Protector Forsikring — Investor Presentation 2021

Oct 27, 2021

Q3 2021 Interim results

Investor Presentation

Oslo, 28 October 2021

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.

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

Result highlight Q3 & YTD 2021

Q3: Combined ratio at 82.9% | Investment return at 0.0% | EPS at NOK 1.6

Other highlights:

• Change in profitability guiding; CR 2021 88%
• Continued profitability measures
  • Price increases at 13.2% (Q3) and 9.3% (YTD)
• Special dividend of NOK 1.67 per share

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

* Post special dividend

Claims update Q3 claims ratio at 73.9%, 9.1%-points down from last year

• Net run off gains at 4.9 % in Q3 21 (-3.5% in Q3 20)
• Large losses¹ at 9.4% (12.0%), 2.4%-points higher than normalized
• Aggregated COVID-19 effects in quarter at 0%
• Change made to guided profitability for full-year 2021
  • Net combined ratio for 2021 88%

Business unit	Q3 '21 Gross	Q3 '21 Net	Q3 '20 Gross	Q3 '20 Net
Norway	73 %	74 %	75 %	72 %
Sweden	59 %	61 %	78 %	80 %
Denmark	82 %	74 %	116 %	117 %
UK	84 %	88 %	65 %	74 %
Finland	85 %	86 %	66 %	68 %
Protector	73.4 %	73.9 %	80.6 %	83.0 %

Business unit	YTD '21	YTD '21	YTD '20	YTD '20
	Gross	Net	Gross	Net
Norway	71 %	80 %	83 %	83 %
Sweden	60 %	63 %	83 %	83 %
Denmark	101 %	81 %	106 %	109 %
UK	81 %	86 %	62 %	71 %
Finland	81 %	82 %	62 %	64 %
Protector	75.1 %	76.2 %	82.2 %	84.8 %

Large losses and run-off Gross large losses¹ of MNOK 139 (9.4%), net run off gains at 1.7%

• Gross large losses of MNOK 139 or 9.4% in Q3 21

  • Cloud burst claim event in Gävle, Sweden (26 claims in total)
  • One very large claim in UK (>50 MNOK net effect)

• Net run off gains at 4.9 % in Q3 21 (loss of 3.5% in Q3 20)

  • Driven by run off gains in Sweden at 3.7%

• Some volatility in reserves & large losses must be expected

6

Q3 18

Q1 19

Q4 18

Q2 19

Q3 19

Q4 19

Q1 20

Q2 20

Q4 20

Q3 20

Q1 21

Q2 21

Q3 21

Q2 18

Q3 17

1.2%

Q4 17

Q1 18

Volume update GWP up 27.5% in quarter, 25.8% in local currencies

• Q3: a small volume-quarter • GWP growth at 27.5% (25.8% in LCY) • Renewal rate at 99.4 % • Realized price increases at 13.2% • Low and stabilized churn
  • Underlying UK growth MNOK 50 lower; change of inception date for large account

• YTD:

• GWP growth at 7.9% (9.7% in LCY)
• Realized price increases at 9.3%
• Current price increases and underwriting account for increased inflation due to Covid
• In line with guiding for 2021; 10% in LCY

Business unit	Q3 '21		Q3 '20 Growth
Norway	174	162	12
Sweden	248	207	41
Denmark	61	58	3
UK	368	238	130
Finland	6	7	-1
Protector	856	671	184
COI	44	64	-20
Protector incl. COI	900	735	165

Business unit	YTD '21		YTD '20 Growth
Norway	1.293	1.249	44
Sweden	1.545	1.358	187
Denmark	827	913	-86
UK	1.327	1.051	276
Finland	173	217	-43
Protector	5.165	4.787	377
COI	151	191	-40
Protector incl. COI	5.316	4.978	337

Country-by-country key metrics

Q3 combined ratio at 82.9% | Quarterly country volatility must be expected

PROTECTOR
		Insurance

Q3 2021

	Norway		Sweden		Denmark		UK		Finland		Protector
	Q3 2021	Q3 2020	Q3 2021	Q3 2020	Q3 2021	Q3 2020	Q3 2021	Q3 2020	Q3 2021	Q3 2020	Q3 2021	Q3 2020
Gross premium written	174	162	248	207	61	58	368	238	6	7	856	671
Gross premium earned	354	345	450	400	227	246	390	298	54	51	1.475	1.340
Net premium earned	316	314	394	349	195	216	303	224	48	45	1.257	1.147
Gross claims ratio	73.1 %	75.0 %	58.9 %	77.8 %	81.5 %	115.5 %	84.0 %	64.6 %	85.0 %	65.9 %	73.4 %	80.6 %
Gross cost ratio	8.0 %	9.7 %	11.1 %	11.3 %	7.1 %	5.3 %	13.5 %	12.8 %	4.7 %	5.2 %	10.1 %	9.9 %
Gross combined ratio	81.1 %	84.8 %	70.0 %	89.1 %	88.6 %	120.8 %	97.5 %	77.5 %	89.8 %	71.1 %	83.5 %	90.5 %
Net claims ratio	74.1 %	71.8 %	61.1 %	80.2 %	74.4 %	116.6 %	88.2 %	73.9 %	85.7 %	67.8 %	73.9 %	83.0 %
Net cost ratio	6.3 %	8.0 %	8.4 %	11.8 %	5.2 %	8.5 %	15.6 %	14.7 %	3.9 %	3.5 %	8.9 %	10.4 %
Net combined ratio	80.4 %	79.7 %	69.5 %	91.9 %	79.6 %	125.1 %	103.8 %	88.6 %	89.6 %	71.3 %	82.9 %	93.4 %

YTD 2021

	Norway		Sweden		Denmark		UK		Finland		Protector
	YTD 2021	YTD 2020	YTD 2021	YTD 2020	YTD 2021	YTD 2020	YTD 2021	YTD 2020	YTD 2021	YTD 2020	YTD 2021	YTD 2020
Gross premium written	1.293	1.249	1.545	1.358	827	913	1.327	1.051	173	217	5.165	4.787
Gross premium earned	1.047	1.085	1.307	1.194	650	731	1.076	805	198	160	4.278	3.975
Net premium earned	932	973	1.133	1.045	562	640	847	625	177	143	3.652	3.425
Gross claims ratio	71.2 %	83.4 %	59.8 %	82.7 %	101.0 %	106.2 %	80.7 %	62.2 %	81.3 %	62.2 %	75.1 %	82.2 %
Gross cost ratio	7.3 %	8.3 %	12.1 %	11.9 %	8.1 %	6.1 %	14.7 %	12.8 %	5.3 %	5.1 %	10.7 %	9.8 %
Gross combined ratio	78.4 %	91.7 %	71.9 %	94.6 %	109.1 %	112.4 %	95.4 %	75.0 %	86.6 %	67.3 %	85.8 %	92.0 %
Net claims ratio	79.9 %	82.8 %	63.1 %	82.9 %	80.6 %	109.0 %	85.5 %	71.3 %	82.3 %	63.9 %	76.2 %	84.8 %
Net cost ratio	6.8 %	6.6 %	10.0 %	12.0 %	5.9 %	8.5 %	15.8 %	13.6 %	4.2 %	2.2 %	9.6 %	9.7 %
Net combined ratio	86.7 %	89.4 %	73.1 %	94.9 %	86.6 %	117.5 %	101.4 %	84.9 %	86.5 %	66.1 %	85.9 %	94.5 %

Status vs. 2021 guiding Renewed guiding on profitability, premium growth as expected

	Guiding 2021	Results H1	Results Q3	Results YTD	New guiding
Net Combined Ratio:	90-92%	87.4%	82.9%	85.9%	88%
Return on Equity (ROE):	>20%	49.1%*	14.8%*	37.7%*	Unchanged
Gross Written Premium (GWP) growth:	10% (LCY)	7.0% (LCY)	25.8% (LCY)	9.7% (LCY)	Unchanged
Solvency II Capital Ratio (SCR):	> 150%	235%	230%	230%	Unchanged

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

Investments

Investment is core

Investment performance and statistics

0.0% return in Q3 | Bond portfolio yield at 2.0%, before cost of risk

• Q3 return on investment portfolio at 0.0%, or MNOK -7
  • Equity portfolio, ex. put options, returning -4.1%, or MNOK -88
  • Bond portfolio returning 0.7%, or MNOK 92
  • Return of put options MNOK -11
• YTD return on investment portfolio at 5.1%, or MNOK 717
  • Equity portfolio, ex. put options, returning 28.5%, or MNOK 502
  • Bond portfolio returning 2.1%, or MNOK 259
  • Return of put options MNOK -44
• Equity share at 14.6%, up from 14.0% in Q2 '21
• Bond portfolio's average rating at BBB+
  • HY portfolio totalling BNOK 4.0 vs BNOK 4.3 in Q2 '21
• Strong, albeit more balanced Nordic HY bond market in quarter
  • DNB Markets Nordic HY index return +1.7%

-4.1%			0.0%
	Equities1 Bonds
	Investment portfolio data	30.09.21	30.09.20	30.06.21
	Size bond & cash eq. (MNOK)3	12 369	11 788	12 139
	Avg. ref. rate (NIBOR, STIBOR, etc.)	0.3%	0.1%	0.1%
Bonds	Avg. spread/risk premium (bps)	164	205	175
	Yield	2.0%	2.1%	1.8%
	Duration	0.4	0.3	0.4
	Credit duration4	1.3	1.6	1.3
	Avg. rating5	BBB+	A	BBB+
	Portfolio size	2 118	1 333	2 050
Equities	Share of total	14.6%	9.9%	14.0%
	Estimated intrinsic value discount	30%	42%	27%
	No. of companies	22	17	21

¹ Equity portfolio return excluding put options

²Total portfolio return including put options

³ Size excludes currency swap contracts

⁴Avg. includes bank deposits

⁵Avg. linear rating based on official rating (>55%) and 'Protector rating' (<45%)

¹ Equity portfolio return excluding put options 2 Total portfolio return including put options

Q3 YTD

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

Profit and loss Q3 (&YTD) Profit of MNOK 125 (965) – EPS at NOK 1.6 (11.8)

NOKm	Q3 2021	Q3 2020	Q1-Q3 2021	Q1-Q3 2020	FY 2020
Gross premiums written	856	671	5 165	4 787	5 516
Earned premiums, net of reinsurance	1 257	1 147	3 652	3 425	4 614
Claims incurred, net of reinsurance	(930)	(952)	(2 783)	(2 905)	(3 901)
Sales cost	(89)	(86)	(267)	(238)	(331)
Administration cost	(61)	(46)	(189)	(150)	(221)
Commission from reinsurer	37	14	104	55	82
Other insurance related
income/expenses	(4)	5	(23)	6	5
Technical result	211	81	493	193	247
Other income/costs	(11)	(14)	(41)	(48)	(67)
Net financial income	(0)	265	658	452	865
Profit before tax	200	331	1 110	597	1 045
Tax	(68)	(44)	(209)	(124)	(160)
Discontinued operations	(3)	60	67	63	94
Net comprehensive income	(4)	(3)	(3)	3	2
Profit for the period	125	344	965	539	982
Claims ratio, net of reinsurance	73.9 %	83.0 %	76.2 %	84.8 %	84.6 %
Expense ratio, net of reinsurance	8.9 %	10.4 %	9.6 %	9.7 %	10.2 %
Combined ratio, net of reinsurance	82.9 %	93.4 %	85.9 %	94.5 %	94.8 %
Gross claims ratio	73.4 %	80.6 %	75.1 %	82.2 %	82.2 %
Gross expense ratio	10.1 %	9.9 %	10.7 %	9.8 %	10.3 %
Gross combined ratio	83.5 %	90.5 %	85.8 %	92.0 %	92.5 %
Retention rate	85.2 %	85.6 %	85.4 %	86.1 %	85.8 %
Earnings per share	1.6	4.2	11.8	(4.8)	12.0

Balance Sheet SCR-ratio at 230% post Q3 special dividend

In millions	30.09.2021	30.09.2020	31.12.2020
Financial assets	13 291.1	11 757.0	11 988.6
Derivatives	64	99.3	47.9
Bank deposits	101.4	65.5	263.2
Other assets	4 420.7	2 679.3	2 554.9
Discontinued operations	1 516.3	2 132.2	1 895.7
Total assets	19 393.5	16 733.4	16 750.3
Total equity	3 467.1	2 574.6	3 030.5
Subordinated loan capital	1 244.2	1 243.3	1 473.0
Total reserves	10 494.9	10 052.7	9 185.1
Derivatives	70.1	47.6	61.4
Other liabilities	3 246.2	1 554.6	1 888.7
Discontinued operations	870.9	1 260.6	1 111.6
Total equity and liabilities	19 393.5	16 733.4	16 750.3

• Strong technical result, weak investment result:

• Change in SCR-ratio driven by proposed dividend for Q3

SCR-ratio composition

Solvency II SCR ratio at 230%

Composition of SCR:

• Net insurance risk 62%
• Net market risk 28%
• Other risks 10%

16

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

SCR composition

Eligible SII capital

Dividend policy A new special dividend of NOK 1.67 per share – Flexible shareholder distribution policy

Solvency II ratio

180%	Current level = 230%	• 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 137.5 (NOK 1.67 per share); to be paid out around 10 November (ex. dividend 3 November)
• Quarterly assessment continued going forward

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

Result summary Q3 & YTD 2021

Q3: Combined ratio at 82.9% | Investment return at 0.0% | EPS at NOK 1.6

	Q3	YTD
• Net combined ratio	82.9%	85.9%
• Gross written premium	MNOK 856 (+27%)	MNOK 5 165 (+8%)
• Investment return	MNOK -7 (0.0%)	MNOK 717 (5.1%)
• Profit for the period	MNOK 125	MNOK 965
• Earnings per share	NOK 1.6	NOK 11.8
• Dividend	NOK 1.67 pr. share	NOK 8.01 pr. share
• Solvency Capital Ratio	230%	230%