Quarterly Report • Jul 12, 2019
Quarterly Report
Open in ViewerOpens in native device viewer
(UNAUDITED) JULY 2019
Protector Forsikring ASA recorded a loss of NOK -125.7m (NOK 53.8m) for the quarter. The result is driven by an arbitration loss regarding the Grenfell Tower claim, a weak technical result and a weak return on investments. The underwriting result was NOK -72.0m (NOK 2.8m) corresponding to a combined ratio of 107.2% (99.2%). Excluding the arbitration loss the net combined ratio was 99.8%.
Protector decided end of 2018 to exit the COI market and COI is in the P&L defined as «discontinued operations». Some figures below are also given as if COI business was continued business to ease the comparison with earlier reported figures.
Q2 2019 shows following development compared to Q2 2018:
| NOKm | Q2 2019 | Q2 2018 | H1 2019 | H1 2018 | FY 2018 |
|---|---|---|---|---|---|
| Gross premiums written | 1 105,9 | 838,3 | 3 819,2 | 3 186,7 | 4 286,1 |
| Gross premiums earned | 1 241,9 | 1 015,7 | 2 388,8 | 1 974,0 | 4 139,6 |
| Gross claims incurred | (1 150,0) | (889,3) | (2 221,7) | (1 760,5) | (3 859,3) |
| Earned premiums, net of reinsurance | 1 011,9 | 699,8 | 1 902,5 | 1 369,1 | 2 817,8 |
| Other insurance related income | 3,2 | 2,9 | 6,4 | 4,1 | 25,5 |
| Claims incurred, net of reinsurance | (999,8) | (670,5) | (1 884,2) | (1 305,8) | (2 658,3) |
| Sales cost | (65,6) | (49,3) | (114,6) | (100,9) | (205,6) |
| Administration cost | (42,9) | (35,0) | (80,9) | (68,2) | (143,1) |
| Commission from reinsurer | 23,1 | 61,0 | 51,1 | 160,3 | 229,2 |
| Other insurance related expenses | (1,9) | (6,0) | (7,1) | (7,3) | (20,2) |
| Technical result | (72,0) | 2,8 | (126,6) | 51,4 | 45,3 |
| Other income/costs | (13,2) | (12,6) | (27,4) | (24,5) | (49,4) |
| Net financial income | (31,7) | 78,7 | 49,5 | 86,6 | (19,8) |
| Profit before tax | (116,9) | 68,9 | (104,6) | 113,5 | (23,9) |
| Tax | (0,1) | (17,7) | (0,1) | (44,4) | 3,2 |
| Discontinued business, change of ownership insurance | (10,8) | 21,1 | 69,1 | 5,2 | (274,7) |
| Net comprehensive income | 2,2 | (18,6) | 1,8 | (22,8) | 0,2 |
| Profit for the period | (125,7) | 53,8 | (33,8) | 51,4 | (295,2) |
| Claims ratio, net of ceded business | (1) 98,8 % |
95,8 % | 99,0 % | 95,4 % | 94,3 % |
| Expense ratio, net of ceded business | (2) 8,4 % |
3,3 % | 7,6 % | 0,6 % | 4,2 % |
| Combined ratio, net of ceded business | (3) 107,2 % |
99,2 % | 106,6 % | 96,0 % | 98,6 % |
| Gross claims ratio | (4) 92,6 % |
87,5 % | 93,0 % | 89,2 % | 93,2 % |
| Gross expense ratio | (5) 8,7 % |
8,3 % | 8,2 % | 8,6 % | 8,4 % |
| Gross combined ratio | (6) 101,3 % |
95,8 % | 101,2 % | 97,7 % | 101,7 % |
| Retention rate | (7) 81,5 % |
68,9 % | 68,9 % | 79,6 % | 68,1 % |
| Earnings per share | (8) (1,6) |
0,8 | (0,4) | 0,9 | (3,5) |
(1) Claims incurred, net of reinsurance in % of earned premiums, net of reinsurance
(2) Operating expenses in % of earned premiums, net of reinsurance
(3) Net claims ratio + net expense ratio
(4) Gross claims incurred in % of gross premiums earned
(5) Sales and administration costs in % of gross premiums earned
(6) Gross claims ratio + gross expense ratio
(7) Earned premiums, net of reinsurance in % of gross earned premiums
(8) Profit before other comprehensive income divided by weighted number of shares
In Q2, gross premiums written increased by 32% to a total of NOK 1,105.9m. The volume growth is driven by strong volume growth in the UK and Sweden. NOK 45 million of the volume growth is due to price increases in the Nordic countries.
The growth per country was;
| Gross premiums written (NOKm) | Q2 2019 | Q2 2018 | Growth in quarter | |
|---|---|---|---|---|
| Norway | 333,9 | 289,8 | 44,1 | 15,2 % |
| Sweden | 402,7 | 294,1 | 108,6 | 36,9 % |
| Denmark | 40,2 | 10,4 | 29,9 | 288,2 % |
| UK | 311,2 | 230,3 | 80,9 | 35,1 % |
| Finland | 17,8 | 13,7 | 4,1 | 29,9 % |
| Total | 1105,9 | 838,3 | 267,6 | 31,9 % |
Gross premiums earned increased by NOK 226.2m or by 22% to a total of NOK 1,241.9m.
The growth per country was;
| Gross premiums earned (NOKm) | Q2 2019 | Q2 2018 | Growth in quarter | |
|---|---|---|---|---|
| Norway | 405,6 | 368,4 | 37,2 | 10,1 % |
| Sweden | 374,7 | 319,6 | 55,1 | 17,2 % |
| Denmark | 227,6 | 187,1 | 40,5 | 21,7 % |
| UK | 178,9 | 92,9 | 86,0 | 92,6 % |
| Finland | 55,2 | 47,8 | 7,3 | 15,3 % |
| Total | 1241,9 | 1015,7 | 226,2 | 22,3 % |
Premiums earned for own account amounted to NOK 1.011,9, an increase of 45% compared to Q2 2018. The strong growth is due to the overall premium growth and an increased retention rate due to changes in the reinsurance structure. The retention rate will gradually increase through the year.
The growth in net premiums earned per country was;
| Net premiums earned (NOKm) | Q2 2019 | Q2 2018 | Growth in quarter | |
|---|---|---|---|---|
| Norway | 347,4 | 280,7 | 66,7 | 23,8 % |
| Sweden | 307,9 | 216,2 | 91,7 | 42,4 % |
| Denmark | 191,6 | 121,8 | 69,9 | 57,4 % |
| UK | 116,1 | 43,2 | 73,0 | 169,1 % |
| Finland | 48,8 | 37,9 | 10,9 | 28,7 % |
| Total | 1011,9 | 699,8 | 312,1 | 44,6 % |
Gross written premiums totalled NOK 3,819.2m, representing a 20% growth.
The growth by country was:
| Gross premiums written (NOKm) | H1 2019 | H1 2018 | Growth in quarter | |
|---|---|---|---|---|
| Norway | 1137,9 | 1059,6 | 78,2 | 7,4 % |
| Sweden | 1188,5 | 997,0 | 191,4 | 19,2 % |
| Denmark | 801,5 | 704,4 | 97,1 | 13,8 % |
| UK | 486,7 | 290,4 | 196,3 | 67,6 % |
| Finland | 204,8 | 135,3 | 69,5 | 51,3 % |
| Total | 3819,2 | 3186,7 | 632,5 | 19,8 % |
Gross premiums earned increased by 21% from NOK 1.974.0m to a total of NOK 2,388.8m.
The growth by country was:
| Gross premiums earned (NOKm) | H1 2019 | H1 2018 | Growth in quarter | |
|---|---|---|---|---|
| Norway | 781,1 | 729,9 | 51,3 | 7,0 % |
| Sweden | 720,5 | 610,2 | 110,3 | 18,1 % |
| Denmark | 435,2 | 383,2 | 52,0 | 13,6 % |
| UK | 332,3 | 162,3 | 170,0 | 104,7 % |
| Finland | 119,7 | 88,4 | 31,3 | 35,4 % |
| Total | 2388,8 | 1974,0 | 414,8 | 21,0 % |
The premiums earned for own account totalled to NOK 1,902.5m, an increase of 39% compared to H1 2018.
The premiums earned for own account by country was:
| Net premiums earned (NOKm) | H1 2019 | H1 2018 | Growth in quarter | |
|---|---|---|---|---|
| Norway | 661,9 | 555,1 | 106,8 | 19,2 % |
| Sweden | 569,7 | 413,8 | 155,9 | 37,7 % |
| Denmark | 365,5 | 254,0 | 111,5 | 43,9 % |
| UK | 199,7 | 76,2 | 123,6 | 162,2 % |
| Finland | 105,7 | 70,1 | 35,6 | 50,8 % |
| Total | 1902,5 | 1369,1 | 533,4 | 39,0 % |
In Q2, the loss for the quarter totalled NOK -125.7m against a profit of NOK 53.8m in Q2 2018. The weak result is driven by a weak technical result and a weak return on investments.
The Grenfell Tower claim hits the result by approx. NOK 75m. The technical result is weak even without the NOK 75m one-off. Price increases came too late and with too little and price and profitability measures going forward will be further strengthened in the Nordic region.
The net combined ratio was 107.2%, 8 percentage points higher than the 99,2% reported in Q2 2018.
The net combined ratio by country was:
| Net combined ratio | Q2 2019 | Q2 2018 |
|---|---|---|
| Norway | 91,6 % | 96,5 % |
| Sweden | 99,1 % | 85,2 % |
| Denmark | 109,5 % | 108,6 % |
| UK | 155,0 % | 73,2 % |
| Finland | 147,7 % | 129,6 % |
| Total | 107,2 % | 99,2 % |
In Q2 the company had run-off losses of 9.7%. Exclusive the Grenfell Tower claim the company had run-off losses of 2.3%.
The claims ratio for own account increased from 95.8% in Q2 2018 to 98.8 % in Q2 2019. The claims ratio is driven by the Arbitration loss, high claims inflation within Motor in the Nordic countries and a loss ratio on large claims higher than normalized.
The expense ratio for own account amounted to 8.4%, up from 3.3 % in Q2 2018. The increase is due to significant reductions in reinsurance commissions due to change in reinsurance structure (from Surplus to Risk XL on property). Strong growth in Sweden and the UK drives also broker commissions upwards.
In H1, the loss for the half-year totalled NOK -33.8m against a profit of NOK 51.4m in H1 2018. The net combined ratio was 106.6%, compared to 96.0% in H1 2018.
The net combined ratio for the half-year by country was:
| Net combined ratio | H1 2019 | H1 2018 |
|---|---|---|
| Norway | 96,5 % | 104,2 % |
| Sweden | 99,3 % | 78,9 % |
| Denmark | 112,9 % | 96,8 % |
| UK | 139,9 % | 92,1 % |
| Finland | 124,8 % | 133,6 % |
| Total | 106,6 % | 96,0 % |
In H1 the company had run-off losses of 1.9%. Exclusive the Grenfell Tower claim the company had run-off gains of 2.0%.
The gross expense ratio was 8.2% down from 8.6% in H1 2018, whilst the net expense ratio was 7.6%, up from 0.6%. The low net cost ratio in 2018 comes from a high level of reinsurance commissions.
Net investment portfolio amounted to a total of NOK 10.896m at 30 June 2019, up 4.2% compared to the portfolio end of Q2 2018.
INTERIM REPORT Q2 2019 | PROTECTOR FORSIKRING ASA | PAGE 6 of 17
Investment activities yielded a total negative return of NOK -69,3m, or -0.6% compared to a return of NOK 112,3m or 1.1% in Q2 2018. Equities accounted for a NOK 122,0m loss (-10.1%) against a NOK 75.4m gain (4.5%) in Q2 2018. Return on the fixed income portfolio totalled NOK 52,7m or 0.5% against NOK 36.9m or 0.4% in Q2 2018.
In H1, the investment result was NOK 41.9m (0.4%) against NOK 114.8m (1.1%) in H1 2018. Equities accounted for a NOK 69.7m loss (-6.2%) against NOK 32.8m gain (1.9%) in H1 2018. The return on the fixed income portfolio totalled NOK 111.7m or 1.2% against NOK 82.0m or 1,0% in H1 2018.
End of Q2 2019, 10,3% of Protector's financial assets were invested in equities, against 9.9% year end 2018.
The company's equity amounted to NOK 1,988.0m at the end of the quarter. End of Q2, the solvency capital requirement (SCR) ratio using the standard formula was 164%, which is within the company's risk appetite but weaker than the SCR ratio year end 2018. The company's long term objective is to maintain a SCR-ratio (calculated according to the Solvency II regulations) above 150 %.
Protector has a BBB+ rating from A.M. Best.
The technical result is weak even without the Grenfell Tower claim. Price and profitability measures implemented have come too late and are not sufficient. Going forward, price increases and other profitability measures will be further strengthened in the Nordic countries and the technical result is expected to be improved.
Claims development, and the inherent volatility of capital markets, are continued to be the most important risk factors that could affect the company's profit in 2019.
Oslo, 11th July 2019
The Board of Directors of Protector Forsikring ASA
| NOKm | Q2 2019 | Q2 2018 | H1 2019 | H1 2018 | FY 2018 |
|---|---|---|---|---|---|
| Premium income | |||||
| Gross written premiums | 1 105,9 | 838,3 | 3 819,2 | 3 186,7 | 4 286,1 |
| Change in provisions for unearned premiums | 136,1 | 177,5 | (1 430,4) | (1 212,7) | (146,5) |
| Gross premiums earned | 1 241,9 | 1 015,7 | 2 388,8 | 1 974,0 | 4 139,6 |
| Reinsurers' share of earned premiums | (230,0) | (316,0) | (486,3) | (604,9) | (1 321,8) |
| Earned premiums, net of reinsurance | 1 011,9 | 699,8 | 1 902,5 | 1 369,1 | 2 817,8 |
| Other insurance-related income | 3,2 | 2,9 | 6,4 | 4,1 | 25,5 |
| Gross claims incurred | (1 150,0) | (889,3) | (2 221,7) | (1 760,5) | (3 859,3) |
| Reinsurers' share of claims incurred | 150,2 | 218,7 | 337,5 | 454,7 | 1 201,0 |
| Claims incurred, net of reinsurance | (999,8) | (670,5) | (1 884,2) | (1 305,8) | (2 658,3) |
| Operating expenses | |||||
| Sales costs | (65,6) | (49,3) | (114,6) | (100,9) | (205,6) |
| Administration costs | (42,9) | (35,0) | (80,9) | (68,2) | (143,1) |
| Commission from reinsurers | 23,1 | 61,0 | 51,1 | 160,3 | 229,2 |
| Total operating expenses, net of reinsurance | (85,4) | (23,3) | (144,3) | (8,7) | (119,6) |
| Other insurance-related expenses | (1,9) | (6,0) | (7,1) | (7,3) | (20,2) |
| Technical result | (72,0) | 2,8 | (126,6) | 51,4 | 45,3 |
| Net income from financial assets | (31,7) | 78,7 | 49,5 | 86,6 | (19,8) |
| Other income | 0,4 | 0,3 | 0,7 | 0,3 | 1,4 |
| Other expenses | (13,6) | (12,9) | (28,1) | (24,9) | (50,7) |
| Other income/expenses | (13,2) | (12,6) | (27,4) | (24,5) | (49,4) |
| Non-technical result | (45,0) | 66,1 | 22,1 | 62,1 | (69,2) |
| Profit before tax | (116,9) | 68,9 | (104,6) | 113,5 | (23,9) |
| Tax | (0,1) | (17,7) | (0,1) | (44,4) | 3,2 |
| Discontinued operations | (10,8) | 21,1 | 69,1 | 5,2 | (274,7) |
| Profit before components of comprehensive income | (127,9) | 72,4 | (35,6) | 74,2 | (295,4) |
| Actuarial gain and loss from defined benefit pension plans | - | - | - | - | 0,3 |
| Currency changes from foreign enterprise | 2,5 | (24,7) | 1,9 | (30,4) | (0,1) |
| Taxes on components of comprehensive income | (0,3) | 6,2 | (0,1) | 7,6 | (0,1) |
| Profit for the period | (125,7) | 53,8 | (33,8) | 51,4 | (295,2) |
| Earnings per share | (1,56) | 0,84 | (0,43) | 0,86 | (3,5) |
| Earnings per share, diluted | (1,56) | 0,84 | (0,43) | 0,86 | (3,5) |
| NOKm | 30.6.2019 | 30.6.2018 | 31.12.2018 |
|---|---|---|---|
| Assets | |||
| Intangible fixed assets | |||
| Other intangible fixed assets | 26,6 | 20,1 | 24,1 |
| Total intangible fixed assets | 26,6 | 20,1 | 24,1 |
| Buildings and other real estates | |||
| Owner-occupied property | 13,1 | 13,7 | 13,4 |
| Total buildings and other real estates | 13,1 | 13,7 | 13,4 |
| Financial assets | |||
| Shares | 896,3 | 1 219,9 | 745,2 |
| Securities, bonds etc | 7 164,2 | 6 764,5 | 6 386,6 |
| Financial derivatives | 16,7 | 10,9 | 25,7 |
| Bank deposits | 839,0 | 357,4 | 460,1 |
| Total financial assets | 8 916,3 | 8 352,6 | 7 617,5 |
| Reinsurers share of gross technical provisions | |||
| Reinsurers share of gross premium provisions | 288,0 | 647,4 | 292,6 |
| Reinsurers share of gross claims provisions | 1 679,6 | 1 772,7 | 1 899,8 |
| Total reinsurers share of gross technical provisions | 1 967,6 | 2 420,1 | 2 192,4 |
| Receivables | |||
| Policyholders | 628,1 | 323,7 | 256,9 |
| Intermediaries | 6,6 | 150,6 | 5,0 |
| Other receivables | 19,1 | (17,5) | 65,7 |
| Total receivables | 653,8 | 456,8 | 327,6 |
| Other assets | |||
| Tangible fixed assets | 38,1 | 27,9 | 25,8 |
| Cash and bank deposits | 151,4 | 190,7 | 278,6 |
| Total other assets | 189,5 | 218,5 | 304,4 |
| Total prepaid expenses | 415,0 | 289,3 | 235,4 |
| Assets discontinued operations | 2 828,8 | 2 286,3 | 2 117,2 |
| Total assets | 15 010,7 | 14 057,4 | 12 832,1 |
| NOKm | 30.06.2019 | 30.06.2018 | 31.12.2018 |
|---|---|---|---|
| Equity and liabilities | |||
| Shareholders' equity | |||
| Share capital [86.155.605 shares] | 86,2 | 86,2 | 86,2 |
| Own shares | (4,4) | (0,0) | (4,4) |
| Other paid-in equity | 267,7 | 267,7 | 267,7 |
| Total paid-in equity | 349,4 | 353,8 | 349,4 |
| Earned equity | |||
| Natural perils fund | 67,8 | 46,6 | 54,8 |
| Guarantee scheme | 89,2 | 58,3 | 88,5 |
| Other equity | 1 481,6 | 2 163,5 | 1 540,4 |
| Total earned equity | 1 638,6 | 2 268,4 | 1 683,6 |
| Total equity | 1 988,0 | 2 622,2 | 2 033,1 |
| Subordinated loan capital | 1 243,3 | 1 243,3 | 1 243,3 |
| Technical provisions | |||
| Provisions for unearned premiums | 2 493,4 | 2 136,5 | 1 104,7 |
| Provisions for claims | 6 332,4 | 5 480,7 | 5 997,4 |
| Total technical provisions | 8 825,8 | 7 617,2 | 7 102,1 |
| Provisions for other risks and liabilities | |||
| Pension liabilities | 13,0 | 12,1 | 13,0 |
| Current tax liability | 12,5 | 12,8 | - |
| Deferred tax liability | 123,2 | 155,4 | 105,4 |
| Total provisions for other risks and liabilities | 148,8 | 180,3 | 118,4 |
| Liabilities | |||
| Liabilities in connection with insurance | 143,8 | 114,4 | 93,0 |
| Liabilities in connection with reinsurance | 536,7 | 938,3 | 393,3 |
| Financial derivates | 22,1 | 4,6 | 8,6 |
| Other liabilities | 354,9 | 149,6 | 205,6 |
| Total liabilities | 1 057,5 | 1 206,9 | 700,4 |
| Incurred expenses and prepaid income | |||
| Other incurred expenses and prepaid income | 119,2 | 138,9 | 328,2 |
| Total incurred expenses and prepaid income | 119,2 | 138,9 | 328,2 |
| Liabilites discontinued operations | 1 628,1 | 1 048,6 | 1 306,5 |
| Total equity and liabilities | 15 010,7 | 14 057,4 | 12 832,1 |
| [NOKm] | Q2 2019 | Q2 2018 | 30.06.2019 | 30.06.2018 | FY 2018 |
|---|---|---|---|---|---|
| Cash flow from operations | |||||
| Premiums paid | 1 188,8 | 1 015,4 | 3 393,4 | 2 975,6 | 4 903,0 |
| Claims paid | (825,8) | (724,1) | (1 830,5) | (1 571,5) | (3 642,0) |
| Paid reinsurance | 281,1 | (14,2) | 240,7 | (98,5) | (238,8) |
| Paid operating expenses including commissions | (196,4) | (97,1) | (429,1) | (178,7) | (348,8) |
| Interest / dividend income | 81,7 | 71,6 | 139,3 | 119,3 | 247,8 |
| Net payments from financial instruments | (347,5) | 161,6 | (1 019,8) | (978,1) | (117,0) |
| Payable tax | (18,1) | 1,1 | 2,9 | (68,9) | (119,1) |
| Net cash flow from operations | 163,9 | 414,2 | 496,9 | 199,2 | 684,9 |
| Cash flow from investment activities | |||||
| Investments in fixed assets | (14,9) | (22,0) | (28,9) | (25,5) | (39,0) |
| Net cash flow from investment activities | (14,9) | (22,0) | (28,9) | (25,5) | (39,0) |
| Cash flow from financial activities | |||||
| Interest payments on subordinated loan capital | (16,3) | (15,6) | (32,1) | (30,2) | (61,4) |
| Repayment of equity | - | - | - | - | (259,0) |
| Net cash flow from financial activities | (16,3) | (15,6) | (32,1) | (30,2) | (320,5) |
| Net cash flow for the period | 132,7 | 376,6 | 435,8 | 143,5 | 325,4 |
| Net change in cash and cash equivalents | 132,7 | 376,6 | 435,8 | 143,5 | 325,4 |
| Cash and cash equivalents opening balance | 859,5 | 293,1 | 859,5 | 537,7 | 537,7 |
| Effects of exchange rate changes on cash and cash equivalents | (1,0) | (8,1) | (8,2) | (19,5) | (3,6) |
| Cash and cash equivalents closing balance | 991,2 | 661,6 | 1 287,1 | 661,6 | 859,5 |
| [NOKm] | Share Capital |
Own shares Other paid-in equity |
Natural perils fund |
Guarantee scheme |
Other equity | Total | |
|---|---|---|---|---|---|---|---|
| Equity at 31.12.2017 | 86,2 | (0,0) | 267,7 | 22,7 | 85,9 | 2 128,8 | 2 591,3 |
| Profit for the period | - | - | 15,7 | (28,5) | 10,3 | (2,4) | |
| Currency changes | (15,5) | (15,5) | |||||
| Own shares | (0,0) | (0,0) | |||||
| Equity at 31.03.2018 | 86,2 | (0,0) | 267,7 | 38,4 | 57,4 | 2 123,7 | 2 573,3 |
| Profit for the period | - | - | 8,2 | 0,8 | 45,1 | 54,1 | |
| Currency changes | (5,4) | (5,4) | |||||
| Own shares | - | 0,1 | 0,1 | ||||
| Equity at 30.06.2018 | 86,2 | (0,0) | 267,7 | 46,6 | 58,3 | 2 163,5 | 2 622,2 |
| Profit for the period | - | - | 8,4 | 0,6 - | 75,2 - | 66,2 | |
| Currency changes | 8,1 | 8,1 | |||||
| Own shares | (4,4) | 254,7 - |
(259,1) | ||||
| Equity at 30.09.2018 | 86,2 | (4,4) | 267,7 | 55,0 | 58,9 | 1 841,7 | 2 305,0 |
| Profit for the period | - | 0,0 | - | (0,2) | 29,5 - | 310,9 - | 281,5 |
| Currency changes | 9,6 | 9,6 | |||||
| Own shares | - | - | |||||
| Equity at 31.12.2018 | 86,2 | (4,4) | 267,7 | 54,8 | 88,5 | 1 540,3 | 2 033,0 |
| Profit for the period | - | 0,0 | - | 24,3 | 0,5 | 67,1 | 91,9 |
| Currency changes | (10,5) | (10,5) | |||||
| Own shares | (0,0) | (0,0) | |||||
| Equity at 31.03.2019 | 86,2 | (4,4) | 267,7 | 79,1 | 89,0 | 1 596,9 | 2 114,4 |
| Profit for the period | - | 0,0 | - | (11,3) | 0,2 - | 114,6 - | 125,7 |
| Currency changes | (0,8) | (0,8) | |||||
| Own shares | (0,0) | (0,0) | |||||
| Equity at 30.06.2019 | 86,2 | (4,4) | 267,7 | 67,8 | 89,2 | 1 481,6 | 1 988,0 |
These interim accounts have been prepared in accordance with the Financial Statement Regulation for Non-life Insurance Companies (Forskrift om årsregnskap for skadeforsikringsselskaper) and IAS 34 and in line with the accounting principles described in the annual report for 2018. The company's financial statements are prepared in accordance with the Norwegian Accounting Act, Financial Statement Regulation for Non-life Insurance Companies and generally accepted accounting principles. For further information, please see the 2018 annual report.
Protector Forsikring ASA's operations comprise the segments Norway, Sweden, Denmark, Finland and the UK. The segments are evaluated regularly by Protector's executive management based on financial and operational information specially prepared for each segment for the purpose of following up performance and allocating necessary resources.
| Norway | Sweden | Denmark | UK | Finland | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| [NOKm] | Q2 2019 | Q2 2018 | Q2 2019 | Q2 2018 | Q2 2019 | Q2 2018 | Q2 2019 | Q2 2018 | Q2 2019 | Q2 2018 |
| Gross premiums written | 333,9 | 289,8 | 402,7 | 294,1 | 40,2 | 10,4 | 311,2 | 230,3 | 17,8 | 13,7 |
| Gross premiums earned | 405,6 | 368,4 | 374,7 | 319,6 | 227,6 | 187,1 | 178,9 | 92,9 | 55,2 | 47,8 |
| Gross claims incurred | (343,3) | (358,3) | (374,4) | (239,6) | (233,8) | (177,9) | (124,2) | (57,0) | (74,4) | (56,5) |
| Earned premiums, net of reinsurance | 347,4 | 280,7 | 307,9 | 216,2 | 191,6 | 121,8 | 116,1 | 43,2 | 48,8 | 37,9 |
| Other insurance related income | 1,6 | 1,2 | 0,1 | 0,1 | 0,7 | 1,0 | 0,5 | 0,4 | 0,3 | 0,2 |
| Claims incurred, net of reinsurance | (310,6) | (289,4) | (263,2) | (171,7) | (197,1) | (126,2) | (162,0) | (37,8) | (66,9) | (45,5) |
| Sales cost | (3,4) | (8,9) | (40,8) | (23,3) | (2,7) | (2,9) | (15,7) | (13,0) | (3,0) | (1,2) |
| Administration cost | (10,9) | (8,0) | (7,4) | (8,3) | (12,3) | (10,6) | (12,0) | (5,7) | (0,3) | (2,3) |
| Commission from reinsurer | 6,7 | 9,7 | 6,4 | 19,1 | 2,3 | 7,5 | 9,6 | 24,9 | (1,9) | (0,2) |
| Other insurance related expenses | (1,8) | 5,3 | (0,2) | (12,6) | (0,0) | 1,2 | (0,3) | 0,2 | 0,4 | (0,2) |
| Technical result | 29,0 | (9,4) | 2,8 | 19,5 | (17,4) | (8,3) | (63,7) | 12,2 | (22,6) | (11,2) |
| Other income/costs | (13,1) | (12,5) | (0,0) | (0,0) | (0,1) | (0,0) | - | - | (0,0) | (0,0) |
| Net financial income | (52,2) | 70,0 | 13,6 | 7,1 | 0,8 | 0,9 | 0,5 | 0,1 | 5,6 | 0,5 |
| Profit before tax | (36,3) | 48,1 | 16,3 | 26,5 | (16,8) | (7,4) | (63,2) | 12,3 | (17,0) | (10,6) |
| Claims ratio, net of ceded business (1) |
89,4 % | 103,1 % | 85,5 % | 79,4 % | 102,9 % | 103,7 % | 139,5 % | 87,5 % | 137,0 % | 119,9 % |
| Expense ratio, net of ceded business (2) |
2,2 % | 2,6 % | 13,6 % | 5,8 % | 6,6 % | 4,9 % | 15,6 % | -14,2 % | 10,7 % | 9,7 % |
| Combined ratio, net of ceded business (3) |
91,6 % | 105,7 % | 99,1 % | 85,2 % | 109,5 % | 108,6 % | 155,0 % | 73,2 % | 147,7 % | 129,6 % |
| Gross claims ratio (4) |
84,6 % | 97,3 % | 99,9 % | 75,0 % | 102,7 % | 95,1 % | 69,4 % | 61,4 % | 134,8 % | 118,1 % |
| Gross expense ratio (5) |
3,5 % | 4,6 % | 12,9 % | 9,9 % | 6,6 % | 7,2 % | 15,5 % | 20,2 % | 6,0 % | 7,3 % |
| Gross combined ratio (6) |
88,2 % | 101,9 % | 112,8 % | 84,9 % | 109,3 % | 102,3 % | 84,9 % | 81,5 % | 140,8 % | 125,4 % |
(1) Claims incurred, net of reinsurance in % of earned premiums, net of reinsurance
(2) Operating expenses in % of earned premiums, net of reinsurance
(3) Net claims ratio + net expense ratio
(4) Gross claims incurred in % of gross premiums earned
(5) Sales and administration costs in % of gross premiums earned
(6) Gross claims ratio + gross expense ratio
| Norway | Sweden | Denmark | UK | Finland | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| [NOKm] | H1 2019 | H1 2018 | H1 2019 | H1 2018 | H1 2019 | H1 2018 | H1 2019 | H1 2018 | H1 2019 | H1 2018 | |
| Gross premiums written | 1 137,9 | 1 059,6 | 1 188,5 | 997,0 | 801,5 | 704,4 | 486,7 | 290,4 | 204,8 | 135,3 | |
| Gross premiums earned | 781,1 | 729,9 | 720,5 | 610,2 | 435,2 | 383,2 | 332,3 | 162,3 | 119,7 | 88,4 | |
| Gross claims incurred | (675,7) | (735,8) | (700,5) | (430,5) | (456,3) | (386,7) | (249,8) | (97,2) | (139,4) | (110,2) | |
| Earned premiums, net of reinsurance | 661,9 | 555,1 | 569,7 | 413,8 | 365,5 | 254,0 | 199,7 | 76,2 | 105,7 | 70,1 | |
| Other insurance related income | 2,1 | 1,8 | 0,2 | 0,2 | 0,9 | 1,1 | 1,9 | 0,4 | 1,2 | 0,6 | |
| Claims incurred, net of reinsurance | (609,5) | (564,8) | (506,6) | (325,1) | (392,6) | (257,6) | (251,5) | (69,6) | (123,9) | (88,7) | |
| Sales cost | (14,2) | (24,2) | (65,7) | (49,1) | (9,7) | (7,6) | (21,0) | (18,0) | (3,9) | (1,9) | |
| Administration cost | (23,3) | (20,9) | (18,1) | (15,9) | (18,7) | (16,4) | (17,7) | (10,4) | (3,1) | (4,5) | |
| Commission from reinsurer | 8,3 | 31,8 | 25,0 | 63,4 | 8,2 | 35,8 | 10,7 | 27,8 | (1,0) | 1,5 | |
| Other insurance related expenses | (3,0) | 4,1 | (2,6) | (12,7) | (0,5) | 1,1 | (0,7) | 0,2 | (0,3) | (0,2) | |
| Technical result | 22,2 | (17,2) | 1,9 | 74,7 | (46,8) | 10,4 | (78,6) | 6,7 | (25,2) | (23,2) | |
| Other income/costs | (27,2) | (24,4) | (0,1) | (0,1) | 0,0 | (0,0) | - | 0,0 | (0,2) | (0,0) | |
| Net financial income | 16,0 | 63,1 | 21,7 | 19,1 | 2,6 | 3,5 | 3,3 | 0,1 | 6,0 | 1,0 | |
| Profit before tax | 11,0 | 21,5 | 23,5 | 93,7 | (44,2) | 13,8 | (75,4) | 6,7 | (19,4) | (22,2) | |
| Claims ratio, net of ceded business | (1) | 92,1 % | 101,8 % | 88,9 % | 78,6 % | 107,4 % | 101,4 % | 125,9 % | 91,3 % | 117,2 % | 126,6 % |
| Expense ratio, net of ceded business | (2) | 4,4 % | 2,4 % | 10,3 % | 0,4 % | 5,5 % | -4,6 % | 14,0 % | 0,8 % | 7,6 % | 7,0 % |
| Combined ratio, net of ceded business | (3) | 96,5 % | 104,2 % | 99,3 % | 78,9 % | 112,9 % | 96,8 % | 139,9 % | 92,1 % | 124,8 % | 133,6 % |
| Gross claims ratio | (4) | 86,5 % | 100,8 % | 97,2 % | 70,6 % | 104,8 % | 100,9 % | 75,2 % | 59,9 % | 116,4 % | 124,7 % |
| Gross expense ratio | (5) | 4,8 % | 6,2 % | 11,6 % | 10,7 % | 6,5 % | 6,3 % | 11,7 % | 17,5 % | 5,8 % | 7,2 % |
| Gross combined ratio | (6) | 91,3 % | 107,0 % | 108,9 % | 81,2 % | 111,4 % | 107,2 % | 86,8 % | 77,4 % | 122,3 % | 131,9 % |
Protector decided in 2018 to exit the COI market due to the product's recent years weak technical performance, and due to the significant uncertainty related to the product's future premium development and profitability. After the decision to exit the COI market, COI is defined as "discontinued operations" in the accounts. Net profit and assets and liabilities associated with COI are presented on separated lines as discontinued operations.
Protector has in July 2019 entered into a 50% quota share agreement (reinsurance) for the entire COI portfolio. The quota share agreement includes the historical portfolio as well as all new business written until the policy writing cease.
| [NOKm] | Q2 2019 | Q2 2018 | H1 2019 | H1 2018 | FY 2018 |
|---|---|---|---|---|---|
| Gross premiums earned | 110 | 179 | 199 | 292 | 514 |
| Reinsurers' share of earned premiums | (51) | (18) | (59) | (29) | (51) |
| Earned premiums, net of reinsurance | 59 | 161 | 139 | 263 | 462 |
| Gross claims incurred | (77) | (175) | (78) | (295) | (749) |
| Reinsurers' share of claims incurred | 45 | 18 | 45 | 29 | 75 |
| Claims incurred, net of reinsurance | (32) | (158) | (33) | (265) | (675) |
| Total operating expenses, net of reinsurance | 2 | (5) | 6 | (11) | (55) |
| Other insurance-related income/expenses | (0) | (0) | (0) | (0) | (0) |
| Technical result | 30 | (2) | 113 | (13) | (268) |
| Net income from financial assets | (38) | 34 | (8) | 28 | (36) |
| Other income/expenses | (3) | (3) | (6) | (6) | (13) |
| Non-technical result | (41) | 30 | (14) | 22 | (49) |
| Profit before tax | (11) | 28 | 99 | 8 | (317) |
| Tax | (0) | (7) | (30) | (3) | 42 |
| Profit for the period | (11) | 21 | 69 | 5 | (275) |
| Financial assets through profit or loss [NOKm] | Currency | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|---|
| Shares | NOK | 193 | 878 | 37 | 1 108 |
| Bonds and other fixed income securities | NOK | 0 | 8 847 | 0 | 8 847 |
| Cash and cash equivalents | NOK | 1 044 | 1 044 | ||
| Derivates: | |||||
| Foreign currency contracts | NOK | 16 | 16 | ||
| Options | NOK | 4 | 4 | ||
| Total assets 30.06.2019 | NOK | 1 237 | 9 745 | 37 | 11 019 |
| Total assets 30.06.2018 | NOK | 691 | 9 780 | 10 472 | |
| Financial liabilities at fair value through profit or loss [NOKm] Currency | Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|---|
| Foreign exchange contracts | NOK | -22 | -22 | ||
| Other financial liabilities | NOK | -101 | -101 | ||
| Total financial liabilities 30.06.2019 | NOK | -101 | -22 | -124 | |
| Total financial liabilities 30.06.2018 | NOK | - 5 | - 5 |
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 recognised 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 20 million 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
If one or more of the key parameters in a valuation model is not based on observable market data,
| (NOKm) | 30.06.2019 | 30.06.2018 | 31.12.2018 |
|---|---|---|---|
| Total solvency capital requirement | 1 741 | 1 885 | 1 659 |
| Total eligible own funds to meet SCR | 2 856 | 3 704 | 2 910 |
| Ratio of eligible own funds to SCR | 164 % | 196 % | 175 % |
| Totalt minimum capital requirement | 784 | 848 | 747 |
| Ratio of eligible own funds to MCR | 273 % | 346 % | 299 % |
| [NOKm] | Q2 2019 | Q1 2019 | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2017 Q3 2017 | Q2 2017 | |
|---|---|---|---|---|---|---|---|---|---|
| Gross premiums written | 1 105,9 | 2 713,4 | 475,1 | 624,3 | 838,3 | 2 348,4 | 424,5 | 486,1 | 739,0 |
| Gross premiums earned | 1 241,9 | 1 146,9 | 1 123,2 | 1 042,4 | 1 015,7 | 958,3 | 881,7 | 863,3 | 775,8 |
| Gross claims incurred | (1 150,0) | (1 071,7) | (1 161,7) | (937,1) | (889,3) | (871,2) | (799,6) | (943,2) | (1 167,9) |
| Earned premiums, net of reinsurance | 1 011,9 | 890,6 | 759,0 | 689,7 | 699,8 | 669,4 | 604,1 | 606,5 | 606,3 |
| Other insurance related income | 3,2 | 3,1 | 12,0 | 9,5 | 2,9 | 1,2 | 0,8 | 2,3 | 0,8 |
| Claims incurred, net of reinsurance | (999,8) | (884,4) | (739,3) | (613,2) | (670,5) | (635,3) | (575,9) | (498,9) | (581,6) |
| Sales cost | (65,6) | (48,9) | (49,4) | (55,4) | (49,3) | (51,6) | (45,0) | (35,1) | (41,6) |
| Administration cost | (42,9) | (38,0) | (46,1) | (28,9) | (35,0) | (33,2) | (21,5) | (29,7) | (30,6) |
| Commission from reinsurer | 23,1 | 28,0 | 31,1 | 37,7 | 61,0 | 99,4 | 22,7 | 21,8 | 58,3 |
| Other insurance related expenses | (1,9) | (5,2) | (2,1) | (10,8) | (6,0) | (1,3) | (1,3) | (1,7) | (1,6) |
| Technical result | (72,0) | (54,7) | (34,8) | 28,6 | 2,8 | 48,5 | (16,2) | 65,3 | 10,1 |
| Other income/costs | (13,2) | (14,0) | (12,3) | (12,5) | (12,6) | (12,0) | (12,0) | (13,7) | (13,6) |
| Net financial income | (31,7) | 81,2 | (141,9) | 35,5 | 78,7 | 8,0 | 124,9 | 100,0 | 101,2 |
| Profit before tax | (116,9) | 12,5 | (189,1) | 51,7 | 68,9 | 44,6 | 96,7 | 151,6 | 97,7 |
| Claims ratio, net of ceded business (1) |
98,8 % | 99,3 % | 97,4 % | 88,9 % | 95,8 % | 94,9 % | 95,3 % | 82,3 % | 95,9 % |
| Expense ratio, net of ceded business (2) |
8,4 % | 6,6 % | 8,5 % | 6,7 % | 3,3 % | -2,2 % | 7,3 % | 7,1 % | 2,3 % |
| Combined ratio, net of ceded business (3) |
107,2 % | 105,9 % | 105,9 % | 95,7 % | 99,2 % | 92,7 % | 102,6 % | 89,3 % | 98,2 % |
| Gross claims ratio (4) |
92,6 % | 93,4 % | 103,4 % | 89,9 % | 87,5 % | 90,9 % | 90,7 % | 109,3 % | 150,5 % |
| Gross expense ratio (5) |
8,7 % | 7,6 % | 8,5 % | 8,1 % | 8,3 % | 8,8 % | 7,5 % | 7,5 % | 9,3 % |
| Gross combined ratio (6) |
101,3 % | 101,0 % | 111,9 % | 98,0 % | 95,8 % | 99,8 % | 98,2 % | 116,8 % | 159,8 % |
(1) Claims incurred, net of reinsurance in % of earned premiums, net of reinsurance
(2) Operating expenses in % of earned premiums, net of reinsurance
(3) Net claims ratio + net expense ratio
(4) Gross claims incurred in % of gross premiums earned
(5) Sales and administration costs in % of gross premiums earned
(6) Gross claims ratio + gross expense ratio
We confirm, to the best of our knowledge, that the condensed set of financial statements for the period 1 January to 30 June 2019 has been prepared in accordance with Norwegian Accounting Act, financial statement regulations for insurance companies, IAS 34 – Interim Financial Reporting and generally accepted accounting principles, and gives a true and fair view of the Company's assets, liabilities, financial position and profit and loss as a whole.
We also confirm, to the best of our knowledge, that the interim management report includes a fair review of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements, a description of the principal risks and uncertainties for the remaining six months of the financial year, and major related parties transactions.
Oslo, 11th July 2019
The Board of Directors of Protector Forsikring ASA
| Jostein Sørvoll (Chair) |
Anders J. Lenborg (Deputy Chair) |
Adele Bugge Norman Pran | Else Bugge Fougner |
|---|---|---|---|
| Jørgen Stenshagen | Randi Helene Røed | Line Engelmann-Kokkim | Mathews V. Ambalathil |
Sverre Bjerkeli (CEO)
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.