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• Combined Ratio: Slightly worse than previous figures but still strong.

• Investment Return: NOK 7.1 per share for the quarter.

• Large Loss Share in Denmark: 40%, primarily from property losses.

• Runoff Gains: Positive gains mainly in Norway and Sweden.

• UK Growth: Low growth at 5% due to loss of a large client.

• Renewal Rates: Above 100% in all countries except the UK.

• Cost Reduction: Costs reducing with growth, efficiency improvements in Nordics.

• Bond Portfolio Yield: Running yield reduced from 5.4% to 5.2%.

• Capital Position: Solid capital position with reduced risk in bond portfolio.

• Warning! GuruFocus has detected 3 Warning Sign with STU:PR4.

Release Date: October 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Protector Forsikring ASA (STU:PR4) reported a strong combined ratio, indicating solid profitability despite slight adjustments needed for normalization.

• The company achieved a significant milestone by receiving written confirmation from clients in France, increasing the probability of accessing the French market.

• There were positive runoff gains in Norway and Sweden, contributing to strong quarterly results.

• The company maintained a strong renewal rate across most markets, indicating customer retention and satisfaction.

• Protector Forsikring ASA (STU:PR4) is recognized as a quality leader by brokers in its main markets, providing a competitive advantage.

Negative Points

• Denmark experienced a high share of large losses, particularly in the property sector, affecting overall results.

• The UK market saw low growth due to the loss of a large client, impacting quarterly performance.

• The company faces challenges in recruiting enough personnel to match growth, particularly in the UK.

• Protector Forsikring ASA (STU:PR4) is holding more capital due to increased probability of French market entry, which may impact short-term financial flexibility.

• There is ongoing volatility in growth figures, particularly in smaller markets like Denmark, which can affect overall performance.

Q & A Highlights

Q: Can you provide insights on the hit ratio in France compared to the early stages in the UK? A: In the UK, we initially had a low hit ratio. The market dynamics in France are different, with less fierce competition, allowing us access to more volume. We expect a slightly higher hit ratio in France compared to the UK in the first year, particularly in the public sector. - Henrik Golfetto Hoye, CEO

Q: What drives your strong renewal rate, and do you expect this trend to continue? A: The strong renewal rate is based on historical data and market discipline, particularly in the public sector where renewal terms are sent out earlier. We expect this trend to continue as the market remains disciplined. - Henrik Golfetto Hoye, CEO