Protector Forsikring Ord

The presentation of first quarter results 25 for Protektor. In the beginning, I will, as always, if I make this work, say a few words of what we did this morning. And it had to do with this, our culture. and understanding that in relation to what I would call a crossroad that we're at. I mentioned data as a main focus in the quarter four presentation. So it's one of two targets we have for 2025. Profitable growth is one. You could say that's two, but normally we would have three or four if you say profitable growth is two. Now, data as currency, is what we call it, is number two. Understanding that in relation to who we are and what it means to recruit, develop, retain the right people. And I think the right people is important. And also what it means in order to develop how we understand what it means to be the challenger and what our values mean has been part of the presentation and discussion this morning. One central initiative that we have made has to do with technology. So when we say something, we mean it. And when data is one of the targets, then we mean it. We set targets, specific measurable targets, define what it means. But we have also launched, as an early starter, an AI tool for all employees in Protektor, which can help us in many ways, but maybe most importantly, will make it visible that data is extremely important, because without data, that doesn't work. So when 600 people have access to something that will make their everyday easier and more interesting, but it doesn't work if you don't have a good structure on your data and good quality on your data or enough data, then we can accelerate that culture of understanding what data means. So that's been the main topic this morning when releasing the results for quarter one. And the results, they are very strong. So the headlines of 85.9% combined ratio. I'll get back to that needs to be adjusted up because there is fewer large losses and some runoff gains in that figure. A strong growth in the first quarter, which is old news. We've talked about 1st of January previously. and a strong profit at the end with a strong investment result amounting to nine kroners per share. We've also mentioned a few other news during the quarter. The tier two bond, which I will come back to on the solvency side later was placed successfully. We have also signed an agreement of transferring the workers' comp portfolio in Denmark fully to Darragh, which we've had a loss portfolio transfer agreement with since 2021. So they've had 70% of their reserves up until October 21. And Now that's a full agreement, subject to some conditions and approvals. So that's in use. We don't do that kind of business anymore, so it would be good to get it out of our books and out of the Danish organization. It will have limited effect on both profit and loss and the capital situation. Other than that, the news in the quarter is about April 1st in the UK, where I'll get back to a bit more around it later, but where we've had a more normalized growth, but still strong growth on that quarter. And obviously the turbulence in the financial markets and the trade war, as we have named it. So I'll get back to all of that. So on the growth side, we've mentioned here a very small number. It's not very important, but when there are some specific technical elements to the growth numbers, we can mention it so that you understand that the very low figure in a fairly small quarter for UK is actually slightly higher than that. The running rate is more similar to what the 1st of April numbers are. and that's due to a change of inception dates of some volume, but it doesn't matter for Protektor as a whole, but then you understand more that the running rate is similar to 1st of April. Other than that, we have very strong growth in Norway, Denmark we mentioned that that's first of January mostly and the market situation is rational in Norway and Denmark is the way we see it whereas in Sweden there is some more competition and from our point of view also some irrational competition in particular on the on the motor sites we have a slightly higher turn on on on the Swedish portfolio and slightly lower heat ratios in new sales than we have in the other Scandinavian countries. So that's the situation for quarter one. the UK and public sector first. There is a normalised competitive environment, more back to where we were previously. We've expected this. I think it's good that it returns to some kind of a normal situation because it has not been normal, in particular 1st of April 2023. But what it means to us is that we don't win as many of the slightly higher risk clients with higher premiums and higher rates, but we still win a fairly large share of what we call the green risks, the green and white risks. So that's how that has turned out, 1st of April 2025. And in the commercial sector, UK, we have had some issues on motor profitability with increased prices and we have a slightly higher churn there and don't win as much business as we have done previously. So it's more of a normalized situation, a softening market in the UK, and then very much the same situation in Norway, Sweden, Denmark. We've talked about France, nothing large has happened there since the 1st of January wins that we released 20th of January, but it is a start. And that start also shows in the profitability figures. So I can start with the smallest country first, which is France, when Finland is included in Sweden, where obviously we have a high cost in the beginning in a new market, but we've also had one fire. one large loss in the French portfolio. I think that's good. We get to test how we handle a claim like that. We've had it in almost every country we've entered in the first quarter following first or second quarter. So I don't think that's statistically significant, but at least it has happened. So it's an observation. And so we don't know anything about the French profitability. That's the point. There's one large loss there. It's high cost. We don't know anything yet. What we know is that we've underwritten the French business at what we think will be profitable levels. So let's see when we get a bit further down the line. There is some lag on reporting since the brokers do claims handling up to 20,000 euros in France. That's the same for everyone in the market. So there's some lag in the reporting. a bit more in the blind in the short term. And then we'll get that going and we'll also challenge that process so we get better reporting. The other countries have improvements relative to 24. but basically no large losses on the UK with some, five and a half percentage points or something in the UK and the rest is basically zero. So that needs to be adjusted. When it comes to runoff gains, or runoff, there are gains in 25, and we have losses in 24, and the gains are mostly on the property side. We have some losses on motor in Scandinavia. If you do the simple adjustment or normalization of the results, you'll have approximately 1.6 percentage points worse combined ratio. So 1.5 or 7 on the claim side in 25 relative to 24. Parts of it, or a small part of it, is France, of course. Now that's included in the figures. So if you normalized France, you'd get a slightly lower loss ratio. But the rest of it is some volatility. And my view is that the underlying reality is better in 25 than what it was in 24. And it will be too complicated to go into all the smaller reasons for why that's the truth. But that's my view, at least. I forgot to say that questions during the presentation are welcome. So please ask questions during the presentation or wait till the end. It doesn't matter. Almen has a microphone.

You could probably repeat. How do you deal with the cost on claims handling in France? Is it on the commission side? Or do you pay directly to the brokers the claims handling cost on the frequency-based cost you just mentioned?

So the question is about the claims handling cost for the smaller claims in France. Is it booked on the commission side or on the claim side? And the answer is that it is part of the commission to a large extent, but then there are specific claims handling costs that are allocated to the claim. So most of it is in the commission. Jan-Erik, you can...