Protector Forsikring

Earnings Release • Jul 10, 2019

Weak Q2 result

Weak Q2 result

With reference to the stock exchange announcement dated Friday 5 July. The Arbitration loss regarding the Grenfell Tower claim is booked as communicated in Q2 with approximately MNOK 75. In Q2, the technical result will be weak even without the Arbitration loss. The reason is that the price and profitability measures implemented have come too late and are not sufficient. Expected claims ratio for own account in Q2 is approx. 92% (excluding the Arbitration loss). Price and profitability measures going forward will be further strengthened in the Nordic region.

In Q1, the Combined Ratio for own account was 105.9% and in Q2, the CR for own account excluding the Arbitration loss will be approx. 100%. The combined ratio guiding for the full year 2019 will be increased and communicated when releasing the Q2 results.

The investment result in Q2 is also weak due to weak equity returns. In Q2, the return on the equity portfolio was approx. -10%.

When it comes to change of ownership insurance (COI), the reserve development is stable, the technical result is positive and the Supreme Court has rejected the appeal related to the Grey Silverfish case. Protector has entered into a 50% quota share agreement (reinsurance) for the entire COI portfolio with an European player. The quota share agreement includes the historical portfolio as well as all new business written until the policy writing cease. The agreement confirms Protector's COI reserves per Q1 2019 with no earnings impact as of Q1.

Based on the preliminary accounting figures, we expect in Q2 a combined ratio for own account of approx. 107% (including the loss in the Grenfell Tower case) and a negative investment result of approx. NOK -69 million. The loss before tax (incl. COI) will be approx. NOK - 128 mill.

Further information will be given on July 12th in connection with the presentation of the Q2 results.

Oslo, 10th July 2019

Protector Forsikring ASA

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