Protector Forsikring

Earnings Release • Feb 2, 2022

4TH QUARTER AND PRELIMINARY FULL YEAR 2021 PROTECTOR FORSIKRING ASA

(UNAUDITED) 2 FEBRUARY 2022

Highlights Q4 and preliminary full year 2021

A strong quarter and full year result

Protector Forsikring ASA recorded a profit of NOK 238.8m (NOK 442.2m) for the quarter. The result is driven by a strong return on investments and a good technical result. The return on investments was NOK 237.4m (NOK 448.5m) or 1.7% (3.4%). The technical result was NOK 101.2m (NOK 53.6m) corresponding to a combined ratio of 91.6% (95.4%).

In Q4, gross written premiums increased by 14% in local currencies. The growth is mainly driven by Denmark and Sweden. Furthermore, premium growth is supported by continued price increases and a low client churn. For the full year, gross written premium came in at MNOK 5,950.6, up 8% (10% in local currencies) relative to 2020.

The Covid-19 pandemic had no measurable impact on the net claims ratio in Q4, and a positive impact of 0.8 percentage point for the full year. The impact was primarily related to motor insurance.

In 2021, the company recorded a profit of NOK 1,204.0m (NOK 981.6m). The return on investments was NOK 954.5m (NOK 969.6m) or 6.8% (8.0%). The technical result was NOK 594.4m (NOK 246.6m) corresponding to a combined ratio of 87.3% (94.8%).

The Board has utilised its authorisation granted by the Annual General Meeting in 2021 and has resolved to distribute a special dividend of NOK 247.1m, corresponding to NOK 3.00 per share. In addition, the Board proposes an ordinary dividend for 2021 of NOK 576.6m or NOK 7.00 per share.

The SCR-ratio was 206% (190%) year-end, post dividends.

Q4 2021

CR 91.6%, 8% growth

Q4 2021 shows following development compared to Q4 2020:

• Premium growth of 8% (33%)
• Net combined ratio of 91.6% (95.4%)
• Net return on investments NOK 237.4m (NOK 448.5m) or 1.7% (3.4%)
• Profit for the period 238.8m (NOK 442.2m)

FY 2021

CR 87.3%, 8% growth

FY 2021 shows following development compared to FY 2020:

• Premium growth of 8% (8%)
• Net combined ratio of 87.3% (94.8%)
• Net return on investments NOK 954.5m (NOK 969.6m) or 6.8% (8.0%)
• Profit for the period NOK 1,204. (NOK 981.6)
• Solvency margin 206% (190%)

Financial highlights and key ratios

NOKm		Q4 2021	Q4 2020	FY 2021	FY 2020
Gross premiums written		785,9	728,9	5 950,6	5 516,3
Earned premiums, net of reinsurance		1 268,9	1 189,0	4 920,7	4 613,5
Claims incurred, net of reinsurance		(1 026,9)	(996,3)		(3 810,1) (3 901,4)
Sales cost		(94,7)	(93,3)	(361,7)	(331,3)
Administration cost		(67,3)	(71,0)	(256,6)	(221,3)
Commission from reinsurer		26,6	26,2	130,7	81,6
Other insurance related income/expenses		(5,3)	(0,9)	(28,7)	5,5
Technical result		101,2	53,6	594,4	246,6
Other income/costs		(15,3)	(19,1)	(56,4)	(67,0)
Net financial income		220,1	413,6	878,3	865,2
Profit before tax		305,9	448,0	1 416,3	1 044,8
Tax		(42,3)	(36,2)	(251,7)	(160,0)
Discontinued operations		(0,0)	31,0	67,4	94,3
Net comprehensive income		(24,9)	(0,5)	(28,1)	2,4
Profit for the period		238,8	442,2	1 204,0	981,6
Claims ratio, net of reinsurance	(1)	80,9 %	83,8 %	77,4 %	84,6 %
Expense ratio, net of reinsurance	(2)	10,7 %	11,6 %	9,9 %	10,2 %
Combined ratio, net of reinsurance	(3)	91,6 %	95,4 %	87,3 %	94,8 %
Gross claims ratio	(4)	85,6 %	82,3 %	77,8 %	82,2 %
Gross expense ratio	(5)	11,0 %	11,7 %	10,8 %	10,3 %
Gross combined ratio	(6)	96,6 %	94,0 %	88,5 %	92,5 %
Retention rate	(7)	86,4 %	84,7 %	85,6 %	85,8 %
Earnings per share	(8)	3,2	5,4	15,0	12,0

Premiums

In Q4, gross premiums written increased by 8% or NOK 57.0m to a total of NOK 785.9m. The growth In local currencies was 14% and is mainly driven by Denmark and Sweden. We recognize that the low client churn which we have encountered in the first three quarters has remained throughout Q4. Furthermore, premium growth is supported by price increases above claims inflation.

The growth per country was;

Gross premiums written (NOKm)	Q4 2021	Q4 2020		Growth
Norway	122,1	133,8	-11,6	-9 %
Sweden	275,8	249,4	26,4	11 %
Denmark	91,8	59,7	32,1	54 %
UK	291,4	276,9	14,5	5 %
Finland	4,9	9,2	-4,3	-47 %
Total	785,9	728,9	57,0	8 %

In 2021, gross premiums written totalled NOK 5,950.6m, representing 8% growth (10% in local currencies). The growth in the Nordics was 3% (NOK 143.9m) and in the UK 22% (NOK 290.4m). In local currencies the growth was 6% in the Nordics and 24% in the UK. The renewal rate for the total portfolio was 90.3% (83.0%) supported by price increases of 8.9%.

Protector has as earlier communicated, withdrawn from worker's 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, Protector has withdrawn from WC as a single product in Denmark due to capital consumption on this product combined with poor profitability. These deliberate measures represent a premium reduction of approximately NOK 191m or 3.5% in 2021.

Growth per country is presented in the table below.

Gross premiums written (NOKm)	FY 2021	FY 2020		Growth
Norway	1415,0	1382,6	32,4	2 %
Sweden	1820,5	1607,4	213,1	13 %
Denmark	918,7	972,5	-53,8	-6 %
UK	1618,1	1327,8	290,4	22 %
Finland	178,2	226,0	-47,8	-21 %
Total	5950,6		5516,3 434,2	8 %

Results

In Q4 the profit for the quarter totalled NOK 238.8m, against NOK 442.2m in Q4 2020. The technical result was NOK 101.2m (NOK 53.6m), corresponding to a net combined ratio of 91.6% (95.4%). The technical result was driven by strong results in Sweden.

The net combined ratio by country is provided in the table below.

Net combined ratio	Q4 2021	Q4 2020
Norway	96,6 %	76,8 %
Sweden	72,6 %	86,2 %
Denmark	99,1 %	145,5 %
UK	108,4 %	84,8 %
Finland	67,4 %	109,1 %
Total	91,6 %	95,4 %

In Q4, the company had run-off losses of 4.3% compared to run-off-losses of 3.5% in Q4 2020. The run-off losses is mainly driven by Norway and the UK. In Sweden the run-off-gains continued.

The claims ratio for own account is still improving and decreased from 83.8% in Q4 2020 to 80.9 % in Q4 2021. Price increases and other profitability measures drives the claims ratio downwards. The large loss level was as in Q4 2020 higher than normal - mainly driven by the UK, which was hit by several large claims, including the storm Arwen.

There were no measurable positive effects from Motor in Q4 related to Covid-19 as driving pattern is back to normal. In the same period last year, Covid-19 had a positive impact on the net claims ratio of 3 percentage points, mainly related to motor insurance.

The net expense ratio was 10.7%, down from 11.6%, driven by lower personnel costs.

In 2021 the profit totalled NOK 1,204.0m against NOK 981.6m in 2020. The technical result was NOK 594.4m (NOK 246.6m), corresponding to a net combined ratio of 87.3% (94.8%). The technical result is driven by strong results in the Nordic countries. The UK came in weaker due to an above normal number of large and medium sized claims.

The net combined ratio for the full year, by country, is provided in the table below:

Net combined ratio	FY 2021	FY 2020
Norway	89,2 %	86,3 %
Sweden	73,0 %	92,7 %
Denmark	89,8 %	124,7 %
UK	103,3 %	84,9 %
Finland	82,1 %	77,5 %
Total	87,3 %	94,8 %

The claims ratio for own account was 77.4%, down from 84.6 % in 2020. Price increases and other profitability measurers drives the claims ratio downwards. The large loss ratio was somewhat lower than normal and the Covid-19 pandemic had a positive estimated impact at approximately 0.8 percentage points. In 2021 the company had run-off losses of 0.3% against 2.2% in run-off-losses in 2020

The net expense ratio was 9.9%, down from 10.2% due to higher reinsurance commissions. The gross expense ratio increased slightly due to higher bonus costs (significant part linked to the share price development) and broker commissions. Growth in the UK drives broker commissions up. On the other hand, the relative UK cost level continue to decline.

Discontinued operations

In Q4, the technical result for discontinued operations (change of ownership insurance) was NOK -17.2m (NOK -2.2m) and the profit for the quarter was NOK 0.0m (NOK 31.0m). In Q4, the company continued to sell change of ownership insurance due to existing agreements with some real estate brokers. These agreements are terminated as from 2022 due to new legislation coming into force.

In 2021, the technical result was NOK 10.8m (NOK 14.2m). The profit for the period was NOK 67.4m (NOK 94.3m) driven by a strong return on investments.

Investment return

The net investment portfolio amounted to a total of NOK 14,310m at 31 December 2021, up 6.0% compared to the portfolio at the end of 2020.

In Q4, investment activities yielded a return of NOK 237.4m or 1.7%, compared to a return of NOK 448.5m or 3.4% in Q4 2020. Equities accounted for a NOK 211.4m gain (10.4%) against a NOK 390.4m gain (27.7%) in Q4 2020. The return on the fixed income portfolio totalled NOK 26.0m, or 0.2%. Corresponding numbers for Q4 2020 is NOK 58.1m, or 0.5%.

In 2021, the investment result was NOK 954.5m (6.8%) compared to a return of NOK 969.6m or 8.0% in 2020. Equities accounted for a NOK 669.5m gain (38.9%) against a NOK 433.8m gain (34.9%) in 2020. The return on the fixed income portfolio totalled NOK 285.1m (2.3%) against NOK 535.7m (5.0%) in 2020.

At the end of 2020 about 30% of our total financial positions were allocated to High Yield. By the end of 2021, Protector has slightly decreased this allocation to about 24 %.

At the end of 2021, 15.1% of Protector's financial assets were invested in equities, against 13.5% year-end 2020.

Equity and capital position

At year end, the volatility adjusted SCR-ratio using the standard formula was 206% post dividends, up from 190% year-end 2020. The company's long term objective is to maintain a SCR-ratio (calculated according to the Solvency II regulations) above 150 %.

In December, Protector Forsikring ASA successfully placed a subordinated loan of NOK 350m. The terms of the loan comply with existing and expected future requirements for subordinated debt eligible as restricted Tier 1 capital. NOK 208m of the proceeds from the issue has been used for a buy-back of the NOK 350m Tier1 bond, which has the first call date in March 2022. The NOK 142m increase in restricted Tier 1 capital has a 6 percentage point positive effect on the SCR-ratio.

The company's equity amounted to NOK 3,582.1m, an increase of NOK 551.6m compared to the equity at the end of 2020. Dividend payments during 2021 have reduced the equity by NOK 659.5m whereof NOK 137.6m was paid out in Q4.

Protector has a BBB+ rating from A.M. Best.

Dividend

Based on the company's strong financial position, competitive position in the market and dividend policy the Board has resolved to distribute a special dividend of NOK 247.1 million, corresponding to NOK 3.00 per share. The resolved dividend is included in other equity and the payment will take place on 16 February 2022.

Furthermore, the Board proposes to the Annual General Meeting to pay a dividend of NOK 7.00 per share (NOK 576.6 million) for the fiscal year 2021. The regular dividend corresponds to a pay-out ratio of 48 per cent of the company's profit after tax. The proposed dividend is included in other equity.

Prospects

Price increases above claims inflation and other profitability measures improve the claims ratio. The underlying profitability is good and with continued profitability measurers the technical result is expected to remain on a good level .

The Covid-19 situation has to this point had a limited effect on the company's insurance business. Products in our portfolio that may be adversely affected by Covid-19 are limited. The situation may still lead to some increase in pay-outs within products like other illness and business interruption, as well as extraordinary claims inflation on property damage (PDBI & motor). Reduced economic activity can still counteract the potential negative factors.

Entering 2022, the company has experienced a continuing low client churn. In January , our largest inception month, the company experienced 11% growth in local currencies supported by price increases above claims inflation. However the forward looking market conditions are still uncertain, and do still depend on how Covid-19 evolves.

Claims development, and the inherent volatility of capital markets, continue to be the most important risk factors that could affect the company's profit in 2022.

Oslo, February 2 nd 2022

The Board of Directors of Protector Forsikring ASA

Income statement

NOKm	Q4 2021	Q4 2020	FY 2021	FY 2020
Premium income
Gross written premiums	785,9	728,9	5 950,6	5 516,3
Change in provisions for unearned premiums	682,3	675,5	(204,5)	(136,8)
Gross premiums earned	1 468,3	1 404,5	5 746,1	5 379,6
Reinsurers' share of earned premiums	(199,4)	(215,5)	(825,3)	(766,0)
Earned premiums, net of reinsurance	1 268,9	1 189,0	4 920,7	4 613,5
Other insurance-related income	1,3	7,4	8,7	19,5
Gross claims incurred	(1 256,5)	(1 155,3)		(4 468,4) (4 424,6)
Reinsurers' share of claims incurred	229,5	159,0	658,3	523,2
Claims incurred, net of reinsurance	(1 026,9)	(996,3)		(3 810,1) (3 901,4)
Operating expenses
Sales costs	(94,7)	(93,3)	(361,7)	(331,3)
Administration costs	(67,3)	(71,0)	(256,6)	(221,3)
Commission from reinsurers	26,6	26,2	130,7	81,6
Total operating expenses, net of reinsurance	(135,4)	(138,2)	(487,6)	(471,0)
Other insurance-related expenses	(6,7)	(8,3)	(37,4)	(14,0)
Technical result	101,2	53,6	594,4	246,6
Income from associated companies	(2,1)	-	10,8	-
Interest income and dividend from financial assets	116,1	56,0	331,7	247,4
Changes in value on investments	31,0	312,1	(21,8)	550,4
Realised gain and loss on investments	83,6	88,8	620,6	126,1
Administration expenses related to investments	(8,4)	(43,3)	(62,9)	(58,7)
Net income from financial assets	220,1	413,5	878,3	865,2
Other income	0,5	4,9	2,0	0,9
Other expenses	(15,8)	(24,0)	(58,4)	(67,9)
Other income/expenses	(15,3)	(19,1)	(56,4)	(67,0)
Non-technical result	204,8	394,4	821,9	798,2
Profit before tax	305,9	448,0	1 416,3	1 044,8
Tax	(42,3)	(36,2)	(251,7)	(160,0)
Discontinued operations	(0,0)	31,0	67,4	94,3
Profit before components of comprehensive income	263,6	442,7	1 232,1	979,2
Actuarial gain and loss from defined benefit pension plans	-	(0,5)	(1,0)	(0,5)
Currency changes from foreign enterprise	(33,2)	(0,4)	(36,5)	3,7
Taxes on components of comprehensive income	8,3	0,4	9,4	(0,8)
Profit for the period	238,8	442,2	1 204,0	981,6
Earnings per share	3,20	5,41	14,96	11,96
Earnings per share, diluted	3,20	5,41	14,96	11,96

Balance Sheet

NOKm	31.12.2021	31.12.2020
Assets
Intangible fixed assets
Other intangible fixed assets	73,3	53,7
Total intangible fixed assets	73,3	53,7
Financial assets
Shares in associated companies	127,3	-
Shares	1 824,4	1 601,7
Securities, bonds etc	9 179,3	8 574,7
Financial derivatives	94,1	47,9
Bank deposits	1 935,5	1 812,1
Total financial assets	13 160,7	12 036,4
Reinsurers share of gross technical provisions
Reinsurers share of gross premium provisions	177,1	159,0
Reinsurers share of gross claims provisions	2 972,2	1 380,8
Total reinsurers share of gross technical provisions	3 149,3	1 539,8
Receivables
Policyholders	523,2	313,4
Other receivables	95,3	112,3
Total receivables	618,5	425,6
Other assets
Tangible fixed assets	34,0	30,4
Cash and bank deposits	300,0	263,2
Total other assets	333,9	293,6
Total prepaid expenses	462,5	505,3
Assets discontinued operations	1 448,0	1 895,7
Total assets	19 246,3	16 750,3

Balance Sheet

NOKm	31.12.2021	31.12.2020
Equity and liabilities
Shareholders' equity
Share capital [82.500.000 shares]	82,5	86,2
Own shares	(0,1)	(4,3)
Other paid-in equity	267,7	267,7
Total paid-in equity	350,0	349,6
Earned equity
Natural perils capital	97,7	70,2
Guarantee scheme provision	78,2	84,9
Fund for valuation differences	10,0	-
Other equity	3 046,2	2 525,9
Total earned equity	3 232,1	2 680,9
Total equity	3 582,1	3 030,5
Subordinated loan capital	1 384,7	1 473,0
Technical provisions
Provisions for unearned premiums	1 575,5	1 396,7
Provisions for claims	8 404,1	7 788,4
Total technical provisions	9 979,6	9 185,1
Provisions for other risks and liabilities
Pension liabilities	-	17,9
Current tax liability	191,2	103,3
Deferred tax liability	121,6	124,5
Total provisions for other risks and liabilities	312,8	245,7
Liabilities
Liabilities in connection with insurance	73,4	43,1
Liabilities in connection with reinsurance	2 238,3	934,0
Financial derivatives	26,1	61,4
Other liabilities	286,6	250,5
Total liabilities	2 624,4	1 289,0
Incurred expenses and prepaid income
Other incurred expenses and prepaid income	528,9	415,4
Total incurred expenses and prepaid income	528,9	415,4
Liabilites discontinued operations	833,8	1 111,6
Total equity and liabilities	19 246,3	16 750,3

Cash flow statement

NOKm	Q4 2021	Q4 2020	FY 2021	FY 2020
Cash flow from operations
Premiums paid	1 145,7	975,1	5 884,3	5 888,0
Claims paid	(1 113,2)	(1 138,0)	(3 934,5)	(4 558,2)
Paid reinsurance	(78,4)	40,8	(351,8)	208,5
Paid operating expenses including commissions	(34,7)	(49,2)	(440,1)	(473,7)
Interest / dividend income	124,1	80,7	358,1	270,1
Net payments from financial instruments	143,3	233,8	(372,1)	(1 337,1)
Payable tax	17,3	11,1	(173,9)	(39,4)
Net cash flow from operations	204,0	154,3	969,9	(41,7)
Cash flow from investment activities
Investments in fixed assets	(10,5)	0,3	(52,8)	(15,8)
Net cash flow from investment activities	(10,5)	0,3	(52,8)	(15,8)
Cash flow from financial activities
Dividend paid	(137,6)		(659,5)
Net payment on subordinated loan capital	140,5	229,8	(88,4)	229,8
Interest payments on subordinated loan capital	(16,5)	(13,5)	(61,6)	(61,7)
Net cash flow from financial activities	(809,5)	216,2	(809,5)	168,1
Net cash flow for the period	179,9	370,8	107,6	110,5
Net change in cash and cash equivalents	179,9	370,8	107,6	110,5
Cash and cash equivalents opening balance	2 227,7	1 929,1	2 312,1	2 155,1
Effects of exchange rate changes on cash and cash equivalents	(0,4)	12,2	(12,5)	46,5
Cash and cash equivalents closing balance	2 407,2	2 312,1	2 407,2	2 312,1

Statement of changes in equity

NOKm	Share Capital	Own shares	Other paid-in equity	Natural perils capital	Guarantee scheme provision	Fund for valuation differences	Other equity	Total
Equity at 31.12.2019	86,2	(4,4)	267,7	76,9	89,2		1 503,8	2 019,3
Profit for the period				3,9	(0,7)		(388,1)	(384,9)
Currency changes							(4,1)	(4,1)
Equity at 31.03.2020	86,2	(4,4)	267,7	80,8	88,5		1 111,7	1 630,4
Profit for the period				2,2	(0,9)		579,1	580,4
Currency changes							21,0	21,0
Own shares		0,1						0,1
Equity at 30.06.2020	86,2	(4,3)	267,7	83,0	87,6		1 711,7	2 231,9
Profit for the period				(1,9)	(1,7)		347,4	343,8
Currency changes							(1,1)	(1,1)
Equity at 30.09.2020	86,2	(4,3)	267,7	81,1	85,9		2 057,9	2 574,6
Profit for the period				(11,0)	(1,0)		454,3	442,2
Currency changes							13,7	13,7
Equity at 31.12.2020	86,2	(4,3)	267,7	70,2	84,9		2 525,9	3 030,5
Profit for the period	-		-	6,3	(1,3)		567,8	572,8
Currency changes							(20,4)	(20,4)
Own shares		0,4					1,3	1,7
Equity at 31.03.2021	86,2	(3,8)	267,7	76,4	83,6		3 074,5	3 584,5
Profit for the period	(3,7)		-	9,0	(2,1)		260,4	267,3
Dividend paid							(384,4)	(384,4)
Currency changes							10,8	10,8
Own shares		3,7					4,9	5,0
Equity at 30.06.2021	82,5	(0,1)	267,7	85,4	81,5	-	2 966,2	3 483,2
Profit for the period	-		-	11,7	(1,8)	12,3	103,0	125,1
Dividend paid							(137,5)	(137,5)
Currency changes							(3,6)	(3,6)
Own shares		-					-	-
Equity at 30.09.2021	82,5	(0,1)	267,7	97,1	79,7	12,3	2 928,0	3 467,2
Profit for the period	-		-	0,6	(1,5)	(2,3)	242,0	238,8
Dividend paid							(137,6)	(137,6)
Currency changes							13,2	13,2
Own shares		-					0,5	0,5
Equity at 31.12.2021	82,5	(0,1)	267,7	97,7	78,2	10,0	3 046,2	3 582,1

Notes

Accounting principles

These interim accounts have been prepared in accordance with the Financial Statement Regulation for Non-life Insurance Companies (Forskrift om årsregnskap for skadeforsikringsselskaper) and IAS 34 and in line with the accounting principles described in the annual report for 2020. The company's financial statements are prepared in accordance with the Norwegian Accounting Act, Financial Statement Regulation for Non-life Insurance Companies and generally accepted accounting principles. For further information, please see the 2020 annual report.

Segment information

Protector Forsikring ASA's operations comprise the segments Norway, Sweden, Denmark, Finland and the UK. The segments are evaluated regularly by Protector's executive management based on financial and operational information specially prepared for each segment for the purpose of following up performance and allocating necessary resources.

Quarter

		Norway		Sweden		Denmark		UK		Finland
NOKm		Q4 2021	Q4 2020	Q4 2021	Q4 2020	Q4 2021	Q4 2020	Q4 2021	Q4 2020	Q4 2021	Q4 2020
Gross premiums written		122,1	133,8	275,8	249,4	91,8	59,7	291,4	276,9	4,9	9,2
Gross premiums earned		351,2	358,3	442,4	411,5	230,6	251,5	384,5	325,9	59,6	57,2
Gross claims incurred		(343,4)	(265,8)	(256,5)	(282,1)	(248,6)	(328,8)	(369,7)	(221,1)	(38,2)	(57,6)
Earned premiums, net of reinsurance		312,9	320,1	379,2	357,3	199,3	221,5	324,1	238,5	53,3	51,5
Other insurance related income		0,8	1,7	0,2	0,0	0,0	0,0	0,0	5,2	0,3	0,4
Claims incurred, net of reinsurance		(277,0)	(230,6)	(234,5)	(253,9)	(178,0)	(294,2)	(303,3)	(165,0)	(34,2)	(52,5)
Sales cost		(14,7)	(18,9)	(37,7)	(37,1)	(6,1)	(5,9)	(34,9)	(30,2)	(1,3)	(1,1)
Administration cost		(14,7)	(15,7)	(18,3)	(25,0)	(15,3)	(15,3)	(16,5)	(13,0)	(2,5)	(2,0)
Commission from reinsurer		4,1	19,5	15,1	7,9	2,0	(6,8)	3,4	6,1	2,0	(0,6)
Other insurance related expenses		(2,1)	(4,6)	(0,3)	(0,2)	(2,6)	(2,5)	(1,4)	(0,7)	(0,3)	(0,3)
Technical result		9,4	71,5	103,7	49,1	(0,7)	(103,2)	(28,5)	40,8	17,3	(4,6)
Other income/costs		(14,6)	(18,9)	(0,1)	(0,2)	(0,3)	(0,0)	(0,2)	0,0	(0,1)	(0,1)
Net financial income		207,0	391,6	6,5	17,2	2,1	0,6	3,9	1,5	0,6	2,7
Profit before tax		201,7	444,3	110,0	66,1	1,2	(102,7)	(24,8)	42,3	17,8	(2,0)
Claims ratio, net of reinsurance	(1)	88,5 %	72,1 %	61,8 %	71,1 %	89,3 %	132,8 %	93,6 %	69,2 %	64,1 %	102,0 %
Expense ratio, net of reinsurance	(2)	8,1 %	4,7 %	10,8 %	15,2 %	9,8 %	12,7 %	14,8 %	15,6 %	3,3 %	7,2 %
Combined ratio, net of reinsurance	(3)	96,6 %	76,8 %	72,6 %	86,2 %	99,1 %	145,5 %	108,4 %	84,8 %	67,4 %	109,1 %
Gross claims ratio	(4)	97,8 %	74,2 %	58,0 %	68,5 %	107,8 %	130,7 %	96,2 %	67,8 %	64,1 %	100,7 %
Gross expense ratio	(5)	8,4 %	9,7 %	12,6 %	15,1 %	9,3 %	8,5 %	13,4 %	13,3 %	6,3 %	5,4 %
Gross combined ratio	(6)	106,2 %	83,8 %	70,6 %	83,6 %	117,1 %	139,2 %	109,5 %	81,1 %	70,5 %	106,1 %

(1) Claims incurred, net of reinsurance in % of earned premiums, net of reinsurance

(2) Operating expenses in % of earned premiums, net of reinsurance

(3) Net claims ratio + net expense ratio

(4) Gross claims incurred in % of gross premiums earned

(5) Sales and administration costs in % of gross premiums earned

(6) Gross claims ratio + gross expense ratio

Full year

		Norway			Sweden		Denmark		UK		Finland
NOKm		FY 2021	FY 2020	FY 2021	FY 2020	FY 2021	FY 2020	FY 2021	FY 2020	FY 2021	FY 2020
Gross premiums written		1 415,0	1 382,6	1 820,5	1 607,4	918,7	972,5	1 618,1	1 327,8	178,2	226,0
Gross premiums earned		1 398,3	1 443,4	1 749,3	1 605,2	880,2	983,0	1 460,5	1 131,0	257,8	217,0
Gross claims incurred					(1 088,6) (1 170,5) (1 038,1) (1 269,1)			(904,6) (1 106,0) (1 237,6)	(722,1)	(199,4)	(157,0)
Earned premiums, net of reinsurance		1 245,4	1 292,6	1 512,3	1 401,9	761,4	861,1	1 170,9	863,8	230,7	194,0
Other insurance related income		4,0	5,0	0,4	0,5	0,5	0,4	2,2	8,6	1,7	5,0
Claims incurred, net of reinsurance			(1 021,8) (1 036,2)		(949,2) (1 119,3)	(631,3)		(991,3) (1 027,6)	(611,0)	(180,2)	(143,6)
Sales cost		(56,6)	(66,4)	(138,5)	(141,0)	(27,0)	(22,3)	(135,5)	(97,4)	(4,2)	(4,2)
Administration cost		(49,0)	(58,0)	(75,9)	(63,4)	(46,9)	(43,9)	(74,6)	(48,9)	(10,2)	(7,1)
Commission from reinsurer		16,5	45,2	60,0	24,6	21,1	(16,5)	28,1	23,9	5,1	4,5
Other insurance related expenses		(14,9)	(1,1)	0,8	(1,8)	(13,8)	(5,9)	(8,4)	(2,9)	(1,1)	(2,3)
Technical result		123,5	181,0	409,9	101,4	64,0	(218,3)	(44,8)	136,1	41,8	46,3
Other income/costs		(57,7)	(63,8)	(0,8)	(0,5)	0,0	(1,2)	2,1	(1,8)	(0,0)	0,3
Net financial income		758,3	770,0	98,9	84,1	(1,4)	3,7	6,4	14,8	16,2	(7,5)
Profit before tax		824,2	887,2	508,0	185,0	62,6	(215,7)	(36,4)	149,2	57,9	39,1
Claims ratio, net of reinsurance	(1)	82,1 %	80,2 %	62,8 %	79,8 %	82,9 %	115,1 %	87,8 %	70,7 %	78,1 %	74,0 %
Expense ratio, net of reinsurance	(2)	7,2 %	6,1 %	10,2 %	12,8 %	6,9 %	9,6 %	15,5 %	14,2 %	4,0 %	3,5 %
Combined ratio, net of reinsurance	(3)	89,2 %	86,3 %	73,0 %	92,7 %	89,8 %	124,7 %	103,3 %	84,9 %	82,1 %	77,5 %
Gross claims ratio	(4)	77,8 %	81,1 %	59,3 %	79,1 %	102,8 %	112,5 %	84,7 %	63,8 %	77,3 %	72,3 %
Gross expense ratio	(5)	7,6 %	8,6 %	12,3 %	12,7 %	8,4 %	6,7 %	14,4 %	12,9 %	5,6 %	5,2 %
Gross combined ratio	(6)	85,4 %	89,7 %	71,6 %	91,8 %	111,2 %	119,2 %	99,1 %	76,8 %	82,9 %	77,5 %

Discontinued operations

Protector decided in 2018 to exit the change of ownership insurance (COI) market due to the product's recent years' weak technical performance, and due to the significant uncertainty related to the product's future premium development and profitability. After the decision to exit the COI market, COI is defined as "discontinued operations" in the accounts. Net profit and assets and liabilities associated with COI are presented on separate lines as discontinued operations.

Protector has entered into a 50 % quota share agreement (reinsurance) covering all historical business written until July 1st 2020.

Premium income in Q4 2021 is due to some continued agreements with real estate brokers. These agreements are terminated as from January 1st 2022 when the new Real Property Sale Act enters into force.

NOKm	Q4 2021	Q4 2020	FY 2021	FY 2020
Gross premiums earned	37,8	49,3	188,7	240,4
Reinsurers' share of earned premiums	(3,8)	(5,0)	(18,8)	(71,5)
Earned premiums, net of reinsurance	34,0	44,3	169,9	168,9
Gross claims incurred	(74,0)	(55,5)	(202,2)	(226,2)
Reinsurers' share of claims incurred	26,2	10,4	47,5	76,1
Claims incurred, net of reinsurance	(47,8)	(45,2)	(154,7)	(150,1)
Total operating expenses, net of reinsurance	(1,6)	0,2	1,2	3,2
Other insurance-related income/expenses	(1,8)	(1,5)	(5,6)	(7,8)
Technical result	(17,2)	(2,2)	10,8	14,2
Net income from financial assets	17,4	34,9	76,2	104,4
Other income/expenses	(1,2)	(1,3)	(5,0)	(7,1)
Non-technical result	16,1	33,6	71,2	97,2
Profit before tax	(1,1)	31,5	82,0	111,4
Tax	1,1	(0,5)	(14,6)	(17,1)
Profit for the period	(0,0)	31,0	67,4	94,3

Financial assets, fair value estimation

Financial assets through profit or loss [NOKm]	Currency	Level 1	Level 2	Level 3	Total
Shares	NOK	502,9	1 479,8		1 982,7
Bonds and other fixed income securities	NOK		9 975,8		9 975,8
Cash and cash equivalents	NOK	2 103,5			2 103,5
Derivatives:
Foreign currency contracts	NOK		80,5		80,5
Options	NOK		21,8		21,8
Total assets 31.12.2021	NOK	2 606,4	11 557,8		0,0 14 164,3
Total assets 31.12.2020	NOK	2 279,1	11 209,1		0,0 13 488,1

Financial liabilities at fair value through profit or loss [NOKm]	Currency	Level 1	Level 2	Level 3	Total
Foreign exchange contracts	NOK		(26,1)		(26,1)
Other financial liabilities	NOK	0,0			0,0
Total financial liabilities 31.12.2021	NOK	0,0	(26,1)	0,0	(26,1)
Total financial liabilities 31.12.2020	NOK	(4,7)	(61,4)	0,0	(66,1)

The fair value of listed investments is based on the current sales price. Financial instruments measured at fair value are valued on a daily basis. Directly observable prices in the market are used as far as possible. The valuations for the different types of financial instruments are based on recognised methods and models.

Level 1: Financial instruments valued on the basis of quoted prices for identical assets in active markets

This category encompasses listed equities that over the previous three months have experienced average daily trading equivalent to approximately NOK 20 million or more. Based on this, the equities are regarded as sufficiently liquid to be included at this level. Bonds, certificates or equivalent instruments issued by national governments are generally classified as level 1.

Level 2: Financial instruments valued on the basis of observable market information not covered by level 1

This category encompasses financial instruments that are valued on the basis of market information that can be directly observable or indirectly observable. Market information that is indirectly observable means that the prices can be derived from observable related markets. Level 2 includes shares or equivalent equity instruments for which market prices are available, but where the volume of transactions is too limited to fulfil the criteria in level 1. Shares in this level will normally have been traded during the last month. Bonds and equivalent instruments are generally classified in this level. Foreign exchange derivatives are classified as level 2. Fund investments are generally classified as level 2.

Level 3: Financial instruments valued on the basis of information that is not observable in accordance with level 2

The instrument is included in level 3 if one or more essential data are not based on observable market data.

Solvency Margin

NOKm	31.12.2021	31.12.2020
Total solvency capital requirement	2 081	2 003
Total eligible own funds to meet SCR¹	4 294	3 814
Ratio of eligible own funds to SCR	206 %	190 %
Totalt minimum capital requirement	936	901
Ratio of eligible own funds to MCR	371 %	332 %

¹ The resolved special dividend of NOK 247.1m (NOK 3 per share) and proposed dividend of NOK 576.6m (NOK 7 per share) for the financial year 2021 have been deducted from own funds.

Alternative performance measures and key figures

		Q4 2021	Q4 2020	1.1.-31.12.2021	1.1.-31.12.2020
Gross premiums written ¹
Norway	NOKm	122,1	133,8	1 415,0	1 382,6
Sweden	NOKm	275,8	249,4	1 820,5	1 607,4
Denmark	NOKm	91,8	59,7	918,7	972,5
UK	NOKm	291,4	276,9	1 618,1	1 327,8
Finland	NOKm	4,9	9,2	178,2	226,0
Total premiums written	NOKm	785,9	728,9	5 950,6	5 516,3
Gross premiums earned
Norway	NOKm	351,2	358,3	1 398,3	1 443,4
Sweden	NOKm	442,4	411,5	1 749,3	1 605,2
Denmark	NOKm	230,6	251,5	880,2	983,0
UK	NOKm	384,5	325,9	1 460,5	1 131,0
Finland	NOKm	59,6	57,2	257,8	217,0
Total gross premiums earned	NOKm	1 468,3	1 404,5	5 746,1	5 379,6
Earned premiums, net of reinsurance
Norway	NOKm	312,9	320,1	1 245,4	1 292,6
Sweden	NOKm	379,2	357,3	1 512,3	1 401,9
Denmark	NOKm	199,3	221,5	761,4	861,1
UK	NOKm	324,1	238,5	1 170,9	863,8
Finland	NOKm	53,3	51,5	230,7	194,0
Total earned premiums, net of reinsurance	NOKm	1 268,9	1 189,0	4 920,7	4 613,5
Gross claims incurred
Norway	NOKm	(343,4)	(265,8)	(1 088,6)	(1 170,5)
Sweden	NOKm	(256,5)	(282,1)	(1 038,1)	(1 269,1)
Denmark	NOKm	(248,6)	(328,8)	(904,6)	(1 106,0)
UK	NOKm	(369,7)	(221,1)	(1 237,6)	(722,1)
Finland	NOKm	(38,2)	(57,6)	(199,4)	(157,0)
Total gross claims incurred	NOKm	(1 256,5)	(1 155,3)	(4 468,4)	(4 424,6)
Claims incurred, net of reinsurance
Norway	NOKm	(277,0)	(230,6)	(1 021,8)	(1 036,2)
Sweden	NOKm	(234,5)	(253,9)	(949,2)	(1 119,3)
Denmark	NOKm	(178,0)	(294,2)	(631,3)	(991,3)
UK	NOKm	(303,3)	(165,0)	(1 027,6)	(611,0)
Finland	NOKm	(34,2)	(52,5)	(180,2)	(143,6)
Total claims incurred, net of reinsurance	NOKm	(1 026,9)	(996,3)	(3 810,1)	(3 901,4)
Gross expenses
Norway	NOKm	(29,5)	(34,6)	(105,6)	(124,5)
Sweden	NOKm	(55,9)	(62,1)	(214,3)	(204,4)
Denmark	NOKm	(21,4)	(21,3)	(73,9)	(66,2)
UK	NOKm	(51,4)	(43,3)	(46,5)	(146,3)
Finland	NOKm	(3,8)	(3,1)	(14,3)	(11,3)
Total gross expenses	NOKm	(162,0)	(164,3)	(454,7)	(552,6)
Net expenses
Norway	NOKm	(25,3)	(15,1)	(89,1)	(79,3)
Sweden	NOKm	(93,6)	(54,2)	(154,4)	(179,8)
Denmark	NOKm	(19,4)	(28,0)	(52,9)	(82,7)
UK	NOKm	(48,0)	(37,2)	(182,0)	(122,4)
Finland	NOKm	(1,8)	(3,7)	(9,3)	(6,8)
Total net expenses	NOKm	(188,2)	(138,2)	(487,6)	(471,0)

Alternative performance measures and key figures

		Q4 2021	Q4 2020	1.1.-31.12.2021	1.1.-31.12.2020
Gross claims ratio	%	97,8 %	74,2 %	77,8 %	81,1 %
Norway Sweden	%	58,0 %	68,5 %	59,3 %	79,1 %
Denmark	%	107,8 %	130,7 %	102,8 %	112,5 %
UK	%	96,2 %	67,8 %	84,7 %	63,8 %
Finland	%	64,1 %	100,7 %	77,3 %	72,3 %
Total gross claims ratio	%	85,6 %	82,3 %	77,8 %	82,2 %
Claims ratio, net of ceded business ¹
Norway	%	88,5 %	72,1 %	82,1 %	80,2 %
Sweden	%	61,8 %	71,1 %	62,8 %	79,8 %
Denmark	%	89,3 %	132,8 %	82,9 %	115,1 %
UK	%	93,6 %	69,2 %	87,8 %	70,7 %
Finland	%	64,1 %	102,0 %	78,1 %	74,0 %
Total claims ratio, net of ceded business	%	80,9 %	83,8 %	77,4 %	84,6 %
Gross expense ratio
Norway	%	8,4 %	9,7 %	7,6 %	8,6 %
Sweden	%	12,6 %	15,1 %	12,3 %	12,7 %
Denmark	%	9,3 %	8,5 %	8,4 %	6,7 %
UK	%	13,4 %	13,3 %	14,4 %	12,9 %
Finland	%	6,3 %	5,4 %	5,6 %	5,2 %
Total gross expense ratio	%	11,0 %	11,7 %	10,8 %	10,3 %
Expense ratio, net of ceded business ¹
Norway	%	8,1 %	4,7 %	7,2 %	6,1 %
Sweden	%	10,8 %	15,2 %	10,2 %	12,8 %
Denmark	%	9,8 %	12,7 %	6,9 %	9,6 %
UK	%	14,8 %	15,6 %	15,5 %	14,2 %
Finland	%	3,3 %	7,2 %	4,0 %	3,5 %
Total expense ratio, net of ceded business	%	10,7 %	11,6 %	9,9 %	10,2 %
Gross combined ratio
Norway	%	106,2 %	83,8 %	85,4 %	89,7 %
Sweden	%	70,6 %	83,6 %	71,6 %	91,8 %
Denmark	%	117,1 %	139,2 %	111,2 %	119,2 %
UK	%	109,5 %	81,1 %	99,1 %	76,8 %
Finland	%	70,5 %	106,1 %	82,9 %	77,5 %
Total gross combined ratio	%	96,6 %	94,0 %	88,5 %	92,5 %
Combined ratio, net of ceded business ¹
Norway	%	96,6 %	76,8 %	89,2 %	86,3 %
Sweden	%	72,6 %	86,2 %	73,0 %	92,7 %
Denmark	%	99,1 %	145,5 %	89,8 %	124,7 %
UK	%	108,4 %	84,8 %	103,3 %	84,9 %
Finland	%	67,4 %	109,1 %	82,1 %	77,5 %
Total combined ratio, net of ceded business	%	91,6 %	95,4 %	87,3 %	94,8 %

Alternative performance measures and key figures

		Q4 2021	Q4 2020	1.1.-31.12.2021	1.1.-31.12.2020
Retention rate ¹
Norway	%	89,1 %	89,3 %	89,1 %	89,6 %
Sweden	%	85,7 %	86,8 %	86,5 %	87,3 %
Denmark	%	86,4 %	88,1 %	86,5 %	87,6 %
UK	%	84,3 %	73,2 %	80,2 %	76,4 %
Finland	%	89,5 %	90,0 %	89,5 %	89,4 %
Total retention rate	%	86,4 %	84,7 %	85,6 %	85,8 %
Run-off gains/(losses)
Net run-off-gains/losses	NOKm	(54,9)	(41,3)	(14,8)	(100,0)
Net run-off-gains/losses	%	-4,3 %	-3,5 %	-0,3 %	-2,2 %
Return on investments ¹
Total net income from investments, continued business	NOKm	220,1	413,6	878,3	865,2
Total net income from investments, discontinued business	NOKm	17,4	34,9	76,2	104,4
Total net income from investments	NOKm	237,4	448,5	954,5	969,6
Average investments, continued business	NOKm	13 367,6	12 669,9	12 853,1	10 762,2
Average investments, discontinued business	NOKm	884,9	378,4	1 118,1	1 298,0
Total average investments	NOKm	14 252,5	13 048,3	13 971,2	12 060,2
Return on investments, continued business	%	1,6 %	3,3 %	6,8 %	8,0 %
Return investments, discontinued business	%	2,0 %	9,2 %	6,8 %	8,0 %
Total return on investments	%	1,7 %	3,4 %	6,8 %	8,0 %
Total net income from shares	NOKm	211,4	390,4	669,5	433,8
Total net income from interests	NOKm	26,0	58,1	285,1	535,7
Total net income from investments	NOKm	237,4	448,5	954,5	969,6
Average investments shares	NOKm	2 024,1	1 407,3	1 720,0	1 242,2
Average investments interests	NOKm	12 228,4	11 641,0	12 251,2	10 818,1
Total average investments	NOKm	14 252,5	13 048,3	13 971,2	12 060,2
Return on investments, shares	%	10,4 %	27,7 %	38,9 %	34,9 %
Return investments, interests	%	0,2 %	0,5 %	2,3 %	5,0 %
Total return on investments	%	1,7 %	3,4 %	6,8 %	8,0 %
Return on equity, annualised ¹
Profit before comprehensive income	NOKm	263,6	442,7	1 232,1	979,2
Average shareholder equity	NOKm	3 524,6	2 802,5	3 460,3	2 240,4
Return on equity, annualised	%	29,9 %	63,2 %	35,6 %	43,7 %
Equity	NOKm	3 582,1	3 030,5	3 582,1	3 030,5
Equity per share	NOK	43,5	37,0	43,5	37,0
Earnings per share in the period, basic and diluted ²	NOK	3,2	5,4	15,0	12,0
Issued shares (excl. own shares), at the end of the period	No.	82 371 969	81 886 229	82 371 969	81 886 229

¹ Defined as alternative performance measure (APM). APMs are described on www.protectorforsikring.no in document named APMs Protector Forsikring Q4 2021

² Earnings per share from continuing and discontinued operations, basic and diluted = the shareholders' share of the profit or loss from continuing and discontinued operations in the period/average number of outstanding shares in the period

Quarterly outline continued business

NOKm											Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019
Gross premiums written		785,9	855,9	1 428,6	2 880,2	728,9	671,4	1 288,0	2 828,0	548,8	732,5	1 105,9	2 713,4
Gross premiums earned		1 468,3	1 474,9	1 415,0	1 387,9	1 404,5	1 339,6	1 342,3	1 293,2	1 315,6	1 291,4	1 241,9	1 146,9
Gross claims incurred											(1 256,5) (1 082,5) (1 094,3) (1 035,2) (1 155,3) (1 080,2) (1 083,3) (1 105,8) (1 363,2) (1 139,0) (1 150,0) (1 071,7)
Earned premiums, net of reinsurance		1 268,9	1 257,3	1 219,3	1 175,2	1 189,0	1 147,3	1 154,9	1 122,3	1 132,9	1 112,1	1 011,9	890,6
Other insurance related income		1,3	2,9	1,5	2,9	7,4	3,9	3,9	4,2	2,0	2,2	3,2	3,1
Claims incurred, net of reinsurance											(1 026,9) (929,6) (930,7) (922,8) (996,3) (952,3) (946,3) (1 006,4) (1 129,7) (935,2) (999,8) (884,4)
Sales cost		(94,7)	(88,6)		(76,9) (101,5)	(93,3)	(86,5)	(79,8)	(71,7)	(65,3)	(53,7)	(65,6)	(48,9)
Administration cost		(67,3)	(60,7)	(46,8)	(81,8)	(71,0)	(46,0)	(56,0)	(48,3)	(61,0)	(38,0)	(42,9)	(38,0)
Commission from reinsurer		26,6	37,1	31,4	35,6	26,2	13,6	18,9	23,0	(2,3)	8,4	23,1	28,0
Other insurance related expenses		(5,3)	(4,1)	(6,4)	(12,8)	(0,9)	4,9	1,7	(4,3)	2,9	(11,5)	(1,9)	(5,2)
Technical result		101,2	211,4	189,8	92,0	53,6	80,9	93,4	18,8	(120,6)	84,2	(72,0)	(54,7)
Other income/costs		(15,3)	(11,1)	(12,7)	(17,2)	(19,1)	(14,4)	(17,1)	(16,3)	(8,3)	(14,7)	(13,2)	(14,0)
Net financial income		220,1		(0,3) 135,5	523,0	413,6	264,7	509,8	(322,8) 107,3		(15,3)	(31,7)	81,2
Profit before tax		305,9	200,0	312,6	597,8	448,0	331,2	586,0	(320,3)	(21,5)	54,2	(116,9)	12,5
Claims ratio, net of reinsurance	(1)	80,9 %	73,9 %	76,3 %	78,5 %	83,8 %	83,0 %	81,9 %	89,7 %	99,7 %	84,1 %	98,8 %	99,3 %
Expense ratio, net of reinsurance	(2)	10,7 %	8,9 %	7,6 %	12,6 %	11,6 %	10,4 %	10,1 %	8,6 %	11,4 %	7,5 %	8,4 %	6,6 %
Combined ratio, net of reinsurance	(3)	91,6 %	82,9 %	83,9 %	91,1 %	95,4 %	93,4 %	92,1 %		98,3 % 111,1 %		91,6 % 107,2 % 105,9 %
Gross claims ratio	(4)	85,6 %	73,4 %	77,3 %	74,6 %	82,3 %	80,6 %	80,7 %		85,5 % 103,6 %	88,2 %	92,6 %	93,4 %
Gross expense ratio	(5)	11,0 %	10,1 %	8,7 %	13,2 %	11,7 %	9,9 %	10,1 %	9,3 %	9,6 %	7,1 %	8,7 %	7,6 %
Gross combined ratio	(6)	96,6 %	83,5 %	86,1 %	87,8 %	94,0 %	90,5 %	90,8 %		94,8 % 113,2 %		95,3 % 101,3 % 101,0 %

(1) Claims incurred, net of reinsurance in % of earned premiums, net of reinsurance

(2) Operating expenses in % of earned premiums, net of reinsurance

(3) Net claims ratio + net expense ratio

(4) Gross claims incurred in % of gross premiums earned

(5) Sales and administration costs in % of gross premiums earned

(6) Gross claims ratio + gross expense ratio