Protector Forsikring

Quarterly Report • Apr 27, 2022

INTERIM REPORT Q1 2022 PROTECTOR FORSIKRING ASA

(UNAUDITED) APRIL 27TH 2022

Highlights Q1 2022

CR 97.0% and 8 % volume growth

Protector Forsikring ASA recorded a loss of NOK -44.7m (NOK 572.8m) for the quarter. The technical result was NOK 31.6m (NOK 92.0m) impacted by significantly higher large loss ratio compared with Q1 2021. The combined ratio was 97.0% (91.1%). The return on investments was NOK -9.9m (NOK 580.5m) or -0.1 % (4.0 %). Equity markets posted significantly weakened returns while widening spreads and rising interest rates impacted the fixed income portfolio negatively.

Gross written premiums increased by 11 % in local currencies. The growth is driven by the Nordic countries and is supported by continued good price increases and a low client churn.

The Board has utilised its authorisation granted by the Annual General Meeting 7 th April 2022 and has resolved to distribute a dividend of NOK 123.6 million, corresponding to NOK 1.50 per share.

End of Q1 2022, the SCR-ratio was 200 % (216 %) post dividends.

Q1 2022 shows following development compared to Q1 2021:

• Premium growth in local currencies of 11 % (1 %)
• Net combined ratio 97.0 % (91.1 %)
• Net return on investments NOK -9.9m (NOK 580.5m), or -0.1 % (4.0 %)
• Profit for the quarter NOK -44.7m (NOK 572.8m)
• Solvency ratio of 200 % (216 %)

Financial highlights and key ratios

NOKm		Q1 2022	Q1 2021	FY 2021
Gross premiums written		3 110,7	2 880,2	5 950,6
Earned premiums, net of reinsurance		1 336,5	1 175,2	4 920,7
Claims incurred, net of reinsurance		(1 157,9)		(922,8) (3 810,1)
Sales cost		(92,8)	(101,5)	(361,7)
Administration cost		(59,7)	(81,8)	(256,6)
Commission from reinsurer		13,4	35,6	130,7
Other insurance related income/expenses		(7,9)	(12,8)	(28,7)
Technical result		31,6	92,0	594,4
Other income/costs		(14,4)	(17,2)	(56,4)
Net financial income		(9,2)	523,0	878,3
Profit before tax		8,0	597,8	1 416,3
Tax		(25,2)	(71,0)	(251,7)
Discontinued operations		(3,4)	50,6	67,4
Net comprehensive income		(24,2)	(4,7)	(28,1)
Profit for the period		(44,7)	572,8	1 204,0
Claims ratio, net of reinsurance	(1)	86,6 %	78,5 %	77,4 %
Expense ratio, net of reinsurance	(2)	10,4 %	12,6 %	9,9 %
Combined ratio, net of reinsurance	(3)	97,0 %	91,1 %	87,3 %
Gross claims ratio	(4)	83,3 %	74,6 %	77,8 %
Gross expense ratio	(5)	10,0 %	13,2 %	10,8 %
Gross combined ratio	(6)	93,3 %	87,8 %	88,5 %
Retention rate	(7)	87,6 %	84,7 %	85,6 %
Earnings per share	(8)	(0,2)	7,0	15,0

(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

(7) Earned premiums, net of reinsurance in % of gross earned premiums

(8) Profit before other comprehensive income divided by weighted number of shares

Premiums

Gross premiums written increased by 8 % or NOK 230.5m to a total of NOK 3,110.7m. The growth is driven by the Nordic countries. In local currencies the growth was 11 %, whereof the growth in the Nordics was 14% and, in the UK -19 %. The negative growth in the UK is due to the change of inception date for a large customer in an otherwise small volume quarter. The renewal rate for the total portfolio was 90.7 % (89.3 %) supported by price increases of 7.9 %.

The growth per country is presented in the table below.

Gross premiums written (NOKm)	Q1 2022	Q1 2021		Growth
Norway	955,3	856,3	99,0	12 %
Sweden	943,0	895,1	47,9	5 %
Denmark	812,2	726,9	85,3	12 %
UK	195,8	237,7	-41,9	-18 %
Finland	204,3	164,2	40,1	24 %
Total	3110,7	2880,2	230,5	8 %
Results
weaker results in the Scandinavian countries.
Net combined ratio	Q1 2022	Q1 2021

The good volume development we have experienced in Q1 has continued in Q2.

Results

The profit totalled NOK -44.7m against NOK 572.8m in Q1 2021. The technical result was NOK 31.6m (NOK 92.0m), corresponding to a net combined ratio of 97.0 %, 5.9 percentage points higher than 91.1 %, as reported in Q1 2021. A good result in the UK and Finland were offset by weaker results in the Scandinavian countries.

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

Norway	98,9 %	94,2 %
Sweden	98,1 %	78,4 %
Denmark	107,7 %	90,6 %
UK	88,7 %	102,2 %
Finland	83,8 %	107,5 %
Total	97,0 %	91,1 %

In Q1, the company had run-off gains of 3.6 % against 0.1 % in Q1 2021.

The claims ratio for own account increased from 78.5 % in Q1 2021 to 86.6 % in Q1 2022. The large loss-ratio for own account was higher than normalized and 9.5 percentage points higher than in Q1 2021. Additionally, the Covid-19 pandemic had in Q1-21 a positive impact on the net claims ratio of 2.0 percentage points compared to no measurable impact in Q1 2022.

The net claims ratio by country is provided in the table below:

Net claims ratio	Q1 2022	Q1 2021
Norway	91,9 %	83,7 %
Sweden	85,8 %	65,1 %
Denmark	99,3 %	84,1 %
UK	73,9 %	83,2 %
Finland	81,4 %	98,3 %
Total	86,6 %	78,5 %

The expense ratio for own account amounted to 10.4 %, down from 12.6 % in Q1 2021. The decrease is mainly due to premium growth and lower personnel costs. To some degree the lower costs are

offset by higher broker commissions due to premium growth (earned premiums) in the UK and Sweden.

The net expense ratio by country is provided in the table below:

Net expense ratio	Q1 2022	Q1 2021
Norway	6,9 %	10,5 %
Sweden	12,4 %	13,3 %
Denmark	8,4 %	6,5 %
UK	14,9 %	19,0 %
Finland	2,4 %	9,2 %
Total	10,4 %	12,6 %

Discontinued operations

In Q1, the technical result for discontinued operations (change of ownership insurance) was NOK -0.9m (NOK 1.7m) and the profit for the quarter was NOK -3.4m (NOK 50.6m). The company stopped to sell change of ownership insurance as from January 1st 2022, and the few remaining distribution agreements with real estate brokers have been terminated.

Investment return

The net investment portfolio amounted to a total of NOK 14,829m at 31 March 2022, up 3.6 % compared to the portfolio at the end of 2021.

The investment activities yielded a total return of NOK -9.9m (-0.07 %) compared to NOK 580.5m (4.0 %) in Q1 2021. Equities accounted for a NOK -12.3m loss (-0.52 %) against a NOK 488.8m gain (25.9 %) in Q1 2021. The return on the fixed income portfolio totalled NOK 2.4m (0.02 %) against NOK 91.7m (0.7 %) in Q1 2021.

Our investment portfolio has a very limited direct exposure to Ukraine and/or Russia. Furthermore, we have no investments in the oil and oil service sector.

End of Q1, 16.2 % of Protector's financial assets were invested in equities, against 15.1 % year-end 2021. 22 % of our total financial assets were allocated to high yield, down from 24 % year-end 2021.

Equity and capital position

End of Q1, the volatility adjusted SCR-ratio using the standard formula was 200 % after distribution of dividends, down from 206 % year-end 2021. The company's long-term objective is to maintain a SCRratio (calculated according to the Solvency II regulations) above 150 %.

On 10 February, Protector Forsikring ASA successfully placed a subordinated loan of NOK 400m. The terms of the loan comply with existing and expected future requirements for subordinated debt eligible as Tier 2 capital. The bonds will be listed on Euronext Oslo Børs. Protector has in March exercised its rights to call two loans eligible as restricted Tier 1 capital (NOK 350m) and Tier 2 capital (NOK 400m). Both loans had repayment date 31 March.

The company's equity amounted to NOK 3,290.3m, a decrease of NOK 291.8m compared to the equity at the end of 2021. Dividends paid out 16 February have reduced the equity by NOK 247.1m. In Q2, other equity will be further reduced with the dividend payments in April (NOK 576.6m) and May (NOK 123.6m).

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

Dividend

Based on the company's strong financial position, position in the market and dividend policy, the Board has resolved to distribute a dividend of NOK 123.6m, corresponding to NOK 1.50 per share. The resolved dividend is included in other equity and will be paid out May 12 th 2022.

Prospects

The technical result was somewhat weak this quarter, but underlying profitability is good and the technical result is expected to be improved.

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, 27th April 2022

The Board of Directors of Protector Forsikring ASA

Income statement

NOKm	Q1 2022	Q1 2021	FY 2021
Premium income
Gross written premiums	3 110,7	2 880,2	5 950,6
Change in provisions for unearned premiums	(1 585,7)	(1 492,3)	(204,5)
Gross premiums earned	1 525,0	1 387,9	5 746,1
Reinsurers' share of earned premiums	(188,5)	(212,7)	(825,3)
Earned premiums, net of reinsurance	1 336,5	1 175,2	4 920,7
Other insurance-related income	1,8	2,9	8,7
Gross claims incurred	(1 270,6)	(1 035,2) (4 468,4)
Reinsurers' share of claims incurred	112,7	112,4	658,3
Claims incurred, net of reinsurance	(1 157,9)		(922,8) (3 810,1)
Operating expenses
Sales costs	(92,8)	(101,5)	(361,7)
Administration costs	(59,7)	(81,8)	(256,6)
Commission from reinsurers	13,4	35,6	130,7
Total operating expenses, net of reinsurance	(139,1)	(147,6)	(487,6)
Other insurance-related expenses	(9,8)	(15,7)	(37,4)
Technical result	31,6	92,0	594,4
Income from associated companies	9,0	-	10,8
Interest income and dividend from financial assets	122,4	51,9	331,7
Changes in value on investments	(263,7)	420,8	(21,8)
Realised gain and loss on investments	125,5	90,4	620,6
Administration expenses related to investments	(2,5)	(40,1)	(62,9)
Net income from financial assets	(9,2)	523,0	878,3
Other income	0,2	0,0	2,0
Other expenses	(14,6)	(17,2)	(58,4)
Other income/expenses	(14,4)	(17,2)	(56,4)
Non-technical result	(23,6)	505,8	821,9
Profit before tax	8,0	597,8	1 416,3
Tax	(25,2)	(71,0)	(251,7)
Discontinued operations	(3,4)	50,6	67,4
Profit before components of comprehensive income	(20,5)	577,4	1 232,1
Actuarial gain and loss from defined benefit pension plans	-	-	(1,0)
Currency changes from foreign enterprise	(32,2)	(6,2)	(36,5)
Taxes on components of comprehensive income	8,1	1,5	9,4
Profit for the period	(44,7)	572,8	1 204,0
Earnings per share	(0,25)	7,02	14,96
Earnings per share, diluted	(0,25)	7,02	14,96

Statement of financial position

NOKm	31.03.2022	31.03.2021	31.12.2021
Assets
Intangible fixed assets
Other intangible fixed assets	78,5	59,5	73,3
Total intangible fixed assets	78,5	59,5	73,3
Financial assets
Shares in associated companies	137,4	-	127,3
Shares	2 035,1	2 122,0	1 824,4
Securities, bonds etc	9 776,3	9 318,9	9 179,3
Financial derivatives	92,3	73,0	94,1
Bank deposits	1 890,7	1 959,6	1 935,5
Total financial assets	13 931,9	13 473,5	13 160,7
Reinsurers share of gross technical provisions
Reinsurers share of gross premium provisions	288,3	304,1	177,1
Reinsurers share of gross claims provisions	2 691,8	2 922,3	2 972,2
Total reinsurers share of gross technical provisions	2 980,0	3 226,4	3 149,3
Receivables
Policyholders	609,1	496,0	523,2
Other receivables	140,8	66,7	95,3
Total receivables	749,9	562,6	618,5
Other assets
Tangible fixed assets	32,3	27,8	34,0
Cash and bank deposits	165,9	165,5	300,0
Total other assets	198,1	193,3	333,9
Total prepaid expenses	807,1	618,8	462,5
Assets discontinued operations	1 245,2	1 876,4	1 448,0
Total assets	19 990,6	20 010,5	19 246,3

Statement of financial position

NOKm	31.03.2022	31.03.2021	31.12.2021
Equity and liabilities
Shareholders' equity
Share capital [82.500.000 shares]	82,5	86,2	82,5
Own shares	(0,1)	(3,8)	(0,1)
Other paid-in equity	267,7	267,7	267,7
Total paid-in equity	350,0	350,0	350,0
Earned equity
Natural perils capital	89,8	76,4	97,7
Guarantee scheme provision	76,8	83,6	78,2
Fund for valuation differences	18,9	-	10,0
Other equity	2 754,7	3 074,5	3 046,2
Total earned equity	2 940,3	3 234,5	3 232,1
Total equity	3 290,3	3 584,5	3 582,1
Subordinated loan capital	1 244,8	1 472,9	1 384,7
Technical provisions
Provisions for unearned premiums	3 102,6	2 823,7	1 575,5
Provisions for claims	8 398,5	7 696,5	8 404,1
Total technical provisions	11 501,2	10 520,2	9 979,6
Provisions for other risks and liabilities
Pension liabilities	-	17,9	-
Current tax liability	-	(3,8)	191,2
Deferred tax liability	121,6	143,6	121,6
Total provisions for other risks and liabilities	121,6	157,7	312,8
Liabilities
Liabilities in connection with insurance	260,3	205,1	73,4
Liabilities in connection with reinsurance	2 217,1	2 451,6	2 238,3
Financial derivatives	116,8	59,7	26,1
Other liabilities	277,7	264,6	286,6
Total liabilities	2 872,0	2 981,0	2 624,4
Incurred expenses and prepaid income
Other incurred expenses and prepaid income	262,5	270,6	528,9
Total incurred expenses and prepaid income	262,5	270,6	528,9
Liabilites discontinued operations	698,4	1 023,7	833,8
Total equity and liabilities	19 990,6	20 010,5	19 246,3

Cash flow statement

NOKm	Q1 2022	Q1 2021	FY 2021
Cash flow from operations
Premiums paid	2 553,2	2 342,9	5 884,3
Claims paid	(1 192,9)	(1 041,9)	(3 934,5)
Paid reinsurance	(73,1)	(221,3)	(351,8)
Paid operating expenses including commissions	(7,6)	(70,7)	(440,1)
Interest / dividend income	130,6	56,9	358,1
Net payments from financial instruments	(942,6)	(972,1)	(372,1)
Payable tax	(254,7)	(23,1)	(173,9)
Net cash flow from operations	213,0	70,7	969,9
Cash flow from investment activities
Investments in fixed assets	(10,6)	(10,7)	(52,8)
Net cash flow from investment activities	(10,6)	(10,7)	(52,8)
Cash flow from financial activities
Dividend paid	(247,1)		(659,5)
Net payment on subordinated loan capital	(139,9)	(0,1)	(88,4)
Interest payments on subordinated loan capital	(15,1)	(16,9)	(61,6)
Net cash flow from financial activities	(402,1)	(17,0)	(809,5)
Net cash flow for the period	(199,8)	42,9	107,6
Net change in cash and cash equivalents	(199,8)	42,9	107,6
Cash and cash equivalents opening balance	2 407,2	2 312,1	2 312,1
Effects of exchange rate changes on cash and cash equivalents	(12,7)	(12,8)	(12,5)
Cash and cash equivalents closing balance	2 194,7	2 342,3	2 407,2

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 31.12.2020	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
Profit for the period				(7,9)	(1,4)	9,0	(44,4)	(44,7)
Dividend paid							(247,1)	(247,1)
Equity at 31.03.2022	82,5	(0,1)	267,7	89,8	76,8	18,9	2 754,7	3 290,3

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 2021. 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 2021 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.

	Norway		Sweden		Denmark		UK		Finland
NOKm	Q1 2022	Q1 2021	Q1 2022	Q1 2021	Q1 2022	Q1 2021	Q1 2022	Q1 2021	Q1 2022	Q1 2021
Gross premiums written	955,3	856,3	943,0	895,1	812,2	726,9	195,8	237,7	204,3	164,2
Gross premiums earned	372,2	342,8	449,1	434,3	243,8	207,3	387,5	333,8	72,5	69,7
Gross claims incurred	(331,2)	(233,3)	(389,1)	(265,4)	(235,4)	(214,8)	(256,2)	(250,8)	(58,8)	(70,8)
Earned premiums, net of reinsurance	337,8	305,4	410,8	373,0	218,9	180,2	302,6	254,3	66,3	62,3
Other insurance related income	0,9	1,2	0,1	0,1	0,1	0,4	0,0	0,2	0,8	1,0
Claims incurred, net of reinsurance	(310,6)	(255,6)	(352,4)	(242,9)	(217,4)	(151,5)	(223,5)	(211,6)	(54,0)	(61,3)
Sales cost	(12,4)	(18,0)	(40,4)	(37,8)	(5,5)	(9,6)	(33,2)	(35,0)	(1,2)	(1,0)
Administration cost	(13,1)	(12,5)	(14,8)	(25,8)	(12,5)	(12,0)	(17,8)	(26,7)	(1,4)	(4,7)
Commission from reinsurer	2,2	(1,6)	4,5	13,9	(0,4)	9,9	6,1	13,5	0,9	(0,0)
Other insurance related expenses	(4,8)	(5,8)	(0,6)	0,0	(2,4)	(5,8)	(1,7)	(3,9)	(0,4)	(0,3)
Technical result	(0,0)	13,0	7,1	80,5	(19,1)	11,6	32,5	(9,2)	11,1	(4,0)
Other income/costs	(14,7)	(16,1)	(0,1)	(1,2)	0,1	(0,8)	0,3	0,9	0,0	(0,0)
Net financial income	9,8	485,9	(7,1)	30,8	(4,6)	(1,1)	5,7	0,9	(13,0)	6,5
Profit before tax	(4,9)	482,8	(0,2)	110,2	(23,6)	9,7	38,6	(7,4)	(1,9)	2,5
Claims ratio, net of reinsurance (1)	91,9 %	83,7 %	85,8 %	65,1 %	99,3 %	84,1 %	73,9 %	83,2 %	81,4 %	98,3 %
Expense ratio, net of reinsurance (2)	6,9 %	10,5 %	12,4 %	13,3 %	8,4 %	6,5 %	14,9 %	19,0 %	2,4 %	9,2 %
Combined ratio, net of reinsurance (3)	98,9 %	94,2 %	98,1 %	78,4 %	107,7 %	90,6 %	88,7 %	102,2 %	83,8 %	107,5 %
Gross claims ratio (4)	89,0 %	68,1 %	86,6 %	61,1 %	96,6 %	103,6 %	66,1 %	75,2 %	81,1 %	101,6 %
Gross expense ratio (5)	6,9 %	8,9 %	12,3 %	14,7 %	7,4 %	10,4 %	13,2 %	18,5 %	3,5 %	8,2 %
Gross combined ratio (6)	95,8 %	77,0 %	98,9 %	75,7 %	104,0 %	114,0 %	79,3 %	93,7 %	84,7 %	109,8 %

(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

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 1 st 2020.

Protector has from January 1st 2022, when the new Real Property Sale Act entered into force, stopped writing new COI business.

Income statement discontinued operations

NOKm	Q1 2022	Q1 2021	FY 2021
Gross premiums earned	1,8	46,5	188,7
Reinsurers' share of earned premiums	(0,1)	(4,6)	(18,8)
Earned premiums, net of reinsurance	1,6	41,9	169,9
Gross claims incurred	(7,3)	(46,1)	(202,2)
Reinsurers' share of claims incurred	5,6	7,0	47,5
Claims incurred, net of reinsurance	(1,7)	(39,1)	(154,7)
Total operating expenses, net of reinsurance	(0,0)	0,2	1,2
Other insurance-related income/expenses	(0,8)	(1,3)	(5,6)
Technical result	(0,9)	1,7	10,8
Net income from financial assets	(0,7)	57,5	76,2
Other income/expenses	(1,1)	(1,7)	(5,0)
Non-technical result	(1,7)	55,8	71,2
Profit before tax	(2,6)	57,5	82,0
Tax	(0,7)	(6,8)	(14,6)
Profit for the period	(3,4)	50,6	67,4

Financial assets, fair value estimation

Financial assets through profit or loss [NOKm]	Currency	Level 1	Level 2	Level 3	Total
Shares	NOK	451,9	1 730,8		2 182,7
Bonds and other fixed income securities	NOK		10 200,4	284,5	10 484,9
Cash and cash equivalents	NOK	2 027,9			2 027,9
Derivatives:
Foreign currency contracts	NOK		81,2		81,2
Options	NOK		17,8		17,8
Total assets 31.03.2022	NOK	2 479,8	12 030,2	284,5	14 794,5
Total assets 31.03.2021	NOK	2 495,3	12 460,1		14 955,4

Financial liabilities at fair value through profit or loss [NOKm]	Currency	Level 1	Level 2	Level 3	Total
Foreign exchange contracts	NOK		(116,8)		(116,8)
Other financial liabilities	NOK	(47,4)			(47,4)
Total financial liabilities 31.03.2022	NOK	(47,4)	(116,8)		(164,2)
Total financial liabilities 31.03.2021	NOK	(51,4)	(59,7)		(111,1)

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 20m 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	31.03.2022	31.03.2021	31.12.2021
Total solvency capital requirement	2 176	2 123	2 081
Total eligible own funds to meet SCR	4 345	4 586	4 294
Ratio of eligible own funds to SCR	200 %	216 %	206 %
Totalt minimum capital requirement	979	955	936
Ratio of eligible own funds to MCR	362 %	397 %	421 %

Alternative performance measures and key figures

		Q1 2022	Q1 2021	1.1.-31.12.2021
Gross premiums written ¹
Norway	NOKm	955,3	856,3	1 415,0
Sweden	NOKm	943,0	895,1	1 820,5
Denmark	NOKm	812,2	726,9	918,7
UK	NOKm	195,8	237,7	1 618,1
Finland	NOKm	204,3	164,2	178,2
Total premiums written	NOKm	3 110,7	2 880,2	5 950,6
Gross premiums earned
Norway	NOKm	372,2	342,8	1 398,3
Sweden	NOKm	449,1	434,3	1 749,3
Denmark	NOKm	243,8	207,3	880,2
UK	NOKm	387,5	333,8	1 460,5
Finland	NOKm	72,5	69,7	257,8
Total gross premiums earned	NOKm	1 525,0	1 387,9	5 746,1
Earned premiums, net of reinsurance
Norway	NOKm	337,8	305,4	1 245,4
Sweden	NOKm	410,8	373,0	1 512,3
Denmark	NOKm	218,9	180,2	761,4
UK	NOKm	302,6	254,3	1 170,9
Finland	NOKm	66,3	62,3	230,7
Total earned premiums, net of reinsurance	NOKm	1 336,5	1 175,2	4 920,7
Gross claims incurred
Norway	NOKm	(331,2)	(233,3)	(1 088,6)
Sweden	NOKm	(389,1)	(265,4)	(1 038,1)
Denmark	NOKm	(235,4)	(214,8)	(904,6)
UK	NOKm	(256,2)	(250,8)	(1 237,6)
Finland	NOKm	(58,8)	(70,8)	(199,4)
Total gross claims incurred	NOKm	(1 270,6)	(1 035,2)	(4 468,4)
Claims incurred, net of reinsurance
Norway	NOKm	(310,6)	(255,6)	(1 021,8)
Sweden	NOKm	(352,4)	(242,9)	(949,2)
Denmark	NOKm	(217,4)	(151,5)	(631,3)
UK	NOKm	(223,5)	(211,6)	(1 027,6)
Finland	NOKm	(54,0)	(61,3)	(180,2)
Total claims incurred, net of reinsurance	NOKm	(1 157,9)	(922,8)	(3 810,1)
Gross expenses
Norway	NOKm	(25,6)	(30,5)	(105,6)
Sweden	NOKm	(55,3)	(63,6)	(214,3)
Denmark	NOKm	(18,0)	(21,6)	(73,9)
UK	NOKm	(51,0)	(61,8)	(46,5)
Finland	NOKm	(2,6)	(5,7)	(14,3)
Total gross expenses	NOKm	(152,4)	(183,3)	(454,7)
Net expenses
Norway	NOKm	(23,4)	(32,1)	(89,1)
Sweden	NOKm	(95,7)	(49,7)	(154,4)
Denmark	NOKm	(18,4)	(11,7)	(52,9)
UK	NOKm	(44,9)	(48,3)	(182,0)
Finland	NOKm	(1,6)	(5,7)	(9,3)
Total net expenses	NOKm	(184,0)	(147,6)	(487,6)

Alternative performance measures and key figures

		Q1 2022	Q1 2021	1.1.-31.12.2021
Gross claims ratio
Norway	%	89,0 %	68,1 %	77,8 %
Sweden	%	86,6 %	61,1 %	59,3 %
Denmark	%	96,6 %	103,6 %	102,8 %
UK	%	66,1 %	75,2 %	84,7 %
Finland	%	81,1 %	101,6 %	77,3 %
Total gross claims ratio	%	83,3 %	74,6 %	77,8 %
Claims ratio, net of ceded business ¹
Norway	%	91,9 %	83,7 %	82,1 %
Sweden	%	85,8 %	65,1 %	62,8 %
Denmark	%	99,3 %	84,1 %	82,9 %
UK	%	73,9 %	83,2 %	87,8 %
Finland	%	81,4 %	98,3 %	78,1 %
Total claims ratio, net of ceded business	%	86,6 %	78,5 %	77,4 %
Gross expense ratio	%
Norway Sweden	%	6,9 %	8,9 %	7,6 %
Denmark	%	12,3 %	14,7 %	12,3 %
UK	%	7,4 %	10,4 %	8,4 %
Finland	%	13,2 %	18,5 %	14,4 %
	%	3,5 %	8,2 %	5,6 %
Total gross expense ratio Expense ratio, net of ceded business ¹		10,0 %	13,2 %	10,8 %
	%	6,9 %	10,5 %	7,2 %
Norway Sweden	%
Denmark	%	12,4 %	13,3 %	10,2 %
UK	%	8,4 %	6,5 %	6,9 %
Finland	%	14,9 %	19,0 %	15,5 %
Total expense ratio, net of ceded business	%	2,4 % 10,4 %	9,2 % 12,6 %	4,0 % 9,9 %
Gross combined ratio
Norway	%	95,8 %	77,0 %	85,4 %
Sweden	%	98,9 %	75,7 %	71,6 %
Denmark	%	104,0 %	114,0 %	111,2 %
UK	%	79,3 %	93,7 %	99,1 %
Finland	%	84,7 %	109,8 %	82,9 %
Total gross combined ratio	%	93,3 %	87,8 %	88,5 %
Combined ratio, net of ceded business ¹
Norway	%	98,9 %	94,2 %	89,2 %
Sweden	%	98,1 %	78,4 %	73,0 %
Denmark	%	107,7 %	90,6 %	89,8 %
UK	%	88,7 %	102,2 %	103,3 %
Finland	%	83,8 %	107,5 %	82,1 %
Total combined ratio, net of ceded business	%	97,0 %	91,1 %	87,3 %
Retention rate ¹
Norway	%	90,8 %	89,1 %	89,1 %
Sweden	%	91,5 %	85,9 %	86,5 %
Denmark	%	89,8 %	86,9 %	86,5 %
UK	%	78,1 %	76,2 %	80,2 %
Finland	%	91,5 %	89,4 %	89,5 %
Total retention rate	%	87,6 %	84,7 %	85,6 %
Run-off gains/(losses)
Net run-off-gains/losses	NOKm	48,2	1,1	(14,8)
Net run-off-gains/losses	%	3,6 %	0,1 %	-0,3 %

Alternative performance measures and key figures

		Q1 2022	Q1 2021	1.1.-31.12.2021
Run-off gains/(losses)
Net run-off-gains/losses	NOKm	48,2	1,1	(14,8)
Net run-off-gains/losses	%	3,6 %	0,1 %	-0,3 %
Return on investments ¹
Total net income from investments, continued business	NOKm	(9,2)	523,0	878,3
Total net income from investments, discontinued business	NOKm	(0,7)	57,5	76,2
Total net income from investments	NOKm	(9,9)	580,5	954,5
Average investments, continued business	NOKm	14 157,1	12 955,7	12 853,1
Average investments, discontinued business	NOKm	1 026,2	1 424,8	1 118,1
Total average investments	NOKm	15 183,3	14 380,5	13 971,2
Return on investments, continued business	%	-0,1 %	4,0 %	6,8 %
Return investments, discontinued business	%	-0,1 %	4,0 %	6,8 %
Total return on investments	%	-0,1 %	4,0 %	6,8 %
Total net income from shares	NOKm	(12,3)	488,8	669,5
Total net income from interests	NOKm	2,4	91,7	285,1
Total net income from investments	NOKm	(9,9)	580,5	954,5
Average investments shares	NOKm	2 308,1	1 887,5	1 720,0
Average investments interests	NOKm	12 875,2	12 493,1	12 251,2
Total average investments	NOKm	15 183,3	14 380,5	13 971,2
Return on investments, shares	%	-0,5 %	25,9 %	38,9 %
Return investments, interests	%	0,0 %	0,7 %	2,3 %
Total return on investments	%	-0,1 %	4,0 %	6,8 %
Return on equity, annualised ¹
Profit before comprehensive income	NOKm	(20,5)	577,4	1 232,1
Average shareholder equity	NOKm	3 436,2	3 307,5	3 460,3
Return on equity, annualised	%	-2,4 %	69,8 %	35,6 %
Equity	NOKm	3 290,3	3 584,5	3 582,1
Equity per share	NOK	39,9	43,6	43,5
Earnings per share in the period, basic and diluted ²	NOK	(0,2)	7,0	15,0
Issued shares (excl. own shares), at the end of the period	No.	82 371 969	82 307 283	82 371 969

¹ Defined as alternative performance measure (APM). APMs are described on www.protectorforsikring.no in

document named APMs Protector Forsikring Q1 2022

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	Q1 2022	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	3 110,7	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	1 525,0	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												(1 270,6) (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	1 336,5	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	1,8	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												(1 157,9) (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	(92,8)	(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	(59,7)	(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	13,4	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	(7,9)	(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	31,6	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	(14,4)	(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	(9,2)	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	8,0	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) 86,6 %	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) 10,4 %	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) 97,0 %	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) 83,3 %	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) 10,0 %	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) 93,3 %	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