Nova Q3 Report - 2020 : simplebooklet.com

Our Purpose Our Culture TO PROTECT THE UNIQUE LIFESTYLES OF EACH OF OUR MEMBERS BY EMPOWERING OUR PEOPLE TO PROVIDE SOLUTIONS THAT ARE CREATIVE TRANSPARENT AND MEMBER CENTRIC Our Values 1 2 INTEGRITY We are open honest and ethical We hold authenticity and transparency in the highest regard 4 EMPOWERMENT We have the autonomy to find solutions that benefit our members We have the liberty to create our worklife harmony RESPECT We treat others the way they want to be treated We show empathy for others by listening and keeping an open mind 5 COURAGE 3 We believe it takes courage to lead We respond adapt and embrace the changing world in which we operate 1 We will be fanatically committed to our Purpose and Metrics which will in turn earn us member loyalty and trust 2 High performance comes from sharing information not hoarding it It is about being open with our discussions 3 We will trust ourselves and each other by three simple words Use good judgment 4 Fighting for simplicity takes courage and commitment to cut out complexity 5 Life is short so it should be fulfilling and fun Work is a big part of life so it should be fulfilling and fun WheneverWhereverWhatever SERVICE We lead and act with a member first mind set We re accountable to our members partners and to each other COMMUNITY 6 We value and actively support the communities in which we operate We have deep roots in tradition and will continue to create our legacy of care 5

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CEO Thoughts On the heels of our Q2 Engagement results all our Teams have demonstrated their dedication to further immersing themselves in Our Purpose Our Values and Our Culture They are committed to applying our new OKR goal setting approach to align those efforts with our Strategic Direction It is truly amazing to see this positive momentum build and thrive knowing it is a result of the foundational work completed in the preceding year and a half While some outsiders may think this is too good to last our Leadership is confident that we are on the right path We stay mindful that we are playing the Infinite game There is no winning or losing There is just being ahead or behind I m happy to state that we have moved the dial in all four of our strategic objectives to further advance our Ultimate Strategic Goal We will provide our members substantially more value than the competition while operating pro tably enabling us to give back to our communities To continue our success we will implement Simon Sinek s Infinite Game rule 4 Existential Flexibility It is critical that we continuously scan the business horizon in order to make profound strategic shifts when necessary to better advance our cause The temptation to play it safe as we approach uncharted territory is a trap set by the Finite Game mindset This is something we have all experienced at one time or other at Nova Mutual and elsewhere In the past times of adversity or significant change may have driven us to react by reverting to a safe position we now know we can unleash the potential of Simon Sinek s 5th rule of the Infinite Game Courage to Lead This applies not only to Leadership but to all Nova Team Members and our Board of Directors We do not have to be in charge to lead We simply need to be self aware of situations that may require us to step up and do the right thing It certainly isn t the easy road and it takes a team of like minded individuals to support each other during these situations There have been plenty of changes at Nova Mutual during this Transformation Year and it is safe to say there will always be change on the horizon It is our duty to embrace such adversity head on with courage in order to further advance our company purpose I m happy to share the content of this report with you to provide you with insight as to how we are doing as a company I am here for you if you have any questions so please do not hesitate to contact me Thank you 7

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Strategic Direction 2020 2022 WE WILL PROVIDE OUR MEMBERS SUBSTANTIALLY MORE VALUE THAN THE COMPETITION WHILE OPERATING PROFITABLY ENABLING US TO GIVE BACK TO OUR COMMUNITIES This section will be a reminder as to the foundation of our strategic focus Building upon the research of McKinsey s Strategy Beyond the Hockey Stick we are adopting the theme of strategy is about playing the odds Not every decision is going to result in a win but companies that increase their batting average so to speak are more likely to succeed Strategy is probabilistic not deterministic Their study revealed that insurers can take concrete evidence backed actions to move them in the right direction and cumulatively improve their odds of long term success These purposeful concrete and evidence backed actions are referred to as Bold Moves Their study found that insurers who did the following dramatically improved their odds of reaching the top quintile of economic pro t over a ten year period Dynamically shift resources between businesses Reinvest a substantial share of capital in organic growth opportunities Pursue thematic and programmatic M A Enhance underwriting margins Make game changing function improvements in productivity The bold moves we will undertake in parallel will give us an opportunity to move into the top quintile of the Power Curve and substantially increase the amount of value creation OKR 1 Attract and Retain Top Talent EMILY GIBSON Brand Ambassador Starting with us right at the beginning of Q3 Emily has proven herself to be an effective and essential member of Team Brand in her short time with us Somehow we convinced Emily to leave the beauty of working in wine country and jump onto Teams with the rest of our lot Emily has spent the past four years working at Chateau des Charmes in St Davids as the Director of Guest Experience From building their wine club and website to coordinating events and conducting tours and tastings Emily was dedicated to creating memories and building positive brand equity with each experience and interaction Emily s role will help ensure that we are providing our Members with substantially more value than the competition KEVIN SMITH Loss Prevention Specialist Kevin is an accomplished 309A Journeyman Electrician and we are delighted he has chosen Nova Mutual as his new home to take our Loss Prevention team to the next level Kevin s prior experience in the mutual world will have him integrated into our team relatively quickly Loss Prevention is part of the enhanced services we offer our Members and is a critical component of what makes our business successful SHANE DREVER Digital Media Specialist Brand is thrilled to welcome Shane Drever to Nova as our Digital Media Specialist We have been fortunate enough to work with Shane as an outside contractor for a few months and have been wow ed by his skill insight and passion for crafting the visual assets that support our Brand Shane is off to a running start and is an essential part of how we communicate with the world By prioritizing our look and feel we will continue to set ourselves apart from our peers and ensure that our core messaging is relayed effectively 9

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OKR 1 Attract and Retain Top Talent OKR 1 Attract and Retain Top Talent LEADERSHIP BRAND is being explored for the remainder of 2020 There were plenty of Change Management to DIRECTOR RECRUITMENT WEBPAGE address and the return to this communication vehicle was timely Our website had been updated to better reflect our Director Recruitment activities Our call to action has been prominently OPERATIONS displayed on our Home page as Join our Board When redirected the actual page We have introduced Nova Mutual s own provides all details for anyone contemplating Innovation area to operate as a shared applying to be a Director The Position service in Operations For now Jennifer Summary link is a very professional Morrison Project Leader and Richard output that Nova Mutual can very Gelbard Director of Products Services extremely proud of will be the two permanent members of that team Jennifer will lead all activities leveraging the Design Thinking approach to provide input that Richard can work with to develop products and services in keeping with our members needs IT VIRTUAL BACON SESSION In following up with our Engagement Survey results reported in Q2 we returned to conducting our Bacon Breakfast Sessions This session did not satisfy our physical appetites as they were virtual however our mental appetites were well looked after Employees enjoyed the opportunity to meet as an entire group and celebrate our successes year to date as well as hearing what Dianna Loucks has planned to retire at the end of 2020 This role of System Administrator will not be replaced as it currently stands Review of the actual needs going forward was assessed and determined that the new role will be different and fall under OPERATIONS The new role description ad recruitment efforts will be conducted in Q4 LINKEDIN PRESENCE Brand continues to develop strategies for our individual platforms LinkedIn aka Facebook with a Tie is quickly becoming a place for Nova to share intel on our company culture strategies and approach to business Q3 As Phase II Phase III had us all less housebound we wanted to optimize our Team Building time into something that met the ever changing challenges of remote work AND family life for our Team notabookclub is a monthly Team Building event booked from August through December of 2020 In Q3 we hosted a wine tasting event in partnership with Burning In an effort to build our audience and Kiln that saw each staff member taking engagement and a clever preamble to our own Podcast Launch we hosted our first ever home a bottle of pinot grigio and cabernet franc to taste together apart LinkedIn only contest Pods4Pods LinkedIn followers have increased 187 this quarter Largely due to the contest but also due to the number of job postings that have been available during Q3 As a remote first team we will continue to adapt and find fresh and meaningful ways to bring our team together even though we may not be able to get together physically NOTABOOKCLUB We had WellnessWednesdays in Q2 which morphed into notabookclub for 11

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OKR 2 Increase Profitability OKR 3 Enhance Member Broker Experience OPERATIONS PROFARMS PROGRAM BRAND On the heels of the soft launch in Q2 the installation of the Prev Tech monitoring system has been installed at Schuyler Farms As our flagship member we will be monitoring the actual experience this system provides in further rolling this out to other brokers and members OUR COMMUNITY INVOLVEMENTWEBPAGE LAUNCH AGENCY The Agents had one main OKR for Q3 which came from a review of their current book Much of that book over the years in the previous management revealed that Insurance to Value limits were severely low The OKR was to focus on every renewal to be reviewed and require the risk to have proper ITV limits in order for the renewal to be processed The results of such efforts are reflected in the financial results later in this report Giving back to our Community is a key component to our Strategic Direction and so we felt that this part of our identity deserved a proper platform and place to live on our website right alongside our products and services We are proud to have launched Our Community Involvement webpage this summer The page is a demonstration of our ongoing commitment to providing real support to our community partners beyond the giant cheque presentation and acts as a resource to our audiences looking to learn more about our company whether that s to make an informed choice as a consumer deciding to apply to our team or our Board or even prospective Broker partners looking to align with carriers who will provide more value to their clients Be sure to visit https www novamutual com our community involvement to view videos read our Where Values Matter monthly updates and read community focused blog posts 13

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OKR 3 Enhance Member Broker Experience BRAND OKR 3 Enhance Member Broker Experience MEMBER SNAPSHOTS EMPOWERYOUTH We were so grateful to be afforded the opportunity to take the Farm Mutual Re COVID 19 response dollars and create our most widelyrecognized social initiative of 2020 Six students were awarded scholarships 5K and one 15K top award based on video submissions where they expressed which Nova Mutual value they identified with the most This was another opportunity for us to demonstrate our beyond the giant cheque presentation mindset of giving back to the community Our audience was made aware of our Reinsurer s generosity and we built some serious brand equity by promoting Nova as a values based company We had a unique opportunity to create content that was directed at a much younger demographic We held a Zoom call with the winners and enjoyed the opportunity to engage them in conversation Top Award winner Matt Beard sums up the impact and innovative nature of this initiative nicely We continued to expand our Member Feature on social media and website via our blog with several Member Snapshots Three involved contests that helped to enhance Brand Awareness and engagement for the commercial Members that were featured as well as gave back to the community at the same time A very win win win scenario ensuring maximum value for all involved Member Shapshots encourages engagement with our brokers on a level not matched by our competitors Bekindtothefrontline supported our Member Beauty By Stacey that gave a front line worker a gift card towards spa services AboveandBeyond highlighted our Agency Member Homegrown Hideaway Our followers had the chance to nominate a deserving teacher in their lives to win a Glamping Getaway Coronacuts was fun and featured Vintage Hair Studio in Simcoe People submitted selfies of their coronacuts and we ended up giving four deserving people a free cut colour and style The winners were incredibly grateful and this helped to bring the spotlight to the efforts that VHS has made to be COVID safe so that clients could feel good about booking their haircuts again VIRTUAL ENGAGEMENT PROFESSIONAL Another vendor was added to our arsenal this Quarter enabling us to deliver high quality virtual engagement events with our many stakeholder groups Graeme Reed aka Graemazing is also our Podcast Producer More on that in Q4 though you can listen now at www novamutual podbean com data sourced from the results of our Public Engagement 15

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OKR 3 Enhance Member Broker Experience BRAND INSURANCE DOCUMENTATION INVENTORY AND OVERHAUL Brand and IT continue to collaborate on this project This quarter we explored documents that were primarily broker vendor facing Everything was rebranded and where applicable put into a digitized format fillable PDF Additionally all the current versions of these documents are now stored within Teams and kept up to date easily accessed by all team members These documents forms are now userfriendly on brand and organized well COMMUNICATION COMMUNICATION COMMUNICATION In an effort to add another vehicle for Nova s messaging we launched our Where Values Matter monthly communication Each month from July Dec 2020 will explore how Nova exemplifies our 6 core values one value featured each month This communication is sent out via email to over 700 Agency Members all of our Broker Partners and posted on our Social Channels We ve already had Members replying to these emails for various reasons many of those reasons totally unrelated to the original communication but this touchpoint gave them a place to reliably reach back out to our team We look forward to this being a living and breathing initiative that can grow and change over time U can keep up to date on this communication on our Community Webpage OKR 3 Enhance Member Broker Experience MEMBER ENGAGEMENT COFFEE WITH U SESSIONS SURVEY Your business will make more money if your customers are happier But how do you keep your customers happy How do you even know what your customers like or dislike about your product ASK THEM And ask them we did In Nova Mutual s first ever Member engagement sessions and survey Emily Gibson hosted four Zoom meetings along with each of our Nova Agents We asked invited Members some questions and we opened the floor for general discussion And we learned a LOT Members were incentivized to attend the session with a Tim Card hence the coffee part but more importantly a donation would be made to a charity of their choice after they attended the session In total various charities received a portion of 750 00 out of this program This feedback will be analyzed and used to inform initiatives to improve our Member experience and add more value SNEAK PEEK HIGHLIGHTS Early assessment tells us that of the survey participants 60 were NOT Nova Mutual Members We learned that 77 of respondents have seen the work that Nova Mutual is doing in the community with the EmpowerYOUTH program being the most well known Through inviting these Members to the sessions we ended up having more in depth conversations about their experiences with us outside of the proposed discussions Source https www forbes com sites theyec 2011 12 14 3 reasons toask for customer feedback 3c140b994700 17

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OKR 3 Enhance Member Broker Experience BROKER ENGAGEMENT VIRTUAL AND IN PERSON COVID may have made it more difficult to engage with Brokers in our traditional ways but it has opened the floodgates of new and exciting opportunities to connect and Nova is here to lead the way in highquality virtual engagement AND maximizing those valuable in person interactions when the opportunity is available NOVA S FIRST VIRTUAL BROKER APPRECIATION EVENT MAXIMIZING IN PERSON INTERACTIONS In lieu of our Spring Golf Tournament Nova still wanted to gather our Brokers together to thank them for their loyalty Paulo Miguel and our Underwriters have been visiting Brokers where appropriate delivering brand new Nova Mutual Broker Plaques and bringing boxes of Joy Bakery Goodies with them The event was a chance to share company updates reassure Brokers of our business continuity during COVID promote Nova ProFarms and share a message of resiliency Keynote Speaker and regional representative for the War Amps Chris Koch spoke to our group and as a thank you we donated 1000 to the War Amps The event was well received and many participants asked when our next one would be We have set up a tracking sheet in Teams where we can keep a log of these visitswhen they occurred who attended any special notes about the visit and feedback from the brokers This way our engagement knowledge is not limited to just one person at Nova but belongs to the entire team so that anyone who engages with the Brokers has the latest info on our last touchpoint with them For example feedback from these visits sparked the idea for our next Virtual Broker Event taking place on Nov 12th Stay tuned for those details OKR 3 Enhance Member Broker Experience INSURANCE INSTITUTE OF SOUTHWESTERN ONTARIO VIRTUAL EVENT MEET THE INDUSTRY 2020 by Design Purpose and Values and Richard spoke as our Director of Products and Services as well We were recommended by our Broker Partner Lisa Vercillo at Magenta Insurance in London to be a presenting vendor at the 2020 Meet the Industry Event held by the Insurance Instute of Southwestern Ontario This was the Institute s very first virtual event Nova Mutual hosted a breakout room for Commercial Lines Brokers and other industry professionals We talked about the importance of providing clients with an Enlightened Hospitality experience by definition means going the extra mile to care how you make the recipient of your service feel We had a chance to explain our Culture The event garnered over 75 registrants and feedback was overwhelmingly positive83 of participants said it was even better than they expected A follow up event is anticipated for early 2021 OTHER HOST COMPANIES INCLUDED Economical Insurance Gore Mutual Insurance Company Intact Insurance Pacific Marine Wawanesa Mutual Insurance Wynward Insurance Group SOCIAL PERFORMANCE YOU DON T HAVE TO BE BIG TO PLAY BIG Nova Mutual continues to outperform our Mutual Peers on social media and so we are setting our sights on a secondary peer group that includes competitors from much larger companies Some of you may know the late Stewart MacLean s Vinyl Cafe stories The little record shop after whom the series is named after has a motto we re not big we re small Even though Nova might not be the same in size we re still playing in the same field and in some cases outperforming even our biggest competitors We look forward to pushing Nova s digital presence to new heights alongside worthy rivals in our industry and beyond 19

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OKR 3 Enhance Member Broker Experience MUTUAL GROUP Competitor Average Nova Mutual Ayr Farmers Mutual Dumfries Mutual Erie Mutual Gore Mutual Halwell Mutual Ontario Mutuals Town Country Mutual 911 29 1 605 925 388 1 578 2 002 344 380 CURRENT FANS 762 8 86 66 4 23 18 0 1 27 FAN GROWTH 1 Competitor Average Nova Mutual Ayr Farmers Mutual 6 00 Dumfries Mutual Erie Mutual Gore Mutual Halwell Mutual Ontario Mutuals 4 22 Town Country Mutual 4 88 14 24 42 48 6 30 00 17 90 21 39 13 25 ENGAGEMENT PER POST Competitor Average Nova Mutual Aviva Intact Lemonade Co operators Travellers Wawanesa 207 250 1 605 1 052 963 28 545 41 535 25 074 92 992 CURRENT FANS 2 392 Competitor Average 14 67 8 86 Nova Mutual 66 Aviva 2 368 Intact 102 Lemonade Co operators 136 Travellers 445 Wawanesa 68 Competitor Average Nova Mutual Aviva Intact Lemonade Co operators Travellers Wawanesa 1 529 FAN GROWTH STOCK COMPANY GROUP Competitor Average Nova Mutual Ayr Farmers Mutual Dumfries Mutual Erie Mutual Gore Mutual Halwell Mutual Ontario Mutuals Town Country Mutual OKR 3 Enhance Member Broker Experience 50 6 42 48 35 39 6 15 4 33 33 47 41 94 95 30 43 ENGAGEMENT PER POST 21

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OKR 4 Optimize Capital Support Scalability Financial Results Q3 2020 23 6 Plan POLICY AND CLAIMS ADMINISTRATION SOFTWARE IMPLEMENTATION The cNude Nude Solutions for Carriers project has progressed as planned In our Steering Committee meetings it was agreed that its delivery of the first iteration of the software would be delivered in November 2020 This time will give us a fundamentally more stable code set for our testing environment At that point we can begin our familiarization of the software The further plan is to receive bi weekly updates that can be tested in an Agile manner Insurance Product Delivery and Design MERGER CANDIDATES We have entered into discussions with a Mutual located northwest of London to have very high level talks about merger appetite Recent events involving the announced merger between Town Country Mutual and Hay Mutual took this CEO completely by surprise It has created a feeling that the current environment may have many Mutuals considering merger but choosing not to make it public Although it is difficult to verify this is in fact the case I am certain this will be a self fulfilling prophecy Either way our discussions are underway and I can confidently say it will be a slow process to build trust and a case for an amalgamation This CEO will be introducing this concept to their Board in November 2020 Financial Results Q3 2020 OVERVIEW The third quarter of 2020 was the second quarter under the new normal of COVID 19 Nova Mutual experienced a solid quarter given the circumstances as the fundamentals of the business continue to perform well during these unprecedented times Effective October 1st we are back to business with respect to NSF fees and representments That being said as Ontario enters Phase 2 of the COVID19 pandemic Nova Mutual will address any potential member financial hardships on a case by case basis 22 9 2020 19 1 21 2 16 8 Plan 20 2 2020 2019 2019 NET WRITTEN PREMIUM GROSS WRITTEN PREMIUM Up 20 from 2019 Down 3 from plan Up 20 from 2019 Down 5 from plan 18 7 14 7 Plan 17 8 2020 2019 PREMIUMS YTD premiums are up 20 versus the same period last year Although this is a significant increase year over year it is slightly below our expectations The increase is primarily in our specialty lines of businesses where there is a strong focus on growth YTD Agribusiness premiums are up 35 over last year In Q3 Agribusiness recorded seven large policies driving an increase of over 43 over last year Commercial premiums are up 27 over the prior year due in part to larger average policy sizes and the impact of the rate increase of 9 effective August 2019 Specialty lines accounted for 36 of premiums YTD versus 33 in the prior year NET PREMIUM EARNED Up 21 from 2019 Down 5 from plan 4 0 2020 0 0 2019 2 3 Plan UNDERWRITING PROFIT Up 4 0M from 2019 Up 6 3M from plan 23

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Financial Results Q3 2020 Other Information 4M CLAIMS 13 3 Plan 9 0 7 1 2019 2020 NET CLAIMS INCURRED Down 21 from 2019 Down 47 from plan There were 146 new claims reported in the quarter bringing the YTD total to 391 claims with an average claims cost of 12 571 down from the previous quarter YTD Claims count activity is down 30 from the same period last year due in part to COVID 19 and good weather In the quarter there were no new single incurred claims greater than 200K Of the total claims reported 62 of these are Auto related claims representing approximately 41 of all claims dollars 3 073 115 3M 2 568 016 2 064 620 2 626 537 2 168 410 2M 2 485 598 2 103 885 1 615 006 2 608 540 2 142 244 2 279 717 2 630 272 2 559 491 2 314 859 2 248 816 2 187 712 1 696 797 1M 0 2 580 741 2019 JAN FEB MAR APR MAY JUN 869 521 888 877 JUL 2020 AUG SEP 890 427 885 307 1 1M 1 007 519 1M 854 852 900K COMMISSIONS GENERAL EXPENSES 3 9 Plan 2 9 3 5 YTD commissions as a percentage of GWP of 14 7 is lower than anticipated partially due to a lower 2019 CPC payment compared to what was accrued for at year end coupled with a sales mix of business different from Plan YTD Plan and Prior Year average commission rates are 17 0 and 15 2 respectively TOTAL GWP BY MONTH 800K 850 604 768 859 695 584 828 180 700K 833 680 816 857 813 641 AUTO GWP BY MONTH 795 081 733 835 753 822 600K 2019 585 348 500K 400K 2020 517 967 JAN FEB MAR APR MAY JUN JUL AUG SEP 844 498 867 104 866 731 2020 2019 GENERAL EXPENSES Up 18 from 2019 Down 11 from plan General expenses of 3 5M are 418K below Plan of 3 9M primarily the result of lower personnel costs due to timing of new hires and changes in personnel lower conference costs resulting from the cancelation of the OMIA annual conference and not attending NAMIC conferences in person lower IT costs due to lower IBS maintenance fees and lower association fees Compared to the prior year general expenses are higher driven by the investment in talent and higher marketing costs resulting from increased community donations as part of COVID 19 1 1M 949 057 828 940 747 864 800K 814 182 673 928 539 547 607 295 500K 749 630 773 818 615 876 530 503 475 320 200K 874 305 741 856 615 329 RESIDENTIAL GWP BY MONTH JAN 2019 FEB MAR APR MAY JUN JUL 2020 AUG SEP 25

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Other Information Financial Results Q3 2020 800K 734 640 554 670 600K COMMERCIAL GWP BY MONTH 511 740 557 101 457 002 428 720 396 309 395 514 361 108 200K JAN FEB MAR 370 370 APR 463 787 527 371 400K 404 048 390 996 MAY 2019 JUN JUL 427 854 2020 AUG New Business significantly down overall for the quarter with almost 50 of the total coming from the Automobile side a line we are not actively pursuing growth Written Premium and Renewal business continued where they left off from Q2 performing really well all around with significant growth 511 581 441 342 DISTRIBUTION Q3 Agribusiness performed exceptionally well this quarter turning in positive numbers across the board 380 285 Agribusiness and Commercial accounted for 49 574k of the New Business booked for this quarter SEP 550K 500 541 482 135 424 437 450K 373 899 373 406 415 739 342 880 350K 343 666 409 210 317 908 346 459 327 818 150K 292 826 2019 JAN MAR APR MAY JUN JUL AUG 1 154 980 670 711 828 850 473 835 250K JAN FEB 636 866 709 503 549 247 559 320 MAR APR 2019 MAY New Business Renewals Automobile 8 11 3 0 8 7 30 148 81 0 68 40 13 21 5 0 15 11 Automobile 9 20 54 53 13 17 49 25 96 89 27 24 37 41 41 16 21 32 Written Premium 967 920 666 087 Written Premium JUN Commercial Agribusiness Garage Auto Residential 1 057 790 976 341 652 936 750K Line NET CLAIMS INCURRED BY MONTH 1 314 035 996 992 Renewals SEP 1 366 124 1 25M New Business Residential 1 730 401 1 75M Written Premium Garage Auto 238 528 2020 BROKER Q3 Line Agribusiness 260 691 219 838 FEB AGENT Q3 Commercial 330 008 250K 226 205 AGRIBUSINESS GWP BY MONTH JUL 796 077 New Business Renewals 7 40 11 Written Premium New Business Renewals 17 24 32 2020 AUG SEP 27

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Financial Results Q3 2020 Investments DISTRIBUTION YTD Automobile New Business is down 26 415K and Residential is also in the negative 15 132K The two lines Nova continues to focus on Agribusiness and Commercial are performing exceptionally well with positive results across the board Overall New Business is slightly in the red at 1 that s only 28K shy of last year s tally After 3 Quarters Agribusiness and Commercial are both showing strong numbers across the board accounting for over 50 1 of the NB 1 96M of the total 3 9M booked Agribusiness leads the way with an average policy premium of 5 887 with Commercial at 3045 AGENT YTD BROKER YTD Line Written Premium New Business Renewals Line Written Premium New Business Renewals Automobile 9 10 1 0 7 7 1 11 8 0 46 16 10 13 1 0 11 9 Automobile 16 28 46 186 16 23 29 12 106 0 11 0 34 35 32 0 21 30 Commercial Agribusiness Garage Auto Residential Commercial Agribusiness Garage Auto Residential Similar to Q2 2020 the third quarter started out strong then faded somewhat as the quarter progressed although still in positive territory Investment income for the quarter was 642K bringing the YTD total to 1 1M The markets and interest rates continue their volatile ways and Nova Mutual is not immune to this volatility Interest rates continue to slide and we see this as GIC s renew at less than 0 5 for a one year term The Bank of Canada s overnight lending rate remains at 0 25 to try and stimulate the economy as both the Federal Government the Province contemplates how to manage the risk of exposure and the economy during a second wave of COVID 19 In July 2020 Nova Mutual deployed 1 5M in excess cash to PH N for investment in accordance with the Statement of Investment Policy As of September 30 2020 the investment portfolio under management with PH N is 30 3M On September 30th Nova Mutual purchased 600K in bonds from Collectivfide Insurance Group This represents our final commitment of our 1 0M investment The bonds will pay 3 annually and have a maturity date of October 1 2035 INVESTMENT MIX Written Premium 7 New Business 16 Renewals 9 Written Premium 23 New Business 0 Other Renewals 30 0 Alternative Broker Global Assets Loans Equities 0 2 4 GIC s Canadian Bonds Equities 8 14 72 29

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Other Information Risk Management The following section presents our top 9 risks identified with the most severe potential impact In assessing the potential impact for each of the top risks the presence and effectiveness of risk mitigation activities are taken into consideration 1 Technology Failure Operational Risk No Changes 2 Catastrophes Insurance Risk No Changes 3 IT and Cyber Security risk Insurance Risk No Changes 4 Reserve Pricing Inadequacy Insurance Risk No Changes 5 Inability to Identify Contain Fraud Insurance Risk No Changes 6 Increased Competition Disruption Strategic Risk No Changes 7 Turbulence in Financial Markets Financial Risk No Changes 8 Losing Key Talent Operational Risk No Changes 9 Member Satisfaction Strategic Risk No Changes Enterprise Risk Management STRATEGIC RISK Reputation Distribution Government Regulation Competition Disruption INSURANCE RISK Catastrophe Reserving Underwriting Reinsurance OPERATIONAL RISK People Processes IT Infrastructure External Events FINANCIAL RISK Market Liquidity Credit Basis 33

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In Conclusion As we make the final turn our advancement on the track continues to be impressive With each day we are becoming more comfortable with our Purpose Values and Culture and like Secretariat it shows We love to compete and compete we shall We are not just running against our Mutual peers In fact we are challenging much bigger Insurance companies and will compete on a percentage level to demonstrate we too are worthy rivals In keeping with our Infinite Game mindset look for us to dare to compete in Q4 with high performance companies outside of the insurance industry that are experts in Customer experience on a whole different level Our Q4 looks wide open out in front and that s just the way we like it down the stretch See you at the finish line

Nova Q3 Report - 2020

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