Protector terminates stock option scheme

As notified Monday 28 December 2010, the Board of

Protector Forsikring ASA has decided to end the

company's stock option scheme. The reason is the new

legislation regarding remuneration schemes in

financial institutions. This means that 39 employees

will receive a payment due to the lapse of future

rights linked to the allocated options. The stock

options were allocated during the period of 2006 -

2008 as part of the company's incentive scheme.

The cash payment will be accounted for in Q4 2010 and

represents a pre-tax charge of NOK 10.1 million. The

valuation of the option payments is based on the

difference between the option strike price, NOK 7.75

and the average trading price of Protector's share on

30 December 2010, NOK 11.91.

Following the transaction there are no outstanding

options in Protector.

A list of the primary insiders affected by the

termination of the stock option scheme is attached

herewith.

Despite a cost allocation sized NOK 10.1 million

related to the termination of the stock option

scheme, Protector expects a full year operating

result stronger than the previously guided NOK 180

million.

Oslo, 3 January 2011

Protector Forsikring ASA

This information is subject of the disclosure

requirements acc. to §5-12 vphl (Norwegian Securities

Trading Act)

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