Protector Forsikring ASA ((NO:PROT)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Protector Forsikring ASA’s recent earnings call painted a generally positive picture of the company’s performance, marked by significant growth in key markets such as the UK and successful market entry into France. However, the company faces ongoing challenges with cost inefficiencies and specific regional performance issues, particularly in Denmark and Sweden.
Strong Growth in Public Sector
Protector Forsikring ASA has seen robust growth in its public sector offerings, with these areas representing close to 50% of premiums in 2024, compared to 29% in 2019. This growth is particularly notable in the UK and France, underscoring the company’s successful expansion into these markets.
Successful French Market Entry
The company has made significant inroads into the French market, achieving EUR 25 million in new sales as of January 2025. The strong relationship with local brokers has been a key factor in this success, positioning France as a strategic growth area for Protector Forsikring.
Improved Loss Ratios
Protector Forsikring has reported improvements in its loss ratios, with normalized large loss levels being slightly lower than the expected 7%. This suggests better management of claims and operational efficiency.
Strong UK Business Performance
The UK business has been a strong driver of growth in the fourth quarter, with high retention rates and price increases contributing to this positive performance. This highlights the UK as a vital market for the company.
Positive Reinsurance Renewal
The company successfully renewed its reinsurance programs, achieving a reduction in the need for high-level reinsurance and lowering relative reinsurance costs for 2025. This renewal is expected to enhance financial stability and reduce costs.
Cost Ratio Weakness
Despite overall positive performance, cost inefficiencies were highlighted, particularly with a rise in the cost ratio from 6.0% in Q4 2023 to 7.5% in Q4 2024. Addressing these inefficiencies will be crucial for future profitability.
Challenges in Denmark
Denmark remains a challenging market for Protector Forsikring, with a large loss share of over 30% and none of these losses impacting the reinsurance program. This indicates underlying profitability issues that need correction.
Slow Growth in Sweden
Growth in Sweden has been sluggish due to a portfolio cleanup, but recovery is expected once this process is complete. The company remains optimistic about returning to growth in this market.
Forward-Looking Guidance
Looking ahead, Protector Forsikring anticipates continued strong growth in public sector and housing premiums, with strategic focus on the French market despite potential volatility. The company aims to enhance operational efficiency and data quality, and maintain profitability while exploring new market opportunities. Cautious cost management, particularly in France, is emphasized as a priority.
In summary, Protector Forsikring ASA’s earnings call reflects a positive outlook with significant growth and strategic advancements in key markets like the UK and France. Despite challenges in Denmark and cost inefficiencies, the company is committed to addressing these issues while focusing on future growth and operational efficiency.
