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2022 SFCR PROTECTOR FORSIKRING

PROTECTOR FORSIKRING ASA

The document is prepared in accordance with the requirements of the Norwegian Supervisory Authority for SFCR reporting in line with Commission Delegated Regulation 2015/35. This is an office translation; the Norwegian version of the document precedes in case of deviations.

Contents
Summary	3
A. Business and Performance	3
A.1 Business	3
A.2 Underwriting performance	4
A.3 Investment performance	6
A.4 Performance of other activities	6
A.5 Any other information	6
B. System of Governance	7
B.1 General information on the system of governance	7
B.2	Fit and proper requirements	10
B.3 Risk management system including the own risk and solvency assessment	10
B.4	Internal control system	12
B.5	Internal audit function	12
B.6	Actuarial function	13
B.7	Outsourcing	13
B.8	Any other information	14
C. Risk Profile	15
C.1	Underwriting risk	19
C.2	Market risk	20
C.3	Credit risk	21
C.4	Liquidity risk	21
C.5	Operational risk	22
C.6	Other material risks	22
C.7	Any other information	22
D. Valuation for Solvency Purposes	23
D.1 Assets	23
D.2 Technical provisions	23
D.3 Other liabilities	26
D.4 Alternative methods for valuation	26
D. Any other information	26
E. Capital Management	27
E.1 Own funds	27
E.2 Solvency Capital Requirement and Minimum Capital Requirement	29
E.3 Use of duration-based equity risk sub-module in the calculation of the Solvency Capital
Requirement	30
E.4 Differences between the standard formula and any internal module used	30
E.5 Non-compliance with the Minimum Capital Requirement and non-compliance with the
Solvency Capital Requirement	30
E.6 Any other information	30

SOLVENCY AND FINANCIAL CONDITION REPORT | PROTECTOR FORSIKRING ASA | PAGE 2 of 30

Summary

Protector Forsikring ASA had growth of 19 % (21 % in local currency) in gross written premium in 2022. Combined ratio for own account was 88,9%. The company's SCR ratio calculated using standard formula including volatility adjustment was 195 %. NOK 6 dividend per share, TNOK 494 271 in total, is subtracted from available solvency capital in calculation of SCR ratio. Eligible solvency capital was TNOK 5 093 042 compared to TNOK 4 294 241 at the end of 2021. Earnings in 2022 and change in discounting rates have contributed positively. Dividend reduced the growth in solvency capital. Solvency capital requirement was TNOK 2 612 459 compared to TNOK 2 081 068 previous year. Increase in capital requirement is driven by company's growth and changes in investments portfolio.

The underlying profitability is good and with continued profitability measures to counteract claims inflation, the technical result is expected to remain at a good level.

Protector Forsikring works continuously with risk management systems in the company. Established processes and reporting systems ensure that Protector's risk management system is adequately organized and that the company's risk profile is followed up on a regular basis.

A. Business and Performance

A.1 Business

Protector Forsikring ASA, org. nr. 985279721, business address Støperigata 2, 0250 Oslo, Norge, is a general insurance company organized as a public limited liability company and listed on the Oslo Stock Exchange. The company operates in Norway, Sweden, Denmark, UK and Finland.

This report is presented in TNOK, which is the company's reporting currency unless otherwise stated.

Name and contacts of the company's public supervisory authority

Name: The Norwegian Supervisory Authority

Business address: Revierstredet 3, 0151 Oslo, Norway

Phone: 22 93 98 00

Company's external auditor

Name: Ernst & Young AS

Business address: Dronning Eufemias street 6A, 0191 Oslo, Norway

Phone: 91 66 90 00

SOLVENCY AND FINANCIAL CONDITION REPORT | PROTECTOR FORSIKRING ASA | PAGE 3 of 30

A.2 Underwriting performance

The company's growth in gross written premium was 19 % (21 % in local currency) in 2022. UK contributed with 8,4 percentage points. Growth in the Nordics was driven by Sweden (4,2 percentage point) followed by Norway (3,3 percentage points), and Denmark (2,7 percentage points). Gross combined ratio was 89,2 % in 2021 compared to 88,5 % in 2021. Combined ratio for own account was 88,9 % (87,3 % in 2021). The technical result is driven by strong results in Norway, Sweden, and UK, but Denmark and Finland also contribute.

Claims ratio for own account was 79,3 %, up from 77,4 % in 2021. The large loss rate was somewhat lower than normal, Covid-19 pandemic had no measurable effect in 2022. The company had run-off gains of 2,3 % in 2022 compared to 0,3 % run-off losses in 2021.

Table 1 shows results per geographic area.

For more information about the company's results and development, please see Protector's annual report for 2022 which is available at the company's home page www.protectorforsikring.no.

Table 1 Geographic distribution of the company's results

	Norge2	Sverige	Danmark	UK		Finland		Totalt
[1.000 NOK]	FY2022	FY2021	FY2022	FY2021	FY2022	FY2021	FY2022	FY2021	FY2022	FY2021	FY2022	FY2021
Gross premiums written1	1 610 121	1 415 046	2 072 621	1 820 477	1 077 187	918 677	2 115 676	1 618 145	222 177	178 227	7 097 782	5 950 571
Gross premiums earned	1 578 766	1 398 303	1 942 060	1 749 251	1 038 309	880 189	1 770 808	1 460 516	211 092	257 817	6 541 036	5 746 076
Gross claims incurred	(1 335 143)	(1 088 567)	(1 410 609)	(1 038 146)	(970 797)	(904 643)	(1 284 873)	(1 237 627)	(182 770)	(199 414)	(5 184 191)	(4 468 397)
Earned premiums, net of reinsurance	1 434 441	1 245 353	1 730 095	1 512 322	929 937	761 435	1 427 074	1 170 932	193 048	230 694	5 714 595	4 920 737
Other insurance-related income	4 270	3 978	359	367	136	532	5 635	2 183	1 456	1 656	11 856	8 716
Claims incurred, net of reinsurance	(1 201 203)	(1 021 827)	(1 298 162)	(949 203)	(807 927)	(631 268)	(1 059 557)	(1 027 591)	(167 159)	(180 174)	(4 534 008)	(3 810 063)
Sales cost	(45 723)	(56 598)	(160 715)	(138 470)	(26 549)	(26 990)	(148 264)	(135 456)	(5 337)	(4 151)	(386 588)	(361 665)
Administration cost	(52 879)	(49 020)	(81 653)	(75 851)	(46 287)	(46 935)	(75 981)	(74 629)	(5 965)	(10 179)	(262 765)	(256 615)
Commission from reinsurance	19 657	16 501	36 684	59 961	9 614	21 061	33 814	28 107	1 891	5 071	101 659	130 701
Other insurance-related expenses	(13 451)	(14 868)	(780)	788	(22 384)	(13 816)	(5 528)	(8 386)	(3 005)	(1 129)	(45 150)	(37 410)
Technical result	145 112	123 519	225 827	409 916	36 539	64 020	177 194	(44 841)	14 928	41 787	599 599	594 401
Other income/cost	(64 794)	(57 680)	(569)	(788)	236	27	633	2 084	(96)	(31)	(64 590)	(56 388)
Net financial income	437 335	758 345	16 999	98 894	(11 382)	(1 430)	39 708	6 365	(5 666)	16 151	476 993	878 325
Profit before tax	517 652	824 184	242 258	508 021	25 392	62 618	217 535	(36 392)	9 166	57 906	1 012 002	1 416 338
Claims ratio, net of ceded business1	83,7 %	82,1 %	75,0 %	62,8 %	86,9 %	82,9 %	74,2 %	87,8 %	86,6 %	78,1 %	79,3 %	77,4 %
Expense ratio, net of ceded business1	5,5 %	7,2 %	11,9 %	10,2 %	6,8 %	6,9 %	13,3 %	15,5 %	4,9 %	4,0 %	9,6 %	9,9 %
Combined ratio, net of ceded business1	89,2 %	89,2 %	86,9 %	73,0 %	93,7 %	89,8 %	87,6 %	103,3 %	91,5 %	82,1 %	88,9 %	87,3 %
Gross claims ratio1	84,6 %	77,8 %	72,6 %	59,3 %	93,5 %	102,8 %	72,6 %	84,7 %	86,6 %	77,3 %	79,3 %	77,8 %
Gross expense ratio1	6,2 %	7,6 %	12,5 %	12,3 %	7,0 %	8,4 %	12,7 %	14,4 %	5,4 %	5,6 %	9,9 %	10,8 %
Gross combined ratio1	90,8 %	85,4 %	85,1 %	71,6 %	100,5 %	111,2 %	85,2 %	99,1 %	91,9 %	82,9 %	89,2 %	88,5 %

Defined as alternative performnce measures (APM); APMer are described on www.protectorforsikring.no in document named APMs Protector Forsikring 2022 ² Does not include discontinued operations (change of ownership)

SOLVENCY AND FINANCIAL CONDITION REPORT | PROTECTOR FORSIKRING ASA | PAGE 4 of 30

The company's underwriting results in 2022 and 2021 are presented in Table 2 and Table 3 below.

Table 2 The company's 2022 results per line of business

General insurance	Life
	insurance

			Medical expense insurance	Income protection insurance	Workers' compensation insurance	Motor vehicle liability insurance	Other motor insurance	Marine, aviation and transport insurance	Fire and other damage to property insurance	General liability insurance	Miscelaneous financial loss	Group life	Total
Premium income	1,2

Premiums written	215 856	140 586	347 492	792 758	1 631 284	15 675	2 940 135	641 643	1 580	370 773	7 097 782
Premiums writen ceded	-34 292	-14 359	-27 861	-95 694	-118 072	-1 233	-413 945	-123 462	-128	-37 997	-867 043
Premiums written for own account	181 564	126 227	319 632	697 063	1 513 212	14 442	2 526 190	518 181	1 452	332 775	6 230 739
Premium earned
Gross premiums earned	203 890	138 955	340 703	759 741	1 475 902	15 413	2 670 412	572 816	1 599	361 606	6 541 036
Reinsurers' share of gross	-25 013	-12 572	-27 861	-95 694	-118 072	-1 233	-389 342	-123 020	-128	-33 507	-826 441
premiums earned
Premiums earned for own account	178 878	126 383	312 842	664 046	1 357 830	14 180	2 281 070	449 797	1 472	328 098	5 714 595
Gross claims incurred
Occurred this year	184 409	132 005	321 705	722 568	1 039 107	6 996	1 949 845	464 156	1 437	312 168	5 134 396
Occurred previous years	-50 568	16 709	189 692	28 407	-25 018	-1 898	-138 082	45 260	-504	-14 202	49 796
Total for the accounting year	133 841	148 714	511 397	750 975	1 014 089	5 097	1 811 762	509 417	932	297 967	5 184 191
Claims incurred for own account
Gross claims		133 841	148 714	511 397	750 975	1 014 089	5 097	1 811 762	509 417	932	297 967	5 184 191
Reinsurers' share of gross claims	-13 328	-15 771	-154 419	-100 069	-86 602	-408	-143 077	-109 249	-75	-27 186	-650 183
Total claims for own account	120 513	132 943	356 978	650 906	927 487	4 690	1 668 686	400 167	858	270 781	4 534 008
1	Premium income is related to insurance in Norway, Sweden, Denmark, Finland, and the UK. See Table 1 for segment information.

2	Defined as alternative performance measures (APM). APMs are described on www.protectorforsikring.no in the document APMs Protector Forsikring 2022

Table 3 The company's 2021 results per line of business

				General insurance					Life
										insurance
	Medical expense insurance	Income protection insurance	Workers' compensation insurance	Motor vehicle liability insurance	Other motor insurance	Marine, aviation and transport insurance	Fire and other damage to property insurance	General liability insurance	Miscelaneous financial loss	Group life	Total
Premium income1,2
Premiums written	191 850	133 044	321 103	796 692	1 284 936	16 118	2 347 274	533 234	1 835	324 484	5 950 571
Premiums writen ceded	-18 104	-13 405	-41 209	-101 514	-123 724	-1 561	-387 105	-105 759	-179	-32 656	-825 217
Premiums written for own account	173 746	119 639	279 894	695 178	1 161 212	14 557	1 960 169	427 475	1 656	291 828	5 125 354
Premium earned
Gross premiums earned	189 866	134 054	402 972	738 336	1 237 243	15 611	2 210 048	495 910	1 792	320 244	5 746 076
Reinsurers' share of gross	-18 104	-13 405	-41 209	-101 514	-123 724	-1 561	-385 790	-107 195	-179	-32 656	-825 339
premiums earned
Premiums earned for own account	171 762	120 649	361 763	636 822	1 113 518	14 050	1 824 258	388 715	1 613	287 588	4 920 737
Gross claims incurred
Occurred this year	174 783	144 809	316 250	830 255	755 438	7 249	1 345 749	426 195	592	300 446	4 301 766
Occurred previous years	28 040	27 315	172 944	187 446	-191 802	-6 310	-197 011	145 192	-433	1 250	166 631
Total for the accounting year	202 823	172 123	489 194	1 017 701	563 636	940	1 148 739	571 386	158	301 696	4 468 397
Claims incurred for own account
Gross claims	202 823	172 123	489 194	1 017 701	563 636	940	1 148 739	571 386	158	301 696	4 468 397
Reinsurers' share of gross claims	-19 796	-25 623	-127 028	-147 358	-54 818	-93	-112 382	-142 107	-16	-29 113	-658 334

Total claims for own account	183 026	146 500	362 167	870 343	508 818	846	1 036 357	429 280	142	272 583	3 810 063

Premium income is related to insurance in Norway, Sweden, Denmark, Finland, and the UK. See Table 1 for segment information.
Defined as alternative performance measures (APM). APMs are described on www.protectorforsikring.no in the document APMs Protector Forsikring 2022

SOLVENCY AND FINANCIAL CONDITION REPORT | PROTECTOR FORSIKRING ASA | PAGE 5 of 30

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Disclaimer

Protector Forsikring ASA published this content on 14 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 March 2023 20:31:48 UTC.

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