Protector Forsikring

Investor Presentation • Apr 23, 2025

Q1 2025 Interim results

Investor Presentation

Oslo, 24 April 2025

We will always be

The Challenger

We will deliver through unique relationships, best in class decision-making and cost effective solutions

Main targets

Cost and quality leadership Profitable growth Top 3

Values Credible Innovative/Open Bold Committed

Highlights Q1 2025

Combined ratio at 85.9% | Total investment return of 536 | EPS at 9.0

Combined Ratio

Gross premiums written

LCY GWP growth

Total investment return

Earnings per share

Q1 Other highlights

• Successfully placed a new Solvency II compliant Tier 2 bond of NOK 800m
• April 1st growth in UK at NOK 369m (14% in LCY)
• Portfolio transfer agreement signed for the Danish workers' compensation portfolio – subject to conditions, including approval by Norwegian and German financial regulators
  • Expected to be completed and booked in Q3 2025
• Close follow-up with regards to financial market turbulence in April
  • Well positioned to assess risks and opportunities
• The Board has decided to distribute a dividend of NOK 247m, corresponding to NOK 3.00 per share

Amounts in NOKm, Earnings per share (EPS) in NOK

Volume update

Q1: GWP growth at 19% | 17% in local currencies (LCY)

• Growth at 17% (LCY)
  • Renewal rate at 96%, supported by price increases to counter claims inflation
  • Effect from renewal date changes in the UK
    • £3.8m moved from Q1 to Q2 & Q4
• 1 April is the largest inception date in the UK
  • NOK 369m growth in GWP (14% in LCY), driven by Public sector and Housing
    • Some competition back, as expected

			NOKm, Gross written premiums
--	--	--	------------------------------

Segment	QT 25	Q1 24	Growth	NOK %	LCY%
UK	475	429	46	11%	6%
Sweden	1 620	1 499	121	8%	6%
Norway	1 580	1 349	231	17%	17%
Denmark	1 297	1 152	145	13%	10%
France	298		298
Protector	5 274	4 430	842	19 %/	17 %

Claims update

Q1: Loss ratio, net of reinsurance at 75.4% | Large losses of NOK 101m (3.1%) | Run-off gains of NOK 51m (1.6%)

• Property with largest positive effect, supported by lower-than-expected large losses
• Profitability actions still needed within motor
  • No change in risk appetite
• Large losses¹ NOK 101m or 3.1% (181 or 6.6%)
  • 4 large loss events
  • All property in the UK and France
• Run-off gains at 1.6% (losses at 1.8%)
  • Gains on property and losses on motor
  • Gains in SE, NO & the UK, losses in DK

Loss ratios
Segment	Q1 25	Q1 24	Q1 25	Q1 24
	Gross	Gross	Net	Net
UK	59%	61%	69%	70%
Sweden	74%	84%	74%	83%
Norway	80%	92%	81%	94%
Denmark	72%	84%	81%	88%
France	117%		125%
Protector	69.1%	76.4%	75.4%	80.6%
Whereof large loss %	3.1%	6.6%
Whereof run-off %			-1.6%	1.8%

Large losses and run-off

Best estimate reserving practice; run-off neutral over time

8

Nominal run-off (L-axis) Relative run-off (%)

* Lines in figures indicate large loss and run-off accumulations within outlined periods

Key metrics per segment

Quarterly volatility must be expected, especially by segment

	UK		Sweden*		Norway				Denmark				France				Protector
NOKm	Q1 25	Q1 24	Q1 25	Q1 24	Q1 25	Q1 24	Q1 25	Q1 24	Q1 25	Q1 24	Q1 25	Q1 24
Gross premium written	475	429	1 620	1 499	1 580	1 349	1 297	1 152	298		5 271	4 430
Insurance revenues	1 386	1 107	742	713	ete	534	439	382	72		3 255	2 735
Insurance service result	282	1 ਰਦ	86	29	73	-2	56	18	-38		458	240
Loss ratio, gross	58.8%	61.2%	73.6%	83.9%	79.6%	92.3%	71.9%	84.0%	117.2%		69.1%	76.4%
Net reinsurance ratio	10.6%	8.9%	0.4%	-0.9%	1.0%	1.4%	9.2%	3.9%	8.2%		6.2%	4.2%
Loss ratio, net of reinsurance	69.4%	70.2%	74.0%	83.1%	80.6%	93.8%	81.1%	87.9%	125.4%		75.4%	80.6%
Cost ratio	10.2%	12.1%	14.4%	12.8%	7.6%	6.7%	6.2%	7.4%	28.1%		10.5%	10.6%
Whereof commissions to brokers and agents	4.2%	5.0%	8.0%	7.3%	2.5%	1.9%	0.3%	0.0%	8.7%		4.3%	4.3%
Combined ratio	79.6%	82.3%	88.4%	95.9%	88.2%	100.5%	87.3%	95.3%	153.5%		85.9%	91.2%

Investments

Investment results and portfolio statistics

Q1: Return of NOK 577m (2.3%) | Bond portfolio yield at 5.1%, before cost of risk

• NOK 577m, or 2.3% gain
  • Equities: NOK 323m, or 8.0 %
  • Put options: NOK -12m
  • Bonds: NOK 267m, or 1.3 %
    • Interest rate swaps: NOK -1m
• Slightly reduced bond risk compared to YE24
  • HY portfolio totalling ≈ NOK 3.8bn vs. NOK 3.9bn at YE24
• Duration at 2.1, down from 2.4 YE24
  • Steering interest rate risk from solvency capital perspective
• Strong quarter for Nordic HY bonds
  • DNB Nordic HY index up 2.3%
• AUM up NOK 2.8bn (or 13%) since YE24

Q1 Investment result

	Investment portfolio statistics	31.03.25	31.03.24	31.12.24
	Size bond & cash eq. (NOKm) 3	20 778	17 908	18 365
	Avg. ref. rate (NIBOR, STIBOR, etc.)	3.8%	4.5%	3.8%
	Avg. spread/risk premium (bps)	128	183	149
Bonds2	Yield4	5.1%	5.8%	5.2%
	Duration4	2.1	2.3	2.4
	Credit duration	1.8	1.9	1.9
	Avg. rating5	A+	A	A+
Equities	Portfolio size (NOKm) 3	3 976	3 047	3 553
	Share of total	16.0 %	14.4%	16.1 %
	Estimated intrinsic value discount	37 %	35%	41 %
	No. of companies	35	36	35

¹ Put option included in total return and excluded in equity return

² Bank deposits included

³Size includes currency swaps

4 Interest rate swap effect included

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

Capital position

Income statement

Profit of NOK 740m (456) | EPS at NOK 9.0 (5.5)

NOKm	Q1 25	Q1 24	FY 24
Gross written premium	5 271	4 430	12 333
Insurance revenue	3 255	2 735	11 783
Insurance claims expenses	(2 250)	(2 090)	(8 606)
Insurance operating expenses	(343)	(290)	(1 253)
Insurance service result before reinsurance contracts held	662	356	1 924
Net result from reinsurance contracts held	(203)	(115)	(520)
Insurance service result	458	240	1 404
Net income from investments	577	350	1 059
Net insurance finance income or expenses	(41)	22	(213)
Other income/expenses	(33)	(39)	(198)
Profit/(loss) before tax	962	573	2 052
lax	(221)	(117)	(513)
Profit/(loss) for the period	740	456	1 539
l oss ratio	69.1%	76.4%	73.0%
Net reinsurance ratio	6.2%	4.2%	4.4%
Loss ratio, net of reinsurance	75.4%	80.6%	77.5%
Cost ratio	10.5%	10.6%	10.6 %
Combined ratio	85.9%	91.2%	88,1 %
Large losses, net of reinsurance	3.1%	6.6%	7.2 %
Run-off gains/losses, net of reinsurance	-1.6%	1.8%	-0.9 %
Change in risk adjustment, net of reinsurance	1.1%	1.7%	1.5 %
Discounting effect, net of reinsurance	-3.9%	-4.1%	-3.8 %

Statement of financial position

SCR ratio¹ at 222%

NOKm	31.03.2025	31.03.2024	31.12.2024
Financial assets	24 091	21 000	22 102
Derivatives	203	251	224
Bank deposits	193	187	456
Other assets	1989	1919	1 872
Total assets	27 285	23 357	24 654
Total equity	5 783	4 618	5 439
Subordinated loan capital	2 688	1 892	1 892
Insurance contract liabilities	17 130	15 398	15 768
Derivatives	195	71	33
Other liabilities	1 489	1 379	1 522
Total equity and liabilities	27 285	23 357	24 654

*Numbers may not add up due to rounding

• Profit for the quarter
• NOK 800m Tier 2 subordinated debt issued Feb 2025
  • Tier 2 capacity is linked to the total SCR of the company
• Dividend NOK 3 per share, NOK 247m in total
• Solvency capital requirement flat due to currency, reinsurance, and diversification effects

0

1.000

2.000

3.000

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9.000

Solvency II

SCR ratio at 222%

Composition of SCR:

• Net insurance risk 63%
• Net market risk 28%
• Other risks 9%

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2.000

3.000

4.000

5.000

6.000

7.000

8.000

0

1.000

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6.000

8.000

10.000

12.000

2.000

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SCR composition and development¹

Eligible solvency capital:

• Guarantee provision and proposed dividend subtracted from own funds

Eligible own funds composition and development1

0

2.000

4.000

6.000

8.000

10.000

12.000

'Trade War momentum'

Daily follow-up with action group following market turmoil – Assessing risks is core business

Risk and capital overview

1

2

3

• Updated stress test and capital availability
• Risk and exposure mapping
  • Insurance and investments

Opportunity overview (Bonds + equities)

• Review and update watchlist, including at what prices we have appetite
• Appetite mainly with highest quality bonds and equities with limited 'crisis' impact

Daily status meetings (CEO, CFO, CRO, Investments)

• Investment results updated daily (inc. stress test and capital availability)
• Investment allocation follow-up and discussion
  • What have we done
  • What do we plan for, and what is the appetite

Flexible shareholder distribution policy

Quarterly assessment of capital position vs. capital need

• Capital distributed over time 200% 150% SCR-ratio • Build solvency capital

• Following Q1 2025 the Board has decided to distribute a dividend of NOK 247m, corresponding to NOK 3.00 per share
  • To be paid 9 May (ex. date 30 April)

Solvency ratio zone assessment:

• Move towards 'Green' if we see e.g. profitable insurance growth, risk-taking in investment portfolio, other attractive allocation opportunities and/or market/macro turbulence.
• Move towards 'Pink' if we see e.g. limited growth opportunities, very low risk, no near-term allocation opportunities and have good future visibility

We will always be

The Challenger

We will deliver through unique relationships, best in class decision-making and cost effective solutions

Main targets

Cost and quality leadership Profitable growth Top 3

Values Credible Innovative/Open Bold Committed

Summary Q1 2025

Combined ratio at 85.9% | Total investment return of 536 | EPS at 9.0

Combined Ratio

Gross premiums written

LCY GWP growth

Total investment return

Earnings per share

Q1 Other highlights

• Successfully placed a new Solvency II compliant Tier 2 bond of NOK 800m
• April 1st growth in UK at NOK 369m (14% in LCY)
• Portfolio transfer agreement signed for the Danish workers' compensation portfolio – subject to conditions, including approval by Norwegian and German financial regulators
  • Expected to be completed and booked in Q3 2025
• Close follow-up with regards to financial market turbulence in April
  • Well positioned to assess risks and opportunities
• The Board has decided to distribute a dividend of NOK 247m, corresponding to NOK 3.00 per share

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.

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