Solid Försäkring (SFAB) Q3 2024 earnings summary

Executive summary

• Gross written premiums rose 6% year-over-year in Q3 2024 to KSEK 295,987, with strong growth in Assistance and Personal Safety, but a 15% decline in Product segment sales.

• Profit before tax increased 21% year-over-year in Q3 to KSEK 62,645, driven by higher interest income and positive market valuations in asset management.

• Combined ratio for Q3 was 89.3% (up from 87.2%), reflecting higher claim and acquisition costs, but still below the company's financial target.

• Strong investment portfolio performance contributed KSEK 30,296 in Q3.

• New partnerships were established with GreenBenefits, Phonehero, and Equilo; Bliq partnership expanded to payment protection insurance.

Financial highlights

• Q3 2024: Gross written premiums KSEK 295,987 (+6%), premiums earned net of reinsurance KSEK 292,340 (+6%), technical result KSEK 39,008 (-10%), profit before tax KSEK 62,645 (+21%), EPS SEK 2.67 (+25%).

• Asset management result up 98% in Q3 to KSEK 30,296, with total return YTD at 6.0% (3.8% last year).

• Claims ratio in Q3 was 26.4% (25.0%), expense ratio 63.0% (62.3%), combined ratio 89.3% (87.2%).

• SCR ratio at 192% (target: 150%), solvency ratio 88.8%.

• Earnings per share increased to 2.67 SEK from 2.13 SEK.

Outlook and guidance

• Management targets annual growth in premiums earned of 4–7% and a combined ratio below 90%.

• SCR ratio target is at least 150%; actual as of 30 September 2024 is 192%.

• Dividend policy aims for at least 50% of net profit, conditional on SCR target and no major acquisitions.

• Anticipates continued reduction in interest rates, which may negatively impact interest income.

• Ongoing challenges for consumers and the retail/travel sectors due to market climate and geopolitical instability.