Protector Forsikring (PROT) Q3 2024 earnings summary

Executive summary

• Q3 profit reached NOK 581m, a significant turnaround from NOK -11m in Q3 2023, with strong insurance service results in the UK, Norway, and Sweden, while Denmark was impacted by large property claims.

• Combined ratio improved to 83.2% in Q3 2024, with YTD at 89.5%, reflecting strong underwriting performance.

• Gross premiums written grew 22% to NOK 1,664m in Q3 (15% in local currencies), with a renewal rate of 93%, affected by a large UK client lapse.

• Investment return for Q3 was NOK 534m (2.3%), and EPS was NOK 7.1; assets under management increased to NOK 22,727m.

• First client confirmed in France for 2025, with increased capital allocation and staffing ramp-up; no dividend declared to prioritize growth opportunities.

Financial highlights

• Q3 total investment return was NOK 299m (2.3%); YTD return NOK 1,155m (5.4%).

• Q3 net loss ratio at 73.6%, gross loss ratio at 71.5%; cost ratio at 9.6%; YTD net loss ratio at 79.3%.

• Large losses in Q3 totaled NOK 215m (7.1% of premiums), mainly in Denmark; run-off gains at 2.8%.

• Q3 insurance service result was NOK 504m (up from NOK 199m); Q1–Q3 result was NOK 902m.

• SCR ratio improved to 194%, indicating strong solvency.

Outlook and guidance

• Profitable growth remains a priority, with disciplined underwriting, continued price adjustments to offset claims inflation, and focus on cost and quality leadership.

• Increased probability of growth in France, with first client risk incepting January 2025; staffing ramp-up underway.

• Claims inflation repricing for 2025 expected to be medium to slightly high, lower than 2024 but above low single digits.

• No dividend planned to support expansion and capital needs, especially in France.