A fast growing Nordic insurance company

A fast growing Nordic insurance company Q3 results 2014 19 th November

Highlights Q3 - Vardia ASA Continues to perform well, with all-time-high sales and strong growth Now has a total portfolio about NOK 1,100 million Still expects to become profitable towards the end of the year New significant agreements signed in Norway, Sweden and Denmark 2

Financial highlights Q3 Strong growth Gross revenue (MNOK) Gross revenue in Q3 was NOK 273.5 million, an increase of 101% A total of NOK 988.8 million in 2014 +101% 274 Gross written premiums of NOK 263.3 million, an increase of 110% A total of NOK 826.0 million in 2014 Earned premiums f.o.a. of NOK 56.6 million, an increase of 87% A total of NOK 153.9 million in 2014 136 Q3-13 Q3-14 Gross written premiums (MNOK) Net loss for Q3 was NOK 6.3 million Compared to a loss of NOK 14.4 million Q3 last year +110% 263 125 Q3-13 Q3-14 3

Loss ratio Improving trend continues 110% NOK million 105% 100% 95% 90% 85% 80% 75% 70% 3m 13 6m 13 9m 13 2013 3m 14 6m 14 9m 14 Net Loss 105,60% 102,00% 95,20% 93,60% 81,00% 78,90% 77,20% Gross Loss 95,40% 94,30% 90,10% 86,50% 83,90% 78,80% 79,70% Net loss is still improving according to plan Gross loss ratio affected by large claims in Norway and extraordinary cloudburst claims in Sweden New and improved deals with Crawford on claims handling Accumulated figures 4

Financial highlights Q3 Declining cost ratio The gross cost ratio was 22.9% compared to 30.4% in Q3 2013 The Company continues to make significant investments in organization and systems in order to facilitate growth Gross combined ratio of 104.3% compared to 115.2% The combined ratio is affected by the higher gross loss ratio this quarter compared with Q2 45% 40% 35% 30% 25% 20% 15% 130% 120% 110% 100% 90% 80% Gross cost ratio 39,2 % 32,8 % 28,6 % 22,9 % Q4 2013 Q1 2014 Q2 2014 Q3 2014 Gross combined ratio 118,40% 116,60% 102,90% 104,30% Q4 2013 Q1 2014 Q2 2014 Q3 2014 5

New Sales All-time-high sales New sales in Q3: Total 253.9 MNOK (144.3) Norway 157.4 MNOK (67.7) Sweden 90.4 MNOK (76.6) Denmark 6.2 MNOK (-) An average of NOK 84.6 (48.1) million per month in Q3 Total new sales of NOK 754.7 million the first nine months New sales in October was NOK 106.3 (66.4) million 6

Portfolio and market share 100% increase in one year 1200 Portfolio development 1 111 Vardia Norway has 1.2% market share in the Norwegian non-life insurance market 1000 800 864 921 Vardia Sweden has a market share of approximately 1.2% NOK million 600 400 501 572 Vardia Norway has a portfolio of NOK 650 million at the end of September 200 0 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Vardia Sweden had a portfolio of NOK 438 million at the end of September 7

Financial ambitions 2016 On track Turnover NOK 3 billion Renewal rate >85% Continued high sales and strong growth Renewal rate in third quarter is above 85% Gross Cost Ratio 20% Net Combined Ratio 80% Cost ratio is declining according to plan The Combined ratio is still too high but will decline as the portfolio continue to grow and becomes more mature Solvency Margin ratio >200% Return on equity 25% Solvency margin ratio per 30.09.14 was 186% Still expects to become profitable towards the end of the year 8

Operations

Vardia Concept - Advanced customer segmentation Access to 3,5 million customers Identifying the most valuable customers 80% pro-active sales White label product solutions Access to partners customer databases Marketing through well known brands Continuously building partnership portfolio Defined group Segmented sub-groups Underwriting filter Left with 60-70 % of the pre-defined group Targeting attractive customer groups Sub-segmentation to select most profitable customers Using risk/price algorithm to filter out customers that do not meet defined UW criteria Higher hit-rates Higher share of wallet Dedicated partner teams Predictable sales volumes Certified consultants Quality customers with lower claims ratio High average number of products (3+) per customer More loyal customers with higher renewal rate Improved combined ratio 10

Highlights Q3 Vardia Norway Gross Premiums written of NOK 152.7 million An increase of 248.2% compared to third quarter 2013 3 rd largest increase in portfolio from Q2-Q3 Average new sales at NOK 52.5 million (22.6) per month An increase of 132.3% compared to third quarter 2013 Measures initiated in Q3 Signed several new agents in the SME-segment Operational effect from use of Geodata during the flooding New cooperation with Crawford reduces costs significantly NOK thousands Q3 2014 Q3 2013 30.09.2014 Gross premiums written 152 698 43 853 480 415 Premiums earned f.o.a and other income. 33 162 10 054 95 207 Incurred claims and operating expenses f.o.a. -35 687-18 404-99 940 Technical result -2 525-8 350-4 733 New partnership agreements: 11

Highlights Q3 Vardia Sweden Gross Premiums written of NOK 108.4 million An increase of 33.1% compared to third quarter 2013 Average new sales at NOK 30.1 million (25.5) per month An increase of 18.0% compared to third quarter 2013 NOK thousands Q3 2014 Q3 2013 30.09.2014 Gross premiums written 108 436 81 463 342 272 Premiums earned f.o.a and other income. 27 656 18 577 75 299 Incurred claims and operating expenses f.o.a. -29 755-26 964-86 343 Technical result -2 099-8 388-11 045 Measures initiated in Q3 The quarter was affected by the cloudbursts that hit Sweden, while measures of profitability in 2013 and Q1 2014 have the desired effect on the portfolio Dynamic pricing module implemented to maximize the price elasticity New cooperation with Crawford reduces costs significantly New partnership agreements: 12

Highlights Q3 Vardia Denmark Gross Premiums written of NOK 2.2 million Total new sales at NOK 6.2 million in Q3 Increasing monthly sales during Q3 with app. 30 % per month Average employee seniority by the end of Q3: 4 months NOK thousands Q3 2014 Q3 2013 30.09.2014 Gross premiums written 2 179 0 3 352 Premiums earned f.o.a and other income. 154 0 189 Incurred claims and operating expenses f.o.a. -2 356 0-14 744 Technical result -2 202 0-14 555 Measures initiated in Q3 Improving operational processes Analyzing competitiveness of launched product program Further increasing outbound call-center capacity New partnership agreements: 13

Vardia Denmark Creating a new and strong player 4,00 New Sales Denmark 3,50 3,00 NOK million 2,50 2,00 1,50 1,00 0,50 0,00 Apr 14 May 14 June 14 July 14 Aug 14 Sep 14 Oct 14 14

Financial highlights

Results Q3 GWP more than doubled in one year NOK thousands Q3 2014 Q3 2013 30.09.2014 30.09.2013 31.12.2013 Gross revenue 273 544 136 402 988 787 511 993 717 776 Gross premiums written 263 313 125 316 826 039 397 049 571 729 Gross premiums earned 239 747 117 600 637 744 264 244 393 734 Premiums earned f.o.a. 56 600 30 307 153 888 66 515 98 058 Incurred claims f.o.a. -41 963-26 405-118 768-63 353-91 742 Operating expenses for own account -25 834-18 963-82 259-36 416-67 791 Other income/expenses 4 371-1 677 16 806-1 099 1 955 Technical result -6 827-16 738-30 333-34 353-59 520 Net financial income 2 869-554 5 364-119 404 Operating result -3 958-17 292-24 969-34 472-59 116 Changes in security reserves etc. -5 000-3 000-13 305-9 198-10 893 Profit/Loss before tax -8 958-20 292-38 274-43 670-70 009 Profit/Loss after tax -6 284-14 419-28 919-30 895-49 963 Significantly strong premium growth Other income is fee and commission income from agency business e.g. Vardia Agencies Private insurance accounted for 75% and commercial insurance of 25% Gross loss ratio 81,3 84,9 79,7 90,1 86,5 Gross cost ratio 22,9 30,4 27,7 28,3 31,9 Gross Combined ratio 104,3 115,2 107,4 118,4 118,4 Loss ratio f.o.a. 74,1 87,1 77,2 95,2 93,6 Cost ratio f.o.a. 45,6 62,6 53,5 54,7 69,1 Combined ratio f.o.a. 119,8 149,7 130,6 150,0 162,7 16

Balance sheet Q3 Strong Balance Sheet NOK millions 30.09.2014 30.09.2013 31.12.2013 Various Assets 191.3 66.2 139.9 Bank deposits 217.5 71.3 131.1 Reinsurers share of gross technical reserves 659.0 283.1 330.8 Receivables direct insurance and reinsurance 348.7 189.2 231.2 Other Assets 251.7 233.2 184.5 Total Assets 1,668.2 843.0 1,017.5 The Group s total assets is now NOK 1,668.2 million The increase is explained by the growth of the insurance portfolio Total Equity 391.2 210.9 249.1 Gross Premium Reserve 526.5 261.2 309.0 Gross claims reserve 334.8 122.0 143.7 Other technical provisions 30.0 15.0 16.7 Pension liabilities 6.2 2.9 4.2 Vardia pursues a conservative investment policy, with all liquid assets deposited in selected local banks at attractive deposit rates Financial liabilities 379.5 231.0 294.8 Total liabilities 1,277.0 632.1 768.3 Total equity and liabilities 1,668.2 843.0 1,017.4 17

Capital & Solvency II Well prepared Capitalization (Group) 30.09.2014 30.09.2013 31.12.2013 Solvency Capital (MNOK) 421.2 225.9 265.8 Primary Capital (MNOK) 181.2 124.1 101.4 Capital Ratio 34 % 38 % 28 % Consolidated Solvency Margin 186 % 217 % 156 % Capitalization (ASA) 30.09.2014 30.09.2013 31.12.2013 Capital Ratio 42 % 32 % 41 % Solvency Margin 256 % 198 % 260 % Vardia utilized 40% of the buffer capital according to the FSA stress test per Q3 The company has in the 3rd quarter continued with the preparations for the Pilar 3 reporting Vardia is well prepared for the future changes in the insurance market 18

Vardia Insurance Group ASA

Top 20 shareholders 17th November 2014 Sharholder s name No. of Shares Percent Skandinaviska Enskilda Banken (Nominee) 3 051 025 9,49 Avanza Bank AB (Nominee) 2 526 064 7,86 Aakvik Holding AS 1 674 733 5,21 BNP Paribas Sec (Nominee) 1 557 203 4,84 Nordnet Bank AB (Noiminee) 1 485 136 4,62 Canica AS 1 377 208 4,28 Norway Marine Insurance AS 1 363 342 4,24 BLS Holding AS 1 036 226 3,22 Busebakk AS 1 033 124 3,21 Nilvama AS 896 869 2,79 Vikna Eiendom AS 736 333 2,29 Imagine Capital AS 733 672 2,28 JP Morgan Chase Bank (Nominee) 666 666 2,07 BPR Invest AS 600 000 1,87 PLV Holding AS 550 810 1,71 Gyljandi AS 550 000 1,71 AHJ Holdings Ltd 500 000 1,56 Gaya AS 499 224 1,55 Hetlands Gecco Management AS 464 954 1,45 Høie, Karl 437 741 1,36 Others 10 403 805 32.39 Shareholdings: Managements direct and indirect shareholding totals 17.38% The Board of Directors has a direct and indirect shareholding of 10.55% Total holdings for Board and Managements is 27.93% Over 1.500 shareholders behind the Avanza nominee account A total of more than 2.500 shareholders Total 32 144 135 100.0 20

Operations across Scandinavia Vardia Insurance Group ASA Sortland Vardia Forsikring AS Vardia Försäkring AB Vardia Forsikringsagentur A/S Luleå Skellefteå Vardia Eksterne Kanaler AS Vardia Agencies AS Norway Sweden Denmark Total number of employees: Approximately 450 New office in Aalborg, Denmark Molde Hamar Oslo Porsgrunn Aalborg Sundsvall Copenhagen Stockholm 21

History 2009 2010 2011 2012 2013 2014 Scandinavian Insurance Group AS established by Børge Leknes, Rune Arneberg and Pål Lauvrak Scandinavian Insurance Group AS established as a sales agent Hired 50 employees in Sortland from 1881 Expanded management team, incl. Ole Erik Alnæs, Sigmund Romskoug and Ivar S. Williksen Licence from Norwegian FSA to operate as an insurance company Vardia Försäkring AB established in Stockholm Capital increases of MNOK 76 Started underwriting for own account in Sweden Vardia Försäkring AB was awarded Swedish non-life insurance company of the year Started underwriting for own account in Norway Capital increases of MNOK 83.5 Vardia Agencies AS established, Lloyds Binder Changes name to Vardia Insurance Group ASA Acquired Saga Forsikring AS Capital increases of MNOK 203.5 Started sales in Denmark Acquired Rein Forsikring AS Capital increases of MNOK 172.1 in connection with IPO Listing at Oslo Stock Exchange, 8 TH April 2014. 22

Experienced management Ivar S. Williksen - President & CEO 27 years of experience from the insurance industry Nemi ASA CEO/CUO Norway Marine Insurance MD/co-founder Gjensidige Forsikring Director Ivar K. Z. Pedersen - CFO 27 years of experience from the insurance industry Nemi ASA CEO/CFO Gjensidige Forsikring Director Carsten Müller - CEO Vardia DK 9 years of experience from the insurance industry If Head of Alliances Eniro Division Manager Rune O. Arneberg - Deputy CEO & COO 26 years of experience from the insurance industry Moderna Norge Project manager White Label Insurance CEO/founder Pål Lauvrak - CMO 13 years of experience from the insurance industry If Manager Concept development Børge Leknes - CEO Vardia NO 14 years of experience from the insurance industry Bodø Forsikringssenter Owner/founder If Project manager Sigmund Romskoug - Senior Vice President 36 years of experience from the insurance industry Nemi ASA Deputy CEO/Director Norway Marine Insurance Partner/co-founder Marsh Marine & Energy Director Andreas Önstorp - CEO Vardia SE 14 years of experience from the insurance industry Moderna Försäkringar AB Director private Länsförsäkringar Aleksander Nordahl - IR / Com.Dir 7 years of experience from the communication sector Gambit HK Strategies Advisor E24 Norway Financial journalist Board Members Åge Korsvold - Chairman Former CEO Orkla ASA, CEO Kistefos AS and Storebrand ASA Karl Høie - Deputy Chairman Partner in Quarz + Co, A.T. Kearney and Booz Allen Line Sanderud Bakkevig - Member Partner & Chairman RAW performance AS, Former Storebrand ASA Nils Aakvik - Member CEO aakvik Holdning AS, Privat investor Nina Charlott Gullerud - Member Former Director at Cisco Systems Bjørn Mæhlum - Employee representative 23