2022 Annual Review & Inflation Shock Impact

Inflation Shock Alberta Inflation Shock Impact Inflation Shock by Coverage (Year over year increase by quarter) 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Auto Physical Damage Auto Bodily Injury Auto Accident Benefit Personal Property Using the data and expert opinion, we estimated the degree to which the inflation shock will impact each coverage. We expect the inflation shock to be greatest for PD/Property and lowest for BI/AB. By overlaying the expected change in CPI over time (slide 3), we estimated the impact of the inflation shock in the future for each coverage. 2022Q1 2022Q2 2022Q3 2022Q4 2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 Line of Business Personal Auto 2024Q2 2024Q3 2024Q4 2025Q1 2025Q2 2025Q3 202SQ4 Bodily Injury Accident Benefit Personal Property 6.3% Assumptions as of May 30, 2022. Impact on the Loss Cost at 202304 Physical Damage Impact of Inflation Shock on Loss Cost 7.4% 7.7% 7.4% 4.5% AVIVA 7

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