Protector Forsikring Ord

Hello and welcome to the presentation of quarter three 2025 result for Protektor. As always, I want to start with who we are and a small recap of what we did this morning with all employees. The topic has for some time been the challenger, and it's to us very relevant with new technology and AI and a more uncertain future when it comes to how we should do what we do. So what we have done lately is to involve all employees in exploiting the opportunities with AI. And we've done that through giving access to an enterprise model through Google to absolutely everyone. So it gives the opportunity to generate agents and use AI as we know it through ChatGPT and other types of platforms. What we want from it is to make sure that everyone understands the value of data, because when you use AI with poor or little data, then you get the wrong results. And data is our currency. It is one out of two targets we have for 2025 for the company. And we practice saying that it is our job to invest that data and create value by understanding our risks and making profits out of that. And some of the activity we've done is... as you have most likely heard, challenging to quantify in an actual return. But obviously there are efficiency gains that you get immediately from usage of AI. But our focus is more to see if we can solve the more complex tasks. So focusing on really challenging AI and the creation of agents and support to solve what we either have seen as too capacity requiring or too complex to solve ourselves. And what we see is that we get these efficiency gains, so we've made some agents and some functionality that reads through health documentation for personal lines or employee benefits in Norway. It takes five hours normally to read through it and get something out of it. Now it's a few minutes. We do that for incoming email. It makes it a lot more efficient. And that's interesting, but that's something that will happen. So, in our opinion, that's not where our focus should be. Our focus should be in seeing if we can get better results. And it is something interesting around... the fact that you will accept a poorer accuracy from a human than what you will accept with AI. And what we can see is that we get very high accuracy with very little effort. For instance, on what we call pre-underwritings, we get a tender, we get lots of information from the broker, and then we run it through a process that evaluates seven criterias. in order to decide whether we should spend time on it and evaluate it further and price it and quote it or not. And it is obviously also a start of the underwriting process. And we had one target and that was to increase the quote rate So meaning that we should actually quote more than what we have done because sometimes it is noise in the decision of whether to quote or not and some kind of assumption from an underwriter that this is going to take a long time or since I've seen it previously, it is a bad risk. which is not necessarily the case. It needs to be based on data. And we've increased the quote rate in the UK from 38% to 44% through using an application that we've designed on AI. And that's to us being the challenger. And then what we do becomes old very quickly as the technology develops. And we are not spending any time in predicting what this will look like in the future because I don't think that we have any edge in that. But what we do know is that we're not taking advantage of fraction of what we can do today. So we still have a lot of investment to do when it comes to utilization of AI and actually using data or investing data as our currency. We've discussed different ways of investing that time. We could have set up some expert center of excellence groups and seen if we could find something genius through those groups of people who know the technology and know the business. But we have decided that Protektor is, and we get some kind of, I've never used our, and I've used our values and our culture a lot in my decision-making every day, but I've never used it as much as now because it is more uncertain. And due to who we are, people who have a common set of values, who should make decisions, all of us, because that's what best-in-class decision-making is. we have decided that we'll include absolutely everyone in it but also that the only focus of our leadership development program that starts now in the first quarter of 2026 is AI. The previous decision not too long ago was data because that has been a focus but then we have realized that now it is about AI because it will include data and we need to make all our leaders, there are 140 leaders in Protector today, responsible for taking that ownership of utilizing AI because the fact is it is here and we are not utilizing even a fraction of it. So that's been part of the topic. And in order to do those things, we have also decided that for the first time in many, many years, all protected employees will get together. So in March, we will get all protected employees together in Norway at the place that is big enough to house close to 700 people. And we will have workshops. to decide together with everyone and pre-work before we go there who we will be and where we want to be in 2030. So, which could be an exercise that we did in the management group and we did as leaders, but we want to include everyone in that. It's a complicated resource requiring a task to do that well, and I don't know if we're going to do it well, but at least we have decided that going forward, both because we are growing becoming more people, more countries, and getting a bigger risk or having a bigger risk of becoming like everyone else, which is, in my opinion, the biggest risk of Protektor. We need to invest more in this and in our people. So that's the angle that we take to AI. And unfortunately, we don't have a lot of exciting demos and value creation documentation to share with you. But a lot of it is happening. And we are investing, which you have also seen in our cost ratio, which I will come back to. But then let's get over to the results. So the quarter three results are very strong on the profitability side. As always, I get back to normalizing that and explaining the underlying realities. We have a weak growth in quarter three, and I'll get back to that as well. And then the investment result is, in absolute terms, poor. And also that I will explain further when I get into that. On the side of that, the transfer deal of the portfolio on Danish workers' comp that we previously expected to be finalized in quarter three, and it was due to subjectivities, and that is mainly the authorities in the different countries, now expected to complete in quarter four so volume and and I think that this is in in many ways where we have spent more time this quarter because this is this is not anything close to what we have had previously in percent. It is the smallest quarter. It's 12% of the volume totally in Protector. So there is some volatility in it. But the composition is some underwriting discipline, which we should have. Profitability comes first. So we've lost some large clients. Some of which we wanted to lose, so we actually priced them out. Some we haven't managed to match the price, which is fair. And then there is this normal churn where we don't manage to renew all the clients. And then there are some technicalities. in this where inception dates moved from the volume incepted quarter three, 2024, and then they've moved the inception date to another. We mentioned this in the quarter one presentation that we had some volume there that moved to quarter two and quarter four. And there's some of that. But it's also, so it's a mix of that discipline and some technicalities, but also some realities. And the reality is that, in particular in the UK market, we don't get support from high inflationary increases on the prices anymore. So the property market, which is our biggest product, is in a softening cycle. So the rates are going down. And then we don't get that. Then we get very high churn if we continue to increase prices. And we don't need it, as you can see on the profitability side in the UK. So that's a reality. And we have talked about that before as well. I forgot to say that it's better if we have questions during the presentation than all of them are saved for the end. So please raise your hand and I guess you'll get a microphone if you have questions along the way here. So the market situation... in the different areas is interesting to say something about in quarter three. And there is not anything very special from what we have communicated previously. So the softening property market in the UK, and that's both corporate and public sector and housing, makes it harder to retain the clients at the same rate levels, and makes it harder to win new business. In the Nordic countries, it is no real change in the market situation, so it's still a rational market, but obviously we don't get that support from the same inflationary increases also there. And our new sales in quarter three are on the low sides. We've missed out on also some of the larger opportunities that sometimes come our way and now not. I wouldn't read too much into that part of it because it doesn't look like a trend. So that's quarter three. Any questions to quarter three, Sverre?

Nick first could you give a bit more flavor on the UK real estate statement you have on one of the bullets here to make us understand a bit more and the second question is that you have seen so far 460 billion euros in France, will that figure increase through quarter four, or is it kind of the final volume that you will see in entering January the 1st?

Yeah, I can do that. So I was just wondering if there were any more questions on quarter three, because I was going to get to those two. Yeah, Thomas. Yeah. Microphone. Amund can run a bit now.