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Solid Försäkringsaktiebolag

Quarterly Report Jul 21, 2022

3199_ir_2022-07-21_3fe1a424-f015-4e66-ad6b-55f04d4bae0e.pdf

Quarterly Report

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Interim report January–June 2022 (Q2)

Premiums earned increased 13 per cent and technical result rose 37 per cent in Q2

April-June 2022*

  • Gross written premiums increased 19 per cent to KSEK 291,855 (244,395)
  • Premiums earned, net of reinsurance, increased 13 per cent to KSEK 273,901 (241,893)
  • Technical result increased 37 per cent to KSEK 38,965 (28,429), which is the highest technical result for a quarter in Solid's history
  • The combined ratio improved to 86.9 per cent (88.9)
  • The result of asset management declined to KSEK -18,620 (8,244), corresponding to a portfolio return** of -1 per cent
  • Profit after tax declined to KSEK 14,006 (29,247)
  • Basic and diluted earnings per share declined to SEK 0.70 per share (1.46)

January–June 2022*

  • Gross written premiums increased 22 per cent to KSEK 561,936 (460,258)
  • Premiums earned, net of reinsurance, increased 14 per cent to KSEK 542,495 (476,740)
  • Technical result increased 24 per cent to KSEK 72,397 (58,293)
  • The combined ratio improved to 87.7 per cent (88.4)
  • Result of asset management declined to KSEK -32,787 (32,201) and total return was -2.4 per cent (2.8).
  • Profit after tax declined to KSEK 27,019 (69,602)
  • Basic and diluted earnings per share declined to SEK 1.35 per share (3.48)

* 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.

** The portfolio return is calculated as the result of asset management for the period in relation to the average total investment assets

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 2021 amounted to SEK 981 million and the technical result to SEK 114 million.

Comments from the CEO

Strong performance in challenging times – highest quarterly technical result in Solid's history

In an business environment characterised by widespread turmoil and volatility, we can conclude that the second quarter delivered healthy sales growth and a strong technical result. The continuing volatility in the financial markets adversely affects the non-technical account with unrealised changes in the value of investment assets resulting in a negative impact on net profit before tax for the period. Sales continued to perform positively in all segments in the second quarter of the year and gross written premiums increased 19 per cent compared with last year.

Premiums earned for the second quarter increased 13 per cent to SEK 274 million and

14 per cent in the first six months of the year compared with the year-earlier periods. The Assistance segment was a particular highlight, reporting a 41 per cent increase in premiums earned in the second quarter, with both insurance solutions related to car warranties and insurance for the travel industry contributing to the increase. Premiums earned in the Personal Safety segment were in line with the year-earlier period and in the Product segment we continued to capture market shares in the Danish market, which contributed to premiums earned increasing 8 per cent.

The technical result was very strong, up 37 per cent to SEK 39 million, which is the highest technical result for a single quarter in the company's history. The technical result increased 24 per cent for the first half of the year to SEK 72 million.

The combined ratio in the second quarter reported a positive and stable trend and was 86.9 per cent, which is lower than the year-earlier period (88.9), due to stable underlying business and good cost control. For the first six months of the year, the combined ratio was 87.7 per cent compared with 88.4 per cent in the same period in 2021.

The continuing volatility in the financial markets resulted in a loss from the nontechnical account of SEK -19 million for the second quarter, corresponding to a portfolio return of -1 per cent. The unrealised decline in value amounted to SEK -26 million, of which SEK -14 million was attributable to the company's interest-rate portfolio. Our strategy is to hold bonds until maturity. Profit from the non-technical account in the year-earlier period was SEK 8 million.

Accordingly, profit before appropriations and tax amounted to SEK 18 million for the quarter and to SEK 35 million for the first half of the year, compared with SEK 36 million and SEK 89 million, respectively, last year. As stated above, the decline was fully attributable to the trend in unrealised market valuations in the investment portfolio.

New partnerships

Our organic growth is primarily driven by developing existing partnerships and increasing the number of our partners. During the period, Solid Försäkring entered into a number of new partnerships, such as with Insplanet, which is part of the Zmarta Group and that has a leading position in consumer non-life insurance comparison and distribution. The partnership means that Zmarta/Insplanet will distribute roadside assistance insurance to its customers. The launch took place on 1 July 2022.

An agreement was also entered into with Fairlo, a loan company serving the Swedish market. Under this partnership, Fairlo will distribute Solid Försäkring's payment protection insurance to its customers. The launch is scheduled for Q3 2022.

Stability

Solid Försäkring currently has a strong financial position with an SCR ratio amounting to 169 per cent on 30 June, corresponding to an increase of 1 percentage point compared with the end of March 2022 (168).

Due to the strong financial position and valuation of Solid Försäkringsaktiebolag's own shares, the Board of Solid Försäkringsaktiebolag is considering convening an Extraordinary General Meeting in September and proposing that the shareholders grant authorisation to acquire Solid Försäkringsaktiebolag's own shares. A formal Board decision regarding a complete repurchase proposal and notice of the Extraordinary General Meeting may be made in August this year.

Marcus Tillberg, CEO Solid Försäkring

Highlights Q2

+19% Gross written premiums

+41%

Growth in premiums earnings for Assistance segment

+37% Technical result

New partnerships Q2

The company's earnings

Second quarter 2022, April–June

Gross written premiums increased KSEK 47,460 to KSEK 291,855 (244,395) for the period. Sales increased in all segments compared with the year-earlier period, but was mainly driven by the positive performance in Assistance for which sales related to travel insurance products increased 153 per cent compared

with the year-earlier period. Sales of insurance policies linked to car warranties also increased during the quarter. The increase in the Product segment was mainly attributable to the Danish market where the company is continuing to capture market shares. The increase in Personal Safety was mainly due to sales of payment protection insurance in the Swedish and Norwegian markets.

Premiums earned, net of reinsurance, increased KSEK 32,008, corresponding to 13 per cent, to KSEK 273,901 (241,893). Growth was mainly driven by the strong performance in the Assistance segment for which the increase was 41 per cent. Premiums earned in the Product segment increased 8 per cent, primarily driven by growth in the consumer electronics industry in Denmark. Premiums earned in the Personal Safety segment were in line with last year.

The technical result increased KSEK 10,536, corresponding to 37 per cent, to KSEK 38,965, which is the highest technical result for a single quarter in the company's history.

Excluding the share of investment return transferred to the insurance operations, the increase was 38 per cent compared with the year-earlier period. Claims costs declined and the claims ratio margin improved in all segments during the quarter.

Operating expenses increased 15 per cent to KSEK 183,495 (159,319). The increase was mainly due to higher acquisition costs driven by higher sales, but also to a changed product and partner mix in the Assistance and Product segments and lower claim costs. Administrative expenses as a percentage of premiums earned amounted to 9.8 per cent for the period, which is lower than last year when the percentage was 10.6 per cent.

The combined ratio improved to 86.9 per cent (88.9) due to the positive trend in claim costs and administrative expenses.

The volatility in the capital market continued in the second quarter, which negatively affected the market valuations of the company's investment assets. The result of asset management amounted to KSEK -18,620 (8,244), corresponding to a portfolio return of -1 per cent. The negative result comprised unrealised changes in the value of investment assets, KSEK -25,638 (-823), refer to Note 6 for more detailed information.

Profit after tax declined KSEK 15,241 to KSEK 14,006 (29,247).

Second quarter 2022

+19% Gross written premiums

+13% Premiums earned, net of reinsurance

+37% Technical result

86.9%

Combined ratio

Performance per quarter (SEK million)

First half of 2022, January–June

Gross written premiums increased KSEK 101,678 to KSEK 561,936 (460,258) for the period. Sales increased in all segments, but were mainly driven by the travel industry's recovery from COVID-19, which positively impacted demand for travel insurance products in the Assistance segment. In the Product segment, the increase was mainly attributable to the consumer electronics industry in Denmark and the high sales in the Personal Safety segment were primarily due to the positive performance of the Norwegian market.

Premiums earned, net of reinsurance increased KSEK 65,755, corresponding to 14 per cent, to KSEK 542,495 (476,740). Growth was mainly driven by the continuing strong performance in the Assistance segment for which the increase was 46 per cent. Premiums earned in the Product segment increased 8 per cent, primarily driven by growth in the consumer electronics industry in Denmark. Premiums earned in the Personal Safety segment fell 1 per cent.

The technical result increased KSEK 14,104, corresponding to 24 per cent, to KSEK 72,397. Excluding the share of investment return transferred to the insurance operations, the increase was 21 per cent compared with the year-earlier period. From the 2022 financial year, the company adjusts for the share of investment return transferred to the insurance operations every quarter. In prior years, the adjustment was made annually in December.

The claims ratio margin improved year-on-year to 21.1 per cent (23.6) Operating expenses increased 17 per cent to KSEK 360,940 (309,074), which were mainly due to higher acquisition costs. Administrative expenses as a percentage of premiums earned amounted to 9.9 per cent for the first half of the year, which is in line with expectations but lower than last year when the percentage was 10.5 per cent.

The combined ratio improved to 87.7 per cent (88.4) due to the positive trend in claim costs and administrative expenses.

The ongoing war in Ukraine, higher energy prices and rising inflation and interest rates impacted the capital market in the first half of the year, which resulted in higher volatility and lower market values for the company's investment assets. The result of asset management for the period amounted to KSEK -32,787 (32,201) and total return to -2.4 per cent (2.8). The negative result comprised unrealised changes in the value of investment assets, which amounted to KSEK -43,316 (17,604). The total value of the investment portfolio on 30 June amounted to KSEK 1,341,720, of which KSEK 620,518 was cash and cash equivalents, KSEK 87,387 equities and KSEK 633,815 other interest-bearing assets, mainly bonds at floating interest rates. The company's strategy is to hold bonds until maturity.

Profit after tax declined KSEK 42,583 to KSEK 27,019 (69,602).

First half of 2022

+22 % Gross written premiums

+14 % Premiums earned, net of reinsurance

+24% Technical result

87.7 Combined ratio

Financial position, equity and cash flow, 30 June 2022

Equity (2) on 30 June amounted to KSEK 741,788 (662,888) and Net Asset Value (2) to KSEK 722,632 (636,122). For the first half of the year 1 January–30 June 2022, annualised RoE (2)* amounted to 7.4 per cent (22.2) and annualised RoNAV (2)** to 8.4 per cent (24.5).

The SCR ratio improved to 169 per cent on 30 June (161), and declined 4 percentage points compared with the end of December 2021 (173). The decrease was primarily due to lower profit after tax for the first half of the year, as a consequence of the negative result of asset management, while the insurance risk increased due to the company's growth in its insurance operations. The company has a stable Solvency II position and company management and the Board do not believe that the ongoing war in Ukraine or the continuing effects of the previous pandemic will jeopardise stability or the capital situation in the future. However, the company is closely following external developments and any impact from rising inflation, higher interest rates and increased energy prices to 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 80,996 (163,056). Cash flow from investing activities amounted to KSEK -75,693 (173,275). During the quarter, investment assets were acquired for KSEK 156,440 and the value of divested and mature investment assets amounted to KSEK 80,533. The subordinated loan of KSEK 200,000 to Resurs Bank fell due for payment in April 2021. Cash flow from financing activities amounted to KSEK 0 (-59,000). Cash and cash equivalents increased to KSEK 620,518 (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.

8.4% RoNAV (2)

169% SCR ratio

Performance measures

KSEK, unless otherwise stated Apr Apr-Jun Cha Jan– Jan–Jun Change Jan–
Jun
2022
2021 nge Jun
2022
2021 Dec
2021
Gross written premiums 291,855 244,395 19% 561,936 460,258 22% 1,013,421
Premiums earned, net of reinsurance 273,901 241,893 13% 542,495 476,740 14% 981,291
Technical result 38,965 28,429 37% 72,397 58,293 24% 114,236
Result of asset management -18,620 8,244 -326% -32,787 32,201 -202% 41,888
Profit after tax 14,006 29,247 -52% 27,019 69,602 -61% 119,980
Earnings per share, SEK 0.70 1.46 -52% 1.35 3.48 -61% 6.00
Claims ratio 19.9% 23.0% 21.1% 23.6% 23.5%
Expense ratio 67.0% 65.9% 66.5% 64.8% 65.7%
Combined ratio 86.9% 88.9% 87.7% 88.4% 89.3%
KSEK, unless otherwise stated 30 Jun
2022
31 Dec
2021
30 Jun
2021
Investment assets measured at fair value 721,202 682,621 655,522
Investment assets including cash and cash equivalents 1,341,720 1,295,760 1,192,122
Direct yield, from beginning of year, % 0.7% 1.4% 0.8%
Total return, from beginning of year, % -2.4% 3.6% 2.8%
Technical provisions, net of reinsurance 627,906 612,089 568,607
Net asset value 842,340 815,531 763,440
Equity 354,222 327,413 275,322
Equity (2)* 741,788 714,979 662,888
Net Asset Value, NAV (2)* 722,632 692,434 636,122
Return on equity (2), RoE (2) %* 7.4% 18.4% 22.2%
Return on equity excl. intangible assets, RoNAV (2) %* 8.4% 20.3% 24.5%
Eligible capital base to meet solvency capital requirement 822,506 797,379 733,858
Eligible capital base to meet minimum capital requirement 816,911 792,259 725,515
Solvency Capital Requirement (SCR) 486,664 461,754 456,818
Minimum Capital Requirement (MCR) 141,766 130,604 124,621
SCR ratio 169% 173% 161%
MCR ratio 576% 607% 582%
Solvency ratio, % 73.3% 82.7% 85.0%
Number of employees at end of period* 71 68 70
Average number of FTEs* 68 66 67

* 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

Second quarter 2022, April–June

During the period, Solid Försäkring signed an agreement with a new partner, Fairlo, which is a loan company serving the Swedish market. Fairlo will distribute Solid Försäkring's payment protection insurance to its customers and the partnership is scheduled to launch in Q3 2022. Preparations for the launch of the partnerships with Wästgöta Finans, Svea Bank and Fairlo continued during the quarter and are progressing according to plan.

Sales (gross written premiums) for the segment rose 3 per cent compared with the year-earlier period. The increase was mainly due to sales of payment protection insurance in the Swedish and Norwegian markets.

Premiums earned, net of reinsurance, were in line with the preceding year at KSEK 94,232 (94,221).

Costs for claims incurred, net of reinsurance, declined to KSEK 8,049 (10,795). Accordingly, claim costs have returned to pre-pandemic levels and the claims ratio for the segment improved during the period.

Gross profit increased KSEK 960 to KSEK 25,571 (24,611). The gross margin improved to 27.1 per cent (26.1), mainly due to lower costs for claims incurred, net of reinsurance.

First half of 2022, January–June

Sales (gross written premiums) for the segment rose 6 per cent compared with the year-earlier period. This increase was primarily driven by the performance of the Norwegian market for which sales of payment protection insurance increased 37 per cent compared with last year.

Premiums earned, net of reinsurance, declined 1 per cent to KSEK 187,499 (189,655).

Costs for claims incurred, net of reinsurance, declined KSEK 7,784 to KSEK 15,624 (23,408). The effects that the pandemic had on claim costs, caused by higher unemployment and illness, have abated.

Gross profit increased KSEK 2,954 to KSEK 51,811 (48,857). The gross margin improved to 27.6 per cent (25.8), mainly due to lower costs for claims incurred, net of reinsurance.

Share of premiums earned, net of reinsurance, Jan–Jun 2022

Second quarter 2022

+3%

Gross written premiums 0%

Premiums earned, net of reinsurance

+4%

Gross profit 27.1%

Gross margin

Performance per quarter (SEK million)

Performance measures – Personal Safety

KSEK Apr Apr Cha Jan– Jan– Cha Jan–
Jun
2022
Jun
2021
nge Jun
2022
Jun
2021
nge Dec
2021
Gross written premiums 94,546 91,818 3% 195,405 183,753 6% 369,547
Premiums earned, net of
reinsurance
94,232 94,221 0% 187,499 189,655 -1% 374,391
Claims incurred, net of
reinsurance
-8,049 -10,795 -25% -15,624 -23,408 -33% -39,039
Acquisition costs* -60,612 -58,815 3% -120,064 -117,390 2% -236,415
Gross profit** 25,571 24,611 4% 51,811 48,857 6% 98,937
Gross margin*** 27.1% 26.1% +1.0 p.p. 27.6% 25.8% +1.8 p.p. 26.4%

* 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

Second quarter 2022, April–June

The company is continuously developing existing partnerships, focusing on initiatives that increase the share of insurance. For example, the product range was expanded during the period together with a partner in the Norwegian market and work is being conducted to broaden the range of insurance further.

Sales (gross written premiums) for the segment rose 11 per cent compared with the year-earlier period, mainly driven by the partnership with Power in the Danish market where the company is continuing to capture market shares.

Premiums earned, net of reinsurance increased KSEK 6,534 to KSEK 91,372 (84,838). This increase was primarily attributable to insurance for consumer electronics in the Norwegian and Danish markets.

Costs for claims incurred, net of reinsurance, declined KSEK 534 to KSEK 24,384 (24,918). The claims ratio for the segment improved during the period. Acquisition costs increased year-on-year to KSEK 50,203 (45,261), due to sales growth, a changed product and partner mix in the segment and lower claim costs.

Gross profit increased KSEK 2,126 to KSEK 16,785 (14,659). The gross margin improved to 18.4 per cent (17.3), primarily due to lower claim costs.

First half of 2022, January–June

Sales (gross written premiums) for the segment rose 11 per cent compared with the year-earlier period, mainly driven by the trend in consumer electronics in Denmark and partially also in Norway.

Premiums earned, net of reinsurance, increased KSEK 13,366 to KSEK 181,360 (167,994). This increase was primarily attributable to insurance for consumer electronics in the Norwegian and Danish markets.

Costs for claims incurred, net of reinsurance, were in line with the preceding year at KSEK 47,672 (48,071). The claims ratio for the segment improved during the period. Acquisition costs increased to KSEK 99,211 (88,057), due to sales growth, a changed product and partner mix in the segment and lower claim costs.

Gross profit increased KSEK 2,611 to KSEK 34,477 (31,866). The gross margin was in line with the preceding year at 19.0 per cent (19.0).

Share of premiums earned, net of reinsurance, Jan–Jun 2022

Second quarter 2022

+11%

Gross written premiums

+8% Premiums earned, net of reinsurance

+15%

Gross profit

18.4% Gross margin

Performance per quarter (SEK million)

Performance measures – Product

KSEK Apr Apr Cha Jan– Jan– Chan Jan–
Jun
2022
Jun
2021
nge Jun
2022
Jun
2021
ge Dec
2021
Gross written premiums 92,518 83,158 11% 166,423 149,653 11% 361,090
Premiums earned, net of
reinsurance
91,372 84,838 8% 181,360 167,994 8% 346,577
Claims incurred, net of
reinsurance
-24,384 -24,918 -2% -47,672 -48,071 -1% -103,545
Acquisition costs* -50,203 -45,261 11% -99,211 -88,057 13% -179,709
Gross profit** 16,785 14,659 15% 34,477 31,866 8% 63,323
Gross margin*** 18.4% 17.3% +1.1 p.p. 19.0% 19.0% +0.0 p.p. 18.3%

* 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)

Second quarter 2022, April–June

The segment reported a sharp increase in sales again in the second quarter. The recovery of the travel industry was substantial and travellers are showing signs of buying supplementary travel insurance and/or cancellation insurance to a greater extent than before the pandemic. Gross written premiums for the company's travel insurance products increased 153 per cent compared with the year-earlier period.

During the quarter, a new partnership was entered into with Insplanet, part of the Zmarta Group and that has a leading position in consumer non-life insurance comparison and distribution. Zmarta/Insplanet will distribute the company's roadside assistance insurance to its customers. The launch took place on 1 July 2022.

Despite the general slowdown in the used-car market, the company's sales of insurance related to car warranties rose 25 per cent compared with last year. According to statistics from Vroom, 18 per cent¹ fewer used cars were sold in Q2 2022 compared with Q2 2021.

Gross written premiums rose KSEK 35,372 during the period to KSEK 104,791 (69,419). Premiums earned, net of reinsurance, increased KSEK 25,463 to KSEK 88,297 (62,834). The increase in both gross written premiums and in premiums earned, net of reinsurance, was primarily attributable to travel insurance products but also to insurance related to car warranties.

Costs for claims incurred, net of reinsurance, increased to KSEK 22,076 (19,932). The claims ratio fell during the period compared with last year. Acquisition costs increased to KSEK 45,803 (29,692), due to sales growth, a changed product and partner mix in the segment and lower claim costs.

Gross profit increased KSEK 7,208 to KSEK 20,418 (13,210) mainly as a result in growth in premiums earned. The gross margin improved to 23.1 per cent (21.0)

¹Source: https://www.mynewsdesk.com/se/vroom/pressreleases/bilmarknaden-juni-2022- 3179202

First half of 2022, January–June

Gross written premiums increased KSEK 73,256 to KSEK 200,108 (126,852). Premiums earned, net of reinsurance, increased KSEK 54,545 to KSEK 173,636 (119,091). The increase in both gross written premiums and in premiums earned, net of reinsurance, was mainly attributable to travel insurance products but also to insurance related to car warranties.

Gross profit increased KSEK 9,886 to KSEK 34,377 (24,491) mainly as a result in growth in premiums earned. The gross margin deteriorated slightly to 19.8 per cent (20.6) mainly driven by a changed product mix, with the share of cancellation insurance in the segment increasing compared with the year-earlier period.

Share of premiums earned, net of reinsurance, Jan–Jun 2022

Second quarter 2022

+51% Gross written premiums

+41% Premiums earned, net of reinsurance

+55% Gross profit

23.1% Gross margin

Performance per quarter (SEK million)

KSEK Apr Apr-Jun Cha Jan– Jan– Cha Jan–
Jun 2021 nge Jun Jun nge Dec
2022 2022 2021 2021
Gross written premiums 104,791 69,419 51% 200,108 126,852 58% 282,784
Premiums earned, net of
reinsurance
88,297 62,834 41% 173,636 119,091 46% 260,323
Claims incurred, net of
reinsurance
-22,076 -19,932 11% -51,271 -40,894 25% -88,437
Acquisition costs* -45,803 -29,692 54% -87,988 -53,706 64% -118,560
Gross profit** 20,418 13,210 55% 34,377 24,491 40% 53,326
Gross margin*** 23.1% 21.0% +2.1 p.p. 19.8% 20.6% -0.8 p.p. 20.5%

Performance measures – Assistance

* 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

Second quarter 2022, April–June

The Russian invasion of Ukraine and turmoil in the financial markets continued to impact the business environment in the second quarter of the year. The higher volatility mainly affected the market valuations of Solid Försäkring's investment portfolio. The company is closely monitoring developments in the external environment and any impact of rising inflation, higher interest rates and increased energy prices to identify any early signs of potential changes in consumer behaviour, which could affect the company's insurance operations.

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 risktaking 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 the ongoing pandemic will 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 71 (70) on 30 June, an increase of three 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 30 June 2022 was SEK 39.92. A total of 2,802,522 shares were traded during the period, corresponding to a turnover rate of 14.01 per cent during the measurement period of 1 January–30 June 2022.

71

Number of employees

The largest directly registered shareholders on
30 June 2022
Percenta
ges of
share
capital
Waldakt AB 28.9%
Avanza Pension 5.6%
Investment AB Spiltan 5.2%
Swedbank Robur Fonder 3.5%
Vanguard 2.5%
Swedbank Försäkring 2.4%
Nordnet Pensionsförsäkring 2.2%
Traction 2.0%
Livförsäkringsbolaget Skandia 1.9%
Catea Group AB 1.7%
55.8%

Financial calendar

25 October 2022 Interim report January–September 2022 (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.

Dividends

In accordance with previous communication during the listing process, Solid Försäkring's 2022 Annual General Meeting resolved that no dividend be paid to shareholders for the 2021 financial year.

25 October

Next interim 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, 20 July 2022

Marcus Tillberg, CEO

The Board of Directors

Lars Nordstrand, Chairman

Fredrik Carlsson David Nilsson Sträng

Marita Odélius Engström Lisen Thulin

Condensed financial statements

INCOME STATEMENT

KSEK Note Apr-Jun
2022
Apr-Jun
2021
Jan-Jun
2022
Jan-Jun
2021
Jan–Dec
2021
Technical account of non-life insurance operations
Premiums earned, net of reinsurance 3 273,901 241,893 542,495 476,740 981,291
Allocated investment return transferred from the non-technical account 3,068 1,500 5,409 3,000 8,900
Claims incurred, net of reinsurance 4 -54,509 -55,645 -114,567 -112,373 -231,021
Operating expenses 5 -183,495 -159,319 -360,940 -309,074 -644,934
Technical result for non-life insurance operations 38,965 28,429 72,397 58,293 114,236
Non-technical account
Investment income 7,652 9,577 12,115 15,639 25,068
Investment charges -634 -510 -1,586 -1,042 -2,188
Unrealised gains/losses on investment assets -25,638 -823 -43,316 17,604 19,008
Result of asset management 6 -18,620 8,244 -32,787 32,201 41,888
Allocated investment return transferred to technical account -3,068 -1,500 -5,409 -3,000 -8,900
Other non-technical income 2,725 1,880 3,555 2,725 6,750
Other non-technical expenses -2,030 -663 -2,747 -1,101 -2,609
Profit before appropriations and tax 17,972 36,390 35,009 89,118 151,365
Appropriations 0 0 0 0 0
Profit before tax 17,972 36,390 35,009 89,118 151,365
Tax on profit for the period -3,966 -7,143 -7,990 -19,516 -31,385
Net profit for the period 14,006 29,247 27,019 69,602 119,980
Basic and diluted earnings per share, SEK 12 0.70 1.46 1.35 3.48 6.00

STATEMENT OF COMPREHENSIVE INCOME

KSEK Apr-Jun
2022
Apr-Jun
2021
Jan-Jun
2022
Jan-Jun
2021
Jan–Dec
2021
Net profit for the period 14,006 29,247 27,019 69,602 119,980
Items that will be reclassified to profit or loss
Translation differences in foreign operations -363 -139 -266 -11 701
Comprehensive income for the period 13,643 29,108 26,753 69,591 120,681

BALANCE SHEET

KSEK Note 30 Jun
2022
31 Dec
2021
30 Jun
2021
Assets
Intangible assets 19,156 22,545 26,766
Investment assets 7 721,202 682,621 655,522
Reinsurer's share of technical provisions 4,197 3,811 4,129
Receivables 99,813 81,052 83,370
Property, plant & equipment 1,412 1,911 2,409
Cash and bank balances 620,518 613,139 536,600
Other assets 437 388 2,810
Prepaid expenses and accrued income 222,956 210,418 191,853
Total assets 1,689,691 1,615,885 1,503,459
Equity and liabilities
Equity
Share capital 30,000 30,000 30,000
Fair value reserve -1,043 -777 -1,489
Retained earnings 298,246 178,210 177,209
Net profit for the period 27,019 119,980 69,602
Total equity 354,222 327,413 275,322
Untaxed reserves
Contingency reserve 488,118 488,118 488,118
Total untaxed reserves 488,118 488,118 488,118
Liabilities
Technical provisions, net of outward reinsurance 8 632,103 615,900 572,736
Other liabilities 190,333 164,926 146,846
Accrued expenses and deferred income 24,915 19,528 20,437
Total liabilities 847,351 800,354 740,019
Total equity and liabilities 1,689,691 1,615,885 1,503,459

STATEMENT OF CHANGES IN EQUITY

KSEK Share
capital
Fair value
reserve
Retained
earning
s
Net profit
for the
period
Total
equity
Equity, 1 January 2022 30,000 -777 178,210 119,980 327,413
Net profit for the period 27,019 27,019
Translation differences -266 -266
Comprehensive income for the period -266 27,019 26,753
Previous year's profit brought forward 119,980 -119,980 0
Owner transactions
Option premiums received/repurchased 56 56
Equity, 30 June 2022 30,000 -1,043 298,246 27,019 354,222
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
Equity, 1 January 2021 30,000 -1,478 133,837 43,372 205,731
Net profit for the period 69,602 69,602
Translation differences -11 -11
Comprehensive income for the period -11 69,602 69,591
Previous year's profit brought forward 43,372 -43,372 0
Owner transactions
Equity, 30 June 2021 30,000 -1,489 177,209 69,602 275,322

STATEMENT OF CASH FLOWS (INDIRECT METHOD)

KSEK Jan-Jun Jan–Dec Jan-Jun
2022 2021 2021
Operating activities
Profit before tax 35,009 151,365 89,118
Adjustment for non-cash items 49,546 -24,648 -52,457
Income taxes paid -22,500 -13,894 -10,537
Cash flow from operating activities before changes in working capital 62,055 112,823 26,124
Change in operating receivables -12,059 11,035 20,404
Change in operating liabilities 31,000 39,198 25,032
Cash flow from operating activities 80,996 163,056 71,560
Cash flow from investing activities -75,693 173,275 192,735
Cash flow from financing activities 0 -59,000 -60,000
Cash flow for the period 5,303 277,331 204,295
Cash and cash equivalents at the beginning of the year 613,139 328,205 328,205
Cash flow for the period 5,303 277,331 204,295
Exchange differences in cash and cash equivalents 2,076 7,603 4,100
Cash and cash equivalents at end of period 620,518 613,139 536,600

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 interim 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 interim 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.

Apr-Jun 2022
KSEK Personal Safety Product Assistance Not Total
specified
by segment
Gross written premiums 94,546 92,518 104,791 291,855
Premiums earned, net of reinsurance 94,232 91,372 88,297 273,901
Claims incurred, net of reinsurance -8,049 -24,384 -22,076 -54,509
Acquisition costs* -60,612 -50,203 -45,803 -156,618
Gross profit** 25,571 16,785 20,418 62,774
Gross margin*** 27.1% 18.4% 23.1% 22.9%
Administrative expenses -26,877 -26,877
Allocated investment return transferred from non-technical account 3,068 3,068
Technical result 38,965
Result of asset management -18,620 -18,620
Allocated investment return transferred to non-technical account -3,068 -3,068
Other non-technical income 2,725 2,725
Other non-technical expenses -2,030 -2,030
Profit before tax 17,972

Premiums earned, net of reinsurance for the quarter amounted to KSEK 91,494 (92,013) for Solid Försäkring's largest partner in the Personal Safety segment.

Personal Safety Product Assistance Not Total
specified
by segment
91,818 83,158 69,419 244,395
94,221 84,838 62,834 241,893
-10,795 -24,918 -19,932 -55,645
-58,815 -45,261 -29,692 -133,768
24,611 14,659 13,210 52,480
26.1% 17.3% 21.0% 21.7%
-25,551 -25,551
1,500 1,500
28,429
8,244 8,244
-1,500
1,880
-663 -663
36,390
-1,500
1,880

Jan–Jun 2022 KSEK Personal Safety Product Assistance Not specified by segment Total Gross written premiums 195,405 166,423 200,108 561,936 Premiums earned, net of reinsurance 187,499 181,360 173,636 542,495 Claims incurred, net of reinsurance -15,624 -47,672 -51,271 -114,567 Acquisition costs* -120,064 -99,211 -87,988 -307,263 Gross profit** 51,811 34,477 34,377 120,665 Gross margin*** 27.6% 19.0% 19.8% 22.2% Administrative expenses -53,677 -53,677 Allocated investment return transferred from non-technical account 5,409 5,409 Technical result 72,397 Result of asset management -32,787 -32,787 Allocated investment return transferred to non-technical account -5,409 -5,409 Other non-technical income 3,555 3,555 Other non-technical expenses -2,747 -2,747 Profit before tax 35,009

Jan–Jun 2021
KSEK Personal Safety Product Assistance Not Total
specified
by segment
Gross written premiums 183,753 149,653 126,852 460,258
Premiums earned, net of reinsurance 189,655 167,994 119,091 476,740
Claims incurred, net of reinsurance -23,408 -48,071 -40,894 -112,373
Acquisition costs* -117,390 -88,057 -53,706 -259,153
Gross profit** 48,857 31,866 24,491 105,214
Gross margin*** 25.8% 19.0% 20.6% 22.1%
Administrative expenses -49,921 -49,921
Allocated investment return transferred from non-technical account 3,000 3,000
Technical result 58,293
Result of asset management 32,201 32,201
Allocated investment return transferred to non-technical account -3,000 -3,000
Other non-technical income 2,725 2,725
Other non-technical expenses -1,101 -1,101
Profit before tax 89,118

Jan–Dec 2021

KSEK Personal Safety Product Assistance Not
specified
Total
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 Apr-Jun
2022
Apr-Jun
2021
Jan
Jun
Jan-Jun
2021
Jan–Dec
2021
2022
Gross written premiums, geographical specification
Sweden 173,440 159,281 321,110 303,086 646,602
Norway 45,752 40,153 93,329 74,992 170,667
Denmark 22,899 14,700 45,871 29,496 69,978
Finland 12,888 12,247 24,246 24,227 48,669
Rest of Europe 36,876 18,014 77,380 28,457 77,505
Total gross written premiums 291,855 244,395 561,936 460,258 1,013,421
Outward reinsurance premiums -4,397 -5,648 -10,652 -11,298 -27,605
Change in provision for unearned premiums and unexpired risks -13,043 2,941 -8,571 27,328 -4,634
Reinsurers' share of change in provision for unearned premiums and unexpired risks -514 205 -218 452 109
Total premiums earned, net of reinsurance 273,901 241,893 542,495 476,740 981,291

Note 4 Claims incurred, net of reinsurance

KSEK Apr-Jun
2022
Apr-Jun
2021
Jan
Jun
Jan-Jun
2021
Jan–Dec
2021
2022
Claims paid, net of outward reinsurance -56,901 -53,911 -120,967 -112,554 -232,902
Reinsurers' share of Claims paid 1,920 1,505 6,812 2,975 6,325
Change in Provision for claims outstanding, net of outward reinsurance 472 -3,239 -964 -2,794 -4,434
Reinsurers' share of Change in provision for claims outstanding 0 0 552 0 -10
Total claims incurred, net of reinsurance -54,509 -55,645 -114,567 -112,373 -231,021

Note 5 Operating expenses

KSEK Apr-Jun
2022
Apr-Jun
2021
Jan
Jun
Jan-Jun
2021
Jan–Dec
2021
2022
Specification of income statement item operating expenses
Acquisition costs* -162,706 -132,026 -318,150 -248,648 -539,232
Change in item Deferred acquisition costs* 5,835 -2,083 8,686 -11,177 2,920
Administrative expenses -26,877 -25,551 -53,677 -49,921 -110,250
Operating expenses and profit-sharing in outward reinsurance* 253 341 2,201 672 1,628
Total income statement item operating expenses -183,495 -159,319 -360,940 -309,074 -644,934
Other operating expenses
Claims adjustment costs included in Claims paid -5,496 -5,603 -10,841 -11,546 -23,030
Financial management costs included in Investment charges -300 -300 -600 -600 -1,200
Total other operating expenses -5,796 -5,903 -11,441 -12,146 -24,230
Total operating expenses -189,291 -165,222 -372,381 -321,220 -669,164

* Marked items comprise total acquisition costs

Note 6 Result of asset management

KSEK Apr-Jun
2022
Apr-Jun
2021
Jan
Jun
2022
Jan-Jun
2021
Jan–Dec
2021
Investment income
Dividends on shares and participating interests 2,119 1,857 2,795 2,220 3,561
Interest income, bonds and other interest-bearing securities 2,197 1,927 4,243 3,719 7,670
Other interest income * 239 856 755 2,314 4,061
Exchange gains (net) 1,703 146 1,946 616 1,468
Capital gains (net) 1,388 4,784 2,366 6,759 8,291
Other 6 7 10 11 17
Total investment income 7,652 9,577 12,115 15,639 25,068
Investment charges -634 -510 -1,586 -1,042 -2,188
Unrealised gains/losses on investment assets recognised through profit or loss
Shares and participating interests -11,619 -1,317 -20,862 16,276 20,057
Bonds and other interest-bearing securities -14,019 494 -22,454 1,328 -1,049
Total unrealised gains/losses on investment assets -25,638 -823 -43,316 17,604 19,008
Result of asset management -18,620 8,244 -32,787 32,201 41,888

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

Note 7 Investment assets

KSEK 30 Jun 31 Dec 30 Jun
2022 2021 2021
Shares and participating interests 87,387 78,788 73,494
Bonds and other interest-bearing securities 612,815 574,581 552,472
Subordinated loans 21,000 29,252 29,556
Total investment assets 721,202 682,621 655,522

Note 8 Technical provisions, net of outward reinsurance

KSEK 30 Jun
2022
31 Dec
2021
30 Jun
2021
Opening balance technical provisions, net of outward reinsurance 615,900 587,764 587,764
Provision for unearned premiums and unexpired risks, gross
Opening balance 555,105 532,931 532,931
Insurance policies written during the period 561,936 1,013,421 460,258
Premiums earned during the period -553,364 -1,008,787 -487,586
Currency effects 5,809 17,540 8,732
Closing balance 569,486 555,105 514,335
Provision for claims outstanding, gross
Opening balance 60,795 54,833 54,833
Settled claims from previous financial years -18,103 -21,940 -18,701
Changes in the expected cost of claims incurred in previous years (run-off result) -3,605 -8,332 -5,535
Provisions for the year 22,672 34,706 27,030
Currency effects 858 1,528 774
Closing balance 62,617 60,795 58,401
Closing balance technical provisions, net of outward reinsurance 632,103 615,900 572,736

Note 9 Pledged assets for own liabilities

KSEK 30 Jun
2022
31 Dec
2021
30 Jun
2021
Policyholders' priority rights
Assets encompassed by policyholders' priority rights 1,343,534 1,296,131 1,193,437
Technical provisions, net -627,906 -612,089 -568,607
Surplus from registered assets 715,628 684,042 624,830

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
30 Jun
2022
31 Dec
2021
30 Jun
2021
Financial assets at fair value through profit or loss
Bonds and other interest-bearing securities 1 633,815 603,833 582,028
Listed shares 1 87,387 78,788 73,494
Total 721,202 682,621 655,522
Financial liabilities at fair value through profit or loss
Derivatives
2 0 -660 -543
Total 0 -660 -543
Assets, KSEK 30 Jun 2022 31 Dec 2021 30 Jun 2021
Amortised
cost*
Fair value
through
profit or
loss
Carrying
amount
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 87,387 87,387 78,788 78,788 73,494 73,494
Other interest-bearing securities 633,815 633,815 603,833 603,833 582,028 582,028
Receivables, direct insurance
and reinsurance
85,149 85,149 81,042 81,042 75,247 75,247
Cash and bank balances and other cash
equivalents
620,571 620,571 613,193 613,193 539,260 539,260
Prepaid expenses and accrued
income
1,814 1,814 1,031 1,031 1,857 1,857
Total financial assets 705,720 723,016 1,428,736 694,235 683,652 1,377,887 614,507 657,379 1,271,886
Non-financial assets 260,955 237,998 231,573
Liabilities, KSEK 30 Jun 2022 31 Dec 2021 30 Jun 2021
Amortised
cost*
Fair value
through
profit or loss
Carrying
amou
nt
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
181,119 181,119 158,712 158,712 142,363 142,363
Derivatives 660 660 543 543
Other liabilities 9,214 9,214 5,554 5,554 3,940 3,940
Total financial liabilities 190,333 0 190,333 164,266 660 164,926 146,303 543 146,846
Non-financial liabilities 657,018 635,428 593,173

* 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 a weighted average number of ordinary shares outstanding for the period. The average number of shares between January and June 2022 amounted to 20,000,000 with a quotient value of SEK 1.5 (1.5). There was no dilutive effect as per 30 June 2022.

Apr-Jun
2022
Apr-Jun
2021
Jan
Jun
2022
Jan-Jun
2021
Jan–Dec
2021
Net profit for the period, KSEK 14,006 29,247 27,019 69,602 119,980
Average number of shares outstanding in the period 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000
Basic and diluted earnings per share*, SEK 0.70 1.46 1.35 3.48 6.00

* All periods have been calculated based on the current number of shares in Solid Försäkring, i.e. 20,000,000 shares. The number of shares increased from 30,000 to 20,000,000 due to a share split in August 2021.

Meeting for investors, analysts and the media in connection with publication of the interim report

The company will not arrange a webcast teleconference in connection with the publication of the six-month report, but Marcus Tillberg, CEO and Sofia Andersson, CFO, will be available on the reporting date from 8:00 a.m. for virtual meetings with investors, analysts and the media.

Interim reports

The complete January–June 2022 interim 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 and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact persons set out below, on 21 July 2022 at 7:30 a.m. CEST.

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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