Solid Försäkringsaktiebolag (publ)

and warmly welcome to our presentation of the first quarter of 2024. My name is Markus Tillberg, I am the CEO of Solid Insurance and with me today is Sofia Andersson, our CFO and together we will go through the development of the first quarter. I will start with some highlights from the first quarter, which we can see is a strong quarter where the total result increases by 9%. Our sales, our premium income during the period, comes in 6% during the previous year while we see largely the same level of our premium revenues. The revenues in our segment Product Assistance decreases during the period while we see an increase during the period in segment security and I will return to development in our segment a little later during the presentation. Our insurance technical result decreases by 3% during the period and reaches 38.8 million compared to 39.9 million during the same period last year. And even here we return with more details during the presentation. The positive trend we have seen in the financial sector during the previous year continues in the first quarter where we see a strong development that contributes to the total result developing strongly and increasing by 9%. And the total result for the tax goes up to 57.9 million compared to 53.2 million during the same period last year. If we look a little more at the development in the quarter, we have strengthened our partner base during the period. We have entered into an agreement with Njemi Bil, who strengthen our position in the insurance concept with Bilguarantier. We have entered into an agreement with Forux Bank, who will provide our travel insurance. And we have developed our cooperation with Synsam and I will return to this a little later. On April 1st we took over the business in the acquired company Svensk Bilhandelsförsäkring. This acquisition is similar to what we did in 2023 when we acquired Capotec on the Norwegian market and will increase our market share in the future due to the insurance concept with Bilguarantier. During the quarter, in January, our cooperation with Noi om Bank or Collector was launched and we expect to see the effect of this cooperation in the later part of quarter two. Our repurchase program has continued during the period and has by the end of the quarter rendered in that we have repurchased nearly 875,000 shares, which corresponds to 91% of the total mandate that was given to the company in April 2023. And regarding the distribution, the board has suggested the annual fee, which will be later today, a share of 4,50 per share, which is in line with our financial goals and distribution policy. And the board has also suggested a new repurchase program that gives the board the mandate to repurchase 5% of the existing shares. To summarize some financial figures, the premium income of the sales is 6% lower than the same period last year. The premium income is largely the same level as last year and we are delivering a security technical result that in the period then drops by 3%. The total cost per cent in the period goes up to 89.3%. And the result in the financial sector has developed positively during the period and increased to 28 million, which contributes to the increase in our total result per share by 9% in the period. If we then move and look a little more at our sales and how it distributes between our segments, the premium income will soon be below the same period last year, minus 6%. If we then look at how it distributes between our segments, we can see that it is clear that we have certain partners within the segment security, where we have some challenges, which means that that segment stands for 23% of our total sales and compared to 32% during the last quarter of the previous year. We are driving growth in the quarter within the segment security and there is an increase in the premium income in the first quarter, which is 39% during the period. If we look at how our sales are distributed geographically, the Nordic market stands for 90% of the volume and that is roughly the same level as we have seen earlier. If we then move over and look a little more at our segments, I will start with assistance, where we see a decrease in premium income with 10% during the period. The decrease is due in part to a lower sales within the insurance company related to the travel industry, while we also see a clear growth in sales development within the insurance concept related to car insurance, which is driven by both the Swedish and Norwegian markets. The premium income in the quarter drops by 6% and that is due to a lower sales of insurance related to travel. The gross profit decreases during the period with 14% and that is explained by a lower level of our income, while we have a relatively high damage cost driven by the insurance concept against car insurance. We see a small deteriorating margin and that is driven by lower income and a little higher damage costs during the period. Here we have also made a acquisition of Swedish Car Insurance during the quarter, which is a distributor of insurance concept against car insurance. Here we have now taken over the business from the first of April. We have started our partner base within car insurance, where we have signed an agreement with NEMI-BIL, while also signed an agreement with Forics Bank, which will inform our travel insurance. In the meantime, for this segment, we see a positive future and expect a pretty strong development ahead. If we move to products, sales during the period will decrease by 17%, which is primarily due to a lower sales related to the home electronics industry in the Swedish, Norwegian and Danish markets, where the current market climate continues to affect consumption in a negative way. We also see a lower sales related to the optics and the bicycle industry during the period. The premium income during the quarter decreases by 11%, which is due to a lower sales related to home electronics in the Swedish and Norwegian markets. The gross profit during the period decreases by 19% and it is driven by the lower levels we see in our income. Here we have developed our cooperation with Synsam during the period, which previously included their lifestyle subscription. In the future, with the launch in the fall, Synsam will also invite its customers who buy their glasses without subscription, a security solution from us. If we move to the segment security, we can see that the premium income increases by 6% during the period, and it drives a positive sales development in the Swedish, Danish and Finnish markets. However, we see a tougher development in the Norwegian market, driven by our largest partner adapting to new regulatory requirements. The premium income increases by 13% during the quarter, which is primarily explained by a better sales on the Swedish, Danish and Finnish markets. The gross profit during the period increases by 14%, is explained by the growth in our premium income and the positive partner product mix. The margin of the gross profit is also improved by a few, in comparison with the same period before the year. Here we have also launched our cooperation with Norwegian Bank during the period, which took place in the middle of January. Expectations of the effects of this cooperation are expected at the end of the second quarter of this year. With that said, I would like to hand over to Sofia, who will prepare for our figures in more detail.

Thank you very much. If I start with the premium income, it decreases by 1% compared to the previous year, and goes up to 277.8 million. If we compare the fourth quarter with 2023, the premium income increases by 3%, corresponding to 9 million. The increase in the quarter by quarter is primarily driven by the development within the segmental assistance and insurance against car guarantees, both in Sweden and Norway, and by the payment assistance insurance within the segmental security. The premium income within the segmental product decreased compared to the fourth quarter of 2023. The technical results of the insurance in the quarter decreased by 3% compared to the previous year, and went up to 38.8 million. If we look at the quarter by quarter, the technical result increased by 2%. In the case of rising market rates, the calculation rate for the calculation of the capital spending that moves up to the insurance movement increased, and this gave a positive effect on 2.1 million in the quarter compared to the previous year. The calculation rate, which is based on the average rate in the obligation portfolio, went up to .7% at the start of March this year, to be compared with .2% at the start of March 2023. The decrease in the technical results in the quarter mainly depends on lower gross profit from the product and assistance segment, and higher administration costs, which is related to our ongoing ERP project. The other administration costs are stable and in line with even a somewhat lower than the previous year. The total cost per cent increased to .3% compared to .2% in the fourth quarter. The increase is mainly explained by relatively high risk costs in the segment assistance and security and the higher administration costs related to the ERP project. The damage per cent increased to .4% in the quarter, compared to .7% in the previous year. This is primarily due to the development in the assistance and security segment. In assistance, it is mainly home-friendly and is used to provide the first-ever solutions for car insurance in both Sweden and Norway and to some extent also for road assistance. In the safety and driving segment, the increase in the damage per cent for the insurance is higher. We see a certain increase in damage due to unemployment in the quarter. The cost ratio improved and decreased to .9% compared to .5% in the previous year. This is mainly due to relatively lower revenue, and the cost of development in the assistance and security segment is mainly due to the higher damage costs. The administration costs in relation to the premium income are developed as expected, but increased compared to the previous year and the quota is 11% compared to .5% in the previous year. If we move to our placement portfolio, it is largely unchanged at the beginning of December, with an increase of 1.4 billion towards the end of December. The share price increased by 8% at the beginning of the first quarter, or 111 million. We have continued to mandate the Board of Directors to increase the share price if the placement committee finds it appropriate. The net investment for the first quarter increased to 64.8 million, and we have mostly invested in obligations and sales loans. Some remittances have also been made in the portfolio. The majority of the income is in the portfolio with a relatively short duration. During the quarter, we have also made resale of our own shares for 13 million. The capital allocation has shown positive results since March 2022, and this is mainly due to the development in market rates and the positive impact of our rent revenues. For the first quarter of 2024, the capital allocation result was 28 million compared to 20.4 million in the previous year. The rent revenues increased to 16.8 million compared to 10.4 million in the previous year. The rent revenues from the obligation portfolio increased to 14.2 million and from the rental to 2.6 million. The total investment for the first quarter increased to 1.6 million in the quarter, and we had 1 million last year. The unrealized value changes in the quarter increased to 9.5 million, where 2.2 million comes from the obligation portfolio and 7.3 million is owned by the action portfolio. The total investment for the first quarter increased from the beginning of the year to 2% compared to .5% in the previous year, and the average rent in our obligation portfolio increased to .76% at the beginning of March. The tax result was positively influenced by the development in the finance movement and increased by 9% compared to the previous year, and increased to 57.9 million compared to 53.2 million in the previous year. The result per share increased to 2.43 million compared to 2.14 million in the previous year. The company continues to show a stable and strong financial situation and the SCR-potent increased to 176% at the beginning of March. It is an increase of 6% compared to the beginning of December. The SCR-potent in the first quarter and four, 2023, and the first quarter 2024 are the two-thirds of the total investment. The investment is the same as the year 2022, the amount of 55 million and the expected budget for the year 2023 is 82.8 million. The Salvens capital increased in the quarter compared to the beginning of December and the amount of 888 million. It is due to positive results in the quarter of 45 million, reduced by the cost of 1.3 million from the two-fold solvent calculations in the calculation. The development in market risks resulted in an increase in the Salvens capital demand which was counteracted by a reduction in the output in the counterweight and insurance risk. In general, the Salvens capital demand was unchanged compared to the outcome of December and increased to 505 million. Our common financial goal is to increase the SCR-potent to at least 150%. The model is now over to Marcus again.

Thank you. If we allow ourselves to look a little forward we see that we continue to have a challenging market climate where consumers are still pressured. Like the market in general, we expect a lower interest rate during the year which will successfully reduce the pressure on consumers and thereby over time benefit our sales. Historically, we have managed to navigate quite well through crises or challenging market climate in a good way. I think so far that we have shown that our business model and our well-diversified partner product portfolio have shown to be strong in these more challenging times. We can also see that during a period with higher interest rates we have seen a very positive increase in our financial which contributes to the success of our good results. To summarize the quarter we can see that the first quarter, 2024, is a strong quarter where our total results increased by 9%. The prevailing market climate with a high interest rate means that our financial performance is good while we are primarily affected in our sales during the retail environment. Our partner base is growing during the period and we have also managed to perform a profit. The strong capital situation in the company is the S&R quota goes up to 176 at the beginning of the quarter, just before the end of the year. This is a good number for our share. Our retail and retail stocks have continued during the period and the board will also request approval of a new board regarding a new retail program. The share that is suggested to be communicated earlier for the vote that will be held later today goes up to 4.50 SEK per share compared to 2.85 SEK per share before the end of the year. With that said, we thank you for your interest and please open up for any questions.

Thank you, can you hear me? Yes,

absolutely.

Perfect, good afternoon. A few questions from my side. I thought it was a very strong sequential premium growth we saw here in Q1, especially if compared to Q4, which was up 3%. The growth rate is up 3% and we see a growth rate of .5% in the quarter over the quarter. Is there any special or success effect that boosts this?

No, it is primarily driven by the fact that we have had a stronger growth in assistance and the insurance we have against car guarantees that we are starting to get through here on the revenues and also that we see

a growth rate of .5% over the year. Yes, so we see that the annual growth is at a negative 1% and if we look back to the last quarter it was at minus 3%. When do you think we can expect that you will be able to deliver positive premium growth on a group basis?

I would say that if we look one quarter forward and look at the numbers, we see that the other half of this year

is the same. Yes, I understand. You mention many new partner signings in the quarter and you write about Swedish car sales and also about Nourion. How do you expect to see the impact on the numbers from all of these new partnerships that you have created?

Yes, Patrik, it is the insurance that we are working on, so unfortunately I have to be patient. It will come over time and Nourion, as we said, is expected to see that in our numbers a little more clearly in the later part of quarter two and when it comes to our sales we expect to see that in the top line right now in the second quarter while the result of the sales will take some time before it is revealed. And then the others that we have mentioned are the first to be launched So somewhere there?

Yes, and can you remind us that last year we saw a sequential drop in premium growth when we looked at Q2 versus Q1 and given the high level you are on in Q1 if we had seen, if we had expected negative growth on that year over year then it will fall here in Q3 I know that there are less work days and summer semester that can kick in at the end of June but what is the drive on the seasonality that makes Q2 fall against Q1?

We still have an effect on the insurance that we sold last year that will affect us in Q2 in relation to that and then there is also the payment for the insurance in Norway that we have seen a decrease in sales and they are also on longer term so it takes a little longer time for them to work out so it is mainly those two parts and of course also part of the product and the downfall we have seen in home electronics

Emma, there is a very strong result of the financial movement in Q1, as we have seen even in the last quarter but if we expect falling rates how will you work to maintain this strong result level?

That's the way it is if we were to get to a point where we see the downfall, it will successively mean that it will be tougher to maintain the level we have done here we have gone in on some fixed positions with the high cast that is one part we have done and that is what we can do as we see in the current situation

and do you have any run-time duration for those of you who know how long it is locked and when you can expect that it will successively roll off or will you start to notice it immediately when the rates start to come down in large numbers, do you think?

We will see a lower income from the portfolio when the rates come down and that part is still in the current rates and we have even on the fixed rates we have about the same duration we are up to 5 years on them to match what we have in our portfolios in our premium rates

On the other hand if you logically look at it a lower income level also means a higher market valuation in the portfolio

Yes, that is true I understand and finally I would like to zoom in on the combined ratio it was the highest level we have seen since 2021, if I am not mistaken and it is only 70 points from your financial goals and how worried should you be that this will continue to increase and that you will miss this or is it something that you see more as temporary and that you feel safe that you will maintain a level that is in line with your financial goals?

We are confident that it will be in line with the financial goals but we think it will be in line with the current rate in the next quarter where we have higher administrative costs linked to the final phase in the ERP project and we think that the loss ratio will also maintain the level that we have seen this quarter during Q2

Is there a risk that you mention the administrative costs that the on claims ratio will rise? Is there anything you see that you can temporarily parry to still control the combined ratio under 90% or will it make the combined ratio increase by over 90%?

We do not think we will land there, Patrick We have a solid project in progress that drives costs and it will do so for the first half year, we will see that earlier but to then fall back to the normal run rates we have in our administrative costs we are not particularly worried that we would bomb our financial goals after the total cost percent

That sounds great But that was all from me, thank you Thank you, Patrick

Thank you, Patrick

It does not seem like there are more questions and then we should thank you for us