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OUR MEMBERSOUR PEOPLEOUR COMMUNITIES2021 Q2 Leadership Report

Company Profile 3Our Purpose 4Our Values 4Our Culture 4CEO Thoughts 6Strategic Direction 2020-2022 8OKR #1 – Attract and Retain Top Talent 10OKR #2 – Increase Profitability 13OKR #3 – Enhance Member & Broker Experience 17OKR #4 – Optimize Capital & Support Scalability 25Financial Results Q2 2021 26Investments 31Other Information 32Enterprise Risk Management 36Risk Management 38Think Ahead. Think Nova. 52CONTENTS

3NET RISK RATIO 110.6%CLAIMS RATIO 58.7%GROSS RISK RATIO 128.4%COMBINED RATIO 101.0%ROI 4.3%EXPENSE RATIO 42.4%ROE 4.8%INVESTEMENTS $38.0MMCT 442%Mar 31, 2021Company Profile as of June 30, 2021AGENTS 3EMPLOYEES 45BROKERS 20DISTRIBUTION SPLITBroker–86%Agent–14%Digital–0%Automobile–30%Commercial–24%Farm–19%Residential–27%LINE OF BUSINESS SPLITANNUAL GWP 10 YEAR GROWTH10 YR CAGR 10.2%$10$14.6$14.4$14.3$15.0$16.3$18.5$21.4$25.2$30.3$35.1$36.02012 2013 2014 2015 2016 2017 2018 2019 20202021PLAN2021FCST$15$20$25$30$35

INTEGRITYRESPECTCOURAGEHUMANITYSIMPLICITYPRACTICALTRUSTOur PurposeOur Values“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 CultureGUIDING PRINCIPLES1) Humanity above Bureaucracy2) Simplicity above Complexity3) Practical above Hypothetical4) Trust above All#WheneverWhereverWhateverINTEGRITYWe are open, honest and ethical. We hold authenticity and transparency in the highest regard.RESPECTWe treat others the way they want to be treated. We show empathy for others by listening and keeping an open mind.COURAGE We believe it takes courage to lead. We respond, adapt and embrace the changing world in which we operate.

5

CEO ThoughtsOur Servant Leadership model was introduced last quarter, it has been very interesting to witness how everyone is finding their way in implementing it during Q2. Our employees conceptually understand that we are doing things dierently; however, the true challenge is understanding what makes it dierent.Enter RESPONSIBILITY and ACCOUNTABILITY.Traditional Companies have used terms like Responsibility and Accountability interchangeably. Responsibility is typically dealt with by defining roles, job descriptions, establishing processes, and putting controls in place. Accountability is typically understood by the employee’s belief that they are only accountable to their superiors, if they think they are accountable at all. This is all well and good until reality sets in and adversity through business dealings comes knocking at their door. “I thought you had it” mentalities quickly develop which leads to employees or departments blaming each other when something is not identified in some company policy. Companies often try to solve these problems by redefining responsibilities—reorganizing what people do and restructuring the way work is done—only to find that changing where people sit in the organization will not necessarily change how they think and perform.Our Servant Leadership approach will attempt to instill INDIVIDUAL OWNERSHIP and TEAM ACCOUNTABILITY as driving factors to function as a high-performance organization. Individual Ownership will be our preferred description of Responsibility. These are the duties an employee is personally committing to as it pertains to their role. The individual is the sole owner of their role while being supported by team members. This means fully owning your responsibilities and looking to yourself first when something goes wrong. We have found that this isn’t something you can force on people—they must want it and accept it themselves. If it is not of any value

77for them, Nova Mutual may not be a good fit for them.Team Accountability at its core is simple – RESULTS MATTER. As Team members, we are all accountable for our strategic objectives, not just our individual ownership. It is not just doing our jobs but finding a way to do what needs to be done that contributes to our organization’s strategic direction. This is more of a mindset than a management process. It is a culture of teamwork and excellence.Ultimately, Mutual members, Brokers, and Vendors will benefit as they all want to work with problem solvers, not blame-shifters. Evidence of this is reflected in our current influx of new business as well as our 97% retention rates on existing members.Much of which is stated here comes directly from my involvement as a player and coach in high performance team sports. Each player is ultimately responsible for their own their own development which is supported by coaching sta and each player is accountable to their teammates in finding a way to contribute to the ultimate team goal. Whether it is a sports team or a business, those who commit to Ownership and Accountability typically enjoy the success of their full commitment. In either type of competition, the bond built by comradery of teammates is long lasting.

Strategic Direction 2020-2022The foundation of our strategic focus is 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, however, companies that increase their shots taken, 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.”WE WILL PROVIDE OUR MEMBERS SUBSTANTIALLY MORE VALUE THAN THE COMPETITION WHILE OPERATING PROFITABLY ENABLING US TO GIVE BACK TO OUR COMMUNITIES.

9 These purposeful, concrete and evidence-backed actions are referred to as Bold Moves. McKinsey’s study found that insurers who did the following dramatically improved their odds of reaching the top quintile of economic profit 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.We will undertake these Bold Moves in parallel to 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 TalentBECKY KNIFTON joined the Nova team as a Senior Personal Lines Underwriter. Becky comes to Nova with an extensive background in the insurance industry spending most of her career as a Personal Lines Underwriter, with the last 6 years spent working for Tradition Mutual. Becky’s outgoing personality and personal drive makes her a great addition to the team. Becky is a self proclaimed fair-weather friend of the outdoors, she enjoys spending quality time in nature with her family.MICHAELA VAN BELOIS is the perfect addition to join the IT team as a Business Analyst. Michaela comes to Nova with 14 years of experience working at Cognition +. Michaela began her career as a Client Support Specialist and has grown into a Business Analyst – Rules Specialist. Michaela brings a customer-focused approach, allowing her to build strong relationships, tackle any problems and embrace collaboration to solve business problems. KELLY JANTZI has a strong background in commercial business, renewals, endorsements and experience in Agri Business making her the perfect addition to the Commercial Lines team. Kelly comes to us from Heartland Mutual with her CIP and as a graduate of Conestoga College. Kelly is an expert at organization, she knows that the devil is in the details and enjoys building and fostering relationships with her Brokers. She is excited to be here on team Nova.

11OKR #1 – Attract and Retain Top TalentALL ABOARD!!! Employee Experience Director, Sue Rivard was able to experience the on-boarding process within Nova first-hand. Through her own personal on-boarding she identified gaps within the process. Through this, an opportunity to fine tune the process and put the needs of our team members first was uncovered. All Aboard was launched as a trial project, the concept was to bring seasoned Team members together with new Team members in an intimate virtual setting where they were free to explore the ins and outs of Nova. The session included rapid fire questions getting to know one another, a discussion with Gary speaking about the history of Nova’s culture and how it came to be. This session was a major success and is the beginning of a new and enhanced onboarding process within Nova.TEAM MEMBER SPOTLIGHT As Nova continues to grow, it is important to highlight all team members. Our ongoing goal is focusing on the talents that they have, not only within Nova but also as individuals. This quarter we took a new approach in our team member spotlight. Using the strengths of our team we leaned in to where they felt most comfortable. Everything from a social media post to a podcast and even a short video will be used based on the comfort level of the team members. Stay tuned on our social channels to meet everyone.

OKR #1 – Attract and Retain Top TalentENVIRONMENTAL MINDFULNESS Nova Mutual is proud to provide space for employees’ passions and to explore opportunities that align with our Company’s Purpose and Strategic Direction.As concern for the environment grows, several like-minded employees formed an Environmental Action Committee (EAC) to explore ideas and actions that could be adopted by Nova Mutal to make changes in both the workplace and at home. There is a growing concern that we should be mindful of how we can make certain choices that can contribute to our community’s environmental well-being.Over the past year, Nova Mutual instinctively considered such measures during our Jarvis renovations which implemented LED lighting and EnergyStar rated appliances. In implementing our #WheneverWhereverWhatever culture, driving to and from work became obsolete which in turn, reduced our company’s carbon footprint. During Q2, the committee organized #NovaDitchDay where employees were encouraged to close their laptops and go outside to clean up their communities. We expect this eort to grow as more employees collaborate to discover new, sustainable alternatives to elevate Nova Mutual as an environmentally mindful community partner.

13INFLATION INCREASE TO 7% An excellent example of the collaborative work taking place in OPS, team members from all departments worked together to determine and set a new inflation factor on residential, commercial, and agribusiness policies that takes eect on renewals and new business September 1st, 2021. This is our response to the rising costs of rebuilding/lumber/labour and is in alignment with other markets. Traditionally we have typically set inflation at around 3-5%. With 3-L Dwelling Coverages (seasonal/rentals/mobile & vacant dwellings) we introduced a 4% inflation increase as previously we did not inflate these types of risks. This increase represents over $1.1M of premium for renewal business between Sept 1, 2021-Aug 31, 2022$239K Agribusiness $849K Residential $27K CommercialREINSURANCE SAVINGS The Farm Team implemented a Facilitative Reinsurance Calculator improving eciencies in purchasing reinsurance on certain risks. This tool also contains another profitability-focused function by telling the Underwriters if the amount of reinsurance required actually exceeds our rates- aka- we’d be losing money on the risk. This allows us to adjust our rates to accommodate those added reinsurance costs. For example, one farm account alone represents a cost savings of $2000 as a result of using this tool.INSPECTIONS UPDATE With restrictions lifting and more vaccinated people in the population, our inspectors have faced fewer obstacles in scheduling and performing inspections of residential buildings. We are looking at ways to improve the member experience with our Loss Prevention Team in Q3 2021.OKR #2 – Increase Profitability

COMMERCIAL AUTO UPDATEThroughout the quarter, Underwriting and IT collaborated to develop the requirements to build a fully independent department of “Commercial Auto”. We determined that another Team Member would be imperative in launching this department and such we entered into recruitment for this role. The team was able to obtain a rudimentary quoting tool from OMIA that IT will leverage to build a more user-friendly and intuitive “NOVA” version of, which, as an example has turned 6 hours of work (preparing one quote) into a two-second click of a button. In addition to the reduction in labour time for our Underwriters, this significant time-savings also positively impacts our Broker ExperienceCLAIMS VENDORS AUTOMATIC PAYMENT Claims and Finance have collaborated to launch EFT (electronics funds transfer) payments for our vendor partners. Throughout Q3 they will work on switching as many vendors as possible to automatic payments. This represents significant time savings between both departments. As an example, today, 6 cheques would have gone to Enterprise Car Rental. All that trouble and administrative work is now down to 1 EFT deposit. Claims plans to try EFT with an AB member for their income replacement payments and will report back with how that goes so they can apply that feedback before doing it across the board for all members in claims. LARGEUNUSUAL LOSS CROSSFUNCTIONAL TEAM MEETINGS We have implemented a practice of holding a discussion following any large or unusual losses. These meetings include the underwriter, the claims adjuster assigned to the file, Rhonda, as our Broker Representative, and Gloria as a core team. Others are invited as needed. This is our opportunity to look at what happened, ask questions to see if we would have approached the risk any dierently, or to discuss new processes or practices that might be of benefit in the future. After discussing a recent commercial realty loss, it was decided that we would hold a separate conversation and do some research around loss ratios across in certain area codes in London. The team decided that we would update our ‘red zoned’ area codes with some new ones as part of a collective eort to tighten up our appetite in the commercial realty space. OKR #2 – Increase Profitability

15OVERDUE ACCOUNTS AGENCYFollowing up from what was reported to the Board in Q1 2021, the agents have continued to work on reducing the number of overdue accounts. The number of overdue accounts remains somewhat the same, however the outstanding dollars have reduced substantially.AGENCY POLICIES’ TOTAL INSURED VALUE TIV The agents continue to focus on updating the TIVs on their dwelling policies. So far, 169 policies have been reviewed and updated, representing just over $30,000 in earned premium. We will work to focus our agents on this project going forward given that based on the average increase per policy, and the total number of policies to be reviewed it is highly plausible that several more of our Members are under-insured.Total Premium Generated from Updating TIVs so far: $30, 223.00.OKR #2 – Increase ProfitabilityQuarter Balance Overdue # of Overdue Accts.Q2 2020 $76,229.79 109Q2 2021 $7,413.67 93# of policies increased from July 2020- June 2021Premium generated Total residential policies Total policies remaining to assess TIV Avg Increased Premium Per Policy after TIV Update Potential Earnings 169 $30,223 1641 1478 $163 $246,500

NEW BROKER APPOINTMENTS Kenny Insurance, a family owned and operated brokerage established in 1988 has locations in both London and St. Thomas. Kenny Insurance has been onboarded in preparation of our contract commencing on July 1st, 2021. Kenny Insurance values a strong organizational culture, business partnerships and superior customer service. They are looking for an insurer who creates an environment to strengthen both parties’ business and create continued success for all involved.Miller Insurance, originally founded in Kincardine, now serving 8 locations in mid-western Ontario, has joined our Broker force with a start date of September 1st. Miller is a community focused company and share similar values as Nova. Miller was looking for an Insurer who is a true partner that understands the challenges of rural Ontario as they increasingly rely on their Farm Mutual’s to be there for them. The OPS team is looking forward to onboarding Miller, this is a great match for Nova aligning with not only our values but our goals in growing the Commercial and Agri Business books.OKR #2 – Increase Profitability

17OKR #3 – Enhance Member & Broker ExperienceMEMBER EXPERIENCECLAIMS NPS UPDATE We last reported on the Claims NPS back in Q4 of 2020. Results are almost identical to that quarter. 26% survey response rate (slightly down from 30% in Q4 2020). NPS remains strong at 80. Keeping in mind our industry average in Canada based on Global Market Research Company, Ipsos’ 2020 data is a mere NPS of 8!We are confident that NOVA is providing our Members with substantially more value than the competition.Here’s the Ipsos article on the state of customer satisfaction from an insurance standpoint for further context:RONALD MCDONALD HOUSE CHARITIES  FOOTSTEPS FOR FAMILIES Nova Mutual was the proud sponsor of Footsteps for Families through RMHC. This virtual event happened over 7 weeks with 20 teams and 78 participants raising $80,000.00. All the funds raised support the house in dierent ways including, bedtime stories, family dinners, movie nights and special playtimes. Nova Mutual was the sponsor of Car Wash week, encouraging the teams to participate in a car wash activity with their families. All the teams and participants were families of Ronald McDonald house. Nova was able to sponsor the week and Uplift the participants through some fun swag geared toward the kids.READ ARTICLE

OKR #3 – Enhance Member & Broker ExperienceWORKING TOGETHER MATTERS WITH SPECTRUM We love recognizing and uplifting our community and policyholders in out-of-the-box ways. In the 2nd quarter we uplifted 2 of our policyholders who felt significant impact from the restrictions of the pandemic - but continued to show courage and integrity in their business.Teagan Fitch is the Owner of Spectrum Gymnastics in Simcoe, an all abilities gymnasium. Nikki and Leanne are the directors of Art with HEART Studio Inc. in Simcoe, an art studio built to inspire all minds and a previous recipient of Working Together Matters. Teagan has always dreamed of having a mural outside her gymnastics club to help uplift the surrounding neighborhood, we waived our NOVA wand and granted her that wish! Nova Mutual is the proud sponsor of this stunning mural designed by the wonderful team at Art With Heart Studios. The ocial reveal and signing of the Mural happened in June and the final piece of this Working Together Matters Project will commence in the early parts of Q3 with the reopening of the province and the final video telling the story of the Uplift mural.

19OKR #3 – Enhance Member & Broker ExperienceUPLIFT Episode 29 of Uplift allowed us to pump the breaks, slow down to speed up and look back at what we have accomplished on the podcast. Ending the quarter with episode 30 is a milestone for the Brand team. Starting out as an idea, Uplift has grown into a platform that the community is recognizing. With our numbers increasing on listeners and downloads Uplift continues to grow. We look forward to Q3 when we explore new topics and begin to dive into discussions around Culture, Business, and all things Nova.SHANNON’S PLASMA CELL MATES This Working Together Matters was a product of a team member idea that was brought forward based on a Nurse in our community that is battling Cancer. The ask, “How can we Help.” After a few ideas were tossed around the decision was made to give them a platform to speak about the awareness of Stem cell research. Shannon’s story quickly changed and so did the community that supported her. Nova was able to use episode 19 of Uplift to help support Shannon’s fight, the awareness came just in time for the Ride for the Registry. Team Members of Nova Mutual were some of many who lined the streets to welcome the Ride. Shannon’s Cell Mates has raised awareness and taken a life changing situation and turned it into an opportunity for the community to come together for a great cause.TOTAL DOWNLOADS1461 over 31 EpisodesUSER RETENTION100% in week 1MONTHLY DOWNLOADS+100% Feb (~100) to June (~200)

OKR #3 – Enhance Member & Broker ExperienceWEBSITE UPDATE This past quarter, we launched an almost-the-same-but-better AODA (Accessibility for Ontarians with Disabilities Act) compliant website. In the spirit of inclusivity, we took our existing site and polished, bued and repainted it to allow those of us with disabilities the ability to find what we need from Nova Mutual as easily as possible. You can now find a website where the text is clearer, colour themes have more contrast, and the layout is much more intuitive than what we previously had. The new site is a win for all of usSOCIAL MEDIA PERFORMANCE Nova Mutual has recalibrated our social media. Slowing down on our social channels has allowed the team to identify gaps in our social media and refocus on what truly Matters. Quality over Quantity!The statistics for our social channels reflect this and as such, it is no surprise that our numbers have declined. We are looking at this as a win! During this time of transition and refocus we work toward the future state of our social media and the numbers will be a true reflection of the content that Matters. LinkedIn has climbed to 1038 followers and has been identified as one of our opportunities for future growth. Plans are being put in place to enhance our presence on LinkedIn and use this as a tool to Uplift our brokers as well as an opportunity to share some insight into the culture at Nova.Instagram has jumped to 449 followers and our videos are performing well with an increase of 49.7% in views.Facebook on its own is changing and heading down a path that does not seem to be aligning with our Brand, for now, we will continue to update our Facebook page with content that is selected specifically for that platform. We will continue to follow the trends of our platforms and perhaps explore new areas.

21OKR #3 – Enhance Member & Broker ExperienceSenior 401 Entry-Level 247 Manager 71 Director 62 Chief X Ocer 51 Vice President 44 Partner 32 Owner 23 Unpaid 6Finance 181 Sales 166 Business Dev 147 Information Tech 64 Operations 58 Marketing 39 Support 30 Engineering 23 Consulting 20 Research 17 Administrative 15 Human Resources 15 Communications 15 Product Manager 15 Entrepreneurship 13 Legal 12LINKEDIN STATISTICSLinkedIn Pages | 3 of 7Top PostsReview your top posts published during the selected time period, based on the post’s lifetime performance.By Lifetime EngagementsNova Mutual In…Mon 6/28/2021 4:35 pm …Total Engagements544Reactions26Comments1Shares1Post Clicks (All) 516Nova Mutual In…Tue 4/6/2021 5:23 pm UTCTotal Engagements91Reactions35Comments4Shares2Post Clicks (All) 50Nova Mutual In…Thu 5/6/2021 1:43 pm UTCTotal Engagements66Reactions34Comments1Shares3Post Clicks (All) 28At Nova Mutual#WorkingTogetherMattersWe love recognizing andMeet Alison Varga,Commercial Manager at HWCInsurance in St.Thomas and"If you trust an individualenough that you hired them tojoin your organization, you7 itemsWhat PwC Learned fr…TOP POST AUDIENCE BY SENIORITY LEVELAUDIENCE BY JOB FUNCTIONSIMPRESSIONS18,313FOLLOWER GROWTH78TOTAL ENGAGEMENTS1,371ENGAGEMENT RATE+11%

OKR #3 – Enhance Member & Broker ExperienceMUTUAL GROUP  INSTAGRAM

23OKR #3 – Enhance Member & Broker ExperienceMUTUAL GROUP  FACEBOOK

OKR #3 – Enhance Member & Broker ExperienceBROKER EXPERIENCERIBO CREDITED WEBINARS CONTINUE Pam DeBoer, Continuing Education Director for Paul Davis Restoration joined us in Uplift Studios to present; Ethics for Insurance Professionals. Using case studies, participants engaged in opportunities to discuss ethical and non-ethical behavior, Pam had everyone thinking about their own ethical dilemmas and about the eectiveness of the Code of Ethics in the oce.This webinar SOLD OUT at 500 participants with 472 in attendance that day. The response was overwhelming, and the Brand team worked tirelessly behind the scenes to execute this webinar.LEVEL UP YOUR VIRTUAL EXPERIENCE Nova’s very own Brand Production Specialist, Graeme Reed presented a webinar that was open to everyone! With 82 registrants Graeme shared the in’s and out’s of how to bring your virtual presence to the next level. Graeme discussed topics such as, cost eective ways to enhance your space, the importance of lighting and a good background as well as how to speak and where to place yourself in the screen, his focus on having a plan and mapping that out prior to your event was a key take away for everyone in the audience. The webinar was a fan favourite and although not accredited through RIBO a wonderful opportunity to reach out to the Nova fans outside of the insurance industry.

25OKR #4 – Optimize Capital & Support ScalabilityNOVA MUTUAL PROPERTY  33 PARK ROAD SIMCOE We have approached Morison Insurance Brokers to advise of Nova Mutual’s intention of selling 33 Park Rd Simcoe. We provided Morison with the valuations of property value as well as rental value as reported in our Q1 report. Morison has come back to us with the preference of leasing 33 Park Rd. We have since engaged our lawyers – Madorin Snyder to draw up a lease agreement in keeping with the valuation. It will be based on a 5-year lease with an additional 5 years upon renewal. Nova Mutual will proceed with eorts to sell the building and give Morison the first right to purchase to match the oer of an identified buyer should that happen.Once we receive the lease from Madorin Snyder, we will execute accordingly and select a real estate agent to begin the selling process.As reported earlier, the leased property would need to be reclassified from “Own Use Property” to “Investment Property” at the time of a lease or sale. From an MCT perspective, Investment Properties carry and additional 10% capital charge from Own Use Property. There could be potential tax implications as well. Our plans to relocate our company servers has been re-scheduled for the end of July 2021.INSURANCE SYSTEM SOLUTION In working with our Insurance System provider and our two Mutual insurance partners, we have developed the criteria for the first milestone deliverable that is due on December 1, 2021. The deliverable will be the functional application architecture for Agri Business. Once this foundational milestone is reached, all stakeholders will evaluate and decide if the project continues. This roadmap and understanding of the base framework will help drive the requirements, development and enhancements needed to have a fully functional end to end system.

OVERVIEWThe first quarter of the year was solid. To characterize the second quarter, it would be less than stellar. That being said, it is not all bad news. From a top line (Premium) perspective Q2 was very good. Nova Mutual hit major milestones in the quarter by writing over $3.0 in each of the respective months. Forecasted premiums are now expected to reach $36M or 2.5% above Plan of $35.1M.For claims it was a tough quarter. More details are on page 28.General expenses continue to run below plan helping the bottom line.YTD Underwriting profit continues to be ahead of plan and investment performance is steady and positive.The YTD Combined Ratio is 101.0%.PREMIUMSYTD premiums are up 16% versus the prior year and are on Plan. Nova Mutual has written $2.7M in new business up 4% from the prior year. The increase in premium is primarily in our specialty lines of businesses where there is a strong focus on growth and retention. YTD Agribusiness and Commercial premiums are up over last year by 66% and 10% respectively. Specialty lines accounted for 43% of premiums YTD versus 38% in the prior year.No specific product price increases were implemented in the first half of the year however as mentioned earlier starting with the September 2021 renewals the inflation factors on home packages, seasonal and rented dwellings will increase from 4% to 7% because of significant price increases in building supplies due to the pandemic. This change will be reviewed in a years’ time.Financial Results Q2 2021GROSS WRITTEN PREMIUM Up 16% from 2020 On plan15.1202017.5Plan17.52021

27NET WRITTEN PREMIUM Up 13% from 2020 Down 3% from plan13.3202015.6Plan15.12021NET PREMIUM EARNED Up 15% from 2020 Down 2% from plan11.5202013.5Plan13.22021Financial Results Q2 2021YTD Total YTD Agent YTD Broker2020 2021 2020 2021 2020 2021Automobile23.1% 16.8% 27.3% -195.0% 22.1% 73.7%Commercial71.2% 39.6% -1.2% 8.9% 74.8% 41.5%Agribusiness125.6% 18.3% 13.0% -8.6% 148.5% 26.1%Garage Auto0.0% 0.0% -100.0% 0.0% 0.0% 0.0%Residential63.9% 15.6% 15.2% -48.5% 74.2% 29.9%Total62.9% 21.1% 18.6% -97.8% 70.9% 46.2%CLAIMS RATIOS  LOSS RATIOS1 BY LINE OF BUSINESS1Excludes Reinsurance, IBNR’s, Internal adjusting expenses, and allocated Expenses.

Financial Results Q2 2021NET CLAIMS INCURRED Up 60% from 2020 Down 7% from plan4.820208.2Plan7.72021CLAIMSThere were 175 new claims reported in the quarter with an average gross claim cost of $43.077. YTD Claims count activity is down 15% year over year due in part to COVID-19, fair weather, and a renewed focus on loss prevention. The higher cost per claim relative to Q1 2021 of $15,631 is a result of several fires in April 2021 and large barn (Hog) fire in June 2021.From a claims perspective the quarter was not so favourable. Gross incurred claims in Q2 2021 were $8.8M almost five times higher than the previous year. YTD gross incurred claims are $12.2M, four times higher than the previous year. Q2 saw several fires with two significantly over the reinsurance retention limit. Reinsurance recoveries on a YTD basis are now $4.5M.YTD large claims analysis (claims > $500K and excluding IBNR’s and Adjusting costs) provides some food for thought. There were four large claims during the first half of the year with gross claims incurred costs of $6.3M. They were all fires, 2 residential, 1 commercial and 1 farm. Of the four claims, 2 or 50% with a claims cost of $3.7M were from new business written in 2021. Compared to last year at this time, there was 1 residential fire just over retention from a policy with an inception year of 2008.When looking at total gross claims incurred in 2021, $4.0M or 36% of all gross claims incurred came from new business. In 2020 $1.7M or 40% of gross incurred claims came from new business where as in 2019 $0.2M or 3% or gross incurred claims are a result of new business. Further analysis will be done looking for trends and anomalies in our claims data.Included in the YTD results are increases in the IBNR’s of $600K on a Net basis. The YTD fully allocated Claims ratio of 59.3% is on Plan of 60.4%.

29GENERAL EXPENSES Up 15% from 2020 Down 21% from plan2.320203.4Plan2.72021COMMISSIONS & GENERAL EXPENSESYTD commissions as a percentage of GWP of 16.4% are higher than anticipated (15.8%) partially due to a higher 2020 CPC payment compared to what was accrued for at year end coupled with a sales mix of business dierent from Plan. In addition, in Q2 2021 due to a change in the CPC calculation eective for 2021, the CPC accrual has been updated to reflect this new calculation. The impact YTD is an increase of $188K for the first six months and is reflected in the YTD commissions. The expected full year CPC is estimated to be $500K at this time. The Prior Year average commission rate for Q2 YTD was 14.1%.YTD General expenses of $2.6M are $814K below Plan of $3.4M primarily the result of lower personnel costs due to timing, savings due to lower severance costs, lower conference costs as the OMIA conference was held virtually again in 2021, lower marketing costs in events due to COVID 19 and higher expense allocations to Claims. Partially osetting these favourable items is higher sta training costs from the Higher Power Academy and wellness work for sta.YTD Nova Mutual has hired a net new 7 FTE’s: 11 new hires, 1 return from maternity leave and 5 terminations/departures. Nova Mutual’s FTE current Team compliment is 45.The YTD expense ratio of 41.7% is better than the Plan of 45.9%.Financial Results Q2 2021UNDERWRITING PROFIT Down $2.2M from 2020 Up $0.8M from plan2.320200.8Plan0.12021

DISTRIBUTION  Q1Premiums sourced through the Agent channel and Broker channel are shown in the charts above. The agency channel continues to focus on working with members on ensuring the correct insured to value. In addition, a rebalancing of the agency portfolio between Nova’s three agents is taking place to ensure the correct focus, attention and service meets the member’s needs. Overall premiums from the agency channel are up 1% relative to the prior year with new business down 2% for the same period. Renewal premiums are up 1% which includes the current 4% inflation factor on residential properties.Premiums sourced through the Broker channel are up 18% from the prior year with new business up 4% YTD. Renewal premiums are performing very well, up 21% from the same period last year. Both Commercial and Agribusiness continue strong growth.Line Written Premium New Business RenewalsAutomobile-6% +1% -6%Commercial+2% -61% +11%Agribusiness+4% -56% +7%Garage Auto+0% +0% +0%Residential+9% +112% +5%+1% -2% +1%Line Written Premium New Business RenewalsAutomobile+6% -24% +13%Commercial+32% +12% +40%Agribusiness+39% +70% +31%Garage Auto-32% -62% -28%Residential+7% -21% +11%+18% +4% +21%AGENT Q2 YTD BROKER Q2 YTDWrittenPremium+1%NewBusiness2%Renewals+1%Financial Results Q2 2021WrittenPremium+18%NewBusiness+4%Renewals+21%

31MCT SCOREThe MCT (Minimum Capital Test) score is a regulatory measure of financial strength. This test compares the company’s capital against the risk profile of the organization. The regulatory minimum MCT score is set at 150% while the company’s internal target is set at 300%. As of June 30, 2021, it is estimated that the MCT score will be in the range of 408% to 412%. This is down from the Q1 2021 MCT score of 442% primarily due to higher premium liabilities from the growth of business and higher unpaid claims due to increased number of claims.InvestmentsYTD net investment income was $789K. The results are slightly better than Plan and significantly better than the prior year. Short term interest rates continue to be at all-time lows. The Bank of Canada’s overnight lending rate as of July 14th remains at 0.25%. The GIC portfolio continues to reinvest maturities however at much lower rates given the current interest rate environment. As at June 30, 2021, the market value of the investment under management with PH&N is $31.7M representing 83.5% of the total investment portfolio. The PH&N portfolio has performed well YTD generating net gains of $793K from Short term bonds, Low Volatility Canadian and Global Equities and the Canadian Core Real Estate fund partially oset by losses in High Yield Bonds. Broker loans are in good standingINVESTMENT MIXOther 0%Broker Loans3%Global Equities4%GIC’s6%Canadian Equities17%Bonds 63%Real Estate 7%

Other InformationTOTAL GWP BY MONTHAUTO GWP BY MONTHRESIDENTIAL GWP BY MONTH$2.0M$2.5M$3.0M$3.5M$4.0MJUNMAYAPRMARFEBJAN$2,168,410$2,064,620$2,568,016$2,435,012$2,341,058$2,991,488$2,608,540$2,262,537$3,072,115$3,024,032 $3,021,925$3,662,6042020 2021$0.6M$0.8M$1.0M$1.2MJUNMAYAPRMARFEBJAN$759,881$715,932$854,852$969,788$869,521$888,877$695,584$768,859$955,135$1,007,519$914,842$966,2082020 2021$0.4M$0.6M$0.8M$1.0M$1.2MJUNMAYAPRMARFEBJAN$615,329$539,547$949,057$828,940$747,864$673,928$614,074$692,874$1,007240$854,190$799,793$713,1332020 2021

33$0$0.5M$1.0M$1.5M$2.0M$2.5MJUNMAYAPRMARFEBJAN$666,087$473,835$1,154,980$976,341$559,320$996,992$548,493$713,070$1,569,746$1,198,753$2,069,333$1,629,9962020 2021Other InformationCOMMERCIAL GWP BY MONTHAGRIBUSINESS GWP BY MONTHNET CLAIMS INCURRED BY MONTH$0.4M$0.6M$0.8M$1.0M$1.2MJUNMAYAPRMARFEBJAN$411,342$511,581$734,640$544,670$428,720$557,101$654,274$501,815$1,009,893$804,878576,408$666,0542020 2021$0.3M$0.4M$0.5M$0.6M$0.7M$0.8MJUNMAYAPRMARFEBJAN$342,880$317,908$482,135$424,437$373,406$500,541$450,732$386,488$657,166$678,044 $679,263$488,0152020 2021

Other Information

35Other Information

Enterprise Risk ManagementSTRATEGIC RISK• Reputation• Distribution• Government & Regulation• Competition & DisruptionINSURANCE RISK• Catastrophe• Reserving• Underwriting• ReinsuranceOPERATIONAL RISK• People• Processes• IT & Infrastructure• External EventsFINANCIAL RISK• Market• Liquidity• Credit• BasisOther Information

37Enterprise Risk ManagementERM & ORSA DEVELOPMENTNova Mutual Insurance Company engaged BDO Canada LLP’s Risk Advisory Services team to review the integrity, accuracy, and appropriateness of the Company’s Enterprise Risk Management (ERM) and Own Risk and Solvency Assessment (ORSA) practices, processes, and reports, as well as assess the appropriateness of the processes for risk management governance by the Board of Directors.As a result, a roadmap for implementation has been recommended. The roadmap identifies actions into Short-Term, Medium-Term and Long-Term categories. We will provide updates on our progress in this section in future reports.ROADMAP FOR IMPLEMENTATION For each of the gaps and areas for improvement identified, BDO has outlined a roadmap for implementation, which spans across the following time periods: Short-term Nova Mutual is encouraged to action the area within 3 months time. Medium-term It is suggested Nova Mutual action the area within 6 months time. Long-term It is suggested Nova Mutual action the area within 12 months time.SHORTTERM MEDIUMTERM LONGTERM1 Roles & responsibilities 2 Risk management training 3 Risk appetite & risk tolerance 4 Own risk & solvency assessment 5 Risk identification & assessment 6 Risk prioritization & response 7 ERM guiding principles 8 ERM policy

Risk Management The following section presents our top 10 risks captured in our Risk Register. They are ranked in order of priority. In assessing the potential impact for each of the top risks, the presence and eectiveness of risk mitigation activities are taken into consideration.Priority Risk # Risk Title Risk Category Risk Type1 42 High Broker Consolidation Strategic Distribution2 18 Cyber Security Breach Operational External Event3 25 Technology Failure-Production Operational IT & Infrastructure4 38 Member Satisfaction Strategic Reputation5 44 Threat to Market Share Strategic Competition & Disruption6 10 Multiple Major Fires Insurance Catastrophe7 6 Extreme Adverse Climate Insurance Catastrophe8 12 Reserve & Pricing Inadequacy Insurance Underwriting-Reserving9 3 Turbulence in Financial Markets Financial Market10 51 Mutual Automobile Rate Filing Operational External Event

39Risk Management #42HIGH BROKER CONSOLIDATION Strategic Risk | Distribution | CEOBroker merger and acquisition activity remains aggressively active and presents an unfavourable concentration of insurable risk to Nova Mutual. POTENTIAL IMPACT HOW WE MANAGE THIS RISKIf concentration of business of a single Nova Broker places business with us that represents more than 20% of our entire book, we are at risk of losing a substan-tial amount our portfolio if the broker is sold or cancels their contract with us.We currently have two brokers who have purchased other Nova Mutual brokers and now represents 25% each of our total book of business. We are mitigating on two fronts. We have and will continue to nurture our good business relation-ship AND we are looking to expand our broker channel in dierent geographical areas in Ontario to oset our risk of con-solidation. We are targeting to appoint 4 Brokers in 2021 and at least one more in 2022.

Risk Management #18CYBER SECURITY BREACH Operational Risk | External Event | CIOInformation technology and cyber security risks continue to be key risks for many companies. Criminal organizations, hackers, and other external actors have become more active and better equipped to attack even robust systems and networks. Our dependency on technology, network, telephony, and critical applications makes our ability to operate and our profitability vulnerable to business interruptions, service disruptions, theft of intellectual property and confidential information, litigation, and reputational damage. The volume and sophistication of cyber-attacks continue to increase. These attacks may include targeted attacks on systems and applications, introduction of malicious software, denial of service attacks, and phishing attacks which could result in the fraudulent use or theft of data, and may involve attempts to fraudulently induce em-ployees, customers, or third-party service providers to disclose sensitive information in order to gain access to the Company’s data. Distributed Denial of Service (DDos) and Ransomware attacks continue to increase in frequency and severity. These activ-ities are designed to disrupt the operations of an organization and/or to benefit the attacker financially. We may be unable to prevent cyber-attacks that result in system disruption or a breach of confidential information, whether personal or corporate in nature. Third party service providers and other suppliers may also be the subject of successful cyber-attacks leading to a material impact on our systems or the theft of confidential information.

41Risk Management POTENTIAL IMPACT HOW WE MANAGE THIS RISKDespite our commitment to information and cyber security, we may not be able to fully mitigate all risks associated with the increased sophistication and volume in the threat landscape. As such, we may be the subject to a cyber-attack resulting in system unavailability, data corruption or deletion, or the disclosure of confi-dential or personal information. Massive denial of service attacks and system intrusion attempts could compromise our ability to operate, or we may be unable to safeguard personal and confidential information from public disclosure. These events and attacks may lead to wide ranging consequences including fi-nancial loss, which also includes lost pro-ductivity, remediation costs, and costs associated with potential legal action; regulatory action, which may include regulatory fines and/or increased scrutiny by government; and reputational damage such as lost consumer confidence and lower customer retention.We continuously upgrade our applica-tions to better protect our systems and information. We regularly monitor exter-nal trends in cyber security to ensure we can rapidly mitigate known vulnerabili-ties.Nova Mutual will continue to provide ongoing cyber security training to Nova Mutual team members. Nova Mutual will also continue per-forming penetration tests to discover new assets that have been added to our infrastructure and build out next steps to protect Nova Mutual assets. Additionally, we will insure ourselves in the event of a data loss event.

#25TECHNOLOGY FAILURE  PRODUCTION Operational Risk | IT & Infrastructure | CIONova Mutual’s current hardware stack is over 6 years old and is showing signs of fail-ure. The technology that the team members use day to day (laptops, headsets) are also reaching end of life, and are starting to cause problems and are being replaced more rapidly.POTENTIAL IMPACT HOW WE MANAGE THIS RISKTechnology is the core that allows the team members to do their day-to-day jobs (check emails, log in, print, send/re-ceive information, communicate etc.).If there are significant outages either at their local station or in the core in-frastructure, that could lead to hourly / daily losses and the inability for team members to accomplish their tasks.We are building out a rolling 3–5-year technology refresh program for both local workstations and the core hardware stack.This will allow the IT department to plan anticipated growth in both company headcount and premium growth to sup-port with minimal reactiveness.As with all technology, sometimes it may not make it to the anticipated end of life, however that will be accommodated with a portion of the budget for edge cases that can arise.The IT department has also built out a plan to have a co-location to store system critical applications and hardware and have built out a N+1 redundancy for backups in case of a fatal outage or networking catastrophe.Risk Management

43#38MEMBER SATISFACTION Strategic Risk | Reputation | CBOIn today’s current business environment, member growth and retention of business are constantly at risk through fierce competition.POTENTIAL IMPACT HOW WE MANAGE THIS RISKInsurance is typically treated by cus-tomers as an expense that they rarely collected on after years of paying premi-ums. In the highly competitive market, many times the only dierentiator is customer satisfaction. Failure to focus on such satisfaction may result in poor sales experience and reduction of customer retentionOne of our strategic objectives is the enhance member and broker experiences. Introduction of our Servant Leadership model, our flat organizational structure, our community initiatives and our newly design culture that provides autonomy to employees when dealing with our Brokers and Members go along way with Member satisfaction. Heavey emphasis is put on this strategic objective to miti-gate member dis-satisfaction.Risk Management

#44THREAT TO MARKET SHARE Strategic Risk | Competition & Disruption | CEORisk Management The P&C insurance industry is highly competitive, and we believe that it will remain so for the foreseeable future. We compete with many domestic and foreign insurers as well as Canadian banks that are selling insurance products. These entities have various distribution models. We compete not only for business and individual customers, but also for brokers and other distributors of investment and insurance products. We have two distribution channels.• Independent Brokers – 86%• Exclusive Agents – 14%Being a Farm Mutual, our focus is on Agribusiness as we believe this to be our niche. Currently larger competitors do not have expertise in this field however that is only a matter of time before they see this as an opportunity.A great part of our success depends on our ability to attract and retain top talent to be leaders in this industry as well as our ability to enhance our Broker/Member experi-ence in dealing with us.

45Risk Management POTENTIAL IMPACT HOW WE MANAGE THIS RISKIntense competition for our insurance products could harm our ability to main-tain or increase our profitability, premium levels and written insured risk volume.The entrance of a new player in the market or a shift in methods to purchase insurance could challenge our distri-bution models. The use of information technology in the distribution and pric-ing of insurance products has increased over the last several years and this trend is expected to continue.Artificial intelligence is another area that is gaining much attention and could have a material impact on the insurance industry.Our multi-channel distribution strategy will be enhanced once we have made the transition to our modern technolo-gy platform. Independent Brokers and our Exclusive Agents will have access to straight through web processing of vari-ous commodity type policies.It is important to note that we are not circumventing either channel by going direct to consumer but including them both in the enhanced experience on their processing and the customer experience.Our strategy of enhancing our Broker/Member experience by providing value through superior expertise in the Agri-business arena will also be applied to our other lines of business as well. Significant eorts in our Brand Presence are how we create the environment where commu-nity members see value in placing their business with Nova Mutual.

#10MULTIPLE MAJOR FIRE LOSSES Insurance Risk | Catastrophe | COOResidential homes, Commercial Properties and Agri Business Operations are highly susceptible to loss by fire and current costs of repairs drastically increases the poten-tial of claims becoming total losses.POTENTIAL IMPACT HOW WE MANAGE THIS RISKClaims resulting from 4-5 major fire events could cause substantial volatility in our financial results and could materi-ally reduce our profitability or harm our financial condition.We have hired 2 full time loss inspectors to review Farm and Commercial policies over $500K Total Insurance Value on an annual basis. We also contract with Bull-seye Inspections for residential inspec-tions. We have recently developed a ProFarms product for Agribusiness that requires members to subscribe to an electrical system monitoring service (currently PrevTech) that vastly reduces potential fires resulting from electrical failures.Risk Management

47#6EXTREME ADVERSE CLIMATE Insurance Risk | Catastrophe | COOThe entire P&C Insurance industry is susceptible to changing climate patterns and an increase in the number and cost of claims associated with severe storms and other natural disasters. Changing weather patterns has resulted in hotter, drier weather in some areas and more humid, wetter weather in other areas. The result has been more unpredictable weather and increasingly severe storms. POTENTIAL IMPACT HOW WE MANAGE THIS RISKClaims resulting from natural catastroph-ic events could cause substantial volatili-ty in our financial results and could mate-rially reduce our profitability or harm our financial condition.At present, we do not have sophisticated modelling programs to forecast natural climate disasters therefore “acceptance” of this risk with mitigation techniques of Reinsurance retention limits of $500K across all lines, reviewing Flood Mapping data when considering acceptance of new business and for renewal business, increasing deductibles or capping limits on current water damage products.Risk Management

#12RESERVE & PRICING INADEQUACY Insurance Risk | Underwriting/Claims | COORisk Management Delivering on our strategic direction depends upon our ability to accurately assess the risks covered by the insurance policies that we write. From the premiums that we collect from our members, we set aside reserves to cover our estimated payment of all losses and loss adjustment expenses that we incur. These reserves are based upon a range of factors standard to our industry such as the following:· actuarial projections of the cost of settlement and administration of claims known.· estimates of trends in claims severity and frequency.· judicial theories of liability.· variables in claims handling procedures.· economic factors such as inflation.· judicial and legislative trends, judicial interpretation of policy coverage/exclusions.· the level of insurance fraud

49Risk Management POTENTIAL IMPACT HOW WE MANAGE THIS RISKInadequate pricing and inaccurate re-serving could negatively impact our abil-ity to accurately assess the risks of the policies that we write. In addition, there may be significant reporting lags between the occurrence of the insured event and the time it is eventually reported to the insurer. This is commonly known as “In-curred but not Reported” (IBNR) The following factors may have a sub-stantial impact on our future actual loss-es and related expenses experience:• amounts of claims payments.• expenses incurred in resolving claims.• legislative and judicial developments.• changes in economic variables such as interest rates and/or inflation.We consistently refine our reserve prac-tices through the year to ensure that we maintain a sucient level of claims reserve.Our plan for 2021 Q1 is to review the re-sults of each business line and determine if appropriate action is required in terms of product design or pricing to remediate poor underwriting performance or claims handling practices. This will be done in-volving all functional team disciplines and remedies, if any, can be executed during our quarterly OKR sessions.

#3TURBULENCE IN FINANCIAL MARKETS Financial Risk | Market | CFOChanges in equity markets, interest rate, inflation and to a lesser extent foreign ex-change causes changes in realized and unrealized gains and losses. During a period of prolonged lower interest rates dividend and interest income are reduced. As inter-est rates rise the value of our fixed income portfolio will decrease, resulting in lower realized gains and potentially higher realized losses. The company is more susceptible to changes in interest rates due to the substantial portion of the investment portfolio allocated to fixed income than to equity market movements.POTENTIAL IMPACT HOW WE MANAGE THIS RISKChanges in the market variables men-tioned above could adversely aect our investment income and/or market value of the company’s investments.The company’s investment philosophy takes a long-term approach coupled with capital preservation. A substantial por-tion of the company’s investments are actively managed by a very experienced third part manager. The portfolio is mon-itored in conjunction with the company’s investment policies.Risk Management

51#51MUTUAL AUTOMOBILE RATE FILING Operational Risk | External Event | CEOOMIA and Farm Mutual Re has advised the Mutual participants of Company 789 (share auto rate filing) that the committee no longer wishes to manage the filings on behalf of the Mutual Participants. The rationale is that they do not have the resources nor the expertise to handle this eort properly.POTENTIAL IMPACT HOW WE MANAGE THIS RISKWith ARFC pulling out of managing auto-mobile rate filings, it will now cost Nova Mutual $20K annually to pay for this service. This is a non-budgeted risk.We have been given little notice of this risk. At present, Nova will accept the risk and cost that comes with it. We will explore alternative solutions in our 2022 strategy and budgeting sessions in Q4 of 2021.Risk Management

Think Ahead. Think Nova.Our current focus has been the exploration of partnering with a Credit union considering proposed legislation changes noted below. Credit Unions or co-ops work similarly to Mutuals- our guiding principles are to put our members and communities first. Today- most Credit Unions partner with CUMIS / The Co-operators to provide insurance coverage on their lending products and discounts on travel as well as home and auto insurance. Later this year the Canadian government plans to review legislation that will open the door for discussion that credit unions may have the right to sell retail insurance products in-branch. This is something the credit unions — as well as banks, have been asking for and is already allowed in Credit Unions in both British Columbia and Quebec. If the Credit unions are not allowed to sell directly in-branch, they may still be granted the option to own or buy into an existing insurance brokerage. In consultation with some third-party experts, we identified four Credit Unions that we would be interested in exploring a potential partnership with, Kindred, Northern, Libro and Coast Capital. Each of these would be a worthy partner for many reasons but right now, we are focused specifically on Libro.Libro is already a certified B-Corp, has 31 oces across Ontario with just over 100,000 members, and one of their four pillars or objectives, that specifically spoke to us was the importance they place on local food accessibility. While ideally partnering with Libro means oering insurance products to their members and banking opportunities to ours, today we are in the initial relationship-building stage.We will continue to update you on this potential partnership under this section, however we are also exploring a remarkably interesting community self-sustainment initiative led by the Delhi District Chamber of Commerce. Nova Mutual has been asked to participate in preliminary stages because of our previous community involvement sponsoring the NorFarms project in 2020. We are pleased to see community partners now executing on Think Ahead. Think Nova.

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