Protector Forsikring

Earnings Release • Jan 21, 2021

Update on volume growth

Update on volume growth

Referring to the stock exchange announcement dated January 7th, where we gave notice of an update on the January 1st renewal date and the premium growth for 2020.

Historically, the renewal date January 1st has been of significant impact on Protectors premium growth and still about 40% of our annual premium renews at this date. As most of our growth currently comes from outside Scandinavia, the January 1st renewal date will gradually become less important.

Q4 2020; volume growth of 33% (30% in local currencies)

The fourth quarter of 2020, which is a rather small one, resulted in a premium growth relative to last year at 33% (30% in local currencies). The growth is driven by the UK, Sweden and Norway. We recognize that the unusually high client churn which we have encountered in 2020, has come down to normal levels throughout Q4. Furthermore, premium growth is supported by good new sales and Nordic price increases. For the full year 2020 gross written premium came in at MNOK 5 516, up 8% (2% in local currencies) relative to 2019.

January 1st, 2021; 5% volume growth (4% in local currencies)

Entering 2021 we have withdrawn from workers’ compensation (WC) covers within the Norwegian health and welfare industry due to the Government’s decision to define Covid-19 as an occupational disease within the WC cover. Moreover, we have withdrawn from WC as a single product in Denmark due to a significant capital consumption on this product combined with poor profitability. Above mentioned deliberate actions entails a premium reduction at about MNOK 200, or 9%. Despite this, we have achieved a premium growth relative to January last year at 5% (4% in local currencies).

The premium growth is driven by continued high price increases and a significantly reduced client churn. New sales are somewhat lower than normal.

Good underlying realities and 10% growth expected in 2021

As close to 100% of clients covered by above mentioned WC covers renews at January 1st, we are close to finalizing client exits within WC. This naturally implies an improved Nordic premium development for the rest of the year. Adding the fact that UK premiums to a greater extent fall due in Q2 and following quarters, Protector expect a premium growth in 2021 at about 10% in local currencies.

More information will be given on February 4th in connection with the presentation of the Q4 results and on our planned capital market day March 10th.

Oslo, January 21st 2021

Protector Forsikring ASA