Gjensidige (GJF) Investor Update summary

Transaction overview

• Sale of Baltic operations (ADB Gjensidige) to ERGO International AG for EUR 80 million, payable in cash at closing, at a 2x price-to-book multiple, subject to regulatory approvals and price adjustments for equity changes between signing and closing.

• Transaction aligns with a strategic focus on the Nordic P&C markets, aiming to create long-term shareholder value and improve profitability and growth in core regions.

• Sale expected to result in an accounting loss of approximately NOK 120 million in Q3 2024, with a positive impact on the group's solvency ratio by about 4 percentage points at closing.

• Closing anticipated in the second half of 2025 or early 2026, depending on regulatory and competition authority approvals.

• ADB Gjensidige will be classified as held for sale, with separate financial statement presentation.

Financial and dividend implications

• The NOK 120 million loss will affect P&L but not the 2024 dividend decision; dividend policy remains unchanged.

• Payout ratios above 100% are possible with FSA approval, while 50–100% require notification; solvency remains the key consideration.

• No current plans for special dividends from the sale proceeds; capital management will be continuously assessed.

• The Group's financial targets remain unchanged, and the sale will not significantly impact overall financials.

Strategic direction and M&A outlook

• Focus remains on profitable growth in the Nordic P&C market, both organically and through selective, value-creating acquisitions.

• Appetite exists for larger deals if they are financially and strategically sound, but only within the Nordics.

• Swedish operations are more integrated and synergistic with the group than the Baltics; aim to grow scale and profitability in Sweden over time.

• Mobility sector M&A is not a priority; focus is on partnerships rather than acquisitions in that space.

• Management expects further consolidation in the Nordic P&C market and intends to participate if opportunities align with strategy.