2021 Interim Report Q4.pdf

4TH QUARTER AND PRELIMINARY FULL YEAR 2021

PROTECTOR FORSIKRING ASA

(UNAUDITED)

2 FEBRUARY 2022

Highlights Q4 and preliminary full year 2021

A strong quarter and full year result

Protector Forsikring ASA recorded a profit of NOK 238.8m (NOK 442.2m) for the quarter. The result is driven by a strong retuon investments and a good technical result. The retuon investments was NOK 237.4m (NOK 448.5m) or 1.7% (3.4%). The technical result was NOK 101.2m (NOK 53.6m) corresponding to a combined ratio of 91.6% (95.4%).

In Q4, gross written premiums increased by 14% in local currencies. The growth is mainly driven by Denmark and Sweden. Furthermore, premium growth is supported by continued price increases and a low client churn. For the full year, gross written premium came in at MNOK 5,950.6, up 8% (10% in local currencies) relative to 2020.

The Covid-19 pandemic had no measurable impact on the net claims ratio in Q4, and a positive impact of 0.8 percentage point for the full year. The impact was primarily related to motor insurance.

In 2021, the company recorded a profit of NOK 1,204.0m (NOK 981.6m). The retuon investments was NOK 954.5m (NOK 969.6m) or 6.8% (8.0%). The technical result was NOK 594.4m (NOK 246.6m) corresponding to a combined ratio of 87.3% (94.8%).

The Board has utilised its authorisation granted by the Annual General Meeting in 2021 and has resolved to distribute a special dividend of NOK 247.1m, corresponding to NOK 3.00 per share.

In addition, the Board proposes an ordinary dividend for 2021 of NOK 576.6m or NOK 7.00 per share.

The SCR-ratio was 206% (190%) year-end, post dividends.

Q4 2021

CR 91.6%, 8% growth

Q4 2021 shows following development compared to Q4 2020:

Premium growth of 8% (33%)
Net combined ratio of 91.6% (95.4%)
Net retuon investments NOK 237.4m (NOK 448.5m) or 1.7% (3.4%)
Profit for the period 238.8m (NOK 442.2m)

FY 2021

CR 87.3%, 8% growth

FY 2021 shows following development compared to FY 2020:

Premium growth of 8% (8%)
Net combined ratio of 87.3% (94.8%)
Net retuon investments NOK 954.5m (NOK 969.6m) or 6.8% (8.0%)
Profit for the period NOK 1,204. (NOK 981.6)
Solvency margin 206% (190%)

Q4 2021 and Preliminary Full Year 2021 Report | PROTECTOR FORSIKRING ASA | PAGE 2 of 19

Financial highlights and key ratios

NOKm		Q4 2021	Q4 2020	FY 2021	FY 2020
Gross premiums written		785,9	728,9	5 950,6	5 516,3
Earned premiums, net of reinsurance		1 268,9	1 189,0	4 920,7	4 613,5
Claims incurred, net of reinsurance		(1 026,9)	(996,3)	(3 810,1)	(3 901,4)
Sales cost		(94,7)	(93,3)	(361,7)	(331,3)
Administration cost		(67,3)	(71,0)	(256,6)	(221,3)
Commission from reinsurer		26,6	26,2	130,7	81,6
Other insurance related income/expenses		(5,3)	(0,9)	(28,7)	5,5
Technical result		101,2	53,6	594,4	246,6
Other income/costs		(15,3)	(19,1)	(56,4)	(67,0)
Net financial income		220,1	413,6	878,3	865,2
Profit before tax		305,9	448,0	1 416,3	1 044,8
Tax		(42,3)	(36,2)	(251,7)	(160,0)
Discontinued operations		(0,0)	31,0	67,4	94,3
Net comprehensive income		(24,9)	(0,5)	(28,1)	2,4
Profit for the period		238,8	442,2	1 204,0	981,6
Claims ratio, net of reinsurance	(1)	80,9 %	83,8 %	77,4 %	84,6 %
Expense ratio, net of reinsurance	(2)	10,7 %	11,6 %	9,9 %	10,2 %
Combined ratio, net of reinsurance	(3)	91,6 %	95,4 %	87,3 %	94,8 %
Gross claims ratio	(4)	85,6 %	82,3 %	77,8 %	82,2 %
Gross expense ratio	(5)	11,0 %	11,7 %	10,8 %	10,3 %
Gross combined ratio	(6)	96,6 %	94,0 %	88,5 %	92,5 %
Retention rate	(7)	86,4 %	84,7 %	85,6 %	85,8 %
Earnings per share	(8)	3,2	5,4	15,0	12,0

Q4 2021 and Preliminary Full Year 2021 Report | PROTECTOR FORSIKRING ASA | PAGE 3 of 19

Premiums

In Q4, gross premiums written increased by 8% or NOK 57.0m to a total of NOK 785.9m. The growth In local currencies was 14% and is mainly driven by Denmark and Sweden. We recognize that the low client chuwhich we have encountered in the first three quarters has remained throughout Q4.

Furthermore, premium growth is supported by price increases above claims inflation.

The growth per country was;

Gross premiums written (NOKm)	Q4 2021	Q4 2020	Growth
Norway	122,1	133,8	-11,6	-9 %
Sweden	275,8	249,4	26,4	11 %
Denmark	91,8	59,7	32,1	54 %
UK	291,4	276,9	14,5	5 %
Finland	4,9	9,2	-4,3	-47 %
Total	785,9	728,9	57,0	8 %

In 2021, gross premiums written totalled NOK 5,950.6m, representing 8% growth (10% in local currencies). The growth in the Nordics was 3% (NOK 143.9m) and in the UK 22% (NOK 290.4m). In local currencies the growth was 6% in the Nordics and 24% in the UK. The renewal rate for the total portfolio was 90.3% (83.0%) supported by price increases of 8.9%.

Protector has as earlier communicated, withdrawn from worker's compensation (WC) covers within the Norwegian health and welfare industry due to the Government's decision to define Covid-19 as an occupational disease within the WC cover. Moreover, Protector has withdrawn from WC as a single product in Denmark due to capital consumption on this product combined with poor profitability. These deliberate measures represent a premium reduction of approximately NOK 191m or 3.5% in 2021.

Growth per country is presented in the table below.

Gross premiums written (NOKm)	FY 2021	FY 2020	Growth

Norway	1415,0	1382,6	32,4	2 %
Sweden	1820,5	1607,4	213,1	13 %
Denmark	918,7	972,5	-53,8-6 %
UK	1618,1	1327,8	290,4	22 %
Finland	178,2	226,0	-47,8-21 %
Total	5950,6	5516,3	434,2	8 %

Results

In Q4 the profit for the quarter totalled NOK 238.8m, against NOK 442.2m in Q4 2020. The technical result was NOK 101.2m (NOK 53.6m), corresponding to a net combined ratio of 91.6% (95.4%). The technical result was driven by strong results in Sweden.

The net combined ratio by country is provided in the table below.

Net combined ratio	Q4 2021	Q4 2020

Norway	96,6 %	76,8 %
Sweden	72,6 %	86,2 %
Denmark	99,1 %	145,5 %
UK	108,4 %	84,8 %
Finland	67,4 %	109,1 %
Total	91,6 %	95,4 %

Q4 2021 and Preliminary Full Year 2021 Report | PROTECTOR FORSIKRING ASA | PAGE 4 of 19

In Q4, the company had run-off losses of 4.3% compared to run-off-losses of 3.5% in Q4 2020. The run-off losses is mainly driven by Norway and the UK. In Sweden the run-off-gains continued.

The claims ratio for own account is still improving and decreased from 83.8% in Q4 2020 to 80.9 % in Q4 2021. Price increases and other profitability measures drives the claims ratio downwards. The large loss level was as in Q4 2020 higher than normal - mainly driven by the UK, which was hit by several large claims, including the storm Arwen.

There were no measurable positive effects from Motor in Q4 related to Covid-19 as driving patteis back to normal. In the same period last year, Covid-19 had a positive impact on the net claims ratio of 3 percentage points, mainly related to motor insurance.

The net expense ratio was 10.7%, down from 11.6%, driven by lower personnel costs.

In 2021 the profit totalled NOK 1,204.0m against NOK 981.6m in 2020. The technical result was NOK 594.4m (NOK 246.6m), corresponding to a net combined ratio of 87.3% (94.8%). The technical result is driven by strong results in the Nordic countries. The UK came in weaker due to an above normal number of large and medium sized claims.

The net combined ratio for the full year, by country, is provided in the table below:

Net combined ratio	FY 2021	FY 2020
Norway	89,2 %	86,3 %
Sweden	73,0 %	92,7 %
Denmark	89,8 %	124,7 %
UK	103,3 %	84,9 %
Finland	82,1 %	77,5 %
Total	87,3 %	94,8 %

The claims ratio for own account was 77.4%, down from 84.6 % in 2020. Price increases and other profitability measurers drives the claims ratio downwards. The large loss ratio was somewhat lower than normal and the Covid-19 pandemic had a positive estimated impact at approximately 0.8 percentage points. In 2021 the company had run-off losses of 0.3% against 2.2% in run-off-losses in 2020

The net expense ratio was 9.9%, down from 10.2% due to higher reinsurance commissions. The gross expense ratio increased slightly due to higher bonus costs (significant part linked to the share price development) and broker commissions. Growth in the UK drives broker commissions up. On the other hand, the relative UK cost level continue to decline.

Discontinued operations

In Q4, the technical result for discontinued operations (change of ownership insurance) was NOK -17.2m (NOK -2.2m) and the profit for the quarter was NOK 0.0m (NOK 31.0m). In Q4, the company continued to sell change of ownership insurance due to existing agreements with some real estate brokers. These agreements are terminated as from 2022 due to new legislation coming into force.

In 2021, the technical result was NOK 10.8m (NOK 14.2m). The profit for the period was NOK 67.4m (NOK 94.3m) driven by a strong retuon investments.

Q4 2021 and Preliminary Full Year 2021 Report | PROTECTOR FORSIKRING ASA | PAGE 5 of 19

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Protector Forsikring ASA published this content on 02 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 February 2022 21:24:28 UTC.