Protector Forsikring

Earnings Release • Oct 15, 2018

Profit warning

Profit warning

Protector Forsikring ASA will herby inform that the company will book a significant reserve loss as well as a strengthening of the reserves for the first and second quarter in 2018 related to the Change of Ownership insurance. The loss is mainly related to the bug Ctenolepisma longicaudata (known as gray silverfish) and totals to MNOK 146.

The background for the reserve is the increasing presence of the bug in Norwegian homes. Today's practice is based on the assumption that the presence of gray silverfish can lead to a reduced value of the property.

Protector and a number of other industry players are about to challenge this practice. Gray silverfish is not harmful to people, animals or buildings. The increasing presence of the insect will most likely be regarded as normal in Norwegian homes in the near future.

The company has chosen to book the reserve loss in accordance with the precautionary principle.

New measures beyond what has previously been communicated will be carried out within the Change of Ownership insurance.

Other preliminary Q3-results shows;

reserve gains on products in Commercial Norway, Sweden and Denmark which leads to a reserve gain for own account at appr. MNOK 60.

Q3 will then end at a combined ratio for own account at appr. 118%. Combined ratio for own account YTD at appr. 104% and a YTD profit before tax at appr. MNOK 9. 

Additional information will be provided in connection with the presentation of the Q3 results on Friday, October 26, 2018.

Sverre Bjerkeli

CEO Protector Forsikring ASA

For more information about gray silverfish, please see the appendix.