Protector Forsikring

Investor Presentation • Apr 30, 2020

Q1 2020 Interim Results

Investor presentation

Oslo, April 30th 2020

«Olemme erilaisia»

«Vi är annorlunda»

Our DNA

Vision

The Challenger

Business Idea

This will happen through unique relationships, best in class decision-making and cost effective solutions

Main targets

Cost and quality leadership Profitable growth

Top 3

«Vi er annerledes»

«Vi er anderledes»

Values

Credible

Open

Bold

Committed

«We are different»

Result highlights Combined ratio 98.3% – large unrealized loss on investments

• Net combined ratio at 98.3% (105.9%)
• GWP growth at 4% (0% in local currency)
• Net claims ratio at 89.7% (99.3%) incl. 0.3% run-off gains (6.9%)
• Price increases Nordics ≈ 13.5%
• Investment return¹ of MNOK -452, or -3.9%
  • Market turmoil due to a combination of COVID-19 and oil price collapse
• Increased allocation towards High Yield bonds added BNOK 1.7
• Loss in period MNOK -385 vs. profit of MNOK 92 in Q1 2019
• Solvency Capital Ratio² at 142%
• April investment result so far amounting to ≈ MNOK 324
• Added another MNOK 500 in HY in April current yield portfolio at ≈ 4.2%, before cost of risk

1 Investment return post allocated costs, pre-tax and inclusive of return on investments linked to COI ² Solvency capital requirement ratio based on standard formula incl. volatility adjustment

Volume update Gross written premium growing 4% – zero growth in local currencies

• MNOK 115 (4%) gross written premium (GWP) growth in Q1
  • Adjusted for currency effects, overall GWP is flat
• Renewal rate of 87.5%
  • Supported by price increases in the Nordics
  • Client churn somewhat too high
• We expect negative Nordic volume growth in Q2
  • Due to client churn and COVID-19
  • 'Risk capital' allocation towards investments more attractive
• Significant growth coming from UK in Q2
  • April 1st UK inception date with significant growth
    • Approx. £10m in GWP growth (April 1st 2019 volume of £20m)
    • Margins expected to be similar to existing portfolio

in MNOK
Business unit	Q1 '20	Q1 '19	Growth	NOK % Growth	LCY % Growth
Norway	820	804	16	2 %	2 %
Sweden	789	786	3	0 %	-4 %
Denmark	813	761	52	7 %	0 %
UK3	192	175	17	10 %	1 %
Finland	213	187	26	14 %	6 %
Protector	2.828	2.713	115	4 %	0 %

3 Include approx. MNOK 50 reduction in volume due to substantial deductible increase with our biggest client.

Claims development Claims ratio 85.5%

• Gross claims ratio at 85.5% (93.4%)
• Net claims ratio at 89.7% (99.3%)
• Underlying improvement stronger, as Q1 '19 include a 6.9% run-off gain vs. 0.3% in Q1 '20.
• Run-off loss in Denmark amounting to MNOK 31, and gain in Finland of MNOK 28.

	Q1 '20	Q1 '19	Q1 '20	Q1 '19
Business unit	Gross	Gross	Net	Net
Norway	94.3 %	88.5 %	96.1 %	95.1 %
Sweden	80.3 %	94.3 %	78.8 %	93.0 %
Denmark	105.0 %	107.2 %	112.7 %	112.4 %
UK	65.7 %	81.9 %	80.1 %	107.1 %
Finland	67.6 %	100.7 %	69.0 %	100.2 %
Protector	85.5 %	93.4 %	89.7 %	99.3 %

Large losses and run-off Gross large losses¹ of MNOK 123 (9.5%)

• Gross large losses of MNOK 123, or 9.5%.
  • Including flood losses in UK of MNOK 30 (Storm Dennis & Ciara)

• Gross large loss definition changed; > MNOK 10 (MNOK 7.5)

  • Very large claims capped at MNOK 100 (MNOK 50)
  • Normalized large loss rate increased to 8% (7%)

• Net run-off at 0.3% vs. run-off gain 6.9% Q1 2019

  • Denmark: MNOK 31 in run-off losses
  • Finland: MNOK 28 in run-off gains
  • NO/SE/UK: +/- 0
• Some volatility in reserves must be expected within certain products/segments.

¹ Gross large losses defined as losses or loss adjustments > MNOK 10

² Two very large claims capped at MNOK 100

Cost development Still number 1

• Cost the real way¹ this is what matters
  • Will trend somewhat upwards during 2020
• Gross cost ratio 9.3% (7.6%)
  • Higher broker commission going forward due to growth coming from UK
• Net cost ratio 8.6% (6.6%)

Protector Combined Ratio

Significant improvement

in MNOK

	Norway		Sweden		Denmark		UK		Finland		Protector
	Q1 2020	Q1 2019	Q1 2020	Q1 2019	Q1 2020	Q1 2019	Q1 2020	Q1 2019	Q1 2020	Q1 2019	Q1 2020	Q1 2019
Gross premium written	820	804	789	786	813	761	192	175	213	187	2.828	2.713
Gross premium earned	367	376	397	346	234	208	227	153	68	65	1.293	1.147
Net premium earned	328	315	349	262	204	174	181	84	61	57	1.122	891
Gross claims ratio	94.3 %	88.5 %	80.3 %	94.3 %	105.0 %	107.2 %	65.7 %	81.9 %	67.6 %	100.7 %	85.5 %	93.4 %
Gross cost ratio	7.6 %	6.2 %	12.1 %	10.3 %	5.7 %	6.5 %	12.4 %	7.2 %	3.9 %	5.7 %	9.3 %	7.6 %
Gross combined ratio	101.9 %	94.7 %	92.3 %	104.6 %	110.8 %	113.7 %	78.1 %	89.1 %	71.5 %	106.4 %	94.8 %	101.0 %
Net claims ratio	96.1 %	95.1 %	78.8 %	93.0 %	112.7 %	112.4 %	80.1 %	107.1 %	69.0 %	100.2 %	89.7 %	99.3 %
Net cost ratio	4.8 %	6.9 %	11.3 %	6.5 %	8.3 %	4.3 %	13.5 %	11.9 %	1.0 %	4.9 %	8.6 %	6.6 %
Net combined ratio	100.8 %	101.9 %	90.1 %	99.5 %	121.0 %	116.8 %	93.5 %	119.0 %	70.0 %	105.1 %	98.3 %	105.9 %

• Norway: Good start; significant underlying improvement (> 10%-points)

• Sweden: Very good start; significant improvement Q1/Q1 and underlying

• Denmark: Poor start; run-off losses of MNOK 31, underlying profitability unclear

• UK: Good start; gross CR 78.1% – no 'large losses', underlying profitability looks good

• Finland: Good, but uncertain start; run-off gain of MNOK 28

Price increases - will support further profitability improvements

	2019	Q1 2020
Significant price increases driving growth. Other Illness, Group Life and Motor – general uplift	≈ 11.4%	≈ 13.6%
Most significant price increases on Property.	≈ 8.1%	≈ 12.4%
Most significant price increases on Workmen's Compensation and Motor.	≈ 13.1%	≈ 12.5%
Most significant price increases on Motor and Property, especially in the Commercial segment	≈ 7.4%	≈ 21.1%
Strong increases continued in Q1. However, client churn too high April and Q2 price increases expected higher than Q1 Double digit price increases in H2	≈ 10.5%	≈ 13.5%

UK – One team Strengthened team and significant Q2 growth

• 60 employees fully operative while working from home
• Strengthened team in Claims Handling
  • Additional capacity, incl. Business Controller. Management group established
• Strengthened renewal process in commercial sector
• Implementation of broker panels
• UW Public Sector and Housing completed the large April 1st inception date
  • More than 100 renewals, with increased prices where necessary
  • Approx. £50m in quoted volume
• April 1st with significant growth
  • Approx. £10m in GWP growth (April 1st 2019 volume of £20m)
  • Margins expected to be similar to existing portfolio
  • Profitability in existing portfolio expected to have slight improvement due to rate strengthening

Project Corona Momentum (CM)

CM HR CM Product

Goal:

• Minimize effect of the Covid-19 disease for employees and society

Project aim to:

• Minimize spreading of the coronavirus disease amongst colleagues and fellowman.
• Provide unified information to all employees
• Minimize the coronavirus disease effect for the work environment

Involve Communicate

Project Corona Momentum

Keep calm and carry on Do less, then obsess

• Outline capital allocation alternatives and their relative attractiveness. Project aim to:
• Establish documented control on capital situation (solvency) and solvency-based reinsurance contract effect in different scenarios.
• Identify most attractive capital allocation alternatives and act on them.
• Establish best estimate combined ratio prognosis for Q1 and FY 2020.
• Establish best estimate investment return prognosis Q1 and FY 2020.

Goal:

• All Corona-related Claims covered according to T&C
• All relevant risks identified no surprises (direct/indirect)

Project aim to:

• Documented and consistent handling of all Corona-claims
• Prepare in due time

Goal:

• 4-zero; zero loss surprises, zero new unwanted Covid-19 exposure, zero reinsurance uncertainty, and zero stakeholder uncertainty

Project aim to:

• Gain understanding and control of Covid-19 insurance exposure
  • Act as one company internally and towards the markets
  • Mitigate challenges and act on opportunities

12

Goal:

CM Claims Handling CM Capital, Investments & Results

COVID-19 – Insurance Perspective

Neutral expected impact on Combined Ratio longer term

Line of business	Potential directly related Claims
Descending premium	NO	SE (incl. FI)	DK	UK	Total	Indirect impact
Motor
Property
WC / EL
Other products
Liability
Group life (NO)
Other Illness (NO)
Total

Illustration of our internal summarized follow-up structure on COVID-19 exposure per country and line of business.

Motor – Reduced utilisation

• Reduced claims frequency
  • Most present in Norway, UK, Denmark and Finland
  • Small effect in Q1, effect in Q2 dependent on length of lock-down
• Some accumulation risk (parked vehicles)

Business Interruption

• Epidemics cover not standard in Norway, Denmark, UK or Finland
• More normal in Sweden, but pandemics or any of the current legislative measures are not covered

Accident, Fatalities & Disabilities

• New legislations passed in NO & DK; COVID-19 included as occupational illness / injury
  • Untested ground, authorities to be involved
• Disability rate (Norway) often increase in times of unemployment
• Reduced accident frequency

19 areas of potential exposure identified – Preventive guidance issued to Brokers & Customers, where applicable

Investments

Significant losses and opportunities

Investment summary – significant losses and opportunities

Bond portfolio yielding ≈ 4.3% as of March 31st – significantly improved earnings base going forward

• Reducing risk in bond portfolio last 3 years,
  • AAA from 10-15% allocation to 50%, with BBB risk removed
  • HY reduced from >30% to 15%
  • Significant risk reduction from lower credit duration
• Market turmoil during March, resulting in especially attractive HY prices
  • Resilient bond portfolio performance of -1.5%
  • Increased allocation towards HY bonds for BNOK 1.7, at attractive levels (avg. 1124 bps)
• SCR effect of spread widening, counteracted by volatility adjustment
• Equities with poor development in Q1 with a loss at -28.8% inclusive of hedging instruments
  • Limited corona impact, record high discount to estimated underlying value
  • Put options provide significant downside protection from current levels
• Added another MNOK 500 in HY in April current yield portfolio at ≈ 4.2%, before cost of risk
• April investment result so far amounting to ≈ MNOK 324

Investments AUM, as well as float, is increasing.

Investment performance

Net loss of MNOK 452 on investments

• Return on investment portfolio at -3.9%, net loss of MNOK 452
• Equity return at -28.8% or MNOK -331, including hedging instruments
  • Excl. of put options: -33.3%
• Bond portfolio return at -1.1%, or MNOK -121

• YTD return on investment portfolio as of April 29th at ≈ -1.3%, or MNOK -128, including hedging instruments

Equity portfolio statistics

No companies directly hit by COVID-19 or low oil price, but still a weak quarter

• Good downside protection from put options if market turns down again. (MNOK 610 secured at March 31st -levels)
• Goal to beat market over time
• Return of 43% after insourcing
  • OSEBX 24% in same period
• Equity share of 6.7%, down from 10.1% in Q4 19
• Discount to estimated intrinsic value 57%
• Intrinsic value downward adjusted with 5-6% due to COVID-19.
  • No travel-, oil- or oil service companies in the portfolio

Cumulative TWR in % – Equity portfolio vs. benchmarks (08.10.2014 – 31.03.2020)

Bond portfolio statistics

Yield at 4.3% and avg. IG-rated portfolio – Added BNOK 1.7 to HY in quarter

Portfolio data	31.12.19	31.03.2020
Size bond & cash eq. (MNOK)1	9 757	11 091
Avg. ref. rate (NIBOR, STIBOR, etc.)	1.2%	0.6%
Avg. spread/risk premium (bps)	89	366
Yield	2.1%	4.3%
Duration	0.4	0.4
Credit duration2	2.2	2.2
Avg. rating3	A+	A

¹ Size excludes forward foreign currency contracts

²Avg. excludes bank deposits

³Avg. based on official rating (>60%) and Protector rating (<40%) & is based on linear rating (as usual). WARF methodology would give a lower rating.

• Yield up to 4.3% (2.1% in Q4 '19), before cost of risk
  • Spread up 277bps, underlying ref. rate -59bps
• HY portfolio totalling BNOK 3.4
  • MNOK 1 200 invested in-house, MNOK 500 in High Yield fund
• Linear and WARF-score avg. investment grade rating
  • Avg. rating down due to HY investments, but also some rating downgrades

In-house bond portfolio statistics¹

>50% covered and bank deposit. Low real estate and oil & oil service HY exposure

• Covered bonds and bank deposits make up >50% of total bond portfolio
• HY portfolio heavily weighted towards BB-segment / higher graded bonds
  • 5 largest HY investments in March: Bonheur, Mowi, DNB T1, Millicom and Scatec Solar
  • 4 HY positions (≈ MNOK 160) assessed as high risk of default NTM
    • All 4 positions downgraded to CCC-rating in quarter
    • Recovery assessment >70% as of Q120
• Low exposure to Real Estate and Oil & Oil Service relative to overall Nordic HY market³
  • Oil & Oil Service: Protector 2% vs 21% in Nordic Corporate HY market
  • Real Estate: Protector 9% vs 20% in Nordic Corporate HY market

Bond portfolio reallocation last 3 years

Wait for distressed markets

Development in the bond portfolio last couple of years

• Increased AAA portfolio, with shorter credit duration (4yrs in 2017 to 2.2yrs today)

• Bank deposit used frequently as alternative to AAA-rated bonds for liquidity portfolio

• Removed all long BBB risk (ex. subord. financials) – very poor return vs. capital consumption (SII+ Stress).

3

2

1

• Decreased overall HY allocation from 30% in 2016 to 16% year-end 2019. Duration down from ≈ 3yrs to 1.9yrs.

• High discipline on credit quality at historically low compensation for risk-taking.

Protector vs. «peers» until February 2020

Stable, with lower capital consumption

Protector HY portfolio return and size vs. DNB HY Index – March 2015 to February 2020

• Consistent positive returns for both total- and HY portfolio
• Significantly lower risk and capital consumption
• Very limited losses last 5yrs
• Few HY investments meeting our hurdle rate

¹ Crossover fund benchmark consist of: Storebrand Rente +, Arctic Return Class I, Carnegie Corp. Bond, Handelsbanken Høyrente, Holberg Kreditt, Pareto Høyrente, Alfred Berg Income, Eika Kreditt, Landkreditt Høyrente ² BBB+ rating benchmark consist of: Storebrand Rente +, Arctic Return Class I, Carnegie Corp. Bond, Handelsbanken Høyrente, Pareto Høyrente, Alfred Berg Income, Nordea OMF likviditet

Protector vs. «peers» today MNOK 968 in "outperformance" in 1 month

Discipline of lower risk allocation and severe stress testing paying off – in a position to increase allocation

¹ Crossover fund benchmark consist of: Storebrand Rente +, Arctic Return Class I, Carnegie Corp. Bond, Handelsbanken Høyrente, Holberg Kreditt, Pareto Høyrente, Alfred Berg Income, Eika Kreditt, Landkreditt Høyrente ² BBB+ rating benchmark consist of: Storebrand Rente +, Arctic Return Class I, Carnegie Corp. Bond, Handelsbanken Høyrente, Pareto Høyrente, Alfred Berg Income, Nordea OMF likviditet

Market turmoil – COVID-19 and oil collapse

Daily meeting structure established – monitor risk and act on opportunities

Daily CM capital meetings - CEO, CFO, CRO, CIO and team

April:

• Fixed income still looks more attractive than equities in a 'return on solvency capital' and risk point of view
• Less HY volume available at attractive prices when market stabilizes continued allocation towards HY bond funds
• Net MNOK 500 invested in the HY segment in April

Investment summary – significant losses and opportunities

Bond portfolio yielding ≈ 4.3% as of March 31st – significantly improved earnings base going forward

• Reducing risk in bond portfolio last 3 years,
  • AAA from 10-15% allocation to 50%, with BBB risk removed
  • HY reduced from >30% to 15%
  • Significant risk reduction from lower credit duration
• Market turmoil during March, resulting in especially attractive HY prices
  • Resilient bond portfolio performance of -1.5%
  • Increased allocation towards HY bonds for BNOK 1.7, at attractive levels (avg. 1124 bps)
• SCR effect of spread widening, counteracted by volatility adjustment
• Equities with poor development in Q1 with a loss at -28.8% inclusive of hedging instruments
  • Limited corona impact, record high discount to estimated underlying value
  • Put options provide significant downside protection from current levels
• Added another MNOK 500 in HY in April current yield portfolio at ≈ 4.2%, before cost of risk
• April investment result so far amounting to ≈ MNOK 324

«Olemme erilaisia»

«Vi är annorlunda»

Our DNA

Vision

The Challenger

Business Idea

This will happen through unique relationships, best in class decision-making and cost effective solutions

Main targets

Cost and quality leadership Profitable growth

Top 3

«Vi er annerledes»

«Vi er anderledes»

Values

Credible

Open

Bold

Committed

«We are different»

Profit & loss excl. COI Profit before tax of MNOK -320 (MNOK 13)

in MNOK		Q1 2020	Q1 2019	FY 2019
Gross premiums written		2828	2713	5100
Gross premiums earned		1293	1147	4996
Gross claims incurred		(1106)	(1072)	(4724)
Earned premiums, net of reinsurance		1122	891	4148
Other insurance related income		4	3	11
Claims incurred, net of reinsurance		(1006)	(884)	(3949)
Sales cost		(72)	(49)	(234)
Administration cost		(48)	(38)	(180)
Commission from reinsurer		23	28	57
Other insurance related expenses		(4)	(5)	(16)
Technical result		19	(55)	(163)
Other income/costs		(16)	(14)	(50)
Net financial income		(323)	81	141
Profit before tax		(320)	13	(72)
Claims ratio, net of ceded business	(1)	89.7 %	99.3 %	95.2 %
Expense ratio, net of ceded business	(2)	8.6 %	6.6 %	8.6 %
Combined ratio, net of ceded business	(3)	98.3 %	105.9 %	103.8 %
Gross claims ratio	(4)	85.5 %	93.4 %	94.6 %
Gross expense ratio	(5)	9.3 %	7.6 %	8.3 %
Gross combined ratio	(6)	94.8 %	101.0 %	102.8 %
Retention rate	(7)	86.8 %	77.7 %	83.0 %
Earnings per share	(8)	(4.8)	0.8	(3.5)

Higher broker commission going forward due to growth coming from UK Increased office capacity in Manchester and London relative to Q1 '19

Loss on investments excl. return on invested capital allocated to COI (based on reserve volume)

Underlying reality better due to differences in run-offs

Significant profitability improvement

New reinsurance structure

Balance sheet

SCR-ratio 142% based on standard formula

In millions	31.03.2020	31.03.2019	31.12.2019
Owner-occupied property	12.7	13.3	12.8
Financial assets	10,337.6	8,816.4	9,219.8
Derivatives	300.9	14.6	32.6
Bank deposits	182.9	152.1	343.3
Other assets	3,480.4	3,322.0	2,705.2
Discontinued operations	2,301.9	2,134.2	2,428.5
Total assets	16,616.4	14,452.6	14,742.2
Total equity	1,630.4	2,114.5	2,019.3
Subordinated loan capital	1,243.3	1,243.3	1,243.3
Total reserves	10,662.0	8,734.2	8,339.2
Derivatives	150.6	9.4	45.5
Other liabilities	1,414.4	1,214.8	1,542.6
Discontinued operations	1,515.7	1,136.5	1,552.2
Total equity and liabilities	16,616.4	14,452.6	14,742.2

• SCR coverage ratio 142% pr. 31.03.2020 compared to 172% pr. 31.12.2019 driven by Q1 investment results:
  • Includes volatility adjustment (VA) implemented in 2020; mitigation of shortterm spread volatility effect on balance
  • SCR-ratio exc. VA: 130%
• Full Tier 2 and Tier 1 restricted utilization

SCR-ratio composition

Solvency II

Composition of SCR:

• Net insurance risk 73%
• Net market risk 15%
• Other risks 12%

Eligible SII capital:

• No dividend
• Guarantee provision subtracted from own funds

SCR composition

29

Shareholder's matters

Per 28.04.2020

SHAREHOLDER NAME	# SHARES	%
AWILHELMSEN CAPITAL HOLDINGS AS	7.435.437	8.63 %
STENSHAGEN INVEST AS	7.126.353	8.27 %
VERDIPAPIRFOND ODIN NORDEN	5.637.817	6.54 %
CITIBANK EUROPE PLC	4.616.123	5.36 %
HVALER INVEST AS*	3.186.809	3.70 %
CLEARSTREAM BANKING S.A.	2.273.712	2.64 %
OJADA AS	2.156.842	2.50 %
VERDIPAPIRFONDET ALFRED BERG GAMBA	2.014.534	2.34 %
ARTEL AS	1.800.000	2.09 %
UBS AG	1.677.675	1.95 %
PERSHING LLC	1.529.667	1.78 %
UTMOST PANEUROPE DAC	1.360.405	1.58 %
AS TANJA	1.228.942	1.43 %
JOHAN VINJE AS	1.187.841	1.38 %
VERDIPAPIRFONDET ALFRED BERG NORGE	1.145.787	1.33 %
VERDIPAPIRFONDET PARETO INVESTMENT	1.047.000	1.22 %
DEUTSCHE BANK AKTIENGESELLSCHAFT	1.041.596	1.21 %
DYVI INVEST AS	1.040.933	1.21 %
ALSØY INVEST AS**	1.002.751	1.16 %
AVANZA BANK AB	861.329	1.00 %
20 LARGEST	49.378.266	57.30 %
TREASURY SHARES	4.370.538	5.07 %
OTHER	32.406.801	37.63 %
TOTAL SHARES	86.155.605	100.00 %

*CEO Sverre Bjerkeli

** COB Jostein Sørvoll

Related parties shareholding

• Management's direct and indirect shareholding totals 3.7m shares or 4 % of current outstanding shares

Protector share (PROTCT)

• Board members directly own a total of 1.6m shares or 2 % of current outstanding shares.

Primary insider trades this quarter

• Country Manager Sweden, Hans Didring, has bought 14,903 shares
• Chief Investment Officer, Dag Marius Nereng, has bought 1,500 shares
• Executive Assistant & IR, Amund Skoglund, has bought 1,000 shares

¹ Share price adjusted for dividends, no reinvestment of dividends. Data pr. 31.03.2020

Long term financial objectives Looking 3 year ahead – Continued disciplined growth

	Old	As of February 6th 2020
Net Combined Ratio	94 %	94 %
Solvency Capital Ratio	>150 %	>150 %
Return of Equity (excl. COI)	> 20 %	> 20 %
GWP Growth Rate	10 – 15 %	5 %

Summary and Q&A

Improved combined ratio and responsive capital allocation

• Net combined ratio at 98.3% (105.9%)
• Price increases Nordics ≈ 13.5%
  • Double digit price increases in H2 expected
• Investment return of MNOK -452, or -3.9% in Q1. April investment result so far amounting to ≈ MNOK 324
  • Market turmoil due to a combination of COVID-19 and oil price collapse
• Increased allocation towards High Yield bonds added BNOK 1.7 in March and another MNOK 500 in April
  • Yield as of March 31st ≈ 4.3% as of April 29th ≈ 4.2%
    • Some gains related to spread tightening realized.
• Loss in period of MNOK -385 vs. profit of MNOK 92 in Q1 2019
• Solvency Capital Ratio at 142%

«Olemme erilaisia»

«Vi är annorlunda»

Our DNA

Vision

The Challenger

Business Idea

This will happen through unique relationships, best in class decision-making and cost effective solutions

Main targets

Cost and quality leadership Profitable growth

Top 3

«Vi er annerledes»

«Vi er anderledes»

Values

Credible

Open

Bold

Committed

«We are different»

Appendix

COI results CR 92.9% – discontinuation progressing in a good way

in MNOK

	COI1		Protector incl. COI
	Q1 2020	Q1 2019	Q1 2020	Q1 2019
Gross premium written	63	89	2.891	2.802
Gross premium earned	63	89	1.356	1.236
Net premium earned	34	80	1.156	971
Gross claims ratio	92.5 %	1.4 %	85.8 %	86.8 %
Gross cost ratio	0.0 %	4.6 %	8.8 %	7.4 %
Gross combined ratio	92.5 %	6.0 %	94.6 %	94.2 %
Net claims ratio	93.3 %	1.4 %	89.8 %	91.2 %
Net cost ratio	-0.5 %	-4.9 %	8.4 %	5.7 %
Net combined ratio	92.9 %	-3.5 %	98.2 %	96.9 %

• Volume somewhat higher than expected could reach MNOK 150 in 2020
• CR 92.9%
• Discontinuation progressing in a good way and according to plan.

Profit & loss – including COI Profit before tax of MNOK -451 (MNOK 122)

in MNOK		Q1 2020	Q1 2019	FY 2019
Gross premiums written		2891	2802	5457
Gross premiums earned		1356	1236	5352
Gross claims incurred		(1164)	(1073)	(4994)
Earned premiums, net of reinsurance		1156	971	4372
Other insurance related income		4	3	11
Claims incurred, net of reinsurance		(1038)	(885)	(4079)
Sales cost		(72)	(50)	(239)
Administration cost		(48)	(41)	(180)
Commission from reinsurer		23	36	66
Other insurance related expenses		(6)	(5)	(22)
Technical result		19	28	(72)
Other income/costs		(18)	(17)	(62)
Net financial income		(452)	111	157
Profit before tax		(451)	122	23
Claims ratio, net of ceded business	(1)	89.8 %	91.2 %	93.3 %
Expense ratio, net of ceded business	(2)	8.4 %	5.7 %	8.1 %
Combined ratio, net of ceded business	(3)	98.2 %	96.9 %	101.4 %
Gross claims ratio	(4)	85.8 %	86.8 %	93.3 %
Gross expense ratio	(5)	8.8 %	7.4 %	7.8 %
Gross combined ratio	(6)	94.7 %	94.2 %	101.1 %
Retention rate	(7)	85.3 %	78.5 %	81.7 %
Earnings per share	(8)	(4.8)	(0.8)	(3.5)

Key ratio description

Ratio

• (1) Claims ratio, net of ceded business
• (2) Expense ratio, net of ceded business
• (3) Combined ratio, net of ceded business
• (4) Gross claims ratio
• (5) Gross expense ratio
• (6) Gross combined ratio
• (7) Retention rate

Ratio calculation

• (1) Claims incurred, net of reinsurance in % of earned premiums, net of reinsurance
• (2) Operating expenses in % of earned premiums, net of reinsurance
• (3) Net claims ratio + net expense ratio
• (4) Gross claims incurred in % of gross premiums earned
• (5) Sales and administration costs in % of gross premiums earned
• (6) Gross claims ratio + gross expense ratio
• (7) Earned premiums, net of reinsurance in % of gross earned premiums

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 obligations to 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.