Protector Forsikring

Investor Presentation • Feb 2, 2022

Investor Presentation

Oslo, February 3rd 2022

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.

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.

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:

• Best in UK broker satisfaction index 5th year running
• Concentration of large losses towards UK for FY and Q4
• Special dividend of NOK 3 per share (based on 2020 results)
• Ordinary dividend of NOK 7 per share for 2021 (subject to approval)

Profit after tax (MNOK) Earnings per share (NOK)

Claims update FY net claims ratio at 77.4 % | Q4 net claims ratio at 80.9 %

Business unit	FY 21.	FY 21.	FY 20	FY 20
	Gross	Net	Gross	Net
Norway	78 % -	82 %	81 %	80 %
Sweden	59 %	63 %	79 %	80 %
Denmark	103 %	83 %	113 %	115 %
UK	85 %	88 %	64 %	71 %
Finland	77%	78 %	72 %	74 %
Protector	77.8%	77.4 % -	82.2 %	84.6 %

	Q4 21	Q4 21	Q4 20	04 20
Business unit	Gross	Net	Gross	Net
Norway	98 %	89 %	74 %	72 %
Sweden	58 %	62 %	69 %	71 %
Denmark	108 %	89 %	131 %	133 %
UK	96 %	94 %	68 %	69 %
Finland	64 %	64 %	101 %	102 %
Protector	85.6 % -	80.9 %	82.3 % -	83.8 %

• Aggregated positive COVID-19 effect of 0.8 %p on combined ratio for 2021, no net effect in Q4

Large losses and run-off Gross large losses¹ at 6% in 2021 | Net run-off losses at 0.3%

• Gross large losses at 6 % in 2021, whereof 4.3 %p from UK
  • UK large loss ratio at 17%

• Gross large losses of MNOK 127, or 8.7 % in Q4 21

  • UK Storm Arwen, 25-27th Nov
    • 53 claims (3 %p on company level in Q4)

• Net run-off losses at 0.3 % in 2021 (loss of 2.2 % in 2020)

• Net run-off losses at 4.3 % in Q4 21 (loss of 3.5 % in Q4 20)
  • Gain in SE & FI (24 MNOK), loss in NO, UK & DK (99 MNOK)

6

Gross large loss ratio² excl. WC, per quarter

• YTD:

• GWP growth at 8 % (10 % in LCY)
• Renewal rate at 90 %
  • Realized price increases at 8.9 %
• Q4: a small volume-quarter (13 %)
  • GWP growth at 8 % (14 % in LCY)
  • Renewal rate at 84 %
    • Realized price increases at 5.2 %
• January 1st 2022 growth in GWP at 8 % (11 % in LCY)
  • Supported by price increases above inflation in Scandinavia and low client churn

7

NOKm
Business unit	FY 21	FY 20	Growth	NOK %	LCY%
Norway	1 415	1 383	32	2%	2%
Sweden	1 820	1 607	213	13%	16%
Denmark	919	973	-54	-6%	-1%
UK	1 618	1 328	290	22%	24%
Finland	178	226	-48	-21%	-17%
Protector	5 951	5 516	434	8%	10%
COI (in exit)	189	240	-52	-21%	-21%
Protector incl. COI	6 139	5 757	383	7%	9%
NOKm
Business unit	Q4 21	Q4 20	Growth	NOK %	LCY%
Norway	122	134	-12	-9%	-9%
Sweden	276	249	26	11%	22%
Denmark	92	60	32	54%	74%
UK	291	277	15	5%	6%
Finland	5	9	-4	-47%	-31%
Protector	786	729	57	8%	14%
COI (in exit)	38	49	-12	-23%	-23%

110 2021
Norway		Sweden		Denmark		UK		Finland		Protector
NOKm	FY 21	FY 20	FY 21	FY 20	FY 21	FY 20	FY 21	FY 20	FY 21	FY 20	FY 21	EY 201
Gross premium written	1 415	1 383	1 820	1 607	ਰੇ ਰੋ	973	1 618	1 328	178	226	5 951	5 516
Gross premium earned	1 398	1 443	1 749	1 605	880	ರಿ83	1 461	1 131	258	217	5 746	5 380
Net premium earned	1 245	1 293	1 512	1 402	761	861	1 171	864	231	194	4 921	4 614
Gross claims ratio	77.8 %	81.1 %	59.3 %	79.1 %	102.8 %	112.5 %	84.7 %	63.8 %	77.3 %	72.3 %	77.8 %	82.2 %
Gross cost ratio	7.6 %	8.6 %	12.3 %	12.7 %	8.4 %	6.7 %	14.4 %	12.9 %	5.6 %	5.2 %	10.8 %	10.3 %
Gross combined ratio	85.4 %	89.7 %	71.6 %	91.8 %	111.2 %	119.2 %	99.1 %	76.8 %	82.9 %	77.5 %	88.5 %	92.5 %
Net claims ratio	82.1 %	80.2 %	62.8 %	79.8 %	82.9 %	115.1 %	87.8 %	70.7 %	78.1 %	74.0 %	77.4 %	84.6 %
Net cost ratio	7.2 %	6.1 %	10.2 %	12.8 %	6.9 %	9.6 %	15.5 %	14.2 %	4.0 %	3.5 %	9.9 %	10.2 %
Net combined ratio	89.2 %	86.3 %	73.0 % 4-	92.7 %		89.8 % == 124.7 %	103.3 % += 84.9 %		82.1 %	77.5 %		87.3 %

		UK Sweden Denmark Norway			Finland		Protector
NoKm	Q4 21	Q4 20	Q4 21	Q4 20	Q4 21	Q4 20	Q4 21	Q4 20	Q4 21	Q4 20	Q4 21	Q4 20
Gross premium written	122	134	276	249	92	60	291	277	5	த	786	729
Gross premium earned	351	358	442	412	231	252	384	326	60	57	1 468	1 404
Net premium earned	313	320	379	357	199	222	324	239	53	52	1 269	1 189
Gross claims ratio	97.8 %	74.2 %	58.0 %	68.5 %	107.8 %	130.7 %	96.2 %	67.8 %	64.1 %	100.7 %	85.6 %	82.3 %
Gross cost ratio	8.4 %	9.7 %	12.6 %	15.1 %	9.3 %	8.5 %	13.4 %	13.3 %	6.3 %	5.4 %	11.0 %	11.7 %
Gross combined ratio	106.2 %	83.8 %	70.6 %	83.6 %	117.1 %	139.2 %	109.5 %	81.1 %	70.5 %	106.1 %	96.6 %	94.0 %
Net claims ratio	88.5 %	72.1 %	61.8 %	71.1 %	89.3 %	132.8 %	93.6 %	69.2 %	64.1 %	102.0 %	80.9 %	83.8 %
Net cost ratio	8.1 %	4.7 %	10.8 %	15.2 %	9.8 %	12.7 %	14.8 %	15.6 %	3.3 %	7.2 %	10.7 %	11.6 %
Net combined ratio	96.6 %	76.8 %	72.6 %	86.2 %	99.1 %	145.5 %	108.4 %	84.8 %	67.4 %	109.1 %	91.6 %	95.4 %

Result vs. 2021 guiding Technical result in line with guiding, higher than expected investment return pushing ROE

	Guiding 2021	Results Q1-Q3	Results Q4	Results FY
Net Combined Ratio:	88 %(1)	85.9 %	91.6 %	87.3 %
Return on Equity (ROE):	>20 %	37.7 %*	29.9 %*	35.6 %
Gross Written Premium (GWP) growth:	10 % (LCY)	9.7 % (LCY)	14 % (LCY)	10.0 % (LCY)
Solvency II Capital Ratio (SCR):	> 150 %	230 %	206 %**	206 %**

• We will continue to stay disciplined with regards to profitable growth

A disciplined Team journey

On target – optimistic & cautious

• Culture is key
  • Up-front investment in people for future
• Quality leader 5th time running
• Profitability impacted by large losses (LL) in 2021
  • Underlying profitability is within the expected range for the UK
• Disciplined growth
  • Selective Underwriting under constant review
• Critical mass approaching
  • Early focus upon costs/scale

Culture is key One Team UK

• Circa 90 employees fully operative whilst working from home
  • 2 days WFH, 3 days in the office
  • Manchester & London operate as 'One Team'.
• Cultural Lead 2020 & 2021
  • A first in Protector's history
• Management team, growing in strength and numbers with strong succession planning

• 1 (far ahead of #2) in the Broker Satisfaction Index (BSI)

  • 5th consecutive year
  • Supported by external surveys

1	Protector	7.7
2	Insurer 34	7.6
=3	Insurer 21	7.5
=3	Insurer 38	7.5
=5	Insurer 4	7.3

BSI Results 2021 Number 1 Service Provider 5th year running

Totality

Claims

Operational status 2021 Disciplined Underwriting & focussed Claims Handling

Volume:

• £340m GWP of opportunities, £160m GWP quoted
• Very low hit rates (10 %) in public and housing (price driven)
• Ok hit rates (15 %) commercial (motor more challenging)
• Very strong renewal rates in both segments, price increases at ≈ 9 %

Claims handling:

• Very strong clean desk (no backlog)
• Claims cost reduction becoming culture
  • Motor engineers
  • Counter Fraud
  • TP intervention
  • Recovery

Back to profitable growth in 2022

Challenging market, but positive growth outlook

• 2021 was worse than history / benchmarks for LLs
  • It will normalise
• Residual impact of 2021 rate improvement & inflation

• Cost improvements = scale & efficiency

• Churn adjusted for market dynamics

• Rate strength will continue in some areas
• New Sales: Positive outlook
  • Commercial Wider distribution / Hit rate focus
  • Public & Housing Better opportunities already material

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

Investments

Investment is core

18

Investments AUM is increasing

14 310

13 492

Investment performance Gain of MNOK 955 in 2021, whereof MNOK 237 in Q4

• 2021 return on investment portfolio at 6.8 %, or MNOK 955

• Equity portfolio, ex. put options, returning 43.0 %, or MNOK 730
• Bond portfolio returning 2.3 %, or MNOK 285

• Return of put options MNOK -61

• Q4 return on investment portfolio at 1.7 %, or MNOK 237

  • Equity portfolio, ex. put options, returning 11.4 %, or MNOK 228
  • Bond portfolio returning 0.2 %, or MNOK 26
  • Return of put options MNOK -16

Bond portfolio statistics Yield at 2.0 % | Avg. IG-rated portfolio by YE21 | No losses in 2021

	Investment portfolio data1	31.12.21	30.09.21	31.12.20
Bonds	Bond & cash eq. (MNOK)2	12 003	12 369	11 603
	Avg. ref. rate (NIBOR, STIBOR, etc.)	0.5 %	0.3 %	0.2 %
	Avg. spread/risk premium (bps)	151	164	210
	Yield	2.0 %	2.0 %	2.3 %
	Duration	0.4	0.4	0.4
	Credit duration	1.3	1.3	1.4
	Avg. rating3	A-	BBB+	A

¹Includes bank deposits

²Size excludes currency swap contracts

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

Protector bond portfolio return

• Running yield at 2.0 % (2.3 % in YE'20), before cost of risk
  • Spread down 13bps, underlying ref. rate up 21bps from Q3 '21
• HY portfolio totalling BNOK ≈ 3.5, vs. BNOK 4.0 YE'20

• Protector with no losses, unrealized or realized, > MNOK 1 in 2021

• Strong Nordic HY bond market in 2021

  • DNB Markets Nordic HY index in NOK +8.7 % in 2021 and +0.9 % in Q4

• Protector with losses of MNOK 10, or 0.02 % annually Q315-Q421

Equity portfolio statistics Return of 43 % in 2021 | CAGR of 19.2 % since inception Q4 2014

• Strong operational performance in portfolio companies
• Discount to estimated intrinsic value 26%
  • Flat Y/Y, despite return > 40%.
    • Multiconsult exit
    • Several new holdings purchased
      • Average holding period for existing portfolio companies lower

• Equity share at 15.1% (13.5%) due to valuation gains
  • Net sale of 160 MNOK in 2021

• CAGR of 19.2% since inception Q4 2014

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

NOKm	Q4 21	Q4 20	FY 21	FY 20
Gross premiums written	786	729	5 951	5 516
Earned premiums, net of reinsurance	1 269	1 189	4 921	4 614
Claims incurred, net of reinsurance	(1 027)	(996)	(3 810)	(3 901)
Sales cost	(95)	(93)	(362)	(331)
Administration cost	(67)	(71)	(257)	(221)
Commission from reinsurer	27	26	131	82
Other insurance related income/expenses	(5)	(1)	(29)	5
Technical result	101	54	594	247
Other income/costs	(15)	(19)	(56)	(67)
Net financial income	220	414	878	865
Profit before tax	306	448	1 416	1 045
Tax	(39)	(36)	(252)	(160)
Discontinued operations	(3)	31	67	94
Net comprehensive income	(25)	(0)	(28)	2
Profit for the period	239	442	1 204	982
Claims ratio, net of reinsurance	80.9 %	83.8 %	77.4 %	84.6 %
Expense ratio, net of reinsurance	10.7 %	11.6 %	9.9 %	10.2 %
Combined ratio, net of reinsurance	91.6 %	95.4 %	87.3 %	94.8 %
Gross claims ratio	85.6 %	82.3 %	77.8 %	82.2 %
Gross expense ratio	11.0 %	11.7 %	10.8 %	10.3 %
Gross combined ratio	96.6 %	94.0 %	88.5 %	92.5 %
Retention rate	86.4 %	84.7 %	85.6 %	85.8 %
Earnings per share	3.2	5.4	15.0	12.0

Balance Sheet SCR-ratio at 206% post dividend

In millions	31.12.2021	31.12.2020
Financial assets	13 067	11 989
Derivatives	94	48
Bank deposits	300	263
Other assets	4 338	2 555
Discontinued operations	1 448	1 896
Total assets	19 246	16 750
Total equity	3 582	3 030
Subordinated loan capital	1 385	1 473
Total reserves	9 980	9 185
Derivatives	26	61
Other liabilities	3 440	1 889
Discontinued operations	834	1 112
Total equity and liabilities	19 246	16 750

• Positive contribution from investments and technical result
• Downward shift in SCR-ratio driven by the proposed dividends
  • Approx. 4 %-points effect on SCR-ratio per 1 NOK dividend per share

24

Solvency II SCR ratio at 206%

Composition of SCR:

• Net insurance risk 63%
• Net market risk 27%
• Other risks 10%

Eligible solvency capital:

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

SCR composition

Eligible solvency capital

Risk and capital management process

Dynamic to all company risks, in addition to historical investment stress

Main objectives Three main risk categories

Flexible shareholder distribution policy Quarterly assessment of capital position vs. capital need

Solvency II ratio

	Current level = 206%	• Capital over 180% in SCR-ratio distributed over time
180%	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

• The Board has resolved to distribute a special dividend of MNOK 247.1, corresponding to NOK 3.00 per share.
  • To be paid February 16th (ex. date February 9th)
• The Board proposes an ordinary dividend for 2021 of NOK 576.6m, corresponding to NOK 7.00 per share.
  • To be paid April 15th (ex. date April 8th)

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

	Q4	FY
· Net combined ratio	91.6 %	87.3 %
• Gross written premium	MNOK 786 (+8 %)	MNOK 5 951 (+8 %)
• Investment return	MNOK 237 (1.7 %)	MNOK 955 (6.8 %)
• Profit for the period	MNOK 239	MNOK 1 204
• Earnings per share	NOK 3.2	NOK 15.0
• Solvency Capital Ratio	206 %*	206 %