Solid Försäkringsaktiebolag (publ)

Stort tack för det och då ber jag att förhälsa alla. Varmt välkomna till vår presentation av det första kvartalet 2025. Marcus Tillberg heter jag, jag är vd för Solidförsäkring och med mig idag har jag Sofia Andersson, vår CFO, och tillsammans kommer vi gå igenom utvecklingen under det första kvartalet. And if we start with some highlights from the first quarter, we can note that we see a stable development in our insurance policy. If we start with sales development, it decreases in the period by 13%, but adjusted, we see a underlying sales increase of 5% compared to the same period the previous year. And I will return to the details about sales development when we get into the development in our segment. Then we move on to the development of our premium revenues, which decrease in this period by 1%, where the revenues in our segment security and assistance increase by 3% respectively 5%, while we see a decrease in the product segment by 15%. Det försäkringstekniska resultatet uppgick till 27,5 miljoner i perioden jämfört med 29,9 miljoner samma period föregående år justerat för den del av resultatet som allokeras från finansrörelsen. Resultatet i finansrörelsen uppgick till 13,1 miljoner i perioden där vi jämför oss mot ett starkt kvartal under fjolåret. Sammantaget innebär då detta att vårt totala resultat i perioden uppgick till 40,5 miljoner i jämförelse med 57,9 under samma period föregående år där differensen i kvartalet i stort kan härledas till utvecklingen i vår finansrörelse where the turbulence on the financial markets at the end of the quarter affected us negatively. Further, during the quarter, we have carried out an acquisition in the form of a guarantee partner, which strengthens our position further in the view of the insurance concept against car guarantees on the Swedish market. From and with April 15, we have taken over the business, which we estimate will amount to about 20 million SEK in a 12-month period. Vi har även under perioden utökat vårt samarbete med Niemi Bil där vi kommer att genomföra en geografisk expansion till den finska marknaden. Även detta inom området för bilgarantier. Det samarbetet planerar vi att lansera under det andra kvartalet. Vårt samarbete med Riddermark Bil är också förlängt under perioden. Det nya avtalet innebär vissa skillnader som påverkar premieinkomster och anskaffningskostnader. Jag återkommer strax till detta. Vi har även lanserat från den 1 januari år vår egen olycksfallsförsäkring. Vi har tidigare förmedlat en liknande produkt med Chubb som försäkringsgivare men nu är det istället Solid som står risken för denna produkt. If we look a little more at our sales and how it has developed, we can start by stating that the premium income is decreasing by 13% compared to the same period the year before. If we then adjust for our new agreement with Riddermark and Power, we see a underlying growth of 5%. If we look at how sales are divided between our segments, we are growing in the security segment, which makes it the largest segment for us in the quarter. It accounts for 49% of our premium income. Assistance accounts for 36% of the premiums in the quarter, and the decrease we have seen in product makes that segment in the quarter accounts for 15% of our total sales. And that largely depends on our final collaboration with Power. If we look geographically at how sales are distributed, the Nordic market stands for 89% of sales volume in the period and where the Swedish market now stands for a larger proportion compared to the corresponding period in the previous year. And if we look at our segments, I was going to start with the assistance segment, where the effect of our new agreement with Riddermark Bil is visible 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 growth is driven by our insurance concept against car guarantees primarily from the Swedish market but also to some extent from the Norwegian market. And if I comment a little on the new agreement with Riddermark, it means that Solide contains our risk premium, that is to say that no acquisition costs burden the business. And if we look at the basis of the whole year, how we think this will affect us, it is about 80 million that the premium income will be affected, but then the corresponding amount will reduce the acquisition costs. So we have a neutral net effect and we do not see any material impact on the result of this new deal. If we move on to premium revenues, they increase by 5% in the period, which is due to the sales development we have seen in our insurance concepts aimed at car guarantees. Gross profit decreases by 6% in the period. This is explained by relatively higher purchase costs in the period. We then see a reduced margin and that is due to high procurement costs driven by a changed partner product mix. Our acquisition during the period ends under this segment where we from and with the 15th of April took over the business and that means that we strengthen our position further on the Swedish market when it comes to car guarantees. Vi ser även fram emot att under det andra kvartalet expandera till den finska marknaden med våra försäkringskoncept avseende bilgarantier tack vare vårt utökade samarbete med Njemi Bil. Vi förflyttar oss till segment produkt som minskar försäljningen i perioden med 44% och det beror There is a large number of lower sales of insurances linked to the home electronics industry in the Swedish, Norwegian and Danish markets and where our final collaboration with Power has a negative impact. Exclusive Power reduces sales by 7% in the period where the market climate has a negative impact. Premium revenues in the quarter decrease by 15% and this leads to lower sales of insurances linked to home electronics. Gross profit förbättras i perioden och ökar med 4% vilket i stort drivs av en förbättrad marginal beroende på lägre anskaffningskostnader och lägre skadekostnader. Vi har också under perioden lanserat vårt samarbete med Synologen som är en optikerskedja med cirka 100 optiker. And if we move on to the security segment, we can see that premium income increases by 10% in the period, which is driven by a positive sales development on the Swedish and Finnish markets, where our new partnership with, for example, Norion Bank contributes positively to growth. Premium income increases by 3% in the quarter, which is primarily explained by a better sales on the Swedish and Finnish markets. Gross profit decreases 6% in the period, which is explained by the development on the Norwegian market. And with that said, I'm going to hand it over to Sofia.

Thank you very much. If I start with a short summary of the premium revenues for the first quarter, then we see that they decreased by 1% compared to previous years and increased to 273.7 million, which was something better than the fourth quarter of 2024, when they increased to 273.1 million. The decline in the quarter compared to previous years is related to the development within segment products, where the premium income decreased by 15%, mainly linked to the home electronics industry. If we exclude Power, which is run-off, the decline rose to 7%. In segment assistance, the premium income increased by 5%, driven by the growth linked to the insurance concept towards car guarantees in Sweden and Norway. And in the security segment, the premium income increased by 3%, mainly related to insurance payments on the Swedish and Finnish markets. The premium income in Norway and Denmark decreased compared to previous years. If we look at the insurance technical results in the quarter, it decreased by 13% compared to previous years and increased to 33.8 million. Due to lower average insurance-technical deductions and a lower average interest rate in the obligation portfolio, the share of capital deductions allocated to the insurance movement decreased compared to previous years. If we exclude this part, the insurance-technical deductions decreased by 2.4 million. The decrease in the quarter mainly depended on lower gross income from the assistance and security segment. Our total cost percentage rose to 90% against 89.3% last year. This is mainly due to a higher cost ratio that rose to 64.6% against 63.9% last year. The increase in cost ratio is mainly due to lower premium revenues, which led to relatively higher administration costs as well as relatively higher procurement costs in the security and assistance segment. 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 11.3% compared to 11% last year. The damage percentage was on the same level as last year and rose to 25.3%. It improved compared to the fourth quarter of 2024 when it rose to 25.9%. The actual damage costs were 2% lower than last year and were also lower than in the fourth quarter of 2024. This is mainly due to lower damage costs within segment product. The damage percentage increased in the assistance and safety segment. In the assistance segment, the increase was mainly due to insurance solutions for car guarantees. In the safety segment, the increase was mainly due to higher damage costs for tax protection insurance in Sweden. If we look at our placement portfolio, it is a little lower in total than at the beginning of 2024. It went up to 1,375,000,000. The share share increased to 7% at the start of the quarter, or 95 million, where about 50% of the mandate from the board is used. The share share can increase if the placement committee finds it appropriate, but for the time being we have a more careful view. The net investment for the first quarter increased to 70 million, where the majority has been placed in the obligation portfolio. Some reallocation has also been done in the share portfolio. The majority of the assets in the interest rate portfolio run in the interest rate and with relatively short durations. Returns of your own shares have been made for 10 million under the quarter and the return went on until March 7. The board has submitted a proposal to the Board of Directors for the introduction of 382,742 shares. The first quarter of 2025 ended with uncertainty and turbulence in the environment, which affected the capital markets and thus also the market values in our placement portfolio. The unrealized value changes amounted to minus 3.7 million, where 3 million is linked to the shareholding and 700,000 to the rental portfolio. The unrealized value changes last year were positive and amounted to 9.5 million, For the first quarter of 2025, the result of the capital management was 13.1 million, compared to 28 million last year. The total interest rates increased by almost 14 million, compared to 16.8 million last year. 11.4 million is related to the obligation portfolio and 2.5 million to the loan. We have received deductions of 300 000 SEK per quarter, compared to 1.6 million last year. De realiserade vinsterna från avyttrade innehav under kvartalet uppgick till 5,2 miljoner. Orealiserade valutakursförluster uppgick till minus 1,7 miljon i kvartalet. Det här är till följd av att den svenska kronan stärktes mot samtliga valutor som bolaget är exponerat mot. Förra året gav de orealiserade valutakursförändringarna en positiv resultateffekt på 900 000. From the beginning of the year, the first quarter's total interest rate went up to 1.1% compared to 2% last year. Over the past 12 months, it is now up to 5.8%. The average interest rate in our obligation portfolio went up to 4.64% at the beginning of March this year, compared to 5.76% at the beginning of March 2024. Our result before the tax reduced by 17.4 million SEK and this is primarily explained by the lower result from the capital administration. The insurance technical result, excluded allocated capital issuance, decreased by 2.4 million SEK and the result per share decreased to 1.75 SEK compared to 2.43 SEK last year. Vi uppvisar fortsatt en stabil och stark finansiell ställning och SCR-kvoten uppgick till 188 % vid utgången av mars. Det är en ökning med 8 procentenheter mot utgången av december och med 12 procentenheter jämfört med utgången av mars 2024. The allocation for the fiscal year 2023 amounted to SEK 82.8 million, and the proposal for the annual budget later today is an allocation for the fiscal year 2024 of SEK 5 per share. A total of SEK 90 million will be paid out at the beginning of May. Solvency capital increased in the quarter towards the beginning of December and amounted to SEK 916 million. The increase was explained by the positive results in the quarter, reduced when the costs for the repurchase of own shares are reduced. The Solvency Capital requirement was raised to 488 million SEK. This is a reduction of 10 million SEK towards the beginning of December. This is driven by a small reduction in the Solvency Capital requirement related to the market, supply and insurance risk. The communicated financial goal is that the SDR quota should go up to at least 150%.

With that, I'll hand it over to Marcus again. Thank you. To sum up the quarter, we can state that the first quarter delivered a stable development in the insurance sector. The premium income decreased by 13%, but the underlying, where the business delivers an increase of 5% of our segment security and assistance, is strong. Vi har genomfört ett förvärv i perioden i form av Garantipartner där vi från och med den 15 april tagit över verksamheten. Vi genomför nu en geografisk expansion till den finska marknaden avseende våra försäkringskoncept mot bilgarantier. Vi har också lanserat vår egen olycksfallsförsäkring som kommer att säljas direkt till konsument. As Sofia mentioned, we have a very strong capital situation where the S&R rate rises to 188% at the beginning of the quarter. Our return on old shares has continued during the period and the company vote, which will take place later today, asks the government for a new mandate regarding returns for the coming period. Beslut kommer även fattas av sin utdelning som uppgår till 5 kronor per aktie, vilken är en ökning med 50 öre jämfört med utdelningen förra året, eller 11 procents ökning. Med det sagt så tackar vi för intresset och öppnar gärna upp för frågor.

Under frågestunden 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 från ABG, varsågod.

Hej, god eftermiddag, har ni med?

Absolut, hej.

Super. Yes, I thought we could start with the financial goals and how you think about them based on what we have seen here in Q1. We see that Net Earned Premium, which you flagged as falling by 1%, while you have a goal to reach between 4-7% and then we have some changes with different partners. Hur tänker ni här kortsiktigt för helheten för 2025 om det här målet?

Målet är ju satt över tid och det kommer bli utmanande att nå det 2025. Men om vi tittar på det underliggande, alltså när vi tar bort de här förändringarna i avtalet med Riddemark och Power, så ser vi att vi har en tillväxt i våra premiintäkter även i år.

Yes, but if you compare reported to underlying, what do you think that the effect will be, roughly speaking?

If we adjust for these, as Sofia mentioned, there is a chance that we can reach premium revenues throughout the year.

Yes, thank you. And we continue with the financial goals. Combined ratio is outside the goal level at the moment. Can you talk a little bit about how you think about the goal for the coming quarter of 2025? Because I think that when power successively rolls off, it should be positive for combined ratio. But how do you think?

Om vi ska titta på helåret så här. Det kan vara att vi ligger ungefär där vi gör när vi går in i andra kvartalet. Vi tror att det kommer förbättras under 3 och 4. Så att sett i helåret så tror vi att vi kommer klara det finansiella målet.

Kanon, tack. It has been quite shaky here on the stock market and the obligation market and there have been large currency movements here. How has that affected your investment portfolio in the second quarter? Is there anything you should bring with you here before the second quarter that you can think of?

We have been talking about the interest rate portfolio and what we have in the run rate on that interest rate. It has gone down a little 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 close to 11, 10.5-11 now. Then the impact on the stock market is difficult to predict what happens with the market values there.

Ja, men kan ni då tala om lite, har ni en stor eller relativt liten exponering mot USA som då både påverkas av värderingssvängningar och valuta eller är det mest nordisk exponering eller europeisk, hur ser det ut?

Vi har en relativt liten exponering mot USA.

Jag förstår och till sist about resale and distribution. I know that this is a decision by the board, but they usually ask and discuss with management. How do you see the possibility of maybe increasing the distribution ratio in the future relative to what you currently have as a form of getting down to the solvency ratio mot den här 150 nivån med tanke på att man kanske inte når upp till 5% återköp på ett årsbasis. Hur tänker ni kring det resonemanget?

För det första så har vi en stark solvensposition i bolaget och det möjliggör ju för styrelsen att simply do good things for our shareholders, buy back a part and there we hope for a positive decision today and that then the board then chooses to activate this. Hopefully we can buy back shares in a larger scope than we did during the latest return program. Man får följa detta och se lite hur det utvecklar sig. Man får också titta på vilka möjligheter som uppstår i marknaden. Det sammantaget gör att styrelsen får helt enkelt lämna ett förslag gällande utdelningen näst kommande år. Så det här är ju många faktorer som påverkar och det kommer ju styrelsen naturligtvis att följa under året här.

Jag följer upp då på ditt svar. Vilka faktorer tror du skulle vara som gör att man skulle utnyttja återköpsmandaten mer det här året i förhållande till det här året som vi nu lämnar?

Well, it's probably that we are in a position to buy back in the pace we have the opportunity to do so, and that there is trade in our shares. These are the things that affect the share or the number of shares we have the opportunity to buy back.

Yes, but if you put it outside of your own control, then you have to 25% more days to do it on. What lies, can it be attractive or is the cost too expensive to do something like that?

Today, it is not Solide itself that makes the purchase, but we use a bank to do that. And we are satisfied with how it works. And then it really just has to follow the quantity and pace that we have the opportunity to buy back. Sen är det ju så att, och där kommer det inte bli någon ändring, men under de tysta perioderna så sker det inga återköp. Och så kommer det vara fortsatt också.

Okej, okej. Ja, men då förstår jag. För det finns ju andra institutioner som, som jag har förstått i alla fall, om man lägger utanför, och det är mer externt, att man kan handla på ett under a quiet period, but that might be a slightly different approach.

Yes, you are right. There are different variants of how to handle repurchase. We have chosen this variant that we think is beneficial for us.

Yes, okay, then I understand. Then there are no more questions from my side. Thank you.

Thank you Patrik.

Som en påminnelse, om du vill ställa en fråga, tryck fyrkant 5 på din telefon. Det finns inga fler frågor just nu, så jag lämnar över ordet till talarna för eventuella avslutande kommentarer.

Då ber vi att få tacka för visat intresse och vi återkommer efter det andra kvartalet. Tack ska ni ha!