CClliimmaattee--nneeuuttrraall bbuussiinneessss Gjensidige became a climate-neutral business in 2020 by purchasing UN Golden Standard carbon offsets to compensate for emissions from Gjensidige’s own operations. We also became a signatory to initiatives that highlight our commitment to sustainable development, including the UN Principles for Sustainable Insurance (UNEP FI PSI) and the Principles for Responsible Investment (UN PRI).
NNeeww ddiiggiittaalliissaattiioonn ddeeppaarrttmmeenntt iinn SSwweeddeenn A new digitalisation department was established in Sweden. The department will be responsible for product development, pricing and profitability in the Swedish business, and enable an increased focus on digitalisation, service and good customer experiences.
Gjensidige delivered a record high result in 2020. We continued to reap the benefits of the improvement work we initiated in 2018, on both the revenue and cost side. At the same time, the financial and economic consequences of the coronavirus pandemic were limited. Cancelled trips led to unusually high claims. They were offset by a reduction in other claims expenses, however, because customers stayed at home more than usual.
OOuurr vviissiioonn –– We shall know the customer best and care the most.
• Digital user habits have spill over effects across industries, giving rise to expectations of good, personal digital services – also in insurance.
• Different service providers are linked together in digital platforms and create new value proposals across industries. • Artificial intelligence is increasingly being used to improve customer experience. • Technology streamlines work processes, where a significant number of work tasks are automated.
• Gjensidige’s sustainability strategy is divided into three over-arching topics: inform, interact and invest. We must use our strengths to contribute to increased damage prevention and sustainable solutions
TThhee GGjjeennssiiddiiggee EExxppeerriieennccee • We keep our promises • We always deliver quality • We make complicated things simple • We make sure that the customer is satisfied
Customer orientation is core in Gjensidige’s strategy and permeates the Company’s organisation. Our aim is to provide the best customer experiences in the industry.
In the years ahead, we will endeavour to take customer orientation one step further. Going forward, we will have a stronger focus on assuming the role of problem-solver and on delivering products, services and solutions that prevent losses from occurring.
SShhaarriinngg iiss aa cchhooiiccee –– tthhee GGjjeennssiiddiiggee FFoouunnddaattiioonn sshhaarreess Every year since Gjensidige was listed on Oslo Børs, general insurance customers in Norway have received a customer dividend. Over the years, they have received more than NOK 21 billion, corresponding to 11–15 per cent of their annual insurance premium. In 2020, the Gjensidige Foundation distributed a dividend of NOK 2.2 billion, corresponding to 13.7 per cent of the insurance premium in 2019.
The background for the customer dividend model is that Gjensidige was established as a company owned by customers. Today, the customers’ interests are safeguarded by the Gjensidige Foundation, the largest shareholder in Gjensidige with an ownership interest of 62.2 per cent. The Foundation passes on its share dividend from Gjensidige’s profit for the year to Gjensidige’s general insurance customers in Norway who were still customers at the time of the Foundation’s annual general meeting.
There is considerable competition in all countries in the region. The competitive situation has been relatively stable the last few years. The markets are relatively consolidated, although the competitive situation is more fragmented in Denmark. In all our markets, we face competition mainly from large traditional general insurance companies and bankassurance companies.
It is also important for Gjensidige to have engaged and motivated employees.
Chapter 2 – Creating added value in Gjensidige - Creating value for our stakeholders
• Monitoring and assessment of underwriting results and insurance risk, seen in relation to prognoses, is a vital, integrated part of the day-to-day management of the business.
• The independent actuary function performs control tasks relating to technical provisions, the taking out of insurance and the reinsurance programme.
The investment portfolio consists of two parts: a match portfolio and a free portfolio.
• Daily reports are prepared for the purpose of follow-up and monitoring of Gjensidige’s investments to ensure that they are within the limits at all times.
• Knowledge, competence, training and courses • Documented activities to ensure that processes or routines are complied with • Follow-up of incidents.
In addition to supporting the ambition of a more sustainable and competitive agricultural industry, Gjensidige aims to use its ownership interest to work on damage prevention and to develop even better insurance solutions. With the help of Mimiro, we aim to develop services that will reduce the risk of fire and other types of damage in agriculture, and to provide specialist advice in this area. We also aim to use Mimiro’s insight to develop insurance solutions based on how farmers actually work.
MMoottoorr We have a number of initiatives that promote road safety and encourage safe and claim-free driving. Our bonus system rewards customers for safe and claim-free driving. We collaborate with the Norwegian Council for Road Safety (Trygg Trafikk) on projects focusing on young people, and Gjensidige’s learner driving app enables young people to log their driving practice, and it rewards extensive training. The young people under this agreement receive a pay-out when they turn 23 as a reward for claims-free driving.
LLiiaabbiilliittyy iinnssuurraannccee Customers are given incentives to secure their assets by preventing and limiting losses. We actively follow up sectors that file many liability claims, in order to reduce the number of claims in future. We require that they implement various safety measures before they can take out insurance, to encourage them to operate in a responsible manner.
Of our many projects, we can mention one that has become very popular, namely ‘Minihåndballjentene’. The project is aimed at girls between the ages of 9 and 12, and entails a number of girls being selected as mascots for the national women’s handball team. The national team members mentor their mascots throughout the year, and attend practice sessions with the mascot’s teams. It is highly motivating for the children, and for their parents and others who get involved in grass-root sports and voluntary work for the team, to meet top national players this way. The age group was chosen because figures from the Handball Association show that many young handball players drop out of the sport when they reach their early teens. The project is therefore considered an important contribution to reducing drop-out rates and boosting recruitment to teams in the different age groups.
Gjensidige has also established external partnerships to retain any residual value in insurance claims. Items that were previously discarded are now retained for the purpose of repair and resale, for example written-off cars, mobile phones, small electrical appliances and bicycles. We also consider cooperation in building claims to identify any residual value in other insurance claims such as water or fire claims.
SSccooppee 33:: EEnnvviirroonnmmeennttaallllyy ffrriieennddllyy mmoottoorr iinnssuurraannccee Repairing damage to and covering losses for cars and other vehicles represent a large percentage of Gjensidige’s claims incurred and a substantial part of our footprint. This is an area in which we wish to exert influence and achieve sustainable solutions. The proportion of repairs and reuse of car parts is a topic in every country we operate in. We also cooperate with car breakers that contribute to ensuring that, when a car is scrapped, the resources are recycled and used in new products. The measures include: • reducing the number of scrapped cars • focusing on the reuse of materials in all countries we operate in • contributing to increased employment in garages • reducing the costs of spare parts by using used parts rather than new parts where expedient (Norway has Europe’s most expensive parts and the lowest percentage of reuse of used parts)
SSuummmmaarryy Gjensidige is concerned with raising awareness of effective climate measures that help to reduce greenhouse gas emissions. Climate risk and opportunities are considered on the basis of the three categories physical, transition and liability risks, and affect all types of risk at Gjensidige.
In a longer-term perspective and not least from a societal perspective, significantly higher claims payments as a result of climate change will be problematic, as it may ultimately lead to insurance premiums becoming too expensive or to certain areas not being insurable in practice.
The investment portfolio is considered to be most exposed to transition risks.
• In the longer term, Gjensidige expects transition risks to impact all segments of insurance. We believe that people’s awareness and attitudes can change, and that this can mean that Gjensidige must adapt its operations accordingly. Sustainable alternatives to all our main products will therefore be developed by 2025. This type of development is expected to be gradual, allowing Gjensidige to adapt its products and services to the market over time.
Gjensidige has established cooperation with an external certification provider with a view to following up its suppliers’ compliance with our requirements relating to the environment, CSR, ethics and sustainable procurement.
Chapter 2 – Creating added value in Gjensidige - Engaged employees and sustainability goals are followed up in the Business Review, which is also conducted by the CEO twice a year.
HHeeaalltthh,, ssaaffeettyy aanndd tthhee eennvviirroonnmmeenntt ((HHSSEE)) Systematic health, safety and environmental work is given high priority in Gjensidige. Our goal is not only to prevent sickness absence and injuries, but also to ensure that Gjensidige is a health-promoting workplace. We therefore work on preventing and following up sickness absence and on making adaptations for employees with disabilities. An ergonomic workstation assessment is carried out for all new employees as soon as possible by a physiotherapist or an occupational therapist, if practically possible. The purpose of this is to adapt the work station to avoid repetitive strain injuries, and to provide information about the prevention of health problems. Special adaptation procedures have been adopted for employees who have or wish to prevent such problems arising. The HSE work is monitored through audits and followed up internally by employees with special responsibility for HSE. All incidents that can represent a risk must be reported in the Company’s nonconformity system. Independent HSE audits are conducted in Norway, Sweden and Denmark to verify satisfactory working conditions. Working environment issues are integrated in the annual HSE survey to identify matters requiring
Silset holds a degree from BI Norwegian Business School based on a four year-program in economics and business administration consisting of three years at bachelor/ undergraduate level and one year at master/graduate level (siviløkonom).
IInnvveessttmmeenntt ppoorrttffoolliioo,, ggeenneerraall iinnssuurraannccee The investment portfolio for general insurance includes all investment funds in the Group, except for investment funds in the Pension segment. A large part of the asset management is outsourced to external managers, while the Group’s investment function concentrates on asset allocation, risk management and the selection of managers. Direct real estate investments take place via the company Oslo Areal, in which Gjensidige has an ownership interest of 50 per cent.
Chapter 2 – Creating added value in Gjensidige - Our asset management sources, form the basis for the exclusion of and dialogue with companies in Gjensidige’s investment universe.
Correct risk pricing is the most important thing we do, with regard to profitability, the company’s financial strength and our responsibility to society.
GGiisseellee MMaarrcchhaanndd –– CChhaaiirr Gisele Marchand (1958) holds an MBA from Copenhagen Business School.
Marchand has previously been CEO of the law firm Haavind AS, Eksportfinans ASA, the Norwegian Public Service Pension Fund, and the Bates Group and Executive Vice President at Den norske Bank, with responsibility for retail and commercial customers in Norway.
She is a member of the board of Nykredit A/S, Nykredit Realkredit A/S, Forenet Kredit and Konkurrencerådet (the Danish competition authority), appointed by the Danish government. Krag is also on the Board of Representatives of the Danish pension group ATP, and a member of the board of several small public institutions. She is also a member of the Nomination Committee for the University of Copenhagen.
HHiillddee MMeerreettee NNaaffssttaadd –– BBooaarrdd mmeemmbbeerr Hilde Merete Nafstad (1963) has been a member of Gjensidige’s Board of Directors since 2017.
Gjensidige has data protection officers whose main task is to inform and advise the Company’s management on the Company’s obligations under data protection legislation, and to inform and advise employees who process personal data. The data protection officers monitor compliance with external and internal regulations and are in contact with the Norwegian Data Protection Authority, and with customers and employees who have queries about the processing of personal data.
Gjensidige is completely dependent on the trust of our surroundings to carry out our social mission, namely safeguarding lives, health and assets. Ethics are essential in this context.
Relevant matters are reported to the Group’s risk committee and the Board.
MMoonneeyy llaauunnddeerriinngg aanndd ffiinnaanncciinngg ooff tteerrrroorriissmm Gjensidige is obliged to take a risk-based approach to money laundering and financing of terrorism in relation to its customers, based on the customer relationship and the type of products and transactions involved. In practice, this means that we carry out a risk assessment in connection with the sale of insurance to new and existing customers, and with the payment of claims. The risk assessment is comprehensive and is based on characteristics of the customer, the customer relationship, the product, the transaction and other matters of relevance.
Good corporate governance is important to ensure value creation over time, and to increase trust in the Company. Our statement on corporate governance is based on the Norwegian Code of Practice for Corporate Governance, adopted by the Norwegian Corporate Governance Board (NUES). This section is structured in accordance with the Code of Practice.
The work on internal control is based on the COSO principles, which comprise three lines of defence. They are the management’s own control measures (first line), the Compliance and Risk Management functions’ control measures (second line) and the Internal Audit (third line). Gjensidige is first and foremost an insurance group. The independent actuary function is therefore an important and necessary part of the Board’s work, as a control function for actuarial tasks, including assessment of the technical provisions.
RReettuurrnn oonn tthhee GGjjeennssiiddiiggee sshhaarree The Gjensidige share yielded a total return for the shareholders of 11 per cent in 2020. Oslo Børs recorded a total return of 5 per cent during the same period. Since the Company was listed on the stock exchange in December 2010, the Gjensidige share has yielded a total return of 549 per cent. The average number of shares traded daily on Oslo Børs was around 500,000 in 2020, and the share is among the 25 most liquid shares listed on the stock exchange. In addition, a substantial number of shares are traded in other marketplaces.
General Meeting in 2020. The payment was made on 4 February 2021.
OOwwnneerrsshhiipp At year-end 2020, Gjensidige had approximately 35,000 shareholders. The 20 biggest owners represented a total of 85.1 per cent of the shares in the Company.
• Donated DKK 1.3 million to the Red Cross in Denmark in cooperation with our customers, and participated in their ‘Christmas relay race’.
• Ninety-five per cent of our customers shall be ‘paperless’ by 2025.
EEffffeecctt ooff oouurr eeffffoorrttss -- RReedduuccee oouurr oowwnn cclliimmaattee ffoooottpprriinntt We have achieved a reduction in greenhouse gas emissions from our own operations through, among other measures: • Renewed certification as Eco-lighthouse (Miljøfyrtårn) for four offices.
• Both physical and digital training sessions organised by the Gjensidige Customer and Brand School. Employees have completed 6,874 hours of training at the school, and 28,825 hours online. In addition, frontline customer staff have completed a total of 20,050 hours of training.
NNeeww mmeeaassuurreess iinn 22002211 • Continuous efforts are made to improve existing processes and new measures in the area of responsible investments. We can exert the greatest influence through active dialogue on ESG criteria with our external fund managers, and incorporate ESG requirements in the mandates we establish. As well as investments in individual companies and investment mandates, the dialogue will concern the investment managers’ exercise of ownership, reporting of ESG criteria and their work on the UN Sustainable Development Goals. In general, we will make efforts to incorporate more of the UN PRI recommendations where relevant.
EEnnhhaanncceedd ffoorrwwaarrdd--llooookkiinngg rriisskk mmaannaaggeemmeenntt MMaannaaggeemmeenntt ooff cclliimmaattee rriisskk iinn tthhee iinnssuurraannccee ooppeerraattiioonnss • Devised scenario for expected water damage up until 2100 is prepared in cooperation with the Norwegian Computing Centre. The scenario is based on historical loss data and recognised climate models. The scenarios provide valuable information about the type of water damage we can expect in future, and valuable insight into the development in scope of damage and where we can expect the damage to occur – all the way down to the building level. This gives us a unique opportunity to implement damage prevention measures that can reduce the scope of damage.
CCoommpplliiaannccee wwiitthh ssttrriinnggeenntt pprriivvaaccyy rreeqquuiirreemmeennttss ((GGDDPPRR)) • There were no serious personal data breaches in Gjensidige
• Phishing activity targeting the Group’s users has increased considerably during Covid-19, but has not led to any incidents of significance.
Strong retention, effective pricing measures, good cost control and favourable claims development resulted in the highest full year result (excluding gains on sales of Gjensidige Bank) in the Group’s history. Gjensidige has a strong capital position and the outlook remains good. The Board proposes a regular dividend of NOK 7.40 per share and declares a special dividend of NOK 2.40 per share.
The income tax expense amounted to NOK 1,387.8 million (1,197.6), resulting in an effective tax rate of 21.9 per cent (15.4). The effective tax rate was impacted by realised and unrealised gains and losses on equity investments in the EEA.
Earned premiums in the Baltic segment decreased by 4.2 per cent measured in local currency. The underwriting result increased, mainly due to currency effects.
At year-end 2020, the remaining capacity to issue Tier 1 loans amounted to between NOK 2.4 and NOK 2.9 billion, and Tier 2 loans to NOK 1.2 billion. Gjensidige will consider the possibility of issuing further loans contingent on satisfactory market terms. In addition, other balance sheet and capital optimisation measures will be continuously assessed.
Customer retention 90 per cent 79 per cent > 90 per cent, Norway > 85 per cent, outside
Retention levels in Norway remained at a very high level. Retention outside Norway has a potential to improve.
Run-off gains/(losses) 1 438.0 467.3 1 Defined as an alternative performance measure (APM). APMs are described at www.gjensidige.no/reporting in a document named APMs Gjensidige Forsikring Group 2020.
Administration fees were NOK 158.1 million (152.3). Insurance income was NOK 81.3 million (111.4). The main reason for the decrease was the positive risk result last year relating to the paid-up policies.
Value-adjusted return on the paid-up policy portfolio 3 1 Defined as an alternative performance measure (APM). APMs are described at www.gjensidige.no/reporting in a document named APMs
The match portfolio amounted to NOK 36.4 billion (34.1). The portfolio yielded a return of 1.2 per cent (2.8), excluding changes in the value of bonds recognised at amortised cost, reflecting the lower interest rate level as well as the market movements in the first quarter. Bonds recognised at amortised cost amounted to NOK 15.4 billion (14.9). Unrealised excess value amounted to NOK 1.0 billion (0.5) at the end of the period.
CChhaapptteerr 33 –– VVaalluuee ccrreeaatteedd iinn 22002200 -- SSttrraatteeggyy aanndd oouuttllooookk
Financial liabilities Subordinated debt 13, 18 1,498.8 1,498.4 Financial derivatives 13 767.4 641.0 Liabilities in life insurance with investment options 13 34,586.4 29,989.4 Other financial liabilities 13, 19 2,777.3 2,735.4 Liabilities related to direct insurance and reinsurance 13 783.4 709.4
Other liabilities Pension liabilities 10 716.8 610.6 Lease liability 12 1,016.4 1,125.1 Other provisions 19 300.7 297.3 Current tax 9 1,559.9 1,046.1 Deferred tax liabilities 9 956.2 1,168.6 Accrued expenses and received, not earned income 19 432.0 422.0
Equity as at 31.12.2020 attributable to the owners of the company 1,000.0 (0.0) 1,430.0 83.3 1,002.2 934.5 (2,142.2) 22,976.1 25,283.8
Cash flow from operating activities Premiums paid, net of reinsurance 32,866.1 30,499.5 Claims paid, net of reinsurance (18,943.3) (19,365.9) Net payment of loans to customers 827.8 Net payment of deposits from customers (589.9) Payment of interest from customers 279.5 Payment of interest to customers (15.0) Net receipts/payments of premium reserve transfers (2,804.8) (2,143.7) Net receipts/payments from financial assets 1,138.4 (5,822.9) Operating expenses paid, including commissions (3,746.1) (4,089.7) Taxes paid (1,185.3) (797.8) Net other receipts/payments 9.8 (17.4) Net cash flow from operating activities 7,334.7 (1,235.7)
Other items classified as equity Natural perils capital and guarantee scheme provision are accounted for as equity because the funds belong to the group. As a consequence, they do not meet the requirement for liability in IAS 32 and are therefore presented as funds within equity.
Covid-19 The outbreak of the corona virus, Covid-19, and the measures taken to limit infection have affected the results for the financial year 2020. All effects of Covid-19 are considered to be within what one with a certain probability can expect to occur. The risk is mainly related to market risk, insurance risk and operational risk. Based on current information, the internal model is considered to capture the risk related to Covid-19. Alternative scenarios have been implemented to assess possible downside scenarios related to Covid-19, and Gjensidige is considered to be well capitalized to handle risk related to Covid-19.
The table below shows the maturity profile of the fixed-income portfolio for general insurance.
Hedging inflation exposure As described under insurance risk, inflation risk related to Danish workers' compensation is for the most part hedged through inflation swaps.
The solvency capital requirement is based on different sources of risks. The main risks for Gjensidige Forsikring ASA and Gjensidige Forsikring Group are non-life and health insurance risk and market risk. Non-life and health insurance risk is mainly related to uncertainty in insurance result for the next year (premium risk) and the risk of the claims provisions not being sufficient (reserve risk). Counterparty default risk and operational risk also contribute to the capital requirement. A diversification benefit is accounted for as all risks will not occur at the same time. The capital requirement is also adjusted for future tax benefit which would occur if a loss equal to the solvency capital requirement should occur. This tax benefit can only be accounted for if it is reasonable that the company is able to continue with its business after such a loss.
Receivables from joint ventures Oslo Areal AS NOK millions 2020 2019
1.1 billion at year end. Gjensidige Forsikring has granted a loan to Oslo Areal amounting to NOK 2.4 billion at year end. The loan is interest-bearing and total loan limit is NOK 4.0 billion.
The Board Gisele Marchand, board member, Chairman 8 696.5 2.3 1,481 John Giverholt 8 404.5 2.3 3,500 Per Arne Bjørge 7, 8 449.0 3.7 10,542 Eivind Elnan 8 326.2 6.8 2,200 Hilde Merete Nafstad 8 363.5 2.3 2,946 Vibeke Krag 8 396.0 11.5 1,500 Terje Seljeseth 8 363.5 2.3 Gunnar Mjåtvedt, staff representative 4, 8 396.0 2,319 Anne Marie Nyhammer, staff representative 4 326.2 Lotte Kronholm Sjøberg, staff representative 4, 8 363.5 2.3 914 1 The stated remuneration applies to the period the individual in question has held the position/office. 2 Age 62, 100 per cent salary reducing gradually to 70 per cent at age 67 according to time of earning, then Gjensidige Forsikring's ordinary pension terms will take effect. 3 Age 62, 70 per cent salary until age 67 according to time of earning, then Gjensidige Forsikring's ordinary pension terms will take effect. 4 For staff representatives only remuneration for the current position is stated. 5 Earned variable salary includes expatriation allowance. 6 Including bonus shares in the share saving's programme for employees. See note 22 for terms and further description of the scheme. 7 Remuneration includes remuneration as Chairman in the Audit Committee honoured with NOK 157.5 thousand for 2019. 8 Remuneration includes remuneration in other committees.
Tax expense In connection with the conversion of Gjensidige Forsikring BA to a public limited company in 2010, the Ministry of Finance consented an exemption from capital gains taxation on the transfer of business to the newly formed public limited company under certain conditions. The consequences of the tax relief decision, as calculated by the company, have been incorporated into the tax expense and tax liabilities from the fourth quarter 2010. The tax relief decision involves greater complexity related to taxable gains from the assets and liabilities which were transferred, which entails a greater degree of uncertainty with respect to the tax expense and tax liabilities until all the effects have ultimately been evaluated by the tax authorities.
The main result from the tax relief decision mentioned above, is that an increase in taxable gain from sale of shares in Gjensidige held by Gjensidigestiftelsen, leads to an increase in the taxable basis for depreciation in Gjensidige, which in turn give a decrease in tax payable. In February 2015, Gjensidige received a decision from the Central Tax Office for Large Enterprises in connection with the calculation of a tax gain as a result of the conversion of Gjensidige Forsikring BA into a public limited company (ASA) in 2010. The decision meant an increase in the taxable basis for depreciation and thus reduced the tax payable for 2010 and the following years. Gjensidigestiftelsen received a similar decision, and appealed the decision on the grounds that there was no basis for the change and that the tax office had based its decision on an incorrect valuation. Gjensidige decided to join the complaint.
Sensitivity - 1%-point discount rate 12.6% 12.3% + 1%-point discount rate (10.6%) (10.1%) - 1%-point salary adjustment (3.1%) (2.7%) + 1%-point salary adjustment 3.8% 3.7% - 1%-point social security base amount 1.7% 1.6% + 1%-point social security base amount (1.6%) (1.4%) + 1%-point future pension increase 10.8% 10.3% 10% decreased mortality 2.9% 2.8% 10% increased mortality (4.0%) (3.8%)
Amortisation and impairment losses As at 1 January 2019 (263.7) (1,190.8) (966.4) (637.9) (3,058.7) Amortisation (155.1) (290.3) (101.6) (547.1) Disposals/reclassifications 33.8 493.1 57.6 584.6 Exchange differences 1.5 7.0 2.4 7.0 17.9 As at 31 December 2019 (262.2) (1,305.1) (761.2) (674.9) (3,003.3)
Carrying amount As at 1 January 2019 31.7 220.1 251.9 As at 31 December 2019 30.3 1,031.4 192.7 10.5 1,264.9
Lease liability Undiscounted lease liability 1 January 1,233.7 1,462.1 Effect of discounting of the lease liability (108.6) (157.7) Discounted lease liability 1 January 1,125.1 1,304.5
Gjensidige has not received a reduction in rental costs or other relief as a result of Covid-19, and therefore has no further information in accordance with IFRS 16.60A.
Perpetual Tier 1 capital Perpetual Tier 1 capital consists of a perpetual hybrid instrument in Forsikring ASA, classified as equity.
Dividends Gjensidigestiftelsen (proposed and declared in Gjensidige Forsikring ASA) 3,049.8 3,812.2 NAF Forsikringsformidling AS 0.2
Other comprehensive income Other comprehensive income that are not reclassified to profit or loss Changes in estimates related to defined benefit plans 10 (109.6) (116.4) Tax on other comprehensive income that are not reclassified to profit or loss 9 27.4 29.1 Total other comprehensive income that are not reclassified to profit or loss (82.2) (87.3)
Cash flow from operating activities Premiums paid, net of reinsurance 26,013.8 24,472.9 Claims paid, net of reinsurance (17,562.0) (18,080.4) Net receipts/payments from financial assets 3,097.4 (3,708.6) Operating expenses paid, including commissions (3,183.0) (3,180.4) Taxes paid (1,124.8) (711.3) Net cash flow from operating activities 7,241.3 (1,207.8)
Depreciation Each component of plant and equipment are depreciated using the straight-line method over estimated useful life. Land, leisure houses and cottages are not depreciated. The estimated useful lives for the current and comparative periods are as follows, with technical installations having the highest depreciation rate
Claims incurred Gross - direct business and accepted proportional reinsurance (951.4) (907.8) (512.6) (1,074.5) (3,669.9) (215.0) (6,715.1) (768.7) (855.0) (956.3) (1,029.7)
Premiums earned Gross - direct business and accepted proportional reinsurance 26,449.8 Gross – accepted non-proportional reinsurance 6.1 21.5 1.1 130.0 158.6 Reinsurers' share (2.9) (623.6) Net 6.1 21.5 1.1 127.0 25,984.8
Bonds and other fixed-income securities Net interest income/(expenses) from bonds and other fixed-income-securities 261.6 271.8 Unrealised gains/(losses) from bonds and other fixed-income securities (128.9) 344.1 Net realised gains/(losses) from bonds and other fixed-income securities 427.4 163.9 Total net income and gains/(losses) from bonds and other fixed-income securities 560.1 779.8
Binding guidelines for shares, subscription rights etc. for the upcoming financial year Of the variable remuneration earned in 2020 by the CEO and other employees covered by the Regulations relating to remuneration in financial institutions, 50 per cent of the gross earned variable remuneration will be given in the form of a contingent promise of shares in Gjensidige Forsikring ASA. One third of the shares will be released in each of the following three years, provided that the conditions for allocations are fulfilled.
The Board has decided to continue the Group’s share savings programme for employees in 2021. The CEO and executive personnel are entitled to take part in the programme on a par with other Gjensidige employees. Under the current programme, employees can save through deductions from their salary for the purchase of shares in Gjensidige Forsikring ASA for up to NOK 90,000 per year. Purchases take place quarterly following publication of the results. A discount of 25 per cent of the purchase price is offered, limited upwards to NOK 7,500. For those who keep the shares and are still employed in the Group, one bonus share is awarded for every four share they have owned for more than two years.
Change in deferred tax Deferred tax liabilities as at 1 January 1,391.4 1,289.0 Change in deferred tax recognised in profit or loss (166.1) 111.5
Wage growth will deviate from the path defined by employees getting higher or lower wage growth than what the job indicates. Gjensidige manages employees’ wage growth based on collective agreements and individual agreements. Salary levels can increase strongly from one year to the next.
Shares and similar interests 494.1 494.1 Bonds 1,994.1 1,994.1 Loans, receivables and bank deposits 32.8 32.8 Total 2,521.0 2,521.0
Shares and similar interests 14 5,522.4 5,522.4 6,545.3 6,545.3 Bonds and other fixed income securities 28,245.9 28,245.9 28,446.3 28,446.3 Loans 1.9 1.9 2.2 2.2
Financial assets at amortised cost Bonds and other fixed income securities classified as loans and receivables 16,210.0 (0.0) 16,210.0 Loans 2,371.5 2,371.5
Receivables in relation with asset management is short-term receivables regarding financial investments.
Deloitte AS Dronning Eufemias gate 14 Postboks 221 Sentrum NO-0103 Oslo Norway
Engaged employees 84-88 102-9 Supply chain Gjensidige’s business model 36 102-10 Significant changes to the organization and its supply chain
Description of the GRI Standards Comment Page 305-1 Rskl §3-3a, c Direct (Scope 1) GHG emissions
Description of the GRI Standards Comment Page 415 Public Policy 415-1 Political contribution
Appendix 4 - Statement on equality At Gjensidige, we work to make sure that we have an inclusive culture where everyone is treated equally and with respect. We must acknowledge our employees’ knowledge, competencies and strengths, regardless of gender, pregnancy, leave of absence for childbirth or adoption, care responsibilities, ethnicity, religion, beliefs, functional impairment, sexual orientation, gender identity and gender expression, and combinations of the above.
Postponed For practical reasons, this has been postponed, but the work will resume in 2021.
Ensure good gender balance in all personnel processes, including talent programmes, mentor programmes, management development, recruitment
Initiated The work has been demanding because so many of our employees have worked from home, which means we have had fewer work placements / less work training. Despite this, we have recruited employees with gaps in their CVs in 2020 and had candidates on work placements and in work training. Hopefully, the work can be intensified in 2021.
The table below displays the numbers, in CO2 equivalents, composing the climate footprint of Gjensidige’s internal operations as a group for 2020. The numbers are registered according to the established guidelines for the scopes 1-3 (following the GHG Protocol). Related to scope 1, the footprint results from travels conducted by car (mostly leased company cars). Concerning scope 2, we use both district heating and electricity for our operations, and we purchase Guarantees of origin for some of our electricity consumption. As for scope 3, this relates to air travels conducted by our employees as part of our operations.