Quarterly Report • Jan 31, 2024
Quarterly Report
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PROTECTOR FORSIKRING ASA
(UNAUDITED) 31 JANUARY 2024
| NOKm | Q4 | Q4 | FY | FY | |
|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | ||
| Gross written premium | (1) | 2 060,3 | 1 275,2 | 10 423,0 | 7 097,8 |
| Insurance revenue | 2 646,2 | 1 781,4 | 9 385,5 | 6 619,1 | |
| Insurance claims expenses | (1 963,3) | (1 384,1) | (7 181,7) | (5 044,8) | |
| Insurance operating expenses | (281,8) | (218,4) | (1 011,2) | (734,5) | |
| Insurance service result before reinsurance contracts held | 401,1 ‐ |
178,9 | 1 192,7 | 839,9 | |
| Net result from reinsurance contracts held | (40,0) | (12,2) | (112,8) | (139,1) | |
| Insurance service result | 361,1 | 166,7 | 1 079,9 | 700,8 | |
| Net income from investments | 860,0 | 631,0 | 1 328,0 | 477,0 | |
| Net insurance finance income or expenses | (355,7) | (84,9) | (383,9) | 607,0 | |
| Other income/expenses | (25,6) | (23,1) | (90,6) | (74,0) | |
| Profit/(loss) before tax expenses | 839,8 | 689,7 | 1 933,5 | 1 710,7 | |
| Tax | (181,5) | (89,7) | (439,2) | (341,4) | |
| Discontinued operations | 17,6 | 13,2 | 15,1 | 9,7 | |
| Profit/(loss) | 675,8 | 613,2 | 1 509,3 | 1 379,0 | |
| Large losses, net of reinsurance | (1) | (268,7) | (64,5) | (550,7) | (425,9) |
| Run‐off gains/losses, net of reinsurance | (1) | 10,6 | (5,2) | (25,5) | 133,7 |
| Change in risk adjustment, net of reinsurance | (1) | (42,7) | (27,5) | (136,9) | (79,6) |
| Discounting effect, net of reinsurance | (1) | 116,9 | 76,7 | 390,9 | 154,5 |
| Loss ratio, gross | (2) | 74,2 % | 77,7 % | 76,5 % | 76,2 % |
| Net reinsurance ratio | (3) | 1,5 % | 0,7 % | 1,2 % | 2,1 % |
| Loss ratio, net of reinsurance | (4) | 75,7 % | 78,4 % | 77,7 % | 78,3 % |
| Cost ratio | (5) | 10,7 % | 12,3 % | 10,8 % | 11,1 % |
| Combined ratio | (6) | 86,4 % | 90,6 % | 88,5 % | 89,4 % |
| Retention rate | (7) | 94,6 % | 87,2 % | 93,8 % | 87,5 % |
(1) Defined as alternative performance measure (APM). APMs are described on www.protectorforsikring.no in document named APMs Protector Forsikring Q4 2023
(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"
In Q4, gross written premiums increased by 62% or NOK 785.1m to a total of NOK 2,060.3m in Q4 2023. In local currencies the growth was 48%. All business units contribute to the growth; the UK is however the greatest driver. On company level, the renewal rate was 105% (100), supported by price increases to counter claims inflation.
In 2023, Gross written premium increased by 47% to a total of NOK 10,423.0m (7,097.8). Adjusted for currency effects, the increase was 37% (21), driven mainly by premium increases, a low churn and an extraordinary strong growth in the United Kingdom. The insurance revenue increased to NOK 9,385.5m (6,619.1).
| Gross written premium (NOKm) | Q4 2023 | Q4 2022 | Growth | Growth (LCY) |
|
|---|---|---|---|---|---|
| UK | 1 132,0 | 597,2 | 534,9 | 90 % | 68 % |
| Sweden | 452,9 | 383,5 | 69,4 | 18 % | 9 % |
| Norway | 212,9 | 143,6 | 69,3 | 48 % | 48 % |
| Denmark | 235,0 | 142,6 | 92,4 | 65 % | 51 % |
| Finland | 27,4 | 8,3 | 19,1 | 229 % | 264 % |
| Protector | 2 060,3 | 1 275,2 | 785,1 | 62 % | 48 % |
| Gross written premium (NOKm) | FY | FY | Growth | Growth | |
|---|---|---|---|---|---|
| 2023 | 2022 | (LCY) | |||
| UK | 4 320,7 | 2 115,7 | 2 205,0 | 104 % | 84 % |
| Sweden | 2 485,7 | 2 072,6 | 413,0 | 20 % | 14 % |
| Norway | 1 941,0 | 1 610,1 | 330,9 | 21 % | 21 % |
| Denmark | 1 407,2 | 1 077,2 | 330,1 | 31 % | 16 % |
| Finland | 268,4 | 222,2 | 46,3 | 21 % | 7 % |
| Protector | 10 423,0 | 7 097,8 | 3 325,3 | 47 % | 37 % |
| 3 % 13 % |
|
|---|---|
| GWP 41 % FY 19 % 2023 24 % |
|
| UK Sweden Norway Denmark Finland |
In Q4, Protector Forsikring ASA recorded a profit of NOK 675.8m (613.2). The insurance service result was NOK 361.1m (166.7), corresponding to a combined ratio of 86.4% (90.6). The insurance service result was driven by another strong quarter in the UK and a positive development in Sweden and Denmark.
Profit for the year was NOK 1,509.3m (1,379.0). The insurance service result was NOK 1,079.9m (700.8), corresponding to a combined ratio of 88.5% (89.4). The insurance service result is driven by strong results in the UK and good results in Sweden, Denmark and Finland.
| Loss ratio, net | Cost ratio | Combined ratio | ||||||
|---|---|---|---|---|---|---|---|---|
| Q4 2023 | Q4 2022 | Q4 2023 | Q4 2022 | Q4 2023 | Q4 2022 | |||
| UK | 74,8 % | 63,6 % | 10,4 % | 13,6 % | 85,2 % | 77,2 % | ||
| Sweden | 72,7 % | 77,6 % | 13,3 % | 13,6 % | 86,0 % | 91,2 % | ||
| Norway | 90,6 % | 97,1 % | 8,9 % | 6,3 % | 99,5 % | 103,4 % | ||
| Denmark | 62,8 % | 85,1 % | 7,6 % | 12,0 % | 70,4 % | 97,2 % | ||
| Finland | 76,6 % | 56,6 % | 16,6 % | 30,1 % | 93,2 % | 86,7 % | ||
| Protector | 75,7 % | 78,4 % | 10,7 % | 12,3 % | 86,4 % | 90,6 % |
| Loss ratio, net | Cost ratio | Combined ratio | ||||
|---|---|---|---|---|---|---|
| FY 2023 | FY 2022 | FY 2023 | FY 2022 | FY 2023 | FY 2022 | |
| UK | 70,4 % | 74,2 % | 11,9 % | 14,6 % | 82,4 % | 88,8 % |
| Sweden | 78,5 % | 75,4 % | 13,4 % | 12,4 % | 91,9 % | 87,8 % |
| Norway | 89,8 % | 81,9 % | 7,3 % | 6,3 % | 97,1 % | 88,2 % |
| Denmark | 79,3 % | 86,2 % | 7,5 % | 8,4 % | 86,8 % | 94,6 % |
| Finland | 72,9 % | 75,5 % | 13,2 % | 17,2 % | 86,1 % | 92,8 % |
| Protector | 77,7 % | 78,3 % | 10,8 % | 11,1 % | 88,5 % | 89,4 % |
In Q4 2023, the company had run‐off gains (undiscounted) of 0.4% (net of reinsurance) against run‐off losses of 0.3% in Q4 2022. The loss ratio net of reinsurance ended at 75.7% (78.4).
Large losses for Q4 amounted to NOK 268.7m, or 10.2% (3.6), consisting of 13 large loss events across four countries. 60% of the large losses are from storms (UK) and extreme weather (Norway).
The cost ratio in Q4 amounted to 10.7% (12.3). The decrease is mainly driven by premium growth.
In FY 2023, the company had run‐off losses (undiscounted) of 0.3% (net of reinsurance) against 2.0% run‐off gains in FY 2022. The loss ratio net of reinsurance ended at 77.7% (78.3).
The cost ratio decreased to 10.8% from 11.1% in the prior year driven by the premium growth. The decrease was offset by higher commissions to brokers and agents. Excluding commissions the cost ratio was 6.4% (7.2).
The assets under management amounted to a total of NOK 18,683m on 31 December, up 7.4% compared to the portfolio at the end of Q3 2023.
In Q4, the investment activities yielded a total return of NOK 890.0m (5.1%) compared to NOK 662.8m (4.6%) in Q4 2022. Equities accounted for a NOK 289.7m gain (10.8%) including put options against a NOK 418.5m gain (18.3%) in Q4 2022. The return on the fixed income portfolio totaled NOK 600.3m gain (4.0%) against NOK 244.3m gain (2.0%) in Q4 2022.
In FY 2023, the investment activities yielded a total return of NOK 1,371.6m (7.9%) compared to NOK 500.6m (3.4%) in FY 2022. Equities accounted for a NOK 264.9m gain (9.8%) including put options against a NOK 329.8m gain (13.9%) in FY 2022. The return on the fixed income portfolio totaled to NOK 1,106.7m gain (7.6%) against a NOK 170.8m gain (1.4%) in FY 2022.
At the end of Q4 2023, 16.0% of Protector's financial assets were invested in equities, against 14.6% at the end of Q3 2023. Approximately NOK 4.5 bn of the financial assets were allocated to high yield securities at the end of Q4 2023, up from NOK 3.6 bn at the end of Q3 2023.
The insurance finance result impacted the total investment return negatively with NOK 355.7m in Q4 2023 and NOK 383.9m in FY 2023, against a negative effect in Q4 2022 of NOK 84.9m and a positive effect of NOK 607.0m in FY 2022. The fluctuations are mainly due to interest curve changes.
At the end of Q4 2023, the SCR‐ratio is 195% (195) post dividends. The company's long‐term objective is to maintain a SCR‐ratio (calculated according to the Solvency II regulations) above 150%.
In December, Protector successfully placed a subordinated loan of NOK 650m. The terms of the loan comply with existing and expected future requirements for subordinated debt eligible as restricted Tier 2 capital. The increase in restricted Tier 2 capital has a 19 percentage point positive effect on the SCR‐ratio.
The company's equity amounted to NOK 4,528.6m (3,761.5). Dividend payments in 2023 have reduced equity by NOK 823.9m.
Protectors BBB+ Long‐Term Issuer Credit rating from A.M. Best was affirmed 22 June 2023. Outlook were revised to positive from stable.
Based on the company's strong financial position, competitive position in the market and dividend policy the Board has, in accordance with the mandate received from the Annual General Meeting in 2023, decided to distribute a special dividend of NOK 412.2m, corresponding to NOK 5.00 per share.
The payment will take place on 14 February 2024.
The underlying profitability is good, and with continued price increases to counter claims inflation, the insurance service result is expected to remain on a good level.
Entering 2024, the company has experienced a continuing high renewal rate. In January, still our largest inception month, the company experienced 16% growth in local currencies supported by price increases countering for claims inflation. However, the January volume has a less significance for the company's annual premium growth than historically. This because a significant part of the growth currently comes from the UK, which has a different inception pattern.
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, 31st January 2024
The Board of Directors of Protector Forsikring ASA
| Q4 | Q4 | FY | FY | |
|---|---|---|---|---|
| NOKm | 2023 | 2022 | 2023 | 2022 |
| Insurance revenue | 2 646,2 | 1 781,4 | 9 385,5 | 6 619,1 |
| Insurance claims expenses | (1 963,3) | (1 384,1) | (7 181,7) | (5 044,8) |
| Insurance operating expenses | (281,8) | (218,4) | (1 011,2) | (734,5) |
| Insurance service result before reinsurance contracts held | 401,1 | 178,9 | 1 192,7 | 839,9 |
| Reinsurance premium | (142,3) | (228,1) | (583,7) | (826,4) |
| Amounts recovered from reinsurance | 102,3 | 215,9 | 470,9 | 687,3 |
| Net result from reinsurance contracts held | (40,0) | (12,2) | (112,8) | (139,1) |
| Insurance service result | 361,1 | 166,7 | 1 079,9 | 700,8 |
| Result from investments in associates and joint venture | ‐ | 0,0 | ‐ | 20,1 |
| Interest income and dividend etc. from financial assets | 153,7 | 126,8 | 662,3 | 457,8 |
| Net changes in fair value of investments | 620,5 | 455,1 | (6,6) | (122,8) |
| Net realised gain and loss on investments | 96,4 | 63,2 | 735,6 | 156,3 |
| Interest expenses and expenses related to investments | (10,6) | (14,2) | (63,3) | (34,4) |
| Net income from investments | 860,0 | 631,0 | 1 328,0 | 477,0 |
| Insurance finance income or expenses ‐ unwinding | (80,0) | (40,8) | (273,2) | (86,2) |
| Insurance finance income or expenses ‐ change in financial assumptions | (341,4) | 336,3 | (159,7) | 872,4 |
| Insurance finance income or expenses | (421,4) | (114,1) | (432,9) | 672,2 |
| Reinsurance finance income or expenses ‐ unwinding | 9,1 | 6,8 | 35,2 | 18,6 |
| Reinsurance finance income or expenses ‐ change in financial assumptions | 36,9 | (63,6) | 27,1 | (104,7) |
| Reinsurance finance income or expenses ‐ other income and expenses | 19,7 | 0,4 | (13,3) | (8,3) |
| Reinsurance finance income or expenses | 65,6 | 29,2 | 49,0 | (65,2) |
| Net insurance finance income or expenses | (355,7) | (84,9) | (383,9) | 607,0 |
| Other income/expenses | (25,6) | (23,1) | (90,6) | (74,0) |
| Profit/(loss) before tax expenses | 839,8 | 689,7 | 1 933,5 | 1 710,7 |
| Tax | (181,5) | (89,7) | (439,2) | (341,4) |
| Discontinued operations | 17,6 | 13,2 | 15,1 | 9,7 |
| Profit/(loss) | 675,8 | 613,2 | 1 509,3 | 1 379,0 |
| Earnings per share basic and diluted | 8,2 | 7,4 | 18,3 | 16,7 |
| Q4 | Q4 | FY | FY | |
|---|---|---|---|---|
| NOKm | 2023 | 2022 | 2023 | 2022 |
| Profit/loss for the period | 675,8 | 613,2 | 1 509,3 | 1 379,0 |
| Other comprehensive income which can subsequently be reclassified as profit or loss | ||||
| Currency changes from foreign enterprise | 41,6 | (36,6) | 104,8 | (40,6) |
| Taxes on components of comprehensive income | (10,9) | 7,9 | (26,7) | 11,1 |
| Total other comprehensive income | 30,7 | (28,7) | 78,1 | (29,5) |
| Comprehensive income | 706,5 | 584,5 | 1 587,4 | 1 349,5 |
| NOKm | 31.12.23 | 31.12.22 |
|---|---|---|
| Assets | ||
| Financial assets | ||
| Loans at amortized cost | 30,3 | ‐ |
| Shares | 2 888,5 | 2 522,9 |
| Securities, bonds etc. | 14 630,8 | 10 832,1 |
| Financial derivatives | 264,6 | 65,7 |
| Bank deposits | 492,6 | 839,8 |
| Total financial assets | 18 306,9 | 14 260,6 |
| Reinsurance contract assets | 1 093,3 | 1 029,1 |
| Intangible fixed assets | 106,3 | 95,9 |
| Tangible fixed assets | 113,1 | 132,2 |
| Cash and bank deposits | 323,6 | 198,5 |
| Other receivables | 52,2 | 27,6 |
| Total prepaid expenses | 224,4 | 184,5 |
| Assets discontinued operations | 654,5 | 888,1 |
| Total assets | 20 874,5 | 16 816,4 |
| NOKm | 31.12.23 | 31.12.22 |
|---|---|---|
| Equity and liabilities | ||
| Shareholders' equity | ||
| Share capital [82.500.000 shares] | 82,5 | 82,5 |
| Own shares | (0,1) | (0,1) |
| Other paid‐in equity | 267,7 | 267,7 |
| Total paid-in equity | 350,1 | 350,1 |
| Earned equity | ||
| Natural perils capital | 26,3 | 60,7 |
| Guarantee scheme provision | 81,8 | 72,8 |
| Other equity | 4 070,4 | 3 277,9 |
| Total earned equity | 4 178,4 | 3 411,4 |
| Total equity | 4 528,6 | 3 761,5 |
| Subordinated loan capital | 1 891,7 | 1 244,7 |
| Liabilities for remaining coverage (LRC) | 1 706,2 | 1 140,6 |
| Liabilities for incurred claims (LIC) | 9 815,2 | 8 020,2 |
| Liabilities for incurred claims risk adjustment (RA) | 1 037,8 | 881,6 |
| Insurance contract liabilities | 12 559,2 | 10 042,4 |
| Current tax liability | 161,4 | 120,2 |
| Deferred tax liability | 191,0 | 147,8 |
| Financial derivatives | 241,2 | 54,8 |
| Other liabilities | 579,5 | 587,5 |
| Other incurred expenses and prepaid income | 463,7 | 335,2 |
| Liabilities discontinued operations | 258,3 | 522,4 |
| Total equity and liabilities | 20 874,5 | 16 816,4 |
| NOKm | Share Capital |
Own shares |
Other paid in equity |
Natural perils capital |
Guarantee scheme provision |
Fund for valuation differences |
Other equity |
Total |
|---|---|---|---|---|---|---|---|---|
| Equity at 31.12.2022 | 82,5 | (0,1) | 267,7 | 61,6 | 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 |
| NOKm | Share Capital |
Own shares |
Other paid in equity |
Natural perils capital |
Guarantee scheme provision |
Fund for valuation differences |
Other equity |
Total |
|---|---|---|---|---|---|---|---|---|
| Equity at 31.12.2021 NGAAP | 82,5 | (0,1) | 267,7 | 97,7 | 78,2 | 10,0 | 3 046,2 | 3 582,1 |
| IFRS Adjustments | (2,9) | (220,4) | (223,3) | |||||
| Equity at 1.1.2022 IFRS | 82,5 | (0,1) | 267,7 | 94,9 | 78,2 | 10,0 | 2 825,8 | 3 358,9 |
| Profit for the period | (9,0) | (1,4) | 9,0 | 209,5 | 208,1 | |||
| Other comprehensive income | (21,0) | (21,0) | ||||||
| Dividend paid | (247,1) | (247,1) | ||||||
| Equity at 31.03.2022 | 82,5 | (0,1) | 267,7 | 85,9 | 76,8 | 18,9 | 2 767,1 | 3 298,8 |
| Profit for the period | 11,4 | (1,8) | (0,3) | 190,3 | 199,5 | |||
| Other comprehensive income | 13,5 | 13,5 | ||||||
| Dividend paid | (700,2) | (700,2) | ||||||
| Value changes synt. shares long term bonus scheme | 3,5 | 3,5 | ||||||
| Own shares | 0,0 | 0,0 | 0,0 | |||||
| Equity at 30.06.2022 | 82,5 | (0,1) | 267,7 | 97,3 | 75,0 | 18,6 | 2 274,3 | 2 815,2 |
| Profit for the period | 3,9 | (1,5) | (18,6) | 374,4 | 358,2 | |||
| Other comprehensive income | 6,7 | 6,7 | ||||||
| Reclassification of admin. cost | (47,5) | 47,5 | ‐ | |||||
| Value changes synt. shares long term bonus scheme | ‐ | (0,5) | (0,5) | |||||
| Equity at 30.09.2022 | 82,5 | (0,1) | 267,7 | 53,6 | 73,6 | ‐ | 2 702,3 | 3 179,6 |
| Profit for the period | 8,0 | (0,8) | 606,0 | 613,2 | ||||
| Other comprehensive income | (28,7) | (28,7) | ||||||
| Value changes synt. shares long term bonus scheme | (2,5) | (2,5) | ||||||
| Equity at 31.12.2022 | 82,5 | (0,1) | 267,7 | 61,6 | 72,8 | - | 3 277,1 | 3 761,5 |
| Q4 | Q4 | FY | FY | |
|---|---|---|---|---|
| NOKm | 2023 | 2022 | 2023 | 2022 |
| Cash flow from operations | ||||
| Insurance revenue | 1 947,5 | 927,5 | 9 807,1 | 6 505,1 |
| Insurance claims expenses | (1 761,0) | (1 168,3) | (6 461,6) | (4 535,3) |
| Net expense from reinsurance contracts | (94,7) | 22,8 | (30,9) | (46,7) |
| Insurance operating expenses | (85,8) | 129,6 | (709,4) | (413,9) |
| Interest / dividend income | 163,4 | 128,9 | 683,9 | 482,4 |
| Net payments from financial instruments | (522,4) | (1 304,1) | (2 898,2) | (1 792,2) |
| Payable tax | (86,7) | (29,7) | (363,3) | (320,6) |
| Net cash flow from operations | (439,7) | (1 293,2) | 27,7 | (121,4) |
| Cash flow from investment activities | ||||
| Investments in fixed assets | (34,1) | (11,5) | (71,7) | (43,8) |
| Net cash flow from investment activities | (34,1) | (11,5) | (71,7) | (43,8) |
| Cash flow from financial activities | ||||
| Dividend paid | ‐ | ‐ | (823,9) | (947,3) |
| Subordinated loan capital | 647,0 | ‐ | 647,0 | (140,0) |
| Interest payments on subordinated loan capital | (26,9) | (19,9) | (95,0) | (66,6) |
| Net cash flow from financial activities | 620,1 | (19,9) | (271,9) | (1 153,9) |
| Net cash flow for the period | 146,3 | (1 324,6) | (315,9) | (1 319,0) |
| Net change in cash and cash equivalents | 146,3 | (1 324,6) | (315,9) | (1 319,0) |
| Cash and cash equivalents opening balance | 674,2 | 2 413,7 | 1 080,3 | 2 407,2 |
| Effects of exchange rate changes on cash and cash equivalents | 12,0 | (8,7) | 68,1 | (7,9) |
| Cash and cash equivalents closing balance | 832,5 | 1 080,3 | 832,5 | 1 080,3 |
These interim accounts 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 Ministry of Finance adopted changes to the accounting rules for insurance companies as a result of IFRS 17. The changes came into force with effect for accounting years starting from January 1st, 2023 or later. This means that Protector reports according to full IFRS from January 1st, 2023. Comparable figures for 2022 have been restated to IFRS.
The main change from NGAAP to full IFRS is related to IFRS 17 Insurance contracts. This new standard replaces IFRS 4 Insurance contracts and introduces new requirements for recognition, measurement, presentation and information about issued insurance contracts. The purpose of the new standard is to establish a uniform practice for accounting for insurance contracts.
Other standards that have been implemented in 2023, as a result of the transition to full IFRS, are IFRS 9 Financial Instruments and IFRS 16 Leases. IFRS 9 has not had any significant effect on the balance sheet or profit and loss due to the fact that Protector previously has chosen to measure all financial assets at fair value through profit or loss (FVTPL). The implementation of IFRS 9 will not affect Protector's recognition and measurement.
The implementation of IFRS 16 does not affect the profit and loss significant but has some effects on the balance sheet and classification in the profit and loss statement.
Please see transition note in the Interim Report Q1 2023, note 28 in the annual report for 2022 and material regarding the transition to IFRS published separately on www.protectorforsikring.no for further information on effects of implementing IFRS.
Protector decided in 2018 to exit the change of ownership insurance (COI) market. After the decision COI is defined as "discontinued operations" in the accounts.
Net profit and assets and liabilities associated with COI are presented on separate lines as discontinued operations.
Protector has entered into a 50% quota share agreement (reinsurance) covering all historical business written until July 1st, 2020. At January 1st, 2022, when the new Real Property Sale Act entered into force, Protector stopped writing new COI business.
| NOKm | Q4 2023 |
Q4 2022 |
FY 2023 |
FY 2022 |
|---|---|---|---|---|
| Insurance revenue Insurance claims expenses Insurance operating expenses |
0,0 2,1 ‐ |
0,2 (27,0) (0,4) |
0,1 (10,3) ‐ |
2,6 (25,4) (1,6) |
| Insurance service result before reinsurance contracts held | 2,1 | (27,2) | (10,2) | (24,4) |
| Net result from reinsurance contracts held | (3,8) | 11,9 | (9,2) | 8,9 |
| Insurance service result | (1,7) | (15,3) | (19,5) | (15,6) |
| Net income from investments Net insurance finance income or expenses Other income/expenses |
30,0 (6,0) ‐ |
31,8 (3,8) (0,8) |
43,6 (5,8) ‐ |
23,6 3,8 (3,2) |
| Profit/(loss) before tax expenses | 22,3 | 11,9 | 18,4 | 8,7 |
| Tax | (4,6) | 1,2 | (3,3) | 1,0 |
| Profit/(loss) | 17,6 | 13,2 | 15,1 | 9,7 |
| Financial assets through profit or loss [NOKm] | Currency | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|---|
| Shares | NOK | 521,1 | 2 407,5 | 54,8 | 2 983,4 |
| Bonds and other fixed income securities | NOK | ‐ | 15 111,2 | ‐ | 15 111,2 |
| Cash and cash equivalents | NOK | 508,8 | ‐ | ‐ | 508,8 |
| Derivatives: | |||||
| Foreign currency contracts | NOK | ‐ | 156,6 | ‐ | 156,6 |
| Options | NOK | ‐ | 98,6 | ‐ | 98,6 |
| Total assets 31.12.2023 | NOK | ‐ | 18,1 | ‐ | 18,1 |
| Total assets 31.12.2023 | NOK | 1 029,9 | 17 792,0 | 54,8 | 18 876,8 |
| Total assets 31.12.2022 | NOK | 1 249,5 | 13 567,8 | 148,4 | 14 965,7 |
| 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 | ‐ | (241,2) | ‐ | (241,2) |
| Other financial liabilities | NOK | 0,0 | ‐ | ‐ | 0,0 |
| Total financial liabilities 31.12.2023 | NOK | 0,0 | (241,2) | - | (241,2) |
| Total financial liabilities 31.12.2022 | NOK | 0,0 | (54,8) | ‐ | (54,8) |
| 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 liabilities 31.12.2023 | NOK | - | 30,3 | - | 30,3 |
| Total financial liabilities 31.12.2022 | 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. certificates or equivalent instruments issued by national governments are generally classified as level 1.
| NOKm | 31.12.23 | 31.12.22 |
|---|---|---|
| Total solvency capital requirement Total eligible own funds to meet SCR |
3 508 6 855 |
2 611 5 093 |
| Ratio of eligible own funds to SCR | 195 % | 195 % |
| Total minimum capital requirement | 1 579 | 1 175 |
| Ratio of eligible own funds to MCR | 354 % | 373 % |
| UK | Sweden | Norway | Denmark | Finland | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| NOKm | Q4 2023 |
Q4 2022 |
Q4 2023 |
Q4 2022 |
Q4 2023 |
Q4 2022 |
Q4 2023 |
Q4 2022 |
Q4 2023 |
Q4 2022 |
|
| Gross written premium | 1 132,0 | 597,2 | 452,9 | 383,5 | 212,9 | 143,6 | 235,0 | 142,6 | 27,4 | 8,3 | |
| Insurance revenue | 1 046,8 | 521,9 | 639,5 | 515,2 | 504,6 | 407,2 | 367,2 | 274,7 | 88,2 | 62,5 | |
| Insurance claims expenses | (803,9) | (284,1) | (439,9) | (365,3) | (462,9) | (431,7) | (189,3) | (268,6) | (67,3) | (34,3) | |
| Insurance operating expenses | (108,9) | (71,0) | (85,3) | (69,9) | (44,9) | (25,6) | (28,0) | (33,1) | (14,7) | (18,8) | |
| Whereof commissions to brokers and agents | (54,5) | (30,1) | (50,7) | (37,5) | (18,4) | (4,3) | (0,0) | (0,1) | 0,0 | - | |
| Insurance service result before reinsurance contracts held | 134,0 | 166,8 | 114,3 | 79,9 | (3,3) | (50,1) | 149,9 | (27,0) | 6,2 | 9,3 | |
| Reinsurance premium | (87,5) | (90,7) | (33,3) | (69,0) | (9,9) | (36,1) | (11,1) | (28,1) | (0,5) | (4,2) | |
| Amounts recovered from reinsurance | 108,3 | 42,7 | 8,5 | 34,6 | 15,5 | 72,4 | (30,3) | 63,0 | 0,2 | 3,2 | |
| Net result from reinsurance contracts held | 20,8 | (48,0) | (24,8) | (34,4) | 5,6 | 36,3 | (41,3) | 34,8 | (0,3) | (1,0) | |
| Insurance service result | 154,7 | 118,9 | 89,5 | 45,5 | 2,3 | (13,8) | 108,6 | 7,8 | 6,0 | 8,3 | |
| Large losses, net of reinsurance | (1) | (189,7) | (16,3) | (17,9) | (11,4) | (24,3) | (36,8) | (36,8) | ‐ | ‐ | ‐ |
| Run‐off gains/losses, net of reinsurance | (1) | 2,7 | (3,5) | 8,7 | (0,3) | (12,4) | (28,1) | 13,3 | 18,8 | (1,7) | 7,9 |
| Change in risk adjustment, net of reinsurance | (1) | (27,8) | (13,8) | 1,8 | (1,2) | (0,3) | (9,2) | (13,2) | (2,4) | (3,2) | (1,0) |
| Discounting effect, net of reinsurance | (1) | 53,6 | 35,0 | 10,6 | 7,4 | 9,4 | 21,3 | 36,7 | 10,0 | 6,6 | 2,9 |
| Loss ratio, gross | (1) | 76,8 % | 54,4 % | 68,8 % | 70,9 % | 91,8 % | 106,0 % | 51,5 % | 97,8 % | 76,3 % | 55,0 % |
| Net reinsurance ratio | (1) | ‐2,0 % | 9,2 % | 3,9 % | 6,7 % | ‐1,1 % | ‐8,9 % | 11,3 % | ‐12,7 % | 0,3 % | 1,6 % |
| Loss ratio, net of reinsurance | (1) | 74,8 % | 63,6 % | 72,7 % | 77,6 % | 90,6 % | 97,1 % | 62,8 % | 85,1 % | 76,6 % | 56,6 % |
| Cost ratio | (1) | 10,4 % | 13,6 % | 13,3 % | 13,6 % | 8,9 % | 6,3 % | 7,6 % | 12,0 % | 16,6 % | 30,1 % |
| Combined ratio | (1) | 85,2 % | 77,2 % | 86,0 % | 91,2 % | 99,5 % | 103,4 % | 70,4 % | 97,2 % | 93,2 % | 86,7 % |
| Retention rate | (1) | 91,6 % | 82,6 % | 94,8 % | 86,6 % | 98,0 % | 91,1 % | 97,0 % | 89,8 % | 99,4 % | 93,2 % |
| UK | Sweden | Norway | Denmark | Finland | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| FY | FY | FY | FY | FY | FY | FY | FY | FY | FY | ||
| NOKm | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |
| Gross written premium | 4 320,7 | 2 115,7 | 2 485,7 | 2 072,6 | 1 941,0 | 1 610,1 | 1 407,2 | 1 077,2 | 268,4 | 222,2 | |
| Insurance revenue | 3 503,6 | 1 813,6 | 2 399,8 | 1 942,4 | 1 883,4 | 1 582,5 | 1 335,8 | 1 040,4 | 263,0 | 240,2 | |
| Insurance claims expenses | (2 467,3) | (1 237,3) | (1 785,1) | (1 398,1) | (1 679,6) | (1 291,5) | (1 059,4) | (937,8) | (190,3) | (180,1) | |
| Insurance operating expenses | (417,1) | (264,3) | (322,2) | (241,3) | (137,5) | (100,4) | (99,7) | (87,2) | (34,7) | (41,4) | |
| Whereof commissions to brokers and agents | (185,2) | (107,3) | (184,3) | (128,9) | (42,0) | (19,3) | (0,1) | (1,2) | 0,0 | - | |
| Insurance service result before reinsurance contracts held | 619,1 | 312,0 | 292,5 | 303,1 | 66,3 | 190,7 | 176,7 | 15,4 | 38,0 | 18,7 | |
| Reinsurance premium | (364,8) | (343,7) | (119,7) | (212,0) | (27,8) | (144,3) | (69,6) | (108,4) | (1,8) | (18,0) | |
| Amounts recovered from reinsurance | 363,9 | 235,1 | 20,7 | 146,3 | 16,8 | 139,9 | 69,2 | 149,2 | 0,3 | 16,7 | |
| Net result from reinsurance contracts held | (0,8) | (108,6) | (99,0) | (65,6) | (11,1) | (4,4) | (0,4) | 40,9 | (1,5) | (1,3) | |
| Insurance service result | 618,3 | 203,4 | 193,5 | 237,4 | 55,2 | 186,3 | 176,3 | 56,3 | 36,6 | 17,4 | |
| Large losses, net of reinsurance | (1) | (329,6) | (180,8) | (48,8) | (146,0) | (113,1) | (46,5) | (59,2) | (52,7) | ‐ | ‐ |
| Run‐off gains/losses, net of reinsurance | (1) | (96,8) | 36,4 | 31,6 | 90,8 | 20,4 | 2,1 | (8,9) | (2,1) | 28,2 | 6,6 |
| Change in risk adjustment, net of reinsurance | (1) | (92,2) | (50,4) | (4,1) | (8,2) | (7,2) | (16,4) | (25,1) | (0,9) | (8,4) | (3,7) |
| Discounting effect, net of reinsurance | (1) | 210,9 | 74,0 | 43,9 | 17,9 | 33,5 | 46,4 | 78,1 | 10,6 | 24,6 | 5,6 |
| Loss ratio, gross | (1) | 70,4 % | 68,2 % | 74,4 % | 72,0 % | 89,2 % | 81,6 % | 79,3 % | 90,1 % | 72,3 % | 75,0 % |
| Net reinsurance ratio | (1) | 0,0 % | 6,0 % | 4,1 % | 3,4 % | 0,6 % | 0,3 % | 0,0 % | ‐3,9 % | 0,6 % | 0,5 % |
| Loss ratio, net of reinsurance | (1) | 70,4 % | 74,2 % | 78,5 % | 75,4 % | 89,8 % | 81,9 % | 79,3 % | 86,2 % | 72,9 % | 75,5 % |
| Cost ratio | (1) | 11,9 % | 14,6 % | 13,4 % | 12,4 % | 7,3 % | 6,3 % | 7,5 % | 8,4 % | 13,2 % | 17,2 % |
| Combined ratio | (1) | 82,4 % | 88,8 % | 91,9 % | 87,8 % | 97,1 % | 88,2 % | 86,8 % | 94,6 % | 86,1 % | 92,8 % |
| Retention rate | (1) | 89,6 % | 81,0 % | 95,0 % | 89,1 % | 98,5 % | 90,9 % | 94,8 % | 89,6 % | 99,3 % | 92,5 % |
| Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| NOKm | 2023 | 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | 2022 | 2021 | |
| Insurance revenue | 2 646,2 | 2 365,7 | 2 387,4 | 1 986,2 | 1 781,4 | 1 614,9 | 1 638,7 | 1 584,1 | 1 493,7 | |
| Insurance claims expenses | (1 963,3) | (1 831,4) | (1 555,8) | (1 831,2) | (1 384,1) | (1 222,9) | (1 176,3) | (1 261,5) | (1 249,5) | |
| Insurance operating expenses | (281,8) | (253,8) | (269,8) | (205,7) | (218,4) | (168,7) | (175,5) | (171,8) | (185,5) | |
| Insurance service result before reinsurance contracts held | 401,1 | 280,6 | 561,7 | (50,7) | 178,9 | 223,3 | 287,0 | 150,7 | 58,7 | |
| Reinsurance premium | (142,3) | (157,9) | (164,6) | (119,0) | (228,1) | (209,3) | (197,3) | (191,8) | (199,5) | |
| Amounts recovered from reinsurance | 102,3 | 76,3 | (13,3) | 305,6 | 215,9 | 202,2 | 158,9 | 110,4 | 244,5 | |
| Net result from reinsurance contracts held | (40,0) | (81,5) | (177,9) | 186,6 | (12,2) | (7,1) | (38,4) | (81,4) | 45,0 | |
| Insurance service result | 361,1 | 199,0 | 383,8 | 135,9 | 166,7 | 216,2 | 248,5 | 69,3 | 103,8 | |
| Net income from investments | 860,0 | 2,9 | (169,9) | 635,1 | 631,0 | 20,1 | (164,9) | (9,2) | 220,1 | |
| Net insurance finance income or expenses | (355,7) | (47,0) | 132,2 | (113,4) | (84,9) | 239,0 | 194,6 | 258,2 | 13,4 | |
| Other income/expenses | (25,6) | (33,2) | (15,7) | (16,0) | (23,1) | (18,7) | (16,0) | (16,2) | (17,2) | |
| Profit/(loss) before tax expenses | 839,8 | 121,7 | 330,5 | 641,5 | 689,7 | 456,7 | 262,2 | 302,1 | 320,1 | |
| Large losses, net of reinsurance | (1) | (268,7) | (184,0) | (111,7) | (19,5) | (64,5) | (99,1) | (44,4) | (143,5) | (90,9) |
| Run‐off gains/losses, net of reinsurance | (1) | 10,6 | (62,0) | 70,3 | (44,5) | (5,2) | 42,0 | 48,7 | 48,2 | (54,9) |
| Change in risk adjustment, net of reinsurance | (1) | (42,7) | (30,0) | (48,8) | (15,3) | (27,5) | (20,7) | (12,1) | (19,3) | (26,2) |
| Discounting effect, net of reinsurance | (1) | 116,9 | 65,4 | 149,6 | 59,0 | 76,7 | 43,4 | 21,8 | 12,6 | 21,6 |
| Loss ratio, gross | (1) | 74,2 % | 77,4 % | 65,2 % | 92,2 % | 77,7 % | 75,7 % | 71,8 % | 79,6 % | 83,7 % |
| Net reinsurance ratio | (1) | 1,5 % | 3,4 % | 7,5 % | ‐9,4 % | 0,7 % | 0,4 % | 2,3 % | 5,1 % | ‐3,0 % |
| Loss ratio, net of reinsurance | (1) | 75,7 % | 80,9 % | 72,6 % | 82,8 % | 78,4 % | 76,2 % | 74,1 % | 84,8 % | 80,6 % |
| Cost ratio | (1) | 10,7 % | 10,7 % | 11,3 % | 10,4 % | 12,3 % | 10,4 % | 10,7 % | 10,8 % | 12,4 % |
| Combined ratio | (1) | 86,4 % | 91,6 % | 83,9 % | 93,2 % | 90,6 % | 86,6 % | 84,8 % | 95,6 % | 93,1 % |
| Retention rate | (1) | 94,6 % | 93,3 % | 93,1 % | 94,0 % | 87,2 % | 87,0 % | 88,0 % | 87,9 % | 86,6 % |
| Q4 | Q4 | FY | FY | ||
|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | ||
| Return on assets under management (1) |
|||||
| Total net income from investments, continued business | NOKm | 860,0 | 631,0 | 1 328,0 | 477,0 |
| Total net income from investments, discontinued business | NOKm | 30,0 | 31,8 | 43,6 | 23,6 |
| Total return on assets under management | NOKm | 890,0 | 662,8 | 1 371,6 | 500,6 |
| Average investments, continued business | NOKm | 16 911,1 | 13 673,5 | 16 762,1 | 13 998,1 |
| Average investments, discontinued business | NOKm | 600,0 | 692,0 | 550,4 | 692,0 |
| Total average assets under management | NOKm | 17 511,0 | 14 365,5 | 17 312,5 | 14 690,1 |
| Return on investments, continued business | % | 5,1 % | 4,6 % | 7,9 % | 3,4 % |
| Return investments, discontinued business | % | 5,0 % | 4,6 % | 7,9 % | 3,4 % |
| Total return on assets under management | % | 5,1 % | 4,6 % | 7,9 % | 3,4 % |
| Total net income from shares | NOKm | 289,7 | 418,5 | 264,9 | 329,8 |
| Total net income from interests | NOKm | 600,3 | 244,3 | 1 106,7 | 170,8 |
| Total return on assets under management | NOKm | 890,0 | 662,8 | 1 371,6 | 500,6 |
| Average investments shares | NOKm | 2 673,4 | 2 284,5 | 2 706,4 | 2 377,5 |
| Average investments interests | NOKm | 14 837,6 | 12 081,0 | 14 606,1 | 12 312,6 |
| Total average assets under management | NOKm | 17 511,0 | 14 365,5 | 17 312,5 | 14 690,1 |
| Return on investments, shares | % | 10,8 % | 18,3 % | 9,8 % | 13,9 % |
| Return investments, interests | % | 4,0 % | 2,0 % | 7,6 % | 1,4 % |
| Total return on assets under management | % | 5,1 % | 4,6 % | 7,9 % | 3,4 % |
| Equity | NOKm | 4 528,6 | 3 761,5 | ||
| Equity per share | NOKm | 54,9 | 45,7 | ||
| Return on equity, annualised (1) |
% | 64,7 % | 70,7 % | 37,7 % | 42,9 % |
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