Protector Forsikring

Investor Presentation • Feb 1, 2023

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.

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

Committed

Result highlight Fiscal Year (FY) & Q4 2022

FY: Combined ratio at 88.9 % | Investment return at 3.4 % | EPS at NOK 10.2

_ Equities

2021

Claims update

• 16 large losses¹ at 6.2 % (4.6 %) in 2022
  • Driven by 3 claims in UK & 2 in Sweden
• 4 large losses at 4.2 % (7.2 %) in Q4
• Q4 Motor frequency affected by snowy weather, especially in Norway & UK
• Net run-off gains at 2.3 % (loss of 0.3 %) in 2022
  • Mainly due to run-off gains in Sweden & UK
• Net run-off loss at 0.3 % (loss of 4.3 %) in Q4
  • Losses in Norway, gains in Denmark & Finland
• Aggregated COVID-19 effects at 0 % in 2022, 0.8 % in 2021
  • 0% in Q4, 22 & 21

	Business unit	Gross	Net	Gross
	Norway	85 %	84 %	78 %
UK	Sweden	73 %	75 %	59 %
	Denmark	93 %	87 %	103 %
	UK	73 %	74 %	85 %
	Finland	87 %	87 %	77 %

Business unit	Q4 22	Q4 22	Q4 21	Q4 21
	Gross	Net	Gross	Net
Norway	111 %	101 %	98 %	89 %
Sweden	73 %	78 %	58 %	62 %
Denmark	103 %	87 %	108 %	89 %
UK	61 %	65 %	96 %	94 %
Finland	77%	78 %	64 %	64 %
Protector	82.9 %	81.4 %	85.6 % -	80.9 %

5

Large losses¹ and run-off update

• Net large losses of MNOK 352 or 6.2 % (225.7 or 4.6%)
  • Mainly Property

• Net large losses of MNOK 64 or 4.2 % (44 or 7.2%) in Q4

• Net run-off gains at 2.3 % (loss of 0.3 %)

  • Gains Property, Personal Accident & Motor "Short tailed"
  • Losses on Workers compensation & Liability "Long tailed"
• Net run-off loss at 0.3 % (loss of 4.3 %) in Q4
  • Gains short tail products, losses long tailed product
• Volatility in reserves and large losses must be expected

7

• Renewal rate 93 %, supported by price increases to counter claims inflation
• Sweden & UK accounts for 71% of new sales
• UK now largest business unit
• Q4 growth at 62 %
  • Renewal rate 100 %
  • 1 very large renewal in UK
• January 1st 2023 growth in GWP at 17 % in LCY
  • Driven by continued low churn in Scandinavia
  • January is a small UK inception month
  • Lower effect on FY 2023 volume than previous years, due to increased volume weights in UK

GWP in MNOK
Business unit	FY 222	FY 21		Growth NOK %	LCY%
Norway	1 610	1 415	195	14%	14%
Sweden	2 073	1 820	252	14%	20%
Denmark	1 077	919	159	17%	18%
UK	2 116	1 618	498	31%	30%
Finland	222	178	44	25%	25%
Protector	7 098	5 951	1 147	19%	21%

GWP in MNOK
Business unit	Q4 22	Q4 21		Growth NOK %	LCY%
Norway	144	122	21	18%	18%
Sweden	383	276	108	39%	42%
Denmark	143	92	51	55%	39%
UK	597	291	306	105%	101%
Finland	8	ഗ	ന	72%	6%
Protector	1 275	786	489	62%	60%

Country-by-country key metrics

Quarterly volatility must be expected, especially by country

PROTECTOR insurance

FY 2022

	Norway		Sweden		Denmark			UK		Finland	Protector
MNOK	FY 22	FY 21	FY 22	FY 21	FY 22	FY 21	FY 22	FY 21	FY 22	FY 21	FY 22	FY 21
Gross premium written	1 610	1 415	2 073	1 820	1 077	ਰੇ ਰੇ	2 116	1 618	222	178	7 098	5 ਰੇਟ ਹ
Gross premium earned	1 579	1 398	1 942	1 749	1 038	880	1 771	1 461	211	258	6 541	5 746
Net premium earned	1 434	1 245	1 730	1 512	930	761	1 427	1 171	ਰਤੋ	231	5 715	4 921
Gross claims ratio	84.6 %	77.8 %	72.6 %	59.3 %	93.5 %	102.8 %	72.6 %	84.7 %	86.6 %	77.3 %	79.3 %	77.8 %
Gross cost ratio	6.2 %	7.6 %	12.5 %	12.3 %	7.0 %	8.4 %	12.7 %	14.4 %	5.4 %	5.6 %	9.9 %	10.8 %
Gross combined ratio	90.8 %	85.4 %	85.1 %	71.6 %	100.5 %	111.2 %	85.2 %	99.1 %	91.9 %	82.9 %	89.2 %	88.5 %
Net claims ratio	83.7 %	82.1 %	75.0 %	62.8 %	86.9 %	82.9 %	74.2 %	87.8 %	86.6 %	78.1 %	79.3 %	77.4 %
Net cost ratio	5.5 %	7.2 %	11.9 %	10.2 %	6.8 %	6.9 %	13.3 %	15.5 %	4.9 %	4.0 %	9.6 %	9.9 %
Net combined ratio	89.2 %	89.2 %	86.9 %	73.0 %	93.7 %	89.8 %	87.6 %	103.3 %	91.5 %	82.1 %	88.9 %	87.3 %

Q4 2022

	Norway		Sweden		Denmark		UK		Finland		Protector
MNOK	Q4 22	Q4 21	Q4 22	Q4 21	Q4 22	Q4 21	Q4 22	Q4 21	Q4 22	Q4 21	Q4 22	Q4 21
Gross premium written	144	122	383	276	143	92	597	291	8		1 275	786
Gross premium earned	406	351	513	442	274	231	514	384	48	60	1 755	1 468
Net premium earned	370	313	445	379	246	199	424	324	43	53	1 528	1 269
Gross claims ratio	110.8 %	97.8 %	72.6 %	58.0 %	102.6 %	107.8 %	61.1 %	96.2 %	77.1 %	64.1 %	82.9 %	85.6 %
Gross cost ratio	6.4 %	8.4 %	13.7 %	12.6 %	7.3 %	9.3 %	12.1 %	13.4 %	8.5 %	6.3 %	10.4 %	11.0 %
Gross combined ratio	117.2 %	106.2 %	86.3 %	70.6 %	109.9 %	117.1 %	73.2 %	109.5 %	85.6 %	70.5 %	93.3 %	96.6 %
Net claims ratio	100.6 %	88.5 %	77.8 %	61.8 %	87.5 %	89.3 %	65.2 %	93.6 %	78.1 %	64.1 %	81.4 %	80.9 %
Net cost ratio	6.9 %	8.1 %	13.9 %	10.8 %	7.3 %	9.8 %	11.5 %	14.8 %	7.7 %	3.3 %	10.3 %	10.7 %
Net combined ratio	107.5 %	96.6 %	91.6 %	72.6 %	94.8 %	99.1 %	76.6 %	108.4 %	85.7 %	67.4 %	91.6 %	91.6 %

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 AUM: MNOK 14 913 at year-end| Float increasing

Bonds Equities Float

10

Investment performance FY: Gain of MNOK 501 or 3.4%

• 2022 return on investment portfolio 3.4%, or MNOK 501¹

  • Equity portfolio 15.7%, or MNOK 368
  • Bond portfolio 1.4%, or MNOK 171
  • Put options MNOK -38

• Q4 return on investment portfolio 4.6%, or MNOK 663¹

  • Equity portfolio 20.3%, or MNOK 454
  • Bond portfolio 2.0%, or MNOK 244
  • Put options MNOK -35

Large change in bond portfolio yield Driven by rate increases and spread widening

Increased yield driven by

• Higher underlying rate, +2.8 %-points from YE21
• Higher market spreads, +122bps from YE21

Bond portfolio statistics Yield at 6.0 % | Interest duration increased to 2.5

• Duration increased to 2.5, from 0.4 at YE21
  • Steering interest rate risk from a capital perspective

• Slightly increased risk in portfolio during 2022

  • Bond portfolio's average rating at A-
  • HY portfolio totalling BNOK ≈ 4.1 vs. BNOK 3.5 at YE21
  • Credit duration increased to 2.2, from 1.3 at YE21

• Total realized loss ≈ MNOK 25, or 0.03% annually Q315-Q422¹

  • Well offset by trading/price gains

¹Credit losses excluding losses from rate changes that is included in P&L, but neutralized from a solvency perspective

Investment portfolio data² 31.12.22 31.12.21 30.09.22 Bonds Bond & cash eq. (MNOK)³ 12 249 12 003 12 218 Avg. ref. rate (NIBOR, STIBOR, etc.)⁴ 3.3% 0.5% 3.1% Avg. spread/risk premium (bps) 273 151 244 Yield⁴ 6.0% 2.0% 5.5% Duration⁴ 2.5 0.4 1.9 Credit duration 2.2 1.3 1.9 Avg. rating⁵ A- A- A-

²Including bank deposits

13

³Size excludes currency swaps

4 Including interest rate swaps effect

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

Protector bond portfolio return

HY bonds performance FY: HY return of 3.8 % |DNB Markets Nordic HY index return of -0.2%

• Volatile Nordic HY market in 2022 with DNB Nordic HY index at -0.2% in 2022, +1.3% in Q4
  • Norwegian HY DNB index +3.2%
  • Swedish HY DNB Index -5.1%

Equity portfolio statistics FY: Return of 15.7 % | CAGR of 18.8 % since inception Q4 2014

• Strong operational performance in portfolio companies
• Discount to estimated intrinsic value at 30%, increasing from 26 % Y/Y
  • Forward looking PE ≈ 10
• Increased number of companies in portfolio Y/Y
• Portfolio size MNOK 2 648.
  • Net increase of MNOK 300 in Q1
  • Net decrease of MNOK 170 in Q4
  • FY increase mainly due to valuation gains

15

		Investment portfolio data	31.12.22	31.12.21	30.09.22
		Portfolio size1	2 648	2 166	2 343
	Equities	Estimated intrinsic value discount	30%	26%	40%
		No. of companies	28	20	31

¹ Size excludes currency swaps and put options.

² Equity return excludes results from put options ³ HTD: History to date, from October 2014

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

Profit and Loss FY & Q4 2022

FY: Profit of MNOK 809, EPS at NOK 10.2

MNOK	FY 22	FY 21	Q4 22	Q4 21
Gross premiums written	7 098	5 951	1 275	786
Earned premiums, net of reinsurance	5 715	4 921	1 528	1 269
Claims incurred, net of reinsurance	(4 534)	(3 810)	(1 243)	(1 027)
Sales cost	(387)	(362)	(108)	(ਰਵ)
Administration cost	(263)	(257)	(75)	(67)
Commission from reinsurer	102	131	25	27
Other insurance related income/expenses	(33)	(29)	(18)	(5)
Technical result	600	594	109	101
Other income/costs	(65)	(56)	(21)	(15)
Net financial income	477	878	631	220
Profit before tax	1 012	1 416	719	306
Tax	(167)	(252)	(97)	(42)
Discontinued operations	(3)	67	14	(0)
Net comprehensive income	(33)	(28)	(24)	(25)
Profit for the period	809	1 204	613	239
Claims ratio, net of reinsurance	79.3 %	77.4 %	81.4 %	80.9 %
Expense ratio, net of reinsurance	9.6 %	9.9 %	10.3 %	10.7 %
Combined ratio, net of reinsurance	88.9 %	87.3 %	91.6 %	91.6 %
Gross claims ratio	79.3 %	77.8 %	82.9 %	85.6 %
Gross expense ratio	9.9 %	10.8 %	10.4 %	11.0 %
Gross combined ratio	89.2 %	88.5 %	93.3 %	96.6 %
Retention rate	87.4 %	85.6 %	87.0 %	86.4 %
Earnings per share	10.2	15.0	7.7	3.2

PROTECTOR insurance

Balance Sheet SCR ratio¹ at 195%

In millions	31.12.2022	31.12.2021
Financial assets	14 195	13 067
Derivatives	66	94
Bank deposits	199	300
Other assets	4 612	4 338
Discontinued operations	878	1 448
Total assets	19 949	19 246
Total equity	3 455	3 582
Subordinated loan capital	1 245	1 385
Total reserves	11 499	9 980
Derivatives	55	26
Other liabilities	3 192	3 440
Discontinued operations	514	834
Total equity and liabilities	19 949	19 246

*Numbers may not add up due to rounding

• Increase in own funds driven by positive technical and investment result
• Own funds reduced due to proposed dividend
• Increased solvency capital requirement:
  • Slightly increased risk profile in investments portfolio
  • Expected growth within insurance
  • Solvency-based reinsurance agreement not renewed from 1 Jan 2023

18

Solvency II SCR ratio at 195%

Composition of SCR:

• Net insurance risk 61%
• Net market risk 31%
• Other risks 8%

SCR composition

Eligible solvency capital:

19

• Guarantee provision and proposed dividend subtracted from own funds

Eligible own funds

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

• Following Q4 2022 the Board has resolved to distribute a special dividend of MNOK 494.3, corresponding to NOK 6.00 per share.

20

• To be paid February 15th (ex. date February 8th)

• Prolonged changes in risk profile

market/macro turbulence.

• Solvency-based reinsurance agreement not renewed

insurance growth, risk-taking in investment portfolio, other attractive allocation opportunities and/or

opportunities, very low risk, no near-term allocation

opportunities and have good future visibility

• Stricter internal stress testing
• Near-future allocation opportunities/ turbulence

Long term financial targets Disciplined growth

¹ Return on Solvency Capital until 2016 when reflecting changes in accounting principles from Jan. 1st 2016 where Shareholder's Equity includes security provisions

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

	FY	04
Net combined ratio	88.9 %	91.6 %
• Gross written premium	MNOK 7 098 (+19 %)	MNOK 1 275 (+62 %)
· Investment return	MNOK 501 (3.4 %)	MNOK 663 (4.6 %)
· Profit for the period	MNOK 809	MNOK 613
• Earnings per share	NOK 10.2	NOK 7.7
• Solvency Capital Ratio	195%	195%

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