Protector Forsikring

Investor Presentation • Apr 27, 2023

Investor Presentation

Henrik Høye Chief Executive Officer

Bjarte André Soldal Jensen Chief Underwriter, Public Sector UK

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.

These materials may contain statements about future events and expectations that are forward-looking statements. Any statement in these materials that is not a statement of historical fact including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

This presentation does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. The information in this presentation is subject to verification, completion and change. The contents of this presentation have not been independently verified. While the Company relies on information obtained from sources believed to be reliable, it does not guarantee its accuracy or completeness. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its owners, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. None of the Company, its affiliates or any of their respective advisors or representatives or any other person shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. The Company's securities have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act"), and are offered and sold only outside the United States in accordance with an exemption from registration provided by Regulation S of the US Securities Act.

This presentation should not form the basis of any investment decision. Investors and prospective investors in securities of any issuer mentioned herein are required to make their own independent investigation and appraisal of the business and financial condition of such company and the nature of the securities. Any decision to purchase securities in the context of a proposed offering of securities, if any, should be made solely on the basis of information contained in any offering documents published in relation to such an offering. For further information about the Company, reference is made public disclosures made by the Company, such as filings made with the Oslo Stock Exchange, periodic reports and other materials available on the Company's web pages.

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

• MNOK 661, or 4.3 % return on assets under management (AUM)
• April 1st 2023 gross premiums written growth in UK Public Sector and Housing Associations of MGBP 72
  • Consistent underwriting approach and risk appetite
• Full IFRS accounting implemented this quarter
  • No solvency effect
• Special dividend of MNOK 165 or NOK 2 per share

Claims update

• Result driven by strong property results, partially offset by weak motor in the Nordics
• Denmark negatively impacted by WC gross and net

• Large loss impact on gross loss ratio UK

• Large losses¹ at 1.0 % (9.1 %)

• Run-off losses at 3.5 % (gain of 2.7 %)
  • Mainly due to run-off losses in Sweden & Denmark
  • 1.6 % loss linked to large claims from 2022 & 2021

		Finland
		Protecto

Business unit	01 23	Q1 23	Q1 22	Q1 22
	Gross	Net	Gross	Net
Norway	82 %	86 %	83 %	87 %
Sweden	84 %	88 %	84 %	84 %
Denmark	120 %	100 %	91 %	99 %
UK	96 %	67 %	66 %	78 %
Finland	80 %	100 %	71 %	72 %
Protector	92.2 %	82.8 %	79.6%	84.8 %

Large losses¹ and run-off Q1: Large losses of MNOK 19.5 or 1.0 %, run-off losses at 3.5 %

• Large loss of MNOK 19.5 or 1.0 % (143.5 or 9.1%)

  • One Liability claim

• Run-off losses at 3.5 % (gain of 2.7 %)

  • Losses on Motor & Workers compensation

• Some volatility in reserves & large losses must be expected

6

Large Loss %

• Q1 is the largest inception quarter in Scandinavia
  • Gross premiums written MNOK 3 943, up 27 % from Q1 22 (21 % LCY)
  • Renewal rate 102 %, supported by price increases to counter claims inflation
  • Continued low churn in Scandinavia and in the UK

	1NOK, Gross premiums written

Business unit	Q1 23			Q1 22 Growth NOK %	LCY %
Norway	1 167	955	211	22 %	22 %
Sweden	1 191	943	248	26 %	22 %
Denmark	980	812	168	21 %	9%
UK	369	196	174	89 %	80 %
Finland	236	204	32	16 %	4 %
Protector	3 943 1	3 111	833	27 %	21 %

• April 1st is the largest inception date in the UK
  • MGBP 72 growth in Public Sector and Housing Associations
  • Further details in following slides

UK growth April 1st | Public Sector & Housing

Extraordinary high new sales and renewal rate above 100 %

• Renewal rate above 100 %
  • Low churn
  • Inflationary adjustments
  • Targeted rate adjustment for poor performers
• All time high new sales
  • Hardening market (change in competitor behaviour) allowing higher hit rates
  • Underwriting new sales with stabile margin expectations
• High property share driven by market conditions
  • Stabile and consistent risk appetite
• Growth volatility should be expected
  • 1.4.23 is a combination of 'Long term agreements' and 'one year deals'

Product	2023	2022	Growth	LCY%
Property	90	24	66	273%
Liability	12	7	ব	60%
Motor	5	ব	1	28%
Public & Housing, UK	107	35 /	72	202%

Public Sector & Housing | Large Core Segments Cyclical market, high level of expertise

• ≈ MGBP 90 p.a. quoted in the segments
  • 1 st of April is a significant renewal date in the UK
• Hardening market since 2021
  • Consistent underwriting approach and risk appetite
• Prepared for strong growth in 2023
  • Margin expectations remain stable and in line with long term targets
  • Short term outsourcing of claims handling
  • High recruitment activity
  • New clients with similar risk profile as portfolio
• Our long term ambition of 'top 3' in our segments remains the same

Consistent Underwriting methodology

9

Match

Country-by-country key metrics

PROTECTOR insurance

Quarterly volatility must be expected, especially by country

	Sweden Norway			Denmark			uk		Finland		Protector
MNOK	Q1 23	Q1 22	Q1 23	Q1 22	Q1 23	Q1 22	Q1 23	Q1 22	Q1 23	Q1 22	Q1 23	Q1 22
Gross premium written	1 167	ਰੇ 55	1 191	943	980	812	369	196	236	204	3 943	3 111
Insurance revenues	463	ਤੇ ਰੋਟ	580	468	292	245	581	391	71	84	1 986	1 584
Insurance service result	38	26	-5	21	-19	-16	ਹੈ ਹੈ ਦ	28		10	136	ਦਰ
Loss ratio, gross	82.1 %	82.8 %	84.0 %	83.9 %	120.2 %	91.3 %	95.8 %	65.9 %	79.6 %	71.1 %	92.2 %	79.6 %
Net reinsurance ratio	3.4 %	3.7 %	4.1 %	-0.3 %	-20.5 %	7.6 %	-28.7 %	12.5 %	0.4 %	0.5 %	-9.4 %	5.1 %
Loss ratio, net of reinsurance	85.6 %	86.5 %	88.1 %	83.6 %	99.7 %	98.9 %	67.1 %	78.5 %	80.0 %	71.6 %	82.8 %	84.8 %
Cost ratio	6.3 %	6.9 %	12.7 %	11.9 %	6.8 %	7.7 %	13.1 %	14.3 %	10.2 %	16.6 %	10.4 %	10.8 %
Combined ratio	91.9 %	93.4 %	100.8 %	95.5 %	106.6 %	י 106.5 %	80.2 %	92.8 %	90.2 %	88.2 %	93.2 %	95.6 %

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 and statistics Q1 2023 4.3 % return | Bond portfolio yield at 5.6 %, before cost of risk

• MNOK 661, or 4.3 % return on AUM
  • Equities: MNOK 445, or 18.2 %
  • Put options: MNOK -18
  • Bonds: MNOK 234, or 1.8 %
• Slightly reduced risk in bonds
  • HY portfolio totalling BNOK ≈ 3.5 vs. BNOK 4.1 YE22
  • Credit duration decreased to 1.8, from 2.2 YE22
  • A- average rating and stable
• Equity share at 17.4 %, down from 17.9 % by YE22
• Strong quarter for Nordic HY bonds, despite bank turmoil
  • DNB Nordic HY index return 3.0%

	Investment portfolio data2	31.03.23	31.03.22	31.12.22
	Size bond & cash eq. (MNOK)3	13 965	12 368	12 249
	Avg. ref. rate (NIBOR, STIBOR, etc.)	3.5 %	0.9 %	3.3 %
	Avg. spread/risk premium (bps)	215	152	273
Bonds	Yield4	5.6 %	2.4 %	6.0 %
	Duration4	2.3	0.4	2.5
	Credit duration	1.8	1.1	2.2
	Avg. rating5	A-	A	A
	Portfolio size6	2 944	2 400	2 648
Equities	Estimated intrinsic value discount	24 %	33 %	30 %
	No. of companies	23	32	28

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

² Bank deposits included

³Size excludes currency swaps

⁴Interest rate swap effect included

⁵Avg. linear rating based on official rating (>50 %) and 'Protector rating' (<50 %)

⁶ Size excludes currency swaps and put options

Profit and loss Q1 23 Profit of MNOK 626 | EPS at NOK 7.6

NOKm	Q1 2023	Q1 2022	FY 2022
Insurance revenue	1 986	1 584	6619
Insurance claims expenses	(1 831)	(1 262)	(5 045)
Insurance operating expenses	(206)	(172)	(734)
Insurance service result before reinsurance contracts held	(51)	151	840
Reinsurance premium	(119)	(192)	(826)
Amounts recovered from reinsurance	306	110	687
Net result from reinsurance contracts held	187	(81)	(139)
Insurance service result	136	69	701
Net income from investments	635	(9)	477
Net insurance finance income or expenses	(113)	258	607
Other income/expenses	(16)	(16)	(74)
Profit before tax	642	302	1 711
Tax	(31)	(99)	(341)
Discontinued operations	16	5	10
Profit for the period	626	208	1 379
Run-off gains/losses, net of reinsurance	(70.4)	47 9	126.7
Change in risk adjustment, net of reinsurance	(15.3)	-19.3	(79.6)
Discounting effect, net of reinsurance	59.0	12.6	154.5
Loss ratio	92.2 %	79.6 %	76.2 %
Net reinsurance ratio	-9.4 %	5.1 %	2.1 %
Loss ratio, net of reinsurance	82.8 %	84.8 %	78.3 %
Cost ratio	10.4 %	10.8 %	11.1 %
Combined ratio	93.2 %	95.6 %	89.4 %
Earnings per share	7.6	2.5	1.9

Balance Sheet SCR ratio¹ at 198 %

In millions	31.03.2023	31.03.2022	31.12.2022
Financial assets	16 524	13 840	14 195
Derivatives	235	92	66
Bank deposits	195	166	198
Other assets	2 052	2 061	1 971
Discontinued operations	745	1 259	888
Total assets	19 750	17 418	17 318
Total equity	3 984	3 299	3 761
Subordinated loan capital	1 245	1 245	1 245
Insurance contract liabilities	12 477	10 995	10 430
Derivatives	130	117	55
Other liabilities	1 533	1 048	1 305
Discontinued operations	381	715	522
Total equity and liabilities	19 750	17 418	17 318

*Numbers may not add up due to rounding

• Increase in own funds driven by positive technical and investment result

14

• Own funds reduced with proposed dividend
• Increased solvency capital requirement:
  • Volume and investment portfolio growth

SCR ratio composition

Solvency II SCR ratio at 198 %

Composition of SCR:

• Net insurance risk 61 %
• Net market risk 31 %
• Other risks 8 %

761

Health, inc annuities

0

1 000

2 000

3 000

4 000

5 000

6 000

Eligible solvency capital:

• Guarantee provision and proposed dividend subtracted from own funds

Eligible own funds

SCR composition

352 75

1 520

Non-life Market Operational Counter-

2 922 2 268

party

1 369

685

Divers. LAC SCR

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:

• MNOK 661, or 4.3 % return on assets under management (AUM)
• April 1st 2023 gross premiums written growth in UK Public Sector and Housing Associations of MGBP 72
  • Consistent underwriting approach and risk appetite
• Full IFRS accounting implemented this quarter
  • No solvency effect

17

• Special dividend of MNOK 165 or NOK 2 per share