23 – caPital Ratio 22 – eVents afteR tHe Balance sHeet date On 23 January 2012, a binding agreement was entered into for the sale of four shopping centres in the property portfolio in the amount corresponding to their carrying amount. The transaction is expected to be completed with accounting effect in the first quarter 2012.
1 The administration provision was abolished as from 2011 by legislative changes dated 17 December 2010. The figures for year 2010 have not been restated.
results 129 Gjensidige Annual Report 2011 24 – solVencY maRgin noK million 2011 2010
Restricted bank deposits Source-deductible tax accounts 69.7 65.2 Securities placed as security for insurance operations 13.8 13.9 Deposits placed as security for insurance operations 8.3 8.3 total restricted bank deposits 91.8 87.5
results Gjensidige Annual Report 2011 27 – sHaRe-Based PaYment description oF the share-Based paYment arranGements As at 31 December 2011, Gjensidige has the following share-based payment arrangements: equitY-settled share-Based paYment With effect from 2011, Gjensidige established equity-settled share-based payment for executive personnel.
No bonuses in the form of shares have been awarded to executive personnel in 2011.
purchase oF shares at a discount in connection With the listinG oF the companY In connection with the listing on the stock exchange of Gjensidige Forsikring ASA on 10 December 2010, all employees of the Gjensidige Group, with the exception of employees of Gjensidige Baltic, were given an opportunity to buy shares in the Company.
As at 31 December 2010, the participants had invested NOK 55.2 million in the share purchase scheme.
Fair Value measurement The fair value of the bonus shares allocated through the share savings programme is calculated on the basis of the share price at grant date, taking into account the likelihood of the employee still being employed after two years and that he/she has not sold his/her shares during the same two-year period.
The following assumptions were used in the calculation of fair value at the time of allocation noK million 2011 2010
Stock saving programme for employees in 2011 17 0.9 Stock purchase offering for employees allocated in 2010 17 7.5
results 131 Gjensidige Annual Report 2011 28 – eaRnings PeR sHaRe noK million 2011 2010
reconciliation oF outstandinG Bonus shares The number of and weighted average exercise price for bonus shares in the share savings programme for each of the following groups are noK million number of bonus shares 2011 weighted average exercise prices of bonus shares in 2011 number of bonus shares weighted average exercise prices of bonus shares in 2010
Outstanding 1 January N/A N/A Granted during the period 51,184 N/A N/A Forfeited during the period N/A N/A Cancelled during the period (437) N/A N/A Exercised during the period N/A N/A Expired during the period N/A N/A outstanding 31 december 50,747 n/a n/a Exercisable 31 December N/A N/A
Outstanding bonus shares as of 31 December 2011 have an average remaining life of 1.88 years.
Options granted in the 2011 financial year had a weighted average fair value of NOK 52.27 at the time of allocation. The fair value is equivalent to the market value of the share at the time of allocation.
132 results inCOMe stateMent gjensiDige FOrsikring asa nOk million notes 1.1.-31.12.2011 1.1.-31.12.2010 premiums
Ceded reinsurance premiums (512.4) (438.7) premiums written, net of reinsurance 16,727.3 15,874.5 Change in gross provision for unearned premiums 0.8 (218.7)
Change in provision for unearned premiums, reinsurerers' share (10.3) 18.9 total earned premiums, net of reinsurance 16,717.7 15,674.7
insurance-related operating expenses Insurance-related administration expenses incl. commissions for received reinsurance and sales expenses 4, 17 (2,647.1) (2,506.6)
Change in security provisions etc. Change in provision for insufficient premium level (0.1) Change in security provision (47.5) 69.3 total change in security provisions etc. (47.5) 69.2 profit/(loss) of technical account general insurance 1,849.0 1,368.2
profit/(loss) of non-technical account 1,116.5 1,381.7 profit/(loss) before tax expense 2,965.5 2,749.9 prOFit/(lOss) beFOre COMpOnents OF Other COMprehensive inCOMe 2,094.4 2,515.1
Components of other comprehensive income Actuarial gains and losses on defined benefit plans - employee benefits (337.1) (122.9) Exchange differences from foreign operations 0.4 4.5 Tax on components of other comprehensive income 93.6 34.6 tOtal COMprehensive inCOMe 1,851.3 2,431.3 1 Restated as a consequence of abolished administration reserve as well as implementation of the increase in claims handling costs in the claims provision and reclassification of indirect claims handling costs.
Gjensidige Annual Report 2011 results nOk million notes 31.12.2011 restated 1 eQUity anD liabilities paid in equity Share capital 1,000.0 1,000.0 Own shares (0.1) (0.1) Premium reserve 1,430.0 1,430.0 Other paid in equity 7.6 6.7 total paid in equity 2,437.5 2,436.6 retained equity Funds etc.
Fund for unrealised gains 158.4 150.7 Natural perils fund provision 2,462.8 2,615.7 Guarantee scheme provision 577.5 535.6 Other retained earnings 12,993.9 13,316.3 total retained equity 16,192.6 16,618.4 insurance-related liabilities in general insurance, gross Provision for unearned premiums, gross 4, 13 6,497.8 6,406.7 Claims provision, gross 4, 13, 21 25,481.1 24,057.5 Provision for premium discounts and other profit agreements 81.6 82.0 Security provision 4 2,445.9 2,398.4 total insurance-related liabilities in general insurance, gross 34,506.4 32,944.6 provision for liabilities Pension liabilities 14 916.0 662.3 Current tax 16 922.5 380.0 Deferred tax liabilites 15 97.4 62.3 Other provisions for liabilities 1,935.9 1,104.6 liabilities Liabilities related to direct insurance 9 215.8 212.0 Liabilities related to reinsurance 9 220.8 98.1 Financial derivatives 9 67.9 105.0 Accrued dividend 2,274.7 2,350.0 Other liabilities 9, 15 957.2 907.4 Liabilities to subsidiaries and associates 9, 21 134.6 57.0 total liabilities 3,871.0 3,729.6 accrued expenses and deferred income Other accrued expenses and deferred income 9, 15 178.5 130.6 total accrued expenses and deferred income 178.5 130.6 tOtal eQUity anD liabilities 59,121.8 56,964.4 1 Restated as a consequence of abolished administration reserve as well as implementation of the increase in claims handling costs in the claims provision.
actuarial gains/losses on pension total class ii capital total equity equity as at 31.12.2009 1,000.0 1,430.0 0.4 (1,986.1) 19,515.0 19,959.3 Reclassification of administration provision to new accounting policy on provision for claims handling costs (1,054.1) (1,054.1) Re-allocation of excess administration provision in connection with new requirements on provision for claims handling costs 49.5 49.5
1.1.2010-31.12.2010 restated Profit/(loss) before components of other comprehensive income 2,515.1 2,515.1
Accrued dividend (2,350.0) (2,350.0) Increase in natural perils fund through purchase of portfolio 16.0 16.0 Equity-settled share-based payment transactions 6.7 6.7 Tax on items recognised directly in equity 13.2 13.2 1.1.2011-31.12.2011
Cash flow from investing activities Net receipts/payments from sale/aquisition of subsidiaries and associated companies 235.1 (2,373.5) Net receipts/payments on sale/aquisition of owner-occupied property, plant and equipment 21.0 (26.9) Dividends from subsidiaries 810.1 Dividends from associated companies 177.4 36.2 Group contributions received 181.1 244.5 Group contributions paid (41.4) (194.2) net cash flow from investing activities 1,383.3 (2,313.9)
chANGES IN AccOuNTING POlIcIES In connection with changes in the Insurance Activities Act on technical insurance obligations, effective 1 January 2011, it was determined that the administrations reserve is no longer included in these regulations. The administrations reserve will hereby instead include indirect claims settlement costs in connection with insurance events which on a given point in time are incurred, but not settled (IBNS-claims), cf. the Insurance Activities Act section 12-12, second paragraph.
The following International Financial Reporting Standards (IFRS) and interpretation statements have been published up until 8 February 2012, without them having entered into force or having been implemented early.
• Based on our preliminary assessments and on the basis of Gjensidige’s current operations, neither IFRS 10 Consolidated Financial Statements nor IFRS 11 Joint Arrangements, which enter into force on 1 January 2013, but which it is uncertain whether the EU will have approved by that date, will have a significant effect on our accounting items.
• Amendments to IAS 19 Employee Benefits, which enter into force on 1 January 2013, will, using the same interest rate to calculate the expected return on the pension assets as for discounting the pension commitments, entail higher recognised pension costs, but it is not expected that this change will be significant for the overall profit/loss. The other amendments will not have any significant effect for Gjensidige.
BASIS OF mEASuREmENT The financial statements have been prepared based on the historical cost principle with the following exceptions • derivatives are measured at fair value • financial instruments at fair value through profit or loss are measured at fair value • financial assets available for sale are measured at fair value • investment properties are measured at fair value
SEGmENT REPORTING According to IFRS 8, the operating segments are determined based on the Group’s internal organisational management structure and the internal financial reporting structure to the chief operating decision maker. In Gjensidige Insurance Group the Senior Group Management is responsible for evaluating and following up the performance of the segments and is considered the chief operating decision maker within the meaning of IFRS 8. Gjensidige reports on two operating segments, General insurance Private Norway and General insurance Commercial Norway, which are independently managed by managers responsible for the respective segments depending on the products and services offered, distribution and settlement channels, brands and customer profiles. Identification of the segments is based on the existence of segment managers who report directly to the Senior Group Management/CEO and who are responsible for the performance of the segment under their charge. In addition the company comprises a Swedish and Danish branch that is reported as a part of the segment Nordic in the consolidated financial statements.
REcOGNITION OF REVENuE ANd EXPENSES PREmIumS Insurance premiums are recognised over the term of the policy. Gross premiums written include all amounts the company has received or is owed for insurance contracts where the insurance period starts before the end of the accounting period. At the end of the period provisions are recorded, and premiums written that relate to subsequent periods are adjusted for in Change in gross provision for unearned premiums in the income statement.
AllOcATEd RETuRN ON INVESTmENTS The allocated return on investments is calculated based on the average of the technical provisions throughout the year. The average yield on government bonds with three years remaining until maturity is used for the calculation. The Financial Supervisory Authority of Norway has calculated the average technical yield for 2011 and 2010 to be 2.3 per cent and 2.5 per cent, respectively. The allocated return on investments is transferred from the non-technical account to the technical account.
clAImS INcuRREd IN GENERAl INSuRANcE Claims incurred consist of gross paid claims less reinsurers’ share, in addition to a change in gross provision for claims, also less reinsurers’ share. Direct and indirect claims processing costs are included in claims incurred. The claims incurred contain run-off gains/losses on previous years’ claims provisions.
FOREIGN cuRRENcY FOREIGN cuRRENcY TRANSAcTIONS Transactions in foreign currencies are translated to the respective functional currencies at exchange rates at the date of the transaction.
Exchange gains and losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely in the foreseeable future, are considered to form a part of the net investment in the foreign branch and are recognised in other comprehensive income.
Depreciation Each component of owner-occupied property, plant and equipment are depreciated using the straight-line method over estimated useful life. Land is not depreciated. The estimated useful lives for the current and comparative periods are as follows • owner-occupied property 10-50 years • plant and equipment 3-5 years
INVESTmENT PROPERTIES Investment properties are properties held either to earn rental income or for capital appreciation, or for both. These properties are not used in production, deliveries of goods and services, or for administrative purposes.
Subsequent to initial recognition investment properties are measured at fair value, and any changes in fair value are recognised in profit or loss.
clAImS PROVISION, GROSS The claims provision comprise provisions for anticipated future claims payments in respect of claims incurred, but not fully settled at the reporting date. These include both claims that have been reported to the company (RBNS – reported but not settled) and those that have not yet been reported (IBNR – incurred but not reported). The provisions related to reported claims are assessed individually by the Claims Department, while the IBNR provisions are calculated based on empirical data for the time it takes from a loss or claim occurring (date of loss) until it is reported (date reported). Based on experience and the development of the portfolio, a statistical model is prepared to calculate the scope of post-reported claims. The appropriateness of the model is measured by calculating the deviation between earlier post-reported claims and post-reported claims estimated by the model.
FINANcIAl INSTRumENTS Financial instruments are classified in one of the following categories • at fair value through profit or loss • available for sale • investments held to maturity • loans and receivables • financial derivatives • financial liabilities at amortised cost
REcOGNITION ANd dEREcOGNITION Financial assets and liabilities are recognised when Gjensidige becomes a party to the instrument’s contractual terms. Initial recognition is at fair value. For instruments that are not derivatives or measured at fair value through profit or loss, transaction expenses that are directly attributable to the acquisition or issuance of the financial asset or the financial liability, are included. Normally the initial recognition value will be equal to the transaction price. Subsequent to initial recognition the instruments are measured as described below.
AT FAIR VAluE ThROuGh PROFIT OR lOSS Financial assets and liabilities are classified at fair value through profit or loss if they are held for trading or are designated as such upon initial recognition. All financial assets and liabilities can be designated at fair value through profit or loss if • the classification reduces a mismatch in measurement or recognition that would have arisen otherwise as a result of different rules for the measurement of assets and liabilities
AVAIlABlE FOR SAlE Financial assets available for sale are non-derivative financial assets that have been recognised initially in this category, or are not recognised initially in any other category. Subsequent to initial recognition financial assets in this category are measured at fair value, and gain or loss is recognised in other comprehensive income except for impairment losses, which are recognised in profit or loss.
INVESTmENTS hEld TO mATuRITY Investments held to maturity are non-derivative financial assets with payments that are fixed or which can be determined in addition to a fixed maturity date, in which a business has intentions and ability to hold to maturity with the exception of • those that the business designates as at fair value through profit or loss at initial recognition • those that meet the definition of loans and receivables
FINANcIAl lIABIlITIES AT AmORTISEd cOST Financial liabilites are 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.
dEFINITION OF AmORTISEd cOST Subsequent to initial recognition, investments held to maturity, loans and receivables and financial liabilities that are not measured at fair value are measured at amortised cost using the effective interest method. When calculating effective interest rate, future cash flows are estimated, and all contractual terms of the financial instrument are taken into consideration. Fees paid or received between the parties in the contract and transaction costs that are directly attributable to the transaction, are included as an integral component of determining the effective interest rate.
An assessment is first made to whether objective evidence of impairment of financial assets that are individually significant exists. Financial assets that are not individually significant or that are assessed individually, but not impaired, are assessed in groups with respect to impairment. Assets with similar credit risk characteristics are grouped together.
If a decline in fair value of an available-for-sale financial asset, compared to cost, is significant or has lasted longer than nine months, the cumulative loss – measured as the difference between the historical cost and current fair value, less impairment loss on that financial asset that previously has been recognised in profit or loss - is removed from equity and recognised in profit or loss even though the financial asset has not been derecognised.
dIVIdENd Dividend from investments is recognised when the company has an unconditional right to receive the dividend. Propsed dividend is recognised as a liability in accordance with the Accounting Act and Regulations on Simplified Application of International Accounting Standards (FOR 2008-01-21 nr. 57). This implies that dividend reduces equity in the fiscal year the dividend provision relates to.
PROVISIONS Provisions are recognised when the company has a legal or constructive
Gjensidige Annual Report 2011 results obligation as a result of a past event, it is probable that this will entail the payment or transfer of other assets to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
PENSIONS Gjensidige has both defined contribution and defined benefit plans for its employees. The defined benefit plan has been placed in a separate pension fund and is closed to new employees.
TAX Income tax expense comprises the total of current tax and deferred tax.
cuRRENT TAX Current tax is tax payable on the taxable profit for the year, based on tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
cuRRENT ANd dEFERREd TAX Current tax and deferred tax are recognised as an expense or income in the income statement, with the exception of deferred tax on items that are recognised in other comprehensive income, where the tax is recognised in other comprehensive income, or in cases where deferred tax arises as a result of a business combination. For business combinations, deferred tax is calculated on the difference between fair value of the acquired assets and liabilities and their carrying amount. Goodwill is recognised without provision for deferred tax.
A total of 257,175 shares at an average share price NOK 64.13 have in 2011 been acquired to be used in Gjensidige’s share savings scheme. Of this 205,434 shares have been transferred to employees. In addition 17,969 bonus shares have been allocated to employees in Sweden and Denmark from Gjensidige’s own shares. Thus, the increase in own shares throughout the year amounts to 33,722.
EXchANGE dIFFERENcES Exchange differences consist of exchange differences that occur when converting foreign subsidiaries, and when converting liabilities that hedge the company’s net investment in foreign subsidiaries.
dIVIdENd Proposed and approved dividend nOk million 2011 2010 As at 31 December NOK 4.55 per ordinary share (4.70) 2,275.0 2,350.0
Gjensidige Annual Report 2011 results 3 – ManageMent OF insUranCe anD FinanCial risk For information about insurance and financial risk please refer to note 3 in the notes to the consolidated financial statements, that covers both
INVESTmENT PROPERTIES Fair value is based on market prices and generally accepted valuation models where there are no market prices. A key parameter of the valuation is the long-term required rate of return for the individual property. A further description of the real estate price risk and a sensitivity analysis of investment properties are given in note 8.
PlANT ANd EquIPmENT, OWNER-OccuPIEd PROPERTY ANd INTANGIBlE ASSETS Plant and equipment, owner-occupied property and intangible assets are assessed annually to ensure that the depreciation method and the depreciation period used are in accordance with useful life. The same applies to residual value. Impairment losses will be recognised if impairment exists. An ongoing assessment of these assets is made in the same manner as investment properties.
FINANcIAl ASSETS ANd lIABIlITIES The fair value of financial assets and liabilities that are not traded in an active market (such as unlisted shares) is determined by means of generally accepted valuation methods. These valuation methods are based primarily on the market conditions at the reporting date. See note 9.
lOANS ANd REcEIVABlES For financial assets that are not measured at fair value, it is assessed whether there is objective evidence that there has been a reduction in the value of a financial asset or a group of financial assets on each reporting date. See note 10.
Gross premiums earned 2,344.7 4,440.1 1,859.5 2,580.6 220.1 686.6 436.5 166.4 8,294.4 Gross claims incurred (1,802.5) (3,016.0) (1,288.6) (1,727.4) (131.3) (516.8) (300.8) (117.1) (5,884.5)
Incurred previous years 23.6 75.2 33.8 41.5 1.9 17.0 17.8 6.1 141.7 gross claims incurred (1,802.5) (3,016.0) (1,288.6) (1,727.4) (131.3) (516.8) (300.8) (117.1) (5,884.5)
Underwriting result gross claims incurred technical provisions Provision for unearned premiums, gross 422.6 707.8 375.5 105.7 269.8 147.6 201.5 48.9 37.7 10.0 15.8 7.3 511.8 2,486.4
Marine anD energy insUranCes inWarD reinsUranCe Other nOk million blue water hull Coastal hull energy total marine and energy insurances proportional nonproportional
148 results nOk million goodwill Customer relationship trademarks internally developed software
Cost As at 1 January 2010 152.0 15.8 272.4 881.2 1,321.4 Additions 899.2 335.2 53.4 105.2 54.8 1,447.8 Additions from internal development 29.8 29.8 Exchange differences (15.6) (8.7) (1.5) (0.7) (1.6) (28.1) as at 31 December 2010 1,035.6 342.4 51.8 406.7 934.4 2,770.9 Uncompleted projects 75.7 75.7 as at 31 December 2010, including uncompleted projects 1,035.6 342.4 51.8 482.4 934.4 2,846.5 amortisation and impairment losses As at 1 January 2010 (1.8) (133.3) (881.3) (1,016.3) Amortisation recognised during the period (34.4) (7.6) (87.1) (8.1) (137.1) Exchange differences 0.5 0.2 0.5 0.2 1.6 as at 31 December 2010 (35.6) (7.4) (219.8) (889.1) (1,151.9)
Cost As at 1 January 2011 1,035.6 342.4 51.8 406.7 934.4 2,770.9 Additions through merger 228.7 85.3 10.0 1.2 325.1 Additions from internal development 137.4 137.4 Disposals (126.0) (881.2) (1,007.2)
Amortisation method N/A Straight-line Straight-line Straight-line Straight-line Useful life (year) N/A 10 10 5-8 5-10 5 – intangible assets
The company’s intangible assets are either acquired or internally developed. Goodwill and customer relationships are acquired through acquisition of portfolios, and are a result of a purchase price allocation of initial cost of the acquisition. Internally developed software is developed for use in the insurance business. External and internal assistance used in relation with implementation or substantial upgrade of software, including adjustment of standard systems, are capitalised as intangible assets. Amortisation is included in Insurance-related administration expenses including commissions for received reinsurance and sales expenses.
Disposals of other intangible assets concerns amortized insurance portfolios. None of the intangible assets have undetermined useful lives.
An annual assessment of impairment was carried out in the third quarter 2011. There has also been carried out indication assessments during other quarters in order to assess whether there is new evidence that calls for a new impairment assessment.
lEVEl OF cOmBINEd RATIO (cR) The expected level CR level is both in the growth period and when estimating the terminal value considered to be from 91.9 to 97.7.
growth rate The growth rate is considered to be 3.0 per cent. This is based on the following assumptions
Cr increases by 2 % next 3 years all circumstances occur simultaneously
For the whole company 2011 Gjensidige Bank Holding (group) 16,514.9 1,292.9 15,222.0 376.3 48.7 N/A Gjensidige Norge AS 1.1 1.1 N/A Gjensidige Pensjon og Sparing Holding (group) 8,876.0 587.3 8,288.7 532.7 44.5 N/A Glitne Invest (group) 572.4 518.1 54.3 323.7 133.5 N/A Oslo Areal AS 5,629.6 4,858.4 771.3 265.0 N/A Gjensidige Baltic 736.7 311.4 425.3 395.8 19.1 N/A Samtrygd Eigedom AS 1.4 1.4 N/A Strandtorget Drift AS 6.2 6.2 N/A Strandtorget Eiendom AS 2.5 0.5 N/A Tennant Holding AB 10.1 8.5 1.6 199.1 220.5 N/A Gjensidiges Arbejdsskadeforsikring A/S 4,663.9 553.1 4,110.7 277.8 43.2 N/A Nykredit Forsikring A/S 1,481.2 437.3 1,043.9 155.6 93.6 N/A total subsidiaries 38,496.0 8,576.3 29,917.8 2,261.1 868.2 2 Operating income. For companies where financial income is operating income, financial income is included. For other companies financial income is not included.
Gjensidige Annual Report 2011 results assOCiates nOk million registered office interest held
sUbsiDiaries – aDDitiOnal inFOrMatiOn nOk million assets equity liabilities revenues 2 profit/(loss)
assOCiates – aDDitiOnal inFOrMatiOn nOk million assets equity liabilities revenues 2 profit/(loss)
For the whole company 2011 Storebrand ASA 401,442.0 18,777.0 382,665.0 38,225.0 681.0 3,404.2 SpareBank 1 SR-Bank 131,142.0 9,757.0 121,385.0 3,267.0 1,081.0 843.0 Bilskadeinstituttet AS 5.0 4.7 0.3 1.3 0.1 N/A Vervet AS 115.6 18.0 96.1 0.1 N/A total associates 532,704.6 28,556.7 504,146.4 41,493.4 1,762.1 assOCiates – aDDitiOnal inFOrMatiOn nOk million assets equity liabilities revenues 2 profit/(loss)
The investment in SpareBank1 SR-Bank is classified as investments in an associate and is carried at cost. Gjensidige Forsikring ASA owns 16.3 per cent of the primary certificate capital and 10.3 per cent of the equity in the bank, and has not, based solely on the interest held alone, significant influence. However, the company is represented in both the board in SpareBank1 SR-Bank and the nomination committee. This gives Gjensidige Forsikring ASA significant influence and thus the opportunity to participate in the financial and operational decissions of the bank.
Cost As at 1 January 2010 243.9 594.6 838.5 Additions 107.5 107.5 Disposals (99.1) (22.2) (121.3) Exchange differences (1.1) (1.1) as at 31 December 2010 144.8 678.8 823.5 Uncompleted projects 53.5 53.5 as at 31 December 2010, including uncompleted projects 144.8 732.3 877.1
Depreciation for the year (6.0) (78.9) (84.9) Disposals 36.5 6.2 42.7 Exchange differences 0.3 0.3 Impairment losses 2 (2.2) (2.2)
Cost As at 1 January 2011 144.8 678.8 823.5 Additions through merger 5.4 5.4 Additions 55.8 55.8 Disposals (28.5) (28.0) (56.5) Exchange differences (0.1) (0.1) as at 31 December 2011 116.3 711.8 828.0 Uncompleted projects 32.6 32.6 as at 31 December 2011, including uncompleted projects 116.3 744.4 860.7
Note 8 on investment properties. The valuation was not based on observeable market prices or recent transactions. The carrying amount of the property before the impairment was NOK 16.8 million.
Gjensidige Forsikring carries investment properties at fair value. Investment properties consist of commercial properties that are rented to tenants outside the Group, or are aquired in accordance with the company’s capital management strategy. Properties used by Group companies are classified as owner-occupied property, see note 7. In properties that are both rented to tenants outside the Group and that are used by the Group’s own business, the parts held for rent that can be sectioned are classified as investment property.
Gjensidige Forsikring owns no investment properties outside of Norway. The average rental period is 4.8 years, and the portfolio of investment properties includes offices and shopping centres.
Gjensidige Forsikring’s own valuation model has been used both in the quarterly financial statements and at year end. In addition, two independent external advisors were brought in to value selected parts of the portfolio at year end. From 2011 onwards, Gjensidige Forsikring will use a new valuation model. This new model had no effect on financial statements in 2011.
As at December 2011 there are contractual obligations to tenants for renovation of NOK 1.0 million (2.0).
There are no loans with collateral in investment properties in 2010 or 2011.
model relies on a semi-annually in arrears cash flow method. The most important inputs are yield, market rent, contractual rent, potentially vacant premises, the properties’ long-term normalised operating costs and any investment requirements. The method maps all incomes and all expenses in a given investment horizon (usually ten years) so that net the cash flow is given yearly for each property. Thereafter, the present value is calculated using this cash flow based on real yield adjusted for expected inflation. Present value of the cash flow and present value of the remaining value compose the cash flow value of the property, and this is considered as the market value.
Financial liabilities Financial derivatives Financial derivatives at fair value through profit or loss 67.9 67.9 105.0 105.0
VAluATION BASEd ON NON-OBSERVABlE mARkET dATA When neither quoted prices in active markets nor observable market data is available, the fair value of financial assets/liabilities is estimated based on valuation techniques which are based on non-observable market data.
Value) as reported by the fund administrators in accordance with IPEV guidelines (International Private Equity and Venture capital Valuation) set out by the Equity Venture Capital Association. The NAV values are estimated by the fund administrators by using the valuation techniques best suited to estimate fair value, given the actual circumstances of each underlying investment. Because of late reporting from the funds, the NAV values from the previous quarterly reporting are used in estimating fair value. These values are then adjusted for known events since the last reporting date. The typical known event is the increase/decrease in value on listed shares owned by a fund.
• Gjensidige’s investment in Gjensidige Pensjonskasse. The investment is valued equal to the paid-in equity.
156 results valUatiOn hierarChy 2010 The table shows a valuation hierarchy where financial assets/liabilities measured at fair value through profit or loss are divided into three levels based on the method of valuation.
Quoted prices in active markets level 2 valuation technique based on observable market data level 3 valuation technique based on non-observable market data total
Financial assets at fair value through profit or loss, initial recognition Shares and similar interests 210.7 2,010.6 1,690.9 3,912.2 Bonds and other fixed income securities 3,003.4 5,451.8 8.5 8,463.7
Financial liabilities Financial derivatives Financial derivatives at fair value through profit or loss 105.0 105.0 nOk million as at 1.1.2010 net realised/ unrealised gains recognised in profit or loss purchases sales settlements
reCOnCiliatiOn FinanCial assets valUeD baseD On nOn-Observable Market Data (level 3) 2010 nOk million sensitivity
Bonds and other fixed income securities Decrease in value 10 % 0.9 total 169.9 nOk million as at 1.1.2011 net realised/ unrealised gains recognised in profit or loss purchases sales settlements
transfers into/out of level 3 as at amount of net unrealised gains recognised in profit or loss that are attributable to instruments held as at 31.12.2011
gjensidige Forsikring asa, Danish branch nOk million principal asset liability ineffiency recognised in profit or loss
Gjensidige Forsikring ASA initiated hedge accounting of the currency exposure of the net investment in the Danish branch. The net investment in the Danish branch is hedged through currency-related contracts that are renewed every quarter at a principal equal to the value of the investment in the Danish branch. The credit risk associated with the hedging instruments is within the limits of Gjensidige’s credit policy.
nominal value Cost Market value subordinated loans Norinnova Invest 0.8 0.6 0.6 0.6 0.8 0.6 Vervet AS 1 24.0 24.0 24.0 24.0 total subordinated loans 24.7 24.6 24.6 24.6 0.8 0.6 1 Vervet AS is 25 per cent owned by Gjensidige Forsikring and is is classified as receivables from associates. The subordinated loans was recognised as impairment loss of associates in 2008. Interest does not accrue on the subordinated loans.
nOk million 2011 2010 provision for impairment losses Provision for impairment losses as at 1 January 6.2 7.5 Change in provision for impairment losses for the period (0.3) (1.3) provision for impairment losses as at 31 December 5.9 6.2
Cash and bank deposits 1,129.7 775.5 total cash and cash equivalents 1,453.7 775.5
Gjensidige Annual Report 2011 results 12 – shares anD siMilar interests nOk million interest held beyond 10 % 31.12.2011 norwegian financial shares Ringerikes Sparebank 24.0 DnB NOR ASA 11.1 Indre Sogn Sparebank 0.2 total norwegian financial shares 35.3
Other norwegian shares Statoil ASA 36.5 Norsk Hydro ASA 22.8 Orkla ASA 18.2 Yara International ASA 13.0 Petroleum Geo-Services ASA 12.0 Telenor ASA 11.6 Aker Solutions ASA 10.1 Schibsted ASA 9.6 Odfjell SE 7.1 Solstad Offshore ASA 6.9 Norwegian Air Shuttle ASA 5.6 Austevoll Seafood ASA 5.3 Other Norwegian shares 4.8 total other norwegian shares 163.5
Other foreign shares CSETF ON S&P 500 96.0 Pacific Drilling LTD 11.1 Subsea 7 S A 9.2 Royal Caribbean Cruises 8.5 Other foreign shares 13.1 total other foreign shares 137.9 equity funds Capital Intl Emerging Mkt-I 166.4 Valueinvest Lux GLB-IC 80.0 NUVEEN Trade Global All-Cap ESG Fund 75.7 DnB NOR Globalspar II 0.2 total equity funds 322.2 private equity investments HitecVision Private Equity V LP 173.2 FSN Capital II LP 132.5 HitecVision Private Equity IV LP 116.7 Altor Fund II LP 78.5 Northzone V KS 68.8 Northzone IV KS 10.8 % 56.4 Partners Group European Buyout 2005 (A) LP 51.5 Argentum Secondary II 48.9 Energy Ventures III LP 44.9 Norvestor V LP 40.8 Viking Venture III DIS 32.0 Verdane Capital VI KS 10.0 % 31.3 Energy Ventures II B IS 17.4 % 31.0 Partners Group Direct Investments 2006 LP 30.3 Energy Ventures II KS 28.0 HitecVision Asset Solution KS 27.6 LGT Crown European Private Equity PLC 26.6 Viking Venture II AS 23.0 CapMan BO IX LP 22.4 NeoMed Innovation IV LP 20.9 BaltCap PEF LP 20.7
Gjensidige Annual Report 2011 results nOk million interest held beyond 10 % 31.12.2011
Claims reported and claims handling costs 817.1 386.1 Claims incurred, but not reported 143.3 26.7 total reinsurers' share of claims provision, gross 960.4 412.8 total reinsurers’ share of insurance-related liabilities, gross 973.5 435.0 short-term insurance contracts, net of reinsurance Provision for unearned premiums 6,484.7 6,384.5
Other insurance-related provisions 2,527.5 2,480.4 total insurance-related liabilities, net of reinsurance 33,532.9 32,509.6 13 – insUranCe-relateD liabilities anD reinsUrers’ share 12 – shares anD siMilar interests (COnt.)
Claims incurred, but not reported 11,803.0 (26.7) 11,776.3 10,184.5 (8.1) 10,176.4 total as at 1 january 24,057.5 (412.8) 23,644.7 20,165.8 (154.4) 20,011.4
Claims reported and claims handling costs 12,104.8 (817.1) 11,287.7 12,254.5 (386.1) 11,868.3
Claims incurred, but not reported 13,376.3 (143.3) 13,233.0 11,803.0 (26.7) 11,776.3 total as at 31 December 25,481.1 (960.4) 24,520.7 24,057.5 (412.8) 23,644.7 provisions for unearned premiums, gross, short-term insurances As at 1 January 6,406.7 (22.2) 6,384.5 5,620.2 (0.5) 5,619.7 Increase due to merger 92.1 92.1 Increase in the period 16,906.9 (512.4) 16,394.4 (15,310.6) 398.1 (14,912.5) Release in the period (16,907.1) 521.6 (16,385.5) 16,094.4 (419.8) 15,674.7 Exchange differences (0.8) (0.8) 2.6 2.6 total as at 31 December 6,497.8 (13.1) 6,484.7 6,406.7 (22.2) 6,384.5 1 For own account.
Gjensidige Annual Report 2011 results nOk million 2011 2010 present value of the defined benefit obligation As at 1 January 2,626.4 2,528.4 Acquired pension liability in connection with purchase of insurance portfolio 50.5 Current service cost 55.3 62.3 Interest cost 93.4 99.6 Actuarial gains and losses 239.8 112.4 Benefits paid (142.8) (136.3) Past service costs (87.7) Business combinations 11.8 Foreign currency exchange rate changes (0.2) (2.9) as at 31 December 2,883.7 2,626.4 amount recognised in the balance sheet Present value of unfunded plans 418.3 412.3
dEFINEd cONTRIBuTION PlAN Defined contribution plan is a private pension plan which is a supplement to the National Insurance. Contributions from the pension plan come in addition to retirement pension from the National Insurance. The retirement age is 67 years.
The company expects to contribute NOK 127.8 million to the defined benefit plan in 2011 (114.2).
the expense is recognised in the following line items in the income statement Insurance-related adm. expenses including provisions for received reinsurance and sales expenses 60.3 (44.7)
actuarial gains and losses recognised in other comprehensive income Cumulative amount as at 1 January (2,108.9) (1,729.0) Adjustment of opening balance (257.0) Business combinations (2.8) Recognised during the period (337.1) (122.9) Exchange rate differences 0.3 Cumulative amount as at 31 December (2,448.5) (2,108.9)
The transition to new AFP arrangement is accounted for as a negative past service cost of NOK 87.7 million and is recognised as income in 2010.
The discount rate is based on ten years government bonds in Norway, adjusted for the duration of the pension liabilities. The discount rate is the assumption that has the largest impact on the value of the pension liability. Salary increases, pension increases and change in social security base amount are based on historical observations and expected future inflation. Due to an average age of above 50 years on employees in the defined benefit plan the salary increase does not contain a career addition, and determined salary increase can therefore be lower than in the market in general. The decreasing salary trend applied for 2011 gives an average salary increase of 2.7 per cent (3.5).
Outstanding accounts Fire Mutuals 165.0 190.2 Accounts payable 115.5 78.0 Liabilities in relation with properties 4.9 11.1 Liabilities in relation with asset management 8.9 Liabilities to public authorities 333.3 431.6 total other liabilities 957.2 907.4
Accrued personell costs 15.7 130.6 Other accrued expenses and deferred income 162.9 total other accrued expenses and deferred income 178.5 130.6 restructuring costs 1 1
nOk million 2011 2010 specification of tax expense Tax payable (828.4) (286.7) Correction previous years (20.8) 65.9 Change in deferred tax (22.0) (14.1) total tax expense (871.2) (234.8)
Deferred tax liabilities and deferred tax assets Deferred tax liabilities and deferred tax assets are offset when there is a legally enforceable right to offset those assets/liabilities and when deferred tax liabilities/deferred tax assets relate to the same fiscal authority. The amounts offset are as follows taxable temporary differences Properties 239.0 209.3 Plant, equipment and intangible assets 54.1 Shares, bonds and other securities 173.8 269.9 Profit and loss account 374.6 362.8 Change in accounting principles regarding adminitration provision and loss reserve 28.5 total taxable temporary differences 841.4 870.5
nOk million 2011 2010 reconciliation of tax expense Profit before tax expense 2,965.5 2,749.9 Estimated tax of profit before tax expense (28 %) (830.3) (770.0)
Tax effect of Dividend received 407.8 54.0 Tax exempted income and expenses (441.3) 87.1 Non tax-deductible expenses (3.1) (4.8) Consequence of tax relief decision 16.5 333.0 Correction previous years (20.8) 65.9 total tax expense (871.2) (234.8) Effective rate of income tax 29.4 % 8.5 %
Hedge accounting 2.0 Portfolios acquired 3.7 Exchange differences (2.0) 1.0 Other changes 1.9 Deffered tax liabilities/(deferred tax assets) as at 31 December (75.6) (18.4)
168 results 17 – eXpenses insUranCe-relateD aDMinistratiOn eXpenses inCl. COMMissiOns FOr reCeiveD reinsUranCe anD sales eXpenses nOk million 2011 2010
Other expenses 372.0 586.9 Allocation of indirect claims handling cost from insurance-related administration expenses to claims (406.3) (391.1) total insurance-related operating expenses incl. commissions for received reinsurance and sales expenses 2,647.1 2,506.6
Other speCiFiCatiOns nOk million 2011 2010 administration expenses related to financial assets, excl. interest expenses, incl. administration expenses properties Depreciation and value adjustments (note 5 and note 7) 4.6 6.5 Other expenses 93.8 78.1 total administration expenses related to financial assets, excl. interest expenses, incl. administration expenses properties 98.4 84.6 employee benefit expenses Wages and salaries 1,178.5 1,071.2 Social security cost 247.9 214.7 Pension cost - defined benefit plan (note 14 incl. employers national insurance contribution) 85.0 62.4 Pension cost - defined contribution plan (note 14 incl. employers national insurance contributions) 60.3 (44.7) Stock purchase offering for employees 0.9 6.7 total employee benefit expenses 1,572.5 1,310.3 auditor's fee (incl. vat) Statutory audit 2.0 2.3 Other non-assurance services 4.3 6.6 Tax consultant services 0.5 0.1 total auditor's fee (incl. vat ) 6.7 9.0
ThE BOARd OF dIREcTORS’ STATEmENT ON ThE STIPulATION OF PAY ANd OThER REmuNERATION GjENSIdIGE’S REmuNERATION POlIcY The Group has established a remuneration system that applies to all employees. The remuneration shall be competitive, but the Group shall not be a wage leader. Employees are expected to see the remuneration and benefits offered by the Group as an overall whole. The Group’s remuneration systems shall be open and performance-based, so that they, as far as possible, are perceived as being fair and predictable. The remuneration that is paid shall correspond to the agreed performance.
Guidelines for remuneration and career development shall be linked to achievement of the Group’s strategic and financial goals and core values, and both quantitative and qualitative targets shall be taken into consideration. The measurement criteria shall promote the desired corporate culture and long-term value creation, and, as far as possible, take actual capital costs into account. The remuneration system shall contribute to promoting and providing incentives for good risk management, prevent excessive risk-taking and contribute to avoiding conflicts of interest. A fixed basic salary shall be the main element of the overall remuneration, which also consists of variable pay, pension and payments in kind. Variable pay shall be performance-based without being a risk driver.
dEcISION-mAkING PROcESS The Board of Directors has established a remuneration committee consisting of three members: the Chairman of the Board of Directors and two board members.
REmuNERATION OF EXEcuTIVE PERSONNEl ANd EmPlOYEES WhO cAN mATERIAllY INFluENcE ThE GROuP’S RISk Remuneration of the senior group management is stipulated by the CEO, in accordance with limits discussed with the remuneration committee and on the basis of guidelines issued by the Board of Directors. Correspondingly, the Group’s guidelines are used as the basis for other executive personnel and employees who can materially influence risk.
170 results key ManageMent persOnell COMpensatiOn nOk thousand paid fixed salary/fee paid variable salary
Martin Danielsen, Executive Vise President 2,096.8 295.7 39.1 555.8 20.2 4,480.8 3.65 % 31.01.21 292 7,418 3
Sigurd Austin (20.6.11-31.12.11) 1, Executive Vise President 915.8 131.2 21.1 297.6 1,727 3
Kaare Østgaard (20.6.11-31.12.11) 1, Executive Vise President 1,059.7 136.0 21.4 384.8 1,727 3
Mats C. Gottschalk (19.12.11-31.12.11), Executive Vise President 7.3 18 – salaries anD reMUneratiOn (COnt.)
defined-benefit pension scheme. Given the full earnings period, they are entitled to a pension of 70 per cent of final salary. Six members are part of the Company’s defined -contribution pension scheme. The Company will continue a previously agreed individual pension agreement for one member of the senior group management.
REmuNERATION OF EXEcuTIVE PERSONNEl WITh SuPERVISORY TASkS The remuneration of executive personnel with supervisory tasks shall be independent of the performance of the business area they are in charge of.
REmuNERATION OF OFFIcERS OF ThE cOmPANY ANd OThER EmPlOYEES WITh REmuNERATION cORRESPONdING TO EXEcuTIVE PERSONNEl The remuneration shall follow the guidelines set out above. There are currently no such employees.
REPORT ON EXEcuTIVE REmuNERATION IN ThE PREcEdING FINANcIAl YEAR With the exception of two employees in the finance department who were offered up to 50 per cent variable pay, the Board confirms that the guidelines on the remuneration of executive personnel for 2011 set out in last year’s statement have been complied with.
Calculated value of total benefits other than cash rights earned in the fin. year according to defined benefit pension plan 9 loans, advance payments, guarantees, outstanding amount number of shares held interest rate 7 applicable conditions and installment plan retirement
Hege Toft Karlsen (1.9.10-31.12.10) 1, Executive Vise President 591.2 27.7 53.5 76.2 1,965.3 2,348 3.0-3.3 % 16.04.2019 3
Kim Rud-Petersen (15.3-31.12.10) 1, Executive Vise President 2,115.3 223.1 136.5 2,244 Lise Westly (1.3-31.12.10) 1, Executive Vise President 1,325.8 164.5 309.7 1,502 the board of Directors 6
Hallvard Strømme (28.6.10-31.12.10) 1 1.5 Lieslotte Aune Lee (28.6.10-31.12.10) 1 6.5 Vigdis Myhre Næsseth (28.6.10-31.12.10) 1, Deputy 11.5 18 – salaries anD reMUneratiOn (COnt.)
Bjørn Iversen (28.6.10-31.12.10) 1, Chairman 23.0 Trond Bakke (1.1.10-28.6.10) 1, Deputy Chairman 107.5 Kirsten Indgjerd Værdal (28.6.10-31.12.10) 1, 11, Deputy Chairman in addition 43 representatives from the company/Fire Mutuals/organisations/employees. 5 18 – salaries anD reMUneratiOn (COnt.)
key ManageMent persOnell COMpensatiOn nOk thousand paid fixed salary/fee paid variable salary
Calculated value of total benefits other than cash rights earned in the fin. year according to defined benefit pension plan 8 loans, advance payments, guarantees, outstanding amount number of shares held interest rate 6 applicable conditions and installment plan retirement
Owner-occupied properties Rental income from owner-occupied properties 7.9 10.8 Net gain/(loss) from sale of owner-occupied properties (1.7) 55.0 Administration expenses related to owner-occupied properties (7.1) (10.1) Impairment owner-occupied properties (2.2) total net income and gains/(losses) from owner-occupied properties (0.9) 53.4 total net income and gains/(losses) from buildings and other real estate 121.4 113.9 net income and gains/(losses) from investments in subsidiaries and associated companies Net income from investments in subsidiaries and associated companies 672.7 292.7 Impairment investments in subsidiaries and associated companies (152.2) Net gain/(loss) from sale of investments in subsidiaries and associated companies (227.8) (0.1) total net income and gains/(losses) from investments in subsidiaries and associated companies 444.9 140.4 net gain/(loss) from bonds held to maturity Net interest income from bonds held to maturity 664.0 756.4 Unrealised gain/(loss) from bonds held to maturity 5.1 (11.8) Realised gain/(loss) from bonds held to maturity (23.0) Impairment bonds held to maturity (40.0) Net gain/(loss) from changes in exchange rates on bonds held to maturity 0.1 total net gain/(loss) from bonds held to maturity 606.1 744.6
Net income and gains/(losses) from loans and receivables Net interest income/(expenses) from loans and receivables 308.0 134.5 Net gain/(loss) from loans and receivables (0.5) 19.7 Net gain/(loss) from changes in exchange rates on loans and receivables (60.7) (88.1) total net income and gains/(losses) from loans and receivables 246.9 66.1 net income and gains/(losses) from financial assets at fair value through profit or loss, designated Shares and similar interests Dividend income 8.0 78.6 Unrealised gain/(loss) from shares and similar interests (75.9) 108.4 Realised gain/(loss) from shares and similar interests (75.8) 174.6 total net income from shares and similar interests (143.6) 361.6
Bonds and other fixed-income securities Net interest income/(expenses) from bonds and other fixed-income-securities 284.5 284.1 Unrealised gain/(loss) from bonds and other fixed-income securities 209.3 73.4 Realised gain/(loss) from bonds and other fixed-income securities 87.7 287.5 total net income from bonds and other fixed-income securities 581.4 645.0
As part of its ongoing financial management, the Company has undertaken to invest up to NOK 746.0 million (705.8) in various private equity and real estate investments, over and above amounts recognised in the balance sheet. Investments in private equity and real estate funds totalled NOK 1,496.6 million (1,303.6) at the end of the year.
As at 31 December 2011 there are contractual obligations to tenants for renovation of NOK 1.0 million (2.0).
nOk million 2011 2010 guarantees and committed capital Gross guarantees 0.1 0.6 Committed capital, not paid 746.0 705.8 21 – relateD party transaCtiOns OVERVIEW OF RElATEd PARTIES
associates Bilskadeinstituttet AS Oslo, Norway 29.5 % SpareBank1 SR-Bank 1 Stavanger, Norway 10.8 % Storebrand ASA Oslo, Norway 24.3 % Vervet AS Tromsø, Norway 25.0 %
PuRchASE ANd SAlE OF ASSETS Gjensidige Forsikring owns all of the shares of Tennant Holding AB, a company domiciled in Sweden. As at 17 March 2011 it was agreed that Gjensidige Forsikring was to acquire all of the shares of Tennant Försäkringsaktiebolag, an insurance company also domiciled in Sweden, from Tennant Holding AB. The remuneration is set to fair value and amounts to NOK 470.0 million. The remuneration was interest-bearing until settlement before year-end. The Norwegian Financial Supervisory Authority of Norway has approved the transactions. 14 October Tennant Försäkringsaktiebolag was merged into Gjensidige Forsikring ASA. The merger was conducted as a mother-daughter merger and is therefore accounted for as group continuity. In the Group accounts all consequenses of the merger are eliminated. There have not been significant transactions with related parties other than ordinary current agreements conducted at arm›s length and the transaction/merger mentioned above.
lOANS TO RElATEd PARTIES As at 31 December 2011 employees have loans in Gjensidige Bank amounting to NOK 973.9 million. The loans are offered on normal commercial conditions.
Dividends Gjensidige Baltic 22.9 21.1 Gjensidiges Arbejdsskadeforsikring A/S 104.9 Gjensidige Norge AS 6.0 Nykredit Forsikring A/S 55.5 Storebrand 120.4 SpareBank1 SR-Bank 57.0 36.2 Tennant Holding AB 27.3 total group contributions and dividends 672.7 149.0 292.7 41.4 liquidation losses Fair Forsikring A/S (227.8)
total income from investments in subsidiaries and associates 444.9 149.0 292.7 41.4
Claims provision within the group Gjensidige Baltic 10.1 total claims provision within the group 10.1 total intercompany balances within the group 380.6 144.7 190.7 57.0
Effect of guarantee scheme provision and Natural perils fund (3,040.3) (3,151.3) 1
45 % of investment properties, unrealised gains, proportion 71.3 94.2 additional capital 71.3 94.2
Other non-weighted assets Goodwill 1,162.0 1,035.6 Deferred tax assets 75.6 26.4 Other intangible assets 689.1 659.1 Derivatives 115.7 434.5 total assets 59,121.8 56,972.4
Primary capital in other financial institutions (108.5) (108.6) risk weighted calculation base (b) 35,369.3 35,859.5 Capital ratio (A/B) 38.1 % 38.9 %
Gjensidige Annual Report 2011 results 24 – sOlvenCy Margin 25 – restriCteD FUnDs nOk million 2011 2010 restricted bank deposits Source-deductible tax accounts 59.1 59.0 Securities placed as security for insurance operations 13.8 13.9 Deposits placed as security for insurance operations 8.3 8.3 total restricted bank deposits 81.3 81.2
Morgan Stanley & Co Internat. Plc Nominee 10,238,142 2.05 % State Street Bank And Trust Co. Nominee 9,390,704 1.88 % State Street Bank And Trust Co. Nominee 9,222,881 1.84 %
State Street Bank And Trust Co. Nominee 1,964,661 0.39 % Bnym As Emea Asia 25 Omnibus Nominee 1,636,307 0.33 % Invesco Perp European Eq Fund 1,426,653 0.29 % Klp Aksje Norge Indeks Vpf 1,282,884 0.26 % Number of shares 20 largest shareholders 406,540,357 81.31 % number of shares 20 largest shareholders 500,000,000 100.00 %
The shareholder list is based on the VPS shareholder registry as of 31 December 2011. A shareholder list showing the owners behind nominee accounts can be found on page 46.
The fair value at the grant date is based on the market price. The amount is recognised as payroll expenses. No specific company-related or market-related entitlement criteria apply to the shares, but the Company may carry out a re-assessment based on major qualitative events and/or developments. The expected allocation is set at 100 per cent.
PuRchASE OF ShARES AT A dIScOuNT IN cONNEcTION WITh ThE lISTING OF ThE cOmPANY In connection with the listing on the stock exchange of Gjensidige Forsikring ASA on 10 December 2010, all employees of the Gjensidige Group, with the exception of employees of Gjensidige Baltic, were given an opportunity to buy shares in the Company.
For every ten shares owned continuously until 12 December 2011, the employees will receive 1.5 bonus shares. If the shares are owned continuously up to and including 10 December 2012, an additional 1.5 bonus shares will be awarded for every ten shares.
The value at grant date is recognised in the income statement as payroll expenses and as other paid-up equity in the statement of changes in equity.
The expected return is based on the Group’s actual profit/loss after tax expense as of the third quarter, grossed up to a full year, plus the maximum distribution of dividend corresponding to 80 per cent of the profit after tax expense. This was carried out as a technical calculation because the Company’s forecast for the fourth quarter result was not available at the time the calculations were carried out.
REcONcIlIATION OF OuTSTANdING BONuS ShARES The number of and weighted average exercise price for bonus shares in the share savings programme for each of the following groups are nOk million number of bonus shares 2011
Outstanding 1 January N/A N/A Granted during the period 46,951 N/A N/A Forfeited during the period 29 N/A N/A Cancelled during the period (437) N/A N/A Exercised during the period N/A N/A Expired during the period N/A N/A Outstanding 31 December 46,543 N/A N/A Exercisable 31 December N/A N/A
Bonus share options exercised in the 2011 financial year have a weighted average fair value of NOK 0. No bonus share options were exercised in 2011.
The consolidated accounts have been prepared in accordance with the EU-approved International Financial Reporting Standards (IFRS) and interpretations, together with the additional disclosure requirements that derive from the Regulations concerning annual accounts for insurance companies pursuant to the Norwegian Accounting Act and that shall be adopted as per 31 December 2011. The annual accounts for the parent company were submitted in accordance with the Accounting Act and the Regulations concerning annual accounts for insurance companies as per 31 December 2011. The Report of the Board of Directors for the Group and the parent company is in accordance with the requirements of the Accounting Act and Norwegian Accounting Standard no. 16 as per 31 December 2011.
To the best of our knowledge: o the annual accounts for 2011 for the Group and the parent company have been prepared in accordance with current accounting standards o the information in the accounts gives a true and fair view of the Group’s and the parent company’s assets, liabilities and financial position and results as a whole as per 31 December 2011 o the Report of the Board of Directors for the Group and the parent company gives a true and fair summary of: - the development, results and position of the Group and the parent company - the most important risk and uncertainty factors that the Group and parent company are currently facing.
7 March 2012 The Board of Directors of Gjensidige Forsikring ASA
declaration from the members of the board of directors and ceo
December Gjensidige celebrated one year as a listed company. Bonus shares distributed to Norwegian shareholders. Launched mobile phone solution for reporting of claims.
FINANCIAL CALENDAR 2012 19 April ...................... General meeting 4 May ..................... Q1-result 17 July ...................... Q2-result
Simpler products and modern self- service solutions shall ensure customers have a positive experience, whether they are purchasing insurance products or seeking assistance and settlement in connection with a claim.
Gjensidige is a leading Nordic insurance group built by customers, for customers. For nearly 200 years, we have worked passionately to secure the lives, health and assets for of our customers. We have 3,116 employees and offer insurance products in Norway, Denmark, Sweden and the Baltic states. In Norway, we also offer banking, pension and savings. Operating income was NOK 19.4 billion in 2011, while equity was NOK 88.5 billion.