Protector Forsikring ASA · OSL:PROT
Protector Forsikring ASA — Q3 2021 Earnings Presentation
21 slides from Protector Forsikring ASA's earnings presentation, Oct 28, 2021
Slide 1: Q3 2021 Interim results
Q3 2021 Interim results Investor Presentation Oslo, 28 October 2021 Henrik Høye Chief Executive Officer
Slide 2: Disclaimer
Disclaimer This presentation and the information contained herein have been prepared by and is the sole responsibility of Protector Forsikring ASA (the "Company”). Such information is being provided to you solely for your information and may not be reproduced, retransmitted, further distributed to a
Slide 3: Our DNA
Our DNA Vision The Challenger Business Idea This will happen through unique relationships, best in class decision- making and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Credible Innovative/Open Bold Committed
Slide 4: Result highlight Q3 & YTD 2021
Result highlight Q3 & YTD 2021 Q3: Combined ratio at 82.9% | Investment return at 0.0% | EPS at NOK 1.6 93.4% 94.5% 5 165 717 (5.1%) 235% 230%* 85.9% 4 787 82.9% 259 +8% 190% 458 161% +27% (0.0%) 92 856 671 -99 -7 Q3 YTD Q3 YTD Q3 YTD Q2 ’20 Q4 ’20 Q2 ’21 Q3 ’21 Net combined ratio Gross written prem
Slide 5: Claims update
Claims update Q3 claims ratio at 73.9%, 9.1%-points down from last year • Net run off gains at 4.9 % in Q3 21 (-3.5% in Q3 20) Q3 '21 Q3 '21 Q3 '20 Q3 '20 Business unit Gross Net Gross Net Norway 73 % 74 % 75 % 72 % • Large losses1 at 9.4% (12.0%), 2.4%-points higher than normalized Sweden 59 % 61 %
Slide 6: Large losses and run-off
Large losses and run-off Gross large losses1 of MNOK 139 (9.4%), net run off gains at 1.7% Gross large loss ratio excl. WC2 20.4% • Gross large losses of MNOK 139 or 9.4% in Q3 21 • Cloud burst claim event in Gävle, Sweden (26 claims in total) 12.0% 11.1% • One very large claim in UK (>50 MNOK net e
Slide 7: Volume update
Volume update GWP up 27.5% in quarter, 25.8% in local currencies in MNOK • Q3: a small volume-quarter Business unit Q3 '21 Q3 '20 Growth • GWP growth at 27.5% (25.8% in LCY) Norway 174 162 12 Sweden 248 207 41 • Renewal rate at 99.4 % • Realized price increases at 13.2% Denmark 61 58 3 • Low and sta
Slide 8: Country-by-country key metrics
Country-by-country key metrics Q3 combined ratio at 82.9% | Quarterly country volatility must be expected Q3 2021 Norway Sweden Denmark UK Finland Protector Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Gross premium written 174 162 248 207 61 58 368
Slide 9: Status vs. 2021 guiding
Status vs. 2021 guiding Renewed guiding on profitability, premium growth as expected Guiding 2021 Results H1 Results Q3 Results YTD New guiding Net Combined Ratio: 90-92% 87.4% 82.9% 85.9% 88% Return on Equity (ROE): >20% 49.1%* 14.8%* 37.7%* Unchanged Gross Written Premium (GWP) growth: 10% (LCY) 7
Slide 10: Our DNA
Our DNA Vision The Challenger Business Idea This will happen through unique relationships, best in class decision- making and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Credible Innovative/Open Bold Committed
Slide 11: Investments
Investments Investment is core
Slide 12: Investment performance and statistics
Investment performance and statistics 0.0% return in Q3 | Bond portfolio yield at 2.0%, before cost of risk Q3 and YTD investment results • Q3 return on investment portfolio at 0.0%, or MNOK -7 28.5% Q3 • Equity portfolio, ex. put options, returning -4.1%, or MNOK -88 YTD • Bond portfolio returning
Slide 13: Our DNA
Our DNA Vision The Challenger Business Idea This will happen through unique relationships, best in class decision- making and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Credible Innovative/Open Bold Committed
Slide 14: Profit and loss Q3 (&YTD)
Profit and loss Q3 (&YTD) Profit of MNOK 125 (965) – EPS at NOK 1.6 (11.8) NOKm Q3 2021 Q3 2020 Q1-Q3 2021 Q1-Q3 2020 FY 2020 Gross premiums written 856 671 5 165 4 787 5 516 Earned premiums, net of reinsurance 1 257 1 147 3 652 3 425 4 614 Claims incurred, net of reinsurance (930) (952) (2 783) (2
Slide 15: Balance Sheet
Balance Sheet SCR-ratio at 230% post Q3 special dividend In millions 30.09.2021 30.09.2020 31.12.2020 Financial assets 13 291.1 11 757.0 11 988.6 SCR-ratio composition Derivatives 64 99.3 47.9 Bank deposits 101.4 65.5 263.2 SCR-ratio: Other assets 4 420.7 2 679.3 2 554.9 5 000 230% Discontinued oper
Slide 16: Solvency II
Solvency II SCR ratio at 230% Composition of SCR: Eligible SII capital: • Net insurance risk 62% • Accumulated dividend subtracted from eligible capital • Net market risk 28% • Guarantee provision subtracted from own funds • Other risks 10% SCR composition Eligible SII capital 4 000,0 6 000 278,0 10
Slide 17: Dividend policy
Dividend policy A new special dividend of NOK 1.67 per share – Flexible shareholder distribution policy Solvency II ratio Current level • Capital over 180% in SCR ratio distributed over time = 230% 180% • Shareholder distribution normally 20%-80% of net profit Normal Range • Quarterly decisions, all
Slide 18: Our DNA
Our DNA Vision The Challenger Business Idea This will happen through unique relationships, best in class decision- making and cost effective solutions Main targets Cost and quality leadership Profitable growth Top 3 Values Credible Innovative/Open Bold Committed
Slide 19: Result summary Q3 & YTD 2021
Result summary Q3 & YTD 2021 Q3: Combined ratio at 82.9% | Investment return at 0.0% | EPS at NOK 1.6 Q3 YTD • Net combined ratio 82.9% 85.9% • Gross written premium MNOK 856 MNOK 5 165 (+27%) (+8%) • Investment return MNOK -7 MNOK 717 (0.0%) (5.1%) • Profit for the period MNOK 125 MNOK 965 • Earnin
Slide 20: PROTECTOR insurance
PROTECTOR insurance
Slide 21: PROTECTOR insurance
PROTECTOR insurance