Protector Forsikring Asa · OSL:PROT
Protector Forsikring Asa — Protector Forsikring Ord — Q4 2024 Earnings Presentation
28 slides from Protector Forsikring Asa's earnings presentation, Jan 30, 2025
Slide 1: Disclaimer
Disclaimer This presentation and the information contained herein have been prepared by and is the sole responsibility of Protector Forsikring ASA (the "Company”). Such information is being provided to you solely for your information and may not be reproduced, retransmitted, further distributed to a
Slide 2: Investor Presentation
Investor Presentation Henrik Høye Chief Executive Officer
Slide 3: Vision, The Challenger, Business Idea
Vision The Challenger Business Idea This will happen through unique relationships, best in class decision- making and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Credible Innovative/Open Bold Committed
Slide 4: Other highlights
Other highlights • 1 January 2025, growth in GWP at 19% in LCY Combined Ratio Combined Ratio • New sales in France accounted for 8%-points (EUR 25m) Gross premiums written Gross premiums written • The Board has decided to distribute a dividend of NOK 329.7m, corresponding to NOK 4.00 per share • The
Slide 5: Premium growth and composition
Premium growth and composition Disciplined underwriting and risk management Gross written premium (GWP) development in MNOK Segment distribution Product distribution 2019 2024 c o sn op ty n o ay nma Comm c a oto A n ty mp oy n ts *Includes Finland 5 t C
Slide 6: Premium growth: FY growth at 15% (LCY)
• FY growth at 15% (LCY) • Renewal rate at 99%, supported by price increases to counter claims inflation • Q4 growth at 30% – Renewal rate at 104% • UK makes up 82% of total growth in GWP this quarter • 1 January 2025 growth in GWP at 19% in LCY • Driven by high renewal rate and entry to French mark
Slide 7: France – Copying a winning formula
France – Copying a winning formula One Team; existing and new people contributing cross-border and function Key HQ & UW functions supporting cross border • Recruit, develop and retain the right people • French personnel undergoing training in Copenhagen and Manchester • Core team already on site in
Slide 8: France – New sales January 2025
France – New sales January 2025 Our selected brokers and clients are welcoming The Challenger • Current in scope market size estimated to be EUR 1.5BN Targeting France from our Paris office • 2/3 within the motor fleet market • 1/3 within municipalities and social housing • Market conditions are man
Slide 9: Quarterly net loss ratio development
Quarterly net loss ratio development Volatility must be expected, even on a company level Protector net loss ratio Net loss ratio Large loss1 Net loss (ex large loss1 and run-off) Run-off 1 Large losses defined as net losses > NOKm 10 9
Slide 10: Large losses and run-off
Large losses and run-off Large Loss % 6.2% 7.2% 5.9% 6.4% 4.5% Run-off % 0.5% 0.9% -0.3% -0.3% 2.0% Nominal run-off (L-axis) Relative run-off (%) * Lines in figures indicate large loss and run-off accumulations within outlined periods 10
Slide 11: Claims update
Claims update • FY large losses1 NOK 851m or 7.2% (550 or 5.9%) • 26 large loss events • Majority property DK and UK • FY run-off gains at 0.9% (losses at 0.3%) • Driven by property and liability • Run-off gains in SE, NO and DK, loss in UK • Q4 large loss NOK 101.5m or 3.2% (269 or 10.2%) • Three l
Slide 12: Quarterly cost ratio development
Quarterly cost ratio development Cost ratio improvement driven by volume growth Cost a o comm ss ons Comm ss ons to o s an a nts n 12
Slide 13: Cost update
Cost update • FY cost ratio at 10.6% (10.8%), 6.4% exclusive of commissions • 4.2 % (4.4%) in commissions • Quality- and development investments > volume growth • Cost allocated towards establishing a new branch is incorporated in ‘ t ncom / p ns s’ • Q4 cost ratio at 11.6% (10.7%), 7.5% exclusive o
Slide 14: Quality Leadership
Quality Leadership Easy to do business with, commercially attractive and trustworthy Why measure quality perceived by brokers? Broker satisfaction index1 • The brokers are our only distribution channel • The relative ranking gives a competitive edge • Learning from surveys and following dialogue is
Slide 15: Key metrics per segment
Key metrics per segment Quarterly volatility must be expected, especially by segment oss p m m n ns anc n s ns anc s c s t Loss a o, oss t ns anc a o Loss a o, n t of ns anc Cost a o oss p m m n ns anc n s ns anc s c s t Loss a o, oss t ns anc a o Loss a o, n t of ns anc Cost a o *Includes Finland 1
Slide 16: Vision, The Challenger, Business Idea
Vision The Challenger Business Idea This will happen through unique relationships, best in class decision- making and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Credible Innovative/Open Bold Committed
Slide 17: Investments
Investments AUM: NOK 22 033m at year-end | Float increasing 22 033 on s s oat 16.3% 83.7% * Protector Forsikring ASA in-sourced investments during 2014 17
Slide 18: Investment performance
Investment performance FY: 4.9% return | Q4: -0.4% return • FY: NOK 1 059m, or 4.9% gain 2024 investment results • Equities: NOK 155m, or 4.8% • Put options: NOK -39m • Bonds: NOK 944m, or 5.1% • Interest rate swaps: NOK -180m • Strong year for Nordic HY bonds s on s • DNB Nordic HY index up 12.1% i
Slide 19: Investment portfolio statistics
Investment portfolio statistics Bond portfolio yield at 5.2%, before cost of risk • Bond portfolio yielding 5.2% (5.8%), before cost of risk Investment portfolio statistics 31.12.24 31.12.23 30.09.24 • Spread -37bps, and underlying ref rate -16bps Size bond & cash eq. (NOKm)2 18 365 15 650 19 087 Av
Slide 20: Vision, The Challenger, Business Idea
Vision The Challenger Business Idea This will happen through unique relationships, best in class decision- making and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Credible Innovative/Open Bold Committed
Slide 21: Profit and loss FY (& Q4 24)
Profit and loss FY 24 (& Q4 24) Profit of NOK 1 539m (1 509) | EPS at NOK 18.7 (18.3) NOKm Q424 Q4 23 FY 24 FY 23 Gross written premium 2688 2.060 12333 10 423 Insurance revenue 3.181 2.646 11783 9386 Insurance claims expenses (2146) (1963) (8 606) (7 182) Insurance operating expenses (370) (282) (1
Slide 22: Balance sheet
Balance sheet SCR ratio1 at 193% SCR ratio composition nanc a ass ts a s 9.000 SCR ratio: 193% an pos ts t ass ts 8.000 scon n op a ons Tier 2 7.000 Tier 1 R Tota ty 6.000 o nat oan cap ta 5.000 ns anc cont act a s a s 4.000 2 %; CD 6 %; Operational t a s 26 %; Market scon n op a ons 3.000 Tier 1 2.
Slide 23: Solvency II
Solvency II SCR ratio at 193% Composition of SCR: Eligible solvency capital: • Net insurance risk 66% • Guarantee provision and proposed dividend subtracted from own funds • Net market risk 26% • Other risks 8% SCR composition and development1 Eligible own funds composition and development1 8.000 8.
Slide 24: Vision, The Challenger, Business Idea
Vision The Challenger Business Idea This will happen through unique relationships, best in class decision- making and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Credible Innovative/Open Bold Committed
Slide 25: Long term (3 years) financial targets
Long term (3 years) financial targets Disciplined growth Combined Ratio Solvency Capital Ratio1 Target < 91% NGAAP IFRS 150% 1 Quarterly assessment of capital position vs. capital need 25
Slide 26: Flexible shareholder distribution policy
Flexible shareholder distribution policy Quarterly assessment of capital position vs. capital need SCR-ratio • Capital distributed over time Solvency ratio zone assessment: 200% • o to a s ‘Green’ f s p of ta insurance growth, risk-taking in investment portfolio, • Shareholder distribution normally
Slide 27: Other highlights
Other highlights • 1 January 2025, growth in GWP at 19% in LCY Combined Ratio Combined Ratio • New sales in France accounted for 8%-points (EUR 25m) Gross premiums written Gross premiums written • The Board has decided to distribute a dividend of NOK 329.7m, corresponding to NOK 4.00 per share • The
Slide 28: Protector Insurance
PROTECTOR insurance
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