Operating expenses, general insurance NOK million (3,191.4) (3,217.6) (3,054.0) (2,857.8) (2,751.8)
Key figures 2,250 Norway 705 Denmark 665 Baltics 385 Sweden 3,786 General insurance 144 Retail Bank 75 Pension and Savings
The year 2016 was not particularly costly in terms of natural disaster claims. In August, however, there was a torrential downpour in a limited part of the Oslo area that, in the course of just over an hour, led to unusually large losses. We see this as part of a trend where climate-related losses become more frequent and more extensive than before. So far, the situation is not dramatic for us, but we are keeping a keen eye on developments, both in terms of loss prevention and as regards the need to change tariffs.
We will increase our focus on accident and health insurance. It is an area that we expect to grow and develop in the Nordic countries for many years to come. An increased standard of living and higher life expectancy mean that there will be demand for more health services than the public health services can offer. This will create room for more solutions financed by private parties. Gjensidige will play a key role in this future situation.
Combined ratio 95.8 % 90.3 % 91.9 % Source: The Danish Insurance Association, based on gross premiums earned 4th quarter 2015
Source: Finance Norway, 3rd quarter 2016, Assets under management * Unit linked
In Norway, we give an insurance discount to young people who have practised driving with an accompanying driver for a sufficient number of kilometres.
Customised management development programmes have been developed for groups of managers with different experience backgrounds, from newly appointed managers to the senior management group. The management training programme was updated towards the end of 2016, with a view to making the training more adapted to the individual.
Whistleblowers are protected by Norwegian law and the Company’s internal regulations, and employees who report such matters shall not be subjected to reprisals.
Zero tolerance for corruption Denmark, Sweden and Norway are all among the six countries in the world with the lowest perceived levels of corruption, according to Transparency International. In Estonia, Latvia and Lithuania, corruption is perceived as a bigger problem, according to the same ranking.
For Gjensidige, the risk of corruption will largely be related to the Company’s sale of insurance and investment advice to the private and public sector, entering into agreements and the procurement of goods and services.
The offices that are certified Eco-Lighthouses use an environmental management system for the handling and reduction of materials consumption, waste, energy consumption and transport.
By their nature, losses have a negative impact on the environment, since resources are needed to repair the damage or replace the loss. The insurance premium is affected by the risk of loss, and, together with our loss prevention work, this contributes to fewer losses and less harm to the environment.
In 2016, Gjensidige celebrated its 200th anniversary. In that connection, all the Company’s employees were given an opportunity to spend one working day on a humanitarian cause in their local community. As many as 750 employees in Norway, Denmark and Sweden made use of the
opportunity. Many organised bicycle rides for residents in nursing homes, provided language tuition to immigrants and helped out with activities for people who struggle for various reasons. Others performed practical work for charitable organisations, and helped to create better local communities. The initiative was called ‘Good deeds’ and the feedback from both the employees who participated and those who in one way or another benefited from the good deeds was unequivocally positive. Because the initiative was so well received, we will enter into agreements with several of the organisations, so that our employees can contact them to perform voluntary work in 2017 as well.
At present, Gjensidige’s Nomination Committee consists of five members. All members are independent of the Board and other executive personnel. According to the rules of procedure for the Nomination Committee, the members should reflect the interests of the shareholders as a whole. As majority owner, the Gjensidige Foundation is represented by two members. This recommendation was followed in 2016.
The Board of Gjensidige shall be broadly composed, and consideration shall be given to the Board’s ability to work well as a collective. In the rules of procedure for the Nomination Committee, the general meeting sets out the following guidelines for the Nomination Committee’s work: • The Nomination Committee shall emphasise that all proposed candidates for the Board have the necessary experience, qualifications and capacity to carry out the duties of the office in a satisfactory manner.
Information about the members of the Board: Number of board meetings attended
The main purpose of risk management and internal control is to provide reasonable assurance of goal attainment through the following methods: • Targeted, efficient operations.
The Retail Bank and Pension and Savings showed continued positive development, with strong growth in volumes and profitability.
Sales and advisory services are mostly offered via our own distribution network, but we also use agents and dealers in some cases. We also cooperate with several local mutual fire insurers. Gjensidige has cooperation agreements with several large national trade unions and interest organisations. The organisations’ members enjoy customer advantages in Gjensidige through these agreements.
Other Gjensidige is also positioned to deliver products adapted to other distribution channels, both in Norway and in the other Nordic countries. Distribution largely takes place via agents, in addition to business partners, such as shops and car dealers that wish to expand their product range with insurance products under their own label (‘white label’).
Customer satisfaction is high in Norway, which confirms high satisfaction with our services. Around 70 per cent of our private customers are members of an organisation- or loyalty programme, and these customers are characterised by even higher loyalty than average.
Daugaard is up for election to the Board in 2017. Daugaard held 3,000 shares in Gjensidige Forsikring ASA, including any shares held by closely related parties as at 31 December 2016 (last change 5 April 2016).
Giverholt is Chairman in Elopak AS and Ortomedic AS. He is a board member in Aars AS and A Wilhelmsen AS.
An attractive share The Gjensidige share yielded a total return for the shareholders of 5 per cent in 2016. The return on Oslo Børs was 12 per cent in the same period. Since the Company was listed on the stock exchange in December 2010, the Gjensidige share has yielded a total return of 275 per cent. The average daily trading volume on Oslo Børs was around 440,000 shares in 2016, and the share is one of the 25 most liquid shares listed there. In addition, a substantial number of shares are traded in other marketplaces. Gjensidige pursues a shareholder-friendly capital and dividend policy, and the Gjensidige share is and should be a dividend-paying share.
Amortisation and impairment losses of excess value – intangible assets (25.8) (12.0)
1 Large losses = loss events in excess of EUR 0.5 million. Claims incurred in excess of this per event are as a rule charged to the Corporate Centre.
Earned premiums 1,479.4 1,431.5 Claims incurred etc. (1,283.5) (1,275.7) Net insurance revenue 195.9 155.9 Management income etc. 126.2 119.5 Operating expenses (223.9) (222.0) Net operating income 98.1 53.4 Net financial income 27.3 30.8 Profit/(loss) before tax expense 125.4 84.2
Geographic distribution match portfolio at the end of 2016 47.7% Norway 5.6% Sweden 21.9% Denmark 7.1% USA 8.5% UK 1.7% Baltics 7.5% Other
Total return swaps have been entered into between Gjensidige Forsikring ASA (GF), Gjensidige Pensjon og Sparing AS (GPS) and Gjensidige Pensjonskasse (GPK), whereby GPS and GPK will receive a return on property, while GF will receive a return on money market instruments plus a margin. The underlying amount in the agreements is NOK 0.2 billion.
The Board has decided to pay employees of Gjensidige Forsikring ASA a collective bonus corresponding to NOK 20,700, including holiday pay, per full-time employee. The bonus is based on the combined ratio achieved and on the development of the portfolio and customer satisfaction in 2016.
Profit/(loss) attributable to: Owners of the company 4,670.4 3,788.8 Non-controlling interests (4.5) (4.1) Total 4,665.9 3,784.7
Financial assets Financial derivatives 8 1,335.4 486.5 Shares and similar interests 8, 12 6,892.1 7,202.3 Bonds and other securities with fixed income 8 30,385.8 30,626.4 Bonds held to maturity 8 1,625.9 2,635.6 Loans and receivables 8, 9 60,030.6 55,837.3 Assets in life insurance with investment options 8 17,780.0 15,109.6 Reinsurance deposits 0.3 0.9 Reinsurers' share of insurance-related liabilities in general insurance, gross 13 706.8 533.0 Receivables related to direct operations and reinsurance 9 5,621.5 4,997.4 Other receivables 9 945.9 502.7 Prepaid expenses and earned, not received income 9 91.3 96.7 Cash and cash equivalents 10, 11 2,158.7 3,151.9
Total items that may be reclassified subsequently to profit or loss 451.5 17.0 468.5
Cash flow from financing activities Payment of dividend (6,152.7) (2,949.6) Net receipts/payments on subordinated loans Gjensidige Forsikring ASA 261.7 (36.9) Net receipts/payments regarding perpetual Tier 1 capital and non-controlling interests 997.0 297.1 Net receipts/payments on loans to credit institutions 2,003.6 7,554.7 Net receipts/payments on other short-term liabilities (19.9) 40.7 Net receipts/payments on interest on funding activities (310.4) (248.5) Net receipts/payments on sale/acquisition of own shares (3.7) (9.9) Net cash flow from financing activities (3,224.5) 4,647.7
If the fair value, after a reassessment of Gjensidige’s share in the net fair value of identifiable assets, liabilities and contingent liabilities exceeds the cost of the business combination, the excess amount is recognised immediately in profit or loss.
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. If indications of impairment losses are present, the recoverable amount of the asset will be estimated. Goodwill is tested for impairment annually or more often if there are indications that the amounts may be subject to impairment. The testing for impairment entails determining recoverable amount for the cash-generating unit. Normally recoverable amount will be determined by means of discounted cash flows based on business plans. The business plans are based on prior experience and the expected market development. See note 5 and 7.
Capital management The core function of insurance is the transfer of risk, and the Group is exposed to risk in its insurance and investment operations. Identification, measurement and management of risk are essential parts of the operations. All insurance companies must adapt their risk exposure to their capital base. On the other hand, solvency capital, or equity, has a cost. A key objective of capital management is to balance these two aspects. Gjensidige’s overall capital management objectives are to ensure that the capitalisation of the Group can sustain an adverse outcome without giving rise to a financially distressed situation and that the Group’s capital is used in the most efficient way.
The main differences between Solvency II valuation and valuation according to accounting principles are that: • Intangibles are valued to zero under Solvency II • Held-to-maturity-bonds are valued to market value under
Change in loss frequency (1%-point) General insurance Private 459.5 467.6 General insurance Commercial 1,080.2 1,044.5 General insurance Nordic 447.7 537.1 General insurance Baltics 55.0 10.8
Mortality and disability claims in 2016 amount to NOK 103 million (NOK 72 million in 2015). IBNR is NOK 1,090 million at end of year 2016 (NOK 864 million in 2015), and contributes to 52 per cent (49 per cent in 2015) of all disability and survivor benefit provisions (excluding paid-up policies). Reported and settled claims (premium reserve) amount to NOK 1,009 million (NOK 908 million in 2015). They are estimated as the present value of future obligation and contribute to 48 per cent (51 per cent in 2015) of all provisions.
Paid claims, reserves and IBNR continue to increase as expected, due to an increasing number of insured lives and risk years3. The number of retirees is expected to stay low, and benefits originate from defined contribution plans, paid-up policies or individual pension saving products.
HitecVision Private Equity V LP 125.0 Argentum Secondary III 98.5 HitecVision Asset Solution KS 74.1 HitecVision VI LP 64.6 Energy Ventures III LP 59.9 Total five largest 422.1 Total private equity 1,383.7
Property price risk Real estate constitutes a significant part of Gjensidige Forsikring’s portfolio. The motivation for investing in real estate is primarily that it enhances the risk-adjusted return of the asset portfolio, through an expected rate of return that lies between bonds and equities, and that there is a modest correlation with both of them.
106 | Gjensidige annual report 2016 exposed to investment risk in connection with the unit-linked portfolio. Here, both positive and negative returns go uncurtailed to the customers. The other portfolios expose the company’s equity to risk. Little risk is taken in connection with the corporate and other group policy portfolios. The assets are placed in bank deposits, funds and fixed-income securities with high creditworthiness, and some property. The corporate portfolio is financed by the company’s equity. In addition to bank deposits and money market funds, it includes a trading portfolio of securities to support deposits/withdrawals of funds in/from the customer portfolios. The other group policy portfolios are financed by the premium fund and claims provisions for unreported and not settled claims. The paid-up policies pay a minimum guaranteed return to the customers, at the same time as customers receive a share of any additional return over and above the minimum.
• Green zone SCR>115% • Yellow zone SCR <100-115%> • Red zone SCR<100%
The weighted average portfolio loan to value ratio is estimated at 61.7 per cent for the mortgage portfolio. This estimate is based on the exposure on the reporting date as a ratio of the property value as estimated upon loan approval, including any higher priority pledge(s). The bank’s credit policy is in accordance with the regulation for new mortgage loans set by the Ministry of Finance on 15 June 2015.
General Insurance Nordic The Nordic segment includes the Group’s operations in the Danish and Swedish private, commercial and municipal markets, including insurances related to motor, property, accident and health, liability and leisure.
General Insurance Baltics Gjensidige’s Baltic operations provide general insurance products to the private and commercial markets in Latvia, Lithuania and
Retail Bank Gjensidige Bank is online pure internet bank which shall contribute to sales of a wide range of products to general insurance customers in Norway. The bank offers mortgages, car financing, unsecured lending, savings, credit cards and day-to-day banking services.
Amortisation and impairment losses As at 1 January 2016 (306.6) (752.9) (46.0) (656.9) (231.8) (1,994.3) Amortisations (144.6) (0.2) (168.8) (129.8) (443.3) Disposals/reclassifications 46.4 10.8 0.1 16.0 2.2 75.5 Impairment losses recognised in profit or loss during the period (1.5) (1.5)
Gouda portfolio Nordic 81.5 85.8 Vardia portfolio Nordic 63.4 ADB Gjensidige Baltics 398.9 425.8 Gjensidige Bank Retail Bank 1.5 Gjensidige Forsikring, white label Private 128.7 128.7
Total shares in associates and joint ventures 1,092.2 1,601.6 1,127.4 1,547.8 1 Subordinated loan of NOK 24.0 million is included in cost.
Financial assets held to maturity Bonds held to maturity 1,625.9 1,702.3 2,635.6 2,800.5
Net investment in the foreign operation Market value as at 31.12.2015
Mortgage loans consist mainly of loans from the Gjensidige Bank Group. Primarily this is loans with floating rate to customers in the private segment. Bonds are securities classified as loans and receivables in accordance with IAS 39. Of other loans NOK 80.3 million (101.6) are loans given to agricultural customers. The loans are in their entirety intended for installment of fire detection systems with these customers. There is no mortgage attached to the loans, and the terms vary from one year to over 20 years. Gjensidige Forsikring has not offered this type of loan to its customers since 2008. The default rate is 1.47 (1.00) per cent at year end. Included in other loans are also NOK 40.0 million (60.7) in loans given with regard to sale of subsidiaries.
Total shares and similar interests owned by other group companies Shares and similar interests owned by Gjensidige Pensjonsforsikring AS 747.1 Shares and similar interests owned by Nykredit Forsikring A/S 5.8 Shares and similar interests owned by Gjensidige Bank ASA 4.6 Total shares and similar interests owned by other group companies 757.6
Claims reported and claims handling costs 16,978.8 18,331.2 Claims incurred, but not reported 15,468.8 14,847.2 Total claims provision, gross 32,447.5 33,178.5
Net deferred tax liabilities/(deferred tax assets) 852.6 822.9 Of this non-assessed deferred tax assets 19.1 12.9 Deferred tax liabilities 871.7 835.8
The Board Inge K. Hansen, Chairman 544.8 7.3 12,253 Trond V. Andersen (1.1.16-6.4.16) 1 139.8 7.9 Hans-Erik Andersson (1.1.16-6.4.16) 1, 7 180.0 4.5 Gisele Marchand 8 412.5 1.5 1,481 Knud Peder Daugaard (7.4.16-31.12.16) 1, 8 159.8 3.6 John Giverholt (7.4.16-31.12.16) 1 135.5 1.5 Anne Marie Nyhammer, staff representative (1.9.16-31.12.16) 1 22.6 Kjetil Kristensen, staff representative (1.1.16-31.8.16) 1, 4, 8 317.2 Gunnar Mjåtvedt, staff representative 4, 8 364.0 1,975 Per Arne Bjørge 8 364.0 2.9 10,542 Mette Rostad 268.0 2.1 1,550 Tine Wollebekk 1, 8 299.6 1.5 Lotte Kronholm Sjøberg, staff representative 4 268.0 5.9 429
Weighted average fair value of shares granted 2 143.60 131.40 Weighted average share price of shares released during the period 143.59 126.87 Fair value of shares granted that are to be settled in cash 149.20 142.10 2 The fair value is calculated based on the market value of the share at the time of allocation.
Weighted average number of shares 1 499,972,344 499,933,831 Weighted average number of diluted shares share-based payment 121,343 123,852 Weighted average number of shares, diluted 1 500,093,687 500,057,683
Insurance-related liabilities in general insurance, gross Provision for unearned premiums, gross 4, 13 8,585.9 8,238.4 Claims provision, gross 4, 13 30,802.6 31,652.5 Provision for premium discounts and other profit agreements 56.3 44.5 Total insurance-related liabilities in general insurance, gross 39,444.8 39,935.4
Reclassified security provision 2,818.0 2,818.0 Deferred tax (760.9) (760.9) Equity as at 1.12.2015 1,000.0 (0.1) 1,430.0 22.8 59.2 (1,611.2) 17,320.5 18,221.4
Total items that may be reclassified subsequently to profit or loss 259.9 259.9
Foreign branches Foreign branches that have other functional currencies are translated to NOK by translating the income statement at average exchange rates for the period of activity, and by translating the balance sheet at exchange rates at the reporting date. Exchange differences are recognised as a separate component of equity. On disposal of the foreign operation, the cumulative amount of the exchange difference recognised in other comprehensive income relating to that foreign branch is recognised in profit of loss, when the gain or loss on disposal is recognised.
Fair value hedging has in 2015 been carried out to hedge the currency in fixed agreements of acquisition of operations. Gains and losses on the hedging instrument are recognised in profit or loss, together with the change in fair value of the fixed agreement. The change in fair value of the fixed agreement is recognised in the cost price of the share when the acquired operation is accounted for.
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 9.
Gross claims incurred (229.0) (673.2) (815.2) (1,205.2) (2,742.9) (105.3) (6,442.0) (344.0) (686.1) (783.4) (953.4) Incurred during the year (235.4) (751.7) (951.2) (1,566.6) (2,791.0) (115.0) (6,536.3) (370.4) (728.1) (918.8) (1,023.3) Incurred previous years 6.4 78.4 136.0 361.4 48.0 9.6 94.2 26.4 42.0 135.4 69.8
Premiums written Gross - direct business and accepted proportional reinsurance 300.1 21,965.7 Gross – accepted non-proportional reinsurance 6.0 12.0 7.6 126.9 152.6 Reinsurers' share (3.2) (52.0) (569.8) Net 6.0 12.0 7.6 123.7 248.0 21,548.6
Claims incurred Gross - direct business and accepted proportional reinsurance (149.5) (15,129.4) Gross – accepted non-proportional reinsurance (29.7) (3.9) (42.3) (76.0) Reinsurers' share 497.2 Net (29.7) (3.9) (42.3) (149.5) (14,708.2)
Subsidiaries - additional information Gjensidige Bank Holding (group) 44,753.1 3,192.9 41,560.1 805.2 322.2 N/A Gjensidige Norge AS 0.2 0.2 N/A Gjensidige Pensjon og Sparing Holding (group) 24,350.0 675.6 23,674.4 1,479.4 85.6 N/A Samtrygd Eigedom AS 6.7 6.5 0.2 0.3 N/A Lokal Forsikring (group) 10.0 9.4 0.6 0.3 N/A Nykredit Forsikring A/S 1,405.4 344.0 1,061.4 52.9 42.4 N/A Försäkringshuset Amb & Rosèn AB 4.2 3.2 1.0 2.9 N/A NAF Forsikringsformidling AS 80.2 60.1 20.0 (10.5) N/A Mondux Assurance Agentur A/S 59.7 38.1 21.6 16.1 N/A Mondux AB 12.9 10.7 2.2 0.2 N/A ADB Gjensidige 2,007.7 777.3 1,230.4 1,040.6 (132.3) N/A Gjensidige Investeringsrådgivning AS 32.2 23.5 8.7 42.6 7.9 N/A Krumtappen A/S 1.5 1.4 0.1 0.5 0.3 N/A Vardia Försäkring AB 30.0 (12.0) 42.1 (6.2) N/A Försäkringsakademin JW AB 11.7 9.9 1.8 0.2 N/A Total shares in subsidiaries 72,765.6 5,140.8 67,624.7 3,421.2 329.3
A financial asset/liability is considered valued based on observable market data if fair value is estimated with reference to prices that are not quoted, but are observable either directly (as prices) or indirectly (derived from prices).
Subordinated loans Midvest I 1.0 1.0 1.0 1.0 1.1 1.1 Midvest II 1.0 1.0 1.0 1.0 1.1 1.1 Norinnova Invest 1.5 1.5 1.5 1.5 1.7 1.5 Vervet AS 24.0 24.0 Total subordinated loans 3.5 27.5 3.5 27.5 3.9 3.7
Included in other loans are also NOK 40.0 million (60.7) regarding loans given with regard to sale of subsidiaries. The recognition of impairment losses is done on each loan individually on the basis of objective evidence. Impairment assessments are not done on groups of loans. Beyond the liabilities that arise from insurance contracts, Gjensidige Forsikring has not issued guarantees for which provisions have been made.
Equity funds Fisher Emerging Markets Equity Fund USD 281.5 Storebrand Global Indeks I 989 133 241 281.4 Nordea Stabile Aksjer Global 989 851 020 258.4 Nordea 1 SICAV Stable Emg. Market Equity B1- USD 231.0 Winton UCITS Funds plc - Winton Global Equity Fund 212.9 Danske Invest Norske Aksjer Institusjon I 981 582 020 174.1 Storebrand Norge 938 651 728 170.0 Sector Global Equity Kernel Fund Class P USD 150.0 INVESTEC GS GLOBAL EQTY-I$ 148.4 DB Platinum CROCI World ESG Fund 69.0 VanEck Vectors Gold Miners Etf 10.8 Total equity funds 1,987.3
Total shares and similar interests owned by Gjensidige Forsikring ASA 6,134.4
Claims reported and claims handling costs 15,593.1 17,038.3 Claims incurred, but not reported 15,209.4 14,614.3 Total claims provision, gross 30,802.6 31,652.5
Increase in liabilities Arising from current year claims 16,202.2 (479.2) 15,723.0 14,739.6 (2.6) 14,736.9 - of this paid (10,163.7) 485.5 (9,678.2) (8,327.0) 2.2 (8,324.8) Arising from prior year claims (run-off) (996.9) (18.0) (1,014.8) (736.2) (30.8) (767.0) Other changes, including effects from discounting 239.4 239.4 (0.5) (0.5) Exchange differences (538.0) 16.8 (521.2) 536.9 (29.3) 507.6 Total as at 31 December 30,802.6 (512.2) 30,290.3 31,652.5 (361.7) 31,290.8
Real wage growth will lead to an increase in the liabilities. Higher inflation will lead to an increase in wages, pensions and the discount rate. Gjensidige manages employees’ wage growth based on collective agreements and individual agreements. Salary levels can increase strongly from one year to the next. Operational risk Responsibility for administering the pension plans has been transferred to Gjensidige Pensjonskasse. Gjensidige Pensjonskasse has its own employees and makes substantial purchases of services from professional suppliers of pension fund management and asset management services. The pension fund is subject to internal control. Gjensidige considers the operational risk to be low. Minimum requirement for the level of pension assets The pension assets must meet certain minimum requirements defined in Norwegian laws, regulations and in orders issued by the Financial Supervisory Authority of Norway (FSA). If the level of the pension assets falls below a lower limit, Gjensidige will have to pay extra pension contributions to bring them up to the lower limit. On certain conditions, Gjensidige will also be repaid pension assets. A number of amendments to the Norwegian regulations were proposed in 2016. The amendments have not been adopted yet. One of the proposed amendments is to make pension assets in the pension fund subject to a funding requirement in line with Solvency II. The level of the pension assets is entering a period of political risk. Low interest rates can lead to the Financial Supervisory Authority instructing Gjensidige Pensjonskasse to lower interest rates from 2 per cent to 1.5 per cent, or 1 per cent for new earned benefits. Gjensidige expects there to be a high risk of the interest rates being reduced to 1 per cent if long-term government bond yields remain at the 1.3 per cent level.
Gjensidige assumes that a continued low interest rates in future and changes in EU based rules could entail an increase in future contributions to the funded pension plan.
Auditor's fee (incl. VAT) Statutory audit 2.6 2.6 Other assurance services 0.1 0.1 Other non-assurance services 0.5 0.5 Tax consultant services 0.1 0.7 Total auditor's fee (incl. VAT) 3.2 3.9
Gjensidige annual report 2016 | 183 18. Salaries and remuneration The average number of employees in the Group was 2,948 (2,926).
Total gains and losses in connection with sale, liquidation and impairment losses 8.2 99.5 720.6 16.5
Weighted average fair value of shares granted 2 143.60 131.40 Weighted average share price of shares released during the period 143.59 126.87 Fair value of shares granted that are to be settled in cash 137.00 142.10 2 The fair value is calculated based on the market value of the share at the time of allocation.
We conducted our audit in accordance with laws, regulations, and auditing standards and practices generally accepted in Norway, included International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company and of the Group as required by laws and regulations, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
When using historical empirical data as a basis for calculations, it is an underlying assumption that the historical development will continue into the future.
• evaluated the choice of models and parameters to ensure that they are adequate and appropriate e.g. in relation to the demographic composition of policyholders.
Gjensidige Forsikring ASA Schweigaardsgate 21, 0191 Oslo P.O.box 700, Sentrum, 0106 Oslo