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, Business Idea, Main targets and Values
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: FY highlights Q4 highlights
FY highlights • Full IFRS accounting implemented Combined Ratio Combined Ratio • Long-Term Issuer Credit rating of BBB+ affirmed, and outlook revised to positive from stable. Gross premiums written Gross premiums written • Work on French market continues. • A branch application will be submitted sho
Slide 5: Premium growth and composition
Premium growth and composition Disciplined Underwriting and risk management Gross written premium (GWP) development in NOKm • 5-year and 10-year CAGR GWP at 19% Tail distribution Segment distribution Product distribution 2018 35% 2023 52% …of C vo . ot Comm c a op ty Cas a ty m A n ty mp oy n ts n o
Slide 6: FY growth at 47% – Renewal rate at 104%
• FY growth at 47% – Renewal rate at 104% • Low churn and price increases to counter claims inflation • 60% of new sales originating from the UK • Increased new sales in the Nordics (20% increase from 22) • UK growing 84% in 2023 • Market conditions resulting in high hit ratios • Consistent and disc
Slide 7: Profitability development
Profitability development Underwriting discipline yields stable underlying profitability Combined ratio1 Large loss2, run-off & IFRS effects NGAAP IFRS a oss s no NGAAP IFRS sco n n cts s a stm nt . . . . . . . . . . . . . . . . . . . . . . Protector inflation3 . . 2018 2019 2020 2021 2022 2023 . .
Slide 8: Large losses and run-off
Large losses and run-off 5.7% Large Loss % 5.9% NGAAP IFRS17 6.4% 5.6% 4.5% NGAAP IFRS17 Run-off 0.4% -0.3% -0.3% 2.0% -2.2% Nominal run-off (L-axis) Relative run-off (%) * Lines in figures indicate large loss and run-off accumulations within outlined periods 8
Slide 9: Claims update
Claims update • FY Large losses of NOK 550.7m, or 5.9% (425.9, or 6.4%) • 20 large loss events across four countries. • 60% of large losses from the UK, 20% from Norway (primarily Extreme weather Hans 2) • FY run-off losses at 0.3% (gain of 2.0%) • Run-off gains in the Nordics, losses in the UK • 1.
Slide 10: Cost and quality leadership
Cost and quality leadership Key focus leading to a competitive position supporting profitable growth Cost ratio and commissions to brokers and agents (%) Broker satisfaction index(1) NGAAP IFRS17 1st o cs . . . . . . . . . . . . 2nd 3rd of comm. . . . . . . • UK growth main driver for cost ratio imp
Slide 11: Cost update
Cost update • FY cost ratio at 10.8% (11.1%), 6.4% exclusive of commissions to brokers and agents • 4.4% (3.9%) in commissions • FY operational working FTEs on average 391 (338) • Increased by 15.7% • Q4 cost ratio at 10.7% (12.3%), 6.0% exclusive of commissions • 4.7% (4.0%) in commissions • Q4 ope
Slide 12: Country-by-country key metrics
Country-by-country key metrics Quarterly volatility must be expected, especially by country FY 23 Gross premium written Insurance revenues Insurance service result Norway FY 23 55 FY 22 186 2.486 2.400 193 2073 1942 237 Denmark FY 23 176 FY 22 56 UK FY 23 618 FY 22 Finland FY 23 PROTECTOR insurance
Slide 13: Vision, Business Idea, Main targets and Values
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 14: Investments
Investments AUM: NOK 18 683m at year-end | Float increasing on s s oat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Slide 15: Investment performance
Investment performance 7.9% return in 2023 | 5.1% return in Q4 • NOK 1 372m, or 7.9% gain in 2023 2023 investment results • Equities: NOK 325m, or 12.1% 15% 12.1% • Put options: NOK -60m 10% 7.9% • Bonds: NOK 1 107m, or 7.6% 7.6% • Interest rate swaps: NOK 87m 5% 0% Equities1 Bonds Total1 • Strong y
Slide 16: Investment portfolio statistics
Investment portfolio statistics Bond portfolio yield at 5.8%, before cost of risk • Bond portfolio yielding 5.8%, before cost of risk (6.0% in YE22) Investment portfolio statistics1 31.12.23 31.12.22 30.09.23 • Underlying ref rate +0.6%-points, spread -87bps from YE22 Size bond & cash eq. (NOKm)2 15
Slide 17: Vision, Business Idea, Main targets and Values
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 18: Profit and loss FY (& Q4 23)
Profit and loss FY 23 (& Q4 23) Profit of NOK 1 509m (1 379) | EPS at NOK 18.3 (16.7) NOKm FY 23 FY 22 Q4.23 Q4 22 Insurance revenue 9386 6619 2646 1781 Insurance claims expenses (7182) (5.045) (1.963) (1384) Insurance operating expenses (1011) (734) (282) (218) Insurance service result before reins
Slide 19: Balance sheet
Balance sheet SCR ratio1 at 195% In NOKm 31.12.2023 31.12.2022 Financial assets 18 042 14 195 SCR ratio composition Derivatives 265 66 Bank deposits 324 198 Other assets 1 589 1 469 8.000 SCR ratio: 195% Discontinued operations 655 888 Total assets 20 874 16 816 7.000 Total equity 4 529 3 761 6.000
Slide 20: Solvency II
Solvency II SCR ratio at 195% Composition of SCR: Eligible solvency capital: • Net insurance risk 66% • Guarantee provision and proposed dividend subtracted from own funds • Net market risk 27% • Other risks 7% SCR composition and development1 Eligible own funds composition and development1 7.000 7.
Slide 21: Vision, Business Idea, Main targets and Values
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 22: Long term (3 years) financial targets
Long term (3 years) financial targets Disciplined growth Combined Ratio Solvency Capital Ratio Target Target < 91% > 150%1 NGAAP IFRS 1 See next slide 22
Slide 23: Flexible shareholder distribution policy
Flexible shareholder distribution policy Quarterly assessment of capital position vs. capital need SCR ratio • Capital distributed over time 200%* Solvency ratio zone assessment: • ov to a s ‘Green’ f s . . p of ta • Shareholder distribution normally 20%-80% of net profit insurance growth, risk-taki
Slide 24: FY highlights Q4 highlights
FY highlights • Full IFRS accounting implemented Combined Ratio Combined Ratio • Long-Term Issuer Credit rating of BBB+ affirmed, and outlook revised to positive from stable. Gross premiums written Gross premiums written • Work on French market continues. • A branch application will be submitted sho
Slide 25: PROTECTOR insurance
PROTECTOR insurance