Protector Forsikring (PROT) Q2 2024 earnings summary

Executive summary

• Q2 2024 combined ratio was 94.5%, mainly due to large losses in Denmark and the UK, with gross premiums written of NOK 3,551m and earnings per share at NOK 3.1.

• H1 2024 combined ratio was 92.9%, gross premiums written NOK 7,981m, and EPS NOK 8.6.

• Q2 profit reached NOK 254m, up from NOK 219m year-over-year; H1 profit was NOK 710m, down from NOK 845m.

• Dividend of NOK 165m (NOK 2 per share) declared, supported by a strong capital position.

• Project France is advancing as planned, with quoting expected in Q3 for a 2025 launch.

Financial highlights

• Q2 profit for the period was NOK 254m, up from NOK 219m in Q2 2023; H1 profit was NOK 710m, down from NOK 845m.

• Gross premiums written grew 16% in Q2 and 12% in H1, both in local currencies.

• Total investment return was NOK 242m (1.3%) in Q2 and NOK 614m (3.0%) in H1.

• Q2 insurance service result was NOK 157m (down from NOK 384m); H1 result NOK 398m (down from NOK 520m).

• Earnings per share for Q2 was NOK 3.1; H1 was NOK 8.6.

Outlook and guidance

• Growth in gross written premiums expected to continue, driven by low churn and new sales, especially in Norway and the UK.

• Project France is on track, with quoting of business expected in Q3 for a 2025 launch.

• Underlying profitability outlook is positive, with actions taken to exit unprofitable clients and correct for inflation.

• Claims development and capital market volatility are key risks for 2024.

• Negative growth in Sweden due to consumer scheme run-off; limited growth expected in H2.