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Solid Försäkringsaktiebolag

Quarterly Report Feb 8, 2023

3199_10-k_2023-02-08_7f1dc9a8-5e2a-4ebe-8e6b-b21ef5a7f60e.pdf

Quarterly Report

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Year-end Report for 2022 financial year

Highest quarterly results in the history of Solid Försäkring

October–December 2022*

  • Gross written premiums increased 2 per cent to KSEK 285,803 (281,012)
  • Premiums earned, net of reinsurance, increased 7 per cent to KSEK 277,221 (258,486)
  • Technical result increased 62 per cent to KSEK 44,923 (27,731) Technical result excluding non-recurring costs of KSEK 8,500 related to the separate listing process in 2021 increased 24 per cent.
  • The combined ratio improved to 86.1 per cent (91.0, excl. non-recurring costs 87.7)
  • Result of asset management rose to KSEK 20,652 (6,722)
  • Profit after tax increased 95 per cent to KSEK 49,460 (25,329)
  • Basic and diluted earnings per share increased to SEK 2.49 per share (1.27)

January–December 2022*

  • Gross written premiums increased 14 per cent to KSEK 1,151,921 (1,013,421)
  • Premiums earned, net of reinsurance, increased 12 per cent to KSEK 1,099,709 (981,291)
  • Technical result increased 43 per cent to KSEK 163,100 (114,236) Excluding non-recurring costs of
  • KSEK 10,400 related to the separate listing process in 2021, technical result increased 31 per cent
  • The combined ratio improved to 86.7 per cent (89.3, excl. non-recurring costs 88.2)
  • Result of asset management amounted to KSEK -11,514 (41,888) and total return was -0.6 per cent (3.6)
  • Profit after tax amounted to KSEK 110,656 (119,980)
  • Basic and diluted earnings per share declined to SEK 5.54 per share (6.0)
  • The Board proposes that the 2023 Annual General Meeting resolve on a dividend of SEK 2.85 per share.

Significant events during and after the end of the period

  • On 26 October, Solid Försäkring initiated a repurchase programme of own shares to create additional value for shareholders. 54.3 per cent of the decided mandate remains.
  • On 8 November, Solid Försäkring announced it had signed an agreement with Collector Bank to provide payment protection insurance in Sweden and Norway.
  • On 2 December, Solid Försäkring announced it had signed an agreement to acquire Car Protect AS as a purchase of assets and liabilities.

* Some performance measures stated in this section have not been prepared in accordance with IFRS or the Solvency II regulations, which means that they are "alternative performance measures". The calculations and reconciliation against information in the financial statements of these performance measures are presented on the website under "Financial statements". Definitions of performance measures are presented on the company's website. Changes and comparative figures on this page and elsewhere in this interim report refer to the same period last year. All amounts are presented in KSEK unless otherwise stated.

About Solid Försäkring

Solid Försäkring is a non-life insurance company focusing on niche insurance, with the Nordic region as its core market. The operations in Norway, Finland and Switzerland are conducted by branches, and operations in other countries are conducted as cross-border operations. The non-life insurance operations are divided into three segments: Product, Personal Safety and Assistance. The company partners with leading retail chains in various industries and the banking sector, has about 2.3 million customers across the Nordic region and has its head office in Helsingborg. Net premiums earned in 2022 amounted to SEK 1,150 million and the technical result to SEK 163 million.

Comments from the CEO

Highest quarterly results in the history of Solid Försäkring

In the fourth quarter, Solid Försäkring reported its highest results in the company's history despite a weaker consumer market. The improvement was due to the strong performance of the insurance operations and to the positive trend in the nontechnical account.

Our business model has proven itself to stand strong in economic slowdowns in the past, but we are dependent on the sales levels of our partners. During the quarter, we saw certain signs of lower sales, mainly in durable consumer goods, and we are respectfully aware of the prevailing uncertain market climate.

We work continuously on various measures to increase sales of our insurance policies among our partners and focus intently on signing new partnership agreements, thereby expanding our partner base. From this perspective, it is gratifying that we signed a new agreement with Collector Bank during the quarter, which specialises in financing solutions for private individuals and companies. Collector Bank will offer its retail customers Solid Försäkring's payment protection insurance and the partnership is scheduled to launch in early 2024.

During the period, we also signed an agreement to acquire Car Protect AS as a purchase of assets and liabilities. Car Protect is a Norwegian insurance intermediary of car warranties with many years of experience in the Norwegian automotive market. Solid Försäkring took over the operations on 1 January 2023. We are not anticipating that the operations will have any impact on earnings in 2023, but expect to see positive effects in 2024.

Financial performance

Premiums earned for the fourth quarter increased 7 per cent compared with the year-earlier period to SEK 277 million, primarily driven by the Personal Safety and Assistance segments. Growth in the Personal Safety segment was mainly driven by the Swedish market, and growth in Assistance was mainly related to the travel industry.

All segments contributed to our improved technical result, which increased 24 per cent* during the quarter to SEK 44.9 million (36.3*). Asset management reported very strong earnings, which contributed to the increase in total earnings. The technical result for the full-year increased 31 per cent* to SEK 163.1 million (124.6*), which is the highest result in the company's history.

The combined ratio for the fourth quarter improved to 86.1 per cent (87.7*) As of the last day of December, the combined ratio amounted to 86.7 per cent (88.2*). The stable combined ratio was driven by good cost control in the company as well as stable and profitable underlying transactions.

Earnings in the non-technical account amounted to SEK 20.7 million for the fourth quarter (6.7), which is a significant improvement over earlier quarters in 2022. Earnings for the non-technical account were primarily driven during the period by higher market valuations in the equities portfolio and interest income from deposits and the bond portfolio.

Overall, profit before tax for the quarter improved 54 per cent* year-on-year to SEK 60.6 million (39.4*), which is the best quarterly result in Solid Försäkring's history.

*Costs for the listing process amounted to SEK 8.5 million in the fourth quarter of 2021 and to SEK 10.4 million YTD, which are adjusted in the comparative figures for the previous year.

Repurchase programme

On 26 October, Solid Försäkring initiated a repurchase programme of own shares to create additional value for shareholders. At the end of the fourth quarter, 457,402 shares had been acquired for a value of SEK 26,811,024, which corresponds to 2.3 per cent of the total number of shares and 45.7 per cent of the mandate as resolved by the Extraordinary General Meeting on 29 September. The repurchase programme will continue for the period remaining until the Annual General Meeting is held.

New partnerships

Acquisitions

Dividends

The Board of Solid Försäkring proposes that the Annual General Meeting resolve on a dividend of SEK 2.85 per share, which is in line with the dividend target communicated in connection with the separate listing. The assessment is that the level is balanced and provides scope for continuing to pursue the repurchase programme in 2023, given the approval of the Annual General Meeting, and also scope for evaluating potential acquisition opportunities.

Stability

At the end of the fourth quarter, the SCR ratio amounted to 179 per cent, corresponding to an increase of 6 percentage points compared with the end of 2021.

The overall assessment is that we are financially well-prepared for the uncertain period that we will all face in 2023. At the same time, we see significant business opportunities moving forward and we are continuing our long-term efforts to further refine our existing partnerships and initiate new ones.

Marcus Tillberg, CEO Solid Försäkring

The company's earnings

Fourth quarter 2022, October–December

Gross written premiums increased KSEK 4,791 to KSEK 285,803 (281,012) for the period. The increase was primarily driven by the trend in the Assistance segment for which sales of insurance related to the travel industry increased 42 per cent year-onyear, and also partly due to sales in the Personal Safety segment, mainly in the Swedish market. Premium income in the Product segment declined 4 per cent during the period compared with last year, which was mainly due to lower sales of insurance in consumer electronics and the bicycle industry in the Swedish market.

Premiums earned, net of reinsurance, increased KSEK 18,735, or 7 per cent, to KSEK 277,221 (258,486). Growth was mainly driven by the performance of travel insurance in the Assistance segment, for which the increase was 16 per cent. Premiums earned in the Personal Safety segment increased 6 per cent, mainly driven by payment protection insurance in the Swedish market. Premiums earned in the Product segment increased 1 per cent, primarily driven by growth in the consumer electronics industry in Denmark.

The technical result increased KSEK 17,192, or 62 per cent, to KSEK 44,923. Adjusted for non-recurring costs of SEK 8.5 million for the listing process in 2021, the increase was 24 per cent. The share of the investment return transferred to the insurance operations was adjusted for the previous financial year on an annual basis in December, but is now carried out quarterly, which had a positive effect of SEK 2.0 million during the quarter, and was due to the cost of capital continuing to rise as a result of higher market interest rates in the period.

The claims ratio margin improved year-on-year to 22.7 per cent (21.6), mainly driven by higher claim costs in the Assistance segment and insurance related to roadside assistance and car warranties.

Operating expenses declined 2 per cent to KSEK 175,881 (179,390). Adjusted for non-recurring costs of KSEK 8,500 in 2021, operating expenses increased 3 per cent. The increase was mainly due to higher acquisition costs primarily driven by higher sales, but also to a changed product and partner mix in the Assistance and Product segments. Administrative expenses as a percentage of premiums earned amounted to 9.2 per cent for the quarter, which is lower than last year when the percentage was 10.1 per cent, adjusted for non-recurring costs.

The combined ratio improved to 86.1 per cent (87.7 adjusted for non-recurring costs) due to the growth in premiums earned and good cost control.

The result of asset management for the fourth quarter amounted to KSEK 20,652 (6,722), corresponding to a portfolio return of 5.8 per cent (2.1). Interest income for the quarter increased KSEK 6,091 and the unrealised changes in the value of the investment portfolio amounted to KSEK 11,659 (2,766). Refer to Note 6 for more detailed information.

Profit after tax increased KSEK 24,131 to KSEK 49,460 (25,329).

Performance per quarter (SEK million)

Fourth quarter 2022

+2% Gross written premiums

+7% Premiums earned, net of reinsurance

+62% Technical result

+24% Technical result excl. non-recurring costs, 2021

86.1% Combined ratio

Full-year 2022, January–December

Gross written premiums increased KSEK 138,500 to KSEK 1,151,921 (1,013,421) for the period. All segments contributed to the increase but were primarily driven by the sharp increase in sales related to the travel industry in the Assistance segment. The increase in the Assistance segment amounted to 37 per cent year-on-year. In the Personal Safety segment, the increase was 5 per cent and was mainly attributable to payment protection insurance in the Norwegian and Swedish markets. In the Product segment, the increase was 4 per cent, and was primarily driven by the consumer electronics industry in Denmark where the company has expanded its market share during the year through its partnership with Power that was launched in the latter part of 2021.

Premiums earned, net of reinsurance, increased KSEK 118,418, corresponding to 12 per cent, to KSEK 1,099,709 (981,291). All segments contributed to growth, although it was mainly driven by the very strong performance in the Assistance segment for which the increase was 35 per cent. In the Product segment, premiums earned increased to 6 per cent and in the Personal Safety segment the increase amounted to 2 per cent.

The technical result increased KSEK 48,864, corresponding to 43 per cent, to KSEK 163,100 (114,236). Adjusted for non-recurring costs of SEK 10.4 million for the listing process in 2021, the increase was 31 per cent. The portion of the investment return transferred to the insurance operations resulted in a positive effect of KSEK 7,848 compared with last year, which was primarily due to the increased cost of capital as a result of higher market interest rates.

The claims ratio margin in all segments improved year-on-year to 21.9 per cent (23.5). Operating expenses increased 11 per cent to KSEK 712,799 (644,934), which were mainly due to higher acquisition costs. Adjusted for non-recurring costs, the increase was 12 per cent. Administrative expenses as a percentage of premiums earned amounted to 9.4 per cent for the full-year, which is lower than last year when the percentage was 10.2 per cent, adjusted for non-recurring costs.

The combined ratio improved to 86.7 per cent (88.2 adjusted for non-recurring costs), driven by stable and profitable underlying business, growth in premiums earned and good cost control.

2022 was dominated by a turbulent world, particularly due to Russia's invasion of Ukraine on 24 February. The capital markets were negatively affected during the year, which resulted in reduced market values for the company's investment assets during the first three quarters of the year. The result of asset management for the full-year amounted to KSEK -11,514 (41,888) and total return to -0.6 per cent (3.6). The negative result comprised unrealised changes in the value of investment assets, which amounted to KSEK -38,459 (19,008) for the full-year, of which KSEK -14,237 was related to the equities portfolio and KSEK -24,222 was related to the bond portfolio. Refer to Note 6 for more detailed information. Interest income for the year increased KSEK 6,904 mainly due to higher market interest rates. The total value of the investment portfolio on 31 December amounted to KSEK 1,434,013, of which 6 per cent, or KSEK 91,318, consisted of shares and KSEK 738,831 consisted of other interest-bearing assets, mainly bonds at floating interest rates. The company's strategy is to hold bonds until maturity. Cash and cash equivalents in the portfolio amounted to KSEK 603,864, of which a corresponding KSEK 304,996 during the year was tied at a fixed interest rate with a 12 and a 3-month term. Net investments for the full-year amounted to KSEK 175,287, of which KSEK 154,810 refer to the bond portfolio and KSEK 20,477 to the equities portfolio.

Profit after tax declined KSEK 9,324 to KSEK 110,656 (119,980).

Full-year 2022

+ 14% Gross written premiums

+12% Premiums earned, net of reinsurance

+43% Technical result

+31%

Technical result excl. non-recurring costs, 2021

86.7%

Combined ratio

Financial position, equity and cash flow, 31 December 2022

Equity (2) on 31 December amounted to KSEK 802,416 (714,979) and Net Asset Value (2) to KSEK 785,422 (692,434). For the full-year 2022, annualised RoE (2)* amounted to 14.6 per cent (18.4) and annualised RoNAV (2)** to 15.6 per cent (20.3).

The SCR ratio amounted to 179 per cent on 31 December, corresponding to an increase of 6 percentage points compared with the end of December 2021 (173). The company has a stable Solvency II position, and company management and the Board do not believe that this stability or the capital situation will be jeopardised in the future. However, the company is closely following external developments and any impact from the ongoing war in Ukraine, rising inflation, higher interest rates and increased energy prices to quickly identify any changes in consumer behaviour that could impact the company's insurance business and thus profitability and earnings.

Cash flow*** from operating activities amounted to KSEK 184,861 (163,056). Cash flow from investing activities amounted to KSEK -173,964 (173,275). During the year, investment assets were acquired for KSEK 356,262 and the value of divested and mature investment assets amounted to KSEK 182,084. The subordinated loan of KSEK 200,000 to Resurs Bank fell due for payment in April 2021. The repurchase programme commenced in October and as of 31 December the company had acquired 457,402 shares for a value of KSEK 26,811. Cash flow from financing activities amounted to KSEK -26,755 (-59,000). Cash and cash equivalents amounted to KSEK 603,864 (613,139).

* RoE (2) – annualised aggregated result of the period in relation to the average adjusted equity (2). The average of the balance sheet items is calculated based on opening and closing values. **RoNAV (2) – annualised aggregated result after tax for the period in relation to the average adjusted equity excluding intangible assets (2). The average of the balance sheet items is calculated based on opening and closing values.

***Comparative figures for cash flow refer to 31 December 2021.

15.6% RoNAV (2)

179% SCR ratio

Performance measures

KSEK, unless otherwise stated Oct-Dec Oct–Dec Change Jan-Dec Jan–Dec Change
2022 2021 2022 2021
Gross written premiums 285,803 281,012 2% 1,151,921 1,013,421 14%
Premiums earned, net of reinsurance 277,221 258,486 7% 1,099,709 981,291 12%
Technical result 44,923 27,731 62% 163,100 114,236 43%
Result of asset management 20,652 6,722 207% -11,514 41,888 -127%
Profit after tax 49,460 25,329 95% 110,656 119,980 -8%
Earnings per share, SEK 2.49 1.27 97% 5.54 6.00 -8%
Claims ratio 22.7% 21.6% 21.9% 23.5%
Expense ratio 63.4% 69.4% 64.8% 65.7%
Combined ratio 86.1% 91.0% 86.7% 89.3%
KSEK , unless otherwise stated
KSEK, unless otherwise stated 31 Dec 31 Dec
2022 2021
Investment assets measured at fair value 830,149 682,621
Investment assets including cash and cash equivalents 1,434,013 1,295,760
Direct yield, from beginning of year, % 1.8% 1.4%
Total return, from beginning of year, % -0.6% 3.6%
Technical provisions, net of reinsurance 656,723 612,089
Net asset value 899,594 815,531
Equity 411,476 327,413
Equity (2)* 799,042 714,979
Net Asset Value, NAV (2)* 782,048 692,434
Return on equity (2), RoE (2) %* 14.6% 18.4%
Return on equity excl. intangible assets, RoNAV (2) %* 15.6% 20.3%
Eligible capital base to meet solvency capital requirement 885,067 797,379
Eligible capital base to meet minimum capital requirement 880,970 792,259
Solvency Capital Requirement (SCR) 494,422 461,754
Minimum Capital Requirement (MCR) 147,600 130,604
SCR ratio 179% 173%
MCR ratio 597% 607%
Solvency ratio, % 79.7% 82.7%
Number of employees at end of period* 70 68
Average number of FTEs* 69 66

* Alternative performance measures are performance measures that company management and analysts uses to assess the company's development and are not defined by International Financial Reporting Standards (IFRS) or the Solvency II regulations. Company management believes that the performance measures make it easier for investors to analyse the company's performance. The calculations and reconciliation against information in the financial statements of these performance measures are presented on the website under "Financial statements". Definitions of performance measures are presented on the website under "Financial data".

Personal Safety

Fourth quarter 2022, October–December

During the quarter, Solid Försäkring signed an agreement with a new partner, Collector Bank, which specialises in financing solutions for private individuals and companies. Collector Bank will offer its retail customers the company's tailored and modern payment protection insurance in Sweden and Norway. The launch of the partnership is scheduled for early 2024.

Sales (gross written premiums) for the segment rose 2 per cent compared with the year-earlier period. The increase was mainly due to sales of payment protection insurance in Sweden.

Premiums earned, net of reinsurance, increased to KSEK 97,297 (91,884), mainly driven by payment protection insurance in the Swedish market.

Costs for claims incurred, net of reinsurance, increased to KSEK 9,325 (8,392) and the claims ratio increased year-on-year.

Gross profit increased KSEK 1,424 to KSEK 26,058 (24,634). The gross margin was in line with the preceding year at 26.8 per cent.

Full-year 2022, January–December

Sales (gross written premiums) for the segment rose 5 per cent compared with the year-earlier period. This increase was primarily driven by the performance of the Norwegian and Swedish markets, for which sales of payment protection insurance increased 8 per cent compared with last year.

Premiums earned, net of reinsurance, increased 2 per cent to KSEK 381,037 (374,391).

Costs for claims incurred, net of reinsurance, declined KSEK 6,739 to KSEK 32,300 (39,039). The claims ratio improved and returned to pre-pandemic levels.

Gross profit increased KSEK 5,794 to KSEK 104,731 (98,937). The gross margin improved to 27.5 per cent (26.4), mainly due to the improved claims ratio.

Share of premiums earned, net of reinsurance, full-year 2022

Fourth quarter 2022

+2% Gross written premiums

+6%

Premiums earned, net of reinsurance

+6% Gross profit

26.8%

Gross margin

Performance per quarter (SEK million)

Performance measures – Personal Safety

KSEK Oct–Dec
2022
Oct–Dec
2021
Change Jan–Dec
2022
Jan–Dec
2021
Change
Gross written premiums 96,124 94,001 2% 389,753 369,547 5%
Premiums earned, net of reinsurance 97,297 91,884 6% 381,037 374,391 2%
Claims incurred, net of reinsurance -9,325 -8,392 11% -32,300 -39,039 -17%
Acquisition costs* -61,914 -58,858 5% -244,006 -236,415 3%
Gross profit** 26,058 24,634 6% 104,731 98,937 6%
Gross margin*** 26.8% 26.8% +0.0 p.p. 27.5% 26.4% +1.1 p.p.

* Acquisition costs include brokerage commission and costs for direct sales

** Gross profit = premiums earned, net of reinsurance minus claims incurred net of reinsurance minus acquisition costs

*** Gross margin = gross profit as a percentage of premiums earned, net of reinsurance

Product

Fourth quarter 2022, October–December

Sales (gross written premiums) in the segment declined 4 per cent compared with the year-earlier period, which was mainly due to lower sales of insurance related to the consumer electronics and bicycle industry in Sweden. The sale volume in the consumer electronics industry in Norway is in line with the preceding year, while sales increased in Denmark and Finland.

Premiums earned, net of reinsurance, increased KSEK 910 to KSEK 92,089 (91,179). The increase was primarily driven by growth in the consumer electronics industry in Denmark.

Costs for claims incurred, net of reinsurance, fell 1 per cent to KSEK 25,617 (25,758) but the claims ratio improved in the segment during the period. Acquisition costs increased 1 per cent year-on-year to KSEK 48,073 (47,617), due to a changed product and partner mix in the segment and an improved claims ratio.

Gross profit increased 3 per cent to KSEK 18,399 (17,804). The gross margin improved to 20.0 per cent (19.5) due to an improved claims ratio.

Full-year 2022, January–December

Gross written premiums for the segment rose 4 per cent compared with last year, mainly driven by the performance of the consumer electronics industry in Denmark, where the company increased its market share during the year through its partnership with Power that was launched in late 2021. Insurance sales in the eyewear industry also performed well during the year. However, insurance sales in the Swedish consumer electronics market and insurance solutions related to the Swedish bicycle industry declined compared with last year.

Premiums earned, net of reinsurance, increased KSEK 19,834 to KSEK 366,411 (346,577). This increase was primarily attributable to insurance for consumer electronics in the Danish market and for the eyewear industry.

Costs for claims incurred, net of reinsurance, increased 1 per cent to KSEK 104,169 (103,545). The claims ratio for the segment improved during the year. Acquisition costs increased to KSEK 195,464 (179,709), due to sales growth, a changed product and partner mix in the segment and the trend in the claims ratio.

Gross profit increased KSEK 3,455 to KSEK 66,778 (63,323). The gross margin was 18.2 per cent (18.3).

Share of premiums earned, net of reinsurance, full-year 2022

Fourth quarter 2022

-4% Gross written premiums +1% Premiums earned, net of reinsurance +3% Gross profit

20.0%

Gross margin

Performance per quarter (SEK million)

Performance measures – Product

KSEK Oct–Dec
2022
Oct–Dec
2021
Change Jan-Dec
2022
Jan-Dec
2021
Change
Gross written premiums 101,011 105,421 -4% 375,701 361,090 4%
Premiums earned, net of reinsurance 92,089 91,179 1% 366,411 346,577 6%
Claims incurred, net of reinsurance -25,617 -25,758 -1% -104,169 -103,545 1%
Acquisition costs* -48,073 -47,617 1% -195,464 -179,709 9%
Gross profit** 18,399 17,804 3% 66,778 63,323 5%
Gross margin*** 20.0% 19.5% +0.5 p.p. 18.2% 18.3% -0.1 p.p.

* Acquisition costs include brokerage commission and costs for direct sales

** Gross profit = premiums earned, net of reinsurance minus claims incurred net of reinsurance minus acquisition costs

*** Gross margin = gross profit as a percentage of premiums earned, net of reinsurance

Assistance (Roadside assistance/Car warranty and travel)

Fourth quarter 2022, October–December

The segment posted sales growth in the fourth quarter, driven by the performance in insurance solutions for the travel industry, which increased 42 per cent year-on-year. However, sales volumes of insurance policies linked to car warranties declined in the quarter compared with last year. The used-car market continued to slow down and there are fewer used cars being sold in Sweden.

Gross written premiums rose KSEK 7,078 during the period to KSEK 88,668 (81,590). Premiums earned, net of reinsurance increased KSEK 12,412 to KSEK 87,835 (75,423). The increase in both gross written premiums and in premiums earned, net of reinsurance, was primarily attributable to the company's travel insurance products.

Costs for claims incurred, net of reinsurance, increased to KSEK 27,868 (21,615). The claims ratio improved during the period compared with last year, primarily due to higher claim costs related to insurance policies for roadside assistance and car warranties. Acquisition costs increased to KSEK 40,494 (38,426), due to sales growth and a changed product and partner mix in the segment. The ratio in relation to premiums earned improved year-on-year.

Gross profit increased KSEK 4,091 to KSEK 19,473 (15,382) and the gross margin improved to 22.2 per cent (20.4) mainly due to growth in premiums earned and relatively low acquisition costs.

Full-year 2022, January–December

Gross written premiums increased KSEK 103,683 to KSEK 386,467 (282,784), primarily driven by the sharp increase in sales related to insurance solutions for the travel industry for which the increase was 118 per cent compared with the preceding year. Premiums earned, net of reinsurance, increased KSEK 91,938 to KSEK 352,261 (260,323). The increase in premiums earned, net of reinsurance, was primarily attributable to the company's travel insurance products but also to insurance related to car warranties for which growth was 7 per cent.

Gross profit increased KSEK 25,222 to KSEK 78,548 (53,326) mainly as a result of growth in premiums earned and relatively low claim costs. The gross margin improved to 22.3 per cent (20.5), primarily due to the claims ratio trend.

Share of premiums earned, net of reinsurance, full-year 2022

Fourth quarter 2022

+9% Gross written premiums

+16%

Premiums earned, net of reinsurance +27%

Gross profit

22.2%

Gross margin

Performance per quarter (SEK million)

Performance measures – Assistance

KSEK Oct–Dec
2022
Oct–Dec
2021
Cha
nge
Jan–Dec
2022
Jan–Dec
2021
Cha
nge
Gross written premiums 88,668 81,590 9% 386,467 282,784 37%
Premiums earned, net of reinsurance 87,835 75,423 16% 352,261 260,323 35%
Claims incurred, net of reinsurance -27,868 -21,615 29% -104,089 -88,437 18%
Acquisition costs* -40,494 -38,426 5% -169,624 -118,560 43%
Gross profit** 19,473 15,382 27% 78,548 53,326 47%
Gross margin*** 22.2% 20.4% +1.8 p.p. 22.3% 20.5% +1.8 p.p.

* Acquisition costs include brokerage commission and costs for direct sales

** Gross profit = premiums earned, net of reinsurance minus claims incurred net of reinsurance minus acquisition costs

*** Gross margin = gross profit as a percentage of premiums earned, net of reinsurance

Significant events

Full-year 2022, January–December

The year was dominated by a turbulent world with rising inflation, interest-rate hikes, higher energy prices and Russia's ongoing invasion of Ukraine. The volatility and turbulence in the financial markets impacted Solid Försäkring's investment portfolio during the year and both the equities and bond portfolios noted lower market values. The company is continuing to closely monitor developments in the external environment and any impact to identify any signs of potential changes in consumer behaviour that could affect the company's insurance operations.

The Extraordinary General Meeting held on 29 September resolved, in accordance with the Board's proposal, to authorise the Board to acquire the company's own shares on one more occasions up until the next Annual General Meeting. The repurchase programme commenced on 26 October.

The acquisition of own shares may occur of at most as many shares as are needed so that the company's holdings of own shares at any given time do not exceed five per cent of all shares in the company. The purpose of the authorisation to acquire own shares is to create a tool for the Board to continuously during the year adapt and improve the company's capital structure and thereby create additional value for shareholders. The intention is for the repurchased shares to later be cancelled by resolutions of upcoming Annual General Meetings.

On 8 November, Solid Försäkring announced it had signed an agreement with Collector Bank to provide payment protection insurance in Sweden and Norway. Collector Bank will offer its retail customers Solid Försäkring's payment protection insurance and the partnership is scheduled to launch in late 2023.

On 2 December, Solid Försäkring announced it had signed an agreement to acquire Car Protect AS as a purchase of assets and liabilities. Car Protect is a Norwegian insurance intermediary of car warranties with many years of experience in the Norwegian automotive market. Solid Försäkring will take over the operations on 1 January 2023.

Except for the above, no other significant events occurred during the period in question.

Events after the end of the period

No significant events took place after the end of the period.

Additional information

Risk management

The company's ability to manage risks impacts the company's financial position and ability to achieve set targets. Various types of risks arise in the operations, such as insurance risk, market risk, counterparty risk, operational risks and other risks. The Board has adopted policies for the operations in order to balance the company's risk-taking and restrict and control risks. All policies are updated as necessary and revised at least once a year. The Board and CEO are ultimately responsible for risk management. The company's risk management is described is more detail in the most recent annual report under the section Information about risks and uncertainties and in Note 2 Risk disclosures.

In general, no changes of material importance to risk management took place during the period, and the company does not believe that there is any risk that would jeopardise the company's stability or capital situation in the future.

Information about the operations

Solid Försäkringsaktiebolag's (publ), Corp. ID. No. 516401-8482, has been listed on Nasdaq Stockholm (Small Cap) since 1 December 2021. The head office is located in Helsingborg, Sweden.

The focus of the operations is on niche insurance, with the Nordic region as its main market. The non-life insurance operations are divided into three segments: Product, Personal Safety and Assistance. The operations in Norway, Finland and Switzerland are conducted by branches, and operations in other countries are conducted as cross-border operations. Solid Försäkring partners with leading retail chains in various industries and the banking sector, and has about 2.3 million customers across the Nordic region.

Employees

The number of employees, regardless of degree of employment, was 70 on 31 December, an increase of two people compared with the end of December 2021.

Information about the Solid share

Solid Försäkringsaktiebolag's (Solid) share was listed on Nasdaq Stockholm (Small Cap) under the ticker SFAB and its ISIN is SE0017082548.

On the listing date of 1 December 2021 (the first trading day), the share was first traded at SEK 55.00 and closed at SEK 60.16. The share price on the final trading day on 31 December 2022 was SEK 65.85. A total of 2,583,420 shares were traded during the period, corresponding to a turnover rate of 12.92 per cent during the measurement period of 1 October–31 December 2022.

The largest directly registered shareholders on 31
December 2022
Percenta
ges of
share
capital
Waldakt AB 28.9%
Investment AB Spiltan 8.1%
Avanza Pension 4.9%
Swedbank Robur Fonder 4.2%
Nordnet Pensionsförsäkring 3.0%
Protector Forsikring ASA 2.9%
Solid Försäkringsaktiebolag 2.3%
Swedbank Försäkring 2.3%
Traction 2.0%
Catea Group AB 1.7%
60.4%

Financial calendar

21 March 2023 2022 Annual Report
26 April 2023 Interim report January–March 2023 (Q1)
21 July 2023 Interim report January–June 2023 (Q2)
26 October 2023 Interim report January–September 2023 (Q3)

Financial targets and dividend policy

Solid Försäkring has the following medium-term financial targets:

  • Annual growth in premiums earned of 4–7 per cent.
  • In addition, the company intends to grow through selective acquisitions. • Maintain a combined ratio below 90 per cent.
  • Achieve a return on RoNAV (2) of more than 14 per cent.
  • Maintain an SCR ratio of at least 150 per cent.

Dividend policy

According to the Board's dividend policy, the company intends to pay an annual dividend corresponding to at least 50 per cent of net profit for the year from and including the 2022 financial year. The dividend policy is conditional on the target for the SCR ratio and that no potential major acquisitions are carried out.

70

Number of employees

21 March 2023 Next report

The Board's assurance

The Board of Directors and the CEO certify that this year-end report provides a fair review of the company's operations, financial position and results and describes the significant risks and uncertainties faced by the company.

Helsingborg, 6 February 2023

Marcus Tillberg, CEO

The Board of Directors

Lars Nordstrand, Chairman

Marita Odélius Engström Lisen Thulin

Fredrik Carlsson David Nilsson Sträng

Condensed financial statements

INCOME STATEMENT

KSEK Note Oct–Dec
2022
Oct–Dec
2021
Jan–Dec
2022
Jan–Dec
2021
Technical account of non-life insurance operations
Premiums earned, net of reinsurance 3 277,221 258,486 1,099,709 981,291
Allocated investment return transferred from the non-technical account 6,393 4,400 16,748 8,900
Claims incurred, net of reinsurance 4 -62,810 -55,765 -240,558 -231,021
Operating expenses 5 -175,881 -179,390 -712,799 -644,934
Technical result for non-life insurance operations 44,923 27,731 163,100 114,236
Non-technical account
Investment income 9,640 4,561 29,819 25,068
Investment charges -647 -605 -2,874 -2,188
Unrealised gains/losses on investment assets 11,659 2,766 -38,459 19,008
Result of asset management 6 20,652 6,722 -11,514 41,888
Allocated investment return transferred to technical account -6,393 -4,400 -16,748 -8,900
Other non-technical income 2,260 1,392 9,296 6,750
Other non-technical expenses -815 -503 -4,934 -2,609
Profit before appropriations and tax 60,627 30,942 139,200 151,365
Appropriations 0 0 0 0
Profit before tax 60,627 30,942 139,200 151,365
Tax on profit for the period -11,167 -5,613 -28,544 -31,385
Net profit for the period 49,460 25,329 110,656 119,980
Basic and diluted earnings per share, SEK 12 2.49 1.27 5.54 6.00

STATEMENT OF COMPREHENSIVE INCOME

KSEK Oct–Dec Oct–Dec Jan–Dec Jan–Dec
2022 2021 2022 2021
Net profit for the period 49,460 25,329 110,656 119,980
Items that will be reclassified to profit or loss
Translation differences in foreign operations 370 580 162 701
Comprehensive income for the period 49,830 25,909 110,818 120,681

BALANCE SHEET

KSEK Note 31 Dec
2022
31 Dec
2021
Assets
Intangible assets 16,994 22,545
Investment assets 7 830,149 682,621
Reinsurer's share of technical provisions 3,936 3,811
Receivables 85,584 81,052
Property, plant & equipment 914 1,911
Cash and bank balances 603,864 613,139
Other assets 6,241 388
Prepaid expenses and accrued income 240,373 210,418
Total assets 1,788,055 1,615,885
Equity and liabilities
Equity
Share capital 30,000 30,000
Fair value reserve -615 -777
Retained earnings 271,435 178,210
Net profit for the period 110,656 119,980
Total equity 411,476 327,413
Untaxed reserves
Contingency reserve 488,118 488,118
Total untaxed reserves 488,118 488,118
Liabilities
Technical provisions, net of outward reinsurance 8 660,659 615,900
Other liabilities 205,812 164,926
Accrued expenses and deferred income 21,990 19,528
Total liabilities 888,461 800,354
Total equity and liabilities 1,788,055 1,615,885

STATEMENT OF CHANGES IN EQUITY

KSEK Share Fair value Retained Net profit Total
capital reserve earni for the equity
ngs period
Equity, 1 January 2022 30,000 -777 178,210 119,980 327,413
Net profit for the period 110,656 110,656
Translation differences 162 162
Comprehensive income for the period 162 110,656 110,818
Previous year's profit brought forward 119,980 -119,980 0
Owner transactions
Repurchased own shares -26,811 -26,811
Option premiums received/repurchased 56 56
Equity, 31 December 2022 30,000 -615 271,435 110,656 411,476
Equity, 1 January 2021 30,000 -1,478 133,837 43,372 205,731
Net profit for the period 119,980 119,980
Translation differences 701 701
Comprehensive income for the period 701 119,980 120,681
Previous year's profit brought forward 43,372 -43,372 0
Owner transactions
Option premiums received/repurchased 1,001 1,001
Equity, 31 December 2021 30,000 -777 178,210 119,980 327,413

STATEMENT OF CASH FLOWS (INDIRECT METHOD)

KSEK Jan–Dec Jan–Dec
Operating activities 2022 2021
Profit before tax 139,200 151,365
Adjustment for non-cash items 55,784 -24,648
Income taxes paid -30,518 -13,894
Cash flow from operating activities before changes in working capital 164,466 112,823
Change in operating receivables -18,554 11,035
Change in operating liabilities 38,949 39,198
Cash flow from operating activities 184,861 163,056
Cash flow from investing activities -173,964 173,275
Cash flow from financing activities -26,755 -59,000
Cash flow for the period -15,858 277,331
Cash and cash equivalents at the beginning of the year 613,139 328,205
Cash flow for the period -15,858 277,331
Exchange differences in cash and cash equivalents 6,583 7,603
Cash and cash equivalents at end of period 603,864 613,139

The reported cash flows only include transactions involving cash inflows and outflows. The cash transactions are classified under operating activities, investing activities and financing activities. Cash and cash equivalents are bank deposits.

Notes to the financial statements

Note 1 Accounting policies

Solid Försäkring's year-end report has been prepared in accordance with IAS 34 Interim Financial Report and the applicable parts of the Swedish Annual Accounts Act for Insurance Companies (1995:1560), the Swedish Financial Supervisory Authority's regulations and general guidelines on Annual Accounts at Insurance Undertakings (FFFS 2019:23), including all applicable amendment regulations, and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities. Disclosures pursuant to IAS 34.16A are presented in the financial statements and the accompanying notes as well as elsewhere in this year-end report.

The ESMA guidelines on alternative performance measures are applied. These are performance measures that are not defined in applicable regulations (IFRS, ÅRFL, FFFS 2019:23 and FRL), but that Solid Försäkring believes to be relevant for monitoring and describing the company's financial situation and to provide additional useful information for users of the financial statements. Since these measures have been developed and adapted for Solid Försäkring, they are not fully comparable with similar performance measures presented by other companies.

The same accounting policies and basis for calculations were applied as those used in the most recent annual report. No other IFRS or IFRIC interpretations have come into force since 1 January 2022 that have had a material impact on the company.

Note 2 Segment information

Solid has established three operating segments: Personal Safety, Product and Assistance. These operating segments are reported in a manner consistent with the internal financial reporting provided to the chief operating decision maker. For Solid, the chief operating decision maker is the CEO since this is the person who is responsible for allocating resources and evaluating results. The financial information reported to the CEO, used as a basis for allocating resources and assessing the company's results, as gross profit and gross margin specified by three product areas, which have also been determined as the company's three operating segments: Personal Safety, Product and Assistance. The company uses the same valuation principles in its segment report according to IFRS 8 as in its financial statements.

Oct–Dec 2022

KSEK Personal Safety Product Assistance Not
specified
Total
by segment
Gross written premiums 96,124 101,011 88,668 285,803
Premiums earned, net of reinsurance 97,297 92,089 87,835 277,221
Claims incurred, net of reinsurance -9,325 -25,617 -27,868 -62,810
Acquisition costs* -61,914 -48,073 -40,494 -150,481
Gross profit** 26,058 18,399 19,473 63,930
Gross margin*** 26.8% 20.0% 22.2% 23.1%
Administrative expenses -25,400 -25,400
Allocated investment return transferred from non-technical account 6,393 6,393
Technical result 44,923
Result of asset management 20,652 20,652
Allocated investment return transferred to non-technical account -6,393 -6,393
Other non-technical income 2,260 2,260
Other non-technical expenses -815 -815
Profit before tax 60,627

Premiums earned, net of reinsurance, for the quarter amounted to KSEK 94,223 (89,270) for Solid Försäkring's largest partner in the Personal Safety segment, and to KSEK 31,006 (20,968) for Solid Försäkring's largest partner in the Assistance segment.

Oct–Dec 2021
KSEK Personal Safety Product Assistance Not
specified
Total
by segment
Gross written premiums 94,001 105,421 81,590 281,012
Premiums earned, net of reinsurance 91,884 91,179 75,423 258,486
Claims incurred, net of reinsurance -8,392 -25,758 -21,615 -55,765
Acquisition costs* -58,858 -47,617 -38,426 -144,901
Gross profit** 24,634 17,804 15,382 57,820
Gross margin*** 26.8% 19.5% 20.4% 22.4%
Administrative expenses -34,489 -34,489
Allocated investment return transferred from non-technical account 4,400 4,400
Technical result 27,731
Result of asset management 6,722 6,722
Allocated investment return transferred to non-technical account -4,400 -4,400
Other non-technical income 1,392 1,392
Other non-technical expenses -503 -503
Profit before tax 30,942

Jan–Dec 2022

KSEK Personal Safety Product Assistance Not
specified
Total
by segment
Gross written premiums 389,753 375,701 386,467 1,151,921
Premiums earned, net of reinsurance 381,037 366,411 352,261 1,099,709
Claims incurred, net of reinsurance -32,300 -104,169 -104,089 -240,558
Acquisition costs* -244,006 -195,464 -169,624 -609,094
Gross profit** 104,731 66,778 78,548 250,057
Gross margin*** 27.5% 18.2% 22.3% 22.7%
Administrative expenses -103,705 -103,705
Allocated investment return transferred from non-technical account 16,748 16,748
Technical result 163,100
Result of asset management -11,514 -11,514
Allocated investment return transferred to non-technical account -16,748 -16,748
Other non-technical income 9,296 9,296
Other non-technical expenses -4,934 -4,934
Profit before tax 139,200

Premiums earned, net of reinsurance, for the full-year 2022 amounted to KSEK 369,652 (364,951) for Solid Försäkring's largest partner in the Personal Safety segment, and to KSEK 129,455 (58,830) for Solid Försäkring's largest partner in the Assistance segment.

Jan–Dec 2021
KSEK Personal Safety Product Assistance Not Total
specified
by segment
Gross written premiums 369,547 361,090 282,784 1,013,421
Premiums earned, net of reinsurance 374,391 346,577 260,323 981,291
Claims incurred, net of reinsurance -39,039 -103,545 -88,437 -231,021
Acquisition costs* -236,415 -179,709 -118,560 -534,684
Gross profit** 98,937 63,323 53,326 215,586
Gross margin*** 26.4% 18.3% 20.5% 22.0%
Administrative expenses -110,250 -110,250
Allocated investment return transferred from non-technical account 8,900 8,900
Technical result 114,236
Result of asset management 41,888 41,888
Allocated investment return transferred to non-technical account -8,900 -8,900
Other non-technical income 6,750 6,750
Other non-technical expenses -2,609 -2,609
Profit before tax 151,365

* Acquisition costs include brokerage commission and costs for direct sales, included in Note 5 Operating expenses.

** Gross profit = premiums earned, net of reinsurance minus claims incurred net of reinsurance minus acquisition costs

*** Gross margin = gross profit as a percentage of premiums earned, net of reinsurance

Note 3 Premiums earned, net of reinsurance

KSEK Oct–Dec Oct–Dec Jan–Dec Jan–Dec
2022 2021 2022 2021
Gross written premiums, geographical specification
Sweden 166,399 168,151 671,998 646,602
Norway 46,411 49,110 190,402 170,667
Denmark 22,765 22,755 92,135 69,978
Finland 13,447 12,104 50,661 48,669
Rest of Europe 36,781 28,892 146,725 77,505
Total gross written premiums 285,803 281,012 1,151,921 1,013,421
Outward reinsurance premiums -6,062 -9,193 -22,871 -27,605
Change in provision for unearned premiums and unexpired risks -2,371 -12,612 -29,419 -4,634
Reinsurers' share of change in provision for unearned premiums and unexpired risks -149 -721 78 109
Total premiums earned, net of reinsurance 277,221 258,486 1,099,709 981,291

Note 4 Claims incurred, net of reinsurance

KSEK Oct–Dec Oct–Dec Jan–Dec Jan–Dec
2022 2021 2022 2021
Claims paid, net of outward reinsurance -66,136 -58,952 -252,952 -232,902
Reinsurers' share of Claims paid 2,761 1,798 11,116 6,325
Change in Provision for claims outstanding, net of outward reinsurance 1,147 1,399 1,308 -4,434
Reinsurers' share of Change in provision for claims outstanding -582 -10 -30 -10
Total claims incurred, net of reinsurance -62,810 -55,765 -240,558 -231,021

Note 5 Operating expenses

KSEK Oct–Dec
2022
Oct–Dec
2021
Jan–Dec
2022
Jan–Dec
2021
Specification of income statement item operating expenses
Acquisition costs* -154,465 -154,277 -630,783 -539,232
Change in item Deferred acquisition costs* 3,485 8,848 18,631 2,920
Administrative expenses -25,400 -34,489 -103,705 -110,250
Operating expenses and profit-sharing in outward reinsurance* 499 528 3,058 1,628
Total income statement item operating expenses -175,881 -179,390 -712,799 -644,934
Other operating expenses
Claims adjustment costs included in Claims paid -6,610 -6,032 -23,338 -23,030
Financial management costs included in Investment charges -300 -300 -1,200 -1,200
Total other operating expenses -6,910 -6,332 -24,538 -24,230
Total operating expenses -182,791 -185,722 -737,337 -669,164

* Marked items comprise total acquisition costs

Note 6 Result of asset management

KSEK Oct–Dec
2022
Oct–Dec
2021
Jan–Dec
2022
Jan–Dec
2021
Investment income
Dividends on shares and participating interests 221 915 3,016 3,561
Interest income, bonds and other interest-bearing securities 5,475 1,966 13,386 7,670
Other interest income * 3,788 1,206 5,249 4,061
Exchange gains (net) -519 424 3,050 1,468
Capital gains (net) 671 47 5,100 8,291
Other 4 3 18 17
Total investment income 9,640 4,561 29,819 25,068
Investment charges -647 -605 -2,874 -2,188
Unrealised gains/losses on investment assets recognised through profit or loss
Shares and participating interests 10,906 5,938 -14,237 20,057
Bonds and other interest-bearing securities 753 -3,172 -24,222 -1,049
Total unrealised gains/losses on investment assets 11,659 2,766 -38,459 19,008
Result of asset management 20,652 6,722 -11,514 41,888

* All Other interest income consists of interest income on assets measured at fair value.

Note 7 Investment assets

KSEK 31 Dec 31 Dec
2022 2021
Shares and participating interests 91,318 78,788
Bonds and other interest-bearing securities 719,286 574,581
Subordinated loans 19,545 29,252
Total investment assets 830,149 682,621

Note 8 Technical provisions, net of outward reinsurance

KSEK 31 Dec
2022
31 Dec
2021
Opening balance technical provisions, net of outward reinsurance 615,900 587,764
Provision for unearned premiums and unexpired risks, gross
Opening balance 555,105 532,931
Insurance policies written during the period 1,151,921 1,013,421
Premiums earned during the period -1,122,501 -1,008,787
Currency effects 14,851 17,540
Closing balance 599,376 555,105
Provision for claims outstanding, gross
Opening balance 60,795 54,833
Settled claims from previous financial years -24,550 -21,940
Changes in the expected cost of claims incurred in previous years (run-off result) -3,108 -8,332
Provisions for the year 26,350 34,706
Currency effects 1,796 1,528
Closing balance 61,283 60,795
Closing balance technical provisions, net of outward reinsurance 660,659 615,900

Note 9 Pledged assets for own liabilities

KSEK 31 Dec
2022
31 Dec
2021
Policyholders' priority rights
Assets encompassed by policyholders' priority rights 1,438,690 1,296,131
Technical provisions, net -656,723 -612,089
Surplus from registered assets 781,967 684,042

Note 10 Disclosures on related parties

Solid Försäkringsaktiebolag is 28.9 per cent owned by Waldakt AB, and of the remaining owners, no individual owner has a holding of 20 per cent or more. No business transactions of significant importance took place with related parties during the period.

Related parties – Key individuals Marcus Tillberg CEO of Solid Försäkringsaktiebolag Lars Nordstrand Chairman of Solid Försäkringsaktiebolag Fredrik Carlsson Board member of Solid Försäkringsaktiebolag David Nilsson Sträng Board member of Solid Försäkringsaktiebolag Marita Odélius Engström Board member of Solid Försäkringsaktiebolag Lisen Thulin Board member of Solid Försäkringsaktiebolag

Remuneration of key individuals

There were no material changes to the scope of remuneration and benefits for senior executives during the period.

Note 11 Financial instruments

The table below shows financial instruments measured at fair value, based on their classification in the fair value hierarchy. The

different levels are defined as follows:

  • Listed prices (unadjusted) in active markets for identical assets or liabilities (level 1).

  • Other observable inputs for assets or liabilities other than listed prices included in level 1 directly (i.e., price quotations) or indirectly (i.e., derived from price

quotations) (level 2).

  • Inputs for assets or liabilities that are not based on observable market data (i.e., unobservable inputs) (level 3).
KSEK Measurement
level
31 Dec
2022
31 Dec
2021
Financial assets at fair value through profit or loss
Bonds and other interest-bearing securities 1 738,831 603,833
Listed shares 1 91,318 78,788
Total 830,149 682,621
Financial liabilities at fair value through profit or loss
Derivatives 2 0 -660
Total 0 -660
Assets, KSEK 31 Dec 2022 31 Dec 2021
Amortised
cost*
Fair value
through
profit or loss
Carrying
amount
Amortised
cost*
Fair value
through
profit or loss
Carrying
amount
Financial assets
Shares and participating interests 91,318 91,318 78,788 78,788
Other interest-bearing securities 738,831 738,831 603,833 603,833
Receivables, direct insurance and reinsurance 83,800 83,800 81,042 81,042
Cash and bank balances and other cash equivalents 603,912 603,912 613,193 613,193
Prepaid expenses and accrued income 4,677 4,677 1,031 1,031
Total financial assets 687,712 834,826 1,522,538 694,235 683,652 1,377,887
Non-financial assets 265,517 237,998
Liabilities, KSEK 31 Dec 2022 31 Dec 2021
Amortised
cost*
Fair value
through
profit or loss
Carrying
amount
Amortised
cost*
Fair value
through
profit or loss
Carrying
amount
Financial liabilities
Liabilities, direct insurance and reinsurance 190,150 190,150 158,712 158,712
Derivatives 0 660 660
Other liabilities 15,662 15,662 5,554 5,554
Total financial liabilities 205,812 0 205,812 164,266 660 164,926
Non-financial liabilities 682,649 635,428

* Assets and liabilities are recognised at amortised cost, which is a good approximation of fair value

Note 12 Earnings per share

Basic earnings per share are calculated by dividing the earnings attributable to the company's shareholders by an average number of ordinary shares outstanding for the period. The average number of shares is a weighted number of shares for the period after the repurchase of own shares. The average number of shares between October and December 2022 amounted to 19,849,664 (20,000,000). The average number of shares between January and December 2022 amounted to 19,962,107 (20,000,000) with a quotient value of SEK 1.5 (1.5). There was no dilutive effect as of 31 December 2022.

Oct–Dec Oct–Dec Jan–Dec Jan–Dec
2022 2021 2022 2021
Net profit for the period, KSEK 49,460 25,329 110,656 119,980
Average number of shares outstanding in the period 19,849,664 20,000,000 19,962,107 20,000,000
Basic and diluted earnings per share, SEK 2.49 1.27 5.54 6.00

Teleconference in connection with publication of the year-end report

In connection with the publication of the year-end report, CEO Marcus Tillberg and CFO Sofia Andersson will hold a teleconference on 7 February 2023 at 11:00 a.m. CET. To participate in the conference, click on the following link https://ir.financialhearings.com/solid-q4-2022, which you can also use to write questions. If you want to ask a question verbally at the teleconference, register using the following link https://conference.financialhearings.com/teleconference/?id=5004925. After registering you will receive a telephone number and ID to log into the conference. Presentation material will be available on Solid's website: https://corporate.solidab.se/en/investors/reports-and-presentations/

Interim reports

The complete January–December 2022 Year-end Report will be available on https://corporate.solidab.se/en/investors/reports-and-presentations/ This information is such information that Solid Försäkringsaktiebolag (publ) is required to disclose pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, on 7 February 2023 at 7:30 a.m. CET.

For further information, contact

Marcus Tillberg, CEO, [email protected], +46 703 78 20 65 Sofia Andersson, CFO, [email protected], +46 700 42 11 77 Johan Hähnel, Head of IR, [email protected], +46 705 05 63 34

Solid Försäkringsaktiebolag Landskronavägen 23 Box 220 68 SE-250 22 Helsingborg

Tel: +46 42 38 21 00 www.solidab.se

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