Slides
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Skagi hf. Financial results Q3 2026
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Skagi Group to be scaled down Further simplification and streamlining of the Group structure Core activities reallocated across the Group Lower cost base to support future profitability Group’s operating platform CEO transition Central functions and overhead optimization Simpler structure and stronger governance Market announcement: Lower cost base and enhanced operating efficiency Asset Management consolidation ÍV to become a subsidiary of Fossar Asset Management activities to be consolidated within ÍV Improved operating efficiency across Financial Services 2
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Sharpened strategy and simplified Group structure Estimated annual savings, ISKm Building on the revised strategy, Skagi will further streamline the Group , prioritising strong execution within each business unit over external growth. The parent company will be further scaled down, reducing central functions and overhead to deliver a meaningful reduction in operating costs. Refinancing of the Group’s credit facility and subordinated notes is also expected to lower finance costs . Financial operations will be streamlined to increase efficiency by consolidating asset management in ÍV, a subsidiary of Fossar , in addition to other measures taken in H1. In parallel, Skagi’s current operating model will be phased out , with its activities transferred to VÍS. VÍS will become the parent company of the Group . As part of these changes, Haraldur Þórðarson has stepped down as CEO of Skagi , and Guðný Helga Herbertsdóttir has taken over as CEO of the Group . Together with actions taken in H1, the initiatives are expected to reduce operating and finance costs by up to ISK 610 million a year once fully implemented. Streamlined Group structure with VÍS as parent 180 195 75 160 610 Revised strategy Leaner parent company Asset mgmt. & fin. ops. Debt repaym. & refinancing Total savings Note: Savings are shown as the estimated annualised effect once all measures are fully implemented The proposed changes are subject to customary approvals by shareholders and regulators Implemented In progress 3 All amounts are in ISKm unless stated otherwise.
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Key highlights Q3 2026 All amounts are in ISKm unless stated otherwise. Simplified Group structure results in significantly lower cost base With total annual savings estimated ~610m 24,0% 3,2% ÍV revenue growth Peers weighted average 16.1 66.3 Q3 25 14.9 66.0 Q3 26 82.4 80.9 - 1.5pp Claims and reinsurance Operating cost Q3 25 Q3 26 10.8% Q3 25 Q3 26 8.0% The lowest combined ratio in nearly two decades Combined ratio ↓ 1.5pp YoY Life insurance revenue Insurance revenue Continued profitable growth in premiums ÍV 6M revenue growth significantly ahead of peers Íslensk verðbréf at the forefront over the past three years Excellent revenue growth 4
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Core operations changes 9M YoY • Profit after tax more than tripled YoY to 1,207m • Q3 results 812m increased by 13% YoY • Insurance operations contributed 448m to the YoY improvement , reflecting revenue growth and a lower combined ratio • Insurance investments’ result before tax improved by 860m YoY • Financial Services PBT decreased by 174m YoY • Core revenues increased 6% YoY, amounting to 27.5bn • Resilient core operations deliver ahead of plan with PBT of 2.6bn YTD increasing by 8% YoY and reaching the full year target Profit increase driven by insurance operations Profitability bridge , ISKm 9M 2025 vs 9M 2026 2023 2024 2025 2026 19.6 23.1 26.0 27.5 +6% Core operations revenue YTD , ISKbn 9M 2023 - 2026 9M 25 results Insurance operations Financial services Other Insurance investments Tax 9M 26 results 337 1,207 448 - 174 - 158 860 - 106 5 All amounts are in ISKm unless stated otherwise.
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VÍS outgrows the market while improving profitability YoY insurance premium growth by quarter VÍS vs. insurance market in Iceland 1 - 102 2023 2024 2025 2026 1,042 2,920 3,315 Insurance service results YTD by year, 9M 2023 - 2026 • VÍS delivers strongest Q3 insurance service results since 2007, with combined ratio of 80.9% and YTD 87% at its all - time lowest • Life & health premiums increased by 10.8% YoY • Continued improvement in the underlying business, supporting a sustained reduction in the combined ratio • Very strong premium growth of 8.0% year - on - year in the 3 rd quarter, accelerating from the 2 nd quarter • Ongoing improvement in customer satisfaction 6 1. Weighted average growth of VÍS, Sjóvá , TM and Vörður . 2022 2023 2024 2025 2026 3.9% 8.0% VÍS Insurance market 2. Market growth in Q2 2026. 2 All amounts are in ISKm unless stated otherwise.
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Simpler, more efficient processes support economies of scale at VÍS Cumulative change 1 , 9M 2022 – 9M 2026 Operating cost ratio 2 , 9M % of insurance revenue • Strategic shift in 2023 towards a more scalable and efficient cost base • Revenue growth materially outpacing cost growth: +40.1% vs. +10.6% since 9M 2022 • 9M cost ratio down 4.6pp since 2022, to 17.2% • Increasing economies of scale: growth is supported by a scalable operating model without a corresponding increase in the cost base • Structural efficiency improvements through process simplification, automation and disciplined cost management • Continued operating leverage potential as the business grows 7 1. Cumulative change: 9M 2026 against 9M 2022 for insurance revenue and insurance operating costs. 2. Operating cost ratio: insurance operating costs as % of insurance revenue (operating cost component of the combined ratio) . 2022 2023 2024 2025 2026 21.8% 21.8% 18.9% 17.9% 17.2% - 4.6pp Insurance revenue Operating costs 40.1% 10.6% All amounts are in ISKm unless stated otherwise.
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Customer Satisfaction continues to increase supporting revenue growth 8 1. Mean of monthly scores 2. Average of VÍS, TM, Sjóvá and Vörður. • We aim to be customers’ first choice by delivering great service throughout the customer journey • Satisfaction continues to improve through clear service standards, company - wide training and systematic follow - up • CSAT, NPS and first - time - right measures help us identify friction and improve continuously • CRM and technology investments support faster, simpler service, while sharper sales execution strengthens focus on target segments, accountability and commercial discipline • Our Íslandsbanki partnership builds loyalty among individual and corporate customers and expands distribution opportunities for further growth 7.5 8.0 8.5 9.0 9.5 2022 2023 2024 2025 2026 9.2 Customer satisfaction 1 , quarterly average All amounts are in ISKm unless stated otherwise. -20 -15 -10 -5 0 5 10 2022 2023 2024 2025 2026 VÍS Insurance market NPS NPS, VÍS vs. insurance market 2 quarterly average
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Financial Services efficiency measures under way in challenging quarter Financial Services LTM revenues Financial Services core revenues Excl. financial income • A challenging quarter, marked by high interest rates and historically low market turnover weigh on results, especially for Fossar with loss of 102m before tax • Cost reduction of 56m YoY across the segment realized in Q3 after measures taken in 1H 2026 • Asset management continues to grow, led by Íslensk verðbréf with Group AuM of 245bn at end of Q3 2026 (+3.8% YoY) • Fossar has increased its equity brokerage market share YTD and was the leading equity broker in Q3 2026 • Fossar is well capitalized with room for balance sheet growth 877 819 795 764 739 1,077 Q3 25 1,274 1,094 Q4 25 1,203 AM CM CIB Q3 26 1,192 1,006 Q2 26 1,188 1,104 Q1 26 1,123 3,103 3,187 3,121 3,055 2,937 1,148 - 5% 9 631 844 712 676 616 Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 - 2% CIB: Corporate Finance and Investment Banking, CM: Capital Markets and AM: Asset Management. All amounts are in ISK m unless stated otherwise.
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Íslensk verðbréf Strong asset management company built in three years Return, global equity funds, • Founded in 2023 as SIV and merged with ÍV sjóðir as Íslensk verðbréf in 2025 • Fastest - growing asset management company in Iceland: revenue up 24% YoY in 6M 2026, ahead of all peers and 18% YoY in 9M • Broad product range with strong performance: asset management, open - ended funds and private credit funds • VÍS Investment portfolio average annual excess return 3% above benchmark since 2018 • ÍV Erlend hlutabréf top performing fund in Iceland in past years • New product offering: ÍV Norræn fyrirtækjaskuldabréf (Nordic High Yield), hedged to ISK – strategy used in VIS portfolio since 2018 with good results 10 Source: Fund managers’ 6M 2025 and 6M 2026 financial statements; Fund overview, returns as of 30.09.2026, www.keldan.is Revenue growth YoY vs . peers , 6M 2026 vs . 6M 2025 24,0% 19,8% 6,1% - 3,0% - 7,3% Peer 1 Peer 2 Peer 3 Peer 4 223bn Assets under management 91m Profit before tax 9M 2026, compared with −5m last year 43bn AuM in Private Credit funds : SCF I, SCFI II, SACF and other 22.5% 18.3% ÍV Erlend hlutabréf 11.8% 11.5% Landsbréf Global Equity 9.6% 11.8% ÍV Alþjóðlegur 8.4% 8.0% IS Heimssafn - 1.8% 1.7% Stefnir Scandinavian - 2.2% 4.6% Katla Global Equity 12 months 3 years, annualized All amounts are in ISKm unless stated otherwise.
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Weak equity markets continue to negatively affect investment income Investment income 1 Investment income from assets in Q3 2026 • Investment income 237m in the quarter, decreasing by 207m YoY • Portfolio returned 0.5% in Q3 versus – 0.1% benchmark return • Quarterly return affected by negative returns of listed equities, with JBT Marel being the main contributor of negative returns • Investment income 999m in 9M 2026, increasing by 568m YoY • Net financial investment income in 9M remained negative at - 835m (+647m YoY) • YTD return of 2.0%, ahead of the 0.6% benchmark • Broad - based outperformance across most asset classes YTD Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 1,924 443 366 396 237 - 207m 11 11 1. The presentation of comparative figures has been revised. 38 237 161 328 436 125 21 Cash Gov.& muni bonds Other bonds Listed equity Unlisted equity Other investment income Gross Financial Income All amounts are in ISKm unless stated otherwise.
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Q3 Financials
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Insurance • Insurance revenue 9,042m (+8% YoY) • Combined ratio 80.9% ( - 1.5pp YoY) and insurance service result 1,731m (+18% YoY) Financial Services • Net interest income 140m (+13% YoY) • Net fee and commission income 446m ( −7% YoY) Investments • Investment income 237m, with a 0.5% return in the period ( - 0.4pp YoY) • Net financial income - 343m ( - 97m YoY) Net operating income • Net operating income 2,017m (+8% YoY) Expenses • Operating expenses 718m ( - 5% YoY) Results • Pre - tax profit of 1,224m (+167m YoY) • Profit after tax of 812m (+95m YoY) Income statement Q3 2026 13 13 Strong quarter driven by insurance and cost discipline Income statement Q3 2026 Q3 2025 Δ Δ% Insurance service result 1,731 1,471 260 18% Net interest income 140 123 17 13% Net fee and commission income 446 480 - 34 - 7% Net financial income - 343 - 246 - 97 - 39% Other income 44 40 4 11% Net Operating Income 2,017 1,868 149 8% Operating expenses - 718 - 759 41 5% Amortization of intangible assets - 48 - 49 1 3% Net impairments - 27 - 2 - 25 Profit before taxes 1,224 1,057 167 16% Income tax - 412 - 339 - 73 - 21% Profit 812 717 95 13% Group KPIs Core Revenues 9,623 9,069 554 6% ROE - annualised 14.2% 13.2% +1.0pp Profit per share 0.43 0.38 0.05 13% Business Unit KPIs Insurance revenue 9,042 8,369 673 8% Combined ratio 80.9% 82.4% - 1.5pp Financial Services income 581 700 - 117 - 17% Investment income 237 443 - 207 - 47% Investment income return % 0.5% 0.9% - 0.4pp All amounts are in ISKm unless stated otherwise.
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Income statement 9M 2026 14 14 Profit more than tripled YoY on stronger insurance and lower net financial expense Income statement 9M 2026 9M 2025 Δ Δ% Insurance service result 3,315 2,920 395 14% Net interest income 425 323 102 31% Net fee and commission income 1,497 1,672 - 175 - 10% Net financial income - 835 - 1,482 647 44% Other income 189 215 - 26 - 12% Net Operating Income 4,590 3,647 943 26% Operating expenses - 2,482 - 2,542 60 2% Amortization of intangible assets - 147 - 147 0 0% Net impairments - 33 - 6 - 27 Profit before taxes 1,928 952 976 103% Income tax - 721 - 615 - 106 - 17% Profit 1,207 337 870 258% Group KPIs Core Revenues 27,478 25,966 1,511 6% ROE - annualised 7.1% 2.1% +5.0pp Profit per share 0.64 0.18 0.46 256% Business Unit KPIs Insurance revenue 25,516 23.755 1,761 7% Combined ratio 87.0% 87.7% - 0.7pp Financial Services income 1,961 2,212 - 251 - 11% Investment income 999 431 568 132% Investment income return % 2.0% 0.9% +1.1pp Insurance • Insurance revenue 25,516m (+7% YoY) • Combined ratio 87.0% ( −0.7pp YoY) and insurance service result 3,315m (+14% YoY) Financial Services • Net interest income 425m (+31% YoY) • Net fee and commission income 1,497m ( −10% YoY) Investments • Investment income 999m, with a 2.0% return in the period (+1.1pp YoY) • Net financial income −835m (+647m YoY) Net operating income • Net operating income 4,590m (+943m YoY) Expenses • Operating expenses 2,482m ( - 2% YoY) Results • Pre - tax profit of 1,928m (+976m YoY) • Profit after tax of 1,207m (+870m YoY) All amounts are in ISKm unless stated otherwise.
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Balance sheet 15 15 Robust balance sheet after 2bn capital distributions in the period Balance sheet 30.09.2026 30.06.2026 Δ% Quarter 30.09.2025 Δ% YoY Assets Cash 2,971 2,852 4% 1,503 98% Insurance investment assets 50,573 48,993 3% 46,865 8% Fixed income securities 6,076 5,525 10% 5,373 13% Shares and other variable income securities 901 236 282% 406 122% Securities used for hedging 1,169 4,408 - 73% 6,353 - 82% Loans to customers 11,185 10,942 2% 10,743 4% Goodwill and intangible assets 5,362 5,479 - 2% 5,764 - 7% Other assets 5,252 6,196 - 15% 6,683 - 21% Total Assets 83,489 84,631 - 1% 83,688 0% Liabilities and Equity Insurance liabilities 31,924 32,124 - 1% 29,363 9% Money market deposits 7,163 6,544 9% 10,801 - 34% Bonds and bills 8,230 8,215 0% 6,073 36% Other liabilities 9,019 11,172 - 19% 11,475 - 21% Subordinated liabilities 4,028 4,019 0% 3,849 5% Total Liabilities 60,364 62,073 - 3% 61,561 - 2% Equity 23,125 22,558 3% 22,128 5% Total Liabilities and Equity 83,489 84,631 - 1% 83,688 0% Assets • Total Group assets are ~83bn (0% YoY) • Insurance investment assets stand at ~51bn (52bn incl. cash), up 8% YoY • Loans to customers of 11bn (+4% YoY), primarily secured by liquid listed assets • Goodwill and intangible assets are mainly related to acquisitions and mergers in Financial Services Liabilities • Insurance liabilities 31.9bn (+9% YoY) and in line with premium growth • Fossar mainly funded by money market deposits and issued bonds and bills • Balance sheet of Fossar consists mainly of liquid government bonds and listed assets Equity • Equity of the Group stands at 23.1bn and has increased by ~1.0bn YoY • Dividends and share repurchases amounting to 2.0bn All amounts are in ISKm unless stated otherwise.
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Operating costs Operating costs Breakdown of operating costs Business units Employees (FTEs) Number of FTEs over period Group cost growth of 1.4% YTD, well below inflation 728 997 799 733 828 194 1,306 Q3 25 93 1,542 Q4 25 164 1,577 Q1 26 166 1,640 Q2 26 160 1,196 Q3 26 2,229 2,632 2,540 2,540 2,184 187 184 176 177 181 31 31 31 31 27 11 15 Q3 25 12 15 Q4 25 13 14 Q1 26 12 13 Q2 26 11 13 Q3 26 Skagi ÍV Fossar VÍS 244 241 234 233 232 644 715 705 735 596 49 72 114 1,350 Q3 25 50 214 119 1,535 Q4 25 49 124 126 1,535 Q1 26 49 113 125 1,519 Q2 26 48 66 130 1,344 Q3 26 2,229 2,632 2,540 2,540 2,184 Insurance contract operating expenses Investments and other insurance costs Financial Services costs Centralized supporting units and eliminations Amortization of intangible assets Salary and related Other Depreciation • Group operating costs of 2,184m in the quarter decreased by 2% YoY while YTD cost increased by 1.4% well below inflation • Salary and related expenses down by ~ 100m YoY in the quarter and remain flat YTD despite contractual wage increases and severance payments • Insurance contract operating expenses in the quarter stay flat YoY despite 8% revenue growth, with the expense ratio down to its all - time best 14.9% • Structural changes reduced Financial Services costs by 7% YoY in the quarter amounting to 56m • Group FTEs 232 in Q3, down from 244 YoY, with most of the reduction taking place in VÍS 16 All amounts are in ISKm unless stated otherwise.
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Solvency ratio and inv. bank capital Group solvency strengthened as equity r is reduced Group s olvency ratio 1 Fossar - c apital ratio Fossar - c apital and requirement 2.5% 2.5% 8.4% 8.0% Min Cap Req Target Min 30.9.2026 Countercyclical capital buffer Capital conservation buffer Pillar 2 Pillar 1 21.4% 21.4% 25.8% Capital base Capital requirement 2,988 2,479 1.40 Q3 25 1.44 Q4 25 1.44 Q1 26 1.48 Q2 26 1.53 Q3 26 1.27 Q3 25 1.31 Q4 25 1.27 Q1 26 1.30 Q2 26 1.35 Q3 26 Insurance s olvency ratio 1 Solvency position • The Group solvency ratio was 1.35 and VÍS’s solvency ratio 1.53 at the end of the quarter, both remaining strong and well above internal targets and limits. • Lower equity exposure reduced the equity r capital requirement from 8.1bn to 6.2bn YTD • Dividend and share repurchase YTD amount to 2.0bn • Own funds are within target policy levels Fossar capital position • Fossar capital ratio of 25.8%, compared with a regulatory requirement of 21.4% • Fossar capital position is ~500m above capital requirement Capital allocation • Capital allocation within the Group is continuously optimised to support internal and external growth, in line with a target dividend payout ratio of 40% of profits 17 1. Solvency ratios are presented on a post - dividend and share repurchase basis. All amounts are in ISKm unless stated otherwise.
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Financial targets 2026 18 • Core operations profit before tax of 2.6bn YTD already above the full year target • Combined ratio is expected at the favourable end of the outlook range, <91.5% target • The target of full - year Financial Services revenue of > 2,900m is currently underperforming and is expected at the lower end of the outlook range by the end of year KPI Target and Outlook FY 2026 Status Group ROE >15% ∎ Core operations PBT >2,400m Insurance Combined ratio <91,5% 90 – 93% Revenue growth >7% Financial Services Financial Services revenue >2,900m 2,700 – 3,200m ∎ AuM >270bn ∎ Investments Investment return >9.5% ∎ Target currently on track or outperforming Target currently underperforming ∎ 18 9M performance and full year outlook 1. Investment return target relates to projected return on insurance investment assets as set out at beginning of the year. Devi ati ons will not be disclosed . All amounts are in ISKm unless stated otherwise.
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Insurance continues to perform strongly with solid premium growth and an all - time low combined ratio Decisive action taken in Financial Services to adjust the cost base in response to lower fee income Investment performance ahead of benchmark in challenging equity markets weighing on quarterly investment income Group structure simplified for lower cost base, clearer accountability and stronger governance Operating efficiency expected to improve as central functions and core activities are streamlined across the Group 19 Key takeaways:
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Appendix: Further information
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Q3 Business unit financials Insurance Financial Services Investments
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Insurance Life insurance revenue Insurance revenue Combined ratio, % Investments in scalability deliver the best cost ratio since 2007 Insurance service result Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 8,369 8,205 8,048 8,426 9,042 +8.0% Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 621 654 639 662 688 +10.8% Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 1,471 50 138 1,446 1,731 +17.6% 16.1 66.3 Q3 25 18.7 80.7 Q4 25 19.1 79.2 Q1 26 18.0 64.8 Q2 26 14.9 66.0 Q3 26 82.4 99.4 98.3 82.8 80.9 - 1.5pp Claims and reinsurance Operating c ost 22 • Insurance revenue grew by 8.0% YoY in Q3 2026 to 9.0bn, while operating costs remained broadly flat • Life insurance revenue increased by 10.8% YoY to ~ 700m, driven by steady growth in the customer base • Combined ratio improved by 1.5pp YoY to 80.9%, the lowest level for 20 years, reflecting strong underlying performance • A scalable platform built to serve more customers delivers the best cost ratio of 14.9% since 2007 • Insurance service result increased by 17.6% YoY to 1.7bn in Q3 2026 • Customer satisfaction and service metrics continued to improve, underlining VÍS’s focus on excellent service and strengthening long - term customer relationships All amounts are in ISKm unless stated otherwise.
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Assets under management, ISKbn Financial Services revenue Excluding intra - group adj. Financial Services Composition of Financial Services income, % Excluding financial income Soft revenue quarter in certain segments of the business 700 976 714 666 581 Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 - 16.9% 29 27 26 25 25 41 35 38 47 43 30 38 36 28 32 Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 Other (CIB) Asset Management Capital Markets 236 253 251 251 245 Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 +3.8% 29 236 - 20 - 95 - 58 Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 - 87m Financial Services profit before tax • Financial Services revenue down by 17% YoY in Q3 and 11,4% for the first 9 months YoY, affected by negative financial income (101m YoY) • Composition changes in 9M 2026 result in a 13% increase in Financial Services revenue from Asset Management YoY, increasing its share of the segment’s revenue • Corporate Finance and Investment Banking (CIB) revenue down 1% LTM, as weaker corporate finance fees are partly offset by higher net interest income • Capital Markets (CM) revenue down 8% LTM due to challenging market conditions and weaker trading activity • O ne - off costs amounting to 120m YTD • Segment loss before tax of 58m in Q3, an 87m YoY deterioration • Group AuM of 245bn at end of Q3 2026 (+ 3 .8% YoY) 23 All amounts are in ISKm unless stated otherwise.
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• Investment income amounted to 237m in Q3, down by 207m YoY • Investment income of 1.0bn YTD, with return of 2.0%, increased by 570m YoY, driven by the bond portfolio • Equity markets continue to affect investment return, masking otherwise solid underlying performance • Bonds and cash contributed 527m in the quarter, partly offsetting a negative return of 436m on listed equity • Listed equity reduced to 11.6% of total portfolio, limiting exposure to weak equity markets • The current interest rate environment drives the high insurance finance expenses of totalling 1.4bn in the first nine months Investments Investment income 1 Net financial income breakdown of investments , Q3 2026 Return on investment assets 1 Investment income from assets , Q3 2026 Solid bond returns offset weak equity markets in the quarter Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 443 1,924 366 396 237 - 207m 38 237 161 328 436 125 Cash Gov. & muni bonds Other bonds Listed equity Unlisted equity 21 Other investment income Gross Financial Income 237 - 231 Investment income 245 Insurance contracts finance expenses 148 Other finance costs 74 Operating expenses Net financial investment income 24 1. The presentation of comparative figures has been revised. 0.9% Q3 25 4.0% Q4 25 0.7% Q1 26 0.8% Q2 26 0.5% Q3 26 All amounts are in ISKm unless stated otherwise.
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Investment portfolio Asset allocation shift in Q3 2026 Bonds - duration and CPI - linked ratio p. quarter Asset allocation Portfolio positioned defensively with listed equity reduced further in the quarter 1. The investment portfolio consists of insurance investment assets of VÍS and Lífís . Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 48.0 49.6 50.9 50.8 51.9 +8.0% 480 - 429 - 234 Cash Gov.& muni bonds Other bonds Listed equity Unlisted equity 1 1,563 34.9% 29.1% 2.3% Q3 25 14.6% 19.5% 35.2% 27.8% 2.9% Q4 25 14.6% 15.3% 42.5% 22.6% 5.0% Q1 26 13.2% 13.7% 42.7% 25.9% 4.1% Q2 26 Unlisted equity Listed equity Other bonds Gov.& muni bonds Cash Q3 26 12.9% 11.6% 42.8% 28.6% 4.1% 20.5% 13.6% 2023 2024 2025 2026 38.8 2.7 CPI linked Duration • Insurance investment assets increased to 51.9bn in Q3 2026, an 8% rise vs. Q3 2025 • During Q3 2026 there was a rotation from listed equities into government & other bonds, and unlisted equity exposure was selectively reduced, in line with a more defensive positioning • Bond portfolio duration has been reduced in recent quarters to 2.7 years • Listed equity exposure has been gradually reduced over the last quarters , while the share of other bonds has increased • Listed equity exposure at 11.6% today, well below target portfolio Investment assets 1 , ISKbn 25 25 All amounts are in ISKm unless stated otherwise.
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Investment portfolio – additional information Bonds – 10 largest and return in quarter Equity – 10 largest and return in quarter Allocation of bonds and equity Breakdown of asset allocation and major positions in the portfolio Unlisted assets – 5 largest Bonds & Cash 39 bn Equity 13bn Total Portfolio 52 bn Target Portfolio Bonds 67.5% / Equity 32.5% 1.2% 1.9% 0.8% 0.7% 1.9% - 0.9% 0.9% 0 .6% 2.6 % 2.4 % 0.0% - 8.3 % 8.2 % - 7.6 % 0.0 % - 0.8 % 1.4% - 1.7 % - 0.5% - 23.4% 38% 44% 13% 5% Gov. & Muni bonds Other domestic bonds Foreign Cash 47% 53% Listed equity Unlisted equity 24,5% 75,5% Equity Bonds RIKB 31 0124 RIKB 28 1115 SIVSKBR RIKS 29 0917 RIKB 27 0415 SIVFI RIKS 30 0701 ISB 28 1221 SACF ARION 28 1215 2,938 2,648 2,482 2,251 1,376 1,151 971 952 815 730 VEX I A SIVHLBR BLÁA LÓNIÐ IVIQS CORI IV EQS NEW MOUNTAIN VI ISB VPE AN A JBTM US 863 854 838 829 827 669 559 555 447 427 Value 30.09.2026 Value 30.06.2026 Difference Share price 30.09.2026 838 775 +63 95.0 827 827 0 13.7 447 449 - 2 98.7* 422 437 - 15 83.5** 374 374 0 25.5 * indirect via VPE AN (VEX) | **indirect via Nox Holding ehf. 26 All amounts are in ISKm unless stated otherwise.
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Fossar’s market share grows in a declining market with cost actions under way Equity market turnover and Fossar market share, ISKbn and %, 2025 - 2026 • Lower market activity weighed on Fossar’s revenue with equity market turnover down by 34% YoY in Q3 • Actions have been taken to reduce cost base with annualised savings of ~180m based on Q3 run rate (~45m) • Cost actions have started to deliver with further saving in the pipeline • Full effects of cost reductions will materialize in 2027 • #1 equity broker on Nasdaq Iceland in Q3 with 20.7% market share (+2.4pp YoY), reflecting a strong capital markets position • Continued cost awareness in current market environment • Fossar is well capitalized with room for balance sheet growth 27 Q1 YoY Q2 YoY Q3 YoY - 41% - 16% - 50% - 5% - 34% - 25% Market turnover YoY Fossar turnover YoY Share +3.9pp Share +7.7pp Share +2.4pp Change in equity turnover YoY, market vs. Fossar ~180m Annnualised cost savings , based on Q3 operating costs YoY FTEs 26 FTEs reduction of 5 compared to last year 701 617 341 450 415 311 227 15% 9% Q1 25 9% Q2 25 18% Q3 25 Q4 25 13% Q1 26 16% Q2 26 21% Q3 26 Fossar market share Market turnover All amounts are in ISKm unless stated otherwise.
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Fossar Investment Bank – balance sheet Strong balance sheet with majority of assets in listed assets Balance sheet 30.09.2026 30.06.2026 Δ% Assets Fixed income securities 5,676 5,212 9% Shares and other variable income securities 901 236 282% Securities used for hedging 1,169 4,408 - 73% Cash 968 888 9% Loans to customers 11,185 10,942 2% Claims and other assets 1,017 1,389 - 27% Total assets 20,915 23,075 - 9% Liabilities and Equity Borrowings 1,000 3,800 - 74% Money market deposits 7,163 6,544 9% Bills and marketable instruments 8,230 8,215 0% Other liabilities 1,316 1,221 - 8% Total Liabilities 17,709 19,779 - 10% Total Equity 3,206 3,296 - 3% Total Liabilities and Equity 20,915 23,075 - 9% LCR ratio and net stable funding ratio Liquidity coverage ratio (LCR) 30.09.2026 30.06.2026 High - quality liquid assets 3,871 3,156 Net outflow 962 475 Liquidity coverage ratio (LCR) 402% 664% Minimum regulatory requirement 100% 100% Net stable funding ratio (NSFR) 30.09.2026 30.06.2026 Available stable funding 8,752 6,651 Required stable funding 4,310 4,812 Net stable funding ratio (NSFR) 203% 138% Minimum regulatory requirement 100% 100% 28 All amounts are in ISKm unless stated otherwise.
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The information in this presentation is based on sources that Skagi hf . (“ Skagi ” or “the Company“) deems reliable at a given time but it is not possible to guarantee that they are infallible . Skagi is not responsible for the quality, accuracy, or reliability of information in this presentation and Skagi shall not be liable for damages that can be attributed to the fact that the information turns out to be inaccurate, unreliable, or insufficient . All information in this presentation is property of Skagi . Neither the presentation nor the information it contains can be copied, altered, or distributed in any way, either in part or full . This presentation is intended for information purposes only and is not in any way intended as part of or basis for decision making of its recipients . Recipients should not in any way interpret the content of this presentation as a guarantee, instructions or investment advice . Skagi is not obligated in any way to provide recipients of this presentation with further information about the company or update or amend the presentation if the underlying information changes . The future outlook of Skagi is subject to various r - and uncertainty factors, which can mean that actual future results could differ considerably from the statements in this presentation . External factors, such as supply of capital, laws and regulations coming into effect, impact of regulatory authorities can all have substantial effect . Skagi reiterates that the recipients of this presentation should not rely on statements in this presentation later as they are only applicable on the date of publication . Any forward - looking statements are fully valid with respect to this disclaimer . By receiving this presentation, its recipients confirm that they are bound by the above disclaimers and limitations . Disclaimer