Protector Forsikring

Investor Presentation • Apr 27, 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.

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Our DNA

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 in quarter higher than normalised
• Ceding w.r.t. our Solvency Based Reinsurance Agreement reduced from 10 % to 8 %
• Special dividend of 1.5 NOK per share MNOK 124

206%

200% *

150%

Q1 '22

180%

Q4 '21

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

* Post special dividend

Claims update

• Large losses¹ at 10.7 % (1.2 %), 3.7 %-points higher than normalized

• Net run off gains at 3.6 % in Q1 22 (0.1 % in Q1 21)

• Zero aggregated COVID-19 effects in quarter
• 2 %-points positive net effect in Q1 21

Large losses¹ and run-off

• Net large losses of MNOK 144, or 10.7 % in Q1 22
• One very large fire in Sweden (Property)

• UK Storm Eunice, 14th -19th February '22

  • 84 accumulated claims

• Net run off gains at 3.6 % in Q1 22 (gain of 0.1 % in Q1 21)

• Whereof 1.1 %-points are directly linked to large losses from earlier years

6

• GWP of MNOK 3 111 in Q1 2022 (MNOK 2 880)
• MNOK 230 (8%) growth (11% in LCY)
• Growth driven by Scandinavia
• Supported by price increases above claims inflation
• Low client churn
  • Renewal rate at 90.7%
• Small volume quarter for UK

MNOK
Business unit	Q1 22	$\overline{Q1\,21}$	Growth	$$ NOK $%$	$$ LCY $%$
Norway	955	856	99	12%	12%
Sweden	943	895	48	5%	13%
Denmark	812	727	85	12%	16%
UK	196	238	$-42$	$-18%$	$-19%$
Finland	204	164	40	24%	29%
Protector	3 1 1 1	2880	230	8%	11%

Country-by-country key metrics

Quarterly volatility must be expected, especially by country

Q1 2022

	Norway		Sweden		Denmark		UK		Finland		Protector
l MNOK	Q1 22	Q1 21	Q1 22	Q1 21	Q1 22	Q1 21	Q1 22	Q1 21	Q1 22	Q1 21	Q1 22	Q1 21
Gross premium written	955	856	943	895	812	727	196	238	204	164	3 1 1 1	2880
Gross premium earned	372	343	449	434	244	207	387	334	72	70	1525	1 388
Net premium earned	338	305	411	373	219	180	303	254	66	62	1 337	1 1 7 5
Gross claims ratio	89.0%	68.1%	86.6%	61.1%	96.6%	103.6%	66.1%	75.2%	81.1%	101.6%	83.3 %	74.6 %
Gross cost ratio	6.9%	8.9%	12.3 %	14.7 %	7.4 %	10.4 %	13.2 %	18.5 %	3.5%	8.2%	10.0 %	13.2 $%$
Gross combined ratio	95.8%	77.0%	98.9%	75.7 %	104.0%	114.0 %	79.3 %	93.7 %	84.7 %	109.8%	93.3 %	87.8%
Net claims ratio	91.9%	83.7%	85.8%	65.1%	99.3%	84.1%	73.9%	83.2%	81.4 %	98.3%	86.6%	78.5 %
Net cost ratio	6.9%	10.5 %	12.4 %	13.3 %	8.4 %	6.5%	14.9 %	19.0%	2.4 %	9.2%	10.4 %	12.6 $%$
$\mid$ Net combined ratio	98.9%	94.2 %	$98.1\%$	78.4 %	107.7 % $\leftarrow$	90.6 %	88.7%	102.2%	83.8%	107.5%	$97.0\%$	91.1%

Target: Nr 1 in all markets on Quality and Claims

Behind target in Scandinavia. Nr 1 position requires a thorough understanding and actions.

Norway	2022	Target '22	2021/20	2019/18	2017
Tender & new sales	79	80	78	75	69
Customer care and service	80	80	79	75	69
Claims Handling	70	75	70	69	68
BSI Total quality leader	1st	1st	2nd	1st	1st
BSI Claims Handling quality leader	2nd	1st	6th	2nd	1st
Sweden	2022	Target '22	2021/20	2019/18	2017
Tender & new sales	72	80	73	75	78
Customer care and service	75	80	74	77	79
Claims Handling	61	75	60	60	72
BSI Total quality leader	3rd	1st	4th	1st	1st
BSI Claims Handling quality leader	4th	1st	5th	2nd	1st
Denmark	2022	Target '22	2021/20	2019/18
Tender & new sales	69	78	63	73	63
Customer care and service	68	75	61	69	60
Claims Handling	66	70	59	71	61
BSI Total quality leader	2nd	1st	3rd	1st	1st
BSI Claims Handling quality leader	3rd	9 1st	2nd	3rd	1st

Our DNA

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

-0,1 % return in Q1 | Bond portfolio yield at 2.4 %, before cost of risk

• Q1 return on investment portfolio at -0.1 %, or MNOK -10
• Equity portfolio returning -0,3 %, or MNOK -7
• Bond portfolio returning 0.0 %, or MNOK 2

• Return of put options MNOK -6

• HY portfolio totalling BNOK 3.2 vs. BNOK 3.5 in Q4 '21

• Nordic high yield: volatile, but calmer towards quarter-end
  • DNB Markets Nordic HY index return -0.5 %
• Equity share at 16.2 %, up from 15.1 % in Q4 '21
• 12 new companies and MNOK 300 invested since 24.02.22
• Limited direct exposure to Ukraine / Russia

	Investment portfolio data2	31.03.22	31.03.21	31.12.21
	Size bond & cash eq. (MNOK)	12 368	12 472	12 003
	Avg. ref. rate (NIBOR, STIBOR, etc.)	0.9 %	0.1 %	0.5 %
	Avg. spread/risk premium (bps)	152	179	151
Bonds	Yield	2.4%	2.0%	2.0%
	Duration	0.4	0.4	0.4
	Credit duration	1.1	1.4	1.3
	Avg. rating3	A	A-	A
	Portfolio size4	2 400	2 413	2 166
Equities	Share of total	16.2 %	16.2 %	15.1 %
	Estimated intrinsic value discount	33 %	15 %	26 %
	No. of companies	32	20	20

¹ Equity return excludes results from put options, total return includes results from put options 2 Includes bank deposits and excludes currency swap contracts

³Avg. linear rating based on official rating (>55 %) and 'Protector rating' (<45 %)

⁴ Portfolio size based on book values (B3 Consulting Group booked using equity method (associated company)

Our DNA

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

Balance Sheet SCR ratio at 200% post dividend

In millions	31.03.2022	31.03.2021	31.12.2021
Financial assets	13 840	13 400	13 067
Derivatives	92	73	94
Bank deposits	166	165	300
Other assets	4 648	4 495	4 338
Discontinued operations	1 245	1 876	1 448
Total assets	19 991	20 011	19 246
Total equity	3 290	3 585	3 582
Subordinated loan capital	1 245	1 473	1 385
Total reserves	11 501	10 520	9 980
Derivatives	117	60	26
Other liabilities	3 139	3 349	3 440
Discontinued operations	698	1 024	834
Total equity and liabilities	19 991	20 011	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
• Negative effect on SCR ratio from proposed dividend of NOK 1.50 per share

13

SCR OF

Solvency II SCR ratio at 200% post dividend

Composition of SCR:

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

14

• Accumulated dividend subtracted from eligible capital
• Guarantee provision subtracted from own funds

SCR composition

Eligible solvency capital

MNOK	Q1 22	Q1 21	FY 21
Gross premiums written	3 1 1 1	2880	5951
Earned premiums, net of reinsurance	1 3 3 7	1 1 7 5	4921
Claims incurred, net of reinsurance	(1158)	(923)	(3 810)
Sales cost	(93)	(101)	(362)
Administration cost	(60)	(82)	(257)
Commission from reinsurer	13	36	131
Other insurance related income/expenses	(8)	(13)	(29)
Technical result	32	92	594
Other income/costs	(14)	(17)	(56)
Net financial income	(9)	523	878
Profit before tax	8	598	1416
Tax	(25)	(71)	(252)
Discontinued operations	(3)	51	67
Net comprehensive income	(24)	(5)	(28)
Profit for the period	(45)	573	1 2 0 4
Claims ratio, net of reinsurance	86.6%	78.5 %	77,4 %
Expense ratio, net of reinsurance	10.4%	12.6 %	9,9%
Combined ratio, net of reinsurance	97.0%	91.1%	87,3%
Gross claims ratio	83.3 %	74.6 %	77,8%
Gross expense ratio	10.0%	13.2 %	10,8%
Gross combined ratio	93.3 %	87.8%	88,5%
Retention rate	87.6%	84.7%	85,6%
Earnings per share	$-0.2$	7.0	0,0

Dividend policy A special dividend of NOK 1.50 per share – Flexible shareholder distribution policy

Solvency II ratio

Current level = 200% 180%		• Capital over 180% in SCR ratio distributed over time
	Normal Range	• Shareholder distribution normally 20%-80% of net profit • Quarterly decisions, all allocation alternatives evaluated • Profitable insurance growth always prioritized
150%		• Build solvency capital, any shareholder distribution only after a careful consideration

• Special dividend of MNOK 124 (NOK 1.50 per share); to be paid out around 12 May (ex. dividend 4 May)
• Quarterly assessment continued going forward

	Q1
• Net combined ratio	97 %
• Gross written premium	MNOK 3 111 $(+8%)$
• Investment return	MNOK-10 $(-0.1 %)$
• Profit for the period	MNOK-45
• Earnings per share	NOK-0.2
• Solvency Capital Ratio	ንበበ%

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

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