Solid Försäkringsaktiebolag (publ)

Stort tack för det och varmt välkomna till vår presentation av det fjärde kvartalet 2024. Marcus Tillberg heter jag, vd för Solidförsäkring och med mig idag har jag också vår CFO Sofia Andersson och tillsammans så kommer vi att ta igenom utvecklingen för det fjärde kvartalet. And I'm going to start with some highlights from the quarter, which was a stable quarter, seen as the result of our insurance movement. If we start with sales development, it will decrease by 9%. And for those of you who have followed us for a while, you will probably remember that during the same period last year, we did a deal with Amtrust, another insurance company, which means that we handle the runoff that arose after our acquisition of CarProtect on the Norwegian market. In this case, there was a positive one-time effect corresponding to 14.5 million. If we adjust for that and the final collaboration with Power, we drive a underlying growth in the period of 10%. If we move on to our premium revenues, these increase by 2% in the period where the revenues in our segment security and assistance increase by 5% respectively 10% while we see a decrease in the product segment by 12%. I will return shortly to the development in more detail in our segment. Vårt försäkringstekniska resultat minskar i perioden med 6% och landar på 35,6 miljoner i perioden jämfört med 37,9 miljoner samma period föregående år. Justerar vi då för den delen som allokeras från finansrörelsen landar det försäkringstekniska resultatet i linje med föregående år. The result in the financial movement rose to SEK 7 million in the period where we compared ourselves to a very strong Q4 under 2023. In summary, this means that our total result in the period rose to SEK 37.9 million compared to SEK 64.4 million during the same period last year, where the difference in the quarter led to the development of our financial movement. Vidare under kvartalet har vi förstärkt vår partnerbas, tre nya partners i form av Skandinavien Foto, Synologen och Moank Bank och jag återkommer till de här lite senare under presentationen. Vårt återköpsprogram har fortsatt under perioden och har på utgången av det fjärde kvartalet renderat i att vi återköpt drygt 304 000 aktier, vilket motsvarar 33 % av det mandat som gavs på bolagsstämman i april 24. Sett till helåret så ökade resultat per aktie och uppgick till 8,99 kr, en ökning med 11 %. And against the background of the results of the year, the board has the intention to present the annual balance of SEK 5 per share, which is an increase of 50 or 11% compared to last year. In addition, stable development in the insurance policy and also looking forward to strengthening our partner base during the period. And to sum up the quarter in the financial figures that Sofia will get to later, the premium income decreased by 9%, while we see an underlying growth in each premium income of 10% adjusted for Amplestor Power, as I mentioned. Our premium revenues increase by 2% in the period and adjusted for that part of the financial movement that is allocated to our technical results lands for the insurance company's results in level with the same period last year. Our total cost percentage combined ratio rises to 89.2% in the period, which is then under our financial goal of 90%. Vi såg ett positivt resultat från Finansrörelsen under perioden som uppgick till 7 miljoner vilket dock är lägre än Q4 2023 som var ett rekordkvartal. Vårt totala resultat för skatt uppgick till 37,9 och resultat på aktiesätt i helåret ökade och uppgick till 8,99 kr för helåret. If we then move on and look a little more at our sales and how it has developed, we can start by stating that the premium income decreased by 9% in the period. Adjusted for once, the effect of the business with Amtrust decreased the premium income by 4% in the period. And if we then also adjust for the final collaboration with Power, we have a underlying growth of 10% in the period. Sepp till helåret landar premienkomsten i stort sett på samma nivå som under 2023. And if we also look at how sales develop between our segments, we drive growth within the security and assistance segment, which then increases the weight of this segment, while we see a decrease in the weight of segment product, which in the quarter stands for 21% of our total sales, which also depends on the final collaboration with Power. Geographically, if we look at the distribution of sales, the Nordic market stands for 91% of the sales volume in the period, where the Swedish market stands for a slightly larger proportion compared to the corresponding period in the previous year. And if we then look a little more in detail at the development within our segment, I was going to start with assistance, where the effect of Amtrust is seen in our premium income, which in the period in total decreases by 1%. But if we adjust for that one-time effect, we see a fine sales growth of 16% in the period, where the growth is driven by our insurance concept linked to car guarantees, driven by both the Swedish and Norwegian markets, as well as the insurance concept towards the travel industry. Premium revenues for the quarter and the whole year increase by 10%, which is due to the development we have seen within the insurance concept aimed at car guarantees. Gross profit decreases by 12% during the period, which is explained by relatively high purchasing costs during the period. In the quarter, we see a slightly reduced margin, which is driven by high purchasing costs due to a changed partner-product mix. In total, We see positive results in this segment and expect improved profitability development in the future. We move on to segment product, which reduces sales in the period by 40%, which is largely due to a lower sales of insurances linked to the home electronics industry in the Swedish, Norwegian and Danish markets. There was a concluding agreement with Power, negatively affected. Exclusive power reduces sales by only 3% in the period. Premium revenues in the quarter decrease by 12%, which leads to lower sales of insurance connected to home electronics. Gross profit improves in the period, increases by 13% and is driven by an improved margin, depending on lower purchase costs and slightly lower damage costs. Vi har under perioden tecknat två nya partneravtal inom detta segment i form av Scandinavian Foto som kommer att erbjuda deras kunder som köper fotoutrustning i våra försäkringar och Synologen som är en optikerkedja med cirka 100 optiker. Om vi då förflyttar oss till segment trygghet så kan vi konstatera att premieinkomsterna ökar med 12 % i perioden and is driven by a positive development in the Swedish, Finnish and Norwegian markets, where our new partnership with, for example, Norion Bank contributes to growth. Premium revenues increase by 5% per quarter, which is primarily explained by a better sales on the Swedish and Finnish markets, and accumulated increases in revenues by 19%, also here driven by the Swedish and Finnish markets. Gross profit increases by 3% in the period, and this is explained by the growth in premium revenues, while the gross margin is reduced a bit due to relatively high damage costs and procurement costs. Here we have also signed a new partner agreement in the form of Moanc Bank, which will formally be our insurance with a planned launch in the summer of 2025. And with that said, I would like to hand over the floor to Sofia.

Thank you very much. If we start with a short summary of the development in premium revenues. Premium revenues increased by 2% in the quarter compared to the previous year and went up to 273.1 million. This increase is related to the segment assistance and security, while the revenue decreased in the segment product. Seget i helåret ökade premiintäkterna med 3 % jämfört med föregående år. Det här var drivet av segment trygghet. Det försäkringstekniska resultatet i kvartalet minskade med 6 % jämfört med föregående år och uppgick till 35,6 miljoner. Exkluderat en del av kapitalförvaltningen som allokeras till försäkringsrörelsen var det försäkringstekniska resultatet i stort sett i nivå med föregående år. Segment produkt And security contributed positively to the result in the quarter, while segment assistance decreased compared to the previous year. For the whole year, the insurance tax rate decreased by 8% and went up to 148.8 million. And here it was segment security that contributed positively through a higher gross profit result, through both segment product and assistance, showed a lower gross profit result compared to the previous year. The total cost percentage for the fourth quarter rose to 89.2% compared to 88.8% for the previous year. This increase was explained by higher operating cost percentage driven by relatively higher procurement costs within assistance as well as higher administrative costs, which was higher mainly due to higher personnel costs. The operating cost percentage went up to 63.3% against 62.9% in the previous year and the damage percentage to 25.9%, which was in line with the previous year. The damage percentage improved compared to the third quarter and it went up to 26.4%. For the whole year, the total cost percentage went up to 89.6% compared to 88.8% in the previous year. The increase compared to previous years is mainly due to higher damage costs. The damage percentage increased in all segments compared to previous years. The total increased to 25.2% compared to 24.1% in previous years. The operating cost percentage increased to 64.4% compared to 63.9% in previous years. Primarily due to higher administration costs, where the quota in relation to premium income increased and increased to 11.1% compared to 10.7% in previous years. The increase in costs is mainly related to the project we have implemented with the DORA regulation and the new ERP system, as well as increased staff costs. If we then look at our placement portfolio, it increased to approximately 1.4 billion at the beginning of December. Aktiendelen har minskat något jämfört med utgången av september och uppgick till 104 miljoner eller 7% av den totala portföljen. Ränteportföljen minskade med 44 miljoner jämfört med utgången av september och det här är till följd av en del avyttringar som har gjorts under det fjärde kvartalet. I det fjärde kvartalet så uppgick avyttringarna netto för hela portföljen till knappt 47 miljoner och för helåret till 28 miljoner. Returns of own shares have been made for 38.6 million SEK, and the dividend from 2023 has been paid out with almost 83 million SEK. Since the third quarter of 2022, the financial movement's results have been positive, but in varying sizes. The fourth quarter of last year was a record year with a positive result of 33.2 million SEK. För det här kvartalet, 2024, uppgick resultatet i finansrörelsen till 7,1 miljoner. Ränteintäkter från ränteportföljen och indordning uppgick till 16,4 miljoner jämfört med 19,3 miljoner förra året. Realiserade vinster från avyttrade innehav uppgick till 6,5 miljoner. Both the share and obligation portfolio decreased in value in the quarter and the unrealized result was negative and increased to minus 14.2 million, where 11.6 million was added to the share portfolio and 2.6 million to the rental portfolio. Accumulated capital management results increased to 90.7 million for the entire year against 85.6 million the previous year. And the total dropout increased to 6.6%. to 6.2% last year. The average interest rate in the obligation portfolio decreased to 4.75% from 5.4% at the beginning of September. This can be compared to the beginning of December last year, where it rose to 5.7%. The lower result in the financial movement resulted in a reduction of 37.9 million SEK per quarter. For the whole year, we ended up with a result of SEK 211.2 million, which is 4% lower than last year. The result after the tax was in line with last year and increased to 164.7 million SEK. Resultat per aktie ökade med 4% till 8,99 kronor jämfört med 8,67 kronor förra året. Styrelsen ämnar som Marcus sa tidigare att föreslå årsstämmaren utdelning om 5 kronor per aktie vilket då är en ökning med 11% eller 50 öre. Bolaget uppvisar en stabil och stark finansiell ställning och SCR-kvoten uppgick till 198 vid utgången av december. Det är en ökning med 6 procentenheter jämfört med utgången av september och med 28 procentenheter jämfört med Q4 2023. Då ska det noteras att i SCR-kvoten för 2023 så är utdelningen inkluderad vilket det inte är i beräkningen då för det här kvartalet 2004. Sovelskapitalet ökar i kvartalet jämfört med utgången av september och uppgick till 987 miljoner. Det här är som en följd av ett positivt resultat medan kostnaden för återköp av egna aktier har minskat. Sovelskapitalkravet var i linje med utgången av Q3. Vårt kommunicerade finansiella mål är ju att SCR-kvoten ska ligga på minst 150 %. I'll hand it over to Marcus again.

Yes, thank you. To sum up the quarter, we can state that the fourth quarter delivered a stable development in the insurance industry. The premium income is decreasing by 9%, but the underlying business is delivering an increase of 10% of our segment security and assistance is going strong. Våra premieintäkter ökar med 2 % i perioden och vi har lyckats då förstärka vår partnerbas med tre nya partners. Vi har en mycket stark kapitalsituation i bolaget där ECR-kvoten ökar i perioden och uppgår till 198 % per den sista december 24. Vårt återköpsprogram har fortsatt under perioden, återupptas nu under dagen och sett i hela året ökat resultat per aktie och uppgick till 8,99 kr. Mot bakgrund av detta föreslår styrelsen en utdelning av 5 kr per aktie, en ökning med 11% jämfört med förra årets utdelning. Och med det sagt så tackar vi för intresset idag och öppnar upp för eventuella frågor som kan finnas.

Under frågestund kan deltagarna ställa frågor genom att trycka fyrkant 5 på sin telefon. Om du vill dra tillbaka din fråga, vänligen tryck fyrkant 6. Den nästa frågan kommer från Patrik Brattelius från ABG. Varsågod. The next question comes from Patrik Brattelius from ABG. Hello, can you hear me?

Yes, we heard you there, Patrik.

Super, I heard that line unmuted, so then we can start. A few questions from my side. If we look at gross return premium, if we start there, then it is down 9% year over year, driven by this power collaboration that has ended. Men vi vet ju att gross written premium tillväxten den är ju lite före andra topplinjen i resultaträkningen så ska vi förvänta oss att premietillväxten ska röra sig mot liknande tillväxt de kommande kvartalen.

Jag misstänker att du tänker på hur det påverkar net earned. Ja exakt. And then you know our financial goals. And if you look a little forward and look at the whole year that we are in, we are aiming for our financial goals. Then we will probably not get into the upper span, but if we can get into the inner span, then we can say that this is what we are aiming for.

I understand, but does this not mean that we will see negative net earned premium growth in the next two quarters, given that it has been such a big partner to you?

It will affect, but we also have other businesses, of course, and drive growth in two other segments. So we are hopeful that we can keep our nose above the water surface. And seen throughout the year, it is so that we aim to get into the span of the financial goals.

Thank you. And these new partners that you signed in the quarter, what were your expectations about the impact for 2025 and maybe if you look a little further out?

Not a big impact during 2025. If we take Moanc, I mentioned that they plan to launch in the summer. It takes time to build these portfolios. Man ska inte förvänta sig någon större resultateffekt av de här under detta året. De andra affärerna kommer lanseras en under början Q2 och en som är också till sommaren då. Så vi får helt enkelt som vanligt ha lite tålamod och Maybe look a little further ahead before we see a positive effect on the results of these deals.

Thank you. And you are writing new partners that you are signing, but have you lost any partners here besides Power over the past six months?

No, we haven't.

Thank you. If we look at the investment portfolio, it was down a lot year over year. But we saw that it was due to unrealized losses. But we see that the interest rates continue to go down. And should you expect, earlier we talked about a return on the portfolio of over 2%, if I'm not mistaken. How should you think about a normalized run rate level for the portfolio when we look into 2025, given the new interest rate we are in?

If we just look at the interest rates, I would say that, as I said, the total interest rate now on our portfolio is at the beginning of December 475. And then it is a little lower, as you understand, on the loan parts. But a run rate on the interest rate should be around 11-12 million in the quarter, I would say, in the coming quarter.

Great, thank you. But if you look at the portfolio, it is 17% plus 7% in cash. That sounds like a very large part from my perspective. But why don't you invest a larger part in bonds or shares compared to the current one?

Du har ju rätt i det. Ibland är det skönt att ha lite tårt krut, men det är klart att vi vill aktivera de här medlen i en större utsträckning än vad vi har just nu. Så det ser vi framför oss att det kommer att ske.

Var är den rimlig? level or if you just say this rough target level on how big the cash register should be in such an asset management split?

Somewhere around 100 million in the cash register.

Okay, because you are on just under, yes, it's a lot. It's a decrease compared to the current levels. I understand.

If we then slide over to... Can I add something, Patrik? The expected allocation will also be in May, which will require the cash.

Yes, of course. But if we are on the allocation, Solvency-quoten, den nämner ni ju, är x utdelningen som ni har föreslagit. Så vad hade solvency-kvoten varit inklusive den föreslagna utdelningen, så vi kan jämföra äpplen med äpplen jämfört med förra året?

Den skulle hamna på strax under 180, inkluderat den beräknade utdelningen. Allt annat likadant.

Tack. And my last question is about the resale, where you flagged that you have so far only used 33%, it sounded like. And how come you have not used this mandate anymore? Is it something that has kept you back? Kan vi förvänta oss en acceleration här i början av 2025 och har ni som målsättning att komma upp mot 100% eller har ni en mycket lägre målsättning hur mycket av mandatet som ska utnyttjas?

We would have wanted a little more trade in our shares, so the pace depends on how big the trade is. We will not get up to the full mandate of 100% before the vote. We will also have a quiet period in Det blir väl i slutet av mars den inträder. Så vi har lite ont om tid för att hinna hela vägen fram.

Men om jag förstår det rätt så är det så att om man själv har hand om mandatet, då innefattas man av tyst period. Men om man lägger ut mandatet på en extern part, So kan man fortsätta att köpa tillbaka aktier i även tyst period? Är det någonting ni har tittat på och kan tycka var intressant att byta strategi?

Det har vi gjort när vi inledde våra återköpsprogram för, detta är väl tredje återköpsprogrammet tror jag och då gjorde vi det och då gjorde vi bedömningen att den varianten vi har nu var den bästa för oss då. Hur det blir framåt återstår att se men så att det kan jag inte svara på här och nu om vi vill ändra nuvarande modell.

Min sista fråga är på lite samma tema. Ni är ju väldigt starkt kapitaliserade med den här solvenskvoten, även justerat för utdelningen som ska gå. Ska man förvänta sig ett nytt återköpsmandatförslag när vi tittar in senare under året?

Jag skulle bli mycket förvånad om styrelsen inte ber om ett nytt mandat från årsstämman. Sen är det ju naturligtvis upp till styrelsen att aktivera detta efter ett sådant beslut. Men så här och nu kan jag väl säga att jag skulle bli förvånad om vi inte erhåller ett sådant mandat från stämman.

Thank you. And one last question when we are talking about capitalization and the like. Do you see anyone in the competitive landscape who does it well? And some interesting purchase candidates? And how do you see the competition? And has it changed anything in the past six months? And if you think that the competitive landscape will change, given I think if you look at Solide's competitive landscape, we have been exposed to competition all the time.

And then of course, there are some changes in which actors are in the market. But I would say that competition Situationen är konstant och jag ser inte någon förändring i det framåt utan jag är ganska övertygad om att Solides värdebaserade erbjudande står sig starkt i marknaden. Gällande förvärv som du pratar lite om så har vi ju i stort sett gjort ett förvärv om året här de senaste åren och det är ju alltid så att vi We look at the market and assess and evaluate possible opportunities that may arise. You mentioned that we have a strong capital situation and we want to do as valuable an initiative as possible for our shareholders and we do not exclude acquisitions.

Thank you. That's all from me.

No more questions. Thank you, Patrik. Det finns inga fler frågor just nu, så jag lämnar över ordet till talarna för eventuella avslutande kommentarer.

Då ber vi att få tacka så mycket för visat intresse och på återseende i april blir det.

Tack så mycket!