ANNUAL REPORT
HIGHLIGHTS 2022
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
04
06
10
12
14
16
17
18
19
20
21
24
26
31
60
62
66
72
2022 PROTECTOR FORSIKRING ANNUAL REPORT4
HIGHLIGHTS
2022
In 2022, total premiums amounted to NOK 7,097.8
million against NOK 5,950.6 million in 2021,
representing 19 % growth (21 % in local currencies).
The growth in the Nordics was 15 %, while growth in
the UK was 31 %.
The technical result was NOK 599.6 million against
NOK 594.4 million in 2021, corresponding to a net
combined ratio of 88.9 % against 87.3 % in 2021. The
technical result is driven by strong results in Norway,
Sweden and UK, but Denmark and Finland are also
contributing.
The claims ratio for own account was 79.3 %, up from
77.4 % in 2021. The large loss ratio was somewhat lower
than normal. The Covid-19 pandemic had no measurable
impact in 2022. The company had run-o gains of 2.3 %
for the year against 0.3 % in run-o-losses in 2021.
The return on the investment portfolio was 3.4 %,
against a return of 6.8 % in 2021. At the end of 2022,
17.9 % of Protector’s financial assets were invested in
equities, against 15.1 % year-end 2021.
Profit for the year was NOK 809.5 million, compared
to NOK 1,204.0 million in 2021.
2022 PROTECTOR FORSIKRING ANNUAL REPORT 5
2022 PROTECTOR FORSIKRING ANNUAL REPORT6
THIS IS PROTECTOR
Protector started underwriting insurance in 2004 and has
been listed on the Oslo Stock Exchange since 2007. The
company entered the Swedish insurance market in 2011,
the Danish in 2012 and the Finnish and British in 2016.
The geographical distribution of premium income was at the
end of 2022: UK: 30 %, Sweden 29 %, Norway 23 %,
Denmark 15 % and Finland 3 %.
The company has grown rapidly since its inception, and
has over 436 permanent employees today, with oces in
Stockholm, Copenhagen, Helsinki, London, Manchester and
Oslo. The company’s operations in foreign markets follow
the same business model as in Norway and are well received
by insurance brokers.
Protector aims for further profitable growth. This will be
achieved by oering the lowest costs and the best quality
of our services. The company’s main goals are: Cost and
quality leadership, profitable growth and top 3 in selected
segments. Our long-term financial objectives are:
• Combined ratio for own account: 90-92 %
• Return on equity: > 20 %
• Solvency margin: > 150 %
DISTRIBUTION STRATEGY
Protector has a distinct distribution strategy. All business
is conducted through our selected brokers. Protector has
a broad and good collaboration with these brokers and a
significant proportion the portfolio is channeled through the
largest brokerage houses in the Nordics and Great Britain.
Our promise to insurance brokers and customers is that we
will be easy to do business with, commercially attractive
and trustworthy. Protector has defined service standards
and both brokers and customers are oered service level
agreements (SLA). All processes and steps necessary to
meet the high standards are reviewed and analyzed at
individual and team level through KPI measurements.
MARKET STRATEGY
Protectors prioritized market segments are the commercial
lines of business, the public lines of business and the anity
market.
We are a total supplier of non-life insurance. Our clients
represent a broad range of industries and risks within
non-life insurance.
The commercial sector includes both small and large
companies and anity programs through brokers. We tailor
insurance solutions for large companies, and can develop
own concepts through anity programs as well as facilitate
solutions for multiple countries.
The public sector consists primarily of municipalities
and county authorities. Protector is ranked number 1 in
Scandinavia in municipal insurance, and insures over
600 municipalities and county councils.
Protector’s long-term profitability target is a combined ratio
of 90-92 %, which implies growth through consistent risk
selection, market pricing, cost-eective operations and risk
improvements. Protector operates with the same strategy
for cost and quality leadership and has implemented
uniform processes for risk selection in all countries. The aim
is to ensure consistent and eective decision-making by
involving the correct expertise in the processes. This is our
underwriting process.
All existing customers are evaluated on the same basis as
new risks. The renewal process will constitute the basis
for making changes to our policy terms, pricing and risk
management initiatives. The renewal strategy shall always
be rational and shall ensure that the profitability targets are
achieved at the first renewal.
All countries have appointed a product owner/Chief UW for
all products. The product owner is responsible for sharing
We are the challenger. And we demonstrate this through unique relationships, excellent
decision making and cost eective solutions. Our most important promise to the market is that
we are easy to do business with, commercially attractive and trustworthy.
2022 PROTECTOR FORSIKRING ANNUAL REPORT 7
their experiences with colleagues in the other countries,
maintaining and developing terms, risk selection according
to the company’s UW guidelines, understanding the local
market conditions and securing deliveries through the
established underwriting process.
Protector’s claims prevention measures are very
comprehensive, and include, among other things,
consultations and inspections that uncover potential safety
risks, and training of employees and management in HSE
and safety routines. The aim of the measures is to be able
to provide targeted recommendations and action plans that
are eective and realistic based on patterns emerging from
claims data.
Reinsurance protects Protector’s equity, is used for
solvency relief purposes and ensures an equalization of
the results over time. Protector uses estimates from
EIOPA as a framework for determining protection through
reinsurance (Excess of Loss). The protection must normally
cover a damage volume with a return period of 200
years. Protector must have a maximum own account of
100 MNOK/SEK/DKK, 10 MGB or 10 MEUR for individual
incidents.
Protector prepares a renewal strategy for the individual
reinsurance contracts in collaboration with the company’s
reinsurance adviser. This strategy deals with both objectives
for commercial conditions, and changes in the capacity
(limit) of the individual contracts, evaluation of the level of
own account and contract scope, as well as general clauses.
Protector normally buys reinsurance through reinsurers with
a credit rating of A- (S&P), or higher.
CLAIMS HANDLING
The claims handling is the “moment of truth” and is an
integral part of the company. All claims handling takes
place in-house, with the exception of certain niche areas
where an internal solution is not financially sound. We have
gained substantial claims handling competence, and by using
skills and competences eectively across claims handling,
underwriting and sales, high cost eciency is achieved while
maintaining high quality. Claims handling currently make up
about 47 % of our operational workforce.
Our claims handling is built on quality standards that will
ensure that injured parties can trust that they will receive
the compensation they are entitled to, and in a way that
provides trust and security. To achieve this, we have set
the following five quality criteria as a basis: agility, tone
of voice, professional substance, correct settlement and
a comprehensive assessment. All claims handlers are
evaluated on these five quality criteria and the company
regularly receives feedback from brokers and customers so
that the interests of the company and the customers can be
coordinated in the best possible way. The most important
in the claims processing process is agility. Protector has
developed a paradigm called Clean Desk; a framework with
ways of thinking and acting to ensure that claims handlers
deliver on time without compromising quality.
INVESTMENT STRATEGY
The investment mandate is determined by the Board within
the regulatory framework and defines the company’s
investment strategy. The company carries out stress tests
regularly to ensure that the solvency margin is at all times
at an acceptable level. In the stress tests, the result is tested
of a negative outcome in all asset classes at the same time.
The capital allocation is optimized to maximize risk-adjusted
return from internal and external investment sources.
Protector manage its investment in-house. The management
currently includes investments in shares, interest-bearing
securities and related hedging instruments. The analysts
calculate the returns for financial investment options, and
rank them on the basis of return and risk capital.
2022 PROTECTOR FORSIKRING ANNUAL REPORT8
IT STRATEGY
In Protector, we develop, maintain and operate all core
systems with a strong team of 40 in-house IT specialists
who are passionate about technology and business. 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
between IT and the business areas ensure a very short
time-to-market for innovations. Due to a flexible
organization are we able to adapt to changes in the
business during the course of days.
The in-house developed IT solutions have contributed to
both costs- and quality leadership. To ensure good decisions
and reliable processes, we constantly focus on improving
data quality and availability. Our investments in digitization
is primarily aimed at strengthening and making it more
ecient the value chain with our brokers and customers.
IT is a strong contributor, making it possible for Protector
to be the challenger in the market by combining important
insurance competency, cost eciency innovation with quick
and targeted technology development.
ADMINISTRATION
Protector’s support functions provide services to the
business units through accounting, business support,
process development, compliance and risk, financial
controlling, actuarial analyses, HR and marketing. Protector
aims to have well-functioning support functions that create
value for the business units.
PERFORMANCE BASED CULTURE
Value-based leadership defines Protector and is a
fundamental part of the company’s business strategy.
The company’s guidelines shall guide the employees in
their work, and contribute to ensuring that all, as a united
team, move in the same direction. These guidelines can be
summarized in the company vision, business idea, overall
goals and values.
The employees work every day to benefit from these
guidelines with developing their understanding of them
– as employees, as a team, as a department and as a
company. Protector’s culture shall encourage employees
to make decisions and to take responsibility for own
achievements, and thus deliver on own objectives and
contribute to the company’s One Team.
Protector will recruit, develop and retain the right people.
The company believes in developing important skills
through continuous and deliberate learning. Knowledge
Hub has been established for the purpose of supporting the
onboarding of new employees and continuous
training of all employees so that all are able to make best
in class decisions. Knowledge Hub allows the company
to map, assess and give feedback on the employee’s
competence development. Together with quarterly personal
developmentdiscussions, managers and employees can
follow up that learning takes place and that goals are set
for future performance and development. Protector also
carry out annual 270º and 360º processes where employees
and managers have the opportunity to give and receive
feedback on how they experience each other’s compliance
with the company’s values.
“One Team Leadership”, Protector’s internal 18-month
leadership development program (the ninth in a row)
was concluded in September 2022. The program built on
experiences from previously held leadership development
programs with continuity back to 2013. The 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. The tenth leadership
development program in Protector will begin in February
2023.
SUSTAINABILITY
Starting from where the company can create the greatest
benefit for society, we have chosen the following focus
areas: people, climate-ecient solutions, climate adaptation
and responsible business practices. In short, this means that
we work for good working life throughout our value chain,
reduces our climate footprint through claims prevention and
competent claims handling, that we take climate risk into
account in our underwriting and product development as
well as shows responsibility with anti-corruption, anti-money
laundering and through our investments.
The company has signed the UN’s principles for
sustainability insurance (PSI), and keeps climate accounts
in accordance the GHG protocol. This is a validation of
the work that has been done, and gives direction to the
company’s further work.
2022 PROTECTOR FORSIKRING ANNUAL REPORT 9
2022 PROTECTOR FORSIKRING ANNUAL REPORT10
KEY FIGURES
[1.000.000 NOK] 2022 2021
Gross premiums written
1
7 098 5 951
Gross premiums earned 6 541 5 746
Gross claims incurred (5 184) (4 468)
Earned premiums, net of reinsurance 5 715 4 921
Other insurance related income 12 9
Claims incurred, net of reinsurance (4 534) (3 810)
Sales cost (387) (362)
Administration cost (263) (257)
Commission from reinsurer 102 131
Other insurance related expenses (33) (29)
Technical result 600 594
Other income/costs (65) (56)
Net financial income 477 878
Profit before tax 1 012 1 416
Tax (167) (252)
Discontinued operations
(3) 67
Net comprehensive income (33) (28)
Profit for the period 809 1 204
Claims ratio, net of reinsurance
1
(1) 79.3 % 77.4 %
Expense ratio, net of reinsurance
1
(2) 9.6 % 9.9 %
Combined ratio, net of reinsurance
1
(3) 88.9 % 87.3 %
Gross claims ratio (4) 79.3 % 77.8 %
Gross expense ratio
1
(5) 9.9 % 10.8 %
Gross combined ratio
1
(6) 89.2 % 88.5 %
Retention rate
1
(7) 87.4 % 85.6 %
Earnings per share
1
(8) 10.2 15.0
(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
1
Defined as alternative performance measure (APM). APMs are described on
www.protectorforsikring.no in document named APMs Protector Forsikring 2022
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 do business with, commercially
attractive and trustworthy.
2022 PROTECTOR FORSIKRING ANNUAL REPORT12
SHAREHOLDER
INFORMATION
THE PROTECTOR SHARE
In 2022 Protector’s share price increased by 16.1 %. The
Oslo Benchmark (OSEBX) decreased by 1 % during the same
period. In 2021, Protector’s share price increased by 81.9 %,
while the Oslo Benchmark index increased by 23.4 % during
the same period.
DEVELOPMENT IN PROTECTOR’S SHARE PRICE
The average trading volume of Protector’s shares on the
Oslo Stock Exchange was 80,534 shares in 2022, relative to
69,191 in 2021. At the end of 2022, the Protector share was
traded at NOK 125,8. The market value of total outstanding
shares was NOK 10,363 million.
DIVIDEND
In accordance with the company’s adopted dividend policy,
the intention in the coming years is to pay 20 - 80 % of the
profit for the year as dividend. The final determination will
be based on the company’s result, capital requirements
including satisfactory buers and the necessary flexibility
for growth and development in the company. Distribution
of dividends will be considered at a solvency margin above
150 %. With a solvency margin above 200 %, the Board’s
intention is to over time return surplus capital to the
shareholders in the form of special dividends or
buy-back of own 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 largest 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 March 30th, 2023 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
130
120
110
100
90
80
70
60
50
40
30
20
10
0
Dec 2012 Dec 2022
2022 PROTECTOR FORSIKRING ANNUAL REPORT 13
FINANCIAL
CALENDAR
Q1
Q2
Q3
Q4
08.03. - Annual Report 2022
30.03. - Annual General Meeting
28.04. - Quarterly Report Q1 2023
02.02. - Quarterly Report Q4 2022
11.07. - Quarterly Report Q2 2023
20.10. - Quarterly Report Q3 2023
2022 PROTECTOR FORSIKRING ANNUAL REPORT14
VERY STRONG AND PROFITABLE GROWTH
FROM ALL COUNTRIES
In 2022 we grew our premiums by 21 % in local currencies,
relative to 2021. Combined ratio was 88.9 %, i.e. 11.1 % profit
margin on the insurance business.
The large loss rate (6.2 %) in the portfolio was slightly
lower than normalised (7 %). The development in reserves
from earlier years gave a positive eect at 2.3 %. Adjusted
for this, underlying profitability is somewhat weaker than
reported results, but still at a good level.
Results are driven by disciplined underwriting in renewals
and new sales, a strong eciency and quality development
in claims handling, early and consistent action on claims
inflation and a rational Scandinavian market. In UK,
competition has increased in the commercial sector,
whilst it has decreased in the public sector.
Both profitability and growth are results of high quality
handling of our existing portfolio (low client churn, price
increases, good claims handling and improved risk selection)
and a strong new sales, especially in UK and Sweden.
WELL PREPARED FOR UNCERTAIN MARKET
CONDITIONS THROUGH DISCIPLINE
AND DATA QUALITY
To us, as for our competitors, insurance brokers, clients and
reinsurers, the extraordinary inflation has been in focus.
A fact based approach with the right competence involved
has led to dierentiated actions to counter deteriorating
profitability. Adjustments to sums insured and rates are the
most important measures. Throughout the year we have also
added competence and capacity on claims procurement to
better control and influence claims costs.
Our strong focus on quality and eciency in risk
management and claims handling is important to
our profitability and at the same time it supports our
sustainability ambition. When sustainability actions add
directly to the bottom line, the incentive and use of
resources increases.
The data quality has improved during 2022, but there is
still room for further improvements. Our current situation
contribute to us having good control of the largest risks
in our portfolio, enable simple automations, improve
availability and increase precision in analyses. Investment in
competence, capacity and increased cooperation between
IT and the business units are essential to further improve
data quality and implement the advantages it entails.
FINANCIAL MARKET TURMOIL AND SIGNIFICANT
INCREASE IN REFERENCE RATE
The investment portfolio yielded a return of NOK 501m
(3.4 %); the equity portfolio returned 15.7 % whereas the
fixed income portfolio returned 1.4 %. We invest for the long
term; short term gains and losses are mostly unrealised.
The excess return from financial investments since October
2014 (in-house management) is exceptional.
Our average reference rate has increased by 2.8 percentage
points throughout the year, whilst the average risk premium
(spread) has increased by 1.2. Hence, our expected annual
yield (before cost of risk) in the fixed income portfolio has
increased from two (2) percent by the end of last year,
to six (6) percent by the end of 2022.
From a capital perspective, we have during 2022 adapted
our duration on the fixed income portfolio to reflect the
duration of our insurance reserves, which we believe is more
correct in a higher interest rate environment.
In Protector, we consider investments as core business;
we take on calculated risks both within insurance and
investments. Our assets under management have grown
to NOK 14.9 billion (up from NOK 14.3 billion). At year
end about 17.9 % was allocated towards equities and 82.1 %
towards fixed income securities and hedging instruments
related to interest development.
CAPITAL ALLOCATION WITH A LONG TERM VIEW ON
RETURN ON EQUITY
To assess risks and opportunities from a capital perspective,
we have strengthened the process and involved
competence from a wider part of the company in 2022.
Both existing and new elements are assessed, discussed and
quantified quarterly, or more often if found necessary.
This lay the groundwork for correct capital allocation
decision-making and contribute to us being well prepared
and capitalised in turbulent times.
2022
- PROFITABLE GROWTH
FROM ALL TEAMS
2022 PROTECTOR FORSIKRING ANNUAL REPORT 15
In times where we see opportunities for profitable growth
within insurance, see attractive financial investment
opportunities, have other attractive allocation alternatives
or consider the macro environment to be turbulent (or a
combination of above), we will be reluctant to distribute
excess capital to shareholders.
The solvency capital ratio (SCR-ratio) for 2022 is at 195 %.
With this, we have a solid base for the future, and we value
the flexibility it entails. Our solvency based reinsurance
agreement was not renewed by the end of the year.
A.M Best has maintained their investment grade credit
rating of bbb+ with stable outlook on Protector.
PROUD TEAM CAPTAIN
When the results are strong in all business units, it is driven
by good performance from all functions in the business
units. That would not have been possible without high quality
deliveries and development also from centralised IT and
HQ functions. The collaboration between people, teams,
units and functions is significantly improved throughout
2022. This is driven by the teams, whilst the structures for
collaboration were developed along the way. I am impressed
and proud of how sharing of “best practice” make us
stronger, at the same time as we to a large degree support
each other where that is most important, independently of
where one work. Thank you to all employees for evolving our
culture every day and for delivering great results.
With strong growth we must strengthen the team to
continue delivering. We have an ambition to increase the
number and diversity of applicants. This implies increased
visibility in more channels and innovation in how we best
can give potential applicants a view of our every day in
Protector. This is one step in creating diversity, to the best
for our company.
The insurance brokers are also a part of our team. Our best
and only friends grew their market share in 2022, especially
through developing arrangements for smaller clients than
those who usually are a part of the brokered market. We are
a part of that journey, and see a lot of future opportunity to
compete on quality and eciency against our competitors’
direct distribution channels.
Following a period of poor evaluations from the brokers
we collaborate with in Scandinavia, the quality of deliveries
have improved in 2022. Our own survey is supported by
external, which depicts Norway back in the lead, Denmark
close to lead and Sweden on the right track. Our last survey
in UK was carried out towards the end of 2021. However,
indications suggest that we still deliver high quality. Going
forward, our focus is to develop eciency and quality in our
joint value chain together with the brokers. This involves
processes, data quality, as well as technology. I would like to
use this opportunity to thank all our friends for their trust in
us. We will continue to do business with you only, and we are
dedicated to make our joint value chain even greater.
HENRIK GOLFETTO HØYE
CEO
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.
2022 PROTECTOR FORSIKRING ANNUAL REPORT16
NORWAY
Combined ratio 89.2 % and 14 % growth
GROWTH AND PROFITABILITY
In 2022, total premiums in Norway amounted to
NOK 1,610.1 million against NOK 1,415.0 million in 2021,
representing 14 % growth. The increase was largely driven by
a low customer churn rate (12 %) as well as good new sales.
The technical result (insurance result) was NOK 145.1
million against NOK 123.5 million in 2021, corresponding
to a net combined ratio of 89.2 % against 89.2 % in 2021.
The claims ratio for own account was 83.7 %, up from 82.1 %
in 2021 and includes run-o gains on previous years’ claims
provisions as well as a large loss ratio below the normal level.
The gross expense ratio was 6.2 % (7.6 %).
DISTRIBUTION AND MARKET
We aim to be the preferred partner for our brokers. In our
broker satisfaction survey, we received good feedback on
deliveries from our broker service team, which is further
confirmed by external quality surveys. We always aim to
improve, and have therefore increased capacity on the
market side to both improve our renewal process and ensure
a clear presence in the market. This makes us well positioned
for further profitable growth in 2023.
ORGANISATION AND COMPETENCE
Norway had an average of 88 FTEs (permanent employees)
during 2022, including the discontinued operations (Change
of Ownership insurance). We have in-house underwriting
expertise on all product lines. On claims handling, the only
products handled externally is Health insurance. Centralized
professional forums ensure the best possible accessibility
on competence where needed. Our eciency has improved
further in 2022, but as always our main focus will be on
balancing costs, eciency 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.
2022 PROTECTOR FORSIKRING ANNUAL REPORT 17
SWEDEN
Combined ratio 86.9 % and 20 % growth
GROWTH AND PROFITABILITY
In 2022, total premiums in Sweden amounted to
NOK 2,072.6 million against NOK 1,820.5 million in 2021,
representing 14 % growth (20 % in local currency). The
increase was driven by a low customer churn rate (18 % -
whereas one large client loss explaining approx. 4 %-points),
as well as strong new sales.
The technical result (insurance result) was NOK 225.8
million against NOK 409.9 million in 2021, corresponding to
a net combined ratio of 86.9 % against 73.0 % in 2021.
The claims ratio for own account was 75.0 %, up from 62.8 %
in 2021 and includes run-o gains on previous years’ claims
provisions, as well as a large loss ratio somewhat above the
normal level.
The gross expense ratio was 12.5 % (12.3 %).
DISTRIBUTION AND MARKET
We aim to be the preferred partner for our brokers. In 2022,
we have strengthened our position, both by supporting
brokers in finding acceptable solutions and by broadening
our business to involve more brokers. Our annual broker
satisfaction survey showed that we are on the right track on
quality, but that we still have much room for improvement.
International insurers are still challenged on capacity; they
increase prices and run o products and accounts. This
particularly relates to Property, where we see a hardening
market. On the contrary, the Motor market is softening;
competition increases due to less opportunities elsewhere.
ORGANISATION AND COMPETENCE
Sweden had an average of 95 FTEs (permanent employees)
during 2022.
The Swedish organization hold most expertise in-house,
but Nordic specialty resources support on some P&C
underwriting. Within claims handling, specialty resources are
obtained externally when .
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.
2022 PROTECTOR FORSIKRING ANNUAL REPORT18
DENMARK
Combined ratio 93.7 % and 18 % growth
GROWTH AND PROFITABILITY
In 2022, total premiums in Denmark amounted to
NOK 1,077.2 million against NOK 918.7 million in 2021,
representing 17 % growth (18 % in local currency).
The increase was largely driven by good new sales.
The technical result (insurance result) was NOK 36.5 million
against NOK 64.0 million in 2021, corresponding to a net
combined ratio of 93.7 % against 89.8 % in 2021.
The claims ratio for own account was 86.9 %, up from
82.9 % in 2021 and includes run-o losses on previous
years’ claims provisions as well as a large loss ratio below
the normal level.
The gross expense ratio was 7.0 % (8.4 %).
Profitability varies between our lines of business. Motor
is overall performing well, but certain segments show
late eects from post Covid. Property has experienced
large losses slightly below a normalized level, but is to a
large extend aected by inflation on building materials –
especially on the Housing segment. Workers’ Compensation
has been aected by further run-o losses. We are satisfied
with overall underlying realities, but need to implement
profitability measures within certain products and segments.
Overall, we can conclude that we were too soft on price
increases entering 2022. Inflation continues to aect claims
cost on Property and Motor and necessitates further price
adjustments in 2023.
DISTRIBUTION AND MARKET
We aim to be the preferred partner for our brokers.
Our Broker Satisfaction Index has improved significantly
through an intense focus throughout our value chain.
The performance has improved both within the claims
department and within broker service.
Inflation has been a hot topic for the general insurance
market this year, resulting in significant price increases
and reduced capacity, especially within large property
exposures. This has led to an increasing level of new business
opportunities for us, and it is expected to continue in 2023.
We are setup for further growth through disciplined risk
selection.
ORGANISATION AND COMPETENCE
Denmark had an average of 49 FTEs (permanent
employees) during 2022. Growth necessitates onboarding
of new colleagues, and we have been welcoming many new
faces throughout 2022. We have thereby strengthened
our competences on claims handling, underwriting, risk
management and broker service.
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.
2022 PROTECTOR FORSIKRING ANNUAL REPORT 19
THE UK
Combined ratio 87.6 % and 30 % growth
GROWTH AND PROFITABILITY
In 2022, total premiums in UK amounted to
NOK 2,115.7 million against NOK 1,618.1 million in 2021,
representing 31 % growth (30 % local currency). The
increase was driven by good renewal rates and new sales.
The technical result (insurance result) was NOK 177.2 million
against NOK -44.8 million in 2021, corresponding to a net
combined ratio of 87.6 % against 103.3 % in 2021.
The claims ratio for own account was 74.2 %, down from
87.8 % in 2021 and includes run-o gains on previous years’
claims provisions as well as a large loss ratio below expected
level on Property and Motor.
The gross expense ratio was 12.7 % (14.4 %).
DISTRIBUTION AND MARKET
We aim to be the preferred partner for our brokers and we
receive good feedback on our broker satisfaction surveys.
We have expanded our distribution by adding two new
‘regional’ brokers. Whilst these relationships are new, the
early signs are positive and during 2022 we started planning
for further extension of our distribution and new products
and sectors which we anticipate will come ‘on stream’
during 2023.
The Motor market remained soft during 2022. Whilst we
saw a number of tenders, we were reluctant to adjust our
rates. In addition, we have focussed on conventional risk
transfer cover, which will reduce our renewal book in 2023,
but aligns with our core strategy. We anticipate that the
trading environment will become more favourable in 2023.
Property and Casualty have performed in accordance with
our expectations, driving growth in both areas.
ORGANISATION AND COMPETENCE
UK had an average of 97 FTEs (permanent employees)
during 2022 with management, underwriting, claims
handling, risk management and finance and administration
in-house.
We employed 18 new colleagues in 2022, growing the UK
team by 11 %. Competence continues to be high, and so
future recruitment will again focus on graduate / supporting
roles. ‘One Team’ remains at the forefront of our culture,
with collaborations increasing between the Protector
oces, ensuring that we are once again well positioned to
continue our 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.
2022 PROTECTOR FORSIKRING ANNUAL REPORT20
FINLAND
Combined ratio 91.5 % and 25 % growth
GROWTH AND PROFITABILITY
In 2022, total premiums in Finland amounted to
NOK 222.2 million against NOK 178.2 million in 2021,
representing 25 % growth (25% in local currency).
Adjusted for technicalities in the final premium and run-o
calculations on the Workers’ Compensation product, the
underlying volume development is flat.
The technical result (insurance result) was NOK 14.9 million
against NOK 41.8 million in 2021, corresponding to a net
combined ratio of 91.5 % against 82.1 % in 2021.
The claims ratio for own account was 86.6 %, up from 78.1 %
in 2021 and includes run-o gains on previous years’ claims
provisions as well as a large loss ratio below the normal level.
The gross expense ratio was 5.4 % (5.6 %).
DISTRIBUTION AND MARKET
We aim to be the preferred partner for our brokers.
The service level has been very good within both broker-
and claims service. This is supported by our results in
broker instant feedback (BIF) surveys (99 % satisfied).
The Finnish market is very concentrated; incumbents
control more than 90 % of the market. Protector has
broadened the relationship with several new smaller broker
houses during 2022.
ORGANISATION AND COMPETENCE
Finland had an average 21 FTEs (permanent employees)
in 2022.
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.
2022 PROTECTOR FORSIKRING ANNUAL REPORT 21
INVESTMENTS
The investment portfolio returned 501 MNOK in 2022, with
strong contributions from both fixed income and equities.
We are very satisfied with this result since the markets have
been turbulent this year. However, 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.
After almost 40 years of continuously falling rates, the
raising interest rates was the main event in the investment
portfolio in 2022. Our avg. reference interest rate was
0.5 % entering 2022 and 3.3 % by the end of the year.
With interest rates was around zero percent, we did not
follow common industry practice to match the interest
rate risk in our reserves – it felt like an asymmetric risk
reward. As the interest rates moved into a more normalised
territory, we have increased our interest rate duration in
the bond portfolio to lower our interest rate risk for the
company. Prior to 2022 the investment return has been
hampered by the low interest rate duration.
Performance in the fixed income portfolio always need
to be evaluated trough a full credit cycle. We have so far
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 eect, we expect
slightly lower return than peers in non-crisis years. However,
over time companies that should not have been financed
will cause losses and real risk-adjusted return will be visible.
This strategy of slight underperformance in most periods
and large outperformance during turbulence, has so far paid
o with strong outperformance since insourcing the fixed
income portfolio in 2015.
Historically the bond portfolio has shown very low volatility.
In 2022 the credit duration increased from 1.3 to 2.2 years,
which implies a risk for somewhat higher volatility going
forward.
Every year I spend some time in the annual report on a new
topic. Last year I focused on growth companies since some
shareholders had asked us why we didn’t focus more on the
highest quality growth companies, given the fantastic long
term value creation of some of those companies.
I concluded that you were playing against the odds if you
payed high multiples and implicitly predicting long duration
growth. 2022 was a year where it is tempting to quote
Horace, “Many shall be restored that now are fallen and many
shall fall that now are in honor”, when growth companies and
especially those with low/ no earnings today took a beating.
In capital markets today’s winners generally turn out to be
tomorrow’s losers, and vice versa. This is true for companies
and investment managers alike. When everything looks most
rosy, we should be most afraid.
Our process when investing, is always to make sure that
we have base rate support for our investment strategy.
Our portfolio today has a PE ratio of ~10 on analysts’
expectations on 2023 – with in our minds good prospects
for value creating growth. The growth for these companies’
ex banks/insurance the last 5 years has been a yearly growth
of 7.4 %. Our investments in banks and insurance companies
have been bought at a large discount to the book value and
is still priced at a large discount. Buying based on strong
value, low price relative to value, and depressed general
psychology is likely to provide the best results. Even then,
things can go against us for a long time.
We also get some questions from shareholders on large
positions. This year I will focus on what drives position sizing
for us when it comes to equities.
We learned a valuable lesson in 2018/19 from several very
costly mistakes. To avoid this in the future, the main answer
was not being good at detecting early warning signals for
when an investment case is crumbling but investing in type
of companies and industries where disastrous of outcome is
very unlikely to happen – low level of diculty.
Disciplined approach with focus on limiting downside risk
2022 PROTECTOR FORSIKRING ANNUAL REPORT22
Short time of ownership increases the risk of mistakes.
No matter how good the initial deep-dive and underwriting,
it is impossible to gain the same nuanced expertise level as
we have after 2 years of owning a company,
and continuously having followed up with management.
The large number of new companies in the equity portfolio
seen in 2022, increases the risk for mistakes. As would
be expected most (5 of 6) of the largest (55 %), has been
owned more than 1 year which is somewhat mitigating.
The greater discount to intrinsic value the better. However,
we have seen that the cases with the highest discounts
either became the biggest winners, or the biggest losers.
When it comes to position sizing, down-side risk is more
important than discount. In addition to diculty, factors
such as strong balance sheet, redundancy and so on are
important drivers of position sizing.
If underwriting long duration future growth is dicult, it
is much easier to value a business with a sticky and diverse
customer base – providing an essential product with high
margin stability and pricing power, and a dominating market
position and the like. The lower the diculty, the larger
position.
We have worked on building an extensive watch list of low
level of diculty companies. Many of these watch list
companies will become attractively priced during market
declines or hick-ups in business performance.
However, at times when we have a “falling knife situation”
we also have very high risk of underwriting mistakes.
Therefore, another driver of position sizing is “performance
stage”. We have seen many cases where the business
deterioration just continues, and problems turns out to be
much bigger than initially expected.
To secure good hit ratio we should be careful trying to
catch falling knifes and increase position sizing on improving
business performance in line with investment case.
Business performance stages and hit rate
Deteriorating business performance
Hit rate
Business performance - Performance declining problems often turn out bigger
Share price performance than investors and mgmt. Initially believes
- Ex. Companies:
Lehto, XXL, Pandora, Kindred, GIG, OSS etc.
Stabilized business performance
- Performance have stabilized at a lower level than normal
Improvements actions are being taken, but not already
implemented
Max position
- Ex. Companies: Multiconsult, B3
Larger position Earnings improvement imminent and likely
- Performance are improving and improvement actions are
Small position Larger position
implemented and about to hit the results
- Ex. Companies: BankNordik, Zalaris, Protector
Earnings on normalized levels
- Earnings are back at normalized levels. However, business
performance is not reflected in the share price
- Ex. Companies: Elanders
1
2
3
4
1
2
3
4
2022 PROTECTOR FORSIKRING ANNUAL REPORT 23
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.
In summary we base our position sizing on (a) diculty
(b) Expertise and time of ownership (c) downside risk
(d) discount to intrinsic value (e) case evidence level /
performance stage and finally f) liquidity.
We see the investment case materializing in quite many
of our companies. Possibly (hopefully) it will imply a need
to further recycle the portfolio into new ideas – and with
a process tilting us towards winning big and loosing small
hopefully escape the common faith of today’s winner,
turning tomorrows looser.
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.
Smaller
position/ Exit
Development
does not
support
forecast
Starting point
Investment
case is a
forecast
Larger
position
Investment
case is
materializing
Investment
case has
been
materialized
Even larger
position
Although it is important to reduce the number of times
you are wrong, being wrong is also inevitable. Therefor it’s
important to have a process that tilt us towards winning big
when we are right and loosing small when we are wrong.
Investing is finding something that is mispriced-i.e., where
we have the correct perception and others (the market)
have the wrong perception. For that to happen you need to
have a prediction about the future, that is dierent from the
consensus prediction. The development in evidence that you
are right, and the market is wrong should be an important
driver of position sizing.
Investment and strength of “case evidence”
2022 PROTECTOR FORSIKRING ANNUAL REPORT24
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
Shares in Protector:
Yes, see note 13.
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 and Linstow AS
Regarded as an
independent board
member: Yes
Shares in Protector:
Yes, see note 13.
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
Shares in Protector:
No
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),
- Oce 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
Shares in Protector:
No
BOARD MEMBER
2022 PROTECTOR FORSIKRING ANNUAL REPORT 25
KJETIL GARSTAD TONJE GIERTSEN 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
Shares in Protector:
Yes, see note 13.
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 Gaming
Innovation Group Inc.,
Øgreid AS, B2Holding ASA
and Firda AS
Regarded as an
independent board
member: Yes
Shares in Protector:
Yes, see note 13.
(elected by and amongst
the employees)
Education:
- 1996-2002: Master of
Laws, The University of
Bergen
Experience:
- Senior lawyer/chief
advisor, Protector
forsikring (2017-)
- Lawyer, Advokatfirmaet
Helland Ingebrigtsen DA
(2012-2017)
- Trainee lawyer, Kco
advokater (2008-2012)
- Legal adviser,
Landsforeningen for
trafikkskadde
(2005-2008)
- Senior consultant,
Folketrygd kontoret for
Utenlandssaker (NAV)
(2002-2005)
Board member of
Protector since: 2022
Shares in Protector:
Yes, see note 13.
BOARD MEMBER BOARD MEMBER BOARD MEMBER
2022 PROTECTOR FORSIKRING ANNUAL REPORT26
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 anity
insurance market. The insurances are sold through selected
insurance brokers.
The company commenced its operations in 2004 and was
listed on the Oslo Stock Exchange in 2007.
The company has grown rapidly since its inception, and
today counts over 436 permanent employees, with oces
in Stockholm, Copenhagen, Helsinki, London, Manchester
and Oslo (head oce).
HIGHLIGHTS FOR 2022:
• 19 % growth in gross written premiums
• Combined ratio for own account 88.9 %
• 3.4 % return on the investment portfolio
• 27.4 % return on equity
• Solvency margin 195 %
PREMIUM INCOME
In 2022, gross premiums written increased by 19 % to a total
of NOK 7,097.8 million. In local currencies the growth was
21 %.
Gross premiums earned increased by NOK 795.0 million to
a total of NOK 6,541.0 million.
Premiums earned for own account amounted to
NOK 5,714.6 million, an increase of 16 % compared to 2021.
The reinsurers’ share of premium income is 1.7 percentage
points lower than last year.
Premium growth is driven by the UK and Sweden which
accounts for 71 % of new sales. In the UK, gross written
premiums increased by 31 % to a total of NOK 2,115.7 million.
The growth in the Nordic countries was: 14 % in Sweden to
a total of NOK 2,072.6 million, 14 % in Norway to a total
of NOK 1,610.1 million, 17 % in Denmark to a total of NOK
1,077.2 million and 25 % in Finland to a total of NOK 222.2
million. In local currencies, the growth was 30 % in the UK
and 18 % in the Nordics. The renewal rate was 93 % against
90 % in 2021.
The company is the market leader in the Scandinavian
municipal market. In 2022, the total growth in the municipal
sector was 18 % in local currencies. The growth within the
personal lines of business and other business were 18 % and
17 % respectively. The growth in Sweden was 10 %, 17 % in
Denmark and 19 % in Norway. In the UK and Finland, the
growth rates were 17 % and 34 % respectively. In Denmark,
the public sector accounted for 38 % of total premium
volume, in Sweden 23 %, in Norway 24 %, in the UK 24 %
and in Finland 71 %.
RESULT
The profit before tax amounted to NOK 1,012.0 million
compared to NOK 1,416.3 million in 2021. The strong result
is due to a strong technical result and a strong investment
result. The profit for discontinued operations (change of
ownership insurance) was NOK -2.5 million against
NOK 67.4 million in 2021. The return on the average
equity was 27.4 %, against 35.6 % in 2021.
The claims ratio for own account increased from 77.4 %
in 2021 to 79.3 % in 2022. The expense ratio for own
account amounted to 9.6 %, down from 9.9 % in 2021.
The development in claims and expense ratios results in a
combined ratio for own account of 88.9 %, against 87.3 %
in 2021.
The technical result is driven by strong results in Sweden,
UK and Norway, which all had a net combined ratio below
90 %. Denmark and Finland also contribute positively to the
technical result.
The Covid-19 pandemic had no measurable impact on the
company’s claims cost in 2022. In 2021, the pandemic had a
positive eect of appr. 0,8 percentage points on the claims
ratio for own account, primarily related to Motor as a result
of less trac.
The gross cost ratio decreased from 10.8 % in 2021 to
9.9 % in 2022. The decrease is mainly driven by the
premium growth.
2022 PROTECTOR FORSIKRING ANNUAL REPORT 27
The net result from investments for the company’s total
investment portfolio amounted to NOK 500.6 million,
corresponding to 3.4 %, down from NOK 954.5 million,
corresponding to 6.8 % in 2021. 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 329.8 million,
corresponding to 13.9 %, compared with NOK 669.5 million,
corresponding to 38.9 % in 2021.
The return on the fixed income portfolio amounted to
NOK 170.8 million, corresponding to 1.4 %. In 2021, the
return on the fixed income portfolio was NOK 285.1 million,
corresponding to 2.3 %.
The technical result for discontinued operations (change
of ownership insurance) was NOK -28.0 million and the
result was NOK -2.5 million. As of January 1st 2022, a new
legislation came into force and the company ceased to oer
change of ownership insurance. 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 2022 in Protector Forsikring ASA was
NOK 809.5 million up from NOK 1,204.0 million in 2021.
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 2022 195 %. 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 3,444.7 million,
a decrease of NOK 137.4 million. Dividend payments in
2022 have reduced equity by NOK 947.3 million.
The cash flow statement showed a negative cash flow from
operating activities of NOK 121.4 million. Net cash flow was
negative by NOK 1,319 million. Cash and cash equivalents
amounted to NOK 1,080.3 million at the end of 2022.
The cash flow reduction is due to the allocation of funds
from bank deposits to other financial instruments.
The company’s capital situation and solvency is considered
as satisfactory.
The company had 2,486 shareholders at the end of 2022,
which is 238 more shareholders than at the same time in
2021 (2,248). Foreign shareholders own 30 % percent of the
shares compared to 29 % one year earlier.
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 2021, the company had an investment
portfolio of NOK 14.9 billion, of which 82.1 % was invested
in interest-bearing instruments and 17.9 % in equities. The
share invested in equities has increased by 2.8 percentage
points during 2022. The duration in the fixed income
portfolio at the end of 2022 was 2.5 years, compared to 0.4
years at the end of 2021. Management of interest rate risk
is part of the company’s capital assessment process. The
interest rate risk is considered to be acceptable.
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.
2022 PROTECTOR FORSIKRING ANNUAL REPORT28
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 87.4 % at the end
of 2022.
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 2022, the credit duration in the
interest-rate portfolio was 2.2 years, up from 1.3 years
in 2021. The average credit rating for the issuers in the
portfolio is A- at the end of 2022, unchanged from the end
of 2021. The credit risk in the fixed income portfolio has
increased somewhat during 2022.
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. 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 2022 no
risk conditions that were not adequately controlled. The
operational risk is considered to be low.
2022 PROTECTOR FORSIKRING ANNUAL REPORT 29
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 relates to factors of importance for
sustainable social development. By safeguarding human
rights, a good working life, climate, environment and anti-
corruption, we shall contribute to sustainable value creation
both for society and for 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 72 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
page 66.
REMUNERATION OF EXECUTIVE PERSONNEL
The purpose of Protector’s remuneration policy is to attract
employees with the skills the company needs, to further
develop and retain key skills and to motivate long-term and
continuous progress in order to achieve Protector’s goals.
As an overall approach, Protector’s policy must be aimed
at oering an overall compensation that is competitive so
that the company can attract and retain the most talented
employees.
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 15 February 2023 paid an
additional dividend of NOK 494.3 million (equivalent to
NOK 6.00 per share) based on the 2021-result. The paid
dividend is included in other equity as of 31.12.2022.
2022 PROTECTOR FORSIKRING ANNUAL REPORT30
PROSPECTS
The underlying profitability is good, and with continued
price increases to counter claims inflation, the technical
result is expected to remain on a good level.
Entering 2023, the company has experienced a continuing
low client churn. In January, our largest inception month,
the company experienced 17 % growth in local currencies
supported by price increases countering for claims inflation.
However, the January volume has a less significance for the
company’s annual premium growth than historically. The
inception dates in the UK and Sweden (ie the countries with
the highest premium volume) are more spread throughout
the year.
The claims development, and the inherent volatility of
capital markets continue to be the most important risk
factors that could aect the company’s profit in 2023.
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, March 2nd 2023
The Board of Directors of Protector Forsikring ASA
Translation - not to be signed
Jostein Sørvoll
(Chairman)
Arve Ree
(Deputy Chair)
Else Bugge Fougner Kjetil Garstad
Mathews Ambalathil Randi Helene Røed Tonje Giertsen Henrik Golfetto Høye
(CEO)
312022 PROTECTOR FORSIKRING ANNUAL REPORT
INCOME STATEMENT
[1.000 NOK] Notes 2022 2021
PREMIUM INCOME
Gross premiums earned 6 541 036 5 746 076
Reinsurers’ share of earned premiums (826 441) (825 339)
Earned premiums, net of reinsurance 6 5 714 595 4 920 737
Other insurance-related income 11 856 8 716
CLAIMS COST
Gross claims incurred (5 184 191) (4 468 397)
Reinsurers’ share of claims incurred 650 183 658 334
Claims incurred, net of reinsurance 6 (4 534 008) (3 810 063)
OPERATING EXPENSES
Sales costs 18 (386 588) (361 665)
Administration costs 7,8,14,19-21 (262 765) (256 615)
Commission from reinsurers 101 659 130 701
Total operating expenses, net of reinsurance (547 694) (487 578)
Other insurance-related expenses (45 150) (37 410)
Technical result 599 599 594 401
NET INCOME FROM FINANCIAL ASSETS
Income from investments in associated companies 20 063 10 827
Interest income and dividend from financial assets 457 813 331 664
Changes in value on investments (122 791) (21 830)
Realised gain and loss on investments 156 276 620 595
Administration expenses related to investments, including interest expenses (34 367) (62 930)
Total net financial income 22 476 993 878 325
Other income 823 1 993
Other expenses (65 414) (58 381)
Total other income/expenses (64 590) (56 388)
Non-technical result 412 403 821 937
Profit before tax 1 012 002 1 416 338
Tax 15 (166 694) (251 656)
Profit from continued operations 845 308 1 164 682
Discontinued operations 27 (2 521) 67 428
Profit before components of comprehensive income 842 788 1 232 110
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)
Tax on other comprehensive income that will not be reclassified subsequently to profit or loss 15 - 257
Total other comprehensive income that will not be reclassified subsequently to profit or loss - (771)
Other comprehensive income that will be reclassified subsequently to profit or loss
Exchange dierences from foreign operations (44 414) (36 487)
Tax on other comprehensive income that will be reclassified subsequently to profit or loss 11 103 9 122
Total other comprehensive income that will be reclassified subsequently to profit or loss 15 (33 310) (27 365)
Total other comprehensive income (33 310) (28 136)
Profit for the period 809 477 1 203 973
32 2022 PROTECTOR FORSIKRING ANNUAL REPORT
STATEMENT OF FINANCIAL POSITION
[1.000 NOK] Notes 31.12.2022 31.12.2021
ASSETS
INTANGIBLE FIXED ASSETS
Other intangible fixed assets 7 95 944 73 336
Total intangible fixed assets 95 944 73 336
FINANCIAL ASSETS
Shares in associated companies - 127 330
Shares at fair value 2 522 945 1 824 416
Securities, bonds etc 10 832 101 9 179 328
Financial derivatives 65 744 94 133
Bank deposits investment portfolio 839 781 1 935 562
Total financial assets 4, 9 14 260 572 13 160 769
REINSURERS SHARE OF GROSS TECHNICAL PROVISIONS
Reinsurers share of gross premium provisions 226 056 177 089
Reinsurers share of gross claims provisions 2 842 600 2 972 195
Total reinsurers share of gross technical provisions 6 3 068 656 3 149 285
RECEIVABLES
Policyholders 691 181 523 216
Other receivables 29 535 95 258
Total receivables 10 720 716 618 474
OTHER ASSETS
Tangible fixed assets 8 28 971 33 994
Cash and bank deposits 11 198 486 299 836
Total other assets 227 457 333 829
Prepaid expenses and accrued, not received income 12 697 705 462 534
Assets discontinued operations 27 878 325 1 448 049
Total assets 19 949 375 19 246 276
332022 PROTECTOR FORSIKRING ANNUAL REPORT
STATEMENT OF FINANCIAL POSITION
[1.000 NOK] Notes 31.12.2022 31.12.2021
EQUITY AND LIABILITIES
SHAREHOLDERS’ EQUITY
Share capital [82.500.000 shares of nominal NOK 1] 13 82 500 82 500
Own shares 13 (123) (128)
Other paid-in equity 267 677 267 677
Total paid-in equity 350 055 350 049
EARNED EQUITY
Natural perils capital 62 694 97 748
Guarantee scheme 72 783 78 163
Fund for valuation dierences - 9 958
Other equity 2 959 201 3 046 211
Total earned equity 3 094 678 3 232 081
Total equity 3 444 732 3 582 130
Subordinated loan capital 9, 25 1 244 711 1 384 664
TECHNICAL PROVISIONS
Provisions for unearned premiums 2 111 786 1 575 464
Provisions for claims 3 9 387 111 8 404 103
Total technical provisions 6 11 498 897 9 979 567
PROVISIONS FOR LIABILITIES
Current tax liability 15 120 202 191 229
Deferred tax liability 15 42 771 121 582
Total provisions for liabilities 162 973 312 810
LIABILITIES
Liabilities in connection with direct insurance 16 107 525 73 384
Liabilities in connection with reinsurance 16 2 094 968 2 238 317
Financial derivatives 4, 9, 16 54 806 26 146
Other liabilities 16 271 176 286 557
Total liabilities 4, 16 2 528 475 2 624 404
Incurred expenses and prepaid income 17 555 152 528 917
Liabilities discontinued operations 27 514 435 833 784
TOTAL EQUITY AND LIABILITIES 19 949 375 19 246 276
Oslo, March 2nd 2023
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
Mathews Ambalathil Randi Helene Røed Tonje Giertsen Henrik Golfetto Høye
(CEO)
34 2022 PROTECTOR FORSIKRING ANNUAL REPORT
CASH FLOW STATEMENT
[1.000 NOK] 2022 2021
CASH FLOW FROM OPERATIONS
Premiums paid 6 737 378 5 884 296
Claims paid (4 548 947) (3 934 521)
Paid reinsurance (146 733) (351 838)
Paid operating expenses including commissions (551 855) (440 102)
Interest / dividend income 482 401 358 106
Net payments from financial instruments (1 792 240) (372 106)
Payable tax (301 381) (173 890)
Net cash flow from operations (121 377) 969 945
CASH FLOW FROM INVESTMENT ACTIVITIES
Investments in fixed assets (43 754) (52 815)
Net cash flow from investment activities (43 754) (52 815)
CASH FLOW FROM FINANCIAL ACTIVITIES
Dividend paid (947 280) (659 536)
Repayment of subordinated loan capital (see note 25) (139 953) (439 000)
Payment of subordinated loan capital (see note 25) 350 628
Interest payments on subordinated loan capital (66 648) (61 616)
Net cash flow from financial activities 1 153 881 809 524
Net cash flow for the period (1 319 012) 107 606
Net change in cash and cash equivalents (1 319 012) 107 606
Cash and cash equivalents opening balance 2 407 229 2 312 148
Eects of exchange rate changes on cash and cash equivalents (7 889) (12 525)
CASH AND CASH EQUIVALENTS CLOSING BALANCE 1 080 328 2 407 229
352022 PROTECTOR FORSIKRING ANNUAL REPORT
¹ The company has reclassified parts of the Natural perils capital to other earned equity with TNOK 43,169. The reclassification was made to
correct an error for the past 10 years where the company has mistakenly not claimed coverage for administration costs linked to the natural
perils capital which the company believes is authorized in section 11 first paragraph of the Regulations on instructions for the Norwegian
Natur Damage Pool.
STATEMENT OF CHANGES IN EQUITY
[1.000 NOK]
Share
Capital
Own
shares
Other
paid-
in equity
Natural
perils
capital
Guarantee
scheme
provision
Fund for
valuation
dierences
Other equity
Total equity
Equity as at 31.12.2020 86 156 (4 269) 267 677 70 153 84 875 2 525 882 3 030 473
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 for the year 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
1.1- 31.12.2022
Change own shares 5 39 44
Total equity before profit for the year 82 500 (123) 267 677 97 748 78 163 9 958 3 046 249 3 582 174
Profit for the year (9 958) 819 436 809 477
Value changes in synthetic shares 361 361
Dividend paid (947 280) (947 280)
Total equity before fund provisions 82 500 (123) 267 677 97 748 78 163 - 2 918 766 3 444 732
Provisions to obliged fund gross 8 115 (5 381) (2 734) -
Reclassification of administration cost
1
(43 169) (43 169) -
EQUITY AS AT 31.12.2022 82 500 (123) 267 677 62 694 72 783 - 2 959 201 3 444 732
36 2022 PROTECTOR FORSIKRING ANNUAL REPORT
ACCOUNTS AND NOTES
NOTE 1 ACCOUNTING PRINCIPLES
Generelt
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
Protector has not implemented any new accounting standards with
eect from 1 January 2022.
New accounting standards that have not entered into force
The Ministry of Finance has adopted changes to the accounting rules
for insurance companies as a result of IFRS 17. The changes come into
force with eect for accounting years starting from January 1st 2023
or later. This means that Protector will report according to full IFRS
from January 1st 2023. The main change from NGAAP to full IFRS
is related to IFRS 17 Insurance contracts. This new standard replaces
IFRS 4 Insurance contracts and introduces new requirements for re-
cognition, measurement, presentation and information about issued
insurance contracts. The purpose of the new standard is to establish
a uniform practice for accounting for insurance contracts.
The standard comes into force from 1 January 2023.
Other standards that will be implemented in 2023, as a result of the
transition to full IFRS, are IFRS 9 Financial Instruments and IFRS 16
Leases.
For IFRS 9, the assessment is that this will not have any significant
eect on the balance sheet or profit and loss based on the fact that
Protector has chosen to measure all financial assets at fair value
through profit or loss (FVTPL).The implementation of IFRS 9 will not
aect Protector’s recognition and measurement.
The implementation of IFRS 16 is not expected to aect the profit
and loss significant, but will have some eect on the balance sheet
and classification in the profit and loss statement.
See note 28 for further information of the transition eects to IFRS.
Foreign currency
The 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 dierences 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 receivables 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. Adjust-
ments 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.
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.
372022 PROTECTOR FORSIKRING ANNUAL REPORT
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.
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.
Recognition and derecognition
Financial assets and liabilities are included in the statement of
financial 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
profit 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 eective
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 eort 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 dierences 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
comparative 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.
38 2022 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 aect
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 aects this period,
or both in the period the estimates change and in future periods if
the changes aect 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. Products
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
eected 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 sucient 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 achieve diversification in the
various types of insurance risk as well as to achieve a suciently large
insurance portfolio within each category, so that the variance in the
expected result is reduced.
Premium risk
Premium risk is the risk related to whether charged premiums are
sucient 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 sucient 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.
392022 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.
The table below shows how total claims in Protector Forsikring develop
over time.
CASH FLOW CONNECTED TO CLAIMS PROVISIONS FOR OWN ACCOUNT
Future cash flow related to claims incurred
[1.000 NOK] At
31. December 2022
0 - 5
years
6 - 10
years
11 - 15
years
16 - 20
years
More than
20 years
Claims provisions for
own account 6 544 511 5 020 133 1 049 973 355 467 62 127 56 811
GROSS CLAIMS DEVELOPMENT
[1.000 NOK] 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total
2013 1 157 525 1 157 525
2014 1 144 521 1 435 072 2 579 593
2015 1 145 918 1 400 422 1 793 811 4 340 151
2016 1 124 848 1 447 439 1 744 304 2 288 759 6 605 350
2017 1 087 996 1 390 333 1 722 230 2 359 937 3 554 617 10 115 112
2018 1 074 835 1 353 262 1 708 699 2 341 456 3 483 932 3 882 631 13 844 815
2019 1 065 100 1 330 017 1 728 158 2 410 805 3 505 709 3 991 883 4 318 733 18 350 405
2020 1 066 438 1 379 293 1 798 728 2 551 554 3 535 339 4 104 664 4 329 862 4 018 661 22 784 539
2021 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 26 804 902
Estimated amount as at
31.12.2022
1 050 027 1 385 914 1 858 490 2 534 408 3 605 280 4 237 260 4 409 109 3 955 797 3 876 315 4 826 144 31 738 743
Total disbursed 984 108 1 229 023 1 588 252 2 079 662 2 753 871 3 499 600 3 401 795 2 858 594 2 538 180 1 899 140 22 832 225
Provisions for claims 65 919 156 891 270 238 454 746 851 409 737 660 1 007 314 1 097 203 1 338 135 2 927 004 8 906 518
Provisions for claims from
claims prior years (before
2013)
63 454
Provision for indirect claims
handling costs (ULAE)
417 138
Total provisions for claims 9 387 110
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.
40 2022 PROTECTOR FORSIKRING ANNUAL REPORT
EFFECT ON PROFIT BEFORE TAX NOK 1.000 2022 2021
1 % change in insurance-related operating expenses 5 477 4 876
1 % change in claims incurred 45 340 38 101
1 % - point change in combined ratio 57 146 49 207
1 % - point change in inflation 221 081 197 388
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 aected by several
factors. The dierent factors will depend on the products, or lines of
business considered. An increase in the frequency of claims can be
due to seasonal eects and more sustainable eects. 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 eect 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 aect 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 305.7 million before tax.
This corresponds to an interest rate sensitivity of approximately 2.5 per cent, and includes the use of interest rate swaps.
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 2022
Less than one
year
1 - 3 years More than 3 years Total cash flow
Total carrying
amount
Subordinated loan capital*) 85 730 670 155 810 467 1 566 352 1 244 711
Foreign exchange derivatives 54 806 54 806 54 806
Liabilities 3 028 821 3 028 821 3 028 821
Total financial liabilities 3 169 357 670 155 810 467 4 649 980 4 328 338
*)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.
412022 PROTECTOR FORSIKRING ANNUAL REPORT
Rating Investments allocated per rating category
[1.000 NOK] 2022 2021
Bonds and other fixed-income securities
AAA 3 065 587 3 423 642
AA 546 490 186 161
A 872 037 470 341
BBB 661 554 435 861
BB 323 679 67 538
B 34 543
No rating 4 849 613 3 670 970
Total bond by rating 10 353 503 8 254 514
Bond fund not managed by Protector 1 014 119 1 721 257
Total bonds and other fixed-income securities 11 367 622 9 975 771
Bank deposits related to investment portfolio
AA 220 702 422 622
A 531 269 1 264 254
BBB 65 646
No rating 129 327 350 978
Total bank deposits related to investment portfolio 881 299 2 103 501
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 invest-
ment management accordingly to changes in risk related to the dierent 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 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.
Credit Risk
42 2022 PROTECTOR FORSIKRING ANNUAL REPORT
NOTE 5 SEGMENT INFORMATION
Total
Norway
2
Sweden Denmark UK Finland
[1.000 NOK] 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Gross written premiums
1
1 610 121 1 415 046 2 072 621 1 820 477 1 077 187 918 677 2 115 676 1 618 145 222 177 178 227 7 097 782 5 950 571
Gross premiums earned
1 578 766 1 398 303 1 942 060 1 749 251 1 038 309 880 189 1 770 808 1 460 516 211 092 257 817 6 541 036 5 746 076
Gross claims incurred
(1 335 143) (1 088 567) (1 410 609) (1 038 146) (970 797) (904 643) (1 284 873) (1 237 627) (182 770) (199 414) (5 184 191) (4 468 397)
Earned premiums, net of reinsurance
1 434 441 1 245 353 1 730 095 1 512 322 929 937 761 435 1 427 074 1 170 932 193 048 230 694 5 714 595 4 920 737
Other insurance-related income
4 270 3 978 359 367 136 532 5 635 2 183 1 456 1 656 11 856 8 716
Claims incurred, net of reinsurance
(1 201 203) (1 021 827) (1 298 162) (949 203) (807 927) (631 268) (1 059 557) (1 027 591) (167 159) (180 174) (4 534 008) (3 810 063)
Sales costs
(45 723) (56 598) (160 715) (138 470) (26 549) (26 990) (148 264) (135 456) (5 337) (4 151) (386 588) (361 665)
Administration costs
(52 879) (49 020) (81 653) (75 851) (46 287) (46 935) (75 981) (74 629) (5 965) (10 179) (262 765) (256 615)
Commission from reinsurers
19 657 16 501 36 684 59 961 9 614 21 061 33 814 28 107 1 891 5 071 101 659 130 701
Other insurance-related expenses
(13 451) (14 868) (780) 788 (22 384) (13 816) (5 528) (8 386) (3 005) (1 129) (45 150) (37 410)
Technical result
145 112 123 519 225 827 409 916 36 539 64 020 177 194 (44 841) 14 928 41 787 599 599 594 401
Other income/expenses
(64 794) (57 680) (569) (788) 236 27 633 2 084 (96) (31) (64 590) (56 388)
Net financial income
437 335 758 345 16 999 98 894 (11 382) (1 430) 39 708 6 365 (5 666) 16 151 476 993 878 325
Profit before tax
517 652 824 184 242 258 508 021 25 392 62 618 217 535 (36 392) 9 166 57 906 1 012 002 1 416 338
Claims ratio, net of reinsurance
1
83.7 % 82.1 % 75.0 % 62.8 % 86.9 % 82.9 % 74.2 % 87.8 % 86.6 % 78.1 % 79.3 % 77.4 %
Expense ratio, net of reinsuranc
1
5.5 % 7.2 % 11.9 % 10.2 % 6.8 % 6.9 % 13.3 % 15.5 % 4.9 % 4.0 % 9.6 % 9.9 %
Combined ratio, net of reinsurance
1
89.2 % 89.2 % 86.9 % 73.0 % 93.7 % 89.8 % 87.6 % 103.3 % 91.5 % 82.1 % 88.9 % 87.3 %
Claims ratio gross
1
84.6 % 77.8 % 72.6 % 59.3 % 93.5 % 102.8 % 72.6 % 84.7 % 86.6 % 77.3 % 79.3 % 77.8 %
Cost ratio gross
1
6.2 % 7.6 % 12.5 % 12.3 % 7.0 % 8.4 % 12.7 % 14.4 % 5.4 % 5.6 % 9.9 % 10.8 %
Combined ratio gross
1
90.8 % 85.4 % 85.1 % 71.6 % 100.5 % 111.2 % 85.2 % 99.1 % 91.9 % 82.9 % 89.2 % 88.5 %
¹ Defined as alternative performance measure (APM). APMs are described on www.protectorforsikring.no in document named APMs Protector Forsikring 2022.
² Does not include discontinued operations (change of ownership).
432022 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 215 856 140 586 347 492 792 758 1 631 284 15 675 2 942 705 641 643 1 580 6 729 580 370 773 7 100 352
Reinsurers’ share of gross premiums written -34 292 -14 359 -27 861 -95 694 -118 072 -1 233 -414 163 -123 462 -128 -829 264 -37 997 -867 261
Premiums written for own account 181 564 126 227 319 632 697 063 1 513 212 14 442 2 528 542 518 181 1 452 5 900 316 332 775 6 233 091
PREMIUM EARNED
Gross premiums earned 203 890 138 955 340 703 759 741 1 475 902 15 413 2 672 982 572 816 1 599 6 182 001 361 606 6 543 607
Reinsurers’ share of gross premiums earned -25 013 -12 572 -27 861 -95 694 -118 072 -1 233 -389 560 -123 020 -128 -793 152 -33 507 -826 659
Premiums earned for own account 178 878 126 383 312 842 664 046 1 357 830 14 180 2 283 423 449 797 1 472 5 388 849 328 098 5 716 948
CLAIMS
Gross claims incurred 133 841 148 714 511 397 750 975 1 014 089 5 097 1 855 048 509 417 932 4 929 510 297 967 5 227 477
Reinsurers’ share of gross claims incurred -13 328 -15 771 -154 419 -100 069 -86 602 -408 -161 881 -109 249 -75 -641 801 -27 186 -668 987
Claims incurred, net of reinsurance 120 513 132 943 356 978 650 906 927 487 4 690 1 693 167 400 167 858 4 287 709 270 781 4 558 490
GROSS CLAIMS INCURRED
Occurred this year 83 274 165 423 701 089 779 382 989 071 3 199 1 716 965 554 677 428 4 993 507 283 765 5 277 272
Occurred previous years 50 568 -16 709 -189 692 -28 407 25 018 1 898 138 082 -45 260 504 -63 997 14 202 -49 796
Total for the accounting year 133 841 148 714 511 397 750 975 1 014 089 5 097 1 855 048 509 417 932 4 929 510 297 967 5 227 477
CLAIMS INCURRED NET OF REINSURANCE
Occurred this year 74 727 145 580 418 334 644 092 898 995 2 943 1 582 960 398 451 394 4 166 474 258 298 4 424 773
Occurred previous years 45 787 -12 637 -61 356 6 814 28 493 1 746 110 207 1 717 464 121 234 12 482 133 717
Total for the accounting year 120 513 132 943 356 978 650 906 927 487 4 690 1 693 167 400 167 858 4 287 709 270 781 4 558 490
TECHNICAL PROVISIONS GROSS
Provisions for unearned premiums 36 507 37 819 (116 595) 276 224 479 140 4 242 1 076 990 253 733 25 2 048 084 63 703 2 111 786
Provisions for claims 344 302 660 271 3 093 488 1 404 719 298 944 7 975 2 090 344 1 766 585 607 9 667 235 136 973 9 804 208
Technical provisions gross 380 809 698 089 2 976 893 1 680 943 778 083 12 217 3 167 334 2 020 318 632 11 715 318 200 676 11 915 994
TECHNICAL PROVISIONS NET OF REINSURANCE
Provisions for unearned premiums 24 612 33 048 (107 268) 254 126 440 808 3 902 958 853 223 126 23 1 831 232 54 498 1 885 730
Provisions for claims 311 488 576 643 1 366 815 1 167 445 275 028 7 337 1 767 430 1 194 773 558 6 667 519 124 422 6 791 940
Technical provisions net of reinsurance 336 101 609 691 1 259 547 1 421 571 715 837 11 240 2 726 284 1 417 899 582 8 498 751 178 920 8 677 670
1
Premiums comprise of insurance premiums in Norway, Sweden, Denmark, Finland and UK. See note 5 for segment information.
2
Defined as alternative performance measure (APM). APMs are described on www.protectorforsikring.no in document named APMs Protector Forsikring 2022.
General insurance Life insurance
44 2022 PROTECTOR FORSIKRING ANNUAL REPORT
NOTE 7 INTANGIBLE ASSETS
[1.000 NOK] 2022 2021
Costs as at 01.01. 190 773 157 255
Convention dierence (170) (401)
Additions 35 286 33 919
Scrapping (711)
Costs as at 31.12 225 179 190 773
Accumulated depreciation at 01.01 (113 345) (99 361)
This year’s depreciation (13 711) (14 319)
Currency dierence 170 335
Scrapping 711
Write-downs 37 37
Accumulated depreciation at 31.12 (126 139) (113 308)
Intangible assets connected to discontinued operations 3 096 4 128
Net book value as at 31.12 95 944 73 336
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] Oce
machinery
Furniture and
fixtures
Art 2022 2021
Cost as at 01.01 52 866 23 198 216 76 280 80 826
Currency dierence 20 203 223 (734)
Additions 7 651 817 8 468 18 897
Scrapping - (22 708)
Cost as at 31.12 60 537 24 218 216 84 971 76 280
Accumulated depreciation at 01.01 (30 027) (12 260) (42 287) (50 382)
Currency dierence (19) (41) (60) 499
This year’s depreciation (10 772) (2 882) (13 654) (15 112)
Scrapping - 22 707
Accumulated depreciation at 31.12 (40 817) (15 183) - (56 000) (42 287)
Net book value as at 31.12 19 720 9 035 216 28 971 33 994
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
452022 PROTECTOR FORSIKRING ANNUAL REPORT
NOTE 7 INTANGIBLE ASSETS
[1.000 NOK] 2022 2021
Costs as at 01.01. 190 773 157 255
Convention dierence (170) (401)
Additions 35 286 33 919
Scrapping (711)
Costs as at 31.12 225 179 190 773
Accumulated depreciation at 01.01 (113 345) (99 361)
This year’s depreciation (13 711) (14 319)
Currency dierence 170 335
Scrapping 711
Write-downs 37 37
Accumulated depreciation at 31.12 (126 139) (113 308)
Intangible assets connected to discontinued operations 3 096 4 128
Net book value as at 31.12 95 944 73 336
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
31.12.22
Fair value
31.12.22
Book value
31.12.21
Fair value
31.12.21
Shares in associated companies - - 138 377 174 128
Shares 2 647 676 2 647 676 1 982 711 1 982 711
Bonds and other fixed-income securities 11 367 622 11 367 622 9 975 771 9 975 771
Financial derivatives 68 994 68 994 102 300 102 300
Bank deposits related to investments 881 299 881 299 2 103 501 2 103 501
Total financial assets at fair value through profit or loss 14 965 590 14 965 590 14 302 660 14 338 410
Financial assets discontinued operations 705 018 705 018 1 141 891 1 144 745
Financial assets continued operations 14 260 572 14 260 572 13 160 769 13 193 665
Financial derivatives 54 806 54 806 26 146 26 146
Total financial liabilities at fair value through profit or loss 54 806 54 806 26 146 26 146
[1.000 NOK] Currency Fair value Identification no.
Norwegian companies
FBD Holdings PLC EUR 371 792
Elanders AB Class B SEK 276 038
B3 Consulting Group AB SEK 222 202
eWORK Group AB SEK 200 401
VBG GROUP AB ser. B SEK 188 908
BankNordik P/F DKK 184 509
Danske Bank A/S DKK 159 756
Schouw & Co. A/S DKK 140 294
Jyske Bank A/S DKK 131 543
Indus Holding AG EUR 125 041
Duni AB SEK 109 579
Lassila And Tikanoja EUR 87 402
Columbus A/S DKK 77 172
Kindred Group plc SEK 76 789
Axxelerator NOK 39 257
Projektengagemang Sweden AB ser. B SEK 35 691
Solid Försäkringsaktiebolag SEK 35 422
Brdr.Hartmann A/S DKK 29 289
Zalaris ASA NOK 29 249 981 953 134
NRC Group ASA NOK 26 951 910 686 909
Webstep ASA NOK 24 800 996 394 638
SAF Holland SA EUR 17 396
Amsterdam Commodities N.V. EUR 15 472
Scanfil Oyj EUR 14 165
Christian Berner Tech Trade AB SEK 9 906
Verkkokauppa.com Oyj EUR 9 687
Innofactor PLC EUR 4 928
Westwing Group AG EUR 3 985
Forsikringsakademiet DKK 52
Total shares 2 647 676
The share portfolio consist of shares listed on the stock exchange in Norway, Sweden, Denmark, Finland, Ireland and Canada.
Forsikringsakademiet is not listed and Axxelerator which is a PE-fond. The share portfolio is diversified, but aected by fluctuations in the stock
market, in addition to the regular development in each company.
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
SHARES
46 2022 PROTECTOR FORSIKRING ANNUAL REPORT
BONDS AND OTHER FIXED-INCOME SECURITIES
[1.000 NOK] Fair value Duration
Government bonds etc. 2 475 577 1.76
Corporate bonds etc. 7 877 926 1.54
Bond fund 1 014 119 2.08
Total bonds and other fixed-income securities year 2022
1
11 367 622 1.64
- of this, subordinated loan capital in other companies 2022 176 955 0.91
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
1
Exclusive renteswaps
Average yield adjusted for currency hedging eect is 6.0 %. 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 368 088 2 240 278 39 309 2 647 676
Bonds and other fixed-income securities 11 258 492 109 130 11 367 622
Bank deposits 881 299 881 299
Derivatives:
Interest rate swaps 6 287 6 287
Foreign exchange contracts 43 428 43 428
Options 19 279 19 279
Total assets year 2022 1 249 387 13 567 764 148 440 14 965 590
Total assets year 2021 2 606 444 11 557 839 - 14 164 283
[1.000 NOK] Financial liabilities at fair value through profit or loss Level 1 Level 2 Level 3 Total
Foreign exchange contracts (54 806) (54 806)
Total financial liabilities year 2022 - (54 806) - (54 806)
Total financial liabilities year 2021 - (26 146) - (26 146)
[1.000 NOK] Financial liabilities at amortized cost Level 1 Level 2 Level 3 Total fair
value
Total book
value
Subordinated loan capital (1 244 711) (1 244 711) (1 244 711)
Total financial liabilities year 2022 (1 244 711) (1 244 711) (1 244 711)
Total financial liabilities year 2021 (1 384 664) (1 384 664) (1 384 668)
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 dierent 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 approxi-
mately NOK 20 million or more. Based on this, the equities are regarded as suciently 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
limited 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.
472022 PROTECTOR FORSIKRING ANNUAL REPORT
NOTE 10 RECEIVABLES
[1.000 NOK] 2022 2021
Receivable tax 175 17 821
External claims handlers 21 358 37 845
Other receivables 8 002 39 591
Total 29 535 95 258
NOTE 12 PREPAID EXPENSES AND DEFERRED INCOME
[1.000 NOK] 2022 2021
Prepaid expenses 197 676 218 579
Accrued non-invoiced premium 500 029 243 955
Total 697 705 462 534
NOTE 11 RESTRICTED BANK DEPOSITS
[1.000 NOK] 2022 2021
Restricted bank deposits in connection with claims settlement 768 -
Employee withholding tax 8 394 8 769
Total 9 161 8 769
48 2022 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 31.12.2022.
List of the 20 major shareholders at 31.12.2022 No.of shares Ownership share
in percent
Awc AS 11 053 448 13.4 %
Stenshagen Invest AS 7 526 353 9.1 %
Citibank Europe plc 4 456 162 5.4 %
Verdipapirfond Odin Norden 4 261 885 5.2 %
Verdipapirfondet Alfred Berg Gambak 3 836 334 4.7 %
Clearstream Banking S.A. 2 840 216 3.4 %
Hvaler Invest AS 2 038 610 2.5 %
Mp Pensjon Pk 1 833 301 2.2 %
Artel AS 1 800 000 2.2 %
Vevlen Gård AS 1 550 000 1.9 %
Utmost Paneurope Dac 1 456 119 1.8 %
Pershing LLC 1 266 463 1.5 %
Danske Bank A/S 1 217 123 1.5 %
State Street Bank And Trust Comp 1 011 257 1.2 %
State Street Bank And Trust Comp 995 464 1.2 %
Verdipapirfondet Alfred Berg Aktiv 955 638 1.2 %
Johan Vinje AS 937 841 1.1 %
Avanza Bank AB 931 035 1.1 %
Verdipapirfondet Alfred Berg Norge 834 371 1.0 %
AAT Invest AS 800 000 1,0 %
Total 51 601 620 62.5 %
Protector Forsikring ASA 122 551 0.1 %
Other shareholders 30 775 829 37.3 %
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 31.12.2022 Identification No.of shares
Ownership share
in percent
Reeco AS Deputy Chairman, Arve Ree 709 917 0.9 %
Alsøy Invest AS Chairman of the Board, Jostein Sørvoll 502 751 0.6 %
Ditlev de Vibe Vanay Chief Financial Ocer 276 249 0.3 %
Hans Didring Deputy CEO 282 236 0.3 %
Henrik Golfetto Høye CEO 240 926 0.3 %
Steel City AS Board member, Kjetil Andreas Garstad 206 706 0.3 %
Dag Marius Nereng Chief Investment Ocer 108 383 0.1 %
Øvre Gjøvik Gård AS Deputy Chairman, Arve Ree 90 061 0.1 %
Christoer Skyrud Deputy employees’ representative 19 331 0.0 %
Leonard Bijl IT Director 11 439 0.0 %
Kjetil Andreas Garstad Board member 9 684 0.0 %
Cathrine Wessel Poulsen Deputy employees’ representative 5 456 0.0 %
Fredrik Landelius Country Manager Sverige 5 031 0.0 %
Stuart Winter Country Manager UK 4 342 0.0 %
Tonje Svartberg Giertsen Employees’ representative 3 200 0.0 %
Anders Blom Monberg Country Manager Denmark 2 784 0.0 %
Mathews Ambalathil Employees’ representative 1 187 0.0 %
Total 2 479 683 3.0 %
492022 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 31.12.2022.
List of the 20 major shareholders at 31.12.2022 No.of shares Ownership share
in percent
Awc AS 11 053 448 13.4 %
Stenshagen Invest AS 7 526 353 9.1 %
Citibank Europe plc 4 456 162 5.4 %
Verdipapirfond Odin Norden 4 261 885 5.2 %
Verdipapirfondet Alfred Berg Gambak 3 836 334 4.7 %
Clearstream Banking S.A. 2 840 216 3.4 %
Hvaler Invest AS 2 038 610 2.5 %
Mp Pensjon Pk 1 833 301 2.2 %
Artel AS 1 800 000 2.2 %
Vevlen Gård AS 1 550 000 1.9 %
Utmost Paneurope Dac 1 456 119 1.8 %
Pershing LLC 1 266 463 1.5 %
Danske Bank A/S 1 217 123 1.5 %
State Street Bank And Trust Comp 1 011 257 1.2 %
State Street Bank And Trust Comp 995 464 1.2 %
Verdipapirfondet Alfred Berg Aktiv 955 638 1.2 %
Johan Vinje AS 937 841 1.1 %
Avanza Bank AB 931 035 1.1 %
Verdipapirfondet Alfred Berg Norge 834 371 1.0 %
AAT Invest AS 800 000 1,0 %
Total 51 601 620 62.5 %
Protector Forsikring ASA 122 551 0.1 %
Other shareholders 30 775 829 37.3 %
Total number of shares 82 500 000 100.0 %
NOTE 15 TAXES
[1.000 NOK] 2022 2021
THIS YEAR’S TAXES ARE DIVIDED BETWEEN
Payable tax 226 133 271 744
Correction previous years 3 212 (12 007)
Change in deferred tax (78 811) (2 890)
Tax discontinued operations (5 056) 14 569
Total tax continued operations 155 590 242 278
Computation of this years tax
Profit before tax 1 004 426 1 498 335
Other comprehensive income (44 414) (37 515)
Permanent dierences (260 780) (483 181)
Changes in temporary dierences 315 327 11 560
Basis for the tax expense of the year 1 014 559 989 199
Payable tax 25 % 253 640 247 300
Payable tax foreign operations (27 507) 24 444
Payable tax from previous years 3 212 (12 007)
Payable tax 229 346 259 737
Temporary dierences 2022 2021 Changes
Fixed assets (4 680) (3 579) 1 101
Receivables (95) (897) (803)
Gain and loss account 1 079 1 264 185
Financial assets (117 445) 138 870 256 315
Technical provisions 292 224 350 669 58 445
Net temporary dierences 171 083 486 326 315 243
Deferred tax 25 % 42 771 121 582 (78 811)
Deferred tax/ deferred tax assets in the balance sheet (42 771) (121 582) 78 811
NOTE 14 PENSIONS
Protector Forsikring is obliged to have an occupational pension scheme in accordance with the Mandatory Occupational Pension Act.
The company’s pension schemes meet the requirements of the law. The company only has defined contribution pension schemes for its
employees. The cost amounts to NOK 28.6 million in 2022.
In Norway, the contribution pension premium is 5 % of salary between 0 and 7.1 G (G=basic amount in national insurance) and 8 % of salary
between 7.1 and 12 G. In Sweden, the rates are 5.5 % of salary up to 7.5 income base amount (SEK 71,000 in 2022) and 31.3 % of salary beyond
this. In Denmark, the rate is 15 % of salary, in Finland 17.65 % of salary and in the UK between 4 % and 15 % of salary.
50 2022 PROTECTOR FORSIKRING ANNUAL REPORT
NOTE 16 OTHER LIABILITIES
[1.000 NOK] 2022 2021
Payables, operations 45 233 41 043
Payables, claims 62 292 32 341
Liabilities in connection to direct insurance 107 525 73 384
Reinsurance yet to be settled 2 094 968 2 238 317
Liabilities in connection to reinsurance 2 094 968 2 238 317
Allocation of employers contribution 12 121 11 403
Advance tax deduction 11 896 12 372
Other liabilities 247 160 262 783
Other liabilities 271 176 286 557
Financial derivatives 54 806 26 146
Total liabilities 2 528 475 2 624 404
The company has no secured liabilities.
NOTE 17 INCURRED EXPENSES AND PREPAID INCOME
[1.000 NOK] 2022 2021
Bonus 216 896 209 931
Accrued vacation pay 33 074 30 890
Deferred income 219 991 230 790
RTV tax 78 791 46 019
Other accrued expenses 6 400 11 287
Total 555 152 528 917
RECONCILIATION OF TAX
[1.000 NOK] 2022 2021
Profit before taxes 25 % 251 106 374 584
Permanent dierences 25 % (65 195) (120 795)
Corrected tax previous years 3 234 (12 007)
Net paid tax for companies abroad (27 507) 24 444
Calculated tax 161 638 266 226
Tax on other comprehensive income (11 103) (9 379)
Total tax according to income statement 150 535 256 847
Tax discontinued operations (5 056) 14 569
Total tax continued operations 155 590 242 278
512022 PROTECTOR FORSIKRING ANNUAL REPORT
NOTE 18 SALES EXPENSES
[1.000 NOK] 2022 2021
Internal payroll expenses 129 960 139 729
Commissions 256 628 221 935
Total 386 588 361 665
in % of gross earned premium 5.9 % 6.1 %
NOTE 19 INSURANCERELATED ADMINISTRATIVE EXPENSES
[1.000 NOK] 2022 2021
Depreciations 27 309 29 498
Salary- and pensions costs (note 20) 544 227 594 521
Oce costs 42 188 41 223
Remunerations 34 703 24 348
Claims handling costs (transferred to gross claims paid) (311 470) (301 723)
Internal sales expenses (129 960) (139 729)
Internal administrative costs (35 119) (66 511)
Other insurance-related administrative expenses 90 888 74 988
Total 262 765 256 615
[1.000 NOK] Auditing remuneration 2022
2021
Auditing (inclusive VAT) 2 259 1 335
Other certification services (including VAT) 19 27
Services regarding tax (inclusive VAT) 452 62
Other services outside auditing (inclusive VAT) 94 879
Total 2 824 2 304
NOTE 20 LABOUR EXPENSES, PENSIONS, NUMBER OF EMPLOYEES
[1.000 NOK] 2022 2021
Salaries 342 869 332 190
Bonus 51 851 124 449
Fees to the Board of Directors, Compensation Committee, Nomination Committee, Audit
Committee 3 199 2 995
Defined benefit pension costs - 925
Defined contribution pension costs
1
28 632 27 276
Social security tax 82 325 82 744
Other payments 35 352 23 943
Total 544 227 594 521
1
See note 14 for more information
Number of employees 2022 2021
Number of employees at 31.12. 436.0 411.0
Number of man-labour years at 31.12. 424.3 400.0
Average number of employees at 31.12. 426.9 415.8
Average number of man-labour years at 31.12. 414.4 406.9
52 2022 PROTECTOR FORSIKRING ANNUAL REPORT
NOTE 21 REMUNERATIONS TO SENIOR EXECUTIVES
[1.000 NOK]
Salaries
Variable
pay
2
Other
remu-
nerations
1
Paid-up
pension
premium
Total
remune-
rations
Senior executives
Henrik Golfetto Høye, CEO 5 433 3 434 73 80 9 020
Hans Didring, Deputy CEO 4 151 4 824 69 437 9 481
Ditlev de Vibe Vanay, CFO 3 358 1 647 3 78 5 085
Leonard Bijl , IT director 2 875 1 380 72 78 4 405
Dag Marius Nereng, CIO 3 577 5 886 114 79 9 657
Lars Krisitiansen, Country Manager Norway 2 048 190 1 78 2 317
Fredrik Landelius, Country Manager Sweden 1 888 946 8 542 3 384
Anders Blom Monberg, Country Manager Denmark 2 677 102 72 261 3 111
Stuart Winter, Country Manager UK 2 999 1 129 22 403 4 552
Total 29 006 19 538 432 2 036 51 012
Long-term bonus scheme
[1.000 NOK]
Number of
synthetic shares
allocated in 2022
Number of
synthetic shares
paid out in 2022
Holdings of
synthetic shares as
of 31.12.2022
Senior executives
Henrik Golfetto Høye, CEO 15 744 27 829 62 861
Hans Didring, Deputy CEO 22 175 36 855 83 685
Ditlev de Vibe Vanay, CFO 14 423 13 875 38 714
Leonard Bijl , IT-Director 11 694 11 833 30 808
Dag Marius Nereng, CIO 60 513 0 84 950
Lars Krisitiansen, Country Manager Norway 4 324 1 704 5 976
Fredrik Landelius, Country Manager Sweden 8 142 7 618 18 996
Anders Blom Monberg, Country Manager Denmark 4 298 860 3 439
Stuart Winter, Country Manager UK 3 427 9 014 23 308
Total 144 741 109 587 352 736
¹ Other remunerations comprises of telephone, insurance and other contractual benefits.
2
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
website www.protectorforsikring.no.
532022 PROTECTOR FORSIKRING ANNUAL REPORT
[1.000 NOK] ¹ Remunerations
1
The Board
Jostein Sørvoll, Chairman of the Board 663
Arve Ree, Deputy Chairman 568
Else Bugge Fougner, Board member 395
Kjetil Andreas Garstad, Board member 473
Randi Helene Røed, Board member 513
Mathews Ambalathil, Employees' representative 170
Line Kokkim, Employees' representative (May 2021 - April 2022) 156
Kristine Røkeberg Nilsen, Employees' representative (April 2021) 14
Total 2 950
Nomination Committee
Per Ottar Skaaret, Chairman 40
Andreas Mørk, member 30
Eirik Ronold Mathisen, member 30
Total 100
¹ Remunerations paid out in accounting year 2022.
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] 2022 2021
Net financial income from financial assets
Income from investments in associated companies 21 133 11 766
Interest income 365 726 208 947
Dividend shares 114 642 151 494
Unrealised gains/losses on financial assets (128 861) (23 724)
Gains/losses from realisation of financial assets 164 002 674 441
Administrations expenses on financial assets (36 066) (68 390)
Net financial income 500 575 954 534
Financial income discontinued operations 23 582 76 208
Financial income continued operations 476 993 878 325
NET FINANCIAL INCOME DIVIDED BY ASSET CLASS
Income from investments in associated companies 21 133 11 766
Interest income from financial assets at fair value through profit or loss 365 582 208 947
Dividend 114 786 151 494
Net gains / (loss) from shares 252 274 566 584
Net gains / (loss) from bonds and other fixed-income securities (111 018) 68 850
Net gains / (loss) from foreign exchange contracts (106 116) 15 283
Administration expenses (36 066) (68 390)
Total net income and gains/ (loss) from financial assets at fair value through profit or loss 500 575 954 534
Financial income discontinued operations 23 582 76 208
Financial income continued operations 476 993 878 325
54 2022 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] 2022 2021
Profit for the year assigned to the company’s shareholders 809 477 1 203 973
Weighted average number of shares 82 351 250 82 351 250
Earnings per share 9.83 14.62
Earnings per share continued operations [1.000 NOK] 2021 2020
Profit for the year assigned to the company’s shareholders 811 998 1 136 554
Weighted average number of shares 82 351 250 82 351 250
Earnings per share 9.86 13.80
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 dierent tiers for coverage of solvency capital requirement. The company had no capital in tier 3 at
31.12.2022.
Available and eligible own fund
[1.000 NOK]
2022 2021
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 3 803 543 2 792 448
Tier 1 - restricted 347 996 493 348
Tier 2 941 503 1 008 445
Total basic own funds 5 093 042 4 294 241
The company’s own funds consist of basic own funds only. Basic own funds consist of statutory equity adjusted for valuation dierence between
Solvency II and statutory value of assets and liabilities plus subordinated loan capital. Unrestricted T1 capital constituted 75 % (65 %) of the total
capital.
Tier 1 restricted capital constituted 7 %( 11 %). Tier 2 capital constituted 18 % (23 %). The company has no Tier 3 capital.
AVAILABLE OWN FUNDS TO MEET THE SOLVENCY CAPITAL REQUIREMENT SCR
Tier 1 - unrestricted 3 803 543 2 792 448
Tier 1 - restricted 347 996 493 348
Tier 2 941 503 1 008 445
Total available own funds to meet SCR 5 093 042 4 294 241
AVAILABLE OWN FUNDS TO MEET THE MINIMUM CAPITAL REQUIREMENT MCR
Tier 1 - unrestricted 3 803 543 2 792 448
Tier 1 - restricted 347 996 493 348
Tier 2 941 503 1 008 445
Total available own funds to meet the MCR 5 093 042 4 294 241
ELIGIBLE OWN FUNDS TO MEET THE SOLVENCY CAPITAL REQUIREMENT SCR
Tier 1 - unrestricted 3 803 543 2 792 448
Tier 1 - restricted 347 996 493 348
Tier 2 941 503 1 008 445
Total eligible own funds to meet the SCR 5 093 042 4 294 241
ELIGIBLE OWN FUNDS TO MEET THE MINIMUM CAPITAL REQUIREMENT MCR
Tier 1 - unrestricted 3 803 543 2 792 448
Tier 1 - restricted 347 996 493 348
Tier 2 235 121 187 295
Total eligible own funds to meet the MCR 4 386 661 3 473 092
552022 PROTECTOR FORSIKRING ANNUAL REPORT
Protector Forsikring has exposure to insurance, market, credit, counterparty and operational risks.
SOLVENCY CAPITAL REQUIREMENT SCR 2022 2021
Market risk 1 379 139 971 189
Counterparty default risk 77 358 93 718
Lifeinsurance risk 767 1 074
Health underwriting risk 672 273 637 567
Non-life underwriting risk 2 070 217 1 653 398
Diversification (1 237 119) (1 025 436)
Basic Solvency Capital Requirement 2 962 635 2 331 511
Operational risk 283 738 261 105
Loss-absorbing capacity of deferred taxes (633 914) (511 555)
Total solvency capital requirement 2 612 459 2 081 060
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] 2022 2021
MINIMUM CAPITAL REQUIREMENT MCR
Linearly calculated MCR 1 206 215 1 076 252
Upper limit for MCR 1 175 606 936 480
MCR floor 653 115 520 267
Combined MCR 1 175 606 936 480
Absolute floor of the MCR 41 211 36 073
Minimum capital requirement 1 175 606 936 480
Minimum capital requirement is calculated using standard formula with a 85 % 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 195 % 206 %
RATIO OF ELIGIBLE OWN FUNDS TO MCR 373 % 371 %
The dierence between the balance sheet and the Solvency II-balance mainly due to:
• Insurance liabilities are discounted in Solvency II, while they are not discounted in the accounts.
• In the accounts, the premium provisions correspond to unearned premiums, while in the Solvency II regulations, the premium provisions
are the present value of future cash flows for unexpired risk for contracts within the contract’s limit.
Unearned premiums are therefore multiplied by the expected future combined ratio with deductions for expected profits in future
premiums before discounting.
• A risk margin is included in the insurance technical provisions in accordance with Solvency II principles, but not in accordance with
accounting principles.
• The guarantee scheme is classified as a liability under Solvency II, while it is considered equity according to accounting principles.
• Dierent valuation of deferred tax due to dierences between accounting values and Solvency II values.
NET TECHNICAL PROVISIONS
1
BOOK VALUE SOLVENCY II
Premium provisions 1 885 730 1 146 217
Claims provisions 6 791 940 6 031 889
Risk margin 525 236
Total assets 8 677 670 7 703 342
1
Including discontinued operations (COI)
56 2022 PROTECTOR FORSIKRING ANNUAL REPORT
NOTE 25 SUBORDINATED LOAN CAPITAL
The company has three subordinated loans at MNOK 500, MNOK 350 and 400 MNOK. Subordinated loan capital is classified as a liability in
the balance sheet and is measured at amortised cost.
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 16.02.2020
Due date 16.02.2050
Callable Yes
SUBORDINATED LOAN MNOK 350
Name Protector Forsikring ASA 21/PERP FRN C HYBRID
Ticker PROTCT06
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
SUBORDINATED LOAN MNOK 400
Name Protector Forsikring ASA 22/52 FRN C SUB
Ticker PROTCT07
ISIN NO0012442278
Nominal value MNOK 400
Interest rate 3-month NIBOR + 275 bp p.a.
Issue date 21.12.2022
Due date 21.12.2052
Callable Yes
572022 PROTECTOR FORSIKRING ANNUAL REPORT
NOTE 27 DISCONTINUED OPERATIONS
Protector decided in 2018 to exit the COImarket. 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.
From 1 January 2022, the new Disposal Act (Avhendingsloven) came into force and the company no longer writes change of
ownership insurance.
Income statement
[1.000 NOK] 2022 2021
PREMIUM INCOME
Gross premiums earned 2 571 188 736
Reinsurers’ share of earned premiums (218) (18 822)
Earned premiums, net of reinsurance 2 352 169 914
CLAIMS
Gross claims incurred (43 285) (202 182)
Reinsurers’ share of claims incurred 18 804 47 456
Claims incurred, net of reinsurance (24 481) (154 726)
OPERATING EXPENSES (1 929) 1 239
Other insurance related income/expences (3 904) (5 631)
Technical result (27 961) 10 795
Total net financial income 23 582 76 208
Other income/expenses (3 197) (5 015)
Non-technical result 20 385 71 194
Profit before tax (7 576) 81 989
Tax 5 056 (14 569)
Profit from discontinued operations (2 521) 67 419
NOTE 26 CONTINGENT LIABILITIES
Protector has no contingent liabilities at 31.12.2022.
58 2022 PROTECTOR FORSIKRING ANNUAL REPORT
Earnings per share discontinued operations
[1.000 NOK] 2022 2021
Profit for the year assigned to the company’s shareholders (2 521) 67 419
Weighted average number of shares 82 351 250 82 351 250
Earnings per share (0.03) 0.82
Assets discontinued operations
[1.000 NOK] 2022 2021
Intangible assets 3 096 4 128
Financial assets 705 018 1 141 891
Reinsurers' share of gross technical provisions 169 668 274 003
Receivables - 24 133
Bank 543 3 892
Assets discontinued operations 878 325 1 448 049
Liabilities discontinued operations
[1.000 NOK] 2022 2021
Provisions for claims 417 097 636 460
Liabilities related to reinsurance 97 338 197 324
Liabilities discontinued operations 514 435 833 784
592022 PROTECTOR FORSIKRING ANNUAL REPORT
NOTE 28 NEW ACCOUNTING STANDARDS FROM 1ST JANUARY 2023
The company will from January 1st 2023 adopt full IFRS. The interim report for the first quartert 2023 will be the first published report
according to the new standards. Comparative figures will be revised accordingly .The main change from NGAAP to full IFRS is related to
IFRS 17 Insurance Contracts. Other changes in the transition to full IFRS are the implementation of IFRS 9 Financial instruments and IFRS
16 Leases.
IFRS 17 Insurance Contracts
IFRS 17 establishes principles for the recognition, measurement, presentation and disclosure of issued insurance contracts and
reinsurance contracts held.
Measurement model
Protector Forsikring has decided to use the simplified method, Premium Allocation Approach (PAA) to measure the insurance contracts.
Most of Protector’s contracts have a coverage period of one year or less. For the contracts where the coverage period is more than one
year, Protector has calculated that the liability for remaining coverage not will dier materially from the liability by applying the general
measurement model (Building Block Approach), and will therefore also use PAA for those contracts.
Liabilities for insurance contracts consist of liability for remaining coverage (LRC) and liability for incurred claims (LIC). LRC represents
liabilities for remaining coverage and replaces premium reserves and provision for unearned premiums, while LIC represents liabilities for
claims that have already been incurred and replaces claims provisions.
Asset for reinsurance contracts consist of the assets for remaining coverage (ARC) and the asset for incurred claims (AIC), reinsurers’
share of claims that have already incurred.
Reinsurance will be presented separately from gross insurance.
The LRC will be measured at the time of first recognition. The LRC at initial recognition comprises the premiums received upon initial
recognition. At the end of each reporting period, the carrying amount of the LRC is the carrying amount at the start of the period plus
the premium received during the period, minus the amount recognized as insurance revenue for services provided in that period. LRC
corresponds to the provision for unearned premium deducted by premium receivables.
The LIC, comprising the fulfilment cash flows related to past services, is measured according to best estimate of future payments for
incurred claims and claims expenses.
Contracts discounting
Pursuant to IFRS 17, LIC should be discounted when payments are expected to take place more than one year after the occurrence of the
claim. Protector has decided to discount LIC for all products. Swap rates, which are a well-known market-based yield curve, will be used
for the respective currencies.
LRC could also be discounted to reflect the time value of money. This adjustment is not mandatory under PAA. For LRC, most of
the premiums are received in the same year as coverage is provided. In addition, a substantial part of the premium is paid monthly or
quarterly. This means that the financial component of LRC is very limited, and discounting will therefore not be performed.
Risk adjustment
Risk adjustment (RA) is the compensation an entity requires for bearing the uncertainty about the amount and timing of the cash flows
that arises from non-financial risk as the entity fulfils insurance contracts.
The reinsurance result will be presented separately from the result from issued insurance contracts in the financial statement.
Protector currently expects that the transition to the new reporting standard IFRS 17 Insurance contracts will not significantly change
Protector’s financial position. The impact of IFRS 17 is being evaluated and is expected to be concluded in good time before the results
for Q1-2023 are reported.
IFRS 9 Financial instrumentes
IFRS 9 Financial Instruments replaces IAS 39 Financial Instruments: Recognition and Measurements. IFRS 9 is based on the concept
that financial instruments should be classified and measured at fair value, with changes in fair value recognized in profit or loss as they
arise (FVTPL), unless restrictive criteria are met for classifying and measuring the asset at either amortized cost or fair value through
other comprehensive income (FVOCI). Protector Forsikring has chosen to measure all financial assets at fair value through profit or loss
(FVTPL) and it does not entail any changes in the transition to IFRS 9.
IFRS 16 Leases
IFRS 16 introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of
more than 12 months, unless the underlying asset is of low value. IFRS 16 requires that the lease liability should initially be measured at
the present value of the lease payments that are not paid at the commencement date. The implementation of IFRS 16 is not expected to
aect the profit and loss significant, but will have some eect on the balance sheet and classification in the profit and loss statement.
The rent is divided into depreciation on the leasing asset and interest on the leasing debt.
Earnings per share discontinued operations
[1.000 NOK] 2022 2021
Profit for the year assigned to the company’s shareholders (2 521) 67 419
Weighted average number of shares 82 351 250 82 351 250
Earnings per share (0.03) 0.82
Assets discontinued operations
[1.000 NOK] 2022 2021
Intangible assets 3 096 4 128
Financial assets 705 018 1 141 891
Reinsurers' share of gross technical provisions 169 668 274 003
Receivables - 24 133
Bank 543 3 892
Assets discontinued operations 878 325 1 448 049
Liabilities discontinued operations
[1.000 NOK] 2022 2021
Provisions for claims 417 097 636 460
Liabilities related to reinsurance 97 338 197 324
Liabilities discontinued operations 514 435 833 784
2022 PROTECTOR FORSIKRING ANNUAL REPORT60
DECLARATION BY THE
MEMBERS OF THE
BOARD AND THE CEO
The Board and the CEO have today processed and approved the Directors’ Report and the financial statements for Protector
Forsikring ASA for the financial year 2022.
We confirm, to the best of our knowledge, that the financial statements for the period 1st of January to 31st of December
2022 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, March 2nd 2023
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
Mathews Ambalathil Randi Helene Røed Tonje Giertsen Henrik Golfetto Høye
(CEO)
2022 PROTECTOR FORSIKRING ANNUAL REPORT 61
62 2022 PROTECTOR FORSIKRING ANNUAL REPORT
AUDITOR’S REPORT
Statsautoriserte revisorer
Ernst & Young AS
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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 2022, 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 2022 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 6 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 2022, gross provision for
Our audit response
We identified, assessed and tested internal
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Independent auditor's report - Protector Forsikring ASA 2022
A member firm of Ernst & Young Global Limited
claims outstanding of MNOK 9 387 were
recognised in the accounts for continuing
operations, and MNOK 417 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 2022
constitutes MNOK 2 843 for continuing
operations, and MNOK 170 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 2022, financial assets
measured at fair value constitute MNOK 14 966,
of which MNOK 13 716 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.
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Independent auditor's report - Protector Forsikring ASA 2022
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 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 the other information is materially inconsistent with the financial statements, there is a material
misstatement in this other information or that the information required by applicable legal requirements is
not included in the board of directors’ report or the statement on corporate social responsibility, 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.
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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, 2 March 2023
ERNST & YOUNG AS
Finn Espen Sellæg
State Authorised Public Accountant (Norway)
(This translation from Norwegian has been prepared for information purposes only.)
2022 PROTECTOR FORSIKRING ANNUAL REPORT66
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 aected 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 sucient 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 as dividends. Final determination will be based
on the company’s result, capital requirements including
satisfactory buers and the necessary flexibility for growth
and development in the company. Distribution of dividends
will be assessed at a solvency margin above 150 %.
With a solvency margin above 200 %, the Board’s intention
is to over time return surplus capital to the shareholders in
the form of additional 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 2023, but no longer than
until 30 June 2023. 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 2023, however, so that it expires no later than
2019 PROTECTOR FORSIKRING ANNUAL REPORT 67
30 June 2023. The Board will propose to the Annual General
Meeting that the authorization is renewed. At the end of
2022, the company had 122,551 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 eected 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 2023, however, no later
than 30 June 2023. 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 2023, however, no later
than 30 June 2023. 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 April 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 Ocer
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
2022 PROTECTOR FORSIKRING ANNUAL REPORT68
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
The company’s Board of Directors shall consist of 5 to 9
members, as further decided by the General Meeting.
The Chairman of the Board and Deputy Chairman are
elected by the General Meeting 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 eectively 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.
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.
2022 PROTECTOR FORSIKRING ANNUAL REPORT 69
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
remuneration 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 Remuneration 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 Remuneration
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 eective 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.
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.
2022 PROTECTOR FORSIKRING ANNUAL REPORT70
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
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.
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.
2022 PROTECTOR FORSIKRING ANNUAL REPORT 71
Determination of salary and other remuneration for the
CEO is made by the Board following a proposal from the
Remuneration 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.
When presenting company information for individual
shareholders or other interested parties, only publicly
available information are presented.
TAKEOVERS
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
oer 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 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 eect 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 oeree 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.
2022 PROTECTOR FORSIKRING ANNUAL REPORT72
SOCIAL RESPONSIBILITY
Social responsibility – sustainable development
Protectors most important contribution to society
is securing life, assets and relieving our customers of
economic risk. The company’s corporate social responsibility
entails taking care of human rights, a good working life,
the climate, the environment and anti-corruption.
In recent years, we have experienced that customers,
investors and other stakeholders place increasing emphasis
on the environment, social conditions and corporate
governance (ESG) in their assessment of Protector. In order
to meet the market’s and the authorities’ expectations,
reduce own, customer and investor risks and to support
the company’s growth ambition, sustainability is part of the
company’s business strategy.
Strategy and overall status
In order to optimize the company’s sustainability eorts, we
carried out a materiality analysis to identify possible
ESG consequences in our value chain. This was carried out
on the basis of key stakeholders’ expectations, market
development and strategic priorities.
Based on the materiality analysis, the company’s
sustainability work is divided into four (4) focus areas:
People, climate-ecient solutions, climate resilience and
responsible business behaviour. The company has prepared a
roadmap for sustainability within the aforementioned areas
through 2025.
In 2022, the company has increased its eorts for
sustainability. We have made progress in all focus areas. We
have established our first climate account according to the
GHG protocol, and signed the UN principles for sustainable
insurance (PSI). Our emission in Co2 equivalents for 2022
per million GWP is 16.24. The climate account will be a
guideline for our further work on reducing the company’s
climate footprint.
The company’s sustainability report for 2022 will provide
further details on the climate accounting.
2022 PROTECTOR FORSIKRING ANNUAL REPORT 73
Protector’s ambition is to report in accordance with the
Task Force on Climate-Related Financial Disclosures (TCFD)
reporting standard. Furthermore, we collaborate with the
insurance industry to best meet the requirements of the EU
taxonomy for sustainable activities.
The company’s sustainability strategy is mainly based on the
following six (6) UN sustainability goals:
In 2023, Protector will increase the momentum of its sustainability eorts.
At the end of 2022, the company had 434 permanent
employees. Of these, 148 are employed in Norway, 110 are
employed in Sweden, 51 are employed in Denmark, 104 are
employed in the UK and 21 are employed in Finland.
Absence due to illness in Protector in 2022 was 2.8 %,
compared to 2.9 % in 2021 and 1.9 % in 2020. There have
been no occupational accidents or occupational injuries
during 2022.
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 is 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-
PEOPLE
2022 PROTECTOR FORSIKRING ANNUAL REPORT74
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. Our learning portal - “Knowledge Hub” - is
constantly being developed further. This currently contains
approximately 600 modules. The employees are also oered
a range of external courses that provide certification
and professional development. Many of the oers 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 programmes. The purpose of the
programmes is to develop people who can inspire their
teams to perform at their best. We do this through training
in management tools, our values and the building of One
Team. The programme promotes Protector’s culture, and
contributes to the exchange of experience across business
areas.
Most professional communities in Protector have weekly
experience exchange and feedback sessions. In these, as an
example, the most challenging issues one works with are
discussed. This is an important means of achieving social
learning.
We carry out annual 270 and 360 evaluations, where
employees and managers are evaluated on living the
company’s values. The purpose of the evaluation is, through
strengthening our common culture, to ensure development
of each employee and of the company.
Protector has a work environment committee that focuses on
a positive working environment in the company. Furthermore,
the personnel handbook is continuously revised to better
document the employees’ rights and duties.
As an indicator of whether we are an engaging place to work,
all employees are encouraged to participate in semi-annual
employee satisfaction surveys. This consists of a fixed set of
questions, and each employee is asked to give an assessment
on a scale from 1 to 10. Protector’s objective is an average
evaluation of 8, which is expressed as a score of 80.
We see, for the period we have comparable data, a positive
development. The score in spring and autumn 2022 was
75.2 and 75.9 respectively. The overall score is at a good
level, but there is still potential for improvement in some
departments.
2022 PROTECTOR FORSIKRING ANNUAL REPORT 75
Non-profit organisations
As part of Protector’s contribution to creating good
societies, the company gives to non-profit organisations.
We have a long history of this, including supporting for
Friends of Life.
In 2022, we gave our charity a boost. Protector set aside
more resources for the purpose, and involved broadly in
its own organisation. To ensure that the most relevant
organisations were prioritized, Protector’s employees in
each country were asked to vote on which organisations
the company should support.
In total, Protector gave NOK 2.3 million in 2022 to
non-profit organisations.
Equality and diversity
All employees shall 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 or belief.
This in itself is fundamental for the company. Furthermore,
equality and diversity support our performance culture.
This enables us to recruit the right people, make best-in-
class decisions, innovate and better serve a diverse range
of partners and customers.
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
dierences and respect the dignity that everyone has the
right to in their workplace.
As part of onboarding, all employees must sign our EDI
policy, which informs about our work with diversity,
equality and non-discrimination, as well as a declaration
that they will contribute to an inclusive working
environment.
2022 PROTECTOR FORSIKRING ANNUAL REPORT76
Status as of 31.12.20212
Job level Gender balance Remuneration
Number of
women
Antall
menn
Share
women Total
Dierences in total
remuneration (%)
Dierences in annual
salary (%)
Board 3 4 43 % 7 77.0 % -
Protector Insurance 182 252 42 % 434 70.8 % 77.2 %
Top management - 9 0 % 9 - -
Middle management 17 27 39 % 44 94.4 % 91.4 %
Team management 23 34 40 % 57 61.6 % 74.9 %
Employees without managerial
responsibilities 142 182 44 % 324 91.1 % 91.6 %
Norway 59 89 40 % 148 60.3 % 69.9 %
Top management - 5 0 % 5 - -
Middle management 7 14 33 % 21 106.3 % 95.4 %
Team management 9 18 33 % 27 50.5 % 66.5 %
Employees without managerial
responsibilities 43 52 45 % 95 86.6 % 87.8 %
Sweden 48 62 44 % 110 82.2 % 84.9 %
Top management - 2 0 % 2 - -
Middle management 3 4 43 % 7 63.4 % 72.5 %
Team management 8 4 67 % 12 101.5 % 99.9 %
Employees without managerial
responsibilities 37 52 42 % 89 100.5 % 101.1 %
Denmark 21 30 41 % 51 90.7 % 93.2 %
Top management - 1 0 % 1 - -
Middle management 3 3 50 % 6 105.1 % 110.4 %
Team management 1 3 25 % 4 93.3 % 102.6 %
Employees without managerial
responsibilities 17 23 43 % 40 98.0 % 99.0 %
UK 40 64 38 % 104 86.7 % 87.4 %
Top management - 1 0 % 1 - -
Middle management 3 4 43 % 7 102.7 % 99.4 %
Team management 5 8 38 % 13 115.4 % 115.9 %
Employees without managerial
responsibilities 32 51 39 % 83 84.4 % 84.2 %
Finland 14 7 67 % 21 73.7 % 74.1 %
Top management - - - 0 - -
Middle management 1 2 33 % 3 79.0 % 78.6 %
Team management - 1 0 % 1 - -
Employees without managerial
responsibilities 13 4 76 % 17 108.3 % 105.8 %
2022 PROTECTOR FORSIKRING ANNUAL REPORT 77
The figures for temporary employees include summer substitutes, part-time employees and students in addition to temporary
positions. As of 31 December 2022, there were four women and three men in temporary full-time positions. The figures for
temporary employees do not include employees who left before 31 December 2022. There were no employees in involuntary
part-time positions in the company in 2022.
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
203 279 11.9 % 10.8 % 3.5 % 2.5 % 0.0 % 0.0 %
Parental leave
Women’s parental leave* Men’s parental leave*
Protector Insurance 19.6 7.1
Norway 19.2 9.0
Sweden 17.8 6.3
Denmark 19.5 6.0
UK 1.1 0.0
Finland 30.3 1.0
*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 38.9 % 50.2 % 10.8 %
Top management 0.0 % 66.7 % 33.3 %
Middle management 13.6 % 77.3 % 9.1 %
Team management 21.1 % 75.4 % 3.5 %
Employees without managerial
responsibility 46.1 % 42.3 % 11.6 %
Norway 30.4 % 58.1 % 11.5 %
Top management 0.0 % 60.0 % 40.0 %
Middle management 14.3 % 76.2 % 9.5 %
Team management 3.7 % 88.9 % 7.4 %
Employees without managerial
responsibilities 43.2 % 45.3 % 11.6 %
Sweden 55.5 % 35.5 % 9.1 %
Top management 0.0 % 100 % 0.0 %
Middle management 28.6 % 71.4 % 0.0 %
Team management 50.0 % 50.0 % 0.0 %
Employees without managerial
responsibility 58.3 % 31.0 % 10.7 %
2022 PROTECTOR FORSIKRING ANNUAL REPORT78
Denmark 27.5 % 64.7 % 7.8 %
Top management 0.0 % 100.0 % 0.0 %
Middle management 16.7 % 83.3 % 0.0 %
Team management 0.0 % 100.0 % 0.0 %
Employees without managerial
responsibility 32.5 % 57.5 % 10.0 %
UK 42.3 % 45.2 % 12.5 %
Top management 0.0 % 0.0 % 100.0 %
Middle management 0.0 % 71.4 % 28.6 %
Team management 38.5 % 61.5 % 0.0 %
Employees without managerial
responsibility 47.0 % 41.0 % 12.0 %
Finland 23.8 % 61.9 % 14.3 %
Top management 0.0 % 0.0 % 0.0 %
Middle management 0.0 % 100.0 %xx 0.0 %
Team management 0.0 % 100.0 %xx 0.0 %
Employees without managerial
responsibility 29.4 % 52.9 % 17.6 %
Framework for our work on equality and diversity
The responsibility and work with equality, diversity and
non-discrimination is followed up by the Equality, Diversity
and Inclusion (hereafter EDI) committee. Its work consists of:
• Identify risks of discrimination and obstacles to equality.
• Plan and implement measures that promote equality
and diversity.
• Evaluate the measures.
The committee is involved in key decisions related to
recruitment, pay, working environment, promotion,
development and facilitation. The EDI committee consists
of HR and employee representatives from the countries we
operate in. As an extension of the committee and part of
the work, we have created reference groups in each country
to ensure that the employees are heard and involved in the
work and take part in the decisions made.
The company places emphasis on having good notification
routines so that situations that are perceived as
discriminatory or harassment are easy to report, and that
this notification is taken seriously. Routines for reporting
objectionable conditions are included in our digital
handbooks. These 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 its employees with regard to behaviour and
working environment.
The work to identify risks of discrimination and obstacles
to equality is a continuous process, where we invite and
encourage all managers and employees to actively take part
in the work. The EDI committee uses a simple structure for
monitoring risks, measures and proposals for improvements
that is available to everyone. In this way, we manage risks
eectively. In addition, the employee satisfaction survey
includes EDI, which gives our employees another arena for
feedback on the topic.
Status & plans going forward
In 2022, we have worked to reduce the risks to EDI by
anchoring our views and attitudes through the following
measures:
• Focus on the topic and create commitment among
the company’s employees. We have done this by
arranging professional days in all countries where we
launched our EDI policy, associated training and updated
our personnel idea and our values.
• Improved our job advertisements in order to increase
the diversity of the applicant pool.
2022 PROTECTOR FORSIKRING ANNUAL REPORT 79
• Increased focus on reviewing unintentional lopsided
distribution when adjusting pay and determining
performance pay.
• Make managers aware of homosocial reproduction
(conscious or unconscious favouring of one’s own
group), double standards (dierent assessment despite
the same background and same characteristics)
and “double binds” (same requirements, but dierent
conditions).
We believe that we already see a positive development as a
result of the above-mentioned measures. In the employee
satisfaction survey for autumn 2022, we achieved an
EDI score of 70, which is a positive development of 3 %
compared to the spring of the same year.
The company aims to achieve an EDI score of 80. For 2023,
the EDI committee has prioritized the following focus areas
and activities:
• Develop a structured recruitment process that is
objective.
• Training of managers and implementation of tools that
are supportive in carrying out objective processes.
• Determine statistics for better monitoring of our
progress.
• Prepare guidelines and templates for conducting exit
interviews.
Human and labour rights at our suppliers
Protector’s fundamental guideline is respect for the
individual. Everyone shall be treated with dignity and
respect, without discrimination on the grounds of
gender, gender identity or gender expression, age, sexual
orientation, disability, ethnicity or belief. Children shall not
be used as labour and forced labour 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 laws and industry standards. In 2022, we
established a company-wide claims procurement unit. This
unit strengthens our work for cost eective, high quality
and compliant procurement.
In 2022, Protector drew up a new Code of Conduct that all
new contractual partners must sign before a collaboration
can start. This documents the requirements to qualify for
cooperation with Protector. The principles are based on the
OECD’s guidelines for multinational companies, and deal
with, among other things, sustainability, employee rights,
child labour, discrimination, corruption and health and
safety.
Protector shall carry out due diligence assessments in line
with the OECD’s guidelines for multinational companies.
This shall increase accountability and prevent negative
impact on the environment from our operations. The
assessments are comprehensive and involve investigations
into conditions for employees, human rights, environmental
impact, bribery and corruption and corporate governance.
These requirements follow from the Norwegian
Transparency Act which entered into force on 1 July 2022.
Protector will publish an account of the specific due
diligence assessments carried out on our website by 30 June
2023. The account shall be revised yearly by 30 June, or
continuously in the event of significant changes.
2022 PROTECTOR FORSIKRING ANNUAL REPORT80
2022 statistics for property-related inspections
Country
Customers
inspected
Buildings
inspected
Buildings
with deviation
Share of buildings
with deviations
DK 3 68 51 75 %
NO 47 219 123 56 %
SE 76 820 315 38 %
UK 57 2085 356 17 %
Total 183 3192 845 26 %
CLIMATE EFFICIENT SOLUTIONS
Loss prevention
The most eective 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 eciency. Although the eect is dicult
to measure, we have great faith in the eectiveness of
preventing and limiting damage.
There are two main 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 oer from us
that is not competitive. Furthermore, they
will receive an explanation as to why they receive
an uncompetitive oer.
• We follow up whether they improve within the next
tender, and they receive a competitive oer from us
if the critical deviations are closed.
• 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.
Protector 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.
In 2022, we have continued our work with inspections and
documentation of deviations. Statistics from our inspections
show that this is an area with potential for improvement.
2022 PROTECTOR FORSIKRING ANNUAL REPORT 81
The large dierence in both the number of inspections and
the share of deviations between, for example, Norway and
the UK, is due to general dierences in the risk profile and
building type.
We have actively used deviations at renewals. Customers
who cannot document closing the deviations receive a
premium increase. This motivates the customers to enact
loss prevention measures. This initiative has in 2022 resulted
in 1/3 of our customers with deviations having closing said
deviations by renewal of the insurance policy.
Other statistics relating to our loss prevention initiatives in
the UK for 2022:
• Prepared 25 guidance documents that make it easier
for building managers to reduce the risk of damage to
people or property.
• Delivered more than 62 tailor-made courses to
increase the competence of building managers
related to the risk of damage to persons or property
and associated recommended measures.
• Carried out 541 customer meetings with the purpose
of evaluating risk, identifying risk-reducing measures
and preparing a deviation report with recommendations
and requirements.
• Conducted 3 Risk Academy Webinars for relevant
target groups.
We believe that this focus on loss prevention sets us apart
from other insurance companies and adds significant value
to our customers. In 2023, together with our customers,
we will become ever better at preventing undesirable events
from occurring and reducing the consequences of those
that do occur.
Reduced climate footprint in claims settlement
Protector handles over 152,000 claims annually. How these
claims are settled is one of our biggest opportunities with
both sustainability and cost savings. These are opportunities
we shall seize, and we shall 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, through
organisations such as Finance Norway, industry standards
to allow for more repairs and reuse. This provides financial
gain both for the customer and for Protector. In addition,
in those cases where it is dicult 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.
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.
Our most important sustainability measure for handling
property damage in 2022, is our new remediation
agreement for Scandinavia. With this agreement, we
improve our customers’ access to remediation services,
which reduces the consequences of undesired events.
Furthermore, we have prioritized sustainability in this
agreement, and we follow up our supplier with KPIs for,
among other things, waste management, environmentally
certified building material and emissions from vehicles.
In auto, Protector has recommended workshops for
each geographical area. These workshops can document
satisfactory operations in accordance with the current
requirements and quality standards Protector requires, and
we follow up these workshops on sustainability.
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. Similarly, we ensure
that damaged glass is repaired, rather than replaced, where
possible.
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.
2022 PROTECTOR FORSIKRING ANNUAL REPORT82
The table above shows shares for used car parts and glass
repairs. The practice of how to calculate such shares varies
from country to country, therefore these figures are not
directly comparable. Furthermore, the age of the vehicles in
the portfolio aects whether workshops can use used parts.
Due to characteristics of the company’s customer mix, the
average age of vehicles Protector insures is low.
In 2023, Protector will strengthen its work for reduced
climate footprint in claims settlement. The company will
have more detailed and comparable sustainability targets
and implement these in all the markets we operate in.
Moreover, we will use our climate accounting to prioritize
the measures with the greatest impact. Through product
development, loss prevention, claims handling expertise and
supplier management, we will achieve our goals.
CLIMATE RESILIENCE
Routines and processes for managing climate risk
We recognize that unwanted weather-related events
are becoming 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 oce or municipal buildings
in areas close to city centres constructed from concrete/
steel.
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 on a per client and
location basis. In more vulnerable areas, such as the UK,
we use a highly analytical 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.
The company also assists its customers with loss prevention.
Early warning and quick measures are important mitigating
factors in the event of a disaster. If, for example, we are able
to advise customers before undesirable events occur, this
could reduce the consequences of the event.
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
Used parts and repairs of glass
Country
Share of parts
that were used (2022)
Target share
used parts (2024)
Share of glass
repaired (2022)
Target share of glass
repaired (2025)
DK 5 % 7 % 24 % 30 %
NO 1 % 2 % 31 % 36 %
SE 11 % 12 % 31 % 36 %
2022 PROTECTOR FORSIKRING ANNUAL REPORT 83
our climate risk evaluation. Our reinsurance now covers an
estimated 1-in-5,000-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 Finance Initiative (UNEP FI)
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
2022.
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 investments 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 aects 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 oered to the market. This is
based, among other things, on input from our reinsurance
broker, customers, industry organisations 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 aects which
products, and how these should be priced. This enables
us to oer the products the market needs and ensures us
continued profitable growth.
2022 PROTECTOR FORSIKRING ANNUAL REPORT84
RESPONSIBLE BUSINESS BEHAVIOUR
Our own operations
We shall contribute to society, 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
tailor-made anti-corruption measures have been developed.
Protector’s ethical guidelines state that the company has
zero tolerance for corruption. The company has guidelines
for gifts and entertainment, 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 passed 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.
We also limit the climate impact of our own operations.
Our oces in Norway and the UK are BREEAM certified.
All our oces have easy access to public transport, limiting
the need to commute by car. We employ strict source
separation of waste at all our oces. Moreover, we have,
through recent digitalization, permanently reduced our
travel activities.
2022 PROTECTOR FORSIKRING ANNUAL REPORT 85
External relationships
Protector requires its suppliers to comply with applicable
regulatory requirements and industry standards. In 2022,
the company established its company-wide purchasing unit
which will both ensure eciency and quality in Protector’s
purchases, and ensure that suppliers comply with laws,
industry standards and regulatory requirements.
This is done through reviewing potential suppliers prior
to entering into any agreement, preferably via tenders
and documentation collection, as well as through signing
Protecor’s Code of Conduct, where suppliers confirm
compliance with the requirements. Additionally, we follow
up existing suppliers with meetings, required reporting,
quality audits, inspections and other evaluation.
Furthermore, we oer summer and part-time jobs to a large
number of students. This provides important early career
work experience. We consider this to be part of our social
responsibility.
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 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. We have increased
our emphasis on ESG in 2022, and continued our work on
processes related to dialogue/influence, concretization
of focus areas and analysis of the carbon footprint in our
investment portfolio.
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. 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.
We compare the companies we are invested in with each
other. In cases where we find major dierences, we will use
our ownership, influence and access to get management
to move in the right direction. If this is not sucient, we
will consider formally exercising our ownership, or exit
our position. The exercise of ownership is based on an
assessment of how we can have the greatest impact. In
some cases, it may be better to retain an ownership position
and exert influence rather than exiting our position.
Examples of active ownership:
• Ongoing contact with management through
investor meetings
• In some cases, we also engage with the Board
• Promote best practice from other companies in the
same industry
• Voting and proposals for general assemblies
• Review and give input on bond & loan terms
Protector also seeks to collaborate with other investors
to influence companies in matters related to corporate
governance and sustainability.
As a starting point, we will not invest in companies that
have a history of poor corporate governance. We work
to ensure that companies in which we are invested have
good governance. We contribute to this by participating in
election committees where possible.
In the past year, Protector has been represented on the
election committees of several of the companies that were
then in our portfolio: eWork, Projektengagemang, Elanders
and B3. Historically, we have been active in changing the
board composition of some of the companies in order to
increase competence and value creation.
2022 PROTECTOR FORSIKRING ANNUAL REPORT86
In 2022, we have continued to work on what ESG/
sustainability means to us. Overall, we want to take part in
sustainable value creation together with the companies we
are invested in. To achieve this, we focus on the following
themes in our follow-up of ESG:
• Zero emissions by 2050 – ambitions and contributions
• Focusing on those companies with relatively high
levels of carbon emissions
• Equality, diversity and inclusion
• Everyone must have equal responsibilities, as well
as equal opportunities and rights, regardless of
background
• Good corporate governance
• The boards must act in the best interest of the
shareholders
• The board members must also be able to contribute
perspectives and knowledge to maximize long-term
value creation
• Compensation of management and the board must
be reasonable and not at the expense of the
shareholders
It is important to us that profitability and sustainability go
hand in hand. In cases where profitability is temporarily
pressured due to absolutely necessary sustainability
measures, we encourage the companies to share the cost
with their value chain over time, or to develop new ways of
working to restore historical profitability.
Protector is, as discussed in the chapter on People, a
knowledge company. Our most important investment is in
our employees’ skills. The investment department therefore
sets aside time for competence development within
sustainability, e.g., through seminars under the auspices of
the Association for Finance.
In 2022, we calculated the carbon intensity for the
investment portfolio (Weighted Average Carbon Intensity
- WACI) for the first time. It is worth noting that we use
external managers to a very small extent. Shares and bonds
shown in the figure below are 100 % internally managed. The
analysis now covers 76 % of the company’s investments, if
one takes stocks and corporate bonds as a starting point and
disregards cash and derivatives.
Where we are exposed to companies with a high carbon
intensity, the companies must have a clear plan to reduce
emissions over time. If this does not exist, we can still invest,
but then we will influence the companies to put such a plan
in place.
2/3 of the contribution to the carbon intensity in the
bond portfolio comes from a single company, Wallenius
Wilhelmsen, which is the world leader in shipping cars.
Electric cars also need shipping, and Wilhelmsen contributes
to the green shift in this way. In order to optimize with
regard to carbon intensity, we could sell these bonds, which
do not have a large weight in the portfolio if you look at
market value. We believe it makes more sense to support
such companies in the transition, instead of withholding
capital and increasing the cost of financing. Wilhelmsen has
stated publicly that they can and will take the lead towards
zero emissions as the largest and leading player in their
industry.
2022 PROTECTOR FORSIKRING ANNUAL REPORT 87
Estimate, per GHG protocol, for our investments’ carbon footprint measured in tCO2 (2022)
Type Coverage Data Estimate Total
Equities 66 % 6 292 3 242 9 534
Bonds 81 % 37 377 8 777 46 154
Bonds funds 59 % 1 891 1 341 3 232
Total 58 920
In 2022, we have contacted the companies in our equity
portfolio with the largest climate footprint with the goal of
improved sustainability. Many of these already have good
initiatives underway. An example is Duni, which today has a
large carbon footprint, but a goal of “net zero” (Scope 1 &
Scope 2) by 2030.
Preliminary assessments indicate that we are far better than
comparable insurance companies when it comes to the
carbon footprint of the investment portfolio. The analysis
also shows that our internally managed bond portfolio has a
carbon footprint that is 50 % lower than the bond funds in
which we are invested.
In future, Protector will seek to be the best among
comparable insurance companies in terms of carbon
footprint in the investment portfolio.
PROTECTOR FORSIKRING ASA
Støperigata 2
PB 1351 Vika, 0113 Oslo
Tlf.: 24 13 17 00
info@protectorforsikring.no
www.protectorforsikring.no