Protector Forsikring Asa · OSL:PROT
Protector Forsikring Asa — Q3 2022 Earnings Presentation
18 slides from Protector Forsikring Asa's earnings presentation, 2022
Slide 1: Investor Presentation
Investor Presentation Henrik Høye Chief Executive Officer
Slide 2: 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 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: Q3 highlights
Net combined ratio Gross written premium (MNOK) Investment return (MNOK) Solvency Capital Ratio Other highlights: • Large losses at 7 % (normalized) • Interest rates increasing and credit spreads widening • Running yield at 5.5 % Profit after tax (MNOK) Earnings per share (NOK) This presentation con
Slide 5: Claims update
Claims update • 5 Large losses1 at 7.0 % (7.9 %) • Driven by 2 claims in UK & 2 in Sweden • Net run off gains at 3.8 % (4.9 %) • Mainly due to run-off gains in Norway & Sweden • Aggregated COVID-19 effects at 0 % in Q3 21 & 22 1 Large losses (LL) defined as absolute net losses > MNOK 10 5
Slide 6: Large losses and run-off
Large losses1 and run-off Net large loss ratio excl. WCpr Q • Net large losses of MNOK 99,0 or 7.0 % (99,2 or 7,9%) Normalized • 70% of large loss volume Property, 20 % liability & 10 % Motor • Net run off gains at 3.8 % (4.9 %) • Gains Other illness & General liability • Losses on Workers compensat
Slide 7: Renewal rate and Q3 volume
• Q3 is a small volume quarter • Renewal rate 84% (99,4 %) • Churn primarily driven by some large clients in SE, DK • UK: Renewal rate 95%, high price increases driven by 1 client • Current price increases accounts for increased inflation 7
Slide 8: Country-by-country key metrics
Country-by-country key metrics PROTECTOR - . insurance Quarterly volatility must be expected, especially by country Q3 2022 Norway Sweden Denmark UK Finland Protector MNOK Q322 Q321 Q322 Q321 Q322 Q3 21 Q3 22 Q321 Q322 Q3 21 Q3 22 Q321 Gross premium written 173 174 231 248 59 61 459 368 2 6 924 856
Slide 9: 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 10: Investment performance
Investment performance Return at 0.2 % in Q3 and -1.1 % YTD • Q3 return on investment portfolio 0.2%, or MNOK 23 1 Q3 investment result • Equity portfolio 0.8%, or MNOK 18 10% • Bond portfolio 0.0%, or MNOK 5 • Put options MNOK 1 5% 0.0% 0% 0.2% • YTD return on investment portfolio -1.1%, or MNOK -1
Slide 11: Investment portfolio statistics
Investment portfolio statistics Bond portfolio yield at 5.5 %, before cost of risk – duration increased Investment portfolio statistics1 30.09.22 30.09.21 30.06.22 • Bond portfolio yielding 5.5 %, before cost of risk Size bond & cash eq. (MNOK) 12 218 12 369 12 114 Avg. ref. rate (NIBOR, STIBOR, etc
Slide 12: Large change in bond portfolio yield
Large change in bond portfolio yield Driven by rate increases and longer interest duration Bond portfolio yield of 5,5 % 5,5% • Increased yield driven by • Higher underlying reference rate 2,4% • Floating 3,9% • Increased interest duration • Higher market spreads 2,1% 2,3% 2,4% 2,2% 2,1% 1,9% 2,0% 1
Slide 13: Profit and loss Q3 (& YTD 22)
Profit and loss Q3 22 (& YTD 22) Profit of MNOK 175 (196) | EPS at NOK 2.1 (2.5) MNOK Q3 22 Q3 21 YTD 22 YTD 21 FY 21 Gross premiums written 924 856 5 823 5165 5951 Earned premiums, net of reinsurance 1423 1257 4187 3 652 4921 Claims incurred, net of reinsurance (1074) (930) (3.291) (2783) (3 810) S
Slide 14: Balance Sheet
Balance Sheet SCR ratio at 222% In millions 30.09.2022 30.09.2021 31.12.2021 Financial assets 14 066 13 291 13 067 SCR ratio composition Derivatives 274 64 94 Bank deposits 104 101 300 SCR ratio: 222% Other assets 4 549 4 421 4 338 5 000 Discontinued operations 950 1 516 1 448 Total assets 19 943 19
Slide 15: Solvency II
Solvency II SCR ratio at 222% Composition of SCR: Eligible solvency capital: • Net insurance risk 65% • Guarantee provision subtracted from own funds • Net market risk 25% • Other risks 10% SCR composition Eligible solvency capital 4 000 64 6 000 293 1 608 3 500 951 5 000 413 4 847 335 3 000 1 245 1
Slide 16: Alternative performance measures
This presentation contains alternative performance measures (APMs). APMs are described here: https://protectorforsikring.no/en /inv estor/docu ments /spreadsheets / 16
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: Protector Insurance
PROTECTOR insurance