Quarterly Report • Oct 25, 2018
Quarterly Report
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(UNAUDITED) OCTOBER 2018
The operating profit in the third quarter of 2018 totalled to MNOK -112.8, which includes a significant reserve loss, as well as a strengthening of the provisions for claims 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. Please see the investor presentation for more details on this matter.
The company has chosen to record reserve loss in accordance with the precautionary principle.
The premium growth continues with gross written premiums up 17.0 % compared to Q3-17. The growth for the quarter in local currencies totalled to 18.0%.
Q3-18 shows following development compared to Q3-17:
| [1.000.000 NOK] | Q3 2018 | Q3 2017 | YTD 2018 | YTD 2017 | FY 2017 | |
|---|---|---|---|---|---|---|
| Gross premiums w ritten | 754,6 | 645,1 | 4.233,1 | 3.623,0 | 4.163,2 | |
| Gross premiums earned | 1.172,7 | 1.022,2 | 3.438,5 | 2.808,1 | 3.805,5 | |
| Gross claims incurred | (1.257,2) | (1.106,6) | (3.312,5) | (3.152,9) | (4.054,2) | |
| Earned premiums, net of reinsurance | 806,9 | 749,6 | 2.438,7 | 2.217,6 | 2.925,9 | |
| Claims incurred, net of reinsurance | (901,4) | (646,0) | (2.472,5) | (1.980,0) | (2.647,5) | |
| Net commission income | 1,9 | 20,2 | 100,2 | 140,5 | 117,0 | |
| Internal sales cost | (20,8) | (17,9) | (65,3) | (18,4) | (71,0) | |
| Operating expenses | (28,9) | (55,7) | (102,0) | (146,9) | (122,5) | |
| Other insurance-related income/expenses | (1,3) | 0,4 | (4,6) | (2,8) | (3,3) | |
| Technical result | (143,6) | 50,6 | (105,5) | 210,0 | 198,6 | |
| Other income/costs | (15,6) | (16,3) | (46,5) | (41,5) | (55,9) | |
| Net financial income | 46,4 | 114,9 | 161,2 | 257,5 | 419,5 | |
| Profit before tax | (112,8) | 149,1 | 9,2 | 426,0 | 562,2 | |
| Claims ratio, net of ceded business | (1) | 111,7 % | 86,2 % | 101,4 % | 89,3 % | 90,5 % |
| Expense ratio, net of ceded business | (2) | 5,9 % | 7,1 % | 2,8 % | 1,1 % | 2,6 % |
| Combined ratio, net of ceded business | (3) | 117,6 % | 93,3 % | 104,1 % | 90,4 % | 93,1 % |
| Gross claims ratio | (4) | 107,2 % | 108,3 % | 96,3 % | 112,3 % | 106,5 % |
| Gross expense ratio | (5) | 7,3 % | 7,3 % | 7,6 % | 7,3 % | 7,4 % |
| Gross combined ratio | (6) | 114,5 % | 115,5 % | 104,0 % | 119,6 % | 113,9 % |
| Retention rate | (7) | 68,8 % | 73,3 % | 70,9 % | 79,0 % | 76,9 % |
| Earnings per share | (8) | (0,84) | 1,46 | 0,07 | 3,97 | 5,53 |
(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
(7) Earned premiums, net of reinsurance in % of gross earned premiums
(8) Profit before other comprehensive income divided by w eighted number of shares
Protector Forsikring ASA is a Norwegian general insurance company (P&C) operating in the Nordic region and in the UK.
Protector entered the Swedish insurance market in 2011, the Danish insurance market in 2012 and Finland and UK in 2016.
The company has three business segments: commercial lines of business, public lines of business and Change of Ownership insurance in Norway. Protector Forsikring ASA is listed on the Oslo Stock Exchange.
The gross premiums written (GWP) totalled to MNOK 754.6, representing a 17.0 % growth (18.0 % in LCY) up from MNOK 645.1 in Q3-17.
The growth by country was:
| Gross premiums written | Q3 2018 | Q3 2017 | Growth in quarter | |
|---|---|---|---|---|
| Norw ay incl. COI and Finland | 410,8 | 397,1 | 13,6 | 3,4 % |
| Sw eden | 161,4 | 165,7 | -4,3 | -2,6 % |
| Denmark | 36,1 | 41,0 | -5,0 | -12,1 % |
| UK | 146,3 | 41,2 | 105,1 | 255,2 % |
| Total | 754,6 | 645,1 | 109,5 | 17,0 % |
| Whereof Change of Ow nership (COI) | 130,3 | 158,9 | -28,6 | -18,0 % |
Gross premiums earned (GEP) increased by 14.7 % from MNOK 1,022.2 to a total of MNOK 1,172.7 compared to Q3-17.
The growth in gross premiums earned by country was:
| Gross premiums earned | Q3 2018 | Q3 2017 | Growth in quarter | |
|---|---|---|---|---|
| Norw ay incl. COI and Finland | 544,9 | 531,5 | 13,4 | 2,5 % |
| Sw eden | 315,4 | 251,0 | 64,4 | 25,7 % |
| Denmark | 200,3 | 188,5 | 11,8 | 6,3 % |
| UK | 111,9 | 51,2 | 60,8 | 118,7 % |
| Total | 1172,7 | 1022,2 | 150,4 | 14,7 % |
The premiums earned for own account (NEP) totalled to MNOK 806.9, an increase of 7.7 % compared to Q3 2017.
| Net premiums earned | Q3 2018 | Q3 2017 | Growth in quarter | |
|---|---|---|---|---|
| Norw ay incl. COI and Finland | 435,1 | 428,6 | 6,5 | 1,5 % |
| Sw eden | 203,4 | 171,2 | 32,3 | 18,8 % |
| Denmark | 131,2 | 123,0 | 8,2 | 6,7 % |
| UK | 37,2 | 26,8 | 10,4 | 38,7 % |
| Total | 806,9 | 749,6 | 57,3 | 7,7 % |
The gross premiums written (GWP) year to date totalled to MNOK 4,233.1, representing a 16.8 % growth (16,1 % in LCY) up from MNOK 3,623.0 in YTD-17.
The growth by country was:
| Gross premiums written | YTD 2018 | YTD 2017 | Growth YTD | |
|---|---|---|---|---|
| Norw ay incl. COI and Finland | 1897,5 | 1817,3 | 80,2 | 4,4 % |
| Sw eden | 1158,4 | 939,3 | 219,2 | 23,3 % |
| Denmark | 740,5 | 668,0 | 72,4 | 10,8 % |
| UK | 436,7 | 198,3 | 238,3 | 120,2 % |
| Total | 4233,1 | 3623,0 | 610,1 | 16,8 % |
| Whereof Change of Ow nership | 426,0 | 434,8 | -8,8 | -2,0 % |
Gross premiums earned (GEP) increased by 22.4 % from MNOK 2,808.1 to a total of MNOK 3,438.5 compared to YTD-17.
The growth in gross premiums earned by country was:
| Gross premiums earned | YTD 2018 | YTD 2017 | Growth YTD | |
|---|---|---|---|---|
| Norw ay incl. COI and Finland | 1655,0 | 1529,7 | 125,4 | 8,2 % |
| Sw eden | 925,7 | 661,5 | 264,1 | 39,9 % |
| Denmark | 583,5 | 518,3 | 65,2 | 12,6 % |
| UK | 274,3 | 98,5 | 175,7 | 178,4 % |
| Total | 3438,5 | 2808,1 | 630,4 | 22,4 % |
The premiums earned for own account (NEP) totalled to MNOK 2.438.7, an increase of 10.0 % compared to YTD 2017.
| Net premiums earned | YTD 2018 | YTD 2017 | Growth YTD | |
|---|---|---|---|---|
| Norw ay incl. COI and Finland | 1322,9 | 1320,2 | 2,7 | 0,2 % |
| Sw eden | 617,2 | 487,4 | 129,8 | 26,6 % |
| Denmark | 385,2 | 357,3 | 27,9 | 7,8 % |
| UK | 113,3 | 52,6 | 60,7 | 115,3 % |
| Total | 2438,7 | 2217,6 | 221,1 | 10,0 % |
The operating profit before tax totalled MNOK -112.8, down from 149.1m in Q3-17. The Q3 result is driven by a significant reserve loss, as well as a strengthening of the provisions for claims for the first and second quarter in 2018, related to the Change of Ownership insurance. The reserve loss is offset by reserve gains in Commercial Norway, Sweden and Denmark amounting to appr. MNOK 60, mainly related to motor for own account.
The net profit for the quarter totalled to MNOK -65.1 compared to MNOK 112.6 in Q3-17.
The net combined ratio was 117.6 %, 24.3 percentage points higher than the 93.3 % reported in Q3- 17.
The net combined ratio by country was:
| Net combined ratio | Q3 2018 | Q3 2017 |
|---|---|---|
| Norw ay incl. COI and Finland | 128,5 % | 94,7 % |
| Sw eden | 95,6 % | 88,8 % |
| Denmark | 95,6 % | 97,9 % |
| UK | 188,6 % | 79,3 % |
| Total | 117,6 % | 93,3 % |
The net combined ratio by segment was:
| Net combined ratio | Q3 2018 | Q3 2017 |
|---|---|---|
| Change of Ow nership | 246,9 % | 121,5 % |
| Commercial Norw ay incl. Finland | 84,8 % | 81,2 % |
| Commercial all countries | 95,7 % | 86,7 % |
| Total Protector Forsikring ASA | 117,6 % | 93,3 % |
The net claims ratio was 111.7 %, up from 86.2 % in Q3-17, while the net expense ratio was 5.9 %, down from 7.1 %.
In Q3 the company had run-off losses of 9.7 % primarily driven by Change of Ownership.
The gross combined ratio was 114.5 %, down from 115.5 % in Q3-17 which was mainly driven by the Grenfell Tower fire in London. The gross claims ratio was 107.2 % down from 108.3 %, the gross claims ratio by country was:
| Gross claims ratio | Q3 2018 | Q3 2017 |
|---|---|---|
| Norw ay incl. COI and Finland | 132,6 % | 89,2 % |
| Sw eden | 90,4 % | 72,8 % |
| Denmark | 81,6 % | 85,9 % |
| UK | 77,0 % | 562,1 % |
| Total | 107,2 % | 108,3 % |
The poor claims ratio in Norway is driven by Change of Ownership.
The gross expense ratio was 7.3 % unchanged from Q3-17. The gross expense ratio by country was:
| Gross expense ratio | Q3 2018 | Q3 2017 |
|---|---|---|
| Norw ay incl. COI and Finland | 3,0 % | 3,9 % |
| Sw eden | 11,7 % | 13,0 % |
| Denmark | 5,1 % | 4,9 % |
| UK | 19,7 % | 23,4 % |
| Total | 7,3 % | 7,3 % |
The operating profit before tax totalled MNOK 9.2, down from 426.0m in YTD-17. The YTD-18 result is driven by a weak technical result in the period.
The net profit year to date totalled to MNOK -13.7 compared to MNOK 358.6 in YTD-17.
The net combined ratio was 104.1 %, 13.7 percentage points higher than the 90.4 % reported in YTD-17.
The net combined ratio by country was:
| Net combined ratio | YTD 2018 | YTD 2017 |
|---|---|---|
| Norw ay incl. COI and Finland | 113,9 % | 86,8 % |
| Sw eden | 84,4 % | 86,0 % |
| Denmark | 96,4 % | 101,7 % |
| UK | 123,8 % | 146,1 % |
| Total | 104,1 % | 90,4 % |
The net combined ratio by segment was:
| Net combined ratio | YTD 2018 | YTD 2017 |
|---|---|---|
| Change of Ow nership | 148,9 % | 91,0 % |
| Commercial Norw ay incl. Finland | 99,8 % | 85,0 % |
| Commercial all countries | 95,9 % | 90,3 % |
| Total Protector Forsikring ASA | 104,1 % | 90,4 % |
The net claims ratio was 101.4 %, up from 89.3 % in YTD-17, while the net expense ratio was 2.8 %, up from 1.1 %.
YTD the company had run-off losses of 5.1 % primarily driven by Change of Ownership.
The gross combined ratio was 104.1 %, up from 90.4 % in YTD-17. The gross claims ratio was 96.3 % down from 112.3 %, the gross claims ratio by country was:
| Gross claims ratio | YTD 2018 | YTD 2017 |
|---|---|---|
| Norw ay incl. COI and Finland | 112,6 % | 82,5 % |
| Sw eden | 77,3 % | 81,3 % |
| Denmark | 94,3 % | 93,3 % |
| UK | 66,9 % | 883,4 % |
| Total | 96,3 % | 112,3 % |
The gross expense ratio was 7.6 % up from 7.3 % YTD-17. The gross expense ratio by country was:
| Gross expense ratio | YTD 2018 | YTD 2017 |
|---|---|---|
| Norw ay incl. COI and Finland | 4,6 % | 3,4 % |
| Sw eden | 11,0 % | 13,7 % |
| Denmark | 5,9 % | 6,3 % |
| UK | 18,4 % | 31,4 % |
| Total | 7,6 % | 7,3 % |
Profitability measures have been implemented the year including non-renewal of a large distribution deal (MNOK 120) and a smaller (MNOK 15) with combined ratios above 100% within Change of Ownership in Norway. Additional measures will be taken in the light of the gray silverfish estimates.
Workman's compensation in Denmark has been/will be priced up or out. Price increases in several product lines in Norway have been and are being implemented. Most profitability measures will have limited effect in 2018, but full effect from 01.01.2019.
The net investment portfolio amounted to a total of MNOK 10,195 at September 30th, 2018, up 9.6% compared to the portfolio end of Q3-17.
Investment activities yielded a total return of MNOK 46.4 or 0.5 % compared to a return of MNOK 114.9 or 1.2 % in Q3-17. Equities accounted for a MNOK 9.5 gain (0.7%) against a MNOK 52.1 gain (3.3 %) in Q3-17. Return on the fixed income portfolio totalled to MNOK 36.9 (0.4 %) against MNOK 62.8 (0.9 %) in Q3-17.
In YTD, the investment result was NOK 161.2 (1.6%) against NOK 257.5 (3,0%) in YTD 2017. Equities accounted for a NOK 42.3 gain (2,6%) against NOK 67.6 gain (4,3%) in YTD 2017. Return on the fixed income portfolio totalled NOK 118.9 or 1.4% against NOK 189.9 (2.7%) in YTD 2017.
At the end of Q3-18, 11.1 % of Protector's financial assets were invested in equities, against 17.6 % at the yearend of 2017.
The company is well capitalized under the Solvency II regime. Solvency capital requirement (SCR) ratio using standard formula is 183 % as of September 30 th , 2018. The company's goal is to maintain a solvency coverage ratio (calculated according to the Solvency II regulations) above 150%.
Due to the reported reserve losses within Change of Ownership Insurance, the company has implemented significant changes in the terms and conditions for new business written as from November this year. The changes will reduce risk going forward and aim at restoring profitability in the segment in the course of 2019.
Price increases within commercial segment are well under way, and an acceptable technical profitability is expected for this sector in 2019.
The profitability measures taken will have limited effect for 2018.
Oslo, 25th October 2018
The Board of Directors of Protector Forsikring ASA
| Q3 2018 | Q3 2017 | YTD 2018 | YTD 2017 | FY 2017 | |
|---|---|---|---|---|---|
| Premium income | |||||
| Gross premiums earned | 1.172,7 | 1.022,2 | 3.438,5 | 2.808,1 | 3.805,5 |
| Reinsurers' share of earned premiums | (365,7) | (272,6) | (999,8) | (590,5) | (879,7) |
| Earned premiums, net of reinsurance | 806,9 | 749,6 | 2.438,7 | 2.217,6 | 2.925,9 |
| Other insurance-related income | 9,5 | 2,3 | 13,6 | 4,3 | 5,1 |
| Claims incurred | |||||
| Gross claims incurred | (1.257,2) | (1.106,6) | (3.312,5) | (3.152,9) | (4.054,2) |
| Reinsurers' share of claims incurred | 355,9 | 460,6 | 840,0 | 1.172,9 | 1.406,7 |
| Claims incurred, net of reinsurance | (901,4) | (646,0) | (2.472,5) | (1.980,0) | (2.647,5) |
| Operating expenses | |||||
| Sales costs | (56,6) | (18,8) | (160,6) | (59,0) | (158,1) |
| Administration costs | (28,9) | (55,7) | (102,0) | (146,9) | (122,5) |
| Commission from reinsurers | 37,7 | 21,1 | 195,5 | 181,0 | 204,1 |
| Total operating expenses, net of reinsurance | (47,8) | (53,4) | (67,1) | (24,8) | (76,5) |
| Other insurance-related expenses | (10,8) | (1,9) | (18,1) | (7,1) | (8,4) |
| Technical result | (143,6) | 50,6 | (105,5) | 210,0 | 198,6 |
| Net income from financial assets | 46,4 | 114,9 | 161,2 | 257,5 | 419,5 |
| Other income/expenses | (15,6) | (16,3) | (46,5) | (41,5) | (55,9) |
| Non-technical result | 30,8 | 98,6 | 114,7 | 216,0 | 363,6 |
| Profit before tax | (112,8) | 149,1 | 9,2 | 426,0 | 562,2 |
| Tax | 44,2 | (23,1) | (3,5) | (83,6) | (85,5) |
| Profit before components of comprehensive income | (68,6) | 126,0 | 5,7 | 342,4 | 476,7 |
| Actuarial gain and loss from defined benefit pension plans | - | - | - | - | (8,4) |
| Currency changes from foreign enterprise | 4,5 | (17,9) | (25,9) | 21,6 | 61,5 |
| Taxes on components of comprehensive income | (1,1) | 4,5 | 6,5 | (5,4) | (13,3) |
| Profit for the period | (65,1) | 112,6 | (13,7) | 358,6 | 516,5 |
| Earnings per share | -0,84 | 1,46 | 0,07 | 3,97 | 5,53 |
| Earnings per share, diluted | -0,84 | 1,46 | 0,07 | 3,97 | 5,53 |
| [1.000.000 NOK] | 30.09.2018 | 30.09.2017 | 31.12.2017 |
|---|---|---|---|
| Assets | |||
| Intangible fixed assets | |||
| Other intangible fixed assets | 25,7 | 19,2 | 20,9 |
| Total intangible fixed assets | 25,7 | 19,2 | 20,9 |
| Buildings and other real estates | |||
| Ow ner-occupied property | 13,6 | 13,6 | 13,5 |
| Total buildings and other real estates | 13,6 | 13,6 | 13,5 |
| Financial assets | |||
| Shares | 1.128,4 | 1.599,4 | 1.649,3 |
| Securities, bonds etc | 8.853,0 | 7.592,1 | 7.519,9 |
| Financial derivatives | 11,6 | 6,0 | 2,5 |
| Bank deposits | 246,3 | 106,8 | 210,2 |
| Total financial assets | 10.239,2 | 9.304,4 | 9.381,9 |
| Reinsurers share of gross technical provisions | |||
| Reinsurers share of gross premium provisions | 518,4 | 368,8 | 228,6 |
| Reinsurers share of gross claims provisions | 1.840,8 | 1.852,6 | 1.829,4 |
| Total reinsurers share of gross technical provisions | 2.359,2 | 2.221,4 | 2.058,0 |
| Receivables | |||
| Policyholders | 224,7 | 143,0 | 207,6 |
| Intermediaries | 108,4 | 123,3 | 81,6 |
| Other receivables | 24,3 | 19,4 | 10,3 |
| Total receivables | 357,4 | 285,7 | 299,5 |
| Other assets | |||
| Tangible fixed assets | 25,9 | 16,0 | 15,7 |
| Cash and bank deposits | 112,6 | 268,1 | 327,5 |
| Total other assets | 138,5 | 284,1 | 343,2 |
| Total prepaid expenses | 151,7 | 234,7 | 155,2 |
| Total assets | 13.285,4 | 12.362,9 | 12.272,1 |
| [1.000.000 NOK] | 30.09.2018 | 30.09.2017 | 31.12.2017 |
|---|---|---|---|
| Equity and liabilities | |||
| Shareholders' equity | |||
| Share capital [86.155.605 shares] | 86,2 | 86,2 | 86,2 |
| Ow n shares | (4,4) | (0,1) | (0,0) |
| Other paid-in equity | 267,7 | 267,7 | 267,7 |
| Total paid-in equity | 349,4 | 353,7 | 353,8 |
| Earned equity | |||
| Natural perils fund | 55,0 | 29,2 | 22,7 |
| Guarantee scheme | 58,9 | 85,7 | 85,9 |
| Other equity | 1.841,7 | 1.964,7 | 2.128,8 |
| Total earned equity | 1.955,6 | 2.079,6 | 2.237,4 |
| Total equity | 2.305,0 | 2.433,3 | 2.591,3 |
| Subordinated loan capital | 1.243,3 | 1.243,3 | 1.243,3 |
| Technical provisions | |||
| Provisions for unearned premiums | 1.720,8 | 1.413,3 | 964,7 |
| Provisions for claims | 6.723,4 | 5.951,6 | 6.084,7 |
| Total technical provisions | 8.444,1 | 7.364,9 | 7.049,4 |
| Provisions for other risks and liabilities | |||
| Pension liabilities | 12,1 | 10,9 | 12,1 |
| Current tax liability | (8,2) | 16,4 | 42,7 |
| Deferred tax liability | 153,9 | 151,9 | 151,0 |
| Total provisions for other risks and liabilities | 157,8 | 179,2 | 205,8 |
| Liabilities | |||
| Liabilities in connection w ith insurance | 95,8 | 61,4 | 59,2 |
| Liabilities in connection w ith reinsurance | 717,2 | 884,5 | 671,6 |
| Financial derivatives | 19,7 | 6,1 | 9,2 |
| Other liabilities | 161,8 | 46,6 | 57,4 |
| Total liabilities | 994,4 | 998,6 | 797,5 |
| Incurred expenses and prepaid income | |||
| Other incurred expenses and prepaid income | 140,8 | 143,6 | 384,9 |
| Total incurred expenses and prepaid income | 140,8 | 143,6 | 384,9 |
| Total equity and liabilities | 13.285,4 | 12.362,9 | 12.272,1 |
| [1.000.000 NOK] | Q3 2018 | Q3 2017 | YTD 2018 | YTD 2017 | FY2017 |
|---|---|---|---|---|---|
| Cash flow from operations | |||||
| Premiums paid | 1.000,7 | 793,7 | 3.976,3 | 3.264,2 | 3.962,8 |
| Claims paid | (929,0) | (547,5) | (2.500,5) | (1.757,1) | (2.574,0) |
| Paid reinsurance | (93,3) | 34,5 | (191,8) | (71,7) | (13,7) |
| Paid operating expenses including commissions | (131,3) | (208,5) | (310,0) | (244,5) | (227,7) |
| Interest / dividend income | 64,4 | 64,1 | 183,6 | 176,1 | 273,1 |
| Net payments from financial instruments | 43,7 | (318,4) | (934,4) | (2.223,1) | (2.055,6) |
| Payable tax | 21,8 | 48,3 | (47,1) | 22,8 | (33,2) |
| Net cash flow from operations | (23,1) | (133,8) | 176,1 | (833,4) | (668,4) |
| Cash flow from investment activities | |||||
| Net investments in equities | - | 3,6 | - | ||
| Investments in fixed assets | (5,5) | (5,9) | (31,0) | (19,5) | (25,1) |
| Net cash flow from investment activities | (5,5) | (2,3) | (31,0) | (19,5) | (25,1) |
| Cash flow from financial activities | |||||
| Dividend paid | - | - | - | (193,8) | (193,8) |
| Net payment on subordinated loan capital | - | 1,9 | - | 597,4 | 597,4 |
| Interest payments on subordinated loan capital | (15,3) | (14,9) | (45,6) | (41,7) | (56,3) |
| Repayment of equity | (259,0) | (3,6) | (259,0) | (3,6) | - |
| Net cash flow from financial activities | (274,4) | (16,6) | (304,6) | 358,3 | 347,2 |
| Net cash flow for the period | (303,0) | (152,7) | (159,5) | (494,6) | (346,3) |
| Net change in cash and cash equivalents | (303,0) | (152,7) | (159,5) | (494,6) | (346,3) |
| Cash and cash equivalents opening balance | 661,6 | 516,6 | 537,7 | 856,1 | 856,1 |
| Effects of exchange rate changes on cash and cash equivalents | 0,2 | 11,1 | (19,3) | 13,4 | 27,9 |
| Cash and cash equivalents closing balance | 358,9 | 374,9 | 358,9 | 374,9 | 537,7 |
| Statement of changes in equity | ||
|---|---|---|
| -------------------------------- | -- | -- |
| Other paid-in | Natural perils | Guarantee | Other | ||||
|---|---|---|---|---|---|---|---|
| Share Capital | Own shares | equity | fund | scheme | equity | Total | |
| Equity at 31.12.2016 | 86,2 | - | 267,7 | 8,3 | 83,3 | 1.822,7 | 2.268,2 |
| Profit for the period | - | - | 8,5 | 1,4 | 71,1 | 81,0 | |
| Own shares | (3,6) | (3,6) | |||||
| Equity at 31.03.2017 | 86,2 | (3,6) | 267,7 | 16,9 | 84,7 | 1.893,8 | 2.345,6 |
| Profit for the period | - | 0,0 | - | 6,9 | 6,1 | 152,0 | 165,0 |
| Dividend pay out | (193,8) | (193,8) | |||||
| Equity at 30.06.2017 | 86,2 | (3,6) | 267,7 | 23,8 | 90,8 | 1.852,4 | 2.317,2 |
| Profit for the period | - | - | 5,4 | (5,1) | 114,1 | 114,4 | |
| Own shares | 3,5 | 3,5 | |||||
| Equity at 30.09.2017 | 86,2 | (0,1) | 267,7 | 29,2 | 85,7 | 1.966,5 | 2.435,2 |
| Profit for the period | - | - | (6,5) | 0,2 | 162,4 | 156,1 | |
| Own shares | 0,1 | (0,1) | (0,0) | ||||
| Equity at 31.12.2017 | 86,2 | (0,0) | 267,7 | 22,7 | 85,9 | 2.128,8 | 2.591,3 |
| Profit for the period | - | - | 15,7 | (28,5) | 10,3 | (2,4) | |
| Currency changes | (15,5) | (15,5) | |||||
| Own shares | (0,0) | (0,0) | |||||
| Equity at 31.03.2018 | 86,2 | (0,0) | 267,7 | 38,4 | 57,4 | 2.123,7 | 2.573,3 |
| Profit for the period | - | - | 8,2 | 0,8 | 45,1 | 54,1 | |
| Currency changes | (5,4) | (5,4) | |||||
| Own shares | - | 0,1 | 0,1 | ||||
| Equity at 30.06.2018 | 86,2 | (0,0) | 267,7 | 46,6 | 58,3 | 2.163,5 | 2.622,2 |
| Profit for the period | - | - | 8,4 | 0,6 | (74,2) | (65,1) | |
| Currency changes | 7,0 | 7,0 | |||||
| Own shares | (4,4) | (254,7) | (259,1) | ||||
| Equity at 30.09.2018 | 86,2 | (4,4) | 267,7 | 55,0 | 58,9 | 1.841,7 | 2.305,0 |
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 2017. 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 2017 annual report.
| Norway incl. COI & Finland | Sweden | Denmark | UK | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| [1.000.000 NOK] | Q3 2018 | Q3 2017 | Q3 2018 | Q3 2017 | Q3 2018 | Q3 2017 | Q3 2018 | Q3 2017 | ||
| Gross premiums written | 410,8 | 397,1 | 161,4 | 165,7 | 36,1 | 41,0 | 146,3 | 41,2 | ||
| Gross premiums earned | 544,9 | 531,5 | 315,4 | 251,0 | 200,3 | 188,5 | 111,9 | 51,2 | ||
| Gross claims incurred | (722,5) | (474,2) | (285,2) | (182,8) | (163,4) | (162,0) | (86,1) | (287,6) | ||
| Earned premiums, net of reinsurance | 435,1 | 428,6 | 203,4 | 171,2 | 131,2 | 123,0 | 37,2 | 26,8 | ||
| Other insurance related income | 8,6 | 1,4 | 0,3 | 0,0 | 0,1 | 0,9 | 0,5 | 0,0 | ||
| Claims incurred, net of reinsurance | (553,2) | (384,3) | (166,7) | (128,6) | (120,2) | (117,1) | (61,3) | (16,1) | ||
| Sales cost | (12,4) | 1,3 | (26,5) | (18,0) | (3,2) | - | (14,5) | (2,1) | ||
| Administration cost | (3,8) | (21,9) | (10,5) | (14,6) | (7,1) | (9,3) | (7,6) | (9,9) | ||
| Commission from reinsurer | 10,4 | (0,8) | 9,2 | 9,3 | 4,9 | 5,8 | 13,3 | 6,8 | ||
| Other insurance related expenses | (7,7) | (1,8) | (0,1) | (0,1) | (0,6) | (0,0) | (2,3) | (0,0) | ||
| Technical result | (123,0) | 22,6 | 9,0 | 19,0 | 5,1 | 3,4 | (34,7) | 5,5 | ||
| Other income/costs | (15,6) | (16,2) | (0,0) | (0,0) | (0,0) | (0,0) | - | - | ||
| Net financial income | 35,9 | 100,4 | 9,9 | 16,5 | (0,2) | (1,9) | 0,8 | - | ||
| Profit before tax | (102,7) | 106,7 | 18,9 | 35,5 | 4,9 | 1,5 | (33,9) | 5,5 | ||
| Claims ratio, net of ceded business | (1) | 127,1 % | 89,7 % | 81,9 % | 75,2 % | 91,6 % | 95,1 % | 165,0 % | 60,0 % | |
| Expense ratio, net of ceded business | (2) | 1,3 % | 5,0 % | 13,7 % | 13,7 % | 4,1 % | 2,8 % | 23,6 % | 19,3 % | |
| Combined ratio, net of ceded business | (3) | 128,5 % | 94,7 % | 95,6 % | 88,8 % | 95,6 % | 97,9 % | 188,6 % | 79,3 % | |
| Gross claims ratio | (4) | 132,6 % | 89,2 % | 90,4 % | 72,8 % | 81,6 % | 85,9 % | 77,0 % | 562,1 % | |
| Gross expense ratio | (5) | 3,0 % | 3,9 % | 11,7 % | 13,0 % | 5,1 % | 4,9 % | 19,7 % | 23,4 % | |
| Gross combined ratio | (6) | 135,6 % | 93,1 % | 102,2 % | 85,9 % | 86,7 % | 90,8 % | 96,6 % | 585,5 % |
(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
| Norway incl. COI & Finland | Sweden | Denmark | UK | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| [1.000.000 NOK] | YTD 2018 | YTD 2017 | FY 2017 | YTD 2018 | YTD 2017 | FY 2017 | YTD 2018 | YTD 2017 | FY 2017 | YTD 2018 | YTD 2017 | FY 2017 |
| Gross premiums written | 1.897,5 | 1.817,3 | 2.128,3 | 1.158,4 | 939,3 | 1.078,3 | 740,5 | 668,0 | 703,6 | 436,7 | 198,3 | 252,9 |
| Gross premiums earned | 1.655,0 | 1.529,7 | 2.035,1 | 925,7 | 661,5 | 915,8 | 583,5 | 518,3 | 700,0 | 274,3 | 98,5 | 154,7 |
| Gross claims incurred | (1.863,3) | (1.261,5) | (1.702,0) | (715,7) | (537,6) | (719,7) | (550,1) | (483,5) | (676,5) | (183,4) | (870,3) | (956,0) |
| Earned premiums, net of reinsurance | 1.322,9 | 1.320,2 | 1.719,9 | 617,2 | 487,4 | 663,9 | 385,2 | 357,3 | 467,4 | 113,3 | 52,6 | 74,6 |
| Other insurance related income | 10,9 | 2,9 | 3,7 | 0,5 | 0,1 | 0,1 | 1,2 | 0,9 | 0,9 | 1,0 | 0,4 | 0,4 |
| Claims incurred, net of reinsurance | (1.472,1) | (1.131,4) | (1.502,9) | (491,8) | (390,0) | (523,1) | (377,8) | (390,9) | (524,0) | (130,9) | (67,7) | (97,5) |
| Sales cost | (41,6) | (0,1) | (44,0) | (75,7) | (51,7) | (84,3) | (10,8) | - | (16,2) | (32,5) | (7,1) | (13,6) |
| Administration cost | (34,2) | (51,7) | (37,0) | (26,4) | (38,9) | (38,6) | (23,5) | (32,5) | (26,5) | (18,0) | (23,8) | (20,5) |
| Commission from reinsurer | 41,1 | 37,8 | 53,2 | 72,6 | 61,5 | 68,8 | 40,7 | 59,9 | 57,5 | 41,1 | 21,8 | 24,6 |
| Other insurance related expenses | (3,7) | (6,8) | (7,9) | (12,8) | (0,2) | (0,2) | 0,5 | (0,0) | (0,1) | (2,1) | (0,1) | (0,2) |
| Technical result | (176,7) | 171,0 | 185,1 | 83,7 | 68,1 | 86,5 | 15,5 | (5,2) | (40,8) | (28,0) | (24,0) | (32,3) |
| Other income/costs | (46,3) | (41,1) | (55,6) | (0,1) | (0,3) | (0,3) | (0,0) | (0,1) | 0,0 | 0,0 | - | - |
| Net financial income | 128,1 | 214,3 | 373,0 | 29,0 | 27,6 | 35,3 | 3,3 | 15,6 | 11,2 | 0,8 | - | 0,0 |
| Profit before tax | (94,9) | 344,2 | 502,6 | 112,6 | 95,5 | 121,5 | 18,7 | 10,2 | (29,6) | (27,2) | (24,0) | (32,3) |
| Claims ratio, net of ceded business | 111,3 % | 85,7 % | 87,4 % | 79,7 % | 80,0 % | 78,8 % | 98,1 % | 109,4 % | 112,1 % | 115,5 % | 128,6 % | 130,7 % |
| Expense ratio, net of ceded business | 2,6 % | 1,1 % | 1,6 % | 4,8 % | 6,0 % | 8,2 % | -1,7 % | -7,7 % | -3,2 % | 8,3 % | 17,4 % | 12,7 % |
| Combined ratio, net of ceded business | 113,9 % | 86,8 % | 89,0 % | 84,4 % | 86,0 % | 87,0 % | 96,4 % | 101,7 % | 108,9 % | 123,8 % | 146,1 % | 143,4 % |
| Gross claims ratio | 112,6 % | 82,5 % | 83,6 % | 77,3 % | 81,3 % | 78,6 % | 94,3 % | 93,3 % | 96,6 % | 66,9 % | 883,4 % | 618,0 % |
| Gross expense ratio | 4,6 % | 3,4 % | 4,0 % | 11,0 % | 13,7 % | 13,4 % | 5,9 % | 6,3 % | 6,1 % | 18,4 % | 31,4 % | 22,1 % |
| Gross combined ratio | 117,2 % | 85,9 % | 87,6 % | 88,3 % | 95,0 % | 92,0 % | 100,1 % | 99,6 % | 102,7 % | 85,3 % | 914,8 % | 640,0 % |
(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
| [1.000.000 NOK] | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | Q1 2017 | Q4 2016 | Q3 2016 |
|---|---|---|---|---|---|---|---|---|---|
| Gross premiums written | 754,6 | 1.017,5 | 2.461,0 | 540,2 | 645,1 | 890,5 | 2.087,4 | 392,3 | 412,8 |
| Gross premiums earned | 1.172,7 | 1.195,0 | 1.070,9 | 997,5 | 1.022,2 | 927,3 | 858,6 | 768,6 | 825,9 |
| Gross claims incurred | (1.257,2) | (1.064,7) | (990,6) | (901,2) | (1.106,6) | (1.262,0) | (784,4) | (740,3) | (775,5) |
| Earned premiums, net of reinsurance | 806,9 | 861,1 | 770,7 | 708,3 | 749,6 | 757,8 | 710,2 | 624,7 | 692,3 |
| Claims incurred, net of reinsurance | (901,4) | (828,4) | (742,7) | (667,5) | (646,0) | (675,7) | (658,3) | (632,6) | (618,8) |
| Net commission income | 24,6 | 30,4 | 67,9 | (57,6) | 20,2 | 51,1 | 86,6 | (9,7) | 8,6 |
| Internal sales cost | (43,5) | (21,8) | (22,7) | (18,4) | (17,9) | (17,9) | (16,8) | (20,7) | (14,4) |
| Operating expenses | (28,9) | (37,4) | (35,8) | 24,4 | (55,7) | (44,9) | (29,5) | (20,4) | (47,6) |
| Other insurance-related income/expenses | (1,3) | (3,1) | (0,2) | (0,5) | 0,4 | (0,8) | (2,4) | (11,8) | (1,4) |
| Technical result | (143,6) | 0,8 | 37,2 | (11,4) | 50,6 | 69,6 | 89,8 | (70,4) | 18,6 |
| Other income/costs | (15,6) | (15,7) | (15,1) | (14,4) | (16,3) | (16,2) | (9,0) | (9,0) | (8,9) |
| Net financial income | 46,4 | 112,3 | 2,5 | 161,9 | 114,9 | 116,1 | 26,6 | 149,9 | 160,7 |
| Profit before tax | (112,8) | 97,4 | 24,6 | 136,2 | 149,1 | 169,5 | 107,3 | 70,5 | 170,5 |
| Tax | 44,2 | (25,0) | (22,8) | (1,9) | (23,1) | (22,9) | (37,5) | (1,4) | (27,3) |
| Profit before components of comp.income | (68,6) | 72,4 | 1,8 | 134,3 | 126,0 | 146,6 | 69,8 | 69,1 | 143,2 |
| Components of comprehensive income | 4,5 | (24,7) | (5,7) | 31,4 | (17,9) | 24,5 | 15,0 | 19,2 | (13,0) |
| Taxes on components of comprehensive income | (1,1) | 6,2 | 1,4 | (7,9) | 4,5 | (6,1) | (3,7) | (4,9) | 3,4 |
| Profit for the period | (65,1) | 53,8 | (2,4) | 157,9 | 112,6 | 165,0 | 81,0 | 83,3 | 133,6 |
| Claims ratio, net of ceded business (1) |
111,7 % | 96,2 % | 96,4 % | 94,2 % | 86,2 % | 89,2 % | 92,7 % | 101,3 % | 89,4 % |
| Expense ratio, net of ceded business (2) |
5,9 % | 3,3 % | -1,2 % | 7,3 % | 7,1 % | 1,5 % | -5,7 % | 8,1 % | 7,7 % |
| Combined ratio, net of ceded business (3) |
117,6 % | 99,5 % | 95,1 % | 101,5 % | 93,3 % | 90,7 % | 87,0 % | 109,4 % | 97,1 % |
| Gross claims ratio (4) |
107,2 % | 89,1 % | 92,5 % | 90,4 % | 108,3 % | 136,1 % | 91,4 % | 96,3 % | 93,9 % |
| Gross expense ratio (5) |
7,3 % | 7,4 % | 8,3 % | 7,5 % | 7,3 % | 7,5 % | 7,1 % | 6,9 % | 9,1 % |
| (6) Gross combined ratio |
114,5 % | 96,5 % | 100,8 % | 97,8 % | 115,5 % | 143,6 % | 98,5 % | 103,3 % | 103,0 % |
(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
| F inancial assets thro ugh pro fit o r lo ss [1.000.000 N OK] | C urrency | Level 1 | Level 2 | Level 3 | T o tal |
|---|---|---|---|---|---|
| Shares | NOK | 99 | 993 | 37 | 1.128 |
| Bonds and other fixed income securities | NOK | 8.853 | 8.853 | ||
| Cash and cash equivalents | NOK | 246 | 246 | ||
| Foreign currency contracts | NOK | 12 | 12 | ||
| Total assets 30.09.2018 | NOK | 345 | 9.858 | 10.239 | |
| Total assets 30.09.2017 | NOK | 6.876 | 2.428 | 9.304 | |
| F inancial liabilities at fair value thro ugh pro fit o r lo ss [1.000 N OK] C urrency | Level 1 | Level 2 | Level 3 | T o tal | |
|---|---|---|---|---|---|
| Foreign exchange contracts | NOK | -20 | -20 | ||
| Total financial liabilities 30.09.2018 | NOK | -20 | -20 | ||
| Total financial liabilities 30.09.2017 | NOK | -6 | - 6 |
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 recognized 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 MNOK 20 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.
| [1.000.000 NOK] | 30.09.2018 | 30.09.2017 | 31.12.2017 |
|---|---|---|---|
| Total solvency capital requirement | 1.838 | 1.757 | 1.834 |
| Total eligible own funds to meet SCR | 3.359 | 3.383 | 3.656 |
| Ratio of eligible own funds to SCR | 183 % | 193 % | 199 % |
| Totalt minimum capital requirement | 827 | 783 | 773 |
| Ratio of eligible own funds to MCR | 315 % | 340 % | 374 % |
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