Protector Forsikring

Investor Presentation • Jul 11, 2024

Disclaimer

This presentation and the information contained herein have been prepared by and is the sole responsibility of Protector Forsikring ASA (the "Company"). Such information is being provided to you solely for your information and may not be reproduced, retransmitted, further distributed to any other person or published, in whole or in part, for any purpose. Failure to comply with this restriction may constitute a violation of applicable securities laws. The information and opinions presented herein are based on general information gathered at the time of writing and are therefore subject to change without notice. The Company assumes no obligationsto update or correct any of the information set out herein.

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Investor Presentation

Henrik Høye Chief Executive Officer

Vision

The Challenger

Business Idea

This will happen through unique relationships, best in class decisionmaking and cost effective solutions

Main targets

Cost and quality leadership

Profitable growth

Top 3

Values

Credible

Innovative/Open

Bold

Committed

		Other highlights
Combined Ratio	Combined Ratio	• "Project France" start quotation in Q3 for January 1st 2025
Gross premiums written	Gross premiums written	• Dividend of NOK 165m or NOK 2 per share
LCY GWP growth	LCY GWP growth
Total investment return	Total investment return
Profit for the period	Profit for the period
Solvency Capital Ratio	Solvency Capital Ratio
Earnings per share	Earnings per share

Claims update

• Motor still behind target
  • Insufficient previous actions
  • Lagged premium increase effects
• Large losses¹ at 12.5% (4.7%)
  • Seven (7) large loss events only property claims
• Run-off gains at 2.1% (gains of 2.9%)
  • Run-off gains mainly driven by property Sweden
• H1: Large losses YTD² 9.5% (3.1%) driven by property, neutral run-off

Loss ratios
Segment	02 24 Gross	Q2 24 Net	Q2 23 Gross	Q2 23 Net
Norway	80%	81%	82%	84%
Sweden*	69%	71%	78%	82%
Denmark	139%	146%	82%	89%
UK	63%	73%	41%	55%
Protector	77.7%	83.9%	65.2%	72.6%

*Includes Finland
-------------------	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--

Loss ratios
Segment	H1 24	H1 24	H1 23	H123
	Gross	Net	Gross	Net
Norway	86%	87%	82%	85%
Sweden*	76%	77%	81%	85%
Denmark	112%	117%	100%	94%
UK	62%	72%	62%	59%
Protector	77.0%	82.3%	77.4%	77.2%

*Includes Finland

¹ Large losses defined as absolute net losses > MNOK 10

²Large losses YTD – defined as above, but evaluated over the cumulated time period. Further details can be found in a separate document on Alternative Performance Measures (APM) published at protectorforsikring.no/investor.

Large losses¹ and run-off

• Large loss of NOK 358m or 12.5% (111.7 or 4.7%)

  • Mainly driven by 3 large property claims, 2 in Denmark and 1 in the UK

• Run-off gains at 2.1% (gain of 2.9%)

  • Run-off gains in SE, DK and NO, loss in UK
• Some volatility in reserves & large losses must be expected
  • Best estimate reserving practice, run-off at 0% over time

6

• Q2 growth at 16%
  • Renewal rate at 101%
  • Growth driven by low churn and new sales
• Negative growth in SE linked to consumer scheme run-of
  • Very limited in H2
• From Q1 presentation: April 1st is the largest inception date in the UK
  • NOK 477m growth in GWP (28% in LCY), driven by Public and Housing

Segment	Q2 24			Q2 23 Growth NOK %	LCY%
Norway	505	373	133	36%	36%
Sweden*	556	635	-79	-12%	-6%
Denmark	103	125	-22	-18%	-1%
UK	2 387	1 925	462	24%	20%
Protector	3 551	3 057	494	16%	16%

*Includes Finland

Segment	H1 24		H123 Growth	NOK %	···· LCY%
Norway	1 855	1 539	315	20%	20%
Sweden*	2 055	2 062	-7	-0%	-1%
Denmark	1 255	1 105	150	14%	12%
UK	2 816	2 294	521	23%	18%
Protector	7 981	7 001.	980	14%	12%

*Includes Finland

	Norway		Sweden*		Denmark		UK		Protector
NOKm	Q2 24	Q2 23	Q2 24	Q2 23	Q2 24	Q2 23	Q2 24	Q2 23	Q2 24	02 23
Gross premium written	505	373	556	635	103	125	2 387	1 925	3 551	3 057
Insurance revenues	564	457	678	670	384	337	1 238	924	2 865	2 387
Insurance service result	રેક	50	101	26	(204)	14	198	293	157	384
Loss ratio, gross	79.9%	82.1%	68.6%	78.5%	139.4%	82.1%	62.5%	41.0%	77.7%	65.2%
Net reinsurance ratio	1.4%	1.6%	2.0%	3.6%	6.2%	6.4%	10.7%	13.6%	6.2%	7.5%
Loss ratio, net of reinsurance	81.2%	83.6%	70.6%	82.0%	145.6%	88.5%	73.2%	54.6%	83.9%	72.6%
Cost ratio	7.6%	5.5%	14.6%	14.0%	7.6%	7.2%	10.8%	13.7%	10.6%	11.3%
Whereoff commissions to brokers and agents	3.6%	1.1%	7.8%	7.0%	0.1%	0.0%	4.7%	5.1%	4.5%	4.1%
Combined ratio	88.8 %	89.1 %	85.1 %	96.1 %	153.2 %	95.7 %	84.0 %	68.3 %	94.5 %	83.9 %

*Includes Finland

	Norway		Sweden*		Denmark		UK		Protector
NOKm	H1 24	H1 23	H1 24	H1 23	H1 24	H1 23	H1 24	H1 23	H1 24	H1 23
Gross premium written	1 855	1 539	2 055	2 062	1 255	1 105	2 816	2 294	7 981	7 001
Insurance revenues	1 098	920	1 391	1 320	766	629	2 345	1 505	5 600	4 374
Insurance service result	e J	87	130	29	(186)	(5)	393	408	398	520
Loss ratio, gross	85.9%	82.1%	76.5%	81.0%	111.8%	99.8%	61.9%	62.1%	77.0%	77.4%
Net reinsurance ratio	1.4%	2.5%	0.5%	3.6%	5.1%	-6.1%	9.9%	-2.8%	5.2%	-0.2%
Loss ratio, net of reinsurance	87.3%	84.6%	77.0%	84.6%	116.8%	93.7%	71.8%	59.4%	82.3%	77.2%
Cost ratio	7.2%	5.9%	13.7%	13.2%	7.5%	7.0%	11.4%	13.5%	10.6%	10.9%
Whereof commissions to brokers and agents	2.7%	1.1%	7.6%	6.7%	0.1%	0.0%	4.8%	5.4%	4.3%	4.0%
Combined ratio	94.5 %	90.5 %	90.7 %	97.8 %	124.3 %	100.7 %	83.2 %	72.9 %	92.9 %	88.1 %

*Includes Finland

Vision

The Challenger

Business Idea

This will happen through unique relationships, best in class decisionmaking and cost effective solutions

Main targets

Cost and quality leadership

Profitable growth

Top 3

Values

Credible

Innovative/Open

Bold

Committed

Investment performance

1.3 % return in Q2 |3.0 % return in H1

• NOK 271m, or 1.3 % return in Q2

  • Equities: NOK 19m, or 0.6 %
  • Put options: NOK -9m
  • Bonds: NOK 261m, or 1.4 %
    • Interest rate swaps: NOK -50m

• NOK 621m, or 3.0 % return in H1

  • Equities: NOK 223m, or 7.4 %
  • Put options: NOK -22m
  • Bonds: NOK 420m, or 2.4 %
    • Interest rate swaps: NOK -162m

• High return in quarter for Nordic HY bonds

  • DNB Nordic HY index return 2.6 %

H1 investment results

¹ Put options included in total return and excluded in equity return

Investment portfolio statistics Bond portfolio yield at 5.4 %, before cost of risk

• Bond portfolio yielding 5.4 %, before cost of risk
  • Avg. reference rate stable from Q1
  • Decreased risk for bonds during Q224
    • HY portfolio totalling ≈ NOK 4.1bn vs. NOK 4.7bn Q124
    • Credit duration decreased to 1.8, down from 1.9 Q124
    • Average rating A with stable outlook

• Equity share at 14.1 %, down from 14.4 % Q1

	Investment portfolio statistics	30.06.24	30.06.23	31.03.24
	Size bond & cash eq. (NOKm) 2	19 094	15 143	18 085
	Avg. ref. rate (NIBOR, STIBOR, etc.)	4.0 %	4.1 %	4.0 %
	Avg. spread/risk premium (bps)	141	204	183
Bonds 1	Yield3	5.4 %	6.1 %	5.8 %
	Duration3	2.3	2.6	2.3
	Credit duration	1.8	1.9	1.9
	Avg. rating4	A	A-	A

¹ Bank deposits included

²Size includes currency swaps

3 Interest rate swap effect included

⁴ Avg. linear rating based on official rating (>45%) and 'Protector rating' (<55%)

Balance sheet SCR ratio¹ at 191%

In NOKm	30.06.2024	30.06.2023	31.12.2023
Financial assets	22 252	17 345	18 042
Derivatives	79	27	265
Bank deposits	163	46	324
Other assets	1 847	1 837	1 589
Discontinued operations	0	517	655
Total assets	24 341	19 772	20 874
Total equity	4 688	4 045	4 529
Subordinated loan capital	1 892	1 245	1 892
Insurance contract liabilities	16 184	12 810	12 559
Derivatives	120	58	241
Other liabilities	1 457	1 284	1 396
Discontinued operations	0	330	258
Total equity and liabilities	24 341	19 772	20 874

• Positive technical and investment result
• Dividend of NOK 2 per share, NOK 165m in total:
  • Flat development in own funds
• Solvency capital requirement driven by growth

SCR ratio composition

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

Solvency II SCR ratio at 191%

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

Composition of SCR:

• Net insurance risk 65%
• Net market risk 27%
• Other risks 8%

Eligible solvency capital:

• Guarantee provision and proposed dividend subtracted from own funds

Vision

The Challenger

Business Idea

This will happen through unique relationships, best in class decisionmaking and cost effective solutions

Main targets

Cost and quality leadership

Profitable growth

Top 3

Values

Credible

Innovative/Open

Bold

Committed

		Other highlights
Combined Ratio	Combined Ratio	• "Project France" start quotation in Q3 for January 1st 2025
Gross premiums written	Gross premiums written	• Dividend of NOK 165m or NOK 2 per share
LCY GWP growth	LCY GWP growth
Total investment return	Total investment return
Profit for the period	Profit for the period
Solvency Capital Ratio	Solvency Capital Ratio
Earnings per share	Earnings per share