Análisis e interpretación de resultados

Member of Gjensidige’s Board as an employee representative since 2008.

Customer adviser in Gjensidige, and an employee representative in the Finance Sector Union. Number of shares in Gjensidige Forsikring ASA (including shares, if any, held by closely related parties): 785 (last change 10 December 2012)

Ms. Andersen stands for election to the board in 2013.

programmes, a new office concept focusing on financial advisory services and a number of other measures aimed at retaining customers shall further strengthen existing customer relations.

Market position

A strong brand, experience, competence, extensive data and an analytical approach to customer and risk selection and market activities represent important competitive advantages in a market characterised by increasingly tough competition.

Gjensidige is market leader in the Norwegian general insurance market, where the Group has very high brand recognition and brand strength. Gjensidige was the biggest player in Norwegian non-marine general insurance in 2012 as well, with a market share of 25.3 per cent of an overall market of NOK 48.3 billion, down from 26.3 per cent in 2011. (Source: Finance Norway – FNO.) The change is mainly due to competition combined with strategic customer selection, which is in line with the strategy of prioritising profitability over growth.

The company had a market share of 22.8 per cent in the private market at the end of 2012. The market share in the commercial market was 30.8 per cent. This includes the agricultural market, where the market share seen in isolation was 72.4 per cent of a total market of NOK 1.3 billion.

The market shares in Denmark and Sweden were 5.5 per cent (based on the most recent statistics from the Danish Insurance Association as of 31 December 2011) and 1.1 per cent, respectively (source: Insurance Sweden, statistics as of 31 December 2012). In the Baltic general insurance market, Gjensidige had a market share of

7.8 per cent in 2012 (source: Insurance Supervisory Commission of the Republic of Lithuania; Latvian Insurers Association; Statistics Estonia).

The market share within group pension was 8.3 per cent, while the market share within defined contribution pension was 9.3 per cent. The market share within the transfer market for private pension was 23.8 per cent and 19.0 per cent for group pension as of third quarter 2012. (Source: Finance Norway)

Distribution

Norway

Gjensidige has approximately 751.000 customers in the private segment and approximately 164.000 in the commercial segment in Norway. Distribution mainly takes place via own distribution network or via agents and dealers/partners. Only 4 per cent of Gjensidige’s Norwegian commercial customers (18 per cent of the premium volume) are served indirectly through brokers.

Both the private and the commercial segment distribute products and services through a combination of telephony, the internet and local branch offices. The cus- tomers can choose their point of contact and the service they want, and they shall experience the same quality and service regardless of channel. The multi-channel model contributes to both good customer experiences and cost-efficient distribution. The division of roles between the different channels has been changed and made more clear in recent years. Sales centres (outbound call centres) focus on new sales, while the customer centres (incoming call centre) deal with customers who contact Gjensidige for purchases, changes or advice. Of 36 local branch offices, 20 have been upgraded to financial offices that offer advisory services in insurance, banking, pensions and savings. The customers are offered products and services via a single point of contact, which is easier for the customers and increases the possibility of increased sales of a wider range of products.

The customer portal gjensidige.no is becoming increasingly important for Gjensidige’s contact with its customers. Private and commercial customers have a complete over-

view of their own products and can manage their own customer account, for example by reporting a claim or making changes to a fund. Approximately 16 per cent of sales to private customers are now initiated at gjensidige.no. It is expected that this distri- bution channel will continue to see strong growth. Customer service staff contribute to an increased degree of self-service by actively referring customers to the portal. Nordic

The Nykredit group provides general insurance on behalf of Gjensidige to both the private and the commercial market in Denmark. The strategic collaboration on distribution represents considerable potential for Gjensidige.

The private market is served via call centres and the internet. Private insurance products are also sold through a number of partners.

In the Danish commercial market, sales are conducted in cooperation with brokers and own insurers in the market for small and medium-sized customers and agri- cultural customers. Distribution in the municipal market is conducted either directly or through brokers. The market is primarily based on competitive tenders.

In Sweden, general insurance products are distributed to private customers both directly on the telephone and the internet and through insurance mediators (partners and agents). In the commercial market, distribution mainly takes place through insurance brokers and partners.

The Baltics

The most important distribution channels in the Baltics are direct sales and sales through insurance agents and brokers. The importance of online sales as a distri- bution channel continues to increase in the Baltic market. Increased sales via the internet and call centres are being prioritised in order to achieve more efficient operations in the time ahead.

Gjensidige is also positioned for product deliveries adapted to different distribution channels, both in Norway and in the rest of the Nordic countries. Distribution largely takes place through agents and business partners such as shops, car dealers and banks that wish to expand their product range with insurance products under their own label (‘white label’).

Information technology

Efficient processing and utilisation of information is becoming an increasingly important competitive advantage in the insurance industry. Gjensidige is in a good position through a joint Nordic ICT platform, where all products and customer data are available on the same system platform. It is also used by the banking, pension and savings businesses. The system gives a high degree of flexibility and ensures a uniform customer experience across channels, at the same time as it is cost-effi- cient because maintenance is carried out in one place. A flexible service architecture enables use of functionality from the core system and information from the cus- tomer system for self-service solutions, internal user interfaces and other support systems and in the work on optimal customer and risk selection and tariff setting. Gjensidige’s ICT platform is also a good basis for automation of the claims handling processes. The potential is considerable. Every year, around 350,000 frequency claims are reported in Gjensidige’s Norwegian business. One out of six claims handling pro- cesses relating to these claims are currently automated. In the long term, it should be possible to automate almost 80 per cent of the most common claims settlements.

The year 2012

Favourable weather situation

While the number of natural disaster claims in Norway in 2011 was the highest since 1992, and claims costs related to extreme weather amounted to almost NOK 330 million for Gjensidige, the weather in 2012 was unusually mild and with no large

Trond Vegard