Protector Forsikring ASA · OSL:PROT
Protector Forsikring ASA — FY2022 Earnings Presentation
24 slides from Protector Forsikring ASA's earnings presentation, Mar 14, 2023
Slide 1: Investor Presentation
Investor Presentation 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: Vision, Business Idea, Targets and Values
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: Highlights
Net combined ratio Gross written premium (MNOK) Investment return (MNOK) Solvency Capital Ratio Other highlights: • January 1st 2023 growth in GWP at 17 % in LCY • Running yield in bond portfolio at 6.0 % • Special dividend of MNOK 494.3 or NOK 6 per share Profit after tax (MNOK) Earnings per share
Slide 5: Claims update
Claims update • 16 large losses1 at 6.2 % (4.6 %) in 2022 • Driven by 3 claims in UK & 2 in Sweden • 4 large losses at 4.2 % (7.2 %) in Q4 • Q4 Motor frequency affected by snowy weather, especially in Norway & UK • Net run-off gains at 2.3 % (loss of 0.3 %) in 2022 • Mainly due to run-off gains in S
Slide 6: Large losses and run-off update
Large losses1 and run-off update Net large loss ratio excl. WC pr. Q • Net large losses of MNOK 352 or 6.2 % (225.7 or 4.6%) • Mainly Property Normalized • Net large losses of MNOK 64 or 4.2 % (44 or 7.2%) in Q4 • Net run-off gains at 2.3 % (loss of 0.3 %) • Gains Property, Personal Accident & Motor
Slide 7: Premium growth update
• FY growth at 19 % • Renewal rate 93 %, supported by price increases to counter claims inflation • Sweden & UK accounts for 71% of new sales • UK now largest business unit • Q4 growth at 62 % • Renewal rate 100 % • 1 very large renewal in UK • January 1st 2023 growth in GWP at 17 % in LCY • Driven
Slide 8: Country-by-country key metrics
Country-by-country key metrics PROTECTOR - . insurance Quarterly volatility must be expected, especially by country FY 2022 Norway Sweden Denmark UK Finland Protector MNOK FY 22 FY 21 FY 22 FY 21 FY 22 FY 21 FY 22 FY 21 FY 22 FY 21 FY 22 FY 21 Gross premium written 1610 1415 2073 1820 1077 919 2116
Slide 9: Vision, Business Idea, Targets and Values
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 10: Investments
Investments AUM: MNOK 14 913 at year-end| Float increasing 14 913 17.9 % 15.1 % 13.5 % 10 223 10.1 % 9.9 % 17.6 % 22.1 % 12.5 % 84.9 % 82.1 % 86.5 % 89.9 % 11.6 % 90.1 % 13.2 % 82.4 % 8.9 % 87.5 % 77.9 % 17.8 % 88.4 % 24.6 % 86.8 % 25.1 % 91.1 % 16.8 % 82.2 % 74.9 % 75.4 % 83.2 % 2008 2009 2010 2011
Slide 11: Investment performance
Investment performance FY: Gain of MNOK 501 or 3.4% • 2022 return on investment portfolio 3.4%, or MNOK 5011 2022 investment result 25% • Equity portfolio 15.7%, or MNOK 368 20% 15.7% • Bond portfolio 1.4%, or MNOK 171 15% • Put options MNOK -38 10% 5% 1.4% 3.4% 0% Equities Bonds Total1 • Q4 return
Slide 12: Large change in bond portfolio yield
Large change in bond portfolio yield Driven by rate increases and spread widening Increased yield driven by Bond portfolio yield composition • Higher underlying rate, +2.8 %-points from YE21 • Higher market spreads, +122bps from YE21
Slide 13: Bond portfolio statistics
Bond portfolio statistics Yield at 6.0 % | Interest duration increased to 2.5 • Yield at 6.0% vs 2.0% at year end (YE) ‘21, before cost of risk Investment portfolio data2 31.12.22 31.12.21 30.09.22 Bond & cash eq. (MNOK)3 12 249 12 003 12 218 Avg. ref. rate (NIBOR, STIBOR, etc.)4 3.3% 0.5% 3.1% • Du
Slide 14: HY bonds performance
HY bonds performance FY: HY return of 3.8 % |DNB Markets Nordic HY index return of -0.2% • Volatile Nordic HY market in 2022 with DNB Nordic HY index Protector HY VS DNB HY index 80% at -0.2% in 2022, +1.3% in Q4 70% 67.0% • Norwegian HY DNB index +3.2% 60% Since inception 50% • Swedish HY DNB Index
Slide 15: Equity portfolio statistics
Equity portfolio statistics FY: Return of 15.7 % | CAGR of 18.8 % since inception Q4 2014 • Strong operational performance in portfolio companies Investment portfolio data 31.12.22 31.12.21 30.09.22 Portfolio size1 2 648 2 166 2 343 Equities Estimated intrinsic value discount 30% 26% 40% No. of comp
Slide 16: Vision, Business Idea, Targets and Values
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 17: Profit and Loss FY & Q4 2022
Profit and Loss FY & Q4 2022 PROTECTOR FY: Profit of MNOK 809, EPS at NOK 10.2 insurance MI FY 22 FY 21 Q422 Q421 Gross premiums written 7.098 5951 1275 786 Earned premiums, net of reinsurance 5715 4921 1528 1269 Claims incurred, net of reinsurance (4534) (3810) (1.243) (1027) Sales cost (387) (362)
Slide 18: Balance Sheet
Balance Sheet SCR ratio1 at 195% In millions 31.12.2022 31.12.2021 Financial assets 14 195 13 067 SCR ratio composition Derivatives 66 94 6 000 Bank deposits 199 300 SCR ratio: 195% Other assets 4 612 4 338 Discontinued operations 878 1 448 Total assets 19 949 19 246 5 000 Tier 2 Total equity 3 455
Slide 19: Solvency II
Solvency II SCR ratio at 195% Composition of SCR: Eligible solvency capital: • Net insurance risk 61% • Guarantee provision and proposed dividend subtracted from own • Net market risk 31% funds • Other risks 8% SCR composition Eligible own funds 5 000 7 000 284 77 1 895 4 500 1 379 6 000 4 000 525 5
Slide 20: Flexible shareholder distribution policy
Flexible shareholder distribution policy Quarterly assessment of capital position vs. capital need SCR ratio • Capital distributed over time 200%* Solvency ratio zone assessment: • Move towards ‘Green’ if we see e.g. profitable • Shareholder distribution normally 20%-80% of net profit insurance grow
Slide 21: Long term financial targets
Long term financial targets Disciplined growth Net Combined Ratio Solvency Capital Ratio Return on Equity1 Target Target Target 90 % - 92 % > 150 % > 20 % 1 Return on Solvency Capital until 2016 when reflecting changes in accounting principles from Jan. 1st 2016 where Shareholder’s Equity includes s
Slide 22: Vision, Business Idea, Targets and Values
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 23: Alternative performance measures
This presentation contains alternative performance measures (APMs). APMs are described here: https://protectorforsikring.no/en/investor/documents/spreadsheets/ 23
Slide 24: Protector Insurance
PROTECTOR insurance