Protector Forsikring

Investor Presentation • Jul 10, 2023

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

Claims update

• Result driven by strong property results and offset by weak motor
  • Same as for Q1
• Large losses¹ at 4.7% (2.7%)
  • 6 claims, equally driven by UK, Norway and Sweden
• Run-off gains at 2.9% (gain of 3.0%)
  • Run-off gains in UK, Norway, Finland and Sweden, loss in Denmark

5

• 2.0% loss linked to large claims from 2022

CONSTITUTION
Business unit	027231	Q2 23	Q2 22	02 22
	Gross	Net	Gross	Net
Norway	82 %	84 %	72 %	75 %
Sweden	82 %	86 %	65 %	68 %
Denmark	82 %	89 %	81 %	78 %
UK	41 %	55 %	72 %	77 %
Finland	48 %	49 %	85 %	84 %
Protector	65.7 % -	72.6%	71.8 % -	74 %

Loss ratios
Business unit	H1 23	H1 23	H1 22	H122
	Gross	Net	Gross	Net
Norway	82 %	85 %	78 %	81 %
Sweden	83 %	87 %	74 % -	75 %
Denmark	100 %	94 %	86 %	88 %
UK	62 %	59 %	69 %	78 %
Finland	65 %	65 %	76 %	76 %
Protector	77.4 %	772 % -	75.6 % -	79.4%

Large losses¹ and run-off Q2: Large losses of MNOK 111.7 or 4.7%, run-off gains at 2.9%

• Large loss of MNOK 111.7 or 4.7% (44.4 or 2.7%)
  • Only property claims
  • Including Protector's share of a natural peril event which occurred in Norway during the quarter of around 34 MNOK

• Primarily driven by run-off gains on motor and property

• Some volatility in reserves & large losses must be expected

6

NGAAP IFRS17

• Q2 growth of 71%

  • Renewal rate 106%, supported by price increases to counter claims inflation
  • UK accounts for 74% of new sales, Sweden 17%
  • Very low churn in the UK

• Old news: April 1st is the largest inception date in the UK

  • MGBP 72 growth in Public Sector and Housing Associations
  • High property share driven by market conditions
  • Growth volatility should be expected

Business unit	Q2 23			Q2 22 Growth NOK %	LCY%
Norway	373	338	34	10 %	10 %
Sweden	625	515	109 /	21 %	12 %
Denmark	125	63	62	98 %	42 %
UK	1 925	863	1 061	123 %	103 %
Finland	10	8	ന	35 %	-59 %
Protector	3 057	1 788 T	1, 269	71%	56 %

Business unit	H1 23			H1 22 Growth NOK %	LCY%
Norway	1 539	1 294	246	19 %	19 %
Sweden	1 816	1 459	357	24 %	19 %
Denmark	1 105	875	230	26 %	11 %
UK	2 294	1 059	1 235	117 %	99 %
Finland	246	212	34	16 %	2%
Protector	7 001	4 899	2 102	43 %	34 %

Country-by-country key metrics

Quarterly volatility must be expected, especially by country

PROTECTOR insurance

Q2 23

	Norway		Sweden		Denmark		UK		Finland		Protector
MNOK	Q2 23	Q2 22	Q2 23	Q2 22	Q2 23	Q2 22	Q2 23	Q2 22	Q2 23	Q2 22	Q2 23	Q2 22
Gross premium written	373	338	625	515	125	ર્દિક	1 925	863	10	00	3 057	1 788
Insurance revenues	457	389	606	499	337	258	924	450	64	ਪਤ	2 387	1 639
Insurance service result	50	74		105	14	40	293	29	25		384	249
Loss ratio, gross	82.1 %	72.4 %	81.7 %	64.8 %	82.1 %	81.0 %	41.0 %	72.4 %	48.3 %	85.2 %	65.2 %	71.8 %
Net reinsurance ratio	1.6 %	2.9 %	3.9 %	2.8 %	6.4 %	-2.9 %	13.6 %	4.8 %	0.9 %	-1.3 %	7.5 %	2.3 %
Loss ratio, net of reinsurance	83.6 %	75.2 %	85.5 %	67.6 %	88.5 %	78.1 %	54.6 %	77.2 %	49.2 %	83.9 %	72.6 %	74.1 %
Cost ratio	5.5 %	5.7 %	14.2 %	11.4 %	7.2 %	6.4 %	13.7 %	16.4 %	12.0 %	14.4 %	11.3 %	10.7 %
Combined ratio	89.1 %	81.0 %	99.8 %	79.0 %	95.7 %	84.5 %	68.3 %	93.6 %	61.2 %	98.3 %	83.9 %	84.8 %

H1 23

		UK Norway Sweden Denmark			Finland		Protector
MNOK	H1 23	H1 22	H1 23	H1 22	H1 23	H1 22	H1 23	H1 22	H1 23	H1 22	H1 23	H1 22
Gross premium written	1 539	1 294	1816	1 459	1 105	875	2 294	1 059	246	212	7 001	4 899
Insurance revenues	920	784	1 185	967	e29	503	1 505	841	ਹ ਤੇ ਦ	127	4 374	3 223
Insurance service result	87	100	3)	126	(5)	24	408	57	32	11	520	318
Loss ratio, gross	82.1 %	77.6 %	82.8 %	74.1 %	99.8 %	86.0 %	62.1 %	69.4 %	64.8 %	75.8 %	77.4 %	75.6 %
Net reinsurance ratio	2.5 %	3.3 %	4.0 %	1.3 %	-6.1 %	2.2 %	-2.8 %	8.4 %	0.6 %	-0.1 %	-0.2 %	3.7 %
Loss ratio, net of reinsurance	84.6 %	80.9 %	86.8 %	75.4 %	93.7 %	88.2 %	59.4 %	77.8 %	65.4 %	75.7 %	77.2 %	79.4 %
Cost ratio	5.9 %	6.3 %	13.5 %	11.6 %	7.0 %	7.0 %	13.5 %	15.4 %	11.1 %	15.8 %	10.9 %	10.8 %
Combined ratio	90.5 %	87.2 %	100.3 %	87.0 %	100.7 %	95.2 %	72.9 %	93.2 %	76.5 %	91.6 %	88.1 %	90.1 %

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

-1.0% return in Q2 driven by rate changes and equities | 3.1% return in H1

• MNOK -180, or -1.0% loss in Q2
  • Equities: MNOK -138, or -4.8%
  • Put options: MNOK -19
  • Bonds: MNOK -23, or -0.2%
    • Interest rate swaps: -202 MNOK
• Strong quarter for Nordic HY bonds
  • DNB Nordic HY index return 2.4%
• MNOK 481, or 3.1% gain in H1
  • Equities: MNOK 307, or 12.7%
  • Put options: MNOK -37
  • Bonds: MNOK 211, or 1.6%
    • Interest rate swaps: -182 MNOK
• Steering interest rate risk from a capital perspective

Bonds Total¹

-5% 0% 5% 10% 15% 1.6 % Equities¹ 12.7 % Bonds 3.1 % Total1

H1 investment results

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

Equities¹

Investment portfolio statistics

Bond portfolio yield at 6.1%, before cost of risk

• Bond portfolio yielding 6.1%, before cost of risk
  • Avg. reference rate up 0.6%-points from Q1
  • Slightly increased risk in bonds during Q223
    • HY portfolio totalling BNOK ≈ 4.1 vs. BNOK 3.5 Q123
    • Credit duration increased to 1.9, from 1.8 Q123
    • A- average rating and stable

• Equity share at 15.5%, down from 17.4% Q1

	Investment portfolio statistics1	30.06.23	30.06.22	31.03.23
e m o c n d i e x Fi	Size bond & cash eq. (MNOK)2	15 143	12 114	13 965
	Avg. ref. rate (NIBOR, STIBOR, etc.)	4.1%	1.8%	3.5%
	Avg. spread/risk premium (bps)	204	204	215
	Yield3	6.1%	3.9%	5.6%
	Duration3	2.6	1.1	2.3
	Credit duration	1.9	1.6	1.8
	Avg. rating4	A-	A	A

s e uiti q E	Portfolio size5	2 777	2 262	2 944
	Share of total	15.5%	15.5%	17.4%
	Estimated intrinsic value discount	29%	36%	24%
	No. of companies	30	30	23

¹ Bank deposits included

²Size excludes currency swaps

³Interest rate swap effect included

⁴Avg. linear rating based on official rating (>50%) and 'Protector rating' (<50%)

5 Size excludes currency swaps and put options

Profit and loss Q2 23 (& H1 23)

Profit of MNOK 219 (845) | EPS at NOK 2.7 (10.3)

Balance Sheet SCR ratio¹ at 192%

In millions	30.06.2023	30.06.2022	31.12.2022
Financial assets	17 345	13 708	14 195
Derivatives	27	142	66
Bank deposits	46	105	198
Other assets	1 837	2 149	1 971
Discontinued operations	517	1 102	888
Total assets	19 772	17 207	17 318
Total equity	4 045	2 815	3 761
Subordinated loan capital	1 245	1 245	1 245
Insurance contract liabilities	12 810	11 316	10 430
Derivatives	58	100	55
Other liabilities	1 284	1 081	1 305
Discontinued operations	330	649	522
Total equity and liabilities	19 772	17 207	17 318

13

*Numbers may not add up due to rounding

• Positive technical and negative investment result
• Own funds reduced with proposed dividend
• Solvency capital requirement increase in line with growth

SCR ratio composition

Solvency II SCR ratio at 192%

Composition of SCR:

• Net insurance risk 62%
• Net market risk 29%
• Other risks 9%

SCR composition

Eligible solvency capital:

14

• Guarantee provision and proposed dividend subtracted from own funds

Eligible 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

From all of us 482 Challengers, we wish you a delightful and safe summer holiday

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