The passive is supposed to provide 5% mitigation when procced. All forms of %-based mitigation are calculated multiplicatively, and thus whatever damage you received prior to the bonus should simply be reduced to a flat 0.95x. However, testing shows that it is providing less than 5%.
In the overland, an NPC was hitting me for 859 before the passive, 822 after—a reduction of only 4.3%.
To confirm that this wasn't an unintended interaction with one of the %-mitigation CP stars, I also tested in a non-CP environment, with similar results:
An NPC which was hitting for 733 before the passive, hit for 703 subsequently—a reduction of only 4.1% this time.
The mitigation provided by the passive is simply not being computed correctly.
PC/NA — Daggerfall Covenant — BGs, Kaalgrontiid
Kalazar Chalhoub — Redguard Nord Stamplar
Kalaron Caemor — Altmer Magsorc
Kalahad Cirith — Dunmer Magden