Protector Forsikring

Earnings Release • Jan 21, 2020

Update on volume growth and profitability

Update on volume growth and profitability

As previously communicated in the stock exchange announcement dated January 8th 2020, we will hereby give an update on Protector’s volume growth. We will also give an update on Protector’s profitability as the technical result in Q4 was weaker than guided.

The full year 2019 ended with a gross written premium (GWP) of MNOK 5 100, up 19% relative to 2018. The GWP in Q4 2019 amounted to MNOK 549, an increase of 16% compared to Q4 2018.

January is an important month in regards to volume growth. January 2020 shows a 4,7 % volume growth compared to January 2019. We expect a low single digit growth for Q1 2020. Significant price increases in the Nordics has resulted in a higher than normal churn. In Q4 2019 the price increases were 11%. For the large January 2020 renewal month the price increases were 13% . The higher than normal churn will result in a more profitable portfolio, as the majority of clients leaving were unprofitable. In the UK, volume is reduced by MNOK 50 due to a substantial deductible increase for our largest client.

Preliminary accounting figures shows a poor Q4 2019 relative to previous guiding. This is mainly due to run-off losses in some products, a large loss rate higher than normal and generally poor figures in Norway and Finland. In Q4 2019 the Combined ratio for own account (CR) was 111.1% and 103.8% for the full year 2019 ex. change of ownership insurance (COI). Including COI the CR was 111.9% and 101.4% respectively.

The investment return (prior to subtracting costs) exceeded expectations in Q4 2019, with a return of MNOK 125 (12,7%) for equities and MNOK 46 (0,46%) for fixed income. The full year return (prior to subtracting costs) amounted to MNOK 223 (2,1%), whereof MNOK -3 (-0,28%) derived from equity investments and MNOK 226 derived from the fixed income portfolio.

Based upon preliminary accounting figures the profit before tax (incl. COI) for the full year 2019 will be approx. MNOK 20.

Further information will be given on February 6th in connection with the presentation of the Q4 results.

Oslo, January 21st 2020

Protector Forsikring ASA

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)