PROTECTOR FORSIKRING ASA Interim report
Q2 and H1 2024
Protector Forsikring ASA
(Unadited) 11 July 2024
Highlights Q2 and H1 2024
Combined ratio: | ||
Q2: | 94,5 % | (83,9) |
H1: | 92,9 % | (88,1) |
Premium growth (local currencies):
Q2: | 16 % | (56) |
H1: | 12 % | (34) |
Insurance service result (MNOK):
Q2: | 157 | (384) |
H1: | 398 | (520) |
Total investment return (MNOK):
Q2: | 242 | (-38) |
H1: | 614 | (484) |
CR 94.5% and 16% volume growth (local currencies) for the quarter
Protector Forsikring ASA recorded a profit of NOK 254m (219) for the quarter.
The insurance service result was NOK 157m (384) corresponding to a combined ratio of 94.5% (83.9). The result is driven by good results in the UK, Sweden and Norway while Denmark had a poor result primarily caused by two large claims, including the fire in Denmark's Old Stock Exchange.
Net income from assets under management was NOK 271m (-180) or 1.3% (-1). The total investment return including insurance finance income or expenses was NOK 242m (-38).
In Q2, gross written premiums amounted to NOK 3,551m, up 16% (16% in local currencies). The growth is driven by the UK and Norway. For the half year gross written premium came in at NOK 7,981m up 14% (12% in local currencies).
In the first half year, the company recorded a profit of NOK 710m (845). The insurance service result was NOK 397m (520) corresponding to a combined ratio of 92.9% (88.1). The total investment return was NOK 614m (484).
The Board has utilized its authorisation granted by the Annual General Meeting 11 April 2024, and has decided to distribute a dividend of NOK 165m, corresponding to NOK 2.00 per share.
Profit (MNOK):
Q2: | 254 | (219) | At the end of Q2 the SCR-ratio was 191% (192), post dividends. |
H1: | 710 | (845) | |
Earnings per share (NOK): | |||
Q2: | 3,1 | (2,7) | |
H1: | 8,6 | (10,3) |
INTERIM REPORT Q2 2024 | PROTECTOR FORSIKRING ASA | PAGE 2
Income overview
Q2 | Q2 | H1 | H1 | FY | ||
NOKm | 2024 | 2023 | 2024 | 2023 | 2023 | |
Gross written premium | (1) | 3 551 | 3 057 | 7 981 | 7 001 | 10 423 |
Insurance revenue | 2 865 | 2 387 | 5 600 | 4 374 | 9 386 | |
Insurance claims expenses | (2 225) | (1 556) | (4 315) | (3 387) | (7 182) | |
Insurance operating expenses | (304) | (270) | (594) | (476) | (1 011) | |
Insurance service result before reinsurance contracts held | 335 | 562 | 691 | 511 | 1 193 | |
Net result from reinsurance contracts held | (178) | (178) | (293) | 9 | (113) | |
Insurance service result | 157 | 384 | 398 | 520 | 1 080 | |
Net income from investments | 271 | (170) | 621 | 465 | 1 328 | |
Net insurance finance income or expenses | (29) | 132 | (7) | 19 | (384) | |
Other income/expenses | (52) | (16) | (91) | (32) | (91) | |
Profit/(loss) before tax | 348 | 330 | 921 | 972 | 1 933 | |
Tax | (94) | (104) | (211) | (135) | (439) | |
Discontinued operations | - | (8) | - | 8 | 15 | |
Profit/(loss) | 254 | 219 | 710 | 845 | 1 509 | |
Large losses, net of reinsurance | (1) | 12,5 % | 4,7 % | 9,5 % | 3,1 % | 5,9 % |
Run-off gains/losses, net of reinsurance | (1) | -2,1 % | -2,9 % | -0,2 % | -0,6 % | 0,3 % |
Change in risk adjustment, net of reinsurance | (1) | 1,9 % | 2,0 % | 1,8 % | 1,5 % | 1,5 % |
Discounting effect, net of reinsurance | (1) | -4,4 % | -6,3 % | -4,3 % | -4,8 % | -4,2 % |
Loss ratio, gross | (2) | 77,7 % | 65,2 % | 77,0 % | 77,4 % | 76,5 % |
Net reinsurance ratio | (3) | 6,2 % | 7,5 % | 5,2 % | -0,2 % | 1,2 % |
Loss ratio, net of reinsurance | (4) | 83,9 % | 72,6 % | 82,3 % | 77,2 % | 77,7 % |
Cost ratio | (5) | 10,6 % | 11,3 % | 10,6 % | 10,9 % | 10,8 % |
Combined ratio | (6) | 94,5 % | 83,9 % | 92,9 % | 88,1 % | 88,5 % |
Retention rate | (7) | 94,6 % | 93,1 % | 94,5 % | 93,5 % | 93,8 % |
(1) Defined as alternative performance measure (APM). APMs are described in a separate document published at protectorforsikring.no/Investor.
(2) | "Insurance claims expenses" in % of "Insurance revenue" | (5) | "Insurance operating expenses" in % of "Insurance revenue" |
(3) | "Net result from reinsurance contracts held" in % of "Insurance revenue" | (6) | "Loss ratio, net of reinsurance" + "Cost ratio" |
(4) | "Loss ratio, gross" + "Net reinsurance ratio" | (7) | ("Insurance revenue" + "Reinsurance premium") / "Insurance revenue" |
INTERIM REPORT Q2 2024 | PROTECTOR FORSIKRING ASA | PAGE 3
Premiums
In Q2, gross written premiums increased by 16% or NOK 494m to a total of NOK 3,551m . The growth is driven by the UK and Norway. April 1st is the largest inception date in the UK. 94% of the growth in the quarter came from the UK mainly driven by Public and Housing. In local currencies the total growth was 16%, whereof the growth in the UK was 20% and in the Nordics 8%. Both Sweden and Denmark had negative growth this quarter. Sweden, due to a consumer scheme run-off, and Denmark, due to technicalities and general profitability measurers. The renewal rate for the total portfolio was 101% (106) supported by price increases to counter claims inflation.
Gross written premium (NOKm) | Q2 2024 | Q2 2023 | Growth | Growth | |
(LCY) | |||||
UK | 2 387 | 1 925 | 462 | 24 % | 20 % |
Sweden1 | 556 | 635 | (79) | -12 % | -6 % |
Norway | 505 | 373 | 133 | 36 % | 36 % |
Denmark | 103 | 125 | (22) | -18 % | -1 % |
Protector | 3 551 | 3 057 | 494 | 16 % | 16 % |
¹Includes Finland. The segment change applies from Q1 2024. Comparative figures have been restated
In H1, gross written premiums totalled NOK 7,981m (7,001), representing a 14% growth (12% in local currencies). The renewal rate was 99% (103).
H1 | H1 | Growth | |||
Gross written premium (NOKm) | 2024 | 2023 | Growth | (LCY) | |
UK | 2 816 | 2 294 | 521 | 23 % | 18 % |
Sweden1 | 2 055 | 2 062 | (7) | 0 % | -1 % |
Norway | 1 855 | 1 539 | 315 | 20 % | 20 % |
Denmark | 1 255 | 1 105 | 150 | 14 % | 12 % |
Protector | 7 981 | 7 001 | 980 | 14 % | 12 % |
¹Includes Finland. The segment change applies from Q1 2024. Comparative figures have been restated
INTERIM REPORT Q2 2024 | PROTECTOR FORSIKRING ASA | PAGE 4
Results
In Q2, the profit was NOK 254m (219). The insurance service result was NOK 157m (384), corresponding to a combined ratio of 94.5% (83.9). The insurance service result was driven by good results in the UK, Sweden and Norway, adversely impacted by large claims in Denmark.
The loss ratio net of reinsurance ended at 83.9% (72.6). Large losses amounted to NOK 358m, or 12.5% (4.7), consisting of 7 large losses on property. Sweden had run-off gains of NOK 56m mainly driven by property. The total run-off gains for the company ended at 2.1% (2.9).
The cost ratio amounted to 10.6% (11.3). The decrease is driven by the top-line growth. Cost ratio excluding commissions was 6.0% (7.1).
Loss ratio, net | Cost ratio | Combined ratio | ||||
Q2 2024 | Q2 2023 | Q2 2024 | Q2 2023 | Q2 2024 | Q2 2023 | |
UK | 73,2 % | 54,6 % | 10,8 % | 13,7 % | 84,0 % | 68,3 % |
Sweden1 | 70,6 % | 82,0 % | 14,6 % | 14,0 % | 85,1 % | 96,1 % |
Norway | 81,2 % | 83,6 % | 7,6 % | 5,5 % | 88,8 % | 89,1 % |
Denmark | 145,6 % | 88,5 % | 7,6 % | 7,2 % | 153,2 % | 95,7 % |
Protector | 83,9 % | 72,6 % | 10,6 % | 11,3 % | 94,5 % | 83,9 % |
¹Includes Finland. The segment change applies from Q1 2024. Comparative figures have been restated
For H1, the profit totalled NOK 710m (845). The insurance service result was NOK 384m (520), corresponding to a combined ratio of 92.9% (88.1). The insurance service result is impacted by NOK 399m increase in large claims levels compared with H1 2023. The underlying claims ratio adjusted for large claims, run-off, discounting and risk adjustment is slightly improved compared to H1 2023.
The company had run-off gains of 0.2% (0.6). The loss ratio (gross) was 77.0% (77.4), while the loss ratio net of reinsurance ended at 82.3% (77.2). The cost ratio excluding commissions was 6.2% (6.8).
Loss ratio, net | Cost ratio | Combined ratio | ||||
H1 2024 | H1 2023 | H1 2024 | H1 2023 | H1 2024 | H1 2023 | |
UK | 71,8 % | 59,4 % | 11,4 % | 13,5 % | 83,2 % | 72,9 % |
Sweden1 | 77,0 % | 84,6 % | 13,7 % | 13,2 % | 90,7 % | 97,8 % |
Norway | 87,3 % | 84,6 % | 7,2 % | 5,9 % | 94,5 % | 90,5 % |
Denmark | 116,8 % | 93,7 % | 7,5 % | 7,0 % | 124,3 % | 100,7 % |
Protector | 82,3 % | 77,2 % | 10,6 % | 10,9 % | 92,9 % | 88,1 % |
¹Includes Finland. The segment change applies from Q1 2024. Comparative figures have been restated
INTERIM REPORT Q2 2024 | PROTECTOR FORSIKRING ASA | PAGE 5
Investments
The assets under management amounted to a total of NOK 22,261m on 30 June, up 5.0% compared to the portfolio at the end of Q1 2024.
In Q2, the investment activities yielded a total return of NOK 271m (or 1.3%) compared to a negative return of NOK 180m (or -1.0%) in Q2 2023. Equities including put options accounted for a NOK 10m gain (or 0.3%) against NOK 157m loss (or -5.4%) in Q2 2023. The return on the fixed income portfolio totalled to NOK 261m (or 1.5%) against a NOK 23m loss (or -0.2%) in Q2 2023.
In H1, the investment activities yielded a total return of NOK 621m (or 3.0%) compared to NOK 481m (or 3.1%) in H1 2023. Equities accounted for a NOK 201m gain (or 6.7%) including put options against a NOK 270m gain (or 11.1%) in H1 2023. The return on the fixed income portfolio totalled to NOK 420m gain (or 2.4%) against a NOK 211m gain (or 1.6%) in H1 2023.
At the end of Q2, 14.1% of Protector's financial assets were invested in equities, against 14.4% at the end of Q1 2024.
Approximately NOK 4.1bn of the financial assets were allocated to high yield securities at the end of Q2, down from NOK 4.7bn at the end of Q1 2024.
The insurance finance result impacted the total investment return negatively with NOK -29m in Q2 2024 and NOK -7m in H1, against a positive effect of NOK 132m in Q1 2023 and NOK 19m in H1 2023. The fluctuations are mainly due to interest curve changes.
Equity and capital position
At the end of Q2, the SCR-ratio was 191% post dividends, compared to 196% at the end of Q1 2024. The company's long-term objective is to maintain a SCR-ratio (calculated according to the Solvency II regulations) above 150%.
The company's equity amounted to NOK 4 688m, an increase of NOK 70m compared to end of Q1 2024. Dividend paid out 10 May 2024 has reduced the equity by NOK 165m.
Protector holds a BBB+ Long-Term Issuer Credit rating from A.M. Best. Outlook is positive.
Dividend
Based on the company's strong financial position, competitive position in the market and dividend policy, the Board has utilized its authorisation granted by the Annual General Meeting 11 April 2024, and has decided to distribute a special dividend of NOK 165m, corresponding to NOK 2.00 per share. The decided dividend is included in other equity and the payment will take place on 23 July 2024.
INTERIM REPORT Q2 2024 | PROTECTOR FORSIKRING ASA | PAGE 6
Prospects
The underlying profitability is good, and with continued price adjustments to counter claims inflation, the insurance service result is expected to remain on a good level.
The claims development, and the inherent volatility of capital markets continue to be the most important risk factors that could affect the company's profit in 2024. There is normally uncertainty related to future market conditions, but the Board is of the opinion that the company is well equipped to meet the competition going forward.
Oslo, 11 July 2024
The Board of Directors of Protector Forsikring ASA
INTERIM REPORT Q2 2024 | PROTECTOR FORSIKRING ASA | PAGE 7
Income statement
Q2 | Q2 | H1 | H1 | FY | |
NOKm | 2024 | 2023 | 2024 | 2023 | 2023 |
Insurance revenue | 2 865 | 2 387 | 5 600 | 4 374 | 9 386 |
Insurance claims expenses | (2 225) | (1 556) | (4 315) | (3 387) | (7 182) |
Insurance operating expenses | (304) | (270) | (594) | (476) | (1 011) |
Insurance service result before reinsurance contracts held | 335 | 562 | 691 | 511 | 1 193 |
Reinsurance premium | (155) | (165) | (310) | (284) | (584) |
Amounts recovered from reinsurance | (23) | (13) | 16 | 292 | 471 |
Net result from reinsurance contracts held | (178) | (178) | (293) | 9 | (113) |
Insurance service result | 157 | 384 | 398 | 520 | 1 080 |
Interest income and dividend etc. from financial assets | 249 | 221 | 411 | 348 | 662 |
Net changes in fair value of investments | (297) | (608) | (219) | (422) | (7) |
Net realised gain and loss on investments | 342 | 233 | 481 | 575 | 736 |
Interest expenses and expenses related to investments | (23) | (15) | (52) | (36) | (63) |
Net income from investments | 271 | (170) | 621 | 465 | 1 328 |
Insurance finance income or expenses - change in financial assumptions | 55 | 201 | 153 | 144 | (160) |
Insurance finance income or expenses - unwinding | (76) | (61) | (144) | (121) | (273) |
Insurance finance income or expenses | (21) | 140 | 9 | 23 | (433) |
Reinsurance finance income or expenses - change in financial assumptions | (10) | (15) | (19) | (8) | 27 |
Reinsurance finance income or expenses - unwinding | 9 | 8 | 17 | 18 | 36 |
Reinsurance finance income or expenses - other income and expenses | (7) | (1) | (15) | (14) | (14) |
Reinsurance finance income or expenses | (8) | (8) | (17) | (4) | 49 |
Net insurance finance income or expenses | (29) | 132 | (7) | 19 | (384) |
Total investment return | 242 | (38) | 614 | 484 | 944 |
Other income/expenses | (52) | (16) | (91) | (32) | (91) |
Profit/(loss) before tax | 348 | 330 | 921 | 972 | 1 933 |
Tax | (94) | (104) | (211) | (135) | (439) |
Discontinued operations | - | (8) | - | 8 | 15 |
Profit/(loss) for the period | 254 | 219 | 710 | 845 | 1 509 |
Earnings per share (basic and diluted) | 3,1 | 2,7 | 8,6 | 10,3 | 18,3 |
INTERIM REPORT Q2 2024 | PROTECTOR FORSIKRING ASA | PAGE 8
Statement of comprehensive income
Q2 | Q2 | H1 | H1 | FY | |
NOKm | 2024 | 2023 | 2024 | 2023 | 2023 |
Profit/(loss) for the period | 254 | 219 | 710 | 845 | 1 509 |
Other comprehensive income which can subsequently be reclassified as profit or loss | |||||
Exchange differences from foreign operations | (34) | 3 | 43 | 123 | 105 |
Taxes on components of comprehensive income | 9 | (1) | (10) | (31) | (27) |
Total other comprehensive income | (25) | 2 | 33 | 92 | 78 |
Comprehensive income | 229 | 221 | 743 | 937 | 1 587 |
INTERIM REPORT Q2 2024 | PROTECTOR FORSIKRING ASA | PAGE 9
Statement of financial position
NOKm | 30.06.2024 | 30.06.2023 | 31.12.2023 |
Assets | |||
Financial assets | |||
Loans at amortized cost | 103 | - | 30 |
Shares | 3 106 | 2 688 | 2 889 |
Securities, bonds etc. | 18 470 | 13 995 | 14 631 |
Financial derivatives | 79 | 27 | 265 |
Bank deposits | 573 | 662 | 493 |
Total financial assets in investment portfolio | 22 331 | 17 372 | 18 307 |
Cash and bank deposits | 163 | 46 | 324 |
Other receivables | 72 | 58 | 52 |
Total operational financial assets | 235 | 105 | 376 |
Reinsurance contract assets | 1 256 | 1 170 | 1 093 |
Intangible assets | 114 | 103 | 106 |
Tangible fixed assets | 95 | 138 | 113 |
Total prepaid expenses | 310 | 366 | 224 |
Assets discontinued operations | - | 517 | 655 |
Total non-financial assets | 1 775 | 2 295 | 2 192 |
Total assets | 24 341 | 19 772 | 20 874 |
INTERIM REPORT Q2 2024 | PROTECTOR FORSIKRING ASA | PAGE 10
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Protector Forsikring ASA published this content on 11 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 July 2024 16:32:06 UTC.
