Nova Q1 Report - 2023 : simplebooklet.com

5Starting in Q1 2023 Nova will be presenting ﬁnancial statements using IFRS 17. As we transition to the new reporting standards, results will be presented under the new IFRS 17 format as well as the old internal format (using IFRS 17 rules) allowing for a better understanding of the transition. Aside from presentation changes under IFRS 17, there are several accounting, system and process changes that have been implemented.The Leadership Team gathers monthly with Managers and Directors to discuss current activities and issues. These meetings are for the beneﬁt of all attendees to get a holistic view of activities happening throughout Nova Mutual. It is also a development opportunity for the Managers and Directors to collaborate with the Leadership Team.Recruitment has been a focus over the past few quarters and has now settled down to where we have a solid complement of sta in place to service our key stakeholders. With the promotion of three new managers from within Nova (Marketing & Brand, Underwriting and Claims) and one new Director for Business Development, Nova is now better positioned to service our Agents, Brokers and Members.Our community presence is gaining traction in Q1 as Nova refocuses eorts with the launch of AgriSafe, the spectacular support for Random Acts of Kindness Day and a video clip on the recent Eat & Drink Norfolk event. All these initiatives can be viewed on the Nova Mutual website under the News category.Q1 results are promising as we see positive signs on the underwriting front coupled with strong investment results. The quarter ended with an underwriting proﬁt of $179K and an investment gain of $0.9M. Net income for the quarter is $821K.EXECUTIVE SUMMARY

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INSURANCE PLATFORM UPDATEIT and the Property Underwriting teams were able to promote Residential, Commercial property and Farm to Cognition +.Adoption rates are high for Commercial, however vary with Residential and Farm due to the current renewal module that was converted from IBS. This trend is expected to move upwards in the coming quarters as adoption increases and the renewal rules module gets rebuilt.With most products on the new platform, the next implementation will be the Claims module. IT is currently in discovery mode to document requirements and review demos and functions.MICROSOFT 365 TRANSITIONWorking with partner AOS in late 2022 and into Q1 of 2023, the conversion of our Nova team members to Microsoft 365 has been completed. Microsoft 365 is the upgraded version of Oce 365 (Core productivity suite, which includes Word, Outlook, Excel, Teams). This will allow a more streamlined platform for data access, Device control, Anti-Virus control and other functionality to allow better collaboration across the organization.IT UPDATE

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7AGENT SUPPORT The Marketing team supported our agents in a variety of dierent ways. When we discovered that Jarvis Public School needed skates for their newly launched skating program, we helped Agent Paul to support this great local request by purchasing 18 pairs to donate.We also helped to launch Rebecca as our newest agent, with a photoshoot, bio on the website, social media strategy and launch, and posted across the Nova social media platforms.AGRISAFE The Marketing team worked with the Operations Team to develop a unique look and launched our AgriSafe program. This program houses all of Nova’s innovative partnerships, products and services aimed at increasing protection and loss prevention for our agribusiness members. The initial launch included custom graphics and announcement across our social media, as well as an email blast with corresponding member facing materials to brokers.NOVA IN THE COMMUNITY With a focus on community, we set out to spread some joy as we celebrated Random Acts of Kindness Day. We teamed up with 4 of our members to make donations to 4 dierent causes in both Simcoe and Waterford. This project created a unique and memorable Nova experience around the community, for our members, and among our team.MARKETING & BRAND

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DISTRIBUTIONWith our dual distribution model of captive agents and independent brokers it was necessary to bring in a Business Development Manager to oversee this critical part of the operation. We were successful in our search and now have Ken Poort in this role. Ken joins us from another Ontario Mutual, with excellent underwriting and relationship building skills. He will use those skills to lead our Agents and supply them with knowledge transfer opportunities and measure and assist in building business plans to expand the agents segment reach and facilitate growth. Ken has already expanded their ability to place tougher risks that Nova is not able to assist on with the use of Echelon for High-risk Auto members. This will allow us to keep the home while the auto is placed with another market and once the driving record has improved it can return to Nova.Ken will ensure a more robust and organized scope with a high cadence of measurement toward the agreed business goals and assist with a strategy when those goals are not being met.Ken will also be the lead on our broker channel strategy. He will bring the same cadence of oversight and measurement to our brokers around annual growth, retention and proﬁtability metrics. Ken will also seek out potential new broker partners to expand that segment of the business, reducing the dependence on our two large brokers.

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9Eective January 1, 2023, Nova as part of our strategy to return to proﬁtability cancelled contracts of 6 underperforming brokers with an impact of approximately $3,000,000 dollars in gross written premiums. As expected, this action did have some impact on our Agents and Underwriters in terms of workﬂow during the quarter.The agent force saw an immediate impact on existing Nova members from those cancelled brokers that either wanted to remain with Nova Mutual or were not able to secure acceptable insurance by these brokers or elsewhere. The agents were tasked with looking at any of these risks as new business and applying our existing underwriting guidelines and binding rules.Under the regulated Auto line, we would need to keep those risks that had purchased and used the “accident waiver protection” and either honour it with another broker or our agents who approached us with those risks.The underwriters noticed an increased workload when the above actions were taken as they had to treat and enter this as new business in our system and could not simply alter the existing policy. Adding to that workload some of the dicult conversations our underwriters and agents had to have with existing members who were with those cancelled brokers we could not accommodate due to not meeting current risk appetite. As these cancelled brokers and related policies work through the process over the ﬁrst quarter, workﬂows normalized and our teams were able to ensure our regular outstanding levels of service.Insurance operations for the ﬁrst quarter of 2023 were focused on ﬁlling out our new manger roles. A great deal of eort was put into seeking the best talent to ﬁll these crucial roles and luckily two internal candidates were the best ﬁt in terms of knowledge and experience, but we had excellent external competition as well. These roles in Underwriting, Claims and Business Development will assist in our regulatory compliance work, the build out of knowledge transfer opportunities and ensure quality assurance in the portfolio. In addition, these managers will oversee the day-to-day operations of these teams.OPERATIONS

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OPERATIONSPERSONAL INSURANCE We are making a few adjustments to our pricing in the Personal Insurance space to ensure our competitive position in the market after some competitive analysis was conducted and broker feedback reviewed. We are removing a ﬂat $100 charge for Guaranteed Replacement Cost (GRC) but will continue to ensure our overall insurance to value initiatives. We welcomed a new underwriter to the team, Jared Carroll who joins us from Gore Mutual and will have an immediate impact with our brokers and agents.FARMFarm has seen some issues around service with a faster than expected paternity leave and an exit by one of our Farm sta, but the team was able to quickly adjust their priorities and have some more work to do but are well on their way back to the excellent service they are known for. During this time, we realized an uptake in new business, and this was a result of our excellent relationships with our broker partners. We also added to the team a new Farm Underwriter Logan Baer who joins us from Heartland Farm Mutual. Logan grew up on a dairy farm near Goderich Ontario and will use his knowledge and expertise to help the team and our brokers and agents.COMMERCIAL The commercial team has started to see the impact of their face-to-face broker visits in Q1 with an uptake in new opportunities. The team is fully staed and are servicing our members/agents and brokers very well. We were able to bring on an excellent underwriter, Shelley Tripp, who joins from Co-Operators. Her experience and knowledge will assist not only our members but the team in general.

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11AUTOThe auto portfolio is absorbing a large OMAP ﬁling and working closely with other stakeholders to ensure an ecient adoption. We are exploring a strategic partnership that will assist drivers to keep their own insurance record allowing for a more ecient transaction when adding drivers to existing policies. We will be the ﬁrst OMIA company to implement this if successful. CLAIMSThe claims team in Q1 took on 63 Property and 133 Auto claims. The higher frequency is related to two dierent storm systems in the southern Ontario area. We saw an increase in water and wind property damage as a result. As always, our claim service is top notch, and we are able to handle the majority of these in-house. I also want to welcome Racheal Bennet to her new role as Claims Manager. Her ﬁrst priority is to replace herself with a Senior Accident Beneﬁts Claims Adjuster.LOSS PREVENTIONThe Loss Prevention team completed 147 surveys in Q1 and are now well underway using the new MIRA 360 Loss Prevention system rolled out by FMRe. The next movement on this will be the “self-survey” option and rolling this out to our members on the Personal Property side of the business.OPERATIONS

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In the ﬁrst quarter, we set important foundational blocks for Nova Mutual’s future Enterprise Risk Management (ERM) development. The company’s refreshed Enterprise Risk Management Policy and Risk Appetite Statements were approved by the Investment & Risk Committee in January, followed by the full Board of Directors in February. An overview of the risk management function was introduced to sta at the company’s March Roundtable.A signiﬁcant focus for the ﬁrst quarter was to address our Regulatory Compliance Risk. Constant changes in our regulatory environment and within the company mean we need to be vigilant to remain compliant. Some new changes on the horizon include fraud reporting, the Consumer Privacy Protection Act (part of the federal Bill C-27), and increased responsibilities under the Accessibility for Ontarians with Disabilities Act for exceeding 50 employees. Certain leaders in charge of key regulatory activities will now be signing o on a quarterly Certiﬁcate of Compliance to be presented to the Investment & Risk Committee, which was developed alongside a calendar of known RISK MANAGEMENT

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13RISK MANAGEMENTreporting requirements and duties. An initial gap analysis of governance policies was also conducted with the leadership team and corporate secretary in anticipation of an eventual assessment by the Financial Services Regulatory Authority.Following approval of the new risk management policies, Nova Mutual re-engaged BDO consultants to proceed with Phase 2 of our ERM program development. We are very excited about Q2 and engaging sta in our ﬁrst full risk assessment under the new ERM Framework, including workshops and surveys. Undoubtedly, we will learn a lot about our company, the risks we face, and how we can better secure the long-term vision of Nova Mutual and all its stakeholders.

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STARTED:Mira360 Form LettersRate Change Process Improvements (Farm/Residential)CyberSuite Product ChangesD&O Wording ChangesGuaranteed Rebuilding Cost (GRC) ChangesHSB Product Changes (Home Systems Protection & Service Line)Nova Communication Template UpdatesNew HR/Payroll SoftwareEducation GuideVacation PolicyPerformance ManagementCognition+ Property Production SupportAltaro from Veeam (Backup)Annual Statement on Market Conduct (ASMC)Outsourcing & Vendor Management PolicyBusiness Continuity & Disaster Preparedness PlanCONTINUED:Cognition+ DPR (Driver Performance Record)Redesign Agent Renewal LettersJob Description UpdatesQCsolver – Vendor Management SoftwareForge: Rubble (IBS DB Integration)IFRS17Risk Management Compliance CalendarCOMPLETED:AgriSafeRandom Acts of Kindness ProjectInternational Women’s Day ProjectMira360 Form LettersAnnual General Meeting 2023Cognition+ Property Implementation365 Business Premium Transfer (Oce 365 Licensing)Cognition+ 191.2 ReleasePROJECTS AT A GLANCE - Q1 2023With the introduction of a new role dedicated to project management here at Nova Mutual, we now have the capability to create a framework to capture, align and integrate all the departments requirements and project needs. The future vision will include monitoring of project initiatives and resourcing and allowing ROI driven decisions. Below is a snapshot of what Nova has on the go.

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15STARTING:Risk Mgmt: Risk Review (Mid-Year)Verhegghe - Vendor System ChangesUW & Rating Rules Overhaul - Residential/FarmAutomatic Renewals - FarmInﬂation - Yearly Update (Residential/Farm)Rate Change - Yearly Update (Residential/Farm)Peril Scoring - Initial SetupCyber ExclusionUW Appetite SheetsRedesign Agent Employment ContractNew Job Description TemplateBrand – 3 Community Initiatives Brand - Community Engagement SpotlightAODA ComplianceDaily Reporting of Property & Claims StatsJarnova-FSPS shutdown/move printersPenetration TestingWindows Server Upgrade to 2019Shared Drives to SharePointCONTINUING:Cognition+ DPR (Driver Performance Record)Redesign Agent Renewal LettersJob Description UpdatesQCsolver – Vendor Management SoftwareForge: Rubble (IBS DB Integration)IFRS17Risk Management Compliance CalendarMira360 Form LettersRate Change Process Improvements (Farm/Residential)CyberSuite Product ChangesD&O Wording ChangesGuaranteed Rebuilding Cost (GRC) ChangesHSB Product Changes (Home Systems Protection & Service Line)Nova Communication Template UpdatesNew HR/Payroll SoftwareEducation GuideVacation PolicyPerformance ManagementCognition+ Property Production SupportAltaro from Veeam (Backup)Annual Statement on Market Conduct (ASMC)Outsourcing & Vendor Management PolicyBusiness Continuity & Disaster Preparedness PlanPROJECTS AT A GLANCE - Q2 2023

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OVERVIEWEective January 1, 2023, the new international accounting standard IFRS 17 came into play. The results presented are reﬂective of these new accounting standards and methodologies presented on the old basis and new standard presentation basis.As expected, gross premiums written were down from the prior year and plan for Q1 2023 primarily a result of the cancellation of six brokers. Premiums in Q1 were still solid with GWP of $8.2M YTD. Excluding the cancelled brokers, Q1 2023 GWP is up 4% over prior year.• General expenses were higher compared to Q1 2022 and lower than plan.• YTD Underwriting proﬁt of $179K is lower than Q1 2022 and higher than plan.• The YTD Combined Ratio is 97.5% (94.9% Q1 2021).• Stronger investment markets resulted in net Investment income of $935k for Q1 2023 (-$509k Q1 2022).• Overall net income is $821K driven by solid underwriting and investment performance.DIRECT WRITTEN PREMIUMSQ1 premiums are down 4% versus the prior year and plan. Nova Mutual has written $456k in new business which is down 59% from the prior year. The decrease in new business premiums versus the prior year is driven by lower Agribusiness and Commercial. The 6 cancelled brokers are also contributing to this decline. YTD Agribusiness total premiums are up over last year by 8% (11% excluding cancelled brokers). New business is down across all lines of business YTD. Specialty lines accounted for 49% of premiums YTD versus 47% in the prior year.Although we fell slightly short of our Plan in terms of Premiums, we are still focusing on Specialty lines and replacing premiums from cancelled brokers as key strategic objectives.FINANCIAL RESULTS Q1 YTD 2023

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19The agency channel is in a growth mode with 1 additional agent over 2022. Additional support has been provided to the sales team with the addition of Ken Poort, our new Business Development Manager. We continue to have an emphasis on ensuring the correct focus, attention, and service to meet our members’ needs. YTD premiums from the agency channel are up 10% from the prior year and new business is up 86% for the same period. Renewal premiums are up 7% which includes the current inﬂation factor on residential properties.YTD premiums sourced through the Broker channel are down 6% from the prior year with new business down 63% over the same period. Broker consolidation continues industry wide. In 2022 Nova Mutual still saw several contracted Brokers sell to larger Brokers (Morison and McFarlan) increasing the concentration of risk with these two Brokers. The two brokerages own over 50% of the book of business. Overall renewal premiums are performing well, up 4% from the same period last year.FINANCIAL RESULTS Q1 YTD 2023

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GROSS CLAIMSThere were 178 new claims reported in the quarter with an average gross claim cost of $21K. YTD Claims count activity is down 17.4% year over year. Gross incurred claims in Q1 were $74k higher than the previous year. Frequency is down but severity is up year over year.On a YTD basis Nova incurred almost $4.1M in direct claims and paid almost $5.4M to settle claims during the quarter.In the quarter there was 1 claim over $500K, for a commercial property ﬁre, with policy inception year of 2021 (total incurred cost of $540K). Compared to Q1 last year, there was 1 residential ﬁre with an incurred cost of $945K from a policy with an inception year of 2021.When looking at total gross claims incurred in Q1 2023, $203K or 5% of all gross claims incurred came from new business (2022 and 2023).The Q1 fully allocated Claims ratio of 54.4% is higher than Plan of 53.5% and higher than the prior year of 52.4%.CLAIMS RATIOSThe chart below shows pure loss ratios1 YTD by line of business.YTD TOTAL YTD AGENT YTD BROKER2023 2022 2023 2022 2023 2022Automobile 44.8% 42.8% 67.0% 70.2% 39.6% 36.2%Commercial 57.5% 2.4% 10.3% 12.7% 59.4% 2.0%Agribusiness 37.6% 22.0% 17.5% 32.9% 40.6% 20.2%Garage Auto 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%Residential 42.3% 104.3% 44.6% 58.2% 41.8% 114.0%Total 45.7% 46.5% 45.7% 55.4% 45.8% 45.1%1 Excludes Reinsurance, IBNR’s, Internal Adjusting Expenses, and Allocated Expenses.FINANCIAL RESULTS Q1 YTD 2023

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21COMMISSIONS & GENERAL EXPENSESQ1 commissions as a percentage of GWP of 18.2% are higher than anticipated (16.4%). The expected full year CPC is estimated to be approximately $348K at this time. The Prior Year average commission rate for YTD was 17.0%.YTD General expenses of $1.72M are $191K below Plan primarily the result of new IFRS 17 accounting and lower personnel costs.During Q1 Nova Mutual increased the FTE’s by 4: 7 new hires, 1 return from leave, 1 on leave and 3 terminations/departures. Nova Mutual’s active FTE compliment is 49.The YTD expense ratio of 44.9% is better than the Plan of 47.4% and higher than the prior year of 44.2%.FINANCIAL RESULTS Q1 YTD 2023

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FINANCIAL RESULTS Q1 YTD 2023 INVESTMENTSYTD net investment income was $936K. The results are above Plan by 116% and prior year 284%. The Q1 return on investments was 2.1% net of fees. This income is primarily due to market corrections that happened in Q1. While there is still market volatility, the markets are trading in positive territory.As at March 31, 2023, the market value of investments under man-agement with PH&N is $34.7M representing 83.7% of the total investment portfolio.Broker loans are in good standing. YTD income is $9.2K. Balloon princi-pal payments were made as scheduled on the two Broker loans at March 31st.INVESTMENT MIXMCT 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%. Given the changes with IFRS 17 and the P&C1, it is unclear what the MCT score will be as at March 31, 2023. The MCT for Q4 2022 was 360.77%.Other 0.0%Broker Loans2.4%Global Equities4.3%GIC’s6.2%Canadian Equities16.2%Bonds 63.4%Real Estate 7.3%ROI8.2%Investments$41.4M

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23Actuals Plan Prior Year Var to Plan Var to Prior Year %'g Change Plan %'g Change PY Full Year Plan Gross Written Premiums - Residential2,090,382 2,111,069 2,190,123 (20,687) (99,741) -1%-5%10,117,175 Gross Written Premiums - Commercial1,868,878 2,023,952 2,025,639 (155,074) (156,761) -8%-8%9,365,041 Gross Written Premiums - Farm2,091,996 2,065,195 1,937,636 26,801 154,360 1%8%8,303,926 Gross Written Premiums - Auto 2,192,227 2,380,330 2,425,448 (188,103) (233,221) -8% -10% 10,122,529 Gross Written Premiums8,243,483 8,580,546 8,578,846 (337,063) (335,363) -4%-4%37,908,670 Property - Excess of Loss581,577 381,597 392,443 199,980 189,134 52%48%1,626,344 Property - Catastrophe282,167 210,108 216,080 72,059 66,087 34%31%894,063 Auto - Excess of Loss482,498 420,691 432,649 61,807 49,849 15%12%1,774,589 Liability - Excess of Loss86,570 84,337 86,734 2,233 (164) 3%0%349,198 Equipment Breakdown Ceded92,341 98,801 101,609 (6,460) (9,268) -7%-9%396,326 Facultative Property Ceded9,374 63,514 65,319 (54,140) (55,945) -85%-86%130,410 Excess/Umbrella Liability Ceded110,194 101,106 103,980 9,088 6,214 9%6%337,075 D & O Liability Ceded9,735 9,215 9,477 520 258 6%3%28,460 Farmers' Accident Ceded204 188 193 16 11 9%6%756 Reinsurance Premiums Ceded 1,654,660 1,369,557 1,408,484 285,103 246,176 21% 17% 5,537,221 Net Premiums Written6,588,823 7,210,989 7,170,362 (622,166) (581,539) -9%-8%32,371,449 Change in Unearned Premiums (Inc)/Dec 694,845 (114,593) (51,851) 809,438 746,696 -706%-1440%(1,895,434) Net Premiums Earned7,283,668 7,096,396 7,118,511 187,272 165,157 3%2%30,476,016 PAP Service Fees125,397 114,679 120,902 10,718 4,495 9%4%473,879 PAP NSF Fees4,501 2,205 2,325 2,296 2,177 104%94%12,281 Agricorp Reinsurance Programme- - - - - - Catastrophe Reinsurance Programme - - - - - - Service Charges129,898 116,884 123,227 13,014 6,671 11%5%486,160 Total Revenue7,413,566 7,213,280 7,241,738 200,286 171,828 3%2%30,962,176 Gross Claims Incurred4,537,417 4,465,771 4,320,671 71,645 216,746 -2%-5%19,729,683 Claims Recovered572,328 669,866 587,955 (97,537) (15,626) 15%3%2,959,452 Net Claims Incurred3,965,089 3,795,906 3,732,716 169,183 232,372 -4%-6%16,770,231 Commissions1,501,104 1,405,423 1,457,372 95,681 43,732 -7%-3%6,209,131 Premium Taxes (Excl. Income & Real Estate) 25,363 25,157 24,814 205 549 -1% -2% 111,145 Other Expenses- - - - #VALUE!General Expenses1,742,742 1,934,208 1,664,890 (191,465) 77,852 10%-5%7,001,386 Total Expenses3,269,209 3,364,788 3,147,076 (95,579) 122,133 3%-4%13,321,662 Underwriting Income/(Loss) 179,268 52,586 361,945 126,683 (182,677) 241% -50% 870,284 Investment Income976,395 479,844 (466,500) 496,552 1,442,895 103%-309%1,919,374 Realized Gains- - - - - - Investment Fees 40,865 46,400 42,900 (5,535) (2,035) -12% -5% 185,602 Net Investment Income 935,530 433,443 (509,400) 502,087 1,444,930 116% -284% 1,733,772 Other Revenue and Expenses2,325 - 445,587 2,325 (443,263) -99%- Income/(Loss) before Taxes1,117,122 486,029 298,133 631,094 818,990 130%275%2,604,056 Current Taxes296,038 128,798 79,005 167,240 217,033 130%-275%690,075 Deferred Taxes- - - - - - Income Taxes296,038 128,798 79,005 167,240 217,033 130%-275%690,075 Net Income/(Loss)821,084 357,231 219,128 463,853 601,957 130%275%1,913,981 Nova Mutual Insurance CompanyStatement of Income YTD March 2023

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Actuals Plan Prior Year Var to Plan Var to Prior Year %'g Change Plan %'g Change PY Gross Premiums Written8,243,483 8,580,546 8,578,846 (337,063) (335,363) -4%-4%Reinsurance Assumed- - - - Dec (Inc) in Unearned Premiums694,845 (114,593) (51,851) 809,438 746,696 -706%-1440%Service Charges129,898 116,884 123,227 13,014 6,671 11%5%OtherRevenue from PAA Contracts9,068,226 8,582,837 8,650,221 485,389 418,004 6%5%Revenue from GMM Contracts (excluding VFA contracts)- Revenue from VFA Contracts- Total Insurance Revenue9,068,226 8,582,837 8,650,221 485,389 418,004 6%5%Gross Claims and Adjustment Expenses4,537,417 4,483,771 4,363,392 53,645 174,025 1%4%Gross Commissions1,501,104 1,334,423 1,344,752 166,681 156,352 12%12%Taxes25,363 24,157 21,723 1,205 3,640 5%17%Other Acquistion Expense- - - - General Expenses765,856 1,696,481 762,634 (930,624) 3,222 -55%0%Insurance service expenses6,829,740 7,538,833 6,492,501 (709,093) 337,239 -9%5%Reinsurance Ceded1,654,660 1,369,557 1,408,484 285,103 246,176 21%17%Reinsurer's Share of Claims & Adj. Exp(572,328) (669,866) (587,955) 97,537 15,626 -15%-3%Net expenses from reinsurance contracts held1,082,332 699,691 820,529 382,640 261,803 55%32%INSURANCE SERVICE RESULT1,156,154 344,313 1,337,191 811,841 (181,037) 236%-32%Interest revenue on financial assets not measured at FVTPL- 935,530 433,443 (509,400) 502,087 1,444,930 116%-284%- Provision for Credit Losses- Investment Return935,530 433,443 (509,400) 502,087 1,444,930 116%-284%Net finance income (expenses) from segregated fundsMovement in investment contract liabilitiesNET INVESTMENT RESULT935,530 433,443 (509,400) 502,087 1,444,930 116%-284%Other Income2,325 445,587 2,325 (443,263) -99%Share of Net Income (Loss) of Equity Accounted Investees- General and Operating Expenses976,886 208,727 945,701 768,159 31,185 368%3%OTHER INCOME AND EXPENSES(974,561) (208,727) (500,113) (765,834) (474,448) 367%95%PROFIT (LOSS) BEFORE TAXES1,117,122 569,029 327,678 548,094 789,445 96%241%Total Income Taxes296,038 150,798 62,346 145,240 233,692 96%375%PROFIT (LOSS) AFTER TAXES821,084 418,231 265,332 402,853 555,753 96%209%Discontinued Operations (net of Income Taxes of $______)NET INCOME (LOSS) FOR THE YEAR821,084 418,231 265,332 402,853 555,753 96%209%2023 Statement of Income (YTD) - IFRS 17Nova Mutual Insurance CompanyNet finance income (expenses) from insurance contracts excluding Net finance income (expenses) from reinsurance contracts held YTD March 2023 Statement of Profit and LossNet investment income excluding segregated fundsNet investment income - segregated funds

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25MarCash & Equivalents4,745,636 Accrued Investment Income91,912 Investments41,393,724 Total Cash & Investments46,231,272 Amounts due from Brokers10,191,128 Amounts due from Farm Mutal Re143,314 Amounts due from Facility- Other Receivables- Income Taxes Receivable- Suspense(142,495) Allowance for Doubtful Accounts(20,000) Prepaid Expenses23,841 Q/S & Residual Market Receivable(278) Unpaid Claims & Adjustment Expenses8,045,169 Own Use Property547,530 Equipment & Other Assets293,033 Property, Equipment & Other Asstes840,562 Future Income taxes249,100 Deferred Expenses4,252,166 Other Assets- Total Assets69,813,780 Amounts due to Other Insurers(292,928) Accrued Expenses794,142 R.S.T Payable105,986 H.S.T. Payable - Salvage Value92,413 H.S.T. Recoverable - Salvage(7,566) H.S.T Payable4,063 H.S.T Recoverable(154) Premium Taxes Payable10,111 Future Income Tax Liability383,315 Income Taxes Payable(184,467) Total Payable904,915 Unearned Premiums 16,987,109 Unpaid Claims23,538,595 Total Liabilities41,430,619 Policyholders' Equity28,383,161 Total Liabilites and Policyholder Equity69,813,780 Nova Mutual Insurance Company2023 Balance Sheet (YTD)

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Nova Mutual Insurance Company2023 Balance Sheet - IFRS 17MarASSETSCash and Cash Equivalents4,745,636 Accrued Investment Income91,912 Asset for Insurance Acquisition Cash FlowsInvestments excl Investment PropertiesTotal Investments - Line 1938,358,800 Insurance Contract Assets Recoverables - UEPR, Claims, OtherClaim recoveries reinsurer8,045,169 Payables to Other Insurers(177,756) Receivables from Reinsurer143,036 Reinsurance Contract Held Assets - Recoverables8,365,961 Investment Properties3,034,923 Property and Equipment840,562 Deferred Tax Assets(134,215) Other Assets- Other Assets(118,654) Other ReceivablesTOTAL ASSETS55,184,926 LIABILITIES:Provisions, Accruals and Other Liabilities794,142 Liabilities held for saleCurrent Tax Liabilities(184,467) Encumbrances on Real Estate & Mortgage LoansFinancial Instrument Derivative LiabilitiesInsurance Contract Liabilities Insurance Contract Liabilities – Excluding Segregated FundsAsset Deferred Policy Acquistion Expenses4,252,166 Insurance Accounts Receivable10,171,128 Ceded Unpaid ClaimsLiabilities Insurance Payables (taxes)204,853 Due to Facility(115,172) Gross Unearned Premiums16,987,109 Gross Unpaid Claims23,538,595 Total Insurance Contract Liabilities 26,192,091 Total Reinsurance Contract Held Liabilities Liabilities before Policyholders' Liabilities26,801,765 Policyholders' LiabilitiesResidual Interest (Non-Stock)Total Policyholders' LiabilitiesTOTAL LIABILITIES26,801,765 EQUITYPolicyholders' EquityNon-Participating Account - Accumulated OCI (Loss) 28,383,161 Total Policyholders' Equity28,383,161 Non-controlling InterestsTotal Equity28,383,161 TOTAL LIABILITIES AND EQUITY55,184,926

Nova Q1 Report - 2023

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