Untitled

ANNUAL REPORT

HIGHLIGHTS 2021

THIS IS PROTECTOR

KEY FIGURES

SHAREHOLDER INFORMATION

CEO

NORWAY

SWEDEN

DENMARK

THE UK

FINLAND

INVESTMENTS

BOARD OF DIRECTORS

DIRECTORS’ REPORT

ACCOUNTS AND NOTES

DECLARATION BY THE MEMBERS OF THE BOARD AND THE CEO

AUDITOR’S REPORT

CORPORATE GOVERNANCE

SOCIAL RESPONSIBILITY

CONTENTS

2021 PROTECTOR FORSIKRING ANNUAL REPORT4

HIGHLIGHTS

2021

In 2021, total premiums amounted to NOK 5,951 million

against NOK 5,516 million in 2020, representing 8%

growth (10% in local currencies). The growth in the

Nordics was 6%, while growth in the UK was 22%.

The technical result was NOK 594.4million against

NOK 246.6 million in 2020, corresponding to a net

combined ratio of 87.3% against 94.8% in 2020 The

technical result is driven by strong results in the Nordic

countries. The UK came in weaker due to an above

normal number of large claims.

The claims ratio for own account was 77.4%, down from

84.6 % in 2020. Price increases and other profitability

measurers drives the claims ratio downwards. The large

loss ratio was somewhat lower than normal and the

Covid-19 pandemic had a positive estimated impact

at approximately 0.8 percentage points. In 2021 the

company had run-o losses of 0.3% against 2.2% in run-

o-losses in 2020.

The return on the investment portfolio was 6.8 %,

against a return of 8.0 % in 2020. At the end of 2021,

15.1% of Protector’s financial assets were invested in

equities, against 13.5% year-end 2020.

Profit for the year was NOK 1,204.0 million, compared

to NOK 981.6 million in 2020.

The Board of Directors proposes a dividend of NOK

7.00 per share for the fiscal year 2021, corresponding

to NOK 576.6 million.

2021 PROTECTOR FORSIKRING ANNUAL REPORT 5

Protector will be the challenger. This

position will be achieved through

unique relationships, best in class

decision making, and cost-eective

solutions.

2021 PROTECTOR FORSIKRING ANNUAL REPORT6

THIS IS PROTECTOR

Protector commenced business January 2004, and has

since experienced rapid growth. The company is highly

focused on risk selection and market adaptation. In May

2007, Protec tor was listed on the Oslo Stock Exchange.

P rotector entered the Swedish insurance market in 2011,

the Danish in 2012 and the Finnish and British in 2016.

VISION AND BUSINESS CONCEPT

Protector is the challenger. This position will be achieved

through unique relationships, best in class decision-making

and cost-eective solutions.

BUSINESS GOALS AND STRATEGIES

Protector targets further profitable growth. This will be

achieved by oering the lowest costs and best quality

services. The growth will mainly come from new markets.

The company’s main goals are:

• Cost and quality leadership

• Profitable growth

• Top 3 in selected segments

The company’s long-term financial objectives are:

• Combined ratio for own account: 90-92 %

• Return on equity: 20 %

• Growth rate of gross written premium: Disciplined

• Solvency margin: > 150 %

DISTRIBUTION STRATEGY

Protector has a distinct distribution strategy. All business is

conducted through our selected brokers. The commercial

and public sector business is sold through insurance brokers.

The same strategy applies to our anity programs.

MARKET STRATEGY

Protector operates in non-marine insurance. The company

has two business segments: the commercial lines of business

and the public lines of business.

Commercial Lines of Business

Protector oers insurance for both small and large

companies and anity programs through brokers. We tailor

insurance solutions for large companies, and can develop

own concepts through anity programs as well as facilitate

solutions for multiple countries.

Public Lines of Business

Protector has established itself as the largest insurer

in the public sector in the Nordics with more than 600

municipalities and over 30 county councils on its client list

at the end of 2020.

Sweden, Denmark, UK and Finland

Protector has established an operational presence in

Stockholm, Copenhagen, Manchester, London and Helsinki.

The company expects that significant parts of future growth

will stem from outside of Norway. The company’s entrance

in the these markets follows the same business model as in

Norway and is well accepted by the insurance brokers.

STRATEGY FOR CLAIMS HANDLING

Our claims handling team counts 181 employees in total.

We have chosen to have claims handling in-house and have

gained substantial competence within this area. By using

skills and competences across claims handling, underwriting

and sales the company achieves high cost eciency while

maintaining high quality.

The company’s “scalable business model” will be used as a foundation for growth. Well-developed

competence and in-house developed systems contribute to the company’s growth without further

significant accrual of costs.

2021 PROTECTOR FORSIKRING ANNUAL REPORT 7

ITSTRATEGY

Going against the insurance industry standard of

outsourcing both IT infrastructure and development,

Protector’s core insurance systems are developed,

maintained and operated in-house. In-house IT enables

us to recruit highly skilled resources and create a unique

combination of advanced technology and deep business

understanding. A well-functioning cooperation in the

matrix, puts ownership of IT initiatives in the business units,

and reduces time to market for innovations. Due to our lean

organization, we are able to adapt to changes in our business

in days, rather than months.

The in-house development and operations have also

contributed to our cost- and quality leadership. Protectors

main business is within the broker based industry and our

investments within digitalization are primarily targeted

to strengthening this value chain by producing ﬂexible

solutions that contribute to innovation and business

development.

IT is a strong contributor, making it possible for Protector

to be the challenger in the market by combining important

insurance competency, cost eciency innovation with quick

and targeted technology development.

PERFORMANCE BASED CULTURE

Protector’s organization is based upon highly qualified

employees counting over 411 people at the end of 2021.

In addition to the development of claims handling, large

resources have been invested to increase the capacity in

the areas of underwriting, analysis, sales and service. On

all levels of the organization, a structure has been created

for regular employee appraisals. Protector has defined

four core values, which are part of the criteria on which

employees are assessed in this process: Credible, Open,

Bold and Committed.

EMPLOYEE AND LEADERSHIP DEVELOPMENT

Protector utilizes a 270˚ and a 360˚process where all

employees have an opportunity to give feedback on the

compliance with the company’s values. The process has

received great reviews and contributed to the further

development of the company’s performance-oriented

culture. It also triggered further fine-tuning of the values in

order to tailor them to our everyday life.

Protector will recruit, develop and retain the right people.

We believe in developing key skills through continuous

and deliberate learning. We have established Knowledge

Hub, with the purpose of supporting onboarding of new

employees and continuous training of all employees so that

we can make best in class decisions. Through Knowledge

Hub we will map, assess and give feedback on employees’

competence, and together with the quarterly personal

developmentdiscussions, employees and managerscan

follow up that learning takes place and that goals are set for

future development.

“One Team Leadership”, our 9th 18-months leadership

development program which started in April 2021 and will

be completed in September 2022. The program builds on

experiences from previously held programs with continuity

since 2013. Our goal with the leadership development

programs is to further develop a unified leadership where

the leaders develops a common understanding of the

company’s basic value-based management and performance

culture.

We strongly believe that Protector’s vigour and ability to

realize its objectives will be strengthened through raising

awareness amongst our employees of the company’s core

values, beliefs, ambitions and business.

2021 PROTECTOR FORSIKRING ANNUAL REPORT8

KEY FIGURES

[1.000.000 NOK] 2021 2020

Gross premiums written

5 951 5 516

Gross premiums earned 5 746 5 380

Gross claims incurred (4 468) (4 425)

Earned premiums, net of reinsurance 4 921 4 614

Other insurance related income 9 20

Claims incurred, net of reinsurance (3 810) (3 901)

Sales cost (362) (331)

Administration cost (257) (221)

Commission from reinsurer 131 82

Other insurance related expenses (29) (14)

Technical result 594 247

Other income/costs (56) (67)

Net financial income 878 865

Profit before tax 1 416 1 045

Tax (252) (160)

Discontinued operations 67 94

Net comprehensive income (28) 2

Profit for the period 1 204 982

Claims ratio, net of reinsurance

(1) 77,4 % 84,6 %

Expense ratio, net of reinsurance

(2) 9,9 % 10,2 %

Combined ratio, net of reinsurance

(3) 87,3 % 94,8 %

Gross claims ratio (4) 77,8 % 82,2 %

Gross expense ratio

(5) 10,8 % 10,3 %

Gross combined ratio

(6) 88,5 % 92,5 %

Retention rate

(7) 85,6 % 85,8 %

Earnings per share

(8) 15,0 12,0

(1) Claims incurred, net of reinsurance in % of earned premiums, net of reinsurance

(2) Operating expenses in % of earned premiums, net of reinsurance

(3) Net claims ratio + net expense ratio

(4) Gross claims incurred in % of gross premiums earned

(5) Sales and administration costs in % of gross premiums earned

(6) Gross claims ratio + gross expense ratio

(7) Earned premiums, net of reinsurance in % of gross earned premiums

(8) Profit before other comprehensive income divided by weighted number of shares

Defined as alternative performance measure (APM). APMs are described on

www.protectorforsikring.no in document named APMs Protector Forsikring 2021

DITLEV DE VIBE VANAY

CFO

Employee since 2019. Vanay was also positioned as CFO in the period 2005-2015.

He holds a MSc in Economics and Business Administration from BI Norwegian

Business School. He has more than 20 years experience within insurance, finance,

business controlling and IT, from Protector, Storebrand, If and Tinde.

Our promise to insurance brokers

and clients is that we will be easy

to business with, commercially

attractive and trustworthy.

2021 PROTECTOR FORSIKRING ANNUAL REPORT10

SHAREHOLDER

INFORMATION

THE PROTECTOR SHARE

In 2021 Protector’s share price increased by 81.9 %. The

Oslo Benchmark (OSEBX) increased by 23.4 % during the

same period. In 2020, Protector’s share price increased by

13.6 %, while The Oslo Benchmark index increased by 4.6 %

during the same period.

DEVELOPMENT IN PROTECTOR’S SHARE PRICE

The average trading volume of Protector’s shares on the

Oslo Stock Exchange was 69,191 shares in 2021, relative

to 110,940 in 2020. At the end of 2021, the Protector

share was traded at NOK 108.4. The market value of total

outstanding shares was NOK 8.929 million.

DIVIDEND

The Board of Directors proposes a dividend of NOK 7.00

per share for the fiscal year 2021, corresponding to NOK

576.6 million. The Board considers the size of the dividend

to be in line with the company’s financial position and the

position in the market.

Unless the need for capital dictates otherwise, it’s the

Board’s intention to distribute 20 - 80% of the profit for the

year after tax as an ordinary dividend. Final determination

will be based on the company’s result, capital requirements

including satisfactory buers and the necessary ﬂexibility

for growth and development in the company. Ordinary

dividends will, as a general rule, only be paid at a solvency

margin above 150%. With a solvency margin above 180%, the

board’s intention is to over time return surplus capital to the

shareholders in the form of special dividends or repurchases

of shares.

The Board prepares quarterly dividend assessments on the

basis of the most recently approved annual accounts.

SHAREHOLDERS AND VOTING RIGHTS

The company has issued a total of 82.500.000 shares and

there is only one class of shares with equal rights for all

shareholders. A list of Protector’s biggest shareholders is

provided in note 13 in this report.

ANNUAL GENERAL MEETING

The Annual General Meeting of Protector Forsikring ASA

will be held at the company’s premises at Støperigata 2,

Oslo, on Thursday April 7th, 2022 at 4.00 pm. The notice

will be sent to all shareholders and to the Oslo Stock

Exchange. The notice to the Annual General Meeting

will also be published on the company’s website

www.protectorforsikring.no.

120

110

100

Dec 2011 Dec 2021

2021 PROTECTOR FORSIKRING ANNUAL REPORT 11

FINANCIAL

CALENDAR

03.02.22 - Quarterly Report Q4 2021

15.03.22 - Annual Report 2021

28.04.22 - Quarterly Report Q1

07.04.22 - Annual general meeting

08.07.22 - Quarterly Report Q2

27.10.22 - Quarterly Report Q3

2021 PROTECTOR FORSIKRING ANNUAL REPORT12

WE DELIVER PROFITABLE GROWTH

After a long period of rate reductions in the Nordic market,

significant price increases were implemented from 2018.

Together with a thorough clean-up in the portfolio we have

seen the eect of this in 2021.

In 2021 we delivered a net combined ratio at 87.3%, and a

volume growth at 8% (10% in local currencies). Whereas the

growth was in line with expectations, the profitability came

in stronger.

Through continued price increases above expected claims

inﬂation and disciplined underwriting, we have a strong

belief that underlying profitability in our portfolio is good.

Potential extraordinary inﬂation remains our biggest

concern, but is a strong focus.

UK  CHALLENGING MARKET, BUT POSITIVE OUTLOOK

2021 net combined ratio was 103.3%. The poor profitability

is mainly driven by a large loss rate above normalized levels,

especially on the motor product. Adjusted for this the

portfolio is running well.

Disciplined underwriting is embedded in the UK

organisation, through high level of competence, well

established structures for facts and a One Team approach

to all decisions. Risk management is an integral part of both

new sales and renewals. The claims handling team has no

backlog and is focused on quality through the full client

journey, starting at underwriting stage and accelerating

through the contract period.

With a growth in 2021 of 24 % in local currencies, there has

been low client churn and new sales below expectation. The

latter is especially true for the Public and Housing segments

and the motor product – mainly due to low rates in the

market. UK has benefited from learning what went wrong in

the Nordics and implemented price increases earlier.

Our chosen brokers have voted Protector in the UK far

ahead of competitors for the fifth year running. We are

proud of the feedback, but have also learned more about

how we can improve further in our common value chain with

the brokers.

THE NORDICS  STRONG PERFORMANCE IN A

DISCIPLINED MARKET

With a net combined ratio at 82.4 % in 2021, and all Nordic

countries performing below 90 %, the profitability is back on

track. The large loss rates were below normalized levels, but

profitability remains strong when adjusting for this. Sweden

is the biggest country, contributing strongly to growth and

delivering the best combined ratio.

Except for a deliberate phase-out of workers’ compensation

within the health and welfare sector in Norway and workers’

compensation as a single product in Denmark, client churn

has been low in 2021.

The four Nordic countries have learned from a tough period

of cleaning up and increasing prices. Most of these learnings

have been dierent in the respective markets. A One Team

approach to improvements and best practice has increased

competence and is starting to deliver results.

Following poor results in the broker satisfaction survey from

2021, we have learned that the clean-up process could have

been handled in a much better way. From conversations

with the brokers, clear actions with agreed prioritization

have been articulated. The actions are dierent for the

various countries and segments, but we have one ambition –

to be back on top.

INVESTMENTS  CORE BUSINESS, LONG HORIZON

2021 was, as for 2020, a very profitable year for us in regard

to investments. Our total investment portfolio returned

NOK 955 million (6.8%); the equity portfolio yielding 38.9%

and the fixed income portfolio yielding 2.3%. We invest

for the long run; short term gains and losses will to a great

extent be unrealized.

In Protector, investment is core; we take calculated risk

both on insurance and on investments. Our assets under

management have grown to NOK 14.3 billion (up from NOK

13.5 billion). At year end 15.1% was allocated towards equities

and 84.9% towards fixed income securities.

2021

- ONE TEAM,

AND BEST EVER RESULT

2021 PROTECTOR FORSIKRING ANNUAL REPORT 13

CAPITAL CONSUMPTION AND CAPITAL ALLOCATION

Throughout the years Protector has migrated towards

more short-tail frequency-based business. These products

consume less solvency capital than long-tail business (e.g.

WC). We expect the product mix to continue in the same

direction as long as interest rates remain low. Growth in

solvency capital requirements due on insurance risk will be

limited compared to historically.

The 2021 solvency capital requirement ratio (SCR-ratio) is

strong at 206%. Our solvency-based reinsurance solution

has been renewed, and the credit rating agency AM Best

has an investment grade rating of bbb+ (Good) and Stable

outlook on Protector.

Based on current realities, the Board of Directors will

propose for the Annual General Meeting to pay a dividend

of NOK 7 per share. We would still have financial solidity and

ﬂexibility to act on potential opportunities that may arrive.

HALF A YEAR AS THE NEW TEAM CAPTAIN

Protector is a company built on Culture. Developing our

understanding and living our Vision, Business Idea, Targets

and Values are all the most important part of our people’s

everyday life. To continue this journey with all the people in

Protector is the biggest reason why I look forward to every

day – also in my in role.

I will strengthen the cultural focus as the new team captain.

We have started this in 2021 by introducing One Team to

our understanding of our culture. One Team means that

we share best practice, competence and capacity across

teams and borders. It will help us maintain cost and quality

leadership as we grow.

Our top priority is continuing improving our home markets.

A major driver in preparing for further profitable growth is

improved data quality. This has been and will be a key focus

to improve quality and eciency. As an example, we have

launched a completely new system for our property product

during 2021.

I would like to take this opportunity to thank all our

employees for handling the challenging Covid-19 situation

with energy and discipline. A special congratulations to the

teams in HQ, including IT and investments with the “Cultural

Lead” award for 2021. We have named them “The Enablers”.

Furthermore, I would like to thank brokers for the great

cooperation during 2021. You are our only channel to

market and our allies in the fight against direct insurers.

We look forward to further developing our relationships in

2022.

HENRIK HØYE

Chief Executive Ocer

Henrik has worked full-time in Protector since 2007. He holds

a BSc in Economics & Finance from the University of Colorado.

Henrik was heavily involved in establishing our Swedish, Danish

and UK operations, and had the role as “Director UK and Public

Sector” before taking on the role as CEO in June 2021.

2021 PROTECTOR FORSIKRING ANNUAL REPORT14

NORWAY

Disciplined growth, solid portfolio

and continued price increases

PROFITABILITY

Norway delivered a net combined ratio of 89.2 % in 2021

(86.3 % in 2020). The net combined ratio is an outcome of

a net claims ratio of 82.1 % (80.2 %) and a net expense ratio

of 7.2 % (6.1 %). Our gross expense ratio was 7.6 % (8.6 %).

This yields a technical result of MNOK 124 (MNOK 181).

Profitability on Property and Motor is very good, where

Motor experience some positive eects of the Covid-19

shutdowns.

A continued hardening market allowed us to realize

further price increases of 11 % (14 %). Our price increases

is expected to be lower in 2022, but still above expected

claims inﬂation.

VOLUME, GROWTH AND PORTFOLIO MIX

In 2021 gross written premium amounted to MNOK 1,415 –

an increase of 2 %. This was driven by a very low churn of 13

% as the much-needed portfolio clean-up from last years is

done. January 1st the churn was at 11 %, whereof 4 %-points

is due to exiting of a large unprofitable facility.

Our three largest products are Property, Motor and Group

Life, which accounts for approx. 2/3 of our gross written

premium. Gross written premium on these three products

grew by 9 % in 2021.

DISTRIBUTION AND MARKET

We aim to be the preferred partner among brokers.

Therefore, we have increased our capacity towards the

market and continued to improve our renewal processes.

This is to ensure that renewal terms are communicated

both in due time, and with good argumentation, in order to

help the brokers achieve the necessary price increases in

the renewals. In our Broker Satisfaction Index we get good

scores on Broker service deliveries, but we will continuously

strive to improve.

ORGANISATION AND COMPETENCE

On average, we were 93 FTEs in 2021 including Change

of Ownership insurance. Competence in Underwriting

are in-house for all products. On claims handling, the

only products handled externally is Health insurance.

Cross-border specialty groups ensures the best available

competence where needed for P&C products. Eciency

has increased in 2021, and cost is back on a very good level.

Our competitive advantage is strengthened. Our main focus

going forward will be to balance cost, eciency and quality.

LARS KRISTIANSEN

COUNTRY MANAGER NORWAY

Employee since 2016. MSc in Economics and Administration from

Norwegian School of Economics. He has experience as an Underwriter

and Business Controller in Protector.

2021 PROTECTOR FORSIKRING ANNUAL REPORT 15

SWEDEN

Exceptional results and momentum entering 2022

PROFITABILITY

Sweden delivered a net combined ratio at 73.0 % in 2021

(92.7 % in 2020). The combined ratio is an outcome of a net

claims ratio at 62.8 % (79.8 %) and a net expense ratio of

10.2 % (12.8 %). Gross expense ratio was 12.3 % (12.7 %).

Our Swedish business generated a technical result of

MNOK 410 (MNOK 101).

Profitability varied between products. Motor insurance

was profitable due to good underwriting, both on price and

risk selection. Covid-19 had a positive eect. Property and

Liability insurance were very profitable due to large run-o

gains from both lower settlement costs and higher recourse

result. Underlying profitability is assessed to be very good

with the exception of Real Estate insurance where we have

increased prices to levels more in line with updated rate

views.

VOLUME, GROWTH AND PORTFOLIO MIX

Volume increased by MNOK 213, or 13% (16% in local

currency), to MNOK 1,820.

Churn rate was moderate (12 %) mainly driven by Real

Estate and Housing. Price increases were lower than

expected driven by the strong profitability, mainly on Motor.

We increased prices by 9 % on average, around 5 %-points

above claims inﬂation. Price increases were directed

towards Property insurance where profitability has been

less good. Tender volume increased by around 15 % relative

to 2020, indicating a market recovery after the pandemic.

Tender volume was however still below pre-pandemic levels.

Growth is driven by wins of large accounts, as new sales hit

ratio was in line with previous years.

DISTRIBUTION AND MARKET

The market has been eventful. A continued hardening

market involve a substantial capacity withdrawal from

insurance and increasing prices. International insurers are

driven by capacity. They have increased prices and exited

products and accounts. Protector has strengthened its

position by both helping brokers to find acceptable solutions

and by broadening our business to involve more brokers.

ORGANISATION AND COMPETENCE

Sweden had an average of 93 FTEs during 2021. The

Stockholm oce has remained open for all employees,

abiding restrictions and recommendations, allowing for a

working from home/working from oce hybrid solution that

has worked well in the pandemic. The Swedish organization

hold most expertise in-house, but Nordic specialty

resources support on some P&C underwriting. Within

claims handling, property claims project management was

insourced during 2020 and has helped improve cost control

and customer satisfaction in 2021. Our cost ratio decreased

in 2021, as number of FTEs decreased together with more

volume. The long-term bonus scheme added costs due to

good results and a positive share price development.

FREDRIK LANDELIUS

COUNTY MANAGER SWEDEN

Employee since 2011. His last position in Protector was Director Sales, Underwriting

& Service. Landelius’ academic history includes business studies from University of

Gothenburg on masters level and non-life insurance diploma from IFU. He has experience

from brokered insurance at If and sales at Volvia.

2021 PROTECTOR FORSIKRING ANNUAL REPORT16

DENMARK

Strong profit development, new organisation in place

PROFITABILITY

Net combined ratio ended at 89.8 % in 2021 (124.7 % in

2020). Our combined ratio is an outcome of a net claims

ratio at 82.9 % (115.1 %) and a net expense ratio at 6.9 %

(9.6 %). Gross cost ratio was 8.4 % (6.7 %). Denmark

delivered a technical result of MNOK 64 (MNOK -218).

This is the best result in years in Denmark and is driven by

significant improvement of the profitability in general and

by very few large losses.

The underlying profitability of the current portfolio is

OK, but inﬂation is expected at a high level and will most

certainly necessitate premium adjustments.

VOLUME, GROWTH AND PORTFOLIO MIX

Volume is in total decreased by 1 % (in local currency) to

MNOK 919, relative to last year. The decrease is driven by

termination of a large part of our workers’ compensation

business in the beginning of 2021. Inﬂux of new clients

and high retention during 2021 have contributed to a solid

start of 2022. Property and motor are main drivers for our

growth. The portfolio mix is now based on more than 85

% short and medium tailed business, which leads to lower

capital requirements.

DISTRIBUTION AND MARKET

Our distribution strategy through brokers and agents are

unchanged – maintaining our unique focus on the broker’s

value chain. Protector has improved broker relations during

the year. It is due to high service level in both broker- and

claims service by dedicated teams. These teams have

performed very good on KPIs during the year.

ORGANISATION AND COMPETENCE

Onboarding of a new country manager by Jan 1st followed

by downsizing and changes of the organisation was a main

focus in Q1. The current organisation is built on dedicated

resources in key areas performing well on all KPIs entailing

improved cost control and customer satisfaction. Cost

control continues to be an important focus area to maintain

competitiveness.

ANDERS BLOM MONBERG

COUNTRY MANAGER DENMARK

Employee since 2021. Educated from the Danish Insurance Academy and various

leadership programmes, lately from INSEAD. He has over 20 years of experience from

the insurance industry. Head of Brokered Clients at Gjensidige from 2011 to 2018 and

Head of Insurance Brokers at Aon Denmark from 2019 to 2021.

2021 PROTECTOR FORSIKRING ANNUAL REPORT 17

THE UK

Poor profitability driven by large claims,

no underlying issues

PROFITABILITY

Net combined ratio ended at 103.3 % in 2021 (84.9 % in

2020). Our combined ratio is the result of a net claims ratio

at 87.8 % (70.7 %) and a net expense ratio at 15.5 % (14.2 %).

The UK insurance business generated a technical result of

MNOK -45 (MNOK 136), driven by two motor runo losses

initially reported in the 2019 and 2020 calendar years.

Underlying profitability is better, with original rates in 2020

subjected to an average increase of 9.2 % when renewing in

2021.

VOLUME, GROWTH AND PORTFOLIO MIX

Overall GWP grew to MNOK 1.618, or 22 % (24 % in local

currency), in 2021, driven mainly by our renewal portfolio. A

combination of lockdown restrictions resulted in low churn

and growth in our insureds’ exposures resulted in 103 %

volume retention. New Sales were down 42 % compared to

2020, with the Property and Motor markets beginning to

soften. The portfolio in 2021 comprises 56% Commercial,

26 % Public and 17 % Housing. Property and Motor account

for 79 % of the volume.

DISTRIBUTION AND MARKET

Motor is leading a softening of the market, with reduced

frequencies due to Covid-19 driving down rates. We have

remained disciplined and selective in our underwriting, as

this will have a negligible eect going into 2022. Following

participation in Marsh and Aon panels in 2020, we also

joined AJGs commercial panel with eect from April 1st

2021, further expanding our opportunities in the UK. Our

distribution strategy remains unchanged, focusing upon a

small number of national Brokers. For the 5th year in a row

we maintained #1 position in the BSI survey, with the highest

number of responses received in the UK to date.

ORGANISATION AND COMPETENCE

The UK unit comprise 94 employees in 2021 with

Management, Underwriting, Claims Handling, Risk

Management and Finance and Administration in-house.

Our cost ratio ended at 8.9 % (gross ex commission).

This was higher than target, but will reduce with scale.

We employed 12 new colleagues in 2021, growing the UK

team by 17 %. Future recruitment will switch focus from

specialists to graduate / supporting roles. Competence is

high, with the UK now a key contributor in cross-border Risk

and Underwriting forums.

We have closely followed government guidance and market

practices, working from home where advised and switching

to a hybrid system of three days back in the oce when

able to.

The One Team culture continues to be embedded in the UK

and as we continue into 2022, we are well positioned for

further Profitable Growth.

STUART WINTER

COUNTRY MANAGER UK

Employee since 2019. Winter has more than 30 years experience from the insurance

industry. He joined Protector from the position as UK Retail CEO in JLT.

2021 PROTECTOR FORSIKRING ANNUAL REPORT18

FINLAND

Good profitability, poor growth

PROFITABILITY

In Finland our net combined ratio ended at 82.1 % in 2021

(77.5 % in 2020). This is the result of a net claims ratio of

78.1 % (74.0 %) and a net expense ratio of 4.0 % (3.5 %).

Our gross expense ratio was 5.6 % (5.2 %). Protector Finland

generated a technical result of MNOK 42 (MNOK 46).

Claims result were great because of absence of large losses

and a great result within the Public segment, together

with run-o gains from previous years. The underlying

profitability within our current portfolio is sucient.

Average price increases were 8 %, which will further

improve profitability going forward. Motor received low

increases due to reductions in premium on profitable

customers. Health insurance received the highest increase

(15%) due to poor historical results.

VOLUME, GROWTH AND PORTFOLIO MIX

Volume decreased by 17% (in local currency) to MNOK

178 within the 2021 accounting year due to change in risk

appetite and update of sales strategy during 2021. Due to

technicalities in final premium calculations on the Workers’

compensation product, underlying volume development is

more ﬂat. Decision was made to focus more on short tailed

products and decrease the Workers’ compensation portfolio

weight. This proved to be dicult as some customer

contracts bundle all products. The current portfolio mix is

2/3 Public segment, and heavily weighted towards Employee

Benefit products.

DISTRIBUTION AND MARKET

The Finnish market is very concentrated, and incumbents

control over 90 % of the market. They communicate less

externally than in other markets and no clear movements

are visible in the market. Protector has broadened the

relationship with new and smaller broker houses during

2021; the service level has been very good in both broker

service and claims service.

ORGANISATION AND COMPETENCE

Finland comprised 21 FTEs on average in 2021. Nearly

70% of the sta worked from home during the year and

was able to maintain a high level of performance. A lot of

focus during the second half of 2021 was directed towards

personnel health, work ability and well-being and internal

surveys show good improvement of employee satisfaction.

Finland has local expertise in claims handling and works

closely with the Swedish organisation on underwriting.

STEFAN SALONEN

GENERAL AGENT & HEAD OF UNDERWRITING

Employee since 2015. Salonen holds a Master´s in Mathematics with specialization in

Finance and Insurance from Åbo Akademi University. Alongside his studies, he collected

working experience from the Banking sector at Nordea.

2021 PROTECTOR FORSIKRING ANNUAL REPORT 19

INVESTMENTS

The investment portfolio returned around 1bn NOK, for

the second year in a row in 2021, with strong contributions

from both fixed income and equities. We are very satisfied

with this result, but bear in mind that it is above our long-

term earnings power on the investment side. Do not get

too excited about strong returns in a single year nor too

disappointed when the returns are poor. Instead, measure

us on our long term performance. Performance in the fixed

income portfolio always need to be evaluated trough a full

credit cycle, but 2021 was yet another good year. We have

witnessed two periods with severe stress in the Nordic bond

market since insourcing our fixed income portfolio. First the

oil price collapse in the fourth quarter of 2014 and March

2020. So far we have only had limited losses, but our focus

on credit quality has a price in normal years with low/no

volatility. In good times “all” companies get funding. Due

to this eect we expect slightly lower return than peers in

years with low volatility. However, over time companies that

should not have been financed will cause losses and real risk-

adjusted return will be visible.

Investments has been a major share of the results over

time in Protector (75%). Protector use one part of solvency

capital (shareholders’ equity and subordinated loan) and

one part of ﬂoat (Money that hasn’t been paid out to

policy holders yet) when investing. This ﬂoat amplifies the

return on shareholders capital, but because of leverage it

is critical to set aside capital to avoid forced selling, even

if severely stressed situations are infrequent. For bonds,

our internal stress test is based on the highest observed

international spread levels historically. Specifically, for

several years leading up to 2020 we reduced our exposure

to longer dated BBB-rated bonds. This is because prices of

longer dated BBB-rated bonds have historically dropped

significantly in periods of financial turmoil, and even if they

are carrying low credit risk. On the equity side the same is

true and we set aside capital to withstand a drop of 50-60%

in the stock markets and we also buy out of the money put

options on indexes to protect us from the worst scenarios.

We have showed the last couple of years that we have been

agnostic when it comes to capital allocation alternatives

with a very large investment in HY bonds during the March

2020 volatility. We seek to have a disciplined approach to

capital allocation, based on available capital in Protector and

high hurdle rates. We are willing to sit on the side-line or act

aggressively based on the opportunity set. As an insurance

company we have inherent advantages in terms of capital

consumption and liquidity advantages and we seek to exploit

them. We strive for a sound underwriting process with

excessive focus on the risks.

Every year I spend some time in the annual report on a

new topic. Some shareholders has asked us why we don’t

focus more on the highest quality growth companies, given

the fantastic long term value creation of some of those

companies Our process when investing is always to make

sure that we have base rate support for our investment

strategy. I will for this reason write a few words on our

thinking on predicting future growth.

A disciplined approach to capital allocation

2021 PROTECTOR FORSIKRING ANNUAL REPORT20

According to Chan, Karceski and Lakonishok’s paper The

Level and Persistence of Growth Rates published in The

journal of Finance April 2003, the problem with growth is

that it is neither persistent nor predictable. They looked

at the U.S. stock market from 1951–1997 and examined

how persistent revenue and profit growth were, and how

predictive analyst estimates and valuation ratios were of

future growth. Upon reviewing nearly 50 years of data, their

conclusions indicated a lack of persistence in long-term

earnings growth. Neither analyst forecasts nor valuation

ratios have significant predictive power. The paper argues

that investors over the period would have been more

accurate using GDP growth for every forecast than making

individual predictions based on analyst estimates or on

growth rates implied by valuation ratios.

“Market valuations reﬂect a pervasive belief among market

participants that firms who can consistently achieve high

earnings growth over many years are identifiable ex ante,”

wrote Chan, Karceski and Lakonishok. This is not the

consensus view among investors which often see high

multiples as a signal of future growth rates. The researchers

found that this was true even when looking at tech stocks,

glamour stocks, value stocks, large, mid and small cap

companies. In other words, in paying high multiples and

implicitly predicting long duration growth you are playing

against the odds (base-rates).

For this reason we focus on easy to understand companies

with proven business models, which are temporarily

forgotten or out of favour. We love buying companies

with the combination of a moat and significant runway for

growth. However, we are not willing pay a lot extra for them,

which have made that category dicult the last couple of

years. Our portfolio today have a PE ratio of ~10 on analysts’

expectations on 2022 – with in our minds good prospects

for value creating growth.

As always, if you as an owner or potential investor reading

this have any relevant suggestions (books, equity cases,

bond cases, etc.) on how we can improve feel free to reach

out. We are of the opinion that the most valuable input we

can get is a short thesis on any of the companies we are

invested in.

DAG MARIUS NERENG

CHIEF INVESTMENT OFFICER CIO

Employee since 2015. MBA in finance from Norwegian School of Economics.

Experienced investment and portfolio manager, most recently in Bankenes Sikringsfond

and Handelsbanken Asset Management.

2021 PROTECTOR FORSIKRING ANNUAL REPORT 21

2021 PROTECTOR FORSIKRING ANNUAL REPORT22

BOARD OF DIRECTORS

JOSTEIN SØRVOLL

ARVE REE

ELSE BUGGE FOUGNER

Chairman of the

Compensation Committee

Education:

- Actuary from the

University of Oslo (1973)

Experience:

- Private Investor

- CEO of Gabler

Wassum AS

(2009-2010)

- CEO of Protector

Forsikring ASA

(2003-2006)

- CEO of Norske Liv AS

(1992-1998)

- Executive positions in

the Storebrand group

(1976-1990)

Board member of

Protector since: 2006

Regarded as an

independent board

member: Yes

Number of shares in

Protector (incl. related

party): 502 751

Member of the

Compensation Committee

Member of the Audit

Committee

Member of the Risk

Committee

Education:

- MSc in Industrial

Economics and

Technology

Management, Norwegian

University of Science and

Technology

Experience:

- Managing Director of

AWC AS (2015-)

- Head of Ferd Special

Investments in Ferd

(2008-2014)

- Portfolio Manager in De

Putron Fund

Management

(2005-2008)

- Analyst in JP Morgan

(2003 and 2004-2005)

Board member of

Protector since: 2020

Other essential tasks

in companies and

organisations:

Board member in Kernel

AS, Cambi ASA and

Linstow AS

Regarded as an

independent board

member: Yes

Number of shares in

Protector (incl. related

party): 690 061

Member of the

Compensation Committee

Education:

- Cand. Jur. from the

University of Oslo (1971)

Experience:

- Employee Partner

Advokatfirmaet Hjort DA

(2019-)

- Lawyer at

kontorfellesskap

Advokatfirmaet Hjort DA

(2016-2018)

- Partner in

Advokatfirmaet Hjort DA

(1991-2015),

- Amanuensis at the

University of Oslo

(1990-1991)

- Minister of Justice,

Justice Department

(1989-1990)

- Partner in

Advokatfirmaet Hjort DA

(1975-1989)

- Lawyer in Advokatfirmaet

Hjort DA (1972-1975)

Board member of

Protector since: 2011

Other essential tasks

in companies and

organisations:

Long experience as

former Chairman and

board member of a

number of companies,

including Chairman in

Kommunalbanken AS

and Eksportkreditt AS

in addition to a five year

period as Deputy Chairman

in the Norwegian Financial

Supervisory Authority

Regarded as an

independent board

member: Yes

Number of shares in

Protector (incl. related

party): 0

CHAIRMAN OF THE

BOARD

DEPUTY CHAIRMAN

OF THE BOARD

BOARD MEMBER

RANDI HELENE RØED

Chairman Audit

Committee

Chairman Risk Committee

Education:

- MSc in Economics and

Business Administration

NHH

- AFF

Solstrandprogrammet

Experience:

- Chief Adviser

Sustainability Norsk

Tipping AS (2018-)

- EVP HR Norsk Tipping

AS (2015-2018)

- CFO Norsk Tipping

(2008-2015)

- Director in Eidsiva Energi

(2002-2008)

- Senior Associate in PWC

(1999-2002),

- Controller in IBM

and NIT

(1993-1999),

- Oce Manager Group

Accounting in DNB

(1989-1993)

Board member of

Protector since: 2014

Other essential tasks

in companies and

organisations:

Board member in

Gudbrandsdal Energi

Holding AS and Vevig AS

Regarded as an

independent board

member: Yes

Number of shares in

Protector (incl. related

party): 0

BOARD MEMBER

2021 PROTECTOR FORSIKRING ANNUAL REPORT 23

KJETIL GARSTAD LINE ENGELMANN-

KOKKIM

MATHEWS AMBALATHIL

(elected by and amongst

the employees)

Education:

- Bachelor in Hotel

Management (1990)

Experience:

- Payroll Manager,

Protector Forsikring ASA

(2012 - )

- Payroll and HR Manager,

Kruse og Smith AS

(2010- 2012)

- Payroll and Personnel

Manager, Skutle AS

(2008- 2012)

- CEO, Helios

Grünerløkka AS

(2004-2008)

Board member of

Protector since: 2018

Number of shares in

Protector (incl. related

party): 791

Member of the Audit

Committee

Member of the Risk

Committee

Education:

- MSc in Economics NHH

(2001)

Experience:

- Analyst in Stenshagen

Invest (2014-)

- Oil services analyst in

Arctic Securities

(2007-2013)

- Oil services analyst in

SEB Enskilda

(2004-2007)

- Corporate Finance in

UBS Warburg

(2001-2004)

Board member of

Protector since: 2020

Other essential tasks

in companies and

organisations:

Board member in

Norwegian Finans Holding

ASA, Gaming Innovation

Group Inc., Øgreid AS and

Vininor AS

Regarded as an

independent board

member: Yes

Number of shares in

Protector (incl. related

party): 198 836

(elected by and amongst

the employees)

Education:

- Master of Law,

The University of Oslo

2(005-2010)

Experience:

- Head of litigation team,

senior lawyer, lawyer

and associate, Protector

Forsikring (2012-)

- Real Estate Broker, DNB

Eiendom (2011-2012)

Board member of

Protector since: 2021

Number of shares in

Protector (incl. related

party): 0

BOARD MEMBER BOARD MEMBER BOARD MEMBER

2021 PROTECTOR FORSIKRING ANNUAL REPORT24

DIRECTORS’ REPORT

Protector Forsikring ASA is a general insurance company

(P&C) serving non-marine industries. The company’s focus is

towards the commercial and public sectors and the anity

insurance market. The insurances are sold through selected

insurance brokers.

Protector was founded in 2003 and obtained a license to

engage in general insurance the same year. The company

commenced its operations in 2004 and was listed on

the Oslo Stock Exchange in 2007. Protector entered

the Swedish insurance market in 2011, the Danish in 2012

and the Finnish and British in 2016. In 2018, the company

exited the Norwegian change of ownership insurance (COI)

market.

The company has grown rapidly since its inception, and

today counts over 411 employees, with oces in Stockholm,

Copenhagen, Helsinki, London, Manchester and Oslo (head

oce).

After the decision to exit the COI market, COI is defined as

“discontinued operations” in the accounts.

HIGHLIGHTS FOR 2021:

• 8 % growth in gross premiums written

• Combined ratio for own account 87,3 %

• 6.8 % return on the investment portfolio

• 35.6 % return on equity

• Solvency margin 206 %

• Dividend of NOK 7 per share for the accounting

year 2021, totalling NOK 576.6 million

PREMIUM INCOME

In 2021, gross premiums written increased by 8 % to a total

of NOK 5,959.6 million. In local currencies the growth was

10%. The growth is in line with the growth estimate the

company communicated to the market at the beginning of

the year.

Gross premiums earned increased by NOK 366.5 million to

a total of NOK 5,746.1 million.

Premiums earned for own account amounted to NOK

4,920.7 million, an increase of 7 % compared to 2020. The

reinsurers’ share of premium income is virtually unchanged

from last year.

Premium growth is driven by the UK and Sweden. In the UK,

gross written premiums increased by 22% to a total of NOK

1,618.1 million. Growth in the Nordic countries was: 13% in

Sweden to a total of NOK 1,820.5 million, 2% in Norway to

a total of NOK 1,415.0 million, -6% in Denmark to a total

of NOK 918.7 million and in Finland -21% to a total of NOK

178.2 million. In local currencies, growth was 24% in the UK

and 6% in the Nordics. In total, price increases amounted

to 8.9% against 13.7% in 2020. The renewal rate was 90.3%

against 83.0% in 2020.

The company is the market leader in the Scandinavian

municipal market. In 2021, total growth in the municipal

sector was -1 % in local currencies. Growth within the

personal lines of business and other business was -7 % and

1 % respectively. Negative growth within the personal lines

is mainly due to the exit of workers compensation in the

health and welfare industry in Norway. Growth in Sweden

was 7 %, in Denmark 26 % and in Norway 4 %. In the UK

and Finland, growth was 16 % and -18 % respectively. In

Denmark, the public sector accounted for 38 % of total

premium volume, in Sweden 25 %, in Norway 23 %, in the UK

27 % and in Finland 67 %.

Protector has in 2021 withdrawn from workers

compensation (WC) covers within the Norwegian health

and welfare industry due to the Government’s decision

to define Covid-19 as an occupational disease within the

WC cover. Moreover, the company has withdrawn from

WC as a single product in Denmark due to a significant

capital consumption on this product combined with poor

profitability. These measures represent a premium reduction

of NOK 191 million.

RESULT

Profit before tax amounted to NOK 1,416.3 million

compared to NOK 1,044.8 million in 2020. The strong result

is due to a strong technical result and a strong investment

result. Profit for discontinued operations (change of

ownership insurance) was NOK 67.4 million against NOK

94.3 million in 2020. The return on the average equity was

35.6 %, against 43.7 % in 2020.

The claims ratio for own account improved from 84.6

% in 2020 to 77.4 % in 2021. The expense ratio for own

account amounted to 9.9 %, down from 10.2 % in 2020.

The development in claims and expense ratios results in a

combined ratio for own account of 87.3 % , against 94.8 % in

2020.

2021 PROTECTOR FORSIKRING ANNUAL REPORT 25

The technical result is driven by good results in the Nordic

countries. In all Nordic countries the net combined ratio was

below 90 %. The UK came in weaker due to an above normal

number of large claims.

The Covid-19 pandemic had a positive impact on the claims

ratio for own account of approx. 0.8 percentage point,

down from approx. 1 percentage point in 2020. The eect

was primarily related to motor insurance as a result of less

driving.

Gross cost ratio has increased from 10.3 % in 2020 to 10.8 %

in 2021. The increase is driven by higher personnel costs and

broker commissions A reduction in the cost percentage is

expected in 2022 as a result of implemented cost measures

in the Nordic countries, top-line growth and continued cost

focus.

The net result from investments for the company’s total

investment portfolio amounted to NOK 954.5 million,

corresponding to 6.8 %, down from NOK 969.6 million,

corresponding to 8.0 % in 2020. The return is driven by a

strong return on equities and a good return on interest-

bearing securities.

The return on equities amounted to NOK 669.5 million,

corresponding to 38.9%, compared with NOK 433.8 million,

corresponding to 34.9%% in 2020.

The return on the fixed income portfolio amounted to

NOK 285.1 million, corresponding to 2.3%. In 2020, the

return on the fixed income portfolio was NOK 535.7million,

corresponding to 5.0%.

The technical result for discontinued operations (change of

ownership insurance) was NOK 10.8 million and the result

was NOK 67.4 million. In 2021, the company continued

to sell change of ownership insurance due to existing

agreements with some real estate agents. These agreements

are terminated as from 2022 due to new legislation

coming into force. The company has a 50 % quota share

(reinsurance) contract covering all change of ownership

insurance written in Norway until 1 July 2020.

The profit for the year 2021 in Protector Forsikring ASA was

NOK 1,204.0 million up from NOK 981.6 million in 2020.

The annual accounts have been presented based on a

going concern assumption and the Board confirms that the

assumption is present.

CAPITAL AND SHAREHOLDER ISSUES

Protector’s solvency capital requirement ratio (SCR-ratio)

calculated in accordance with the Solvency II rules was at

the end of 2021 206 % after the dividend paid in February

2022 and after proposed ordinary dividend for 2021. The

calculation of the SCR-ratio is described in further detail in

Note 24.

The company’s objective is to maintain a SCR-ratio

above 150 %.

The company’s equity amounted to NOK 3,582.1 million, an

increase of NOK 551.6 million. Dividend payments in 2021

have reduced equity by NOK 659.5 million.

The cash ﬂow statement showed a positive cash ﬂow from

operating activities, before investments in financial assets,

of NOK 1,342 million. Net cash ﬂow was positive by NOK

107.6 million. Cash and cash equivalents amounted to NOK

2,407.2 million at the end of 2021.

The company’s capital situation and solvency is considered

as satisfactory.

In December, Protector Forsikring ASA successfully

placed a subordinated loan of NOK 350 million. The terms

of the loan comply with existing and expected future

requirements for subordinated debt eligible as restricted

Tier 1 capital. NOK 208 million of the proceeds from the

issue has been used for a buy-back of the NOK 350 million

Tier1 bond, which has the first call date in March 2022. The

NOK 142 million increase in restricted Tier 1 capital has a 6

percentage point positive eect on the SCR-ratio.

The company had 2,248 shareholders at the end of 2021,

which is 179 more shareholders than at the same time in

2020 (2,069). Foreign shareholders own 29 % percent of

the shares compared to 27 % one year earlier.

DIVIDEND

The Board of Directors proposes a dividend of NOK 7.00

per share for the fiscal year 2021, corresponding to NOK

576.6 million. The Board considers the size of the dividend

to be in line with the company’s financial position and the

position in the market. Proposed dividend is included in

other earned equity.

Unless the need for capital dictates otherwise, it’s the

Board’s intention to distribute 20 - 80% of the profit for the

year after tax as an ordinary dividend. Final determination

will be based on the company’s result, capital requirements

2021 PROTECTOR FORSIKRING ANNUAL REPORT26

including satisfactory buers and the necessary ﬂexibility

for growth and development in the company. Ordinary

dividends will, as a general rule, only be paid at a solvency

margin above 150%. With a solvency margin above 180%, the

board’s intention is to over time return surplus capital to the

shareholders in the form of special dividends or repurchases

of shares.

The Board prepares quarterly dividend assessments on the

basis of the most recently approved annual accounts.

RISK EXPOSURES

Risk-taking forms the core of the company’s business

activities. Continuous risk monitoring and active risk

management are therefore an integrated area in the

company’s business and organization. The company’s

risk exposure is essentially connected with market risk,

insurance risk, credit risk, liquidity risk, operational risk and

strategic risk.

Market risk

Protector is exposed to losses due to changes in observable

market variables such as interest rates and securities

prices. At the end of 2020, the company had an investment

portfolio of NOK 14.3 billion, of which 84.9 % was invested

in interest-bearing instruments and 15.1 % in equities. The

share invested in equities has increased by 1.6 percentage

points during 2021. The duration in the fixed income

portfolio at the end of 2021 was 0.4 years, unchanged from

the end of 2020. Interest rate risk is considered low.

The Board annually determines the company’s investment

strategy, including its risk profile and restrictions on

investments in various instruments. The investment strategy

sets a framework that is adapted to the company’s risk

bearing capacity. The consolidated market risk is measured

and reported quarterly to the Board of Directors.

The total market risk for the company’s financial

investments is considered as acceptable.

For further information about interest-rate exposure and

stress tests, see Note 4.

The company has built up expertise and capacity for its own

management and the company’s total assets are managed

internally.

Insurance Risk

Like the market risk, the insurance risk is adjusted to the

company’s available risk capital. The risk is limited by the

company having established an extensive reinsurance

program with well-established reinsurers.

The framework for the reinsurance program is laid down

based on the need to protect the company’s equity capital

against loss occurrences in excess of an amount that

is regarded as sound and on the need to reduce result

ﬂuctuations. The company is satisfactorily protected against

disasters and large-scale claims through its reinsurance

program. The retention rate amounted to 85.6 % at the end

of 2021.

Credit Risk

Credit risk is the risk of loss if the company’s counterparty

does not meet its obligations. This also includes a risk of

changes in general credit prices, the so-called “spread risk”.

Protector is exposed to credit risk through its investments

in the bond and money markets and through reinsurance.

The company has established frameworks for the various

securities issuers as well as defined minimum credit ratings

for the various issuer groups for interest-bearing securities.

Frameworks have also been established for the duration

of credit. At the end of 2021, the credit duration in the

interest-rate portfolio was 1.3 years, down from 1.4 years

in 2020. The average credit rating for the issuers in the

portfolio is A- at the end of 2021, unchanged from the end

of 2020.

Outstanding claims against the company’s reinsurers

represent a credit risk. Counterparty risk on the reinsurance

market is assessed on a continuous basis. Generally the

reinsurers used by the company have a very good credit

rating.

The total credit risk in the company is regarded as

acceptable.

Liquidity Risk

In P&C insurance, the liquidity risk is general low since

premiums are due for payment before claims have to be

paid.

2021 PROTECTOR FORSIKRING ANNUAL REPORT 27

Protector primarily deposits premium payments received

in liquid accounts or invests them in liquid securities to

ensure that the company can obtain the necessary liquid

funds at any given time. The liquidity risk is regarded as

further reduced with internal management of the financial

portfolio.

Operational Risk

Operational risk is the risk of financial loss connected with

inadequate or failing internal processes or systems, human

errors, external events or failure to comply with applicable

rules and regulations.

Operational risk is calculated and reported in accordance

with Solvency II rules. The company also implements and

documents operational risk in connection with internal

control processes in the company. The main features of

this work are that the individual leader within his or her

respective area carries out a process to identify the most

significant risks before and after the measures implemented.

The work revealed in 2021 no risk conditions that were not

adequately controlled. The operational risk is considered to

be low.

Strategic Risk

The strategic risk is connected with Protector’s distribution,

IT solutions, market ﬂexibility, cooperation partners,

reputation and changes in market conditions (the list is not

necessarily exhaustive). Protector’s strategy is continuously

assessed against results, market and competitive changes

and changes in framework conditions. Factors that are

of critical importance to the company’s goal and target

achievement are monitored separately.

SOCIAL RESPONSIBILITY

Protector’s mission is to indemnify lives and assets and

relieve our customers of economic risk. The company’s

social responsibility also relates to other factors of

importance for sustainable social development. By

safeguarding the environment, ethics and social conditions,

we will contribute to long-term value creation for both

society and the company. The company has established

sustainability as an element in the company’s strategy and

has defined main areas and activities for this work.

The company has prepared a separate report on social

responsibility. The report is included in the annual

report on page 68 and includes information on matters

mentioned in the Accounting Act § 3-3a paragraph 9-10,

the Accounting Act § 3-3b paragraph 2 no. 9 and the

Equality and Discrimination Act § 26a, related to the

working environment, the company’s impact on the external

environment and equality and diversity.

CORPORATE GOVERNANCE

Protector established its own principles of corporate

governance which should contribute to the highest possible

value creation over time for the shareholders and increased

confidence in the company through an open corporate

culture and good reputation. The principles of corporate

governance mainly follow the laws and regulations the

company is subject to. Furthermore, the principles are based

on the Norwegian Code of Corporate Governance. For

a more detailed description of the Protector’s corporate

governance, see a separate statement in the annual report.

REMUNERATION OF EXECUTIVE PERSONNEL

A specification of total remuneration of executive personnel

is enclosed in Note 21 in the annual accounts. Guidelines

for remuneration as well as a report on remuneration of

executive personnel are published on the company’s website

www.protectorforsikring.no.

BOARD LIABILITY INSURANCE

Protector Forsikring ASA has taken out a board liability

insurance for the company including the branches. The

insurance covers the Board’s and the CEO’s liability for

the damage caused by the performance of their duties.

Loss limit is NOK 50 million.

EVENTS AFTER THE BALANCE SHEET DATE

In accordance with the authorization from the general

meeting, the Board has on 16 February 2022 paid a dividend

of NOK 247.1 million (equivalent to NOK 3.00 per share)

based on the 2020-result. The paid dividend is included in

other equity as of 31.12.2021.

As of 31.12.2021, the company has NOK 142 million

outstanding in a restricted tier 1 loan with call date in March

2022 (PROTCT 04). The company announced 7 February

2022 that the company will exercise it’s right to call the

loan. The loan is included in other subordinated loan capital

as of 31.12.2021.

No other significant incidents since 31 December 2021

provide information concerning the conditions which

existed at the balance sheet date.

2021 PROTECTOR FORSIKRING ANNUAL REPORT28

PROSPECTS

Price increases above claims inﬂation and other profitability

measures improve the claims ratio. The underlying

profitability is good and with continued profitability

measurers the technical result is expected to remain on a

good level .

The Covid-19 situation has to this point had a limited

eect on the company’s insurance business. Products in

our portfolio that may be adversely aected by Covid-19

are limited. The situation may still lead to some increase

in pay-outs within products like other illness and business

interruption, as well as extraordinary claims inﬂation on

property damage. Reduced economic activity can still

counteract the potential negative factors.

Entering 2022, the company has experienced a continuing

low client churn. In January , our largest inception month,

the company experienced 11% growth in local currencies

supported by price increases above claims inﬂation.

However the forward looking market conditions are still

uncertain, and do still depend on how Covid-19 evolves.

There is normally uncertainty related to future conditions,

but the Board is of the opinion that the company is well

equipped to meet the competition going forward.

Oslo, 10 March 2022

The Board of Directors of Protector Forsikring ASA

Translation - not to be signed

Jostein Sørvoll

(Chairman)

Arve Ree

(Deputy Chairman)

Else Bugge Fougner Kjetil Garstad

Randi Helene Røed Line Engelmann-Kokkim Mathews Ambalathil Henrik Golfetto Høye

(CEO)

292021 PROTECTOR FORSIKRING ANNUAL REPORT

INCOME STATEMENT

[1.000 NOK] Notes 2021 2020

PREMIUM INCOME

Gross premiums earned 5 746 076 5 379 562

Reinsurers’ share of earned premiums (825 339) (766 049)

Earned premiums, net of reinsurance 6 4 920 737 4 613 513

Other insurance-related income 8 716 19 510

CLAIMS COST

Gross claims incurred (4 468 397) (4 424 620)

Reinsurers’ share of claims incurred 658 334 523 249

Claims incurred, net of reinsurance 6 (3 810 063) (3 901 370)

OPERATING EXPENSES

Sales costs 18 (361 665) (331 332)

Administration costs 14,19-21 (256 615) (221 286)

Commission from reinsurers 130 701 81 607

Total operating expenses, net of reinsurance (487 578) (471 012)

Other insurance-related expenses (37 410) (14 049)

Technical result 594 401 246 591

NET INCOME FROM FINANCIAL ASSETS

Income from investments in associated companies 10 827

Interest income and dividend from financial assets 331 664 247 396

Changes in value on investments (21 830) 550 439

Realised gain and loss on investments 620 595 126 058

Administration expenses related to investments, including interest expenses (62 930) (58 694)

Total net financial income 22 878 325 865 199

Other income 1 993 902

Other expenses (58 381) (67 874)

Total other income/expenses (56 388) (66 973)

Non-technical result 821 937 798 227

Profit before tax 1 416 338 1 044 818

Tax 15 (251 656) (159 958)

Profit from continued operations 1 164 682 884 860

Discontinued operations 27 67 428 94 344

Profit before components of comprehensive income 1 232 110 979 204

COMPONENTS OF COMPREHENSIVE INCOME

Other comprehensive income that will not be reclassified subsequently to profit or loss

Actuarial gain and loss from defined benefit pension plans (1 028) (511)

Tax on other comprehensive income that will not be reclassified subsequently to profit or loss 257 128

Total other comprehensive income that will not be reclassified subsequently to profit or loss (771) (383)

Other comprehensive income that will be reclassified subsequently to profit or loss

Exchange dierences from foreign operations (36 487) 3 670

Tax on other comprehensive income that will be reclassified subsequently to profit or loss 9 122 (918)

Total other comprehensive income that will be reclassified subsequently to profit or loss 15 (27 365) 2 753

Total other comprehensive income (28 136) 2 370

Profit for the period 1 203 973 981 573

30 2021 PROTECTOR FORSIKRING ANNUAL REPORT

STATEMENT OF FINANCIAL POSITION

[1.000 NOK] Notes 31.12.2021 31.12.2020

ASSETS

INTANGIBLE FIXED ASSETS

Other intangible fixed assets 7 73 336 53 690

Total intangible fixed assets 73 336 53 690

FINANCIAL ASSETS

Shares in associated companies 127 330

Shares 1 824 416 1 601 735

Securities, bonds etc 9 179 328 8 574 739

Financial derivatives 94 133 47 879

Bank deposits 1 935 562 1 812 088

Total financial assets 4, 9 13 160 769 12 036 440

REINSURERS SHARE OF GROSS TECHNICAL PROVISIONS

Reinsurers share of gross premium provisions 177 089 158 990

Reinsurers share of gross claims provisions 2 972 195 1 686 916

Total reinsurers share of gross technical provisions 6 3 149 285 1 380 843

RECEIVABLES

Policyholders 523 216 313 371

Other receivables 95 258 112 271

Total receivables 10 618 474 425 642

OTHER ASSETS

Tangible fixed assets 8 33 994 30 444

Cash and bank deposits 11 299 836 263 165

Total other assets 333 829 293 609

Prepaid expenses 12 462 534 505 293

Assets discontinued operations 27 1 448 049 1 895 744

Total assets 19 246 276 16 750 251

312021 PROTECTOR FORSIKRING ANNUAL REPORT

STATEMENT OF FINANCIAL POSITION

[1.000 NOK] Notes 31.12.2021 31.12.2020

EQUITY AND LIABILITIES

SHAREHOLDERS’ EQUITY

Share capital [82.500.000 shares] 13 82 500 86 156

Own shares 13 (128) (4 269)

Other paid-in equity 267 677 267 677

Total paid-in equity 350 049 349 563

EARNED EQUITY

Natural perils capital 97 748 70 153

Guarantee scheme 78 163 84 875

Fund for valuation dierences 9 958

Other equity 3 046 211 2 525 882

Total earned equity 3 232 081 2 680 909

Total equity 3 582 130 3 030 473

Subordinated loan capital 9, 25 1 384 664 1 473 035

TECHNICAL PROVISIONS

Provisions for unearned premiums 1 575 464 1 396 714

Provisions for claims 3 8 404 103 7 788 403

Total technical provisions 6 9 979 567 9 185 116

PROVISIONS FOR OTHER RISKS AND LIABILITIES

Pension liabilities 14 - 17 892

Current tax liability 15 191 229 103 323

Deferred tax liability 15 121 582 124 472

Total provisions for other risks and liabilities 312 810 245 687

LIABILITIES

Liabilities in connection with insurance 16 73 384 43 084

Liabilities in connection with reinsurance 16 2 238 317 934 027

Financial derivatives 4, 9, 16 26 146 61 402

Other liabilities 16 286 557 250 477

Total liabilities 4, 16 2 624 404 1 288 990

Incurred expenses and prepaid income 17 528 917 415 381

Liabilities discontinued operations 27 833 784 1 111 569

Total equity and liabilities 19 246 276 16 750 251

Oslo, March 10th 2022

The Board of Directors of Protector Forsikring ASA

Translation - not to be signed

Jostein Sørvoll

(Chairman)

Arve Ree

(Deputy Chairman)

Else Bugge Fougner Randi Helene Røed

Kjetil Garstad Line Engelmann-Kokkim Mathews Ambalathil Henrik Golfetto Høye

(CEO)

32 2021 PROTECTOR FORSIKRING ANNUAL REPORT

CASH FLOW STATEMENT

[1.000 NOK] 2021 2020

CASH FLOW FROM OPERATIONS

Premiums paid 5 884 296 5 888 027

Claims paid (3 934 521) (4 558 162)

Paid reinsurance (351 838) 208 511

Paid operating expenses including commissions (440 102) (473 651)

Interest / dividend income 358 106 270 093

Net payments from financial instruments (372 106) (1 337 143)

Payable tax (173 890) (39 409)

Net cash ﬂow from operations 969 945 (41 733)

CASH FLOW FROM INVESTMENT ACTIVITIES

Investments in fixed assets (52 815) (15 804)

Net cash ﬂow from investment activities (52 815) (15 804)

CASH FLOW FROM FINANCIAL ACTIVITIES

Dividend paid (659 536)

Repayment of subordinated loan capital (see note 25) (439 000) (269 000)

Payment of subordinated loan capital (see note 25) 350 628 498 750

Interest payments on subordinated loan capital (61 616) (61 665)

Net cash ﬂow from financial activities 809 524 168 085

Net cash ﬂow for the period 107 606 110 549

Net change in cash and cash equivalents 107 606 110 549

Cash and cash equivalents opening balance 2 312 148 2 155 126

Eects of exchange rate changes on cash and cash equivalents (12 525) 46 473

CASH AND CASH EQUIVALENTS CLOSING BALANCE 2 407 229 2 312 148

332021 PROTECTOR FORSIKRING ANNUAL REPORT

STATEMENT OF CHANGES IN EQUITY

[1.000 NOK]

Capital

Own

Other

paid-

in equity

Natural

perils

capital

Guarantee

scheme

provision

Fund for

valuation

dierences

Other equity

Total equity

Equity as at 31.12.2019 86 156 (4 394) 267 677 76 876 89 170 1 503 849 2 019 335

1.1- 31.12.2020

Change own shares 124 124

Total equity before profit for the year 86 156 (4 269) 267 677 76 876 89 170 1 503 849 2 019 459

Profit before other comprehensive income 981 573 981 573

Other changes in equity 29 440 29 440

Total equity before fund provisions 86 156 (4 269) 267 677 76 876 89 170

2 514 863 3 030 472

Provisions to obliged fund gross (6 723) (4 296) 11 019 -

Equity as at 31.12.2020 86 156 (4 269) 267 677 70 153 84 875 2 525 882 3 030 472

1.1- 31.12.2021

Change own shares 4 141 6 735 10 876

Capital reduction (3 656) (3 656)

Total equity before profit for the year 82 500 (128) 267 677 70 153 84 875 2 532 616 3 037 693

Profit before other comprehensive income 1 203 973 1 203 973

Dividend paid (659 536) (659 536)

Total equity before fund provisions 82 500 (128) 267 677 70 153 84 875 3 077 054 3 582 130

Provisions to obliged fund gross 27 595 (6 711) 9 958 (30 843) -

EQUITY AS AT 31.12.2021 82 500 (128) 267 677 97 748 78 163 9 958 3 046 211 3 582 130

34 2021 PROTECTOR FORSIKRING ANNUAL REPORT

ACCOUNTS AND NOTES

NOTE 1 ACCOUNTING PRINCIPLES

General

The company’s financial statements are prepared in accordance with

the Norwegian Accounting Act, financial statement regulations for

insurance companies, which is mainly in accordance with International

Accounting Principles (IFRS), and generally accepted accounting

principles.

Changes in accounting principles

No new accounting standards have been implemented in 2021.

New accounting standards that have not entered into force

IFRS 17 replaces IFRS 4 Insurance Contracts and introduces new

requirements for recognition, measurement, presentation and

information on issued insurance contracts. The purpose of the

new standard is to establish a uniform practice for accounting for

insurance contracts. The standard enters into force on 1 January

2023. The implementation date is 1 January 2023 with a

requirement that comparable figures be provided.

The consultation note IFRS adaptation of annual accounts

regulations - IFRS 17 Insurance contracts prepared by Finanstilsynet

proposes that in the company accounts of large non-life insurance

companies an obligation to apply IFRS, including IFRS 17, from the

financial year 2023 with the right to deviate from IFRS in some cases.

The consultation note has not yet been adopted, but will mean that

the company accounts of Protector Forsikring ASA from 2023 will be

presented in accordance with IFRS.

Foreign currency

The parent company and the various branches have Norwegian,

Swedish and Danish kroner, Pound and Euro respectively as

functional currency. All financial information is presented in NOK

unless otherwise stated. Transactions in foreign currency are

translated into functional currency at the exchange rate at the

transaction date. Profit and loss items related to Sweden, Denmark,

Finland and UK are translated into NOK at average rate. Assets and

liabilities are translated at the exchange rate at the reporting date.

Exchange dierences arising on currency translations are recognised

in other comprehensive income.

Income and expenses in the profit and loss account

Revenue recognition occurs when the income is earned. Costs are

recognised at the time incurred.

Prepaid income and accrued unpaid expenses at the end of the year

are accrued and reported as liabilities in the financial statement.

Accrued income at the end of the year is recorded as income and

stated as a liability in the financial statement.

Premium income

Premium income consists of gross premiums earned and reinsurers’

share of earned premiums. Gross premiums earned consists of gross

written premiums and change in gross provision for unearned

premiums. Reinsurers’ share of earned premiums consists of

premiums written ceded and change in reinsurers’ share of

provision for gross unearned premiums.

Insurance premiums are recognized over the term of the policy.

Gross premiums written include all amounts received or due relating

to insurance contracts incepting during the reported period.

Adjustments are made for those premiums unearned at the reported

date together with premiums earned in the current period from

contracts incepting in prior periods. This adjustment is reported as

gross premiums earned. For change of ownership insurance, the

income is entered into the financial statement at the time of the risk

transfer. Premiums for ceded reinsurance are recognised according

to the insurance period on the same basis and reduce the overall

premiums reported.

Claims incurred

Claims incurred consist of gross claims incurred and reinsurers’

share of claims incurred. Gross claims incurred consists of claims

paid and reinsurers’ share of claims paid. Reinsurers’ share of claims

incurred consists of reinsurers’ share of claims paid and reinsurers’

share of change in provision for gross outstanding claims. The claims

cost includes provision for indirect claims handling costs. The claims

incurred also contains run-o gains / losses on previous years’ claims

provisions.

Total insurance-related operating expenses

Total insurance-related operating expenses consist of sales- and

administrative expenses, less commissions received on ceded

reinsurance premiums. Operating costs related to claims handling

are transferred to claims cost.

Technical provisions

The technical provisions are calculated in accordance with the

principles established in the regulations in financial statement

regulations for insurance companies §3-5.

Provision for unearned premiums

The premium provision represents the accrual of insurance premiums

and comprises the unearned portion of premiums written during

the year. The earned premiums are accrued linearly throughout the

period of insurance.

Claims provision

The claims provision comprises provisions for claims which are

reported but not settled, and claims incurred but not reported at

the end of the accounting year. The provisions in respect of known

losses are individually assessed by the claims department, while the

provisions for claims not yet reported are based on empirical data

and the application of actuarial calculations. The provisions shall

cover the company’s expected future claims payments for risks

covered to date.

Natural perils capital

Operating surplus from the mandatory Norwegian Natural Perils Pool

must be allocated to a separate Natural Perils capital. These funds

may only be drawn upon in respect of claims related to losses caused

by natural perils. The fund is restricted equity.

Guarantee scheme provision

The purpose of the guarantee scheme provision is to guarantee that

claims submitted under direct non-life insurance contracts entered

into in Norway are settled in full. The fund is restricted equity.

Reinsurers’ share of gross technical provisions

Reinsurers’ share of gross technical provisions is classified as an asset

in the balance sheet. Reinsurers’ share of gross premium provisions

and reinsurers’ share of gross claims provision are included in

reinsurers share of gross technical provisions.

Fixed assets and intangible assets

Fixed assets and intangible assets are recognised at acquisition costs,

and are written down to actual value when the depreciation in value is

not expected to be temporary. Depreciations are deducted from the

durable business assets and intangible assets. Potential expenditures

or improvements are added to the business assets acquisition cost

and depreciate in line with the business asset.

352021 PROTECTOR FORSIKRING ANNUAL REPORT

The immaterial assets comprise software and IT-systems.

The Company’s IT-systems are developed in-house, while other

IT systems are standard systems.

Receivables

In the financial statement trade debtors and other receivables are

accounted for at face value adjusted for provisions for expected

losses. Provisions for expected losses are made based on evaluations

of the individual receivables.

Bank

Bank deposits are deposits used in the continuing operations.

Financial assets and liabilities

Financial instruments are recognized and measured in accordance

with IAS 39. IFRS 9 Financial instruments that replace IAS 39 were

generally applied from 1 January 2018, but the regulations on annual

accounts for non-life insurance companies provide for the use of

IFRS 39 for the financial years up to and including 2022

Recognition and derecognition

Financial assets and liabilities are included in the statement of f

inancial position from the time Protector becomes party to the

instrument’s contractual terms and conditions. Normal purchases and

sales of financial instruments are recorded on the transaction date.

When a financial asset or a financial liability is initially recognised in

the financial statements, it is valued at fair value.

Financial assets are derecognised when the contractual right to the

cash ﬂow from the financial asset expires, or when the company

transfers the financial asset to another party in a transaction by which

all, or virtually all, the risk and reward associated with ownership of

the asset is transferred.

Financial liabilities are derecognised in the statement of financial

position when they cease to exist, i.e. once the contractual liability

has been fulfilled, cancelled or has expired.

Financial assets at fair value through profit or loss

Financial assets and liabilities are classified at fair value through p

rofit or loss if they are included in a portfolio that is measured and

evaluated regularly at fair value. Protector holds an investment

portfolio that is designated at fair value at initial recognition, and that

is managed and evaluated regularly at fair value. This is according to

the Board of Directors’ approved risk management and investment

strategy.

Financial assets that are booked at fair value through profit or loss are

booked at fair value when acquired and transaction costs are

allocated in the accounts. Financial assets with fair value through

profit or loss are considered to represent fair value once they appear

in the statement of financial position for the first time.

Financial liabilities at amortised cost

Financial liabilities are measured at amortised cost using an eective

interest method. Transaction costs related to the issue of the loan

are included in the amortised cost. Where the time horizon for the

maturity date is relatively short, the nominal interest rate is used to

calculate amortised cost.

In the category of financial liabilities at amortised cost, subordinated

loan capital is included.

Investments in associated companies

Investments in associated companies are accounted for using the

equity method.

Dividend

Dividend from investments is recognised when the company has an

unconditional right to receive the dividend. Dividend payments is

recognised as a liability at the time when the General Meeting

approves the payment of the dividend.

Provisions

Provisions are recognised when the company has a legal or

constructive obligation as a result of a past event, it is probable that

this will result in the payment or transfer of other assets to settle the

obligation, and a reliable estimate can be made of the amount of the

obligation.

Information about contingent assets are disclosed where an inﬂow

of economic benefits is probable. Information about a contingent

liability is disclosed unless the possibility of a capital outﬂow is

remote.

Pensions

Protector has country-specific defined contribution pension

schemes. A defined contribution pension scheme means that the

company pays an annual contribution to the employees’ collective

pension savings. The future pension will depend on the size of the

contribution and the annual return on the pension savings. The

company has no further obligation related to work eort delivered

after the annual contribution has been paid. There is no provision for

accrued pension obligations in such schemes. Defined contribution

pension plans are expensed directly.

Tax

The tax expense in the income statement consists of payable tax for

the accounting period, and the period’s changes in deferred tax. In

the accounting period, we have used 25% on deferred tax and on

payable tax.

Deferred tax is calculated of the temporary dierences between the

tax bases of assets and liabilities and their carrying amounts in the

financial statements, together with tax loss carried forward at the

end of the fiscal year. Temporary tax increases or decreases, which

are reversed or may reverse within the same period, are balanced.

Deferred tax assets are recorded in the statement of financial

position when it is more likely than not that the tax assets will be

utilized.

Tax is recognised in the income statement, except to the extent that

it relates to items recognised in the total comprehensive income,

when it is recognised it the total comprehensive income.

Discontinued operations

Protector presents discontinued operations on separate lines in the

income statement and balance sheet when the relevant business

on the reporting date has been decided to sell or liquidate. The

compa¬rative figures are restated accordingly. Specification of the

individual items are included in a separate note.

Cash ﬂow statement

Cash ﬂows from operating activities are presented according to the

direct method, which gives information about material classes and

payments.

36 2021 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 2 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of the financial statements IFRS and the application

of the adopted accounting policies require that management make

assessments, prepare estimates and apply assumptions that aect

the carrying amounts of assets and liabilities, income and expenses.

The estimates and the associated assumptions are based on

experience and other factors that are assessed as being justifiable

based on the underlying conditions. Actual figures may deviate from

these estimates. Changes in accounting estimates are recognised in

the period the estimates are revised if the change only aects this

period, or both in the period the estimates change and in future

periods if the changes aect both the existing and future periods.

The accounting policies that are used by Protector in which the

assessments, estimates and prerequisites may deviate significantly

from the actual results are discussed below.

Financial assets at fair value

There will be uncertainty associated with pricing of financial

instruments particularly related to instruments that are not priced

in an active market. See note 9.

Technical provisions

Use of estimates in calculation of technical provisions is primarily

applicable for claims provisions. Insurance products are generally

divided into two main categories: lines with short or long settlement

periods. The settlement period is defined as the duration between a

loss and/or notification date reported and settlement date. Produ-

cts with short settlement periods are e.g. property insurance, while

products with long settlement periods primarily involve personal and

liability lines of business. The uncertainty in the estimates of claims

provisions is highest for products with long settlement periods.

For products with long settlement periods the risk is linked to the

fact that the total claim costs must be estimated based on experience

and empirical data. For certain personal lines products, it may take 10

to 15 years before all the claims that occurred in a particular calendar

year are reported to the company. In addition, there will be many

instances where the reported information is inadequate to calculate

correct claims provisions. This may be due to ambiguity concerning

the causal relationship and uncertainty about the injured party’s

future work capacity etc. Many personal injury claims are tried in

the court system, and the level of compensation for such claims has

increased over time. This will also be a consequence for claims that

occurred in previous years which have not yet been settled. The risk

linked to provisions for personal lines of business is thus eected by

external conditions. To reduce this risk, the company calculates its

claims related liabilities based on various methods and ensures that

the registered provisions linked to ongoing claims are updated at all

times based on the current calculation rules.

Claims provisions consist of RBNS (Reported But Not Settled), IBNR

(Incurred But Not Reported) and ULAE (Unallocated Loss Adjustment

Expenses). RBNS are made on single claims level, and are based on

standard reserves or claims handler’s assessments, based on available

information related to specific claims.

IBNR are estimated based on recognized actuarial models. Models

applied are mainly variations based on Bornhuetter-Ferguson and

Chain Ladder methodologies. Bornhuetter-Ferguson is mainly used

for products with long settlement periods, while Chain Ladder is also

used for products with short settlement periods. The volume and

period of exposure are assumed to be sucient for most lines of

business in Norway, to estimate a run-o pattern based on company

data. Market data combined with own experience base is used to

estimate a complete settlement pattern for insurance industries

with assumed longer settlement time than own experience basis.

This mainly applies to occupational injury insurance in Denmark

and Finland, as well as liability industries in the UK. The models are

used as guiding calculating tools and are always subject to a fairness

assessment. Gross IBNR are estimated per combination of accident

year / segment / line of business / country. Net IBNR are calculated

proportionally to the net premium where there are ceded premium.

IBNR are in general set on aggregated portfolio level. A few claims

have explicit IBNR, set on a single claim basis.

ULAE are the company’s estimate of the cost related to future claims

handling, and is not yet allocated to the reserve for each case. ULAE

are estimated based on methodology and parameters developed and

distributed by the Norwegian FSA.

No discounted values are used for the accounting technical

provisions.

Contingent liabilities

Protector operates an extensive business in Norway and abroad,

and may become a party to litigations. Accounting for contingent

liabilities is assessed in each case and based on legal assessments.

See note 26.

NOTE 3 INSURANCE RISK

The risk in any insurance contract is the probability that the insured

event occurs and the uncertainty of the amount of the resulting

claim. By the very nature of an insurance contract, this risk is random

and must therefore be estimated.

Factors that have a negative impact on insurance risk include lack of

risk diversification in terms of type and amount of risk, geographical

location and type of industry covered.

Protector operates primarily in the Scandinavian market and in

Finland and UK. Protector covers all classes of business within

general insurance. Protector seeks to diversify the insurance

portfolio to reduce the variability of the expected results.

Premium risk

Premium risk is the risk related to whether charged premiums are

sucient to cover payable liabilities in respect of insurance contracts

Protector enters into.

This risk is assessed and managed on the basis of statistical analysis of

historical experience for the various lines of business. The insurance

premium must be sucient to cover expected claims, but also

comprise a risk premium equal to the return on the part of the

company’s capital that is used to protect against random ﬂuctuations.

All other factors equal, this means that lines of business which, from

experience, are subject to major ﬂuctuations, must include a larger

risk premium.

Reinsurance is used to reduce the underwriting risk in areas where

this is particularly required.

The company has clearly specified guidelines for which types of

insurance risks, as well as which limits of liability that can be

written. Underwriting limits are in place to ensure that appropriate

risk selection criteria are applied and to ensure that accepted risks

are within the terms and conditions of the company’s reinsurance

contracts. Protector’s reinsurance contracts which are a combination

of quota share and XL agreements, further reduces the risk exposure.

Insurance risks are considered moderate with the reinsurance cover

the company has in place.

372021 PROTECTOR FORSIKRING ANNUAL REPORT

The calculation of provisions for claims will always be subject to

considerable uncertainty. Historically, many insurers have experienced

substantial positive as well as negative impacts on profit (run-o) resulting

from reserving risk and this may also happen in the future.

Reserving risk is managed by pursuing a reserving policy which ensures

that the process for determining provisions for claims is updated and

aligned at all times. This includes that it is based on an underlying model

analysis, and that internal control calculations and evaluations are made.

CASH FLOW CONNECTED TO CLAIMS PROVISIONS FOR OWN ACCOUNT

Future cash ﬂow related to claims incurred

[1.000 NOK] At

31. December 2021 0 - 5 years

5 - 10

years

11 - 15

years

16 - 20

years

More than

20 years

Claims provisions for

own account 5 431 908 4 154 645 916 380 212 587 71 371 76 925

GROSS CLAIMS DEVELOPMENT

[1.000 NOK] 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total

2012 808 829 808 829

2013 787 758 1 157 525 1 945 284

2014 788 515 1 144 521 1 435 072 3 368 108

2015 792 037 1 145 918 1 400 422 1 793 811 5 132 188

2016 711 408 1 124 848 1 447 439 1 744 304 2 288 759 7 316 758

2017 737 271 1 087 996 1 390 333 1 722 230 2 359 937 3 554 617 10 852 384

2018 727 217 1 074 835 1 353 262 1 708 699 2 341 456 3 483 932 3 882 631 14 572 031

2019 705 575 1 065 100 1 330 017 1 728 158 2 410 805 3 505 709 3 991 883 4 318 733 19 055 979

2020 696 737 1 066 438 1 379 293 1 798 728 2 551 554 3 535 339 4 104 664 4 329 862 4 018 661 23 481 276

Estimated amount as at

31.12.2021

698 434 1 054 902 1 382 305 1 847 398 2 535 526 3 531 747 4 197 467 4 283 950 3 978 961 3 992 646 27 503 337

Total disbursed 664 121 975 395 1 191 595 1 476 985 2 020 716 2 606 971 3 335 580 3 166 243 2 524 915 1 532 887 19 495 407

Provisions for claims 34 313 79 506 190 710 370 412 514 811 924 776 861 888 1 117 707 1 454 046 2 459 759 8 007 929

Provisions for claims from

claims prior years (before

2012)

34 413

Provision for indirect claims

handling costs (ULAE)

361 760

Total provisions for claims 8 404 102

Reserve risk

Once the policy period expires, the insurance risk relates to the

provisions which are set aside to cover future payments on claims

incurred. Clients may report claims with a certain delay. Depending

on the complexity of the claim, a shorter or longer period of time

may pass until the amount of the claim has been finally calculated.

This may be a prolonged process particularly for personal injuries.

Even when the claim has been settled, there is a risk that it will be

resumed at a later date and trigger further payments.

The size of the claims provisions is determined both through

individual assessments and actuarial calculations. At 31 December

2021, the claims provisions amounted to NOK 5,432 million for own

account.

The duration of the provisions, that is, the average duration of

provisions being settled to clients, was 3.6 years at 31 December

2021. 1%-point increases in inﬂation will result in a growth in claims

provisions of NOK 197 million. The table below shows how future cash

ﬂow is related to provisions for outstanding claims for own account at

31 December 2021.

38 2021 PROTECTOR FORSIKRING ANNUAL REPORT

EFFECT ON PROFIT BEFORE TAX NOK 1.000 2021 2020

1 % change in insurance-related operating expenses 4 876 4 710

1 % change in claims incurred 38 101 39 014

1 % - point change in combined ratio 49 207 46 135

1 % - point change in inﬂation 197 388 298 643

The size of claims provisions

Insurance events are random, and the actual number and amount

of claims and benefits will vary from year to year from the level

established using statistical techniques. Experience shows that the

larger the portfolio of similar insurance contracts, the smaller the

relative variability of the expected outcome will be.

The frequency and severity of claims can be aected by several

factors. The dierent factors will depend on the products, or lines of

business considered. An increase in the frequency of claims can be

due to seasonal eects and more sustainable eects. In some lines

of businesses, with relatively few claims, severe claims may heavily

inﬂuence the result. In most lines of businesses, the underlying

development of the severity of claims is inﬂuenced by inﬂation.

See the eect on profit before tax (for own account) in the

sensitivity analyses below for 1% change in operating expenses,

1% change in claims incurred,1%-point change in combined ratio and

1%-point change in inﬂation.

Market risk

Market risk is the risk of loss on open positions in financial instruments as a result of changes in market variables and / or market conditions

within a specified time horizon. Market risk is therefore the risk of price changes in the financial markets, which aect the value of the

company’s financial instruments.

An increase of one percent in interest rates will lead to a reduction in the portfolio of bonds and other fixed-income securities by an estimate

of NOK 44.7 million before tax. This corresponds to an interest rate sensitivity of about 0.37 percent.

Foreign exchange risk

Foreign exchange risk is defined as the financial loss resulting from a ﬂuctuations in currency exchange rates. The company has an exposure to

foreign exchange risk through its investments.

Some of the investments in bonds and equities are in foreign currency, mainly in EUR, DKK, SEK and GBP.

Generally, foreign exchange risk in the investment portfolio is hedged close to 100 percent, within permitted limit of +/- five percent per

currency.

[1.000 NOK] At 31. December 2021

Less than one

year

1 - 3 years More than 3 years Total cash ﬂow

Total carrying

amount

Subordinated loan capital*) 588 502 81 080 908 246 1 577 828 1 384 664

Foreign exchange derivatives 26 146 26 146 26 146

Liabilities 3 127 175 3 127 175 3 127 175

Total financial liabilities 3 741 823 81 080 908 246 4 731 149 4 537 985

*)The cash ﬂow is calculated up to the first call

Cash ﬂow for financial liabilities grouped by maturity

NOTE 4 FINANCIAL RISK

Liquidity risk

Liquidity risk in an insurance company is mainly related to the inability to meet payments when due.

The company’s financial assets are, in addition to bank deposits, mainly invested in liquid fixed-income securities and shares.

The liquidity risk is therefore limited. Premium income is paid up front, and claims are paid out at a later stage.

Future payments are not based on contractual payment dates, but rather when claims arise and how long the claims handling takes.

392021 PROTECTOR FORSIKRING ANNUAL REPORT

Rating Investments allocated per rating category

[1.000 NOK] 2021 2020

Bonds and other fixed-income securities

AAA 3 423 642 3 101 944

AA 186 161 10 967

A 470 341 622 852

BBB 435 861 601 033

BB 67 538 176 688

No rating 3 670 970 4 086 041

Totalt bond by rating 8 254 514 8 599 526

Bond fund not managed by Protector 1 721 257 1 009 423

Total bonds and other fixed-income securities 9 975 771 9 608 949

Bank deposits related to investment portfolio

AA 422 622 258 294

A 1 264 254 1 459 020

BBB 65 646 40 082

No rating 350 978 273 249

Totalt bank deposits related to investment portfolio 2 103 501 2 030 646

Protector’s main market is Nordic bonds where there is a high proportion of unrated issuers / securities.

The weighted average for the bond portfolio is assessed at investment grade where the average of the rated securities is higher and the

unrated ones are lower than the average.

Bank deposits associated with the investment portfolio mainly consist of restricted bank deposits with 31 days ’notice, and with 31 days’

notice for a change in interest margin. It is not possible to make any deposits or withdrawals during the term. The interest rate is adjusted

daily in accordance with NIBOR3M.

The company manages the investment portfolio in compliance with Solvency II, cf. Art 132 (”Prudent Person Principle”) and the Financial

Undertakings Act, cf. § 13-10 which requires emphasis on prudent funding, safety, risk diversification and income, and adapting the

investment management accordingly to changes in risk related to the dierent business areas.

Qualitative and quantitative limits for the company’s AUM is specified in the investment management mandate is reviewed, updated and

approved by the Board of Directors at least once a year, or with a higher frequency if needed.

The compliance of the requirements of investment management mandate is monitored internally, and is reported internal in the company

and to the Board of Directors on regular basis.

The company have established an ORSA-process and risk reporting that among other things monitors and reports the company’s risk

exposure to the Board of Directors.

40 2021 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 5 SEGMENT INFORMATION

Total

Norway

Sweden Denmark UK Finland

[1.000 NOK] 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020

Gross written premiums

1 415 046 1 382 605 1 820 477 1 607 426 918 677 972 504 1 618 145 1 327 792 178 227 225 996 5 950 571 5 516 322

Gross premiums earned

1 398 303 1 443 433 1 749 251 1 605 185 880 189 982 997 1 460 516 1 130 990 257 817 216 957 5 746 076 5 379 562

Gross claims incurred

(1 088 567) (1 170 485) (1 038 146) (1 269 108) (904 643) (1 105 963) (1 237 627) (722 110) (199 414) (156 954) (4 468 397) (4 424 620)

Earned premiums, net of reinsurance

1 245 353 1 292 632 1 512 322 1 401 905 761 435 861 121 1 170 932 863 837 230 694 194 018 4 920 737 4 613 513

Other insurance-related income

3 978 4 986 367 457 532 443 2 183 8 588 1 656 5 035 8 716 19 510

Claims incurred, net of reinsurance

(1 021 827) (1 036 188) (949 203) (1 119 342) (631 268) (991 252) (1 027 591) (610 976) (180 174) (143 612) (3 810 063) (3 901 370)

Sales costs

(56 598) (66 448) (138 470) (141 004) (26 990) (22 321) (135 456) (97 390) (4 151) (4 169) (361 665) (331 332)

Administration costs

(49 020) (58 003) (75 851) (63 440) (46 935) (43 851) (74 629) (48 895) (10 179) (7 097) (256 615) (221 286)

Commission from reinsurers

16 501 45 189 59 961 24 598 21 061 (16 527) 28 107 23 880 5 071 4 467 130 701 81 607

Other insurance-related expenses

(14 868) (1 123) 788 (1 792) (13 816) (5 904) (8 386) (2 897) (1 129) (2 334) (37 410) (14 049)

Technical result

123 519 181 046 409 916 101 382 64 020 (218 290) (44 841) 136 146 41 787 46 307 594 401 246 591

Other income/expenses

(57 680) (63 837) (788) (479) 27 (1 166) 2 084 (1 787) (31) 295 (56 388) (66 973)

Net financial income

758 345 770 023 98 894 84 108 (1 430) 3 724 6 365 14 812 16 151 (7 468) 878 325 865 199

Profit before tax

824 184 887 232 508 021 185 011 62 618 (215 732) (36 392) 149 172 57 906 39 135 1 416 338 1 044 818

Claims ratio, net of reinsurance

82,1 % 80,2 % 62,8 % 79,8 % 82,9 % 115,1 % 87,8 % 70,7 % 78,1 % 74,0 % 77,4 % 84,6 %

Expense ratio, net of reinsuranc

7,2 % 6,1 % 10,2 % 12,8 % 6,9 % 9,6 % 15,5 % 14,2 % 4,0 % 3,5 % 9,9 % 10,2 %

Combined ratio, net of reinsurance

89,2 % 86,3 % 73,0 % 92,7 % 89,8 % 124,7 % 103,3 % 84,9 % 82,1 % 77,5 % 87,3 % 94,8 %

Claims ratio gross

77,8 % 81,1 % 59,3 % 79,1 % 102,8 % 112,5 % 84,7 % 63,8 % 77,3 % 72,3 % 77,8 % 82,2 %

Cost ratio gross

7,6 % 8,6 % 12,3 % 12,7 % 8,4 % 6,7 % 14,4 % 12,9 % 5,6 % 5,2 % 10,8 % 10,3 %

Combined ratio gross

85,4 % 89,7 % 71,6 % 91,8 % 111,2 % 119,2 % 99,1 % 76,8 % 82,9 % 77,5 % 88,5 % 92,5 %

¹ Defined as alternative performance measure (APM). APMs are described on www.protectorforsikring.no in document named APMs Protector Forsikring 2021.

² Does not include discontinued operations (change of ownership).

412021 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 6 PREMIUMS AND CLAIMS

[1.000 NOK]

Medical

expense

insurance

Income

protection

insurance

Workers’

compen-

sation

insurance

Motor

vehicle

liability

insurance

Other

motor

insurance

Marine,

aviation

and

transport

insurance

Fire and

other

damage to

property

insurance

General

liability

insurance

Miscel-

laneous

financial

loss

Direct

business

and

accepted

proportional

reinsurance

Group life Total

PREMIUM INCOME

1,2

Gross premiums written 191 850 133 044 321 103 796 692 1 284 936 16 118 2 347 274 533 234 1 835 5 626 087 324 484 5 950 571

Reinsurers’ share of gross premiums written (18 104) (13 405) (41 209) (101 514 ) (123 724) (1 561) (387 105) (105 759) (179) (792 561 ) (32 656) (825 217)

Premiums written for own account 173 746 119 639 279 894 695 178 1 161 212 14 557 1 960 169 427 475 1 656 4 833 526 291 828 5 125 354

PREMIUM EARNED

Gross premiums earned 189 866 134 054 402 972 738 336 1 237 243 15 611 2 210 048 495 910 1 792 5 425 832 320 244 5 746 076

Reinsurers’ share of gross premiums earned (18 104) (13 405) (41 209) (101 514) (123 724) (1 561) (385 790) (107 195) (179) (792 683) (32 656) (825 339)

Premiums earned for own account 171 762 120 649 361 763 636 822 1 113 518 14 050 1 824 258 388 715 1 613 4 633 149 287 588 4 920 737

CLAIMS

Gross claims incurred 202 823 172 123 489 194 1 017 701 563 636 940 1 148 739 571 386 158 4 166 701 301 696 4 468 397

Reinsurers’ share of gross claims incurred (19 796) (25 623) (127 028) (147 358) (54 818) (93) (112 382) (142 107) (16) (629 220) (29 113) (658 334)

Claims incurred, net of reinsurance 183 026 146 500 362 167 870 343 508 818 846 1 036 357 429 280 142 3 537 480 272 583 3 810 063

GROSS CLAIMS INCURRED

Occurred this year 174 783 144 809 316 250 830 255 755 438 7 249 1 345 749 426 195 592 4 001 320 300 446 4 301 766

Occurred previous years 28 040 27 315 172 944 187 446 (191 802) (6 310) (197 011) 145 192 (433) 165 381 1 250 166 631

Total for the accounting year 202 823 172 123 489 194 1 017 701 563 636 940 1 148 739 571 386 158 4 166 701 301 696 4 468 397

CLAIMS INCURRED NET OF REINSURANCE

Occurred this year 156 845 130 333 284 228 712 514 679 950 6 525 1 201 184 352 869 532 3 524 982 270 304 3 795 286

Occurred previous years 26 181 16 167 77 939 157 829 (171 132) (5 679) (164 827) 76 410 (390) 12 498 2 279 14 777

Total for the accounting year 183 026 146 500 362 167 870 343 508 818 846 1 036 357 429 280 142 3 537 480 272 583 3 810 063

TECHNICAL PROVISIONS GROSS

Provisions for unearned premiums 25 006 36 199 (115 749) 244 658 328 302 3 998 812 841 185 603 43 1 520 901 54 563 1 575 464

Provisions for claims 359 754 630 870 2 971 139 1 250 025 168 505 7 423 1 269 773 1 612 368 503 8 270 360 133 743 8 404 103

Technical provisions gross 384 760 667 069 2 855 389 1 494 683 496 808 11 420 2 082 614 1 797 971 546 9 791 260 188 306 9 979 567

TECHNICAL PROVISIONS NET OF REINSURANCE

Provisions for unearned premiums 22 031 32 471 (104 174) 220 192 295 472 3 598 722 306 157 333 38 1 349 268 49 107 1 398 375

Provisions for claims 320 983 535 852 1 166 387 1 037 467 151 655 6 680 1 120 594 973 105 453 5 313 176 118 731 5 431 908

Technical provisions net of reinsurance 343 014 568 323 1 062 213 1 257 659 447 127 10 278 1 842 901 1 130 437 491 6 662 444 167 838 6 830 282

Premiums comprise of insurance premiums in Norway, Sweden, Denmark, Finland and UK. See note 5 for segment information.

Defined as alternative performance measure (APM). APMs are described on www.protectorforsikring.no in document named APMs Protector Forsikring 2021.

General insurance Life insurance

42 2021 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 7 INTANGIBLE ASSETS

[1.000 NOK] 2021 2020

Costs as at 01.01. 157 255 123 589

Convention dierence (401) 1 262

Additions 33 919 32 441

Write-downs (37)

Costs as at 31.12 190 773 157 255

Accumulated depreciation at 31.12 (113 308) (99 361)

Write-downs 37

Intangible assets connected to discontinued operations 4 128 4 241

Net book value as at 31.12 73 336 53 690

Annual depreciationr 14 345 14 826

Intangible assets consist of in-house developed insurance systems and are depreciated on a straight-line basis over the expected useful life.

Expected useful life (years) 3-8 3-8

NOTE 8 PROPERTY AND TANGIBLE FIXED ASSETS

[1.000 NOK] Oce

machinery

Furniture and

fixtures

Art 2021 2020

Cost as at 01.01 56 433 24 177 216 80 826 80 912

Currency dierence (500) (234) (734) 1 051

Additions 18 342 555 18 897 9 231

Scrapping (21 408) (1 300) (22 708)

Disposals (10 368)

Cost as at 31.12 52 866 23 198 216 76 280 80 826

Accumulated depreciation at 31.12 (30 027) (12 260) (42 287) (50 382)

Net book value as at 31.12 22 839 10 939 216 33 994 30 444

Annual depreciation 11 899 3 254 15 153 13 951

Fixed assets are depreciated on a straight-line basis over the assets expected useful life. Artworks are not depreciated.

Expected useful life (years) 3-5 7

432021 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 7 INTANGIBLE ASSETS

[1.000 NOK] 2021 2020

Costs as at 01.01. 157 255 123 589

Convention dierence (401) 1 262

Additions 33 919 32 441

Write-downs (37)

Costs as at 31.12 190 773 157 255

Accumulated depreciation at 31.12 (113 308) (99 361)

Write-downs 37

Intangible assets connected to discontinued operations 4 128 4 241

Net book value as at 31.12 73 336 53 690

Annual depreciationr 14 345 14 826

Intangible assets consist of in-house developed insurance systems and are depreciated on a straight-line basis over the expected useful life.

Expected useful life (years) 3-8 3-8

NOTE 9 INVESTMENTS

[1.000 NOK] Book value

31.12.21

Fair value

31.12.21

Book value

31.12.20

Fair value

31.12.20

Shares in associated companies 138 377 174 128 - -

Shares 1 982 711 1 982 711 1 794 922 1 794 922

Bonds and other fixed-income securities 9 975 771 9 975 771 9 608 949 9 608 949

Financial derivatives 102 300 102 300 53 654 53 654

Bank deposits related to investments 2 103 501 2 103 501 2 030 646 2 030 646

Total financial assets at fair value 14 302 660 14 338 410 13 488 170 13 488 170

Financial assets discontinued operations 1 141 891 1 144 745 1 451 730 1 451 730

Financial assets continued operations 13 160 769 13 193 665 12 036 440 12 036 440

Financial derivatives 26 146 26 146 (61 402) (61 402)

Other financial liabilities - - (4 672) (4 672)

Total financial liabilities at fair value 26 146 26 146 (66 075) (66 075)

[1.000 NOK] Currency Fair value Identification no.

Norwegian companies

Amsterdam Commodities N.V. EUR 139 580

Atos SE EUR 62 110

BankNordik P/F DKK 201 477

Christian Berner Tech Trade AB SEK 16 575

Columbus A/S DKK 54 932

Danske Bank A/S DKK 104 986

Elanders AB Class B SEK 300 013

eWORK Group AB SEK 224 880

Fairfax Financial Holdings Lim CAD 72 108

Forsikringsakademiet DKK 50

FBD Holdings PLC EUR 218 209

Indus Holding AG EUR 109 942

JOST Werke AG EUR 9 809

Jyske Bank A/S DKK 263 739

Lassila And Tikanoja EUR 1 868

NRC Group ASA NOK 42 944 910686909

Origin Enterprises PLC ORD EUR 66 131

Projektengagemang Sweden AB se SEK 72 355

SAF Holland SA EUR 11 013

Scandi Standard AB SEK 9 989

Total shares 1 982 711

The share portfolio consist of shares listed on the stock exchange in Norway, Sweden, Denmark, Finland, Ireland and Canada.

Forsikringsakademiet is not listed. The share portfolio is diversified, but aected by ﬂuctuations in the stock market, in addition to the regular

development in each company.

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

Investment in associated companies

[1.000 NOK] Place of business Ownership Result Book value

31.12.21

B3 Consulting Group AB (publ.) Stockholm 25,7 % 11 766 138 377

44 2021 PROTECTOR FORSIKRING ANNUAL REPORT

BONDS AND OTHER FIXED-INCOME SECURITIES

[1.000 NOK] Fair value Duration

Government bonds etc. 460 384 0,87

Corporate bonds etc. 7 794 129 0,36

Bond fund 1 721 257 0,55

Total bonds and other fixed-income securities year 2021 9 975 771 0,42

- of this, subordinated loan capital in other companies 2021 315 693 0,26

Total bonds and other fixed-income securities year 2020 9 608 949 0,44

- of this, subordinated loan capital in other companies 2020

639 009 0,29

Average yield adjusted for currency hedging eect is 2.2 %. Average interest rate is future cash ﬂows (coupon disbursements and payments

on principal amount) discounted with expected market rate for the security concerned at the particular cash ﬂow points in time.

[1.000 NOK] Financial assets at fair value through profit or loss

Level 1 Level 2 Level 3 Total

Shares 502 943 1 479 768 1 982 711

Bonds and other fixed-income securities 9 975 771 9 975 771

Bank deposits 2 103 501 2 103 501

Derivatives:

Foreign exchange contracts 80 528 80 528

Options 21 773 21 773

Total assets year 2021 2 606 444 11 557 839 - 14 164 283

Total assets year 2020 2 279 059 11 209 059 52 13 488 170

[1.000 NOK] Financial liabilities at fair value through profit or loss Level 1 Level 2 Level 3 Total

Foreign exchange contracts (26 146) (26 146)

Total financial liabilities year 2021 (26 146) - (26 146)

Total financial liabilities year 2020 - (61 402) - (61 402)

[1.000 NOK] Financial liabilities at amortized cost Level 1 Level 2 Level 3 Total fair

value

Total book

value

Subordinated loan capital (1 384 664) (1 384 664) (1 384 664)

Total financial liabilities year 2021 (1 384 664) (1 384 664) (1 384 664)

Total financial liabilities year 2020 (1 473 035) (1 473 035) (1 473 035)

VALUATION OF FINANCIAL ASSETS AND LIABILITIES

The fair value of listed investments is based on the current sales price. Financial instruments measured at fair value are valued on a daily basis.

Directly observable prices in the market are used as far as possible. The valuations for the dierent types of financial instruments are based on

recognised methods and models.

Level 1: Financial instruments valued on the basis of quoted prices for identical assets in active markets

This category encompasses listed equities that over the previous three months have experienced average daily trading equivalent to

approximately NOK 20 million or more. Based on this, the equities are regarded as suciently liquid to be included at this level. Bonds,

certificates or equivalent instruments issued by national governments are generally classified as level 1.

Level 2: Financial instruments valued on the basis of observable market information not covered by level 1

This category encompasses financial instruments that are valued on the basis of market information that can be directly observable or

indirectly observable. Market information that is indirectly observable means that the prices can be derived from observable related markets.

Level 2 includes shares or equivalent equity instruments for which market prices are available, but where the volume of transactions is too li-

mited to fulfil the criteria in level 1. Shares in this level will normally have been traded during the last month. Bonds and equivalent instruments

are generally classified in this level. Foreign exchange derivatives are classified as level 2. Fund investments are generally classified as level 2.

Level 3: Financial instruments valued on the basis of information that is not observable in accordance with level 2

If one or more of the key parameters in a valuation model is not based on observable market data, the instrument must be reported in this

category.

452021 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 10 RECEIVABLES

[1.000 NOK] 2021 2020

Receivable tax 17 821 26 851

External claims handlers 37 845 10 545

Other receivables 39 591 74 875

Total 95 258 112 271

NOTE 12 PREPAID EXPENSES AND DEFERRED INCOME

[1.000 NOK] 2021 2020

Prepaid expenses 218 579 273 627

Accrued unbilled premium 243 955 231 666

Total 462 534 505 293

NOTE 11 RESTRICTED BANK DEPOSITS

[1.000 NOK] 2021 2020

Restricted bank deposits in connection with claims settlement 14 884

Employee withholding tax 8 769 8 452

Total 8 769 23 337

46 2021 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 13 SHARE CAPITAL AND SHAREHOLDER INFORMATION

Share capital consists of: No.of shares Face value Capital

A-shares (each share has one vote) 82 500 000 1 82 500 000

Protector Forsikring ASA has 2 248 shareholders at 31.12.2021.

List of the 20 major shareholders at 31.12.2021 No.of shares Ownership share

in percent

Awc AS 8 370 828 10,1 %

Stenshagen Invest AS 7 526 353 9,1 %

Verdipapirfond Odin Norden 6 367 205 7,7 %

Citibank Europe Plc 5 025 410 6,1 %

Verdipapirfondet Alfred Berg Gamba 3 850 053 4,7 %

Hvaler Invest AS 2 811 809 3,4 %

Clearstream Banking S.A. 2 510 639 3,0 %

Artel AS 1 800 000 2,2 %

Verdipapirfondet Alfred Berg Norge 1 676 386 2,0 %

Mp Pensjon Pk 1 533 301 1,9 %

Pershing Llc 1 513 303 1,8 %

Utmost Paneurope Dac 1 487 000 1,8 %

Danske Bank AS 1 159 321 1,4 %

Verdipapirfondet Alfred Berg Aktiv 1 141 128 1,4 %

Verdipapirfondet Nordea Norge Verdi 1 112 327 1,3 %

State Street Bank And Trust Comp 1 012 327 1,2 %

Johan Vinje As 937 841 1,1 %

Vevlen Gård As 937 454 1,1 %

Aat Invest As 900 000 1,1 %

Avanza Bank AB 858 890 1,0 %

Total 52 531 575 63,7 %

Protector Forsikring ASA 128 031 0,2 %

Other shareholders 29 840 394 36,2 %

Total number of shares 82 500 000 100,0 %

Shares owned by the board of directors and

their close relations, together with shares

owned by other senior executives and their

close relations at 31.12.2021 Identification No.of shares

Ownership share

in percent

Reeco AS Deputy Chairman, Arve Ree 600 000 0,7 %

Alsøy Invest AS Chairman of the Board, Jostein Sørvoll 502 751 0,6 %

Ditlev de Vibe Vanay Chief Financial Ocer 271 503 0,3 %

Hans Didring Deputy CEO 258 593 0,3 %

Henrik Golfetto Høye CEO 222 171 0,3 %

Steel City AS Board member, Kjetil Andreas Garstad 196 706 0,2 %

Dag Marius Nereng Chief Investment Ocer 107 571 0,1 %

Øvre Gjøvik Gård AS Deputy Chairman, Arve Ree 90 061 0,1 %

Leonard Bijl IT Director 7 340 0,0 %

Kjetil Andreas Garstad Board member 2 130 0,0 %

Fredrik Landelius Country Manager Sweden 1 843 0,0 %

Anders Blom Monberg Country Manager Denmark 1 768 0,0 %

Mathews Ambalathil Employees' representative 791 0,0 %

Stuart Winter Country Manager UK 568 0,0 %

Fredrik Haldor Øyan Deputy employees' representative 568 0,0 %

Total 2 264 364 2,7 %

472021 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 13 SHARE CAPITAL AND SHAREHOLDER INFORMATION

Share capital consists of: No.of shares Face value Capital

A-shares (each share has one vote) 82 500 000 1 82 500 000

Protector Forsikring ASA has 2 248 shareholders at 31.12.2021.

List of the 20 major shareholders at 31.12.2021 No.of shares Ownership share

in percent

Awc AS 8 370 828 10,1 %

Stenshagen Invest AS 7 526 353 9,1 %

Verdipapirfond Odin Norden 6 367 205 7,7 %

Citibank Europe Plc 5 025 410 6,1 %

Verdipapirfondet Alfred Berg Gamba 3 850 053 4,7 %

Hvaler Invest AS 2 811 809 3,4 %

Clearstream Banking S.A. 2 510 639 3,0 %

Artel AS 1 800 000 2,2 %

Verdipapirfondet Alfred Berg Norge 1 676 386 2,0 %

Mp Pensjon Pk 1 533 301 1,9 %

Pershing Llc 1 513 303 1,8 %

Utmost Paneurope Dac 1 487 000 1,8 %

Danske Bank AS 1 159 321 1,4 %

Verdipapirfondet Alfred Berg Aktiv 1 141 128 1,4 %

Verdipapirfondet Nordea Norge Verdi 1 112 327 1,3 %

State Street Bank And Trust Comp 1 012 327 1,2 %

Johan Vinje As 937 841 1,1 %

Vevlen Gård As 937 454 1,1 %

Aat Invest As 900 000 1,1 %

Avanza Bank AB 858 890 1,0 %

Total 52 531 575 63,7 %

Protector Forsikring ASA 128 031 0,2 %

Other shareholders 29 840 394 36,2 %

Total number of shares 82 500 000 100,0 %

NOTE 15 TAXES

[1.000 NOK] 2021 2020

THIS YEAR’S TAXES ARE DIVIDED BETWEEN

Payable tax 271 744 158 882

Correction previous years (12 007) (2 402)

Change in deferred tax (2 890) 21 322

Tax discontinued operations 14 569 17 055

Total tax continued operations 242 278 160 748

Computation of this years tax

Profit before tax 1 498 335 1 156 217

Other comprehensive income (37 515) 3 159

Permanent dierences (483 181) (438 745)

Changes in temporary dierences 11 560 (86 007)

Basis for the tax expense of the year 989 199 634 624

Payable tax 25% 247 300 158 656

Payable tax foreign operations 24 444 226

Payable tax from previous years (12 007) (2 402)

Payable tax 259 737 156 480

Temporary dierences 2021 2020 Changes

Fixed assets (3 579) (3 225) 355

Receivables (897) (904) (7)

Gain and loss account 1 264 2 065 801

Financial assets 138 870 108 729 (30 141)

Technical provisions 350 669 409 114 58 445

Pension liabilities - (17 892) (17 892)

Net temporary dierences 486 326 497 887 11 560

Deferred tax 25 % 121 582 124 472 (2 890)

Deferred tax/ deferred tax assets in the balance sheet (121 582) (124 472) 2 890

NOTE 14 PENSIONS

The company’s pension schemes meet the requirements of the law.

For employees in Norway, the pension scheme has previously been a defined benefit scheme. It was discontinued in 2015 and all employees

in Norway are now part of a defined contribution scheme where the contribution to the defined contribution pension is 5% of the defined

contribution basis between 1 and 7.1 G (G = the basic amount in the National Insurance Scheme), and 8% of the defined contribution basis

between 7.1 and 12 G.

In Sweden, the contribution to the defined contribution pension amounts to 4.5% of the salary up to 7.5 basic income amounts (Income base

amount, amounted to 68,200 in 2021) and 30% of the salary beyond this. Salary above MSEK 1,8 is not a part of pension basis. The UK oers

a defined contribution pension plan with Royal London to all eligible employees. The deposits amount to between 4% and 15% of the salary.

In Denmark, the contribution to the defined contribution pension is 15% of salary, and in Finland the contribution to the defined contribution

pension is 17.65% of salary.

The former CEO had an agreement on a top pension. In total, this scheme constituted a pension obligation of

NOK 15 million as of 31.12.2020. The amount, including accrued provisions in 2021, a total of NOK 16.7 million, has been paid out as a lump

sum in according to the pension agreement.

48 2021 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 16 OTHER LIABILITIES

[1.000 NOK] 2021 2020

Payables, operations 41 043 29 721

Payables, claims 32 341 13 363

Liabilities in connection to direct insurance 73 384 43 084

Reinsurance yet to be settled 2 238 317 934 027

Liabilities in connection to reinsurance 2 238 317 934 027

Allocation of employers contribution 11 403 11 800

Advance tax deduction 12 372 14 530

Unsettled within securities trades 4 672

Other liabilities 262 783 219 475

Other liabilities 286 557 250 477

Financial derivatives 26 146 61 402

Total liabilities 2 624 404 1 288 990

The company has no secured liabilities.

NOTE 17 ACCRUED EXPENSES AND DEFERRED INCOME

[1.000 NOK] 2021 2020

Bonus 209 931 126 342

Accrued vacation pay 30 890 28 666

Deferred income 230 790 211 302

RTV tax 46 019 39 649

Other accrued expenses 11 287 9 421

Total 528 917 415 381

RECONCILIATION OF TAX

[1.000 NOK] 2021 2020

Profit before taxes 25% 374 584 289 054

Permanent dierences 25% (120 795) (109 686)

Corrected tax previous years (12 007) (2 581)

Net paid tax for companies abroad 24 444 226

Calculated tax 266 226 177 013

Tax on other comprehensive income (9 379) 790

Total tax according to income statement 256 847 177 803

Tax discontinued operations 14 569 17 055

Total tax continued operations 242 278 160 748

492021 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 18 SALES EXPENSES

[1.000 NOK] 2021 2020

Internal payroll expenses 139 729 129 681

Commissions 221 935 201 651

Total 361 665 331 332

in % of overdue premium 6,1 % 6,0 %

NOTE 19 INSURANCERELATED ADMINISTRATIVE EXPENSES

[1.000 NOK] 2021 2020

Depreciations 29 498 28 124

Salary- and pensions costs (note 20) 594 521 555 149

Oce costs 41 223 39 589

Remunerations 24 348 30 587

Claims handling costs (transferred to gross claims paid) (301 723) (299 177)

Internal sales expenses (139 729) (129 681)

Internal administrative costs (66 511) (64 373)

Other insurance-related administrative expenses in discontinued operations 74 988 61 070

Total 256 615 221 286

[1.000 NOK] Auditing remuneration 2021

2020

Auditing (inclusive VAT) 1 335 1 959

Other certification services (including VAT) 27

Services regarding tax (inclusive VAT) 62 323

Other services outside auditing (inclusive VAT) 879 151

Total 2 304 2 432

NOTE 20 LABOUR EXPENSES, PENSIONS, NUMBER OF EMPLOYEES

[1.000 NOK] 2021 2020

Salaries 332 190 329 259

Bonus 124 449 102 296

Fees to the Board of Directors, Compensation Committee, Nomination Committee, Audit

Committee 2 995 2 826

Defined benefit pension costs 925 1 342

Defined contribution pension costs 27 276 24 522

Social security tax 82 744 68 617

Other payments 23 943 26 287

Total 594 521 555 149

Number of employees 2021 2020

Number of employees at 31.12. 411,0 427,0

Number of man-labour years at 31.12. 400,0 432,1

Average number of employees at 31.12. 415,8 408,9

Average number of man-labour years at 31.12. 406,9 420,9

50 2021 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 21 REMUNERATIONS TO SENIOR EXECUTIVES

[1.000 NOK]

Salaries

Variable

pay

Other

remu-

nerations

Paid-up

pension

premium

Total remu-

ne-rations

Senior executives

Sverre Bjerkeli Former CEO (Ended 04/09/21)

8 203 5 227 19 969 54 30 453

Henrik Golfetto Høye, CEO 4 675 3 069 11 924 75 19 743

Hans Didring, Deputy CEO 5 028 3 996 11 933 410 21 368

Ditlev De Vibe Vanay, CFO 3 166 1 432 4 73 4 674

Leonard Bijl , IT director 2 572 1 175 4 73 3 825

Dag Marius Nereng, CIO 3 350 1 034 6 74 4 464

Lars Krisitiansen, Country Manager Norway 1 819 72 4 72 1 967

Fredrik Landelius, Country Manager Sverige 1 863 720 11 415 3 010

Anders Blom Monberg, Country Manager Danmark 2 528 0 7 253 2 788

Stuart Winter, Country Manager UK 2 957 812 17 399 4 185

Total 36 162 17 536 40 882 1 898 96 478

Long-term bonus scheme

[1.000 NOK]

Number of

synthetic shares

allocated in 2021

Number of

synthetic shares

paid out in 2021

Holdings of

synthetic shares as

of 31.12.2021

Senior executives

Sverre Bjerkeli Ex CEO (Quit 04/09/21)

163 897 61 158 122 196

Henrik Golfetto Høye, CEO 95 070 35 934 74 946

Hans Didring, Deputy CEO 122 164 47 651 98 365

Ditlev De Vibe Vanay, CFO 54 953 16 787 38 167

Leonard Bijl , IT-Director 40 621 13 783 30 946

Dag Marius Nereng, CIO 26 782 12 040 24 437

Lars Krisitiansen, Country Manager Norway 4 195 839 3 356

Fredrik Landelius, Country Manager Sverige 22 503 8 588 18 471

Anders Blom Monberg, Country Manager Denmark

Stuart Winter, Country Manager UK 19 541 8 329 28 895

Total 549 724 205 109 439 779

¹ Other remunerations comprises of company car, telephone, insurance and other contractual benefits. Other benefits for Henrik Høye and

Hans Didring include the value of 200,000 shares in Protector Forsikring transferred on 1.1.2021 without consideration as part of a 3-year

incentive scheme..

Includes payment of Tophat pension and severance pay.

Paid out bonus long term bonus plan.

Guidelines for salaries and other remuneration as well as a report on remuneration to senior executives are published on the company’s web-

site www.protectorforsikring.no.

512021 PROTECTOR FORSIKRING ANNUAL REPORT

[1.000 NOK] ¹ Remunerations

The board

Jostein Sørvoll, Chairman of the board 590

Arve Ree, Deputy Chairman 500

Else Bugge Fougner, Board member 330

Kjetil Andreas Garstad, Board member 438

Randi Helene Røed, Board member 448

Mathews Ambalathil, Employees' representative 150

Kristine Røkeberg Nilsen, Employees' representative 150

Total 2 605

Nomination Committee

Per Ottar Skaaret, Chairman 48

Andreas Mørk, member 38

Vegard Søraunet, member 38

Total 123

¹ Remunerations paid out in accounting year 2021.

There were no loans granted or guarantees given to senior executives, other close related parties or members of governing bodies.

NOTE 22 NET FINANCIAL INCOME AND EXPENSES FROM FINANCIAL ASSETS

[1.000 NOK] 2021 2020

Net financial income from financial assets

Income from investments in associated companies 11 766

Interest income 208 947 264 910

Dividend shares 151 494 12 325

Unrealised gains/losses on financial assets (23 724) 616 828

Gains/losses from realisation of financial assets 674 441 141 262

Administrations expenses on financial assets (68 390) (65 773)

Net financial income 954 534 969 552

Financial income discontinued operations 76 208 104 353

Financial income continued operations 878 325 865 199

NET FINANCIAL INCOME DIVIDED BY ASSET CLASS

Income from investments in associated companies 11 766

Interest income from financial assets at fair value through profit or loss 208 947 264 910

Dividend 151 494 12 325

Net gains / (loss) from shares 566 584 432 975

Net gains / (loss) from bonds and other fixed-income securities 68 850 347 197

Net gains / (loss) from foreign exchange contracts 15 283 (22 081)

Administration expenses (68 390) (65 773)

Total net income and gains/ (loss) from financial assets at fair value through profit or loss 954 534 969 552

Financial income discontinued operations 76 208 104 353

Financial income continued operations 878 325 865 199

52 2021 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 23 EARNINGS PER SHARE

Earnings per share is calculated by dividing the profit for the year assigned to the company’s shareholders at a weighted average number of

outstanding ordinary shares throughout the year, net of treasury shares.

[1.000 NOK] 2021 2020

Profit for the year assigned to the company’s shareholders 1 203 973 981 573

Weighted average number of shares 82 351 250 81 850 429

Earnings per share 14,62 11,99

Earnings per share continued operations [1.000 NOK] 2021 2020

Profit for the year assigned to the company’s shareholders 1 136 554 887 230

Weighted average number of shares 82 351 250 81 850 429

Earnings per share 13,80 10,84

NOTE 24 SOLVENCY POSITION

The company calculates solvency margin using standard formula. Solvency margin is ratio of the company’s eligible solvency capital to its

solvency capital requirement.

Solvency capital can be classified into three tiers. Solvency II regulations define if capital instruments belong to tier 1, 2 or 3 and any limits

which apply for use of the capital in dierent tiers for coverage of solvency capital requirement. The company had no capital in tier 3 at

31.12.2021.

Available and eligible own fund

[1.000 NOK]

2021 2020

BASIC OWN FUNDS AS FORESEEN IN ARTICLE 68 IN THE ANEX OF 21ST DECEMBER 2015 REGULATION NR. 1807 REGARDING

SUPLEMENTING RULES TO SOLVENCY II REGULATION

Tier 1 - unrestricted 2 792 448 2 462 858

Tier 1 - restricted 493 348 349 734

Tier 2 1 008 445 1 212 838

Total basic own funds 4 294 241 4 025 430

The company’s own funds consist of basic own funds only. Basic own funds consist of statutory equity adjusted for valuation dierence

between Solvency II and statutory value of assets and liabilities plus subordinated loan capital. Unrestricted T1 capital constituted 65 % (61 %)

of the total capital.

Tier 1 restricted capital constituted 11% (9 %). Tier 2 capital constituted 23% (30%). The company has no Tier 3 capital.

AVAILABLE OWN FUNDS TO MEET THE SOLVENCY CAPITAL REQUIREMENT SCR

Tier 1 - unrestricted 2 792 448 2 462 858

Tier 1 - restricted 493 348 349 734

Tier 2 1 008 445 1 212 838

Total available own funds to meet SCR 4 294 241 4 025 430

AVAILABLE OWN FUNDS TO MEET THE MINIMUM CAPITAL REQUIREMENT MCR

Tier 1 - unrestricted 2 792 448 2 462 858

Tier 1 - restricted 493 348 349 734

Tier 2 1 008 445 1 212 838

Total available own funds to meet the MCR 4 294 241 4 025 430

ELIGIBLE OWN FUNDS TO MEET THE SOLVENCY CAPITAL REQUIREMENT SCR

Tier 1 - unrestricted 2 792 448 2 462 858

Tier 1 - restricted 493 348 349 734

Tier 2 1 008 445 1 001 427

Total eligible own funds to meet the SCR 4 294 241 3 814 019

ELIGIBLE OWN FUNDS TO MEET THE MINIMUM CAPITAL REQUIREMENT MCR

Tier 1 - unrestricted 2 792 448 2 462 858

Tier 1 - restricted 493 348 349 734

Tier 2 187 295 180 257

Total eligible own funds to meet the MCR 3 473 092 2 992 849

532021 PROTECTOR FORSIKRING ANNUAL REPORT

Protector Forsikring has exposure to insurance, market, credit, counterparty and operational risks.

SOLVENCY CAPITAL REQUIREMENT SCR 2021 2020

Market risk 971 189 843 072

Counterparty default risk 93 718 102 368

Lifeinsurance risk 1 074 1 198

Health underwriting risk 637 567 989 659

Non-life underwriting risk 1 653 398 1 468 235

Diversification (1 025 436) (1 137 872)

Basic Solvency Capital Requirement 2 331 511 2 266 660

Operational risk 261 105 255 760

Loss-absorbing capacity of deferred taxes (511 555) (519 565)

Total solvency capital requirement 2 081 060 2 002 854

Solvency capital requirement is calculated using standard formula with a 99.5% probability that total loss during 12 months will not exceed

calculated capital requirement.

[1.000 NOK] 2021 2020

MINIMUM CAPITAL REQUIREMENT

Linearly calculated MCR 1 076 252 1 128 543

Upper limit for MCR 936 480 901 284

MCR ﬂoor 520 267 500 714

Combined MCR 936 480 901 284

Absolute ﬂoor of the MCR 36 073 41 048

Minimum capital requirement 936 480 901 284

Minimum capital requirement is calculated using standard formula with a 85.0% probability that total loss during 12 months will not exceed

calculated capital requirement. Minimum capital requirement is limited to minimum 25% and maximum 45% of the calculated SCR.

RATIO OF ELIGIBLE OWN FUNDS TO SCR 206 % 190 %

RATIO OF ELIGIBLE OWN FUNDS TO MCR 371 % 332 %

Assets and liabilities are valued at market value in the Solvency II balance sheet, which may lead to dierences from the balance sheet re-

cognized in accordance with accounting principles. The dierence between the balance sheet and the Solvency II-balance mainly due to:

• Insurance liabilities are discounted in the Solvency II balance sheet, while they are entered without discounting in the accounts.

• In the accounts, the premium provisions correspond to unearned premiums, while in the Solvency II balance sheet the premium provisions

are the best estimate of future liabilities. Unearned premiums are therefore multiplied by the expected future combined ratio with deduc-

tions for expected profits in future premiums before discounting.

• Solvency II risk margins is not included in the fiscal balance

• Provisions for the guarantee scheme are classified as a liability under the category «other liabilities» in the Solvency II balance sheet, but as

equity in the accounting balance sheet.

• Dierent valuation of deferred tax due to dierences between accounting values and Solvency II values.

NET TECHNICAL PROVISIONS BOOK VALUE SOLVENCY II

Premium provisions 1 398 375 1 035 529

Claims provisions 5 794 364 5 626 561

Risk marging 405 170

Total assets 7 192 739 7 067 261

* Including discontinued operations (COI)

54 2021 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 25 SUBORDINATED LOAN CAPITAL

The company has four subordinated loans at MNOK 400, MNOK 350, MNOK 500 and 350 MNOK. Subordinated loan capital is classified

as a liability in the balance sheet and is measured at amortised cost. In on of the loans with a nominal value of NOK 350 million, we have

repurchased NOK 208 million of nominal value, and it appears in the balance sheet as a netting of NOK 142 million.

SUBORDINATED LOAN MNOK 400

Name Protector Forsikring ASA 17/47 FRN C SUB

Ticker PROTCT03

Nominal value MNOK 400

Interest rate 3-month NIBOR + 290 bp p.a.

Issue date 31.03.2017

Due date 31.03.2047

Callable Yes

SUBORDINATED LOAN MNOK 350

Name Protector Forsikring ASA 17/PERP FRN C HYBRID

Ticker PROTCT04

ISIN NO0010790066

Nominal value MNOK 350

Interest rate 3-month NIBOR + 500 bp p.a.

Issue date 31.03.2017

Due date Perpetual

Callable Yes

SUBORDINATED LOAN MNOK 500

Name Protector Forsikring ASA 20/50 FRN STEP C SUB

Ticker PROTCT05

ISIN NO0010914443

Nominal value MNOK 500

Interest rate 3-month NIBOR + 350 bp p.a.

Issue date 16.12.2020

Due date 16.12.2050

Callable Yes

SUBORDINATED LOAN MNOK 350

Name Protector Forsikring ASA 21/PERP FRN C HYBRID

Ticker

ISIN NO0011170045

Nominal value MNOK 350

Interest rate 3-month NIBOR + 475 bp p.a.

Issue date 14.12.2021

Due date Perpetual

Callable Yes

552021 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 27 DISCONTINUED OPERATIONS

Protector decided in 2018 to exit the COI market due to the product’s recent years’ weak technical performance, and due to

the significant uncertainty related to the product’s future premium development and profitability. After the decision to exit

the COI market, COI is defined as “discontinued operations” in the accounts. Net profit and assets and liabilities associated

with COI are presented on separate lines as discontinued operations.

Protector has entered into a 50% quota share agreement (reinsurance) covering all historical business written until 1 July

2020.

Premium income in 2021 is due to some continued agreements with real estate brokers. These agreements are terminated as

from January 1st 2022 when the new Real Property Sale Act enters into force.

Income statement

[1.000 NOK] 2021 2020

PREMIUM INCOME

Gross premiums earned 188 736 240 370

Reinsurers’ share of earned premiums (18 822) (71 494)

Earned premiums, net of reinsurance 169 914 168 876

CLAIMS

Gross claims incurred (202 182) (226 229)

Reinsurers’ share of claims incurred 47 456 76 109

Claims incurred, net of reinsurance (154 726) (150 121)

OPERATING EXPENSES 1 239 3 209

Other insurance related expenses (5 631) (7 800)

Technical result 10 795 14 164

Total net financial income 76 208 104 353

Other income/expenses (5 015) (7 118)

Non-technical result 71 194 97 235

Profit before tax 81 989 111 399

Tax (14 569) (17 055)

Profit from discontinued operations 67 419 94 344

NOTE 26 CONTINGENT LIABILITIES

Protector has no contingent liabilities at 31.12.2021.

56 2021 PROTECTOR FORSIKRING ANNUAL REPORT

Earnings per share discontinued operations

[1.000 NOK] 2021 2020

Profit for the year assigned to the company’s shareholders 67 419 94 344

Weighted average number of shares 82 351 250 81 850 429

Earnings per share 0,82 1,15

Assets discontinued operations

[1.000 NOK] 2021 2020

Intangible assets 4 128 4 241

Financial assets 1 141 891 1 451 730

Reinsurers' share of gross technical provisions 274 003 391 309

Receivables 24 133 30 128

Bank 3 892 18 337

Assets discontinued operations 1 448 049 1 895 744

Liabilities discontinued operations

[1.000 NOK] 2021 2020

Provisions for claims 636 460 773 174

Liabilities related to reinsurance 197 324 338 395

Liabilities discontinued operations 833 784 1 111 569

2021 PROTECTOR FORSIKRING ANNUAL REPORT 57

DECLARATION BY THE

MEMBERS OF THE

BOARD AND THE CEO

We confirm, to the best of our knowledge, that the financial statements for the period 1st of January to 31st of December 2021

have been prepared in accordance with current applicable accounting standards, and give a true and fair view of the assets,

liabilities, financial position and profit or loss of the entity takes as a whole.

We also confirm that the Directors’ Report includes a true and fair review of the development and performance of the

business and the position of the entity, together with a description of the principal risks and uncertainties facing the entity.

Oslo, 10 March 2021

The Board of Directors of Protector Forsikring ASA

Translation - not to be signed

Jostein Sørvoll

(Chairman)

Arve Ree

(Deputy Chairman)

Else Bugge Fougner Kjetil Garstad

Randi Helene Røed Line Engelmann-Kokkim Mathews Ambalathil Henrik Golfetto Høye

(CEO)

Earnings per share discontinued operations

[1.000 NOK] 2021 2020

Profit for the year assigned to the company’s shareholders 67 419 94 344

Weighted average number of shares 82 351 250 81 850 429

Earnings per share 0,82 1,15

Assets discontinued operations

[1.000 NOK] 2021 2020

Intangible assets 4 128 4 241

Financial assets 1 141 891 1 451 730

Reinsurers' share of gross technical provisions 274 003 391 309

Receivables 24 133 30 128

Bank 3 892 18 337

Assets discontinued operations 1 448 049 1 895 744

Liabilities discontinued operations

[1.000 NOK] 2021 2020

Provisions for claims 636 460 773 174

Liabilities related to reinsurance 197 324 338 395

Liabilities discontinued operations 833 784 1 111 569

58 2021 PROTECTOR FORSIKRING ANNUAL REPORT

AUDITOR’S REPORT

Statsautoriserte revisorer

Ernst & Young AS

Dronning Eufemias gate 6a, 0191 Oslo

Postboks 1156 Sentrum, 0107 Oslo

Foretaksregisteret: NO 976 389 387 MVA

Tlf: +47 24 00 24 00

www.ey.no

Medlemmer av Den norske

Revisorforening

A member firm of Ernst & Young Global Limited

INDEPENDENT AUDITOR'S REPORT

To the Annual Shareholders' Meeting of Protector Forsikring ASA

Opinion

We have audited the financial statements of Protector Forsikring ASA (the Company), which comprise the

balance sheet as at 31 December 2021, the income statement, statement of cash flows and statement of

changes in equity for the year then ended, and notes to the financial statements, including a summary of

significant accounting policies.

In our opinion, the financial statements comply with applicable legal requirements and give a true and fair

view of the financial position of the Company as at 31 December 2021 and its financial performance and

cash flows for the year then ended in accordance with the Norwegian Accounting Act and accounting

standards and practices generally accepted in Norway.

Our opinion is consistent with our additional report to the audit committee.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our

responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of

the financial statements section of our report. We are independent of the Company in accordance with

the requirements of the relevant laws and regulations in Norway and the International Ethics Standards

Board for Accountants’ International Code of Ethics for Professional Accountants (including International

Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in

accordance with these requirements. We believe that the audit evidence we have obtained is sufficient

and appropriate to provide a basis for our opinion.

To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit

Regulation (537/2014) Article 5.1 have been provided.

We have been the auditor of the Company for 5 years from the election by the general meeting of the

shareholders on 22.09.2017 for the accounting year 2017.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our

audit of the financial statements for 2021. These matters were addressed in the context of our audit of the

financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate

opinion on these matters. For each matter below, our description of how our audit addressed the matter is

provided in that context.

We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial

statements section of our report, including in relation to these matters. Accordingly, our audit included the

performance of procedures designed to respond to our assessment of the risks of material misstatement

of the financial statements. The results of our audit procedures, including the procedures performed to

address the matters below, provide the basis for our audit opinion on the financial statements.

Provision for claims outstanding

Basis for the key audit matter

As at 31 December 2021, gross provision for

Our audit response

We identified, assessed and tested internal

592021 PROTECTOR FORSIKRING ANNUAL REPORT

Independent auditor's report - Protector Forsikring ASA 2021

A member firm of Ernst & Young Global Limited

claims outstanding of MNOK 8 404 were

recognised in the accounts for continuing

operations, and MNOK 636 for discontinued

operations. Claims provisions are an estimate for

future claims for events incurred, but not finally

settled at the reporting date (IBNS). The balance

comprises provisions for claims incurred and

reported to the Company (RBNS), claims

incurred, but not reported (IBNR) and an estimate

for indirect unallocated loss adjustment expenses

(ULAE). The use of a model, projection of claims

history and determination of assumptions require

management to exercise judgment. Claims

provisions are sensitive for changes in

assumptions and therefore a key audit matter.

control related to claims provisions. We reviewed

the Company’s processes and methods for

calculating claims reserves across the insurance

products, including the collection of the data basis

for the calculations. Our audit included a

comparison of models and assumptions applied

by the Company in relation to industry standards

and regulatory requirements. Based on the

Company’s data basis, we performed our own

calculations of the reserves for a sample of the

insurance segments with higher uncertainty and

compared this with the Company’s estimates.

Notes 1 and 2 have details on principles and

estimation uncertainty concerning claims

provisions, and the claims provisions are specified

in notes 3 and 6.

Reinsurance share of claims provisions

Basis for the key audit matter

The Company has a comprehensive reinsurance

programme, and the reinsurance share of gross

claims provisions as at 31 December 2021

constitutes MNOK 2 972 for continuing

operations, and MNOK 274 for discontinued

operations. Due to the extent and complexity of

the reinsurance contracts, and the degree of

judgment related to the determination of the

reinsurance share of gross claims provisions, this

was a key audit matter.

Our audit response

We reviewed reinsurance contracts for

completeness and validity, and we assessed the

Company’s applied accounting principles related

to various types of reinsurance contracts. We

identified, evaluated and tested internal controls

related to the accounting and measurement of

reinsurance claims. We reviewed the recognition

of the reinsurance share of gross provision for

claims outstanding by considering reported claims

against incurred claims and compared them with

the terms in the reinsurance agreements. The

Company’s accounting principles and note 6 have

details on the reinsurance share of gross claims.

Valuation of financial assets measured at fair value

Basis for the key audit matter

As at 31 December 2021, financial assets

measured at fair value constitute MNOK 14 164,

of which MNOK 11 558 are unlisted or less liquid

financial instruments. Assets are measured at fair

value on the basis of assumptions that are either

directly or indirectly observable in the market. As

unlisted or less liquid financial instruments are

significant for the financial statements, and

because of the degree of judgment involved, this

was a key audit matter.

Our audit response

We assessed the design and tested internal

controls related to the valuation process, including

management’s process for determining the

assumptions. We reviewed the valuation of a

sample of financial assets against external

sources, including stock exchange prices,

valuations obtained from independent external

parties or other external information. Notes 4 and

9 have information on financial assets measured

at fair value.

60 2021 PROTECTOR FORSIKRING ANNUAL REPORT

Independent auditor's report - Protector Forsikring ASA 2021

A member firm of Ernst & Young Global Limited

Other information

Other information consists of the information included in the annual report other than the financial

statements and our auditor’s report thereon. Management (the board of directors and the general

manager) is responsible for the other information. Our opinion on the financial statements does not cover

the other information, and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information,

and, in doing so, consider whether the board of directors’ report, the statement on corporate governance

and the statement on corporate social responsibility contain the information required by applicable legal

requirements and whether the other information is materially inconsistent with the financial statements or

our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the

work we have performed, we conclude that there is a material misstatement of this other information or

that the information required by applicable legal requirements is not included, we are required to report

that fact.

We have nothing to report in this regard, and in our opinion, the board of directors’ report, the statement

on corporate governance and the statement on corporate social responsibility are consistent with the

financial statements and contain the information required by applicable legal requirements.

Responsibilities of management for the financial statements

Management is responsible for the preparation and fair presentation of the financial statements in

accordance with the Norwegian Accounting Act and accounting standards and practices generally

accepted in Norway, and for such internal control as management determines is necessary to enable the

preparation of financial statements that are free from material misstatement, whether due to fraud or

error.

In preparing the financial statements, management is responsible for assessing the Company’s ability to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the

going concern basis of accounting unless management either intends to liquidate the Company or to

cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are

free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that

includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an

audit conducted in accordance with ISAs will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the

aggregate, they could reasonably be expected to influence the economic decisions of users taken on the

basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional

scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to

fraud or error, design and perform audit procedures responsive to those risks, and obtain audit

evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not

detecting a material misstatement resulting from fraud is higher than for one resulting from error,

as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override

of internal control.

612021 PROTECTOR FORSIKRING ANNUAL REPORT

Independent auditor's report - Protector Forsikring ASA 2021

A member firm of Ernst & Young Global Limited

• Obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of expressing an

opinion on the effectiveness of the Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting

and, based on the audit evidence obtained, whether a material uncertainty exists related to

events or conditions that may cast significant doubt on the Company’s ability to continue as a

going concern. If we conclude that a material uncertainty exists, we are required to draw attention

in our auditor’s report to the related disclosures in the financial statements or, if such disclosures

are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained

up to the date of our auditor’s report. However, future events or conditions may cause the

Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the

disclosures, and whether the financial statements represent the underlying transactions and

events in a manner that achieves fair presentation.

We communicate with the board of directors regarding, among other matters, the planned scope and

timing of the audit and significant audit findings, including any significant deficiencies in internal control

that we identify during our audit.

We also provide the audit committee with a statement that we have complied with relevant ethical

requirements regarding independence, and to communicate with them all relationships and other matters

that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the board of directors, we determine those matters that were of

most significance in the audit of the financial statements of the current period and are therefore the key

audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public

disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should

not be communicated in our report because the adverse consequences of doing so would reasonably be

expected to outweigh the public interest benefits of such communication.

Oslo, 10 March 2022

ERNST & YOUNG AS

Finn Espen Sellæg

State Authorised Public Accountant (Norway)

(This translation from Norwegian has been prepared for information purposes only.)

2021 PROTECTOR FORSIKRING ANNUAL REPORT62

CORPORATE

GOVERNANCE

CORPORATE GOVERNANCE

The company’s principles for corporate governance shall

contribute to the highest possible value creation for

the shareholders over time, increased confidence in the

company through an open corporate culture and a good

reputation. The principles are set in accordance with the

Norwegian Code of Practice for Corporate Governance.

STATEMENT OF CORPORATE GOVERNANCE

The statement is in accordance with section 3-3b of the

Accounting Act and the Norwegian Code of Practice for

Corporate Governance. Protector complies with the Code

of Practice without significant deviations. The statement

below describes how the company complies with the 15

sections of the Code of Practice.

BUSINESS

The articles of association describe the company’s business

and objectives. Protector’s objective is to provide general

insurance and has a license to operate within all classes

except credit insurance and guarantee insurance.

The company’s P&C business includes the Nordic countries

and the United Kingdom. Priority market segments are the

corporate market, the public sector, as well as the market

for grouped insurance schemes. The insurances are sold

through selected insurance brokers and agents.

The Board sets goals, strategies and risk profile in

connection with the company’s annual budget process.

Evaluation of goals, strategies and risk profile is carried

out in connection with the management’s and the board’s

strategy work in May / June or when needed, for example in

the event of significant events or structural changes.

The company’s annual report gives a more detailed

description of the company’s objectives, business strategy

and business.

The Board of Directors has prepared ethical guidelines

and guidelines for social responsibility in accordance with

the company’s values and a sustainable value creation. The

core of the company’s guidelines for social responsibility

is the company’s responsibility for people, society and

the environment that are aected by the business. The

guidelines cover, among other things, human rights, anti-

corruption, employee relations, discrimination, as well as

environmental issues. This is described in more detail in the

statement of social responsibility.

SOLVENCY CAPITAL AND DIVIDENDS

The company has continuous focus on ensuring that the

solvency margin capital matches Protector’s objectives,

strategy and risk profile. The company will at all times

seek to optimize its capital while at the same time

maintain sucient capital to satisfy the regulatory capital

requirements, shareholders’ confidence and ﬂexibility for

growth and development.

The company’s goal is to maintain a solvency margin above

150 % (calculated according to Solvency II regulations).

Unless the need for capital dictates otherwise, it’s the

Board’s intention to distribute 20 - 80% of the profit for the

year after tax as an ordinary dividend. Final determination

will be based on the company’s result, capital requirements

including satisfactory buers and the necessary ﬂexibility

for growth and development in the company. Ordinary

dividends will, as a general rule, only be paid at a solvency

margin above 150%. With a solvency margin above 180%, the

board’s intention is to over time return surplus capital to the

shareholders in the form of special dividends or repurchases

of shares.

The Board prepares quarterly dividend assessments on the

basis of the most recently approved annual accounts.

The Board of Directors is authorized to decide on the

distribution of dividends. Such authorization is conditional

on the company having a dividend capacity in accordance

with the most recently approved annual accounts. An

authorization for the Board to distribute dividends will

give the company ﬂexibility and mean that the company,

based on dividend capacity in accordance with the most

recently approved annual accounts, can distribute several

dividends without having to convene an Extraordinary

General Meeting. Within the framework that follows from

the authorization and the Public Limited Liability Companies

Act, the Board decides whether the authorization is to be

used, whether it is to be used one or more times, the size of

the individual dividend, etc. The authorization is valid until

the Annual General Meeting in 2022, but no longer than

until 30 June 2022. The Board will propose to the Annual

General Meeting that the authorization is renewed.

The Board of Directors is authorized to repurchase up to

10% of the total number of shares in Protector Forsikring

ASA. The authorization is valid until the next Annual General

Meeting in 2022, however, so that it expires no later than

2019 PROTECTOR FORSIKRING ANNUAL REPORT 63

30 June 2022. The Board will propose to the Annual General

Meeting that the authorization is renewed. At the end of

2021, the company had 128,031 own shares.

The Board of Directors is authorized to increase the share

capital through new subscriptions for shares with a total

of up to 10% of the share capital divided into up to 10% of

the total outstanding shares, each with a nominal value

of NOK 1. The authorization may be used for one or more

share issues. The Board of Directors may decide to deviate

from the pre-emptive right of shareholders to subscribe

for shares pursuant to section 10-4 of the Public Limited

Liability Companies Act. The Board of Directors may decide

that payment for the shares shall be eected in assets other

than cash, or the right to subject the company to special

obligations pursuant to section 10-2 of the Public Limited

Liability Companies Act. The authorization also applies to

decisions to merge pursuant to section 13-5 of the Public

Limited Liability Companies Act. This authorization is valid

until the Annual General Meeting in 2022, however, no later

than 30 June 2022. The Board will propose to the Annual

General Meeting that the authorization is renewed.

The Board is authorized to raise subordinated loans and

other debt limited to NOK 2,500 million and under the

conditions stipulated by the Board. The authorization is valid

until the Annual General Meeting 2022, however, no later

than 30 June 2022. The Board will propose to the Annual

General Meeting that the authorization is renewed.

According to the Norwegian Code of Corporate

Governance, the authorization should be restricted to

defined purposes. The Board wants a mandate that gives

ﬂexibility, thus the recommendation is not followed.

EQUAL TREATMENT OF SHAREHOLDERS

The company has only one class of shares and all

shareholders are treated equally.

Existing shareholders have re-emption rights to subscribe

for shares in the event of an increase in capital, unless

the Board finds it expedient and in the interest of the

shareholders to waive this right. If the Board proposes to the

general meeting to waive this pre-emption right, then such

a proposal must be fully justified. If the board of directors

resolves to carry out an increase in share capital and waive

the pre-emption rights of existing shareholders on the basis

of a mandate granted to the board, the justification shall

be publicly disclosed in a stock exchange announcement

issued in connection with the increase in share capital. Any

transactions carried out by the company in its own shares

shall be carried out through the stock exchange whenever

possible.

The company is listed on the Oslo Stock Exchange under

the ticker PROT. The company has established rules for

trading in the company’s shares by primary insiders or close

associates of any such parties (defined as transactions that

involve shareholders, board members, executive managers

or auditor and close associates of these). There are also

insider rules for other employees in the company.

The company follows the principles for equal treatment

that are laid down in the Norwegian Code of Practice for

Corporate Governance.

FREELY NEGOTIABLE SHARES

There is no restriction on negotiability of the company’s

shares beyond the provisions of the Financial Institutions

Act.

GENERAL MEETINGS

Protector holds its Annual General Meeting (AGM) no later

than the end of June each year. All shareholders with a

known address receive written notice of the AGM by post,

sent out no later than 21 days before the AGM. The AGM

can be held as a physical or electronic meeting. If a physical

meeting is arranged, the shareholders have the right to

participate electronically, unless the Board finds that there

are objective reasons to refuse.

The notice calling the meeting and supporting papers are

published on the company’s website 21 days before the

general meeting. All shareholders are entitled to attend

general meetings, and arrangements are also made for

proxy voting. The company should to the extent possible,

prepare a form for the appointment of a proxy, which

allows separate voting instructions to be given for each

matter to be considered by the meeting and for each of the

candidates nominated for election.

The Chairman of the Board and the Chief Executive Ocer

shall be present at the meeting. The external auditor shall be

present in General Meetings if deemed necessary due to the

nature of the matters being processed. The Chairman of the

nomination committee shall be present in General Meetings

2021 PROTECTOR FORSIKRING ANNUAL REPORT64

when election and remuneration of board members are to

be considered. An independent chairman shall be elected to

conduct the meeting, the individual is not required to be a

shareholder.

NOMINATION COMMITTEE

Protector’s articles of association regulate the company’s

nomination committee, which has three members. The

shareholders at the general meeting elect the members of

the committee. The nomination committee is independent

of the company’s board of directors and management, and

its composition aims to ensure broad representation of

shareholder interests.

The nomination committee is responsible for proposing

candidates to the board of directors and the nomination

committee, and the remuneration of the members of

these bodies. The committee must give reasons for

their recommendations. The committee shall operate

in accordance with the Norwegian Code of Practice for

Corporate Governance.

THE BOARD OF DIRECTORS

According to the company’s articles of association the

board of directors shall consist of minimum 5 and maximum

9 directors including the number of deputy directors

decided by the general meeting. The company’s employees

shall appoint at least 1 member and one deputy director.

If a director elected by the employees resigns from the

company, the director shall resign from the board of

directors. The directors of the board of directors and the

deputy directors are elected for two – 2 – year terms. When

retiring there will be a drawing of lots among those having

served for an equal length of time.

The Chairman of the board and Deputy Chairman are

elected for one year at a time.

The company’s intention with the composition of the

company’s board is that the members are elected in light of

an evaluation of the company’s needs for expertise, capacity

and balanced decisions, and with an intention to ensure that

the board can perform independent of any special interests

and that the board can function eectively as a collegiate

body. Moreover, majority of the board members shall be

independent of the company’s executive management

and material business contacts. At least two of the board

members elected by shareholders shall be independent of

the company’s main shareholders.

The board of directors shall not include representatives of

the company’s executive management.

An assessment of independence shall take into

consideration whether the board member; has been

employed in the company, has share options in the

company, has cross relations with other board members or

general management, has close family links or otherwise

has represented or represents material business relations

with the company. Information about the individual board

member’s qualifications, capacity and independence

are given in the report. Moreover, note 13 to the annual

accounts states how many shares the individual shareholder

owns in the company. Members of the board are

encouraged to buy shares in the company.

The nomination committee’s proposals for individuals as

board members will be based on the above-mentioned

guidelines.

In the company’s opinion the current board of directors

satisfies the requirements set by the Norwegian Code

of Practice for Corporate Governance to the members’

independence of the company’s executive management and

material business relations.

THE WORK OF THE BOARD OF DIRECTORS

The duties of the Board

In accordance with Norwegian law, the board of directors

has the ultimate responsibility for the management at the

company and for supervising its day-to-day management

and activities in general. In addition to the mandatory

requirements, the board of directors shall operate in

accordance with the company’s written instructions for the

board. The instructions stipulate rules for administrative

procedure, confidentiality, competency and responsibility

for establishing a control system to ensure that the

company is run in accordance with relevant laws and

regulations. A deputy chairman shall be elected for the

purpose of chairing the board in the event that the chairman

cannot or should not lead the work of the board. In

accordance with its instructions, the board of directors shall,

to the extent it is necessary, agree to strategies, business

plans and budgets for the company. In addition, the board

shall ensure that the company has a good management with

a clear internal allocation of responsibilities and duties. In

this connection, a set of instructions has been prepared for

the CEO.

2021 PROTECTOR FORSIKRING ANNUAL REPORT 65

The company is generally reserved about transactions by

shareholders, board members, executive managers and

their close associates. To avoid damaging the company’s

reputation, the Board believes it essential to be open and

cautious about transactions that could be perceived as

doubtful in terms of the closeness between the parties. The

members of the board and management shall therefore

give the board by the chairman written notification if they

have significantly direct or indirect interests in transactions

undertaken by the company. In the case of not insignificant

transactions, the board shall ensure that there is a valuation

from an independent third party. The conclusion of all

agreements with related parties shall be considered by the

board.

The board shall ensure that agreements with related parties

are balanced and without a conﬂict of interest with the

company.

Board members and senior executives are obliged to make

the company aware of any significant interests they may

have in matters that the Board of Directors is to handle.

A member of the board of directors may not participate in

the discussion or decision of any matter which is of such

particular importance to himself or any related party that he

must be deemed to have a special and prominent personal

or financial interest in the matter. This provision is similarly

applicable to the CEO., cf. asal. § 6-27.

Each year, the board of directors agrees a concrete meeting

and work plan for the following year. The plan includes

strategy work, other relevant business problems and control

work. Further information about the work of the board of

directors is provided in the directors’ report.

The Board conducts an annual evaluation of its activities

and, on this basis, discusses improvements in the

organization and implementation of board work.

Board Committees

In accordance with the law, the Board has established a

compensation committee, an audit committee and a risk

committee. The committees consist of 3-4 board members

and are preparatory committees for the board and do not

have decision-making authority.

The Compensation Committee assists the Board in all

matters relating to the remuneration of the CEO. The

committee shall propose guidelines for the determination

of remuneration to the executive management and prepare

proposals for the board’s statement on the remuneration of

the executive management, which are presented annually to

the general meeting.

The members of the Compensation Committee are

independent of the company’s management.

The Audit Committee assists the Board by reviewing,

assessing and possibly proposing measures in relation to the

control environment, financial and operational reporting,

risk management / control and external and internal audit.

The main task of the risk committee is to prepare matters

within the risk area to be dealt with by the board, with

special attention to risk appetite and risk strategy, including

investment strategy. The committee shall contribute with

decision support related to the board’s discussion of the

company’s risk taking, financial forecasts and processing of

risk reporting.

RISK MANAGEMENT AND INTERNAL CONTROL

The Board of Directors has overall responsibility for

ensuring that the company has established appropriate

and eective processes for risk management and internal

control. The Board shall ensure that the aforementioned

processes are satisfactorily established, implemented and

followed up. Through the establishment of the company’s

goals, strategies and risk appetite, the Board sets limits for

the types and extent of risks the company can be exposed

to. The Board of Directors shall at least annually ensure

that significant risks are continuously identified, assessed

and handled in a systematic manner, and that the risks are

acceptable and within specified limits. The above is ensured

through internal control and ORSA processes.

The Company’s Audit and Risk Committee supports the

Board in the exercise of its responsibility for the Company’s

overall risk management and control.

The CEO ensures that the company’s risk management and

internal control are carried out, documented, monitored

and followed up in a proper manner. For this purpose, the

CEO establishes instructions and guidelines for how the

company’s risk management and internal control should

be implemented in practice, and establishes appropriate

control functions and processes.

2021 PROTECTOR FORSIKRING ANNUAL REPORT66

The CEO monitors changes in the company’s risk exposure

on an ongoing basis and informs the board of material

changes. The CEO ensures that the company’s risks are

hedged or complied with in accordance with the Board’s

guidelines, and ensures that managers for all significant

areas of business continuously monitor the implementation

of the internal control.

All managers are responsible for ensuring that risk

management and internal control within their own area of

responsibility are satisfactory. This implies:

• at all times have an overview of significant risk factors

within their own area of responsibility;

• to follow up on implementation and compliance with

associated control measures,

• adapt overall risk management and internal control

requirements to the nature, scope and complexity of

the area, including addressing the need for detailed

instructions or guidelines.

Managers should be able to substantiate that appropriate

risk control is established and functioning. Managers

for significant business areas conduct and document an

annual risk assessment in accordance with the company’s

requirements, and follow up previous control measures.

The company has established central control functions,

including risk management function, compliance function,

actuarial function and internal audit function, which

are independent of daily operations. The functions’

responsibilities and duties, as well as requirements for

independence and authority, are laid down in the board-

approved policy documents and position instructions in line

with the requirements of the Solvency II regulations.

Protector publishes four quarterly accounts in addition to

ordinary annual accounts. The accounts must satisfy the

requirements of laws and regulations and follow the adopted

accounting principles. The accounts must be presented in

accordance with deadlines set by the board. The company’s

accounts are prepared by the finance department which

reports to the CFO.

The Board’s audit committee carries out a preparatory

review of the quarterly accounts and of the annual accounts,

with special emphasis on discretionary assessments and

estimates made, prior to board review.

Protector’s internal control over financial reporting

includes guidelines and procedures that ensure that the

accounts are presented in accordance with the Accounting

Act, regulations for annual accounts, etc. for insurance

companies and good accounting practice and ensures a

correct picture of the company’s operations and financial

position.

REMUNERATION OF THE BOARD OF DIRECTORS

(including sub committees)

The annual general meeting determines the fees paid

to the board of directors following a proposal from the

nomination committee. The remuneration shall reﬂect the

board’s responsibility, expertise, time commitment and the

complexity of the company’s business.

The chairman of the board has a higher fee than other board

members as a result of the larger responsibility and time

consumption connected to his position. The board receives

a fixed annual fee for its work, and has no share options.

Details of the amounts paid to the individual board members

are provided in the annual report. As a rule, members of the

board, or companies to whom they are linked, shall not take

on assignments beyond the work done by the board for the

company. If they nevertheless take on such assignments,

they must inform the entire board.

Substantial payments from the company over and above the

fixed board fees shall be presented to the general meeting

for approval. Information about the scope and costs linked

to such work shall also be provided in that payments beyond

the normal fee shall be specified separately in the annual

report. The company does not give loans to members of the

board of directors.

REMUNERATION OF EXECUTIVE PERSONNEL

The Board has established guidelines on the determination

of salaries and other remuneration to senior executives.

The guidelines are considered and approved by the General

Meeting in the event of any significant change and at least

every four years.

The remuneration scheme contributes to overlapping

interests between shareholders and senior executives and

is linked to value creation over time. The remuneration

scheme is based on measurable conditions that the

employee can inﬂuence. Performance-based remuneration

are subject to an absolute limit.

2021 PROTECTOR FORSIKRING ANNUAL REPORT 67

The Board prepares an annual remuneration report with any

deviation reporting in relation to the adopted guidelines.

Guidelines and remuneration report are available at

www.protectorforsikring.no.

Determination of salary and other remuneration for the

CEO is made by the Board following a proposal from the

Compensation Committee. Determination of salaries

and other remuneration for other senior executives is

determined by the CEO according to limits set by the board.

Executive personnel are encouraged to own shares in the

company.

INFORMATION AND COMMUNICATIONS

For the communication of financial and other price-sensitive

information, the board of directors has based its policy

on the requirements of the stock market regulations and

provisions of the Acts relating to accounting and securities

trading. In addition, Protector has a corporate culture based

on openness, which means that all relevant information

about the company’s business activity will be published

on the company’s website, including annual and quarterly

reports.

Annual and quarterly reports are also made available via the

Oslo Stock Exchange’s reporting system. The company also

aims to provide open presentations in connection with the

publishing of annual and quarterly reports.

The company has a financial calendar on its homepage

and will provide the same information via the Oslo Stock

Exchange’s reporting system. This overview will contain the

date for the annual general meeting as well as dates for the

publishing of quarterly reports.

With the presentation of company information for individual

shareholders or other interested parties, only publicly

available information are presented.

TAKEOVERS

In the event of a take-over bid for the company, the board

of directors shall evaluate the situation thoroughly and with

consideration for the rules relating to equal treatment of all

shareholders. The board shall gather all relevant information,

including the views of the employees, in order to undertake

the best possible assessment of such an event. The board

will thereafter give the individual shareholders the best

possible advice with underlying information that ensures

that each individual shareholder is able to take a position

on an eventual bid. The board’s statement on the oer shall

make it clear whether the views expressed are unanimous,

and if this is not the case it shall explain the basis on which

specific members of the board have excluded themselves

from the board’s statement. The board shall arrange a

valuation from an independent expert. The valuation shall

include an explanation, and shall be made public no later

than at the time of the public disclosure of the board’s

statement.

The board of directors will not seek to hinder or obstruct

takeover bids for the company’s activities or shares unless

there are particular reasons for this.

Any transaction that is in eect a disposal of the company’s

activities shall be decided by a general meeting.

The company has no clauses that can exclude it from

the restrictions under the Securities Trading Act § 6-17

concerning “Restriction of the oeree company’s freedom

of action” in a take-over process. Nor has the general

meeting given the board of directors or CEO any special

authority for use in such situations.

AUDITOR

The auditor shall submit the main features of the plan for

the audit of the company to the Board of Directors Audit

Committee annually.

The auditor shall take part in meetings with the board of

directors that deal with the annual accounts. At these

meetings, the auditor shall review any material changes

in the company’s accounting principles, comment on

any material estimated accounting figures and report all

material matters on which there has been disagreement

between the auditor and the executive management of the

company.

The board of directors will meet the auditor at least once

a year to go through a report on the auditor’s views on

areas of risk, internal control routines, etc. The board shall

arrange an annual meeting with the auditor that excludes

the executive management.

Significant services beyond the statutory audit must be pre-

approved by the Board.

Information about the auditor’s fees for a mandatory audit

and other payments shall be presented in the annual report.

2021 PROTECTOR FORSIKRING ANNUAL REPORT68

SOCIAL RESPONSIBILITY

Social responsibility - sustainable development

Protector’s most important contribution to society

is securing life, values and relieving our customers of

economic risk. The company’s social responsibility is, among

other things, to safeguard human rights, labour standards,

the environment and anti-corruption.

Investors and other stakeholders place increasing

emphasis on factors related to the environment, social

conditions and governance (ESG factors) in the risk

assessment of the company. To support the company’s

growth ambition, meet market expectations and reduce

own, customers’ and investors’ risks, sustainability related

activities need to be tightly integrated into the company’s

business strategy.

The company shall be a responsible, trusted and credible

ESG actor who creates value in a sustainable way.

Based on a materiality analysis, the company’s sustainability

work is divided into four (4) focus areas: People, climate-

ecient solutions, climate resilience and responsible

business practices. The company has prepared a roadmap

for sustainability work in the mentioned areas through 2025.

2022 will be the baseline for most areas we have chosen

to focus on , where the current situation is mapped and

specific sustainability goals are set.

Protector’s ambition is to report in accordance with the

reporting standard Task Force on Climate-Related Financial

Disclosures (TCFD), which also works to meet future

requirements in the EU’s taxonomy for sustainable activities.

The company’s sustainability strategy is mainly based on the

following six (6) UN sustainability goals:

PEOPLE

At the end of 2021, the company had 411 permanent

employees. Of the company’s 411 employees, 155 are

employed in Norway, 90 are employed in Sweden, 51 are

employed in Denmark, 93 are employed in the UK and 22

are employed in Finland.

Absence due to illness in Protector in 2021 was 2.9% against

1.9% in 2020. No accidents at work or occupational injuries

occurred during 2021.

2021 PROTECTOR FORSIKRING ANNUAL REPORT 69

Protector, in line with society in general, has increased

cultural diversity. The company shall be an attractive

workplace and strive for equal treatment and equal

opportunities in all internal and external recruitment

and development processes. As an employer, Protector

is concerned with promoting gender equality and

counteracting discrimination.

An engaging place to work

Protector is a knowledge company, and our employees

are our most important resource. Protector must be an

attractive employer where employees thrive and have good

development opportunities.

The company uses a number of measures to develop

committed and competent employees. The measures

are categorized as experiential learning, social learning

and formal learning. To manage this development, each

employee has quarterly performance and development

interviews.

Experiential learning is the company’s most important

measure for developing employees. The company is

conscious to give the right goals and tasks to the right

employees, so that they develop through their day-to-day

work. We provide a lot of responsibility and visibility -

regardless of seniority. At the same time, we believe that

one must perform together to achieve results. We therefore

focus on highlighting teams, and not just individuals.

Protector believes that the total of a strong team is greater

than the sum of its individuals.

Furthermore, the company invests significantly in formal

learning. In 2021, a solid foundation was built for the

company’s learning portal - Protector’s “Knowledge Hub”.

This hub currently contains approximately 600 modules,

of which over 200 were created in 2021. The employees

are also oered a range of external courses that provide

certification and professional development. Many of the

oers satisfy requirements from the insurance industry and

the EU.

All new employees participate in our joint onboarding

program. This strengthens the connection to Protector, our

culture and our One Team philosophy.

To develop new and experienced leaders, we have three

leadership development programs. Most professional

communities in Protector have weekly experience

exchange and feedback sessions. In these, for example,

the most challenging issues one works with are discussed.

This is an important means of achieving social learning.

Protector has a working environment committee that

works for a sound working environment in the company. In

addition, the personnel handbook is continuously revised to

better shed light on and document the employees’ rights

and duties.

As an indicator of whether we are an engaging place to

work, all employees are invited to participate in semi-annual

employee satisfaction surveys. We see, for the period we

have comparable data, a positive development. The score

in the autumn of 2021 was 75.8 against 74.2 in the spring

of 2021 and 72.9 in the autumn of 2020. The overall score

is at a good level, but we see that there is still potential for

improvement in some departments.

Equality and diversity

All employees must feel job satisfaction, commitment and

security and have the same rights, duties and opportunities

regardless of gender, gender identity or gender expression,

age, sexual orientation, disability, ethnicity, religion or other

belief. The work with gender equality and diversity shall

be conducted in a targeted manner and in collaboration

with our employees. Everyone in the company, regardless

of position, has a responsibility to accept each other’s

dierences and respect the dignity that everyone has the

right to in their workplace.

The company believes that diversity and inclusion are

important for several reasons. For the company culture,

to attract and retain good people, for innovation, problem

solving and to better serve a diversity of partners and

customers.

As part of the company’s diversity work, the company has

committed itself to improving the gender balance by signing

the “Women in the Finance Charter”, which aims to increase

the proportion of women in leading

positions in the financial industry in

Norway. Protector has expanded its

ambition to include all countries in

which the company operates.

2021 PROTECTOR FORSIKRING ANNUAL REPORT70

Status as of 31.12.2021



Job level Gender balance  Remuneration



Number of

women 

Antall

menn

women  Total

Dierences in total

remuneration (%)

Dierences in annual

salary (%)

Board   3  4 43 % 7 73,7% 

Protector Insurance  181  230 44 % 411 62,0% 74,0%

Top management  -  9 0 % 9 0,0% 0,0%

Middle management  13  29 31 % 42 104,7% 100,3%

Team management  20  27 43 % 47 74,3% 80,3%

Employees without managerial

responsibilities  148  165 47 % 313 85,7% 86,4%

Norway  67  88 43 % 155 57,5% 70,3%

Top management  -  5 0 % 5 0,0% 0,0%

Middle management  4  12 25 % 16 122,9% 109,9%

Team management  12  17 41 % 29 64,9% 70,6%

Employees without managerial

responsibilities  51  54 49 % 105 86,4% 87,2%

Sweden  41  49 46 % 90 51,5% 75,8%

Top management  -  2 0 % 2 0,0% 0,0%

Middle management  4  3 57 % 7 80,0% 87,5%

Team management  3  3 50 % 6 50,3% 60,3%

Employees without managerial

responsibilities  34  41 45 % 75 93,1% 92,0%

Denmark  20  31 39 % 51 86,9% 88,4%

Top management  -  1 0 % 1 0,0% 0,0%

Middle management  3  7 30 % 10 103,0% 104,7%

Team management  -  - 0 % 0 0,0% 0,0%

Employees without managerial

responsibilities  17  23 43 % 40 94,2% 96,0%

UK  38  55 41 % 93 81,3% 81,0%

Top management  -  1 0 % 1 0,0% 0,0%

Middle management  1  4 20 % 5 175,3% 142,9%

Team management  5  7 42 % 12 152,6% 149,9%

Employees without managerial

responsibilities  32  43 43 % 75 76,9% 77,3%

Finland  15  7 68 % 22 65,0% 67,3%

Top management  -  - 0 % 0 0,0% 0,0%

Middle management  1  3 25 % 4 82,1% 86,9%

Team management  -  - 0 % 0 0,0% 0,0%

Employees without managerial

responsibilities  14  4 78 % 18 86,1% 87,7%

2021 PROTECTOR FORSIKRING ANNUAL REPORT 71

The figures for temporary employees include summer substitutes, part-time employees and students in addition to temporary

positions. As of 31.12.2021, only four women and one man were in temporary full-time positions. There were no employees in

involuntary part-time positions in the company in 2021.

Gender balance Temporary employment

Part-time employment

Part-time employment Involuntary part-time work

Number

of women

Number

of men

Temporarily

employed women

Temporarily

employed men

Part-time

women

Part-time

men

Involuntary

part-time women

Involuntary

part-time men

213 273 16,9 % 16,1 % 3,3 % 2,2 % 0,0 % 0,0 %

Parental leave 

 Women’s parental leave* Men’s parental leave* 

Protector Insurance 21,0 6,2

Norway 19,7 6,7

Sweden 24,0 7,9

Denmark 23,8 4,8

UK 13,3 2,0

Finland 31,5 0,6

*Average number of week 

Job level Age distribution



Proportion of employees

under 30 years

Proportion of employees

between 30 and 50 years

Proportion of employees over

50 years

Board 0,0 % 42,9 % 57,1 %

Protector Insurance 32,4 % 56,0 % 11,7 %

Top management 0,0 % 66,7 % 33,3 %

Middle management 11,9 % 83,3 % 4,8 %

Team management 12,8 % 78,7 % 8,5 %

Employees without managerial

responsibility 39,0 % 48,6 % 12,5 %

Norway 29,0 % 58,7 % 12,3 %

Top management 0,0 % 60,0 % 40,0 %

Middle management 12,5 % 81,3 % 6,3 %

Team management 6,9 % 82,8 % 10,3 %

Employees without managerial

responsibilities 39,0 % 48,6 % 12,4 %

Sweden 40,0 % 50,0 % 10,0 %

Top management 0,0 % 100,0 % 0,0 %

Middle management 28,6 % 71,4 % 0,0 %

Team management 16,7 % 83,3 % 0,0 %

Employees without managerial

responsibility 44,0 % 44,0 % 12,0 %

2021 PROTECTOR FORSIKRING ANNUAL REPORT72

The work on equality and diversity

Protector has structured the work of ensuring equality and

non-discrimination by establishing an Equality Committee.

This committee meets quarterly or as needed and consists

of HR representatives from all the countries in which we

operate, safety representatives, a representative from

AMU and employee representatives from the board. The

committee ensures the work of promoting gender equality

and preventing discrimination using the four-step model

which consists of examining obstacles to gender equality,

analysing causes, identifying and implementing measures

and then evaluating the results.

It is important to us, if situations arise where an employee

feels discriminated against or harassed, that it should

be easy to notify, and that the notification will be taken

seriously. Routines for notifying of matters worthy of

criticism are included in our digital handbooks so that they

are easily accessible to all employees. Our ethical guidelines

include basic principles for how Protector should act as

an inclusive employer and what is expected of employees

related to behaviour and the working environment.

In order to investigate the risk of discrimination and

obstacles to gender equality, the Equality Committee, in

collaboration with the management groups, has looked

more closely at and discussed what the biggest obstacles

to achieving greater equality and diversity are, and what

we can do to overcome these in recruitment, pay and

working conditions, promotion, development opportunities,

facilitation or the opportunity to combine work and family

life.

Through the work of mapping risks of discrimination

and preventing gender equality, we found a risk that we

formulate our corporate culture in a way that can attract

men to a greater extent than women. The work of recruiting

or developing female leaders in top management has been

challenging. This shows a risk of discrimination, and we must

ensure that we do not have discriminatory elements in our

recruitment or development processes.

Protector is to work actively to ensure that there is an even

gender distribution in the company. Nevertheless, we have

identified that in several recruitment processes there is a

predominance of male applicants, and that the design of our

job advertisements may appeal more to a specific gender.

We also see that lack of resources, knowledge and focus

on the area can be a risk. No one in the company has had

equality and diversity as an area of responsibility. Equality

and diversity are complex areas and require resources

and good knowledge to ensure that they are continuously

evaluated and developed.

Denmark 21,6 % 68,6 % 9,8 %

Top management 0,0 % 100,0 % 0,0 %

Middle management 10,0 % 90,0 % 0,0 %

Team management 0,0 % 0,0 % 0,0 %

Employees without managerial

responsibility 25,0 % 62,5 % 12,5 %

UK 37,6 % 49,5 % 12,9 %

Top management 0,0 % 0,0 % 100,0 %

Middle management 0,0 % 80,0 % 20,0 %

Team management 25,0 % 66,7 % 8,3 %

Employees without managerial

responsibility 42,7 % 45,3 % 12,0 %

Finland 27,3 % 59,1 % 13,6 %

Top management 0,0 % 0,0 % 0,0 %

Middle management 0,0 % 100,0 % 0,0 %

Team management 0,0 % 0,0 % 0,0 %

Employees without managerial

responsibility 33,3 % 50,0 % 16,7 %

2021 PROTECTOR FORSIKRING ANNUAL REPORT 73

8 8

NORWAY SWEDEN DENMARKUK FINLAND

NEW HIRES 2021

Women Men

23.2 %

25.0 %

27.2 %

55.3 %

5.5 %

6.7 %

14.4 %

12.2 %

22.3 %

27.9 %

2.0 %

15.0 %

PROTECTOR NORWAY SWEDENDENMARK UK FINLAND

TURNOVER 2021

Women Men

The Equality Committee and top management have jointly

looked at possible reasons for the identified risks and

obstacles. Although we have guidelines and principles

against harassment and discrimination, these are rarely

focused on. This means that few know about the guidelines

and principles, and actively work with them in everyday

work. We have concluded that little focus and awareness

around equality and diversity is the main reason for the

identified risks and obstacles.

For the year 2021, we have had a special focus on

documenting risks and obstacles, as well as planning

measures and objectives. We have spent time planning

and delegating various measures that we will implement in

the coming year to promote gender equality and prevent

discrimination.

Equality and diversity going forward

To ensure a professional recruitment process that targets

both genders, we have put in place various measures:

• We want first and foremost that all our recruiting

managers go through an internet-based course where

they get an introduction to how to ensure equality

and diversity in the entire recruitment process, as well as

psychological traps that can arise in interviews.

• We also see that there is a need to professionalise our

job advertisements, as we have a predominance of male

applicants in several areas. We will therefore take

a closer look at the wording of the job advertisements

in order to increase the proportion of female applicants.

We want to work to create awareness and anchor equality

and diversity in our culture and have therefore implemented

various measures:

• We will design an internet-based learning module

on “Equality and Diversity” that all employees in the

organization must complete.

• We will prepare an “Equality and Diversity” policy, which

all employees must read through and sign as part of our

onboarding process.

• We will perform number analysis at salary and bonus

levels and implement measures to avoid biases

• We will communicate our ambitions internally and

externally

• We will strive for both genders to be represented in all

recruitment processes and in the final phases

• We will include diversity / gender equality in employee

surveys

• We will include diversity / equality in management

training and in our values

• We will make leaders aware of homosocial reproduction

(about conscious or unconscious favouritism of their

own group), double standards (dierent assessment

despite the same background and the same

characteristics) and «double binds» (same requirements,

but dierent conditions)

• We want to facilitate the opportunity to combine work

and family life by using a hybrid solution, so that

employees can combine being physically in the oce

with a home oce.

In 2021, we have focused on structuring the work,

documenting risks and obstacles, planning measures and

objectives. We have not worked on any specific measures in

2021, and therefore have no concrete results to show so far.

In the coming year, we will work with several measures that

we believe can have a great impact on our work to promote

gender equality and prevent discrimination. We want to

take with us all the lessons, actively test and develop our

measures and goals in order to create a work environment

where there is room for everyone.

2021 PROTECTOR FORSIKRING ANNUAL REPORT74

We focus on loss prevention

We reduce our own and our customers' losses by extending the life of their assets

We enable and

motivate our insured

to choose climate

efficient solutions

We focus on reducing the climate footprint in claims settlement

We work with our suppliers and customers to make our claims settlement, using residual values, reuse, material

and process choices, more circular

Human and labour rights at our suppliers

Protector’s fundamental guideline is respect for an

individual. Everyone shall be treated with dignity and

respect, without discrimination on the grounds of ethnicity,

nationality, religion, age, gender, disability, or sexual

orientation. Children shall not be used as labor and forced

labor shall not occur. All new employees receive training on

this as part of Protector’s onboarding process.

The company seeks to know its suppliers and shall avoid

using suppliers who do not satisfy the company’s core

values or ethical guidelines. We require that our suppliers

comply with applicable regulatory environment and industry

standards. In 2022 we are establishing a company-wide

claims procurement unit and expect subsequent annual

reports to go more in-depth on how we work with our

suppliers.

In 2022, Protector will carry out due diligence assessments

in line with the OECD’s guidelines for multinational

companies. This will increase responsibility and prevent

negative impact on the environment from one’s own

business. The assessments are comprehensive and involve

investigations of conditions for employees, human

rights, environmental impact, bribery and corruption and

corporate governance. These requirements follow from the

Transparency Act which will be introduced in Norway in July

2022.

CLIMATE EFFICIENT SOLUTIONS

Claims prevention measures

The most eective climate measure for a non-life insurance

company is to prevent damage from occurring. Loss

prevention is central to Protector and our commitment to

climate eciency. We invest heavily in this area. We conduct

inspections before giving prospective customers a quote,

we inspect current customers and undertake post-loss

investigations to help reduce the likelihood of repeat losses.

Customers receive case-specific bespoke risk management

proposals to address any concerns identified.

Fire prevention has significant social, environmental and

climate benefits. This is consequently a focus area for us

in the property segment, and we work closely with our

customers to implement cost-eective fire prevention

solutions.

There are two chief reasons why we focus on loss

prevention:

• Avoid customers with a poor attitude to risk

• Poor attitude to risk is revealed through a high

number of persistent and critical deviations, for

example related to combustible building materials

• These customers will receive an oer from us

that is not competitive. Furthermore, they will

receive an explanation as to why we set the premium

high

• We follow up if they improve within the next tender,

and they receive a competitive oer from us if the

critical deviations are closed.

2021 PROTECTOR FORSIKRING ANNUAL REPORT 75

• Assist our customers in closing deviations, and thus

avoid or reduce the consequences of undesirable events

• We issue deviation reports to customers who have

insurance with us

• These reports include photos and descriptions

of deviations associated with the customer’s

properties, information on why it is important to

close the individual deviations and potential

consequences should an adverse event occur.

• We follow up these reports on renewals and perform

audits of assets with critical deviations

For 2021, we have the following statistics on property

related inspections in the Nordics:

Country 

Customers

inspected

Buildings

inspected

Buildings

with

deviation

Share of

buildings with

deviations

DK 14 286 246 86%

NO 82 375 214 57%

SE 75 747 420 56%

Totalt 171 1408 880 63%

Statistics related to our work on injury prevention in the UK

for 2021:

• Produced 37 guidance documents, enabling managers

to improve their procedures to reduce the likelihood of

property damage or injury

• Delivered over 36 bespoke training courses with a goal

of educating clients’ managers, giving them the

knowledge and tools to reduce damage or injury

• 369 client meetings undertaken, with a purpose

of evaluating risk, identifying how to improve clients’

safety and management procedures, issuing reports with

recommendations or requirements

In 2022, we will expand the aforementioned deviation

approach to new segments. The largest investment we make

in loss prevention in the coming year will be in data quality.

We develop systems that give us better and more accurate

exposure and damage data. This allows us to earlier capture

trends in the claims picture both overall and for individual

customers, and we can then more quickly implement

targeted damage prevention measures. Together with our

customers we will constantly improve loss prevention.

Reduced climate footprint in claims settlement

Protector handles over 141 000 claims annually. How these

claims are setteled is one of our biggest opportunities in

both sustainability and cost savings. These are opportunities

we must seize, and we must constantly reduce the climate

footprint in our settlements.

We have identified the greatest potential reduction in our

climate footprint in property and auto, and this is where

we will have the greatest focus for our further work on

sustainability.

In these segments, we work closely with our suppliers and

customers to increase the proportion of repair, reuse and

recycling in claims settlement, as well as increase the use

of climate-friendly materials and processes. We evaluate

any damage with the aim of identifying residual values and

potential climate measures. We inﬂuence industry standards

to allow for more repairs and reuse. This provides financial

gain both for the insured and for Protector. In addition, in

those cases where it is dicult to sell damaged but usable

items, we donate those to charity.

Within property, approx. 80% of our claims are greater than

NOK 1 million. These are primarily related to buildings. The

way we handle these claims are of great importance. We

therefore use independent and skilled claims appraisers.

CLAIMS SETTLEMENT PORTFOLIO,

BROKEN DOWN BY VALUE, FOR 2021

Auto insurancePersonnel and health

insurance

Property insurance

Change of ownership

insurance

Liability insurance

Others

34%

26%

24%

CLAIMS SETTLEMENT PORTFOLIO,

BROKEN DOWN BY VALUE, FOR 2021

Auto insurancePersonnel and health

insurance

Property insurance

Change of ownership

insurance

Liability insurance

Others

34%

26%

24%

2021 PROTECTOR FORSIKRING ANNUAL REPORT76

These are used not only for the appraisal itself, but also

to follow up that repairs and reconstruction are carried

out in accordance with current requirements, including

requirements related to climate and HSE.

In auto, Protector has recommended workshops for

each geographical area. These workshops can document

satisfactory operation in accordance with current

requirements as well as quality standards Protector requires.

A requirement we have is that used parts must be used

where possible, and for cars older than five years, equivalent

used parts must in principle be used. Furthermore, we

advocate the use of independent workshops. This is because

these earn relatively more on repairs than replacement of

parts. To ensure significant volume for our recommended

workshops, we have limited the number of workshops in

each area.

However, we have not documented the eect of our eorts

to reduce the climate footprint in claims settlement and

have consequently not set specific targets for our further

eorts. In 2022, we will establish a baseline for this work,

and then set targets for further eorts. The following are

among the topics we will establish a baseline and goals for

during 2022:

• The proportion of our suppliers that oer preservation

of residual values and reuse

• The proportion of our geographical areas where we have

an agreement with at least one independent workshop

• Proportion of claims where we have made climate

measures

• Preservation of residual values

(repair rather than replacement)

• Reuse (quality assured used parts purchased

from third parties)

• Climate-ecient repair processes

• Reconstruction to a higher climate standard

• Financial results of the climate measures

In the long term, we also want to quantify how the climate

measures aect the climate footprint, including Co2.

CLIMATE RESILIENCE

Routines and processes for managing climate risk

We recognize that unwanted weather-related events may

become more frequent and more severe. Proper assessment

of climate risk is important to understand what risk our

potential customers are exposed to, and what risk is

transferred to Protector through our insurance.

Our general exposure to climate risk, through having only

customers in the Nordic countries and the United Kingdom,

is relatively limited. Furthermore, the assets Protector

insures are largely of the type that are more resistant to

extreme weather, such as larger oce or municipal buildings

in areas close to the city centre.

2021 PROTECTOR FORSIKRING ANNUAL REPORT 77

Protector’s underwriting is based on analysis, data, modern

tools, on-site inspections and loss prevention. Our tools

and methods take climate risk into account, for example by

assessing the risk of storms and ﬂoods. In more vulnerable

areas, such as the UK, we use a comprehensive 8-step

process to carefully understand and manage the current

climate risk. Through this process, we will get a correct

picture of relevant climate risk and avoid the biggest risks.

We evaluate our portfolio’s climate risk on a quarterly

basis and take this into account through reinsurance. We

use recognized tools and methods such as AIR and RMS in

our climate risk evaluation. Our reinsurance now covers an

estimated 1-in-10,000-year event. In line with Protector’s

reinsurance policy, our maximum deductible exposure is

DKK 100 million, regardless of the type of event that occurs.

Risk assessments related to climate change are part of

the company’s risk management system. Assessments of

potential risk factors and impact on Protector’s operations

are carried out on the basis of publications from the

Intergovernmental Panel on Climate Change (IPCC).

This includes analysis of climate change, future scenarios,

assessments of risk factors and potential impacts related to

climate and climate change conducted by the Task Force on

Climate-Related Financial Disclosures (TCFD), the United

Nations Environment Program (UNEP) Finance Initiative

and EIOPA. A more detailed description of the company’s

risk assessments related to climate change can be found in

the company’s Report on Solvency and Financial Position

2021.

Our goal going forward is to continue our profitable

growth. To support this goal, we will continually improve our

underwriting - including related tools. We are considering

further investing in external tools to provide additional

benchmarks for said process. Through participation in

the “Industry Board risk and damage”, the board of the

Norwegian Natural Perils Pool and close cooperation with

our reinsurance broker, we have broad access to market

trends, data, advice and knowledge that is relevant for

managing climate risk.

Climate resilience in product development and pricing

A changing climate aects which terms and pricing are right

for our products. We are already seeing changes to what

perils exist; causes of damage such as hailstorms and forest

fires are more prominent now than before.

Protector has an annual review of which products and

associated terms are to be oered to the market. This is

based, among other things, on input from our reinsurance

broker, customers, industry organizations and our own

claims data. The result is that we develop insurance

products that take climate risk into account, incentivize our

customers to implement climate resilience measures and

provide financial protection in the face of climate change.

Underwriting of climate-related perils will be covered by

future taxonomy regulations. Subsequent reports will detail

whether these activities meet the criteria to be defined as

sustainable.

The goal in product development and pricing is to

increasingly understand how climate change aects which

products are right, and how these should be priced. This

enables us to oer the products the market needs and

ensures us continued profitable growth.

2021 PROTECTOR FORSIKRING ANNUAL REPORT78

RESPONSIBLE BUSINESS BEHAVIOUR

Our own operations

We shall be a positive contributor to the society we are part

of, support a great corporate culture and avoid fines and

penalties.

Protector is a non-life insurance company and operates

within a business area where the risk of corruption

and money laundering is low. In 2021, we performed a

corruption risk analysis for the entire business. Parts of our

business are more exposed to corruption than others, and

the development of tailor-made anti-corruption measures

has been implemented. No confirmed cases of corruption

have been identified.

Protector’s ethical guidelines state that the company has

zero tolerance for corruption. The company has guidelines

for gifts and representation, and employees of Protector

shall not, on behalf of the company work with cases where

they have personal interests, or where it may be perceived

by others that they have such interests.

Protector is required to have a risk-based approach to

money laundering and terrorist financing to customers

based on customer relationships, type of products and type

of transactions. The company carries out a risk assessment

in connection with the sale of insurance to new and existing

customers - and in the case of claims payments. The risk

assessment is comprehensive, and is based on

characteristics of the customer, the customer relationship,

the product, the transaction, and other relevant factors.

In insurance, money laundering will often take place in

connection with claims payments. The fight against money

laundering takes place by particularly monitoring conditions

where we consider the risk of money laundering to be high,

and in the event of any suspicion, report the matter to the

relevant authority.

The company’s guidelines for anti-money laundering and

terrorist financing have been adopted by the board. All

employees in the company must complete a mandatory

e-learning course on anti-money laundering and anti-

terrorist financing. All new employees receive anti-

corruption training as part of our onboarding.

Protector processes personal data in accordance with the

laws and regulations that regulate the collection, storage

and use of such data. Company policy and guidelines for the

processing of personal data provide additional requirements

for implementation throughout the organization. Privacy

and information security are essential factors in securing the

rights of the individual. Protector’s privacy representative

works closely with the business areas and IT to meet the

requirements of the regulation for everyone’s security.

The company has a well-functioning deviation registration

system to register and handle any breaches of personal data

security for both customers and employees.

All employees must complete e-learning where they must

confirm that they have read and understood the company’s

guidelines for the processing of personal data.

2021 PROTECTOR FORSIKRING ANNUAL REPORT 79

Partners

We require our suppliers to comply with current regulatory

requirements and industry standards. In 2022, we will

establish a company-wide purchasing unit, and we expect

subsequent annual reports to go into more depth on

how we work with our suppliers. Among other things,

we will introduce a reporting structure where suppliers

must actively answer whether they comply with defined

guidelines, standards and requirements.

Responsible investments

Protector seeks to achieve the best possible combination

of risk and return at the same time as the investments

are made in a responsible manner. We expect increased

requirements, regulations and higher costs for activities that

have a negative impact on the outside world. This view is

reﬂected in our approach to investment.

Protector shall not invest in companies that are responsible

for, or contribute to serious or systematic violations of

human rights, that have a major negative impact on the

environment or are involved in corruption.

Protector has a “bottom-up” analysis approach where

company-specific factors such as competitive position and

valuation are most important. Factors related to ESG are

included in the investment decisions but are not the starting

point for which companies are assessed.

To ensure that the investment universe contains companies

that meet generally accepted ethical guidelines, Norges

Bank’s exclusion list is consulted. Historically, there have

been no investments that overlap with this exclusion list.

The Investment Director has overall responsibility for the

implementation of ESG in the investment processes in

Protector. Analysts and portfolio managers are responsible

on a day-to-day basis for implementing assessment of ESG

factors in company analysis and investment strategies.

Protector is often a major shareholder or lender. This gives

us opportunities to exercise our ownership. As a starting

point, we will not invest in companies that have a history

of poor corporate governance. In portfolio companies, we

work to ensure that the companies have a good board. We

contribute to this by participating in nomination committees

where possible.

Active ownership is based on an assessment of how it can

have the greatest eect. In some cases, it may be better to

retain an ownership position and exert inﬂuence over selling

out.

Other examples of the exercise of ownership:

• Voting and proposals towards general assemblies

• Dialogue with the board and management

• Promote best practices from other companies in the

same industry

• Review and change input to bond terms for bonds

Protector also seeks to collaborate with other investors

to inﬂuence companies in matters related to corporate

governance and sustainability.

In 2021, Protector has been represented in the nomination

committees of several of the companies that were then in

our portfolio; eWork, Projektengagemang, Multiconsult

and B3. In several of the portfolio companies, we have been

active in changing the composition of the board to increase

competence and value creation.

Protector will keep its focus on being a responsible investor.

We are a sparring partner and part of an initiative from

Stamdata for a new reporting service on ESG factors. The

goal is to improve the quality of data on bond issuers’ ESG

profile and the service has plans for launch in 2022. The

service will improve the quality of data on ESG factors and

can inﬂuence investment decisions.

PROTECTOR FORSIKRING ASA

Støperigata 2

PB 1351 Vika, 0113 Oslo

Tlf.: 24 13 17 00

info@protectorforsikring.no