Protector terminates stock option scheme

As notified Monday 28 December 2010, the Board of
Protector Forsikring ASA has decided to end the
company's stock option scheme. The reason is the new
legislation regarding remuneration schemes in
financial institutions. This means that 39 employees
will receive a payment due to the lapse of future
rights linked to the allocated options. The stock
options were allocated during the period of 2006 -
2008 as part of the company's incentive scheme.

The cash payment will be accounted for in Q4 2010 and
represents a pre-tax charge of NOK 10.1 million. The
valuation of the option payments is based on the
difference between the option strike price, NOK 7.75
and the average trading price of Protector's share on
30 December 2010, NOK 11.91.

Following the transaction there are no outstanding
options in Protector.

A list of the primary insiders affected by the
termination of the stock option scheme is attached
herewith.

Despite a cost allocation sized NOK 10.1 million
related to the termination of the stock option
scheme, Protector expects a full year operating
result stronger than the previously guided NOK 180
million.

Oslo, 3 January 2011
Protector Forsikring ASA


This information is subject of the disclosure
requirements acc. to §5-12 vphl (Norwegian Securities
Trading Act)