Solid Försäkring (SFAB) Q2 2024 earnings summary

Executive summary

• Gross written premiums rose 5% in Q2 2024 to SEK 284.2m, driven by Assistance and Personal Safety segments, while Product segment declined due to lower consumer electronics sales.

• Profit before tax increased 5% in Q2 to SEK 52.8m, with stable underlying insurance profitability and strong asset management returns.

• The acquisition of Svensk Bilhandelsförsäkring was completed and integrated, strengthening the car warranty insurance position.

• Partnership with Norion Bank launched and performed as expected; partnership with Power to end in Q3, impacting annual sales but limited earnings effect.

Financial highlights

• Q2 2024: Premiums earned, net of reinsurance, up 6% to SEK 285.3m; technical result down 14% to SEK 35.5m; combined ratio increased to 90.6% (from 87.7%).

• Asset management result up 51% to SEK 25.3m in Q2; total return YTD 3.9% (2.7% last year), 12-month rolling 7.7% (4.5%).

• H1 2024: Gross written premiums down 1% to SEK 546.7m; premiums earned, net of reinsurance, up 2% to SEK 563.1m; technical result down 8% to SEK 74.2m; combined ratio 90.0% (88.0%).

• Profit after tax for H1 up 7% to SEK 86.0m; EPS up 12% to SEK 4.66.

Outlook and guidance

• Discontinuation of Power partnership expected to reduce annual sales by ~10% from Q3 2024, but limited impact on earnings due to long-maturity insurance portfolio.

• Management expects continued financial stability and strong solvency, with SCR ratio well above target.