Quarterly Report • Jul 12, 2018
Quarterly Report
Open in ViewerOpens in native device viewer
(UNAUDITED) JULY 2018
The premium growth continues with gross written premiums up 14.3 % compared to Q2-17. The growth for the quarter in local currencies totalled to 16.4%. The operating profit in the second quarter of 2018 totalled to MNOK 97.7. The result is driven by a weak technical result and an improved financial income result. Profitability measures have been taken and stronger price increases prior to Q4-18 and Q1-19 have been and will be initiated.
Q2-18 shows following development compared to Q2-17:
| [1.000.000 NOK] | Q2 2018 | Q2 2017 | H1 2018 | H1 2017 | FY 2017 | |
|---|---|---|---|---|---|---|
| Gross premiums w ritten | 1.017,5 | 890,5 | 3.478,5 | 2.977,9 | 4.163,2 | |
| Gross premiums earned | 1.195,0 | 927,3 | 2.265,8 | 1.785,9 | 3.805,5 | |
| Gross claims incurred | (1.064,7) | (1.262,0) | (2.055,3) | (2.046,3) | (4.054,2) | |
| Earned premiums, net of reinsurance | 861,1 | 757,8 | 1.631,8 | 1.468,0 | 2.925,9 | |
| Claims incurred, net of reinsurance | (828,4) | (675,7) | (1.571,1) | (1.334,0) | (2.647,5) | |
| Net commission income | 30,4 | 51,1 | 98,3 | 154,4 | 117,0 | |
| Internal sales cost | (21,8) | (17,9) | (44,5) | (34,6) | (71,0) | |
| Operating expenses | (37,4) | (44,9) | (73,1) | (91,2) | (122,5) | |
| Other insurance-related income/expenses | (3,1) | (0,8) | (3,2) | (3,2) | (3,3) | |
| Technical result | 0,8 | 69,6 | 38,0 | 159,4 | 198,6 | |
| Other income/costs | (15,7) | (16,2) | (30,9) | (25,2) | (55,9) | |
| Net financial income | 112,3 | 116,1 | 114,8 | 142,6 | 419,5 | |
| Profit before tax | 97,4 | 169,5 | 122,0 | 276,8 | 562,2 | |
| Claims ratio, net of ceded business | (1) | 96,2 % | 89,2 % | 96,3 % | 90,9 % | 90,5 % |
| Expense ratio, net of ceded business | (2) | 3,3 % | 1,5 % | 1,2 % | -2,0 % | 2,6 % |
| Combined ratio, net of ceded business | (3) | 99,5 % | 90,7 % | 97,5 % | 88,9 % | 93,1 % |
| Gross claims ratio | (4) | 89,1 % | 136,1 % | 90,7 % | 114,6 % | 106,5 % |
| Gross expense ratio | (5) | 7,4 % | 7,5 % | 7,8 % | 7,4 % | 7,4 % |
| Gross combined ratio | (6) | 96,5 % | 143,6 % | 98,5 % | 121,9 % | 113,9 % |
| Retention rate | (7) | 72,1 % | 81,7 % | 72,0 % | 82,2 % | 76,9 % |
| Earnings per share | (8) | 0,84 | 1,70 | 0,86 | 2,51 | 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 premium growth continues:
The gross premiums written (GWP) totalled to MNOK 1,017.5, representing a 14.3 % growth (16.4 % in LCY) up from MNOK 890.5 in Q2-17.
The growth by country was:
| Country | GWP in quarter | Growth in quarter | |
|---|---|---|---|
| Norw ay (incl. Finland) | 482,7 | 45,2 - |
-8,6 % |
| Sw eden | 294,1 | 90,1 | 44,2 % |
| Denmark | 10,4 | 7,4 - |
-41,6 % |
| UK | 230,3 | 89,5 | 63,5 % |
| Total | 1.017,5 | 127,0 | 14,3 % |
| Whereof Change of Ow nership | 179,3 | 27,8 | 18,4% |
Gross premiums earned (GEP) increased by 28.9 % from MNOK 927.3 to a total of MNOK 1,195.0 compared to Q2-17.
The growth in gross premiums earned by country was:
| Country | GEP in quarter | Growth in quarter | |
|---|---|---|---|
| Norw ay (incl. Finland) | 595,4 | 84,1 | 16,5 % |
| Sw eden | 319,6 | 105,0 | 48,9 % |
| Denmark | 187,1 | 26,1 | 16,2 % |
| UK | 92,9 | 52,5 | 130,0 % |
| Total | 1.195,0 | 267,7 | 28,9 % |
The premiums earned for own account (NEP) totalled to MNOK 861.1, an increase of 13.6 % compared to Q2 2017.
| Country | NEP in quarter | Growth in quarter | |
|---|---|---|---|
| Norw ay (incl. Finland) | 479,9 | 18,1 | 3,9 % |
| Sw eden | 216,2 | 54,5 | 33,7 % |
| Denmark | 121,8 | 7,3 | 6,4 % |
| UK | 43,2 | 23,5 | 119,0 % |
| Total | 861,1 | 103,3 | 13,6 % |
The gross premiums written (GWP) for the first half year totalled to MNOK 3,478.5, representing a 16.8 % growth (16,1 % in LCY) up from MNOK 2,977.9 in H1-17.
The growth by country was:
| Country | GWP in H1 | Growth in H1 | |
|---|---|---|---|
| Norw ay (incl. Finland) | 1.486,7 | 66,5 | 4,7 % |
| Sw eden | 997,0 | 223,4 | 28,9 % |
| Denmark | 704,4 | 77,4 | 12,3 % |
| UK | 290,4 | 133,2 | 84,8 % |
| Total | 3.478,5 | 500,6 | 16,8 % |
| Whereof Change of Ow nership | 295,7 | 19,8 | 7,2% |
Gross premiums earned (GEP) increased by 26.9 % from MNOK 1,785.9 to a total of MNOK 2,265.8 compared to H1-17.
| Country | GEP in H1 | Growth in H1 | |
|---|---|---|---|
| Norw ay (incl. Finland) | 1.110,1 | 111,9 | 11,2 % |
| Sw eden | 610,2 | 199,7 | 48,6 % |
| Denmark | 383,2 | 53,4 | 16,2 % |
| UK | 162,3 | 115,0 | 242,8 % |
| Total | 2.265,8 | 480,0 | 26,9 % |
The premiums earned for own account (NEP) totalled to MNOK 1.631.8, an increase of 11.2 % compared to H1 2017.
| Country | NEP in H1 | Growth in H1 | ||
|---|---|---|---|---|
| Norw ay (incl. Finland) | 887,8 | 3,8 - |
-0,4 % | |
| Sw eden | 413,8 | 97,6 | 30,8 % | |
| Denmark | 254,0 | 19,7 | 8,4 % | |
| UK | 76,2 | 50,3 | 194,8 % | |
| Total | 1.631,8 | 163,8 | 11,2 % |
The operating profit before tax totalled MNOK 97.4, down from 169.5m in Q2-17. The Q2 result is driven by a weak technical result and an improved financial result.
The net profit for the quarter totalled to MNOK 53.8 compared to MNOK 165.0 in Q2-17.
The net combined ratio was 99.5 %, 8.8 percentage points higher than the 90.7 % reported in Q2-17.
The net combined ratio by country was:
| Net combined ratio | Q2 2018 | Q2 2017 |
|---|---|---|
| Norw ay incl. Finland | 106,1 % | 72,6 % |
| Sw eden | 85,2 % | 96,1 % |
| Denmark | 108,6 % | 132,2 % |
| UK | 73,2 % | 228,5 % |
| Total | 99,5% | 90,7% |
The net claims ratio was 96.2 %, up from 89.2 % in Q2-17, while the net expense ratio was 3.3 %, up from 1.5 %.
In Q2 the company had run-off losses of 3.5 % primarily driven by Change of Ownership.
The gross combined ratio was 96.5 %, down from 143.6 % in Q2-17 which was mainly driven by the Grenfell Tower fire in London. The gross claims ratio was 89.1 % down from 136.1 %, the gross claims ratio by country was:
| Gross claims ratio | Q2 2018 | Q2 2017 |
|---|---|---|
| Norw ay incl. Finland | 99,1 % | 64,6 % |
| Sw eden | 75,0 % | 84,3 % |
| Denmark | 95,1 % | 108,5 % |
| UK | 61,4 % | 1426,6 % |
| Total | 89,1% | 136,1% |
The poor claims ratio in Norway is driven by motor, liability, group life, health and loss of license, while in Denmark the ratio is driven by property and workman's compensation. The claims ratio in Sweden is good in all lines, while Finland and UK is too early to conclude.
The gross expense ratio was 7.4 % down from 7.5 % in Q2-17. The gross expense ratio by country was:
| Gross expense ratio | Q2 2018 | Q2 2017 |
|---|---|---|
| Norw ay incl. Finland | 4,1 % | 2,2 % |
| Sw eden | 9,9 % | 16,0 % |
| Denmark | 7,2 % | 7,8 % |
| UK | 20,2 % | 28,8 % |
| Total | 7,4% | 7,5% |
The operating profit before tax totalled MNOK 122.0, down from 276.8m in H1-17. The H1-18 result is driven by a weak technical result in the period, a weak financial income result in Q1-18, and an improved financial income result in Q2-18.
The net profit for the first half year totalled to MNOK 51.4 compared to MNOK 246.0 in H1-17.
The net combined ratio was 97.5 %, 8.5 percentage points higher than the 88.9 % reported in H1-17.
The net combined ratio by country was:
| Net combined ratio | H1 2018 | H1 2017 |
|---|---|---|
| Norw ay incl. Finland | 106,8 % | 83,0 % |
| Sw eden | 78,9 % | 84,4 % |
| Denmark | 96,8 % | 103,7 % |
| UK | 92,1 % | 215,3 % |
| Total | 97,5% | 88,9% |
The net claims ratio was 96.3 %, up from 90.9 % in H1-17, while the net expense ratio was 1.2 %, up from -2.0 %.
In H1 the company had run-off losses of 3.1 % primarily driven by Change of Ownership.
The gross combined ratio was 98.5 %, down from 121.9 % in H1-17. The gross claims ratio was 90.7 % down from 114.6 %, the gross claims ratio by country was:
| Gross claims ratio | H1 2018 | H1 2017 |
|---|---|---|
| Norw ay incl. Finland | 102,8 % | 78,9 % |
| Sw eden | 70,6 % | 86,4 % |
| Denmark | 100,9 % | 97,5 % |
| UK | 59,9 % | 1230,6 % |
| Total | 90,7% | 114,6% |
The gross expense ratio was 7.8 % up from 7.4 % in Q2-17. The gross expense ratio by country was:
| Gross expense ratio | H1 2018 | H1 2017 |
|---|---|---|
| Norw ay incl. Finland | 5,4 % | 3,1 % |
| Sw eden | 10,7 % | 14,1 % |
| Denmark | 6,3 % | 7,0 % |
| UK | 17,5 % | 40,1 % |
| Total | 7,8% | 7,4% |
Profitability measures have been implemented the past half 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. 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 on 2018, but full effect from 01.01.2019.
The net investment portfolio amounted to a total of MNOK 10,467 at June 30th, 2018, up 13.7 % compared to the portfolio end of Q2-17.
Investment activities yielded a total return of MNOK 112.3 or 1.1 % compared to a return of MNOK 116.1 or 1.3 % in Q2-17. Equities accounted for a MNOK 75.4 gain (4.5%) against a MNOK 67.0 gain (4.0 %) in Q2-17. Return on the fixed income portfolio totalled to MNOK 36.9 (0.4 %) against MNOK 49.1 (0.7 %) in Q2-17.
In H1, the investment result was NOK 114.8 (1.1%) against NOK 142.6 (1,7%) in H1 2017. Equities accounted for a NOK 32.8 gain (1,9%) against NOK 15.6 gain (0,9%) in H1 2017. Return on the fixed income portfolio totalled NOK 82.0 or 1.0% against NOK 127.1 (1.9%) in H1 2017.
At the end of Q2-18, 14.7 % 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 196 % as of June 30 th , 2018. The company's goal is to maintain a solvency coverage ratio (calculated according to the Solvency II regulations) above 150%.
The Board is not satisfied with the weaker claims results and is taking action to improve the insurance technical result, as a consequence the growth is expected to be lower going forward.
Uncertainty in 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 2018.
Oslo, 12th June 2018
The Board of Directors of Protector Forsikring ASA
| Q2 2018 | Q2 2017 | H1 2018 | H1 2017 | FY 2017 | |
|---|---|---|---|---|---|
| Premium income | |||||
| Gross premiums earned | 1.195,0 | 927,3 | 2.265,8 | 1.785,9 | 3.805,5 |
| Reinsurers' share of earned premiums | (333,9) | (169,5) | (634,0) | (317,9) | (879,7) |
| Earned premiums, net of reinsurance | 861,1 | 757,8 | 1.631,8 | 1.468,0 | 2.925,9 |
| Other insurance-related income | 2,9 | 0,8 | 4,1 | 2,0 | 5,1 |
| Claims incurred | |||||
| Gross claims incurred | (1.064,7) | (1.262,0) | (2.055,3) | (2.046,3) | (4.054,2) |
| Reinsurers' share of claims incurred | 236,3 | 586,3 | 484,2 | 712,3 | 1.406,7 |
| Claims incurred, net of reinsurance | (828,4) | (675,7) | (1.571,1) | (1.334,0) | (2.647,5) |
| Operating expenses | |||||
| Sales costs | (50,7) | (25,1) | (104,0) | (40,2) | (158,1) |
| Administration costs | (37,4) | (44,9) | (73,1) | (91,2) | (122,5) |
| Commission from reinsurers | 59,3 | 58,3 | 157,7 | 159,9 | 204,1 |
| Total operating expenses, net of reinsurance | (28,8) | (11,7) | (19,4) | 28,6 | (76,5) |
| Other insurance-related expenses | (6,0) | (1,6) | (7,4) | (5,2) | (8,4) |
| Technical result | 0,8 | 69,6 | 38,0 | 159,4 | 198,6 |
| Net income from financial assets | 112,3 | 116,1 | 114,8 | 142,6 | 419,5 |
| Other income/expenses | (15,7) | (16,2) | (30,9) | (25,2) | (55,9) |
| Non-technical result | 96,6 | 99,9 | 84,0 | 117,5 | 363,6 |
| Profit before tax | 97,4 | 169,5 | 122,0 | 276,8 | 562,2 |
| Tax | (25,0) | (22,9) | (47,8) | (60,5) | (85,5) |
| Profit before components of comprehensive income | 72,4 | 146,6 | 74,2 | 216,4 | 476,7 |
| Actuarial gain and loss from defined benefit pension plans | - | - | - | - | (8,4) |
| Currency changes from foreign enterprise | (24,7) | 24,5 | (30,4) | 39,5 | 61,5 |
| Taxes on components of comprehensive income | 6,2 | (6,1) | 7,6 | (9,9) | (13,3) |
| Profit for the period | 53,8 | 165,0 | 51,4 | 246,0 | 516,5 |
| Earnings per share | 0,84 | 1,70 | 0,86 | 2,51 | 5,53 |
| Earnings per share, diluted | 0,84 | 1,70 | 0,86 | 2,51 | 5,53 |
| [1.000.000 NOK] | 30.06.2018 | 30.06.2017 | 31.12.2017 |
|---|---|---|---|
| Assets | |||
| Intangible fixed assets | |||
| Other intangible fixed assets | 24,0 | 16,1 | 20,9 |
| Total intangible fixed assets | 24,0 | 16,1 | 20,9 |
| Buildings and other real estates | |||
| Ow ner-occupied property | 13,7 | 13,7 | 13,5 |
| Total buildings and other real estates | 13,7 | 13,7 | 13,5 |
| Financial assets | |||
| Shares | 1.529,3 | 1.628,5 | 1.649,3 |
| Securities, bonds etc | 8.480,5 | 7.350,0 | 7.519,9 |
| Financial derivatives | 13,7 | 2,4 | 2,5 |
| Bank deposits | 448,0 | 231,0 | 210,2 |
| Total financial assets | 10.471,5 | 9.211,9 | 9.381,9 |
| Reinsurers share of gross technical provisions | |||
| Reinsurers share of gross premium provisions | 647,4 | 326,6 | 228,6 |
| Reinsurers share of gross claims provisions | 1.872,8 | 1.120,3 | 1.829,4 |
| Total reinsurers share of gross technical provisions | 2.520,2 | 1.446,9 | 2.058,0 |
| Receivables | |||
| Policyholders | 323,7 | 245,2 | 207,6 |
| Intermediaries | 151,0 | 133,2 | 81,6 |
| Other receivables | 22,6 | 18,8 | 10,3 |
| Total receivables | 497,2 | 397,2 | 299,5 |
| Other assets | |||
| Tangible fixed assets | 27,9 | 17,2 | 15,7 |
| Cash and bank deposits | 213,6 | 285,5 | 327,5 |
| Total other assets | 241,5 | 302,8 | 343,2 |
| Total prepaid expenses | 289,3 | 296,3 | 155,2 |
| Total assets | 14.057,4 | 11.685,0 | 12.272,1 |
| [1.000.000 NOK] | 30.06.2018 | 30.06.2017 | 31.12.2017 |
|---|---|---|---|
| Equity and liabilities | |||
| Shareholders' equity | |||
| Share capital [86.155.605 shares] | 86,2 | 86,2 | 86,2 |
| Other paid-in equity | 267,7 | 264,1 | 267,7 |
| Total paid-in equity | 353,8 | 350,2 | 353,8 |
| Earned equity | |||
| Natural perils fund | 46,6 | 23,8 | 22,7 |
| Guarantee scheme | 58,3 | 90,8 | 85,9 |
| Other equity | 2.163,5 | 1.852,4 | 2.128,8 |
| Total earned equity | 2.268,4 | 1.967,0 | 2.237,4 |
| Total equity | 2.622,2 | 2.317,2 | 2.591,3 |
| Subordinated loan capital | 1.243,3 | 1.241,4 | 1.243,3 |
| Technical provisions | |||
| Provisions for unearned premiums | 2.136,5 | 1.795,7 | 964,7 |
| Provisions for claims | 6.429,2 | 5.486,9 | 6.084,7 |
| Total technical provisions | 8.565,7 | 7.282,6 | 7.049,4 |
| Provisions for other risks and liabilities | |||
| Pension liabilities | 12,1 | 10,9 | 12,1 |
| Current tax liability | 12,8 | (4,4) | 42,7 |
| Deferred tax liability | 155,4 | 154,0 | 151,0 |
| Total provisions for other risks and liabilities | 180,3 | 160,5 | 205,8 |
| Liabilities | |||
| Liabilities in connection w ith insurance | 114,4 | 7,4 | 59,2 |
| Liabilities in connection w ith reinsurance | 1.038,4 | 273,2 | 671,6 |
| Financial derivatives | 4,6 | 0,0 | 9,2 |
| Other liabilities | 149,6 | 209,0 | 57,4 |
| Total liabilities | 1.307,0 | 489,7 | 797,5 |
| Incurred expenses and prepaid income | |||
| Other incurred expenses and prepaid income | 138,9 | 193,5 | 384,9 |
| Total incurred expenses and prepaid income | 138,9 | 193,5 | 384,9 |
| Total equity and liabilities | 14.057,4 | 11.685,0 | 12.272,1 |
| [1.000.000 NOK] | Q2 2018 | Q2 2017 | H1 2018 | H1 2017 | FY2017 |
|---|---|---|---|---|---|
| Cash flow from operations | |||||
| Premiums paid | 1.015,4 | 796,0 | 2.975,6 | 2.470,5 | 3.962,8 |
| Claims paid | (724,1) | (525,6) | (1.571,5) | (1.209,6) | (2.574,0) |
| Paid reinsurance | (14,2) | (187,5) | (98,5) | (106,3) | (13,7) |
| Paid operating expenses including commissions | (97,1) | 99,8 | (178,7) | (36,0) | (227,7) |
| Interest / dividend income | 71,6 | 64,9 | 119,3 | 111,9 | 273,1 |
| Net payments from financial instruments | 161,6 | (195,5) | (978,1) | (1.904,7) | (2.055,6) |
| Payable tax | 1,1 | (25,5) | (68,9) | (25,5) | (33,2) |
| Net cash flow from operations | 414,2 | 26,6 | 199,2 | (699,5) | (668,4) |
| Cash flow from investment activities | |||||
| Net investments in equities | - | - | - | (3,6) | |
| Investments in fixed assets | (22,0) | (3,2) | (25,5) | (13,6) | (25,1) |
| Net cash flow from investment activities | (22,0) | (3,2) | (25,5) | (17,2) | (25,1) |
| Cash flow from financial activities | |||||
| Dividend paid | - | (193,8) | - | (193,8) | (193,8) |
| Net payment on subordinated loan capital | - | (154,5) | - | 595,5 | 597,4 |
| Interest payments on subordinated loan capital | (15,6) | (17,9) | (30,2) | (26,8) | (56,3) |
| Net cash flow from financial activities | (15,6) | (366,2) | (30,2) | 374,9 | 347,2 |
| Net cash flow for the period | 376,6 | (342,8) | 143,5 | (341,8) | (346,3) |
| Net change in cash and cash equivalents | 376,6 | (342,8) | 143,5 | (341,8) | (346,3) |
| Cash and cash equivalents opening balance | 293,1 | 862,8 | 537,7 | 856,1 | 856,1 |
| Effects of exchange rate changes on cash and cash equivalents | (8,1) | (3,5) | (19,5) | 2,3 | 27,9 |
| Cash and cash equivalents closing balance | 661,6 | 516,6 | 661,6 | 516,6 | 537,7 |
| Share Capital |
Own shares |
Other paid in equity |
Natural perils fund |
Guarantee scheme |
Other 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 | |
| Ow n 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 | |
| Ow n 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 | |
| Ow n 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) | |||||
| Ow n 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 |
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. Finland | Sweden | Denmark | UK | ||||||
|---|---|---|---|---|---|---|---|---|---|
| [1.000.000 NOK] | Q2 2018 | Q2 2017 | Q2 2018 | Q2 2017 | Q2 2018 | Q2 2017 | Q2 2018 | Q2 2017 | |
| Gross premiums written | 482,7 | 527,9 | 294,1 | 204,0 | 10,4 | 17,7 | 230,3 | 140,8 | |
| Gross premiums earned | 595,4 | 511,3 | 319,6 | 214,6 | 187,1 | 161,0 | 92,9 | 40,4 | |
| Gross claims incurred | (590,2) | (330,2) | (239,6) | (180,8) | (177,9) | (174,8) | (57,0) | (576,2) | |
| Earned premiums, net of reinsurance | 479,9 | 461,8 | 216,2 | 161,8 | 121,8 | 114,5 | 43,2 | 19,7 | |
| Other insurance related income | 1,5 | 1,0 | 0,1 | 0,0 | 1,0 | 0,0 | 0,4 | (0,2) | |
| Claims incurred, net of reinsurance | (492,7) | (333,6) | (171,7) | (142,8) | (126,2) | (152,2) | (37,8) | (47,1) | |
| Sales cost | (11,5) | (0,7) | (23,3) | (19,8) | (2,9) | - | (13,0) | (4,6) | |
| Administration cost | (12,7) | (10,6) | (8,3) | (14,7) | (10,6) | (12,6) | (5,7) | (7,0) | |
| Commission from reinsurer | 7,8 | 9,4 | 19,1 | 21,8 | 7,5 | 13,5 | 24,9 | 13,6 | |
| Other insurance related expenses | 5,2 | (1,8) | (12,6) | (0,1) | 1,2 | (0,0) | 0,2 | 0,3 | |
| Technical result | (22,6) | 125,5 | 19,5 | 6,3 | (8,3) | (36,9) | 12,2 | (25,3) | |
| Other income/costs | (15,7) | (16,1) | (0,0) | (0,0) | (0,0) | (0,0) | 0,0 | - | |
| Net financial income | 104,2 | 101,3 | 7,1 | 3,1 | 0,9 | 11,7 | 0,1 | - | |
| Profit before tax | 65,9 | 210,7 | 26,5 | 9,4 | (7,4) | (25,2) | 12,3 | (25,3) | |
| Claims ratio, net of ceded business | (1) | 102,7 % | 72,2 % | 79,4 % | 88,3 % | 103,7 % | 133,0 % | 87,5 % | 238,7 % |
| Expense ratio, net of ceded business | (2) | 3,4 % | 0,4 % | 5,8 % | 7,8 % | 4,9 % | -0,7 % | -14,2 % | -10,2 % |
| Combined ratio, net of ceded business | (3) | 106,1 % | 72,6 % | 85,2 % | 96,1 % | 108,6 % | 132,2 % | 73,2 % | 228,5 % |
| Gross claims ratio | (4) | 99,1 % | 64,6 % | 75,0 % | 84,3 % | 95,1 % | 108,5 % | 61,4 % | 1426,6 % |
| Gross expense ratio | (5) | 4,1 % | 2,2 % | 9,9 % | 16,0 % | 7,2 % | 7,8 % | 20,2 % | 28,8 % |
| Gross combined ratio | (6) | 103,2 % | 66,8 % | 84,9 % | 100,3 % | 102,3 % | 116,4 % | 81,5 % | 1455,4 % |
(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. Finland | Sweden | Denmark | UK | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| [1.000.000 NOK] | H1 2018 | H1 2017 | FY 2017 | H1 2018 | H1 2017 | FY 2017 | H1 2018 | H1 2017 | FY 2017 | H1 2018 | H1 2017 | FY 2017 |
| Gross premiums written | 1.486,7 | 1.420,2 | 2.128,3 | 997,0 | 773,6 | 1.078,3 | 704,4 | 627,0 | 703,6 | 290,4 | 157,1 | 252,9 |
| Gross premiums earned | 1.110,1 | 998,2 | 2.035,1 | 610,2 | 410,5 | 915,8 | 383,2 | 329,8 | 700,0 | 162,3 | 47,4 | 154,7 |
| Gross claims incurred | (1.140,8) | (787,3) | (1.702,0) | (430,5) | (354,7) | (719,7) | (386,7) | (321,5) | (676,5) | (97,2) | (582,7) | (956,0) |
| Earned premiums, net of reinsurance | 887,8 | 891,6 | 1.719,9 | 413,8 | 316,3 | 663,9 | 254,0 | 234,3 | 467,4 | 76,2 | 25,8 | 74,6 |
| Other insurance related income | 2,4 | 1,5 | 3,7 | 0,2 | 0,0 | 0,1 | 1,1 | 0,0 | 0,9 | 0,4 | 0,4 | 0,4 |
| Claims incurred, net of reinsurance | (918,9) | (747,2) | (1.502,9) | (325,1) | (261,4) | (523,1) | (257,6) | (273,8) | (524,0) | (69,6) | (51,6) | (97,5) |
| Sales cost | (29,2) | (1,4) | (44,0) | (49,1) | (33,7) | (84,3) | (7,6) | - | (16,2) | (18,0) | (5,1) | (13,6) |
| Administration cost | (30,4) | (29,8) | (37,0) | (15,9) | (24,2) | (38,6) | (16,4) | (23,2) | (26,5) | (10,4) | (13,9) | (20,5) |
| Commission from reinsurer | 30,7 | 38,7 | 53,2 | 63,4 | 52,2 | 68,8 | 35,8 | 54,1 | 57,5 | 27,8 | 15,0 | 24,6 |
| Other insurance related expenses | 4,0 | (5,0) | (7,9) | (12,7) | (0,1) | (0,2) | 1,1 | (0,0) | (0,1) | 0,2 | (0,1) | (0,2) |
| Technical result | (53,7) | 148,4 | 185,1 | 74,7 | 49,1 | 86,5 | 10,4 | (8,7) | (40,8) | 6,7 | (29,5) | (32,3) |
| Other income/costs | (30,7) | (24,8) | (55,6) | (0,1) | (0,2) | (0,3) | (0,0) | (0,1) | 0,0 | 0,0 | - | - |
| Net financial income | 92,2 | 114,0 | 373,0 | 19,1 | 11,2 | 35,3 | 3,5 | 17,5 | 11,2 | 0,1 | - | 0,0 |
| Profit before tax | 7,7 | 237,5 | 502,6 | 93,7 | 60,1 | 121,5 | 13,8 | 8,7 | (29,6) | 6,7 | (29,5) | (32,3) |
| Claims ratio, net of ceded business | 103,5 % | 83,8 % | 87,4 % | 78,6 % | 82,6 % | 78,8 % | 101,4 % | 116,9 % | 112,1 % | 91,3 % | 199,8 % | 130,7 % |
| Expense ratio, net of ceded business | 3,3 % | -0,8 % | 1,6 % | 0,4 % | 1,8 % | 8,2 % | -4,6 % | -13,2 % | -3,2 % | 0,8 % | 15,5 % | 12,7 % |
| Combined ratio, net of ceded business | 106,8 % | 83,0 % | 89,0 % | 78,9 % | 84,4 % | 87,0 % | 96,8 % | 103,7 % | 108,9 % | 92,1 % | 215,3 % | 143,4 % |
| Gross claims ratio | 102,8 % | 78,9 % | 83,6 % | 70,6 % | 86,4 % | 78,6 % | 100,9 % | 97,5 % | 96,6 % | 59,9 % | 1230,6 % | 618,0 % |
| Gross expense ratio | 5,4 % | 3,1 % | 4,0 % | 10,7 % | 14,1 % | 13,4 % | 6,3 % | 7,0 % | 6,1 % | 17,5 % | 40,1 % | 22,1 % |
| Gross combined ratio | 108,1 % | 82,0 % | 87,6 % | 81,2 % | 100,5 % | 92,0 % | 107,2 % | 104,5 % | 102,7 % | 77,4 % | 1270,7 % | 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] | Q2 2018 | Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | Q1 2017 | Q4 2016 | Q3 2016 | Q2 2016 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross premiums written | 1.017,5 | 2.461,0 | 540,2 | 645,1 | 890,5 | 2.087,4 | 392,3 | 412,8 | 721,8 | |
| Gross premiums earned | 1.195,0 | 1.070,9 | 997,5 | 1.022,2 | 927,3 | 858,6 | 768,6 | 825,9 | 873,0 | |
| Gross claims incurred | (1.064,7) | (990,6) | (901,2) | (1.106,6) | (1.262,0) | (784,4) | (740,3) | (775,5) | (781,4) | |
| Earned premiums, net of reinsurance | 861,1 | 770,7 | 708,3 | 749,6 | 757,8 | 710,2 | 624,7 | 692,3 | 720,4 | |
| Claims incurred, net of reinsurance | (828,4) | (742,7) | (667,5) | (646,0) | (675,7) | (658,3) | (632,6) | (618,8) | (679,0) | |
| Net commission income | 30,4 | 67,9 | (57,6) | 20,2 | 51,1 | 86,6 | (9,7) | 8,6 | 34,3 | |
| Internal sales cost | (21,8) | (22,7) | (18,4) | (17,9) | (17,9) | (16,8) | (20,7) | (14,4) | (12,0) | |
| Operating expenses | (37,4) | (35,8) | 24,4 | (55,7) | (44,9) | (29,5) | (20,4) | (47,6) | (18,7) | |
| Other insurance-related income/expenses | (3,1) | (0,2) | (0,5) | 0,4 | (0,8) | (2,4) | (11,8) | (1,4) | (3,2) | |
| Technical result | 0,8 | 37,2 | (11,4) | 50,6 | 69,6 | 89,8 | (70,4) | 18,6 | 41,8 | |
| Other income/costs | (15,7) | (15,1) | (14,4) | (16,3) | (16,2) | (9,0) | (9,0) | (8,9) | (7,4) | |
| Net financial income | 112,3 | 2,5 | 161,9 | 114,9 | 116,1 | 26,6 | 149,9 | 160,7 | 220,5 | |
| Profit before tax | 97,4 | 24,6 | 136,2 | 149,1 | 169,5 | 107,3 | 70,5 | 170,5 | 254,9 | |
| Tax | (25,0) | (22,8) | (1,9) | (23,1) | (22,9) | (37,5) | (1,4) | (27,3) | (31,1) | |
| Profit before components of comp.income | 72,4 | 1,8 | 134,3 | 126,0 | 146,6 | 69,8 | 69,1 | 143,2 | 223,8 | |
| Components of comprehensive income | (24,7) | (5,7) | 31,4 | (17,9) | 24,5 | 15,0 | 19,2 | (13,0) | (1,5) | |
| Taxes on components of comprehensive income | 6,2 | 1,4 | (7,9) | 4,5 | (6,1) | (3,7) | (4,9) | 3,4 | 0,4 | |
| Profit for the period | 53,8 | (2,4) | 157,9 | 112,6 | 165,0 | 81,0 | 83,3 | 133,6 | 222,7 | |
| Claims ratio, net of ceded business | (1) | 96,2 % | 96,4 % | 94,2 % | 86,2 % | 89,2 % | 92,7 % | 101,3 % | 89,4 % | 94,3 % |
| Expense ratio, net of ceded business | (2) | 3,3 % | -1,2 % | 7,3 % | 7,1 % | 1,5 % | -5,7 % | 8,1 % | 7,7 % | -0,5 % |
| Combined ratio, net of ceded business | (3) | 99,5 % | 95,1 % | 101,5 % | 93,3 % | 90,7 % | 87,0 % | 109,4 % | 97,1 % | 93,7 % |
| Gross claims ratio | (4) | 89,1 % | 92,5 % | 90,4 % | 108,3 % | 136,1 % | 91,4 % | 96,3 % | 93,9 % | 89,5 % |
| Gross expense ratio | (5) | 7,4 % | 8,3 % | 7,5 % | 7,3 % | 7,5 % | 7,1 % | 6,9 % | 9,1 % | 5,1 % |
| Gross combined ratio | (6) | 96,5 % | 100,8 % | 97,8 % | 115,5 % | 143,6 % | 98,5 % | 103,3 % | 103,0 % | 94,6 % |
(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 | 243 | 1.286 | 0 | 1.529 |
| Bonds and other fixed income securities | NOK | 0 | 8.481 | 0 | 8.481 |
| Cash and cash equivalents | NOK | 448 | 0 | 448 | |
| Foreign currency contracts | NOK | 0 | 14 | 0 | 14 |
| T o tal assets 30.06.2018 | N OK | 691 | 9.780 | 10.472 | |
| Total assets 30.06.2017 | NOK | 1.722 | 7.490 | 9.212 | |
| 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 | -5 | - 5 | ||
| T o tal financial liabilities 30.06.2018 | N OK | - 5 | - 5 | ||
| Total financial liabilities 30.06.2017 | NOK | 0 | 0 |
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] | 30.06.2018 | 30.06.2017 | 31.12.2017 |
|---|---|---|---|
| Total solvency capital requirement | 1.885 | 1.812 | 1.834 |
| Total eligible ow n funds to meet SCR | 3.704 | 3.217 | 3.656 |
| Ratio of Eligible ow n funds to SCR | 196 % | 177 % | 199 % |
| Totalt minimum capital requirement | 848 | 816 | 773 |
| Ratio of Eligible ow n funds to MCR | 346 % | 303 % | 374 % |
We confirm, to the best of our knowledge, that the condensed set of financial statements for the period 1 January to 30 June 2018 has been prepared in accordance with Norwegian Accounting Act, financial statement regulations for insurance companies, IAS 34 – Interim Financial Reporting and generally accepted accounting principles, and gives a true and fair view of the Company's assets, liabilities, financial position and profit and loss as a whole.
We also confirm, to the best of our knowledge, that the interim management report includes a fair review of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements, a description of the principal risks and uncertainties for the remaining six months of the financial year, and major related parties transactions.
Oslo, 12th July 2018
The Board of Directors of Protector Forsikring ASA
Jostein Sørvoll Erik G. Braathen Else Bugge Fougner Jørgen Stenshagen (Chairman) Randi Helene Røed Mathews V. Ambalathil Line Engelmann-Kokkim
Sverre Bjerkeli (CEO)
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.