PROTECTOR FORSIKRING ASA INTERIM REPORT Q1 2024
PROTECTOR FORSIKRING ASA
(UNAUDITED) 24 APRIL 2024
INTERIM REPORT Q1 2024 | PROTECTOR FORSIKRING ASA | PAGE 1
Highlights Q1 2024
CR 91.2% and 9% volume growth in local currencies | ||||||||
Combined | Premium growth | |||||||
ratio: | (local currencies): | |||||||
Protector Forsikring ASA recorded a profit of NOK 455.6m (626.2) for the quarter. The result is driven | ||||||||
Q1 2024 | 91,2 % | Q1 2024 | 9 % | by a strong insurance service result in the UK and a good return on investments. | ||||
The insurance service result was NOK 240.4m (135.9) corresponding to a combined ratio at 91.2% | ||||||||
Q1 2023 | 93,2 % | Q1 2023 | 21 % | |||||
(93.2). | ||||||||
Net income from assets under management was NOK 350.1m (660.8) or 1.7% (4.3). | ||||||||
The total investment return including insurance finance income or expenses was NOK 371.8m (521.7). | ||||||||
Insurance service | Total investment | |||||||
result (MNOK): | return (MNOK) | In Q1, gross written premiums amounted to NOK 4 429.5m, up 12% (9% in local currencies) relative to | ||||||
Q1 2023. Underlying growth in gross written premiums for continued business is 14% (11% in local | ||||||||
Q1 2024 | 240,4 | Q1 2024 | 371,8 | currencies). The renewal rate is at 96%, including price increases to counter claims inflation. | ||||
The Board has utilized its authorisation granted by the Annual General Meeting 11 April 2024, and has | ||||||||
Q1 2023 | 135,9 | Q1 2023 | 521,7 | |||||
decided to distribute a special dividend of NOK 164.9m, corresponding to NOK 2.00 per share. | ||||||||
At the end of Q1 2024, the SCR‐ratio was 196% (198), post dividends. | ||||||||
Profit | Earnings per share | |||||||
(MNOK): | (MNOK): | |||||||
Q1 2024 | 455,6 | Q1 2024 | 5,5 | |||||
Q1 2023 | 626,2 | Q1 2023 | 7,6 | |||||
INTERIM REPORT Q1 2024 | PROTECTOR FORSIKRING ASA | PAGE 2
Income overview
NOKm | Q1 | Q1 | FY | ||
2024 | 2023 | 2023 | |||
Gross written premium | (1) | 4 429,5 | 3 943,4 | 10 423,0 | |
Insurance revenue | 2 735,3 | 1 986,2 | 9 385,5 | ||
Insurance claims expenses | (2 089,7) | (1 831,2) | (7 181,7) | ||
Insurance operating expenses | (289,9) | (205,7) | (1 011,2) | ||
Insurance service result before reinsurance contracts held | 355,7 | (50,7) | 1 192,7 | ||
Net result from reinsurance contracts held | (115,3) | 186,6 | (112,8) | ||
Insurance service result | 240,4 | 135,9 | 1 079,9 | ||
Net income from investments | 350,1 | 635,1 | 1 328,0 | ||
Net insurance finance income or expenses | 21,7 | (113,4) | (383,9) | ||
Other income/expenses | (39,2) | (16,0) | (90,6) | ||
Profit/(loss) before tax | 573,0 | 641,5 | 1 933,5 | ||
Tax | (117,4) | (31,3) | (439,2) | ||
Discontinued operations | - | 15,9 | 15,1 | ||
Profit/(loss) | 455,6 | 626,2 | 1 509,3 |
Large losses, net of reinsurance Run-off gains/losses, net of reinsurance Change in risk adjustment, net of reinsurance Discounting effect, net of reinsurance
Loss ratio, gross
Net reinsurance ratio
Loss ratio, net of reinsurance
Cost ratio
Combined ratio
Retention rate
(1) | 6,6 % | 1,0 % | 5,9 % |
(1) | 1,8 % | 2,2 % | 0,3 % |
(1) | 1,7 % | 0,8 % | 1,5 % |
(1) | -4,1 % | -3,0 % | -4,2 % |
(2) | 76,4 % | 92,2 % | 76,5 % |
(3) | 4,2 % | -9,4 % | 1,2 % |
(4) | 80,6 % | 82,8 % | 77,7 % |
(5) | 10,6 % | 10,4 % | 10,8 % |
(6) | 91,2 % | 93,2 % | 88,5 % |
(7) | 94,3 % | 94,0 % | 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 Q1 2024 | PROTECTOR FORSIKRING ASA | PAGE 3
Premiums
Gross written premiums increased by 12% or NOK 486.1m to a total of NOK 4 429.5m in Q1 2024. In local currencies the growth was 9%. Adjusted for technicalities and run-off of Swedish consumer schemes, growth in Q1 is 14% (11% in LCY). All segments contribute to the growth, but new sales have been slow within Commercial in the UK and Sweden.
On company level, the renewal rate was 96% (102). The retention rate for Q1 2024 was 94.3% (94.0).
The first quarter is the largest inception quarter in Scandinavia, and in January the company experienced 16% growth in local currencies driven by high renewal rates in all segments. April 1st is the largest inception date in the UK; gross written premiums grew NOK 477m (28% in local currencies) this year.
Gross written premium (NOKm) | Q1 2024 | Q1 | 2023 | Growth | Growth | ||
(LCY) | |||||||
UK | 429,0 | 369,4 | 59,6 | 16 % | 8 % | ||
Sweden (1) | 1 499,1 | 1 | 427,3 | 71,8 | 5 % | 2 % | |
Norway | 1 349,1 | 1 | 166,5 | 182,6 | 16 % | 16 % | |
Denmark | 1 152,3 | 980,2 | 172,1 | 18 % | 13 % | ||
Protector | 4 429,5 | 3 | 943,4 | 486,1 | 12 % | 9 % |
(1) Finland has been included in segment Sweden from Q1 2024 and comparative figures have been restated accordingly.
10 %
26 %
GWP
Q1 34 %
2024
30 %
UK | Sweden (1) | Norway | Denmark | |||||
INTERIM REPORT Q1 2024 | PROTECTOR FORSIKRING ASA | PAGE 4
Results
In Q1 2024, Protector Forsikring ASA recorded a profit of NOK 455.6m (626.2). The insurance service result was NOK 240.4m (135.9), corresponding to a combined ratio of 91.2% (93.2). The insurance service result was driven mainly by UK property. The results was adversely impacted by motor insurance in all segments. The poor motor result in the Nordics derives from a harsh winter with increased claims frequency. Rates has increased more than inflation. Within UK motor the result is influenced by both higher frequency and inadequate rate adjustments. We maintain discipline in renewals and new sales, resulting in a low hit ratio.
Loss ratio, net | Cost ratio | Combined ratio | |||||
Q1 2024 | Q1 2023 | Q1 2024 | Q1 2023 | Q1 2024 | Q1 2023 | ||
UK | 70,2 % | 67,1 % | 12,1 % | 13,1 % | 82,3 % | 80,2 % | |
Sweden (1) | 83,1 % | 87,2 % | 12,8 % | 12,4 % | 95,9 % | 99,6 % | |
Norway | 93,8 % | 85,6 % | 6,7 % | 6,3 % | 100,5 % | 91,9 % | |
Denmark | 87,9 % | 99,7 % | 7,4 % | 6,8 % | 95,3 % | 106,6 % | |
Protector | 80,6 % | 82,8 % | 10,6 % | 10,4 % | 91,2 % | 93,2 % |
(1) Finland has been included in segment Sweden from Q1 2024 and comparative figures have been restated accordingly.
In Q1 2024, the company had run-off losses driven by motor and workers' compensation (undiscounted) at 1.8% (net of reinsurance) against run-off losses at 2.2% in Q1 2023. The loss ratio net of reinsurance ended at 80.6% (82.8).
Large losses for Q1 2024 amounted to NOK 181.0m, or 6.6% (1.0), consisting of 8 large loss events across all segments. Approximately half of these were related to storms and extreme weather in the UK, Denmark and Norway.
INTERIM REPORT Q1 2024 | PROTECTOR FORSIKRING ASA | PAGE 5
The cost ratio in Q1 2024 amounted to 10.6% (10.4), affected by premium growth within markets with higher commissions to brokers and agents. Cost ratio excluding commissions was 6.3% (6.3).
Investments
The assets under management amounted to a total of NOK 21 195m on 31 March, up 13.4% compared to the portfolio at the end of 2023.
In Q1 2024, the investment activities yielded a total return of NOK 350.1m (or 1.7%) compared to NOK 660.8m (or 4.3%) in Q1 2023. Equities including put options accounted for a NOK 191.1m gain (or 6.5%) against NOK 426.7m (or 17.3%) in Q1 2023. The return on the fixed income portfolio totalled NOK 159.0m (or 0.9%) against NOK 234.1m (or 1.8%) in Q1 2023.
At the end of Q1 2024, 14.4% of Protector's financial assets were invested in equities, against 16.2% at the end of 2023.
Approximately NOK 4.7bn of the financial assets were allocated to high yield securities at the end of Q1 2024, up from NOK 4.5bn at the end of 2023.
The insurance finance result impacted the total investment return positively with NOK 21.7m in Q1 2024, against a negative effect in Q1 2023 of NOK 113.4m. The fluctuations are mainly due to interest curve changes.
INTERIM REPORT Q1 2024 | PROTECTOR FORSIKRING ASA | PAGE 6
Equity and capital position
At the end of Q1 2024, the SCR-ratio was 196% post dividends, compared to 195% at year-end 2023. 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 4,617.7m, an increase of NOK 89.2m compared to year-end 2023. Dividend paid out 14 February 2024 has reduced the equity by NOK 412.2m.
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 164.9m, corresponding to NOK 2.00 per share. The decided dividend is included in other equity and the payment will take place on 10 May 2024.
Prospects
The underlying profitability is good, and with continued price adjustments to counter claims frequency and 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, 24 April 2024
The Board of Directors of Protector Forsikring ASA
INTERIM REPORT Q1 2024 | PROTECTOR FORSIKRING ASA | PAGE 7
Income statement
NOKm | Q1 | Q1 | FY | ||
2024 | 2023 | 2023 | |||
Insurance revenue | 2 735,3 | 1 986,2 | 9 385,5 | ||
Insurance claims expenses | (2 089,7) | (1 831,2) | (7 181,7) | ||
Insurance operating expenses | (289,9) | (205,7) | (1 011,2) | ||
Insurance service result before reinsurance contracts held | 355,7 | (50,7) | 1 192,7 | ||
Reinsurance premium | (155,0) | (119,0) | (583,7) | ||
Amounts recovered from reinsurance | 39,7 | 305,6 | 470,9 | ||
Net result from reinsurance contracts held | (115,3) | 186,6 | (112,8) | ||
Insurance service result | 240,4 | 135,9 | 1 079,9 | ||
Interest income and dividend etc. from financial assets | 161,7 | 127,4 | 662,3 | ||
Net changes in fair value of investments | 78,6 | 185,6 | (6,6) | ||
Net realised gain and loss on investments | 139,1 | 342,9 | 735,6 | ||
Interest expenses and expenses related to investments | (29,3) | (20,9) | (63,3) | ||
Net income from investments | 350,1 | 635,1 | 1 328,0 | ||
Insurance finance income or expenses - change in financial assumptions | 97,9 | (56,3) | (159,7) | ||
Insurance finance income or expenses - unwinding | (67,7) | (60,7) | (273,2) | ||
Insurance finance income or expenses | 30,2 | (116,9) | (432,9) | ||
Reinsurance finance income or expenses - change in financial assumptions | (8,8) | 7,2 | 27,1 | ||
Reinsurance finance income or expenses - unwinding | 8,2 | 9,7 | 35,6 | ||
Reinsurance finance income or expenses - other income and expenses | (8,0) | (13,3) | (13,7) | ||
Reinsurance finance income or expenses | (8,5) | 3,5 | 49,0 | ||
Net insurance finance income or expenses | 21,7 | (113,4) | (383,9) | ||
Total investment return | 371,8 | 521,7 | 944,2 | ||
Other income/expenses | (39,2) | (16,0) | (90,6) | ||
Profit/(loss) before tax | 573,0 | 641,5 | 1 933,5 | ||
Tax | (117,4) | (31,3) | (439,2) | ||
Discontinued operations | - | 15,9 | 15,1 | ||
Profit/(loss) for the period | 455,6 | 626,2 | 1 509,3 | ||
Earnings per share (basic and diluted) | 5,5 | 7,6 | 18,3 | ||
INTERIM REPORT Q1 2024 | PROTECTOR FORSIKRING ASA | PAGE 8
Statement of comprehensive income
NOKm | Q1 | Q1 | FY | ||
2024 | 2023 | 2023 | |||
Profit/(loss) for the period | 455,6 | 626,2 | 1 509,3 | ||
Other comprehensive income which can subsequently be reclassified as profit or loss | |||||
Exchange differences from foreign operations | 77,8 | 120,3 | 104,8 | ||
Taxes on components of comprehensive income | (19,5) | (30,2) | (26,7) | ||
Total other comprehensive income | 58,4 | 90,1 | 78,1 | ||
Comprehensive income | 514,0 | 716,3 | 1 587,4 | ||
INTERIM REPORT Q1 2024 | PROTECTOR FORSIKRING ASA | PAGE 9
Statement of financial position
NOKm | 31.03.24 | 31.03.23 | 31.12.23 | ||
Assets | |||||
Loans at amortized cost | 30,3 | - | 30,3 | ||
Shares | 3 092,3 | 2 829,2 | 2 888,5 | ||
Securities, bonds etc. | 17 028,6 | 12 038,8 | 14 630,8 | ||
Financial derivatives | 250,6 | 234,7 | 264,6 | ||
Bank deposits | 849,1 | 1 655,8 | 492,6 | ||
Total financial assets in investment portfolio | 21 250,9 | 16 758,5 | 18 306,9 | ||
Cash and bank deposits | 187,0 | 194,8 | 323,6 | ||
Other receivables | 58,5 | 33,8 | 52,2 | ||
Total operational financial assets | 245,5 | 228,6 | 375,8 | ||
Reinsurance contract assets | 1 380,4 | 1 432,9 | 1 093,3 | ||
Intangible assets | 111,4 | 99,7 | 106,3 | ||
Tangible fixed assets | 108,7 | 144,4 | 113,1 | ||
Total prepaid expenses | 259,8 | 341,4 | 224,4 | ||
Assets discontinued operations | - | 744,7 | 654,5 | ||
Total non-financial assets | 1 860,3 | 2 763,2 | 2 191,7 | ||
Total assets | 23 356,7 | 19 750,3 | 20 874,5 | ||
INTERIM REPORT Q1 2024 | PROTECTOR FORSIKRING ASA | PAGE 10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Protector Forsikring ASA published this content on 24 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 April 2024 17:35:04 UTC.
