gjensidige Pensjonsforsikring AS

Income statement

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Gjensidige Pensjonsforsikring AS

Statement of cash flows

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Notes

1. Accounting policies

The financial statements as of the first quarter of 2024, concluded on 31 March 2024, comprise Gjensidige Pensjonsforsikring AS (GPF) and associated companies. Except of the changes described below, the accounting policies applied in the interim report is the same as those used in the annual report for 2023.

The financial statements as of the first quarter of 2024 have been prepared in accordance with the Norwegian Accounting Act and Norwegian Financial Reporting Regulations for Insurance Companies (FOR 2015-12-12-1824). The interim report does not include all the information required in a complete annual report and should be read in conjunction with the annual report for 2023.

The preparation of interim accounts involves the application of assessments, estimates and assumptions that affect the use of accounting policies and the amounts recognised for assets and liabilities, revenues and expenses. The actual results may deviate from these estimates. The most material assessments involved in applying the accounting policies and the most important sources of uncertainty in the estimates are the same in connection with preparing the interim report as in the annual report for 2023.

New standards adopted

Buffer fund

Rules on a pooled and customer-distributed buffer fund are introduced for private guaranteed pension products with effect from 1 January 2024.

The buffer fund replaced previous additional statutory reserves and market value adjustment reserve for private guaranteed pension products. The buffer fund is distributed among the contracts and can be used to cover a negative interest result until the contract's annual interest rate guarantee. If the company does not achieve a retuin one year that corresponds to the annual interest rate guarantee, the buffer fund can be withdrawn from the contract so that the company is able to meet the annual interest rate guarantee. This means that the buffer fund is reduced and that the premium reserve is increased accordingly on the contract.

Other

All amounts are shown in NOK millions unless otherwise indicated. Due to the rounding-off to differences, figures and percentages may not add up to the exact total figures.

A complete or limited audit of the interim report has not been carried out.

2. Financial assets and liabilities

IFRS 9 addresses accounting for financial instruments and is effective from 1 January 2023. On 19 October 2022 the Ministry of Finance determined regulatory rules for the pension providers The changes allow the pension providers to use amortised cost in the valuation of certain investments, as an exception to the general rule that financial instruments must be valued in accordance with IFRS 9.

Measurement categories

The classification of financial instruments at initial recognition depends on their contractual terms and the business model for managing the instruments.

Equity instruments do not pass the SPPI (solely payment of principal and interest) and are classified at fair value through profit or loss (FVTPL). Debt instruments are classified based on

Gjensidige Pensjonsforsikring AS

the business model and on the cash flow characteristics of the financial asset.

The financial assets in Pension's group policy portfolios are intended to correspond to the cash flows from the underwriting business, with debt instruments with a duration and currency that are tried matched the duration and currency of the cash flows for the underwriting business. The investments at amortised cost at IAS39 pass the SPPI-test and will be accounted according to amortised cost. All other financial assets are classified at fair value through profit or loss (FVTPL).

Financial liabilities are measured at amortised cost (subordinated loans).

Recognition and derecognition

Financial instruments are recognised when GPF becomes a party to the instrument's contractual terms. Initial recognition is at fair value. Except for financial assets and financial liabilities recognised at FVTPL, transaction expenses are added to this amount. For financial assets and liabilities measured at FVTPL transaction expenses are recognised in profit or loss when they incur. Normally initial recognition will be equal to the transaction price. Subsequent to initial recognition the instruments are measured as described below.

Financial assets are derecognised when the contractual rights to cash flows from the financial asset expire, or when GPF transfers the financial asset in a transaction where all or practically all the risk and rewards related to ownership of the assets are transferred.

Financial assets and liabilities at fair value through profit or loss

Financial assets and liabilities at fair value through profit or loss are measured at fair value at the reporting date. Changes in fair value are recognised in profit or loss, in the accounting line Unrealised gains and losses on investments.

The category at fair value through profit or loss comprise the classes shares and similar interests, bonds and other fixed- income securities, loans and receivables, other assets and receivables, cash and cash equivalents and other financial assets.

Financial assets at amortised cost

Financial assets are measured at amortised cost using a three- stage model for impairment described in IFRS 9 at reporting date. Credit loss allowance is calculated on change in credit risk from the financial asset's first entry into the portfolio to reporting date.

The category financial assets at amortised cost comprises the class bonds, both domestic and global.

Financial liabilities at amortised cost

Financial liabilities measured at amortised cost using the effective interest method. When the time horizon of the financial liability's due time is quite near in time the nominal interest rate is used when measuring amortised cost.

The category financial liabilities at amortised cost comprises subordinated debt.

Definition of fair value

Subsequent to initial recognition, investments at fair value through profit or loss are measured at the amount each asset/liability can be settled at in an orderly transaction between market participants on the measurement date, based on the prevailing market conditions.

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