Protector Forsikring

Investor Presentation • Oct 26, 2022

Investor Presentation

Henrik Høye Chief Executive Officer

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.

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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: • Large losses at 7 % (normalized) • Interest rates increasing and credit spreads widening • Running yield at 5.5 %

4

This presentation contains alternative performance measures (APMs). APMs are described here: https://protectorforsikring.no/en/investor/documents/spreadsheets/

Claims update

• 5 Large losses¹ at 7.0 % (7.9 %)
  • Driven by 2 claims in UK & 2 in Sweden
• Net run off gains at 3.8 % (4.9 %)
  • Mainly due to run-off gains in Norway & Sweden

• Aggregated COVID-19 effects at 0 % in Q3 21 & 22

Business unit	Gross	Net	Gross	No
Norway	65 %	68 %	73 %	74
Sweden	68 %	71 %	59 %	61
Denmark	93 %	84 %	82 %	74
UK	86 %	80 %	84 %	88
Finland	99 %	99 %	85 %	86
Dratoctor	77 1 0%	7 E E O/	TE A 0/2	72 0

Business unit		YTD 22 YTD 22 YTD 22 YYTD 21 YTD 21
	Gross	Net	Gross	Net
Norway	75 %	78 %	71 %	80 %
Sweden	73 %	74 %	60 %	63 %
Denmark	90 %	87 %	101 %	81 %
UK	77 %	78 %	81 %	86 %
Finland	89 %	89 %	81 %	82 %
Protector	77.9 % -	78.6%	75.1 %	76.2 %

Large losses¹ and run-off

• Net large losses of MNOK 99,0 or 7.0 % (99,2 or 7,9%)

  • 70% of large loss volume Property, 20 % liability & 10 % Motor

• Net run off gains at 3.8 % (4.9 %)

  • Gains Other illness & General liability
  • Losses on Workers compensation

• Some volatility in reserves & large losses must be expected

6

• Q3 is a small volume quarter
  • Renewal rate 84% (99,4 %)
  • Churn primarily driven by some large clients in SE, DK
  • UK: Renewal rate 95%, high price increases driven by 1 client

• Current price increases accounts for increased inflation

MNOK
Business unit	Q3 22	Q3 21	Growth	NOK %	LCY%
Norway	173	174	- 1	-1%	-1%
Sweden	231	248	-17	-7%	1%
Denmark	59	61	-2	-3%	2%
UK	459	368	92	25%	29%
Finland	2	6	-4	-68%	-74%
Protector	924	856	68	8%	12%

MNOK
Business unit	YTD 22	YID 21.		Growth NOK %	LCY%
Norway	1 467	1 293	174	13%	13%
Sweden	1 689	1 545	144	9%	16%
Denmark	935	827	108	13%	16%
UK	1 519	1 327	192	14%	15%
Finland	214	173	40	23%	26%
Protector	5 823	5 165	658	13%	15%

Country-by-country key metrics

Quarterly volatility must be expected, especially by country

PROTECTOR insurance

Q3 2022

	Norway		Sweden		Denmark		UK		Finland		Protector
MNOK	Q3 22	Q3 21	Q3 22	Q3 21	Q3 22	Q3 21	Q3 22	Q3 21	Q3 22	Q3 21	Q3 22	Q3 21
Gross premium written	173	174	231	248	ਟਰੇ	e J	459	368		0	924	856
Gross premium earned	404	354	472	450	263	227	446	390	50	54	1 634	1 475
Net premium earned	366	316	414	394	235	ਹਰਦ	361	303	46	48	1 423	1 257
Gross claims ratio	65.1 %	73.1 %	68.0 %	58.9 %	93.3 %	81.5 %	85.6 %	84.0 %	99.5 %	85.0 %	77.1 %	73.4 %
Gross cost ratio	6.4 %	8.0 %	12.6 %	11.1 %	7.3 %	7.1 %	12.8 %	13.5 %	4.7 %	4.7 %	10.0 %	10.1 %
Gross combined ratio	71.5 %	81.1 %	80.6 %	70.0 %	100.5 %	88.6 %	98.4 %	97.5 %	104.2 %	89.8 %	87.1 %	83.5 %
Net claims ratio	67.8 %	74.1 %	70.6 %	61.1 %	84.1 %	74.4 %	80.1 %	88.2 %	99.4 %	85.7 %	75.5 %	73.9 %
Net cost ratio	4.4 %	6.3 %	11.9 %	8.4 %	6.7 %	5.2 %	13.9 %	15.6 %	5.2 %	3.9 %	9.4 %	8.9 %
Net combined ratio	72.2 %	80.4 %	82.5 %	69.5 %	90.8 %	79.6 %	94.0 %	103.8 %	104.6 %	89.6 %	84.9 %	82.9 %

YTD 2022

	Norway		Sweden		Denmark			UK		Finland		Protector
MNOK	YTD 22	YTD 21	YTD 22	YID 21	YTD 22	YID 21	YTD 22	YTD 21	YTD 22	YID 21	YTD 22	YELD 24
Gross premium written	1 467	1 293	1 689	1 545	ਰੇਤੇ ਦੇ	827	1 519	1 327	214	173	5 823	5 165
Gross premium earned	1 173	1 047	1 429	1 307	764	୧୧୦	1 256	1 076	164	198	4 786	4 278
Net premium earned	1 065	932	1 286	1 133	684	562	1 003	847	150	177	4 187	3 652
l Gross claims ratio	75.5 %	71.2 %	72.6 %	59.8 %	90.2 %	101.0 %	77.2 %	80.7 %	89.4 %	81.3 %	77.9 %	75.1 %
Gross cost ratio	6.2 %	7.3 %	12.0 %	12.1 %	6.9 %	8.1 %	12.9 %	14.7 %	4.4 %	5.3 %	9.8 %	10.7 %
Gross combined ratio	81.7 %	78.4 %	84.7 %	71.9 %	97.1 %	109.1 %	90.2 %	95.4 %	93.8 %	86.6 %	87.7 %	85.8 %
Net claims ratio	77.9 %	79.9 %	74.1 %	63.1 %	86.7 %	80.6 %	78.1 %	85.5 %	89.1 %	82.3 %	78.6 %	76.2 %
Net cost ratio	5.0 %	6.8 %	11.2 %	10.0 %	6.6 %	5.9 %	14.1 %	15.8 %	4.1 %	4.2 %	9.3 %	9.6 %
Net combined ratio	82.9 %	86.7 %	85.3 %	73.1 %	93.3 %	86.6 %	92.2 %	101.4 %	93.1 %	86.5 %	87.9 %	85.9 %

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 Return at 0.2 % in Q3 and -1.1 % YTD

• Q3 return on investment portfolio 0.2%, or MNOK 23¹
  • Equity portfolio 0.8%, or MNOK 18
  • Bond portfolio 0.0%, or MNOK 5
  • Put options MNOK 1
• YTD return on investment portfolio -1.1%, or MNOK -162¹
  • Equity portfolio -3.7%, or MNOK -89
  • Bond portfolio -0.6%, or MNOK -74
  • Put options MNOK -3
• DNB Markets Nordic HY index return +1.4% in Q3
• B3 down sale 04.10.2022
  • Below 20% ownership; booked at market value
  • Technical gain of MNOK 92 booked in Q3

Investment portfolio statistics

Bond portfolio yield at 5.5 %, before cost of risk – duration increased

s e uiti q E	Portfolio size	2 343	2 118	2 262
	Share of total3	16.3%	14.6%	15.5%
	Estimated intrinsic value discount	40%	30%	36%
	No. of companies	31	22	30

1 Includes bank deposits

²Avg. linear rating based on official rating (>55%) and 'Protector rating' (<45%)

3 Includes put options and currency swap contracts

• Bond portfolio yielding 5.5 %, before cost of risk
  • Avg. reference rate up 1.3 %-points from Q2
    • Positive sloping interest rate curve
  • Bond portfolio's average rating at A-
    • HY portfolio totalling BNOK 4.1 vs BNOK 3.7 in Q2
    • Some more appetite for bonds at higher spread levels
    • Increased cost of risk expected
  • Avg. spread +40bps from Q2
  • Credit duration increased by 0.3 years from Q2
• Equity share at 16.3%, up from 15.5% in Q2

Large change in bond portfolio yield Driven by rate increases and longer interest duration

Bond portfolio yield of 5,5 %

• Increased yield driven by

  • Higher underlying reference rate
    • Floating
    • Increased interest duration
  • Higher market spreads

• Portfolio rating in line with historic average

  • Slightly higher risk allocation YTD
  • Strong credit quality, but higher Cost of Risk expected at higher interest rates

Profit and loss Q3 22 (& YTD 22) Profit of MNOK 175 (196) | EPS at NOK 2.1 (2.5)

MNOK	Q3 22	Q3 21	YTD 22	YID 21	FY 21
Gross premiums written	924	856	5 823	5 165	ਦੇ ਰੇਟ ਹ
Earned premiums, net of reinsurance	1 423	1 257	4 187	3 652	4 921
Claims incurred, net of reinsurance	(1 074)	(930)	(3 291)	(2 783)	(3 810)
Sales cost	(100)	(89)	(279)	(267)	(362)
Administration cost	(64)	(61)	(188)	(189)	(257)
Commission from reinsurer	30	37	76	104	131
Other insurance related income/expenses	(5)	(4)	(15)	(23)	(29)
Technical result	210	211	490	493	594
Other income/costs	(16)	(11)	(44)	(41)	(26)
Net financial income	20	(0)	(154)	658	878
Profit before tax	214	200	293	1 110	1 416
Tax	(40)	(68)	(70)	(209)	(252)
Discontinued operations	(0)	(3)	(17)	67	67
Net comprehensive income	1	(4)	(10)	(3)	(28)
Profit for the period	175	125	196	965	1 204
Claims ratio, net of reinsurance	75.5 %	73.9 %	78.6 %	76.2 %	77.4 %
Expense ratio, net of reinsurance	9.4 %	8.9 %	9.3 %	9.6 %	9.9 %
Combined ratio, net of reinsurance	84.9 %	82.9 %	87.9 %	85.9 %	87.3 %
Gross claims ratio	77.1 %	73.4 %	77.9 %	75.1 %	77.8 %
Gross expense ratio	10.0 %	10.1 %	9.8 %	10.7 %	10.8 %
Gross combined ratio	87.1 %	83.5 %	87.7 %	85.8 %	88.5 %
Retention rate	87.1 %	85.2 %	87.5 %	85.4 %	85.6 %
Earnings per share	2.1	1.6	2.5	11.8	15.0

Balance Sheet SCR ratio at 222%

In millions	30.09.2022	30.09.2021	31.12.2021
Financial assets	14 066	13 291	13 067
Derivatives	274	64	94
Bank deposits	104	101	300
Other assets	4 549	4 421	4 338
Discontinued operations	950	1 516	1 448
Total assets	19 943	19 394	19 246
Total equity	2 834	3 467	3 582
Subordinated loan capital	1 245	1 244	1 385
Total reserves	11 808	10 495	9 980
Derivatives	252	70	26
Other liabilities	3 246	3 246	3 440
Discontinued operations	557	871	834
Total equity and liabilities	19 943	19 394	19 246

Numbers may not add up due to rounding

• Positive contribution from technical result and negative contribution from investment result
• Positive effect from change in discounting rates:
  • Approx. 1%-point movement in discounting rates, correspond to a total effect of approx. MNOK 280

14

SCR OF

Solvency II SCR ratio at 222%

Composition of SCR:

• Net insurance risk 65%
• Net market risk 25%
• Other risks 10%

SCR composition

Eligible solvency capital:

15

• Guarantee provision subtracted from own funds

Eligible solvency capital

	Q3	YTD
· Net combined ratio	84.9 %	87.9 %
• Gross written premium	MNOK 924 (+8 %)	MNOK 5 823 (+13 %)
· Investment return	MNOK 23 (0.2 %)	MNOK - 162 (-1.1 %)
• Profit for the period	MNOK 175	MNOK 196
• Earnings per share	NOK 2.1	NOK 2.5
· Solvency Capital Ratio	222%	222%

This presentation contains alternative performance measures (APMs). APMs are described here: https://protectorforsikring.no/en/investor/documents/spreadsheets/

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