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Protector Forsikring
Quarterly Report • Apr 24, 2024
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Quarterly Report
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INTERIM REPORT Q1 2024
PROTECTOR FORSIKRING ASA
(UNAUDITED) 24 APRIL 2024
Highlights Q1 2024
Income overview
| NOKm | Q1 2024 |
Q1 2023 |
FY 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 | (1) | 6,6 % | 1,0 % | 5,9 % |
| Run-off gains/losses, net of reinsurance Change in risk adjustment, net of reinsurance |
(1) | 1,8 % 1,7 % |
2,2 % 0,8 % |
0,3 % 1,5 % |
| (1) | ||||
| Discounting effect, net of reinsurance | (1) | -4,1 % | -3,0 % | -4,2 % |
| Loss ratio, gross | (2) | 76,4 % | 92,2 % | 76,5 % |
| Net reinsurance ratio | (3) | 4,2 % | -9,4 % | 1,2 % |
| Loss ratio, net of reinsurance | (4) | 80,6 % | 82,8 % | 77,7 % |
| Cost ratio | (5) | 10,6 % | 10,4 % | 10,8 % |
| Combined ratio | (6) | 91,2 % | 93,2 % | 88,5 % |
| Retention rate | (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.
- (3) "Net result from reinsurance contracts held" in % of "Insurance revenue" (6) "Loss ratio, net of reinsurance" + "Cost ratio"
- (2) "Insurance claims expenses" in % of "Insurance revenue" (5) "Insurance operating expenses" in % of "Insurance revenue"
- - (4) "Loss ratio, gross" + "Net reinsurance ratio" (7) ("Insurance revenue" + "Reinsurance premium") / "Insurance revenue"
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.
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.
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.
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
Income statement
| NOKm | Q1 2024 |
Q1 2023 |
FY 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 |
Statement of comprehensive income
| NOKm | Q1 2024 |
Q1 2023 |
FY 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 |
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 |
Statement of financial position
| NOKm | 31.03.24 | 31.03.23 | 31.12.23 |
|---|---|---|---|
| Equity and liabilities | |||
| Shareholders' equity | |||
| Share capital [82.500.000 shares] | 82,5 | 82,5 | 82,5 |
| Own shares | (0,1) | (0,1) | (0,1) |
| Other paid-in equity | 267,7 | 267,7 | 267,7 |
| Total paid-in equity | 350,1 | 350,1 | 350,1 |
| Earned equity | |||
| Natural perils capital | 12,9 | 57,5 | 26,3 |
| Guarantee scheme provision | 77,8 | 73,3 | 81,8 |
| Other equity | 4 176,9 | 3 503,3 | 4 070,4 |
| Total earned equity | 4 267,6 | 3 634,0 | 4 178,4 |
| Total equity | 4 617,7 | 3 984,0 | 4 528,6 |
| Subordinated loan capital | 1 891,7 | 1 244,7 | 1 891,7 |
| Liabilities for remaining coverage | 3 684,1 | 2 829,3 | 1 706,2 |
| Liabilities for incurred claims | 10 595,6 | 8 695,9 | 9 815,2 |
| Liabilities for incurred claims risk adjustment | 1 117,9 | 951,8 | 1 037,8 |
| Insurance contract liabilities | 15 397,6 | 12 477,0 | 12 559,2 |
| Current tax liability | 221,6 | - | 161,4 |
| Deferred tax liability | 191,0 | 148,4 | 191,0 |
| Financial derivatives | 71,1 | 130,2 | 241,2 |
| Other liabilities | 499,8 | 988,5 | 664,4 |
| Other incurred expenses and deferred income | 466,1 | 396,5 | 378,8 |
| Liabilities discontinued operations | - | 381,0 | 258,3 |
| Total other liabilities | 1 449,6 | 2 044,5 | 1 895,0 |
| Total equity and liabilities | 23 356,7 | 19 750,3 | 20 874,5 |
Statement of changes in equity
| NOKm | Share Capital |
Own shares |
Other paid in equity |
Natural perils capital |
Guarantee scheme |
Other equity | Total |
|---|---|---|---|---|---|---|---|
| Equity at 31.12.2022 | 82,5 | (0,1) | 267,7 | 61,6 | provision 72,8 |
3 277,1 | 3 761,5 |
| Profit for the period | (4,2) | 0,5 | 629,9 | 626,2 | |||
| Other comprehensive income | 90,1 | 90,1 | |||||
| Dividend paid | (494,3) | (494,3) | |||||
| Value changes synt. shares long term bonus scheme | (0,0) | 0,5 | 0,5 | ||||
| Equity at 31.03.2023 | 82,5 | (0,1) | 267,7 | 57,5 | 73,3 | 3 503,3 | 3 984,0 |
| Profit for the period | (1,9) | 0,3 | 220,2 | 218,5 | |||
| Other comprehensive income | 2,1 | 2,1 | |||||
| Reclassification of admin. cost | 45,7 | (45,7) | - | ||||
| Dividend paid | (164,8) | (164,8) | |||||
| Own shares | 9,8 | 9,8 | |||||
| Value changes synt. shares long term bonus scheme | (4,4) | (4,4) | |||||
| Equity at 30.06.2023 | 82,5 | (0,1) | 267,7 | 101,3 | 73,5 | 3 520,5 | 4 045,4 |
| Profit for the period | (45,1) | 0,7 | 33,2 | (11,2) | |||
| Other comprehensive income | (44,8) | (44,8) | |||||
| Dividend paid | (164,9) | (164,9) | |||||
| Value changes synt. shares long term bonus scheme | (1,8) | (1,8) | |||||
| Equity at 30.09.2023 | 82,5 | (0,1) | 267,7 | 56,1 | 74,2 | 3 342,2 | 3 822,7 |
| Profit for the period | (29,9) | 7,5 | 698,2 | 675,8 | |||
| Other comprehensive income | 30,7 | 30,7 | |||||
| Value changes synt. shares long term bonus scheme | (0,6) | (0,6) | |||||
| Equity at 31.12.2023 | 82,5 | (0,1) | 267,7 | 26,3 | 81,8 | 4 070,4 | 4 528,6 |
| Profit for the period | (13,4) | (4,0) | 472,9 | 455,6 | |||
| Other comprehensive income | 58,4 | 58,4 | |||||
| Dividend paid | (412,2) | (412,2) | |||||
| Value changes synt. shares long term bonus scheme | (12,6) | (12,6) | |||||
| Equity at 31.03.2024 | 82,5 | (0,1) | 267,7 | 12,9 | 77,8 | 4 176,9 | 4 617,7 |
Statement of cashflow
| Q1 | Q1 | FY | |
|---|---|---|---|
| NOKm | 2024 | 2023 | 2023 |
| Cash flow from operations | |||
| Insurance revenue | 4 579,9 | 3 650,4 | 9 807,1 |
| Insurance claims expenses | (1 778,6) | (1 994,1) | (6 461,6) |
| Insurance operating expenses and other income/expense | (308,8) | (82,0) | (709,4) |
| Net expense from reinsurance contracts | (311,7) | (99,5) | (30,9) |
| Interest / dividend received | 163,5 | 135,7 | 683,9 |
| Net payments from financial instruments | (1 614,5) | (37,9) | (2 898,2) |
| Payable tax | (71,6) | (281,0) | (363,3) |
| Net cash flow from operations | 658,3 | 1 291,6 | 27,7 |
| Cash flow from investment activities | |||
| Investments in fixed assets | (18,9) | (12,3) | (71,7) |
| Net cash flow from investment activities | (18,9) | (12,3) | (71,7) |
| Cash flow from financial activities | |||
| Dividend paid | (412,2) | (494,3) | (823,9) |
| Subordinated loan capital | - | - | 647,0 |
| Interest payments on subordinated loan capital | (40,8) | (21,7) | (95,0) |
| Net cash flow from financial activities | (453,0) | (515,9) | (271,9) |
| Net cash flow for the period | 186,4 | 763,4 | (315,9) |
| Net change in cash and cash equivalents | 186,4 | 763,4 | (315,9) |
| Cash and cash equivalents opening balance | 832,5 | 1 080,3 | 1 080,3 |
| Effects of exchange rate changes on cash and cash equivalents | 17,2 | 74,6 | 68,1 |
| Cash and cash equivalents closing balance | 1 036,0 | 1 918,3 | 832,5 |
Notes
Accounting principles
The interim financial statements have been prepared in accordance with the Financial Statement Regulation for Non‐life Insurance Companies (Forskrift om årsregnskap for skadeforsikringsselskaper), IAS 34 Interim Financial Reporting and IFRS.
The interim report does not include all the information required in a complete annual report and should be read in conjunction with the annual report for 2023. There are no changes in or new issued standards with significant effect on the financial statements in 2024, and the accounting policies applied in the interim report are the same as those used in the annual report for 2023.
The preparation of interim accounts involves the application of assessments, estimates and assumptions that affect the use of accounting policies and the amounts recognized for assets and liabilities, revenues and expenses. The actual results may deviate from these estimates. The most material assessments involved in applying accounting policies and the most important sources of uncertainty in the estimates are the same in connection with preparing the interim report as in the annual report for 2023.
The annual report for 2023 is available at www.protectorforsikring.no.
Q1 2023
Segment information - Quarter
| UK | Sweden (2) | Norway | Denmark | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | Q1 | ||
| NOKm | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
| Gross written premium | 429,0 | 369,4 | 1 499,1 | 1 427,3 | 1 349,1 | 1 166,5 | 1 152,3 | 980,2 | |
| Insurance revenue | 1 106,7 | 580,6 | 712,7 | 650,8 | 534,0 | 462,6 | 381,8 | 292,2 | |
| Insurance claims expenses | (677,7) | (556,3) | (598,3) | (543,6) | (492,9) | (380,0) | (320,7) | (351,3) | |
| Insurance operating expenses | (134,4) | (75,9) | (91,6) | (80,8) | (35,8) | (29,1) | (28,1) | (19,9) | |
| Whereof commissions to brokers and agents | (55,4) | (33,5) | (52,2) | (41,8) | (10,1) | (4,8) | (0,0) | (0,0) | |
| Insurance service result before reinsurance contracts held | 294,6 | (51,6) | 22,8 | 26,4 | 5,3 | 53,5 | 33,0 | (79,1) | |
| Reinsurance premium | (130,3) | (65,1) | 0,4 | (24,6) | (7,1) | (7,7) | (18,0) | (21,6) | |
| Amounts recovered from reinsurance | 31,5 | 231,9 | 5,8 | 0,4 | (0,7) | (8,3) | 3,1 | 81,5 | |
| Net result from reinsurance contracts held | (98,9) | 166,8 | 6,3 | (24,1) | (7,7) | (16,0) | (14,9) | 59,9 | |
| Insurance service result | 195,7 | 115,2 | 29,1 | 2,3 | (2,4) | 37,6 | 18,0 | (19,2) | |
| Large losses, net of reinsurance | (1) | 6,0 % | 3,4 % | 6,8 % | 0,0 % | 3,6 % | 0,0 % | 12,2 % | 0,0 % |
| Run-off gains/losses, net of reinsurance | (1) | 2,9 % | -1,1 % | 0,5 % | 4,5 % | 1,2 % | 0,0 % | 2,1 % | 7,6 % |
| Change in risk adjustment, net of reinsurance | (1) | 2,8 % | 1,9 % | 0,9 % | 0,3 % | 0,5 % | 0,2 % | 1,5 % | 0,4 % |
| Discounting effect, net of reinsurance | (1) | -5,8 % | -4,9 % | -2,6 % | -1,8 % | -3,5 % | -2,6 % | -2,9 % | -2,2 % |
| Loss ratio, gross | 61,2 % | 95,8 % | 83,9 % | 83,5 % | 92,3 % | 82,1 % | 84,0 % | 120,2 % | |
| (1) | |||||||||
| Net reinsurance ratio Loss ratio, net of reinsurance |
(1) (1) |
8,9 % 70,2 % |
-28,7 % 67,1 % |
-0,9 % 83,1 % |
3,7 % 87,2 % |
1,4 % 93,8 % |
3,4 % 85,6 % |
3,9 % 87,9 % |
-20,5 % 99,7 % |
| Cost ratio | (1) | 12,1 % | 13,1 % | 12,8 % | 12,4 % | 6,7 % | 6,3 % | 7,4 % | 6,8 % |
| Combined ratio | (1) | 82,3 % | 80,2 % | 95,9 % | 99,6 % | 100,5 % | 91,9 % | 95,3 % | 106,6 % |
| Retention rate | (1) | 88,2 % | 88,8 % | 100,1 % | 96,2 % | 98,7 % | 98,3 % | 95,3 % | 92,6 % |
(1) Defined as alternative performance measure (APM). APMs are described in a separate document published at protectorforsikring.no/Investor.
(2) Finland has been included in segment Sweden from Q1 2024 and comparative figures have been restated accordingly.
Financial assets, fair value estimation
| Financial assets through profit or loss [NOKm] | Currency | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|---|
| Shares | NOK | 586,8 | 2 449,8 | 55,8 | 3 092,3 |
| Bonds and other fixed income securities | NOK | - | 17 028,6 | - | 17 028,6 |
| Cash and cash equivalents | NOK | 849,1 | - | - | 849,1 |
| Derivatives: | |||||
| Interest rate swaps | NOK | - | 187,7 | - | 187,7 |
| Foreign currency contracts | NOK | - | 13,8 | - | 13,8 |
| Options | NOK | - | 49,1 | - | 49,1 |
| Total financial assets 31.03.2024 | NOK | 1 435,9 | 19 729,0 | 55,8 | 21 220,6 |
| Total financial assets 31.03.2023 | NOK | 1 919,9 | 15 171,6 | 346,4 | 17 437,9 |
| Financial liabilities at fair value through profit or loss [NOKm] | Currency | Level 1 | Level 2 | Level 3 | Total |
| Derivatives: | |||||
| Interest rate swaps | - | - | - | - | |
| Foreign exchange contracts | NOK | - | (71,1) | - | (71,1) |
| Other financial liabilities | NOK | - | - | - | - |
| Total financial liabilities 31.03.2024 | NOK | - | (71,1) | - | (71,1) |
| Total financial liabilities 31.03.2023 | NOK | (284,8) | (130,2) | - | (414,9) |
| Financial assets at amortized cost [NOKm] | Currency | Level 1 | Level 2 | Level 3 | Total |
| Loan to other companies | NOK | - | 30,3 | - | 30,3 |
| Total financial assets 31.03.2024 | NOK | - | 30,3 | - | 30,3 |
| Total financial assets 31.03.2023 | NOK | - | - | - | - |
The fair value of listed investments is based on the current sales price. Financial instruments measured at fair value are valued on a daily basis. Directly observable prices in the market are used as far as possible. The valuations for the different types of financial instruments are based on recognized methods and models.
Level 1: Financial instruments valued on the basis of quoted prices for identical assets in active markets.
This category encompasses listed equities that over the previous three months have experienced average daily trading equivalent to approximately NOK 20m or more. Based on this, the equities are regarded as sufficiently liquid to be included at this level. Bonds, certificates, or equivalent instruments issued by national governments are generally classified as level 1.
Level 2: Financial instruments valued on the basis of observable market information not covered by level 1.
This category encompasses financial instruments that are valued on the basis of market information that can be directly observable or indirectly observable. Market information that is indirectly observable means that the prices can be derived from observable related markets. Level 2 includes shares or equivalent equity instruments for which market prices are available, but where the volume of transactions is too limited to fulfil the criteria in level 1. Shares in this level will normally have been traded during the last month. Bonds and equivalent instruments are generally classified in this level. Foreign exchange derivatives are classified as level 2. Fund investments are generally classified as level 2.
Level 3: Financial instruments valued on the basis of information that is not observable in accordance with level 2.
The instrument is included in level 3 if one or more essential data are not based on observable market data.
Solvency margin
| NOKm | 31.03.24 | 31.03.23 | 31.12.23 |
|---|---|---|---|
| Total solvency capital requirement Total eligible own funds to meet SCR |
3 833,7 7 510,6 |
2 922,2 5 800,1 |
3 507,8 6 854,7 |
| Ratio of eligible own funds to SCR | 196 % | 198 % | 195 % |
| Total minimum capital requirement | 1 725,2 | 1 315,0 | 1 578,5 |
| Ratio of eligible own funds to MCR | 364 % | 390 % | 354 % |
Discontinued operations
Protector decided in 2018 to exit the change of ownership insurance (COI) market. After the decision to exit the COI market, COI was defined as "discontinued operations" in the financial statements.
From Q1 2024 remaining operations related to COI are no longer considered material, and net profit and assets and liabilities are not presented on separate lines as discontinued operations. For details on comparative amounts, see Portector's annual report for 2023.
Quarterly outline
| Q1 | Q4 | Q3 | Q2 | Q1 | Q4 Q3 2022 |
Q2 | Q1 | |||
|---|---|---|---|---|---|---|---|---|---|---|
| NOKm | 2024 | 2023 | 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | ||
| Insurance revenue | 2 735,3 | 2 646,2 | 2 365,7 | 2 387,4 | 1 986,2 | 1 781,4 | 1 614,9 | 1 638,7 | 1 584,1 | |
| Insurance claims expenses | (2 089,7) | (1 963,3) | (1 831,4) | (1 555,8) (1 831,2) | (1 384,1) | (1 222,9) | (1 176,3) | (1 261,5) | ||
| Insurance operating expenses | (289,9) | (281,8) | (253,8) | (269,8) | (205,7) | (218,4) | (168,7) | (175,5) | (171,8) | |
| Insurance service result before reinsurance contracts held | 355,7 | 401,1 | 280,6 | 561,7 | (50,7) | 178,9 | 223,3 | 287,0 | 150,7 | |
| Reinsurance premium | (155,0) | (142,3) | (157,9) | (164,6) | (119,0) | (228,1) | (209,3) | (197,3) | (191,8) | |
| Amounts recovered from reinsurance | 39,7 | 102,3 | 76,3 | (13,3) | 305,6 | 215,9 | 202,2 | 158,9 | 110,4 | |
| Net result from reinsurance contracts held | (115,3) | (40,0) | (81,5) | (177,9) | 186,6 | (12,2) | (7,1) | (38,4) | (81,4) | |
| Insurance service result | 240,4 | 361,1 | 199,0 | 383,8 | 135,9 | 166,7 | 216,2 | 248,5 | 69,3 | |
| Net income from investments | 350,1 | 860,0 | 2,9 | (169,9) | 635,1 | 631,0 | 20,1 | (164,9) | (9,2) | |
| Net insurance finance income or expenses | 21,7 | (355,7) | (47,0) | 132,2 | (113,4) | (84,9) | 239,0 | 194,6 | 258,2 | |
| Other income/expenses | (39,2) | (25,6) | (33,2) | (15,7) | (16,0) | (23,1) | (18,7) | (16,0) | (16,2) | |
| Profit/(loss) before tax | 573,0 | 839,8 | 121,7 | 330,5 | 641,5 | 689,7 | 456,7 | 262,2 | 302,1 | |
| Large losses, net of reinsurance | (1) | 6,6 % | 10,2 % | 7,8 % | 4,7 % | 1,0 % | 3,6 % | 6,1 % | 2,7 % | 9,1 % |
| Run-off gains/losses, net of reinsurance | (1) | 1,8 % | -0,4 % | 2,6 % | -2,9 % | 2,2 % | 0,3 % | -2,6 % | -3,0 % | -3,0 % |
| Change in risk adjustment, net of reinsurance | (1) | 1,7 % | 1,6 % | 1,3 % | 2,0 % | 0,8 % | 1,5 % | 1,3 % | 0,7 % | 1,2 % |
| Discounting effect, net of reinsurance | (1) | -4,1 % | -4,4 % | -2,8 % | -6,3 % | -3,0 % | -4,3 % | -2,7 % | -1,3 % | -0,8 % |
| Loss ratio, gross | (1) | 76,4 % | 74,2 % | 77,4 % | 65,2 % | 92,2 % | 77,7 % | 75,7 % | 71,8 % | 79,6 % |
| Net reinsurance ratio | (1) | 4,2 % | 1,5 % | 3,4 % | 7,5 % | -9,4 % | 0,7 % | 0,4 % | 2,3 % | 5,1 % |
| Loss ratio, net of reinsurance | (1) | 80,6 % | 75,7 % | 80,9 % | 72,6 % | 82,8 % | 78,4 % | 76,2 % | 74,1 % | 84,8 % |
| Cost ratio | (1) | 10,6 % | 10,7 % | 10,7 % | 11,3 % | 10,4 % | 12,3 % | 10,4 % | 10,7 % | 10,8 % |
| Combined ratio | (1) | 91,2 % | 86,4 % | 91,6 % | 83,9 % | 93,2 % | 90,6 % | 86,6 % | 84,8 % | 95,6 % |
| Retention rate | (1) | 94,3 % | 94,6 % | 93,3 % | 93,1 % | 94,0 % | 87,2 % | 87,0 % | 88,0 % | 87,9 % |
(1) Defined as alternative performance measure (APM). APMs are described in a separate document published at protectorforsikring.no/Investor.
Other alternative performance measures and key figures
| Q1 2024 |
Q1 2023 |
FY 2023 |
||
|---|---|---|---|---|
| Return on assets under management (1) |
||||
| Total net income from investments, continued business | NOKm | 350,1 | 635,1 | 1 328,0 |
| Total net income from investments, discontinued business | NOKm | - | 25,7 | 43,6 |
| Total return on assets under management | NOKm | 350,1 | 660,8 | 1 371,6 |
| Average investments, continued business | NOKm | 20 215,1 | 14 831,9 | 16 762,1 |
| Average investments, discontinued business | NOKm | - | 601,1 | 550,4 |
| Total average assets under management | NOKm | 20 215,1 | 15 433,1 | 17 312,5 |
| Return on investments, continued business | % | 1,7 % | 4,3 % | 7,9 % |
| Return investments, discontinued business | % | 0,0 % | 4,3 % | 7,9 % |
| Total return on assets under management | % | 1,7 % | 4,3 % | 7,9 % |
| Total net income from shares | NOKm | 191,1 | 426,7 | 264,9 |
| Total net income from interests | NOKm | 159,0 | 234,1 | 1 106,7 |
| Total return on assets under management | NOKm | 350,1 | 660,8 | 1 371,6 |
| Average investments shares | NOKm | 2 960,9 | 2 469,1 | 2 706,4 |
| Average investments interests | NOKm | 17 254,2 | 12 964,0 | 14 606,1 |
| Total average assets under management | NOKm | 20 215,1 | 15 433,1 | 17 312,5 |
| Return on investments, shares | % | 6,5 % | 17,3 % | 9,8 % |
| Return investments, interests | % | 0,9 % | 1,8 % | 7,6 % |
| Total return on assets under management | % | 1,7 % | 4,3 % | 7,9 % |
| Equity | NOKm | 4 617,7 | 3 984,0 | 4 528,6 |
| Equity per share | NOKm | 56,0 | 48,4 | 54,9 |
| Return on equity, annualised (1) |
% | 39,8 % | 64,7 % | 37,7 % |
(1) Defined as alternative performance measure (APM). APMs are described in a separate document published at protectorforsikring.no/Investor.