Solid Försäkringsaktiebolag (publ)

Thank you very much for that and I would like to welcome everyone to our presentation of the first quarter of 2025. My name is Marcus Tilberg and I am the CEO of Solid Sector and today I have Sofia Andersson, our CEO, and together we will go through the development of the first quarter. If we start with some highlights from the first quarter, we can see a stable development in our insurance industry. If we start with the sales development, it will decrease by 16%, but in addition we see a underlying sales increase by 5% compared to the same period the previous year. I will come back to the details about the sales development when we come into development in our segment. If we move to the development of our premium income, which decreases during the period with 1%, where the income in our segment security and assistance increases by 3, respectively 5%, while we see a decrease in the product segment with 15%. The insurance technical result increased to 27.5 million in the period compared to 29.9 million in the same period the previous year, adjusted for that part of the result allocated from the finance department. The result in the finance department increased to 13.1 million in the period compared to the first quarter during the last year. The total result in the period increased to 40.5 million in comparison with 57.9 million in the same period the previous year, where the difference in the quarter can be seen in the development of our finance department, where the turbulence in the financial markets at the end of the quarter has negatively affected us. Further, during the quarter we have carried out a acquisition in the form of a warranty partner, which strengthens our position in the additional insurance concept against car guarantees in the Swedish market. From the middle of April 15, we have taken over the activity, which we estimate to be around 20 million in the rolling 12-month period. We have also extended our cooperation with NEMI BIL during the period, where we will carry out a geographical expansion to the Finnish market, also within the area of car guarantees. This cooperation we plan to launch during the second quarter. Our cooperation with RIDERMARK BIL is also extended during the period. The new agreement involves some differences that affect the premium income and the acquisition costs. I will return to this shortly. We have also launched our own accident insurance from the first of January. We have previously distributed a similar product with SHUB as the insurance provider, but now it is instead SOLID that stands the risk for this product. If we look a little more at our sales and how it develops, we can start by noting that the premium income decreases by 13% compared to the same period before. If we then adjust for our new agreement with RIDERMARK and Power, we see a underlying growth of 5%. If we look at how sales are distributed between our segments, we drive growth within the segment insurance, which makes it the largest segment for us in the quarter, which stands for 49% of our premium income. Assistance accounts for 36% of the premiums in the quarter, and the reduction we see in the product makes that segment in the quarter stand for 15% of our total sales. This is largely due to our joint cooperation with Power. If we look geographically at how sales are distributed, the Nordic market stands for 89% of the sales volume in the period, and the Swedish market now stands for a larger share compared to the corresponding period before. If we then look at our segment, I will start with segment assistance, where the effects of our new agreement with RIDERMARK and Power are seen in the premium income, which in total decreases by 16%. If we adjust for this one-time effect, we see a sales growth of 3% in the period, where the growth is driven by our insurance concept against car guarantees, primarily from the Swedish market, but also to a certain extent from the Norwegian market. If I comment a little on the new agreement with RIDERMARK, it means that SOLID retains our risk premium, that is, no purchase costs and charges the business. If we look at the whole year's basis, how we think this will affect us, it is about 80 million that premium income will be affected, but the corresponding amount will reduce purchase costs. So that we have a neutral net effect, and throughout the year we do not see any material effect on the result of this new agreement. If we move on to premium income, they increase by 5% in the period, which depends on the sales development we have seen in our insurance concept directed against car guarantees. Gross profit decreases by 6% in the period, which is explained by relatively higher purchase costs in the period. Then we see a slightly decreased margin, which is due to the high purchase costs driven by a changed partner product mix. Our profit during the period ends in this segment, where we from and with April 15th have taken over the business, which means that we strengthen our position further in the Swedish market as far as car guarantees are concerned. We also look forward to expanding to the Finnish market during the second quarter with our insurance concept of car guarantees, thanks to our increased cooperation with NEMI-BIL. We move on to segment product, which decreases sales during the period by 44%. This is largely due to low sales of insurance connected to the home electronics industry in the Swedish, Norwegian and Danish markets, where our final cooperation with Power has an negative effect. Exclusive Power decreases sales by 7% in the period, where the market climate affects negatively. Premium income in the quarter decreases by 15%, and this leads to a lower sales of insurance connected to home electronics. Gross profit is improved in the period and increases by 4%, which is largely due to an improved margin, depending on lower purchase costs and lower damage costs. We have also launched our collaboration with Synologen, which is an optical chain with about 100 optical devices. If we then move on to segment security, we can see that premium income increases by 10% during the period, which is driven by a positive sales development in the Swedish and Finnish markets, where our new partner collaboration with Norge & Ombank contributes positively to growth. Premium income increases by 3% during the quarter, which is primarily due to a better sales in the Swedish and Finnish markets. Gross profit decreases by 6% during the period, which is due to a development in the Norwegian market. With that said, I would like to hand over to Sofia. Thank

you very much. If I start with a short summary of premium income for the first quarter, we see that they decreased by 1% during the previous year and increased by 273.7 million, which was slightly better than the fourth quarter in 2024, when they increased by 273.1 million. The decrease in the quarter compared to the previous year is related to the development of the InMOM segment product, where premium income decreased by 15%, primarily due to the home electronics industry. If we exclude Power, which is in runoff, the decrease increased by 7%. In the segment assistance, premium income increased by 5%, driven by growth linked to insurance companies against car guarantees in Sweden and Norway. In the segment security, premium income increased by 3%, primarily due to the payment insurance on the Swedish and Finnish markets. Premium income in Norway and Denmark decreased compared to the previous year. If we look at the insurance technical results in the quarter, it decreased by 13% in the previous year and increased by 33.8 million. Due to lower average insurance technical expenses and a lower average interest rate in the obligation portfolio, the share of capital spending allocated to the insurance industry decreased compared to the previous year. If we exclude this part, the insurance technical results decreased by 2.4 million. The decrease in the quarter mainly depended on lower gross result from the assistance and security segments. Our total cost percentage increased by 90% compared to .3% last year, mainly due to a higher cost ratio, which rose to .6% compared to .9% last year. The increase in the cost ratio is mainly explained by the lower premium income, which led to relatively higher administration costs and relatively higher purchase costs in the segment security and assistance. This is due to a changed product and partner mix in those segments. The actual administration costs were developed as expected and were in the same level as last year, but the quota increased to .3% compared to 11% last year. The damage percentage was in the same level as last year and increased by 25.3%. It improved compared to the fourth quarter, 2024, when it increased by 25.9%. The actual damage costs were 2% lower than last year and were also lower than in the fourth quarter, 2024. This is mainly due to lower damage costs within the segment product. The damage percentage increased in the assistance and security segments, mainly due to insurance solutions against car guarantees. In the security segment, the increase was mainly due to higher damage costs for insurance companies in Sweden. If we look at our placement portfolio, it is somewhat lower than at the beginning of 2024, with an average of 1.375 billion. The share price increased by 7% at the beginning of the quarter, or 95 million, where about 50% of the mandate from the board is new. The share price can increase if the placement committee finds it appropriate, but for the time being we have a more cautious view. The net investment for the first quarter increased to 70 million, where the share price has been placed in the obligation portfolio. Some reallocation has also been done in the share portfolio. The majority of the income in the portfolio runs to the mobile loan and with relatively short durations. Re-buy of own shares has been done for 10 million during the quarter, and the re-buy was extended until March 7. The board has submitted a proposal to the board on the introduction of 382,742 shares. The first quarter of 2025 was concluded with uncertainty and turbulence in the environment, which affected the capital markets and also affected the market valuation in our placement portfolio. The unrealized value changes increased to minus 3.7 million, where 3 million is linked to the share price and 700,000 to the rental portfolio. The unrealized value changes last year were positive and increased to 9.5 million. For the first quarter of 2025, the capital management result increased to 13.1 million against 28 million last year. The rental revenues totaled almost 14 million against 16.8 million last year, where 11.4 million is linked to the obligation portfolio and 2.5 million to the rental portfolio. We have received payments of 300,000 per quarter against 1.6 million last year. The realized profits from the re-buy of own shares increased to 5.2 million during the quarter. The unrealized value losses increased to minus 1.7 million in the quarter, and this is due to the Swedish crown being strengthened against all the value and the company being exposed to it. The unrealized value changes last year gave a positive result effect of 900,000. The total withdrawal for the first quarter from the beginning of the year increased to .1% against 2% last year, and in the 12 months it is now up by 5.8%. The average income in our obligation portfolio increased to .64% at the beginning of March this year compared to .76% at the beginning of March 2024. Our budget result decreased to 17.4 million, and this is primarily explained by the low capital management result. The insurance-technical result, excluding the allocated capital management, decreased by 2.4 million, and the result per share decreased to 1.75 crowns against 2.43 crowns last year. We continue to show a stable and strong financial position, and the S&R quota increased to 188% at the beginning of March. This is an increase with 8% revenues compared to the beginning of December and 12% revenues compared to the beginning of March 2024. The distribution of the year 2023 was estimated at 82.8 million, and the annual budget proposal for the year 2024 is estimated at 5 crowns per share. A total of 90 million will be paid out in the beginning of May. The capital management capital increased in the quarter against the beginning of December and was estimated at 916 million. The increase was explained by the positive results in the quarter, reducing the cost of the repurchase of the stocks that were made. The capital management capital demand increased to 488 million, a decrease of 10 million against the beginning of December. This is driven by a small decrease in the capital management capital demand linked to the market's return on capital and insurance risk. The communicated financial goal is that the S&R quota should increase to at least 150%. I will hand over to Marcus again.

Thank you. If we summarize the quarter, we can see that the first quarter delivered a stable development in the insurance industry. The premium income decreased by 13%, but the underlying business delivered a growth of 5% of our segment security and assistance goes strong. We have carried out a acquisition in the period in the form of a guarantee partner, from which we took over the business on April 15. We are now carrying out a geographical expansion to the Finnish market, sending our insurance concept to car guarantees. We have also launched our own accident insurance that will be sold directly to consumers. As Sofia mentioned, we have a very strong capital situation where the S&R quota goes up to 188% at the beginning of the quarter. Our repurchase program of our own stock has continued during the period and on the business mood that occurs later today, the board is asking for a new mandate regarding the repurchase for the coming period. The decision will also be made on a share that goes up to 5 SEK per share, which is an increase of 50 SEK compared to the previous year's share or 11% increase. And with that said, we thank you for your interest and open up for questions.

The next question comes from Patrick from ABG.

Hello, good afternoon. Can you hear me? Absolutely. Hi. Super. Yes, I thought we could start with the financial goals and how you think about them with a background on what we have seen. We have seen that

NetEarn

Premium, which you are flagging, falls by 1% and that you have a target to reach between -7% and then we have some changes with different partners. How do you think in the short term for the whole of 2025 about this goal?

The goal is set over time and it will be challenging to reach 2025. But if we look at the underlying, when we remove these changes in the agreement with Riddermark and Power, we see that we have an increase in our premium income even this year.

Yes, but if we compare reported to underlying, what do you think the effect will be? I think so.

But if we adjust to the ones that Sofia mentioned, is there a chance that we can reach the premium income throughout the year?

Yes, thank you. And we continue with the financial goals. The combined ratio is out of the target level at the moment. Can you talk a little about how you think about the goals for the coming quarters for 2025? Because I think that when Power gradually falls, it should be positive for the combined ratio. But how do you think?

If we look at the whole year, it could be that we are about where we are when we enter the second quarter. We think it will improve during 3-4. So in the whole year we think we will achieve the financial goal. Thank

you. It has been quite shaky here in the stock market and the obligation market. There have been big currency movements here. How has that affected your investment portfolio in the second quarter? Is there something you should be aware of in the second quarter?

We have been in the interest portfolio and what we have is the run rate of the interest. It has gone down a bit in the form of the changes that have been made and what is happening there. We have talked about 12 million in the quarter before. I would say that it is closer to 11, .5-11 more. Then the situation on the stock market is difficult to predict what will happen with the market value there.

Can you talk about a large or relatively small exposure to the US that has been affected by valuation and currency? Or is it mostly Nordic exposure or European?

We have a relatively small exposure to the

US. I understand. Finally, about the return on the exchange. I know that it is a decision by the board, but they usually ask and discuss with management. How do you see the possibility of increasing the share forward in relation to what you are currently on as a form of coming down on the solvent rate tune to the 150 level with the thought that you may not reach up to 5% return on a year basis. What do you think about that resolution?

For the first, we have a strong position in the company. It is more possible for the board to simply do good things for our shareholder. We will buy back a part. We hope for a positive decision today and then the board will choose to activate this. Hopefully, we can buy back shares in a larger scope than we were able to during the latest return program. You have to follow this and see how it develops. You also have to look at what opportunities are in the market. In the meantime, the board can simply leave a proposal regarding the distribution next year. These are many factors that affect and the board will follow them during the year.

I will follow up on your answer. What factors do you think would make it possible to reduce the return mandate this year compared to the year we are leaving?

We are buying back at the pace we are able to do and that there is trade in our shares. These are the factors that affect the share or the number of shares we are able to buy back.

If you put it outside your own record, you get 25% more days to do it. Can that be attractive or is the cost too expensive to do something like

that? Today, it is not solid itself that is the reason for buying back. We use a bank to do that and we are happy with how it works. Then it is about following the share and pace we are able to buy back. During the quiet periods, there will be no return and it will continue like

that. I understand. There are other institutions that can trade during the quiet period. There

are different ways to buy back. We have chosen this option.

I understand. No more questions from my side.

Thank you, Patrick.

As a reminder, if you want to ask a question, press the square 5 on your phone. There are no more questions right now, so I leave the floor to the speakers for any final comments.

Thank you for your interest and we will return after the second quarter.