Untitled

ANNUAL REPORT

HIGHLIGHTS 2023

THIS IS PROTECTOR

INCOME OVERVIEW

INVESTOR INFORMATION

FINANCIAL CALENDER

CEO

NORWAY

SWEDEN

DENMARK

THE UK

FINLAND

INVESTMENTS

BOARD OF DIRECTORS

BOARD OF DIRECTORS’ REPORT

FINANCIAL STATEMENTS AND NOTES

DECLARATION BY THE MEMBERS OF THE BOARD AND THE CEO

AUDITOR´S REPORT

CORPORATE GOVERNANCE

CORPORATE SUSTAINABILITY

APPENDIX

CONTENTS

113

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT4 5

HIGHLIGHTS

2023

Premium growth

in local currencies

37 % 10.8 % 88.5 %

Cost ratio Combined ratio

(21) (11.1) (89.4)

Insurance service

result (NOKm)

1,080 944 1,509

Total investment

return (NOKm)

Profit

(NOKm)

(701) (1,084) (1,379)

Return on equity

after tax

37.7 % 18.3 195 %

Earnings per share

(NOK)

Solvency ratio

(42.9) (16.7) (195)

¹ The figures in brackets are the amounts or percentages for the

corresponding period previous year.

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT6 7

THIS IS PROTECTOR

changes to policy terms, pricing, and risk management

initiatives. The renewal strategy shall always be rational

and data driven, ensuring that the profitability targets are

achieved at first renewal.

All business units have appointed a product owner or Chief

Underwriter (UW) for every product. This person is responsible

for sharing their experiences with colleagues cross-border,

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 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 eective and

realistic based on patterns emerging from claims data.

Reinsurance protects Protector’s equity, allowing solvency

relief and ensuring an equalisation 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 claim volume with a

return period of 200 years. Protector have limited their risk

for own account to a maximum of 100 MNOK/SEK/DKK, 10

MGBP or 10 MEUR for individual events.

Protector prepares a renewal strategy for the individual

reinsurance contracts in collaboration with the company’s

reinsurance broker. 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,

terms and conditions. Protector normally buys reinsurance

through reinsurers with a credit rating of A- (S&P), or higher.

CLAIMS HANDLING

Claims handling is the “moment of truth” and is an integral

part of the company. Most claims are handled in-house, but

third parties are engaged when competence or capacity is

needed. Currently claims handling employees are 46% of our

operational workforce.

Protector’s claims handling is built on high quality standards

ensuring that injured parties can trust that they will receive

the compensation they are entitled to, in a way that provides

trust and security. To achieve this, we have set the following

five quality criteria as a basis:

1. Speed of settlement

2. Communication

3. Competency

4. Accuracy

5. Overall service

The most important criteria for perceived quality in claims

handling is speed of settlement. 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. All claims handlers are

evaluated on the five quality criteria. The company regularly

requests feedback from brokers and clients so that the

interests are aligned in the best possible way.

INVESTMENTS AND CAPITAL ALLOCATION

The asset management mandate set by the Board of Directors

within the regulatory framework defines Protector’s

investment strategy. It allows for investments in equities,

fixed income, private equity and real estate. The company

manage its financial assets in-house; analysts thoroughly

assess and calculate returns for financial investment

alternatives and rank them by risk adjusted return. As a

Norwegian insurance company, Protector must comply with

EUs Solvency II directive, detailing the capital consumption

Protector is a non-life insurance company. The company

started underwriting insurance in 2004 and has been listed

on the Oslo Stock Exchange since 2007. Building on the

Norwegian success, the company entered Sweden in 2011,

Denmark in 2012 and Finland and UK in 2016. For all markets,

the company focus on commercial lines of business, public

sector and anity schemes, through insurance brokers and

agents only.

The company has grown from zero to NOK 10,423 million

in gross written premiums, and has over 500 permanent

employees. At year-end 2023, the geographical distribution

of gross written premiums was:

Protector will prioritise further profitable growth. This will be

achieved by delivering the lowest cost and the best quality in

the market. Our long-term financial objectives are:

• Combined ratio < 91%

• Solvency margin: > 150%

DISTRIBUTION STRATEGY

All of Protector’s business is done through selected brokers

and agents, with which the company has a broad and good

collaboration. A significant part the insurance portfolio is

channelled through the largest broker houses in the Nordics

and the UK.

The company has high and defined service standards, on which

both brokers and clients are oered service level agreements

(SLAs). All processes and steps necessary to meet the high

standards are reviewed and analysed at individual and team

level through KPI measurements.

Protector’s most important promise to brokers and clients is

to be easy to do business with, commercially attractive and

trustworthy.

MARKET STRATEGY

Protector’s prioritised market segments are commercial lines

of business, public lines of business and the anity market.

The company is a total provider of non-life insurance, and

clients represent a broad range of industries and risks.

The commercial segment includes both small and large

companies and anity programs. We tailor insurance

solutions for large companies and can develop own concepts

through anity programs as well as facilitate solutions for

cross-border clients.

The public segment consists primarily of municipalities and

county authorities. Protector is the largest insurance carrier

within municipal insurance in Scandinavia, insuring more than

600 municipalities and county councils. In UK public sector

and housing, Protector is currently the third largest insurance

carrier, with more than 270 municipalities, local authorities,

and 170 housing associations.

Protector’s long-term profitability target is a combined

ratio below 91%. This implies growth through consistent risk

selection, market pricing, cost-eective operations, and

risk improvements. By involving the correct expertise in the

process, the company aim to ensure consistent, eective,

and high-quality decision-making.

Existing clients are evaluated on the same basis as new risks.

The renewal process will constitute the basis for making

Protector is the Challenger. This is demonstrated through unique relations, best-in-class decision-

making and cost-eective solutions. The company´s main targets are cost and quality leadership,

which should lead to profitable growth, which again should put the company top 3 in the segments the

company decide to enter.

41 %

24 %

19 %

13 %

3 %

GWP

2023

UK Swede n Norway Denmark Finland

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT8 9

per risk alternative and the relationship between them. The

prudential regime aims to ensure adequate protection of

policyholders and other beneficiaries.

Protector performs stress tests to ensure that the balance

sheet can withstand the most severe financial distress; the

company tests the results being negatively impacted by poor

technical profitability and turmoil in all financial asset classes,

all at the same time.

Every quarter (at least) Protector make an overall assessment

of all risks in the company’s books and risks the company

may face in the future. Based on this, allocation of available

capital is made towards alternatives considered, maximising

risk adjusted return on equity. This includes, in prioritised

order, profitable insurance growth, financial investments,

cash as an option, and distribution of capital to shareholders

through dividends or buy-back of the company’s own shares.

IT STRATEGY

IT is a major contributor to Protector’s profitable growth

through the availability of data, process support and

improvement and automation. IT covers Information

security, Information Compliance, Infrastructure stability

and Innovation through the use of technology, at industry

benchmark cost to ensure:

• Systems and processes are 100% secure, compliant and

documented

• Business critical systems are stable and perform well

• Relevant data is captured, managed and used to enable

best-in-class decision-making

• Processes in UW, contracting, broker service and claims

handling are improved

• Self-service and sharing of information with brokers and

clients for an ecient value chain

• Tasks that do not benefit from manual interaction are

automated

Protector’s core insurance systems are developed, maintained,

and operated by the company’s own IT professionals. In-house

IT is strengthened by close cooperation with the providers of a

modern technology stack, and a Cloud-based infrastructure.

This gives the company access to the latest technology and

enables recruitment of highly skilled resources, creating

a unique combination of advanced technology and deep

business understanding. A well-functioning cooperation in

the matrix puts ownership of IT initiatives in the business

units and reduces time to market for innovations. By sharing

common goals and KPIs, an important part of the One Team

Performance Culture, excellent business and IT cooperation

is further enhanced.

Protector’s IT department maintains close relationships

with brokers, clients, authorities, financial and insurance

organisations, and their IT departments. By recruiting,

developing, and retaining the right people, internal employee

satisfaction survey results show IT is an organisation that is

very attractive to be a part of.

ADMINISTRATION

Protector’s support functions operate largely as a centralised

hub, delivering services to the business units. These services

encompass data availability, data distribution and data analysis,

bookkeeping, business support, process development,

project management, compliance, overall risk assessment

and reporting, financial controlling, actuarial analyses, HR,

marketing, and cultural and leadership development. The

administration is committed to creating ecient support

functions that add value to the business units. Understanding

roles and responsibilities, along with managing the matrix

as One Team, is key to further improving the quality and

eciency of our support functions.

PERFORMANCE BASED CULTURE

Value based leadership defines Protector and is a fundamental

part of the company’s business strategy. All employees are

expected to not only know the company’s DNA, but also

live it every day. A Culture of discipline is a fundamental

prerequisite for employees to take responsibility for their

individual goals and work individually and as a team. Protector

invests a considerable amount of resources in employee

recruitment and development.

All employees have personalized performance contracts and

quarterly status and plan meetings (STPs) with their manager.

The meetings include a performance evaluation based on the

company’s core values, personalized targets and focus areas.

Protector also conducts annual 360 and 270 evaluations

which provides managers and employees with a multi-source

assessment regarding their cultural development.

Protector believes in developing key skills through continuous

learning. Protector has established Protector University

a virtual e-learning platform with the ambition to support

training/on-boarding of new employees, support continuous

development of senior employees, as well as give feedback

and map competence. The “Protector Profile”, a competence

map to which it is continually referred to, was developed to

continuously support the development agenda of each and

every employee, as well as the leader.

A long history of management development programs has led

to a group of leaders that understands and live the company

culture. Each management development program lasts for

18 months, with a 6 month break between the programs,

enabling new entrants enrollment within 24 months.

SUSTAINABILITY

Protector asserts that if an insurance company excels

in its core business, it also contributes to sustainability.

Consequently, Protector’s sustainability strategy supports its

core business and consists of the following pillars:

• People

• Climate resilience

• Climate-eective solutions

• Responsible business behaviour

In short, this means that the company strives for a good

working life throughout its value chain, that it considers

climate risk in its risk assessment and product development,

reduces its carbon footprint through loss prevention and

competent claims settlement, and takes responsibility in the

fight against corruption, money laundering, and through its

investments.

The company is a signatory of UN’s Principles for Sustainable

Insurance, and its approach to sustainability is aligned with

those principles. Protector reports on its climate footprint in

accordance with the GHG protocol, and uses this to further

optimize its sustainability eorts.

2023 PROTECTOR FORSIKRING ANNUAL REPORT10

INCOME OVERVIEW

NOKm 2023 2022 2021

Gross written premium

10 423

7 098 5 951

Insurance revenue

9 386 6 619 5 812

Insurance claims expenses

(7 182) (5 045) (4 467)

Insurance operating expenses

(1 011) (735) (681)

Insurance service result before reinsurance contracts held

1 193 840 664

Net result from reinsurance contracts held

(113) (139) 201

Insurance service result

1 080 701 865

Net income from investments

1 328 477 878

Net insurance finance income or expenses

(384) 607 25

Other income/expenses

(91) (74) (64)

Profit/(loss) before tax

1 934 1 711 1 704

Tax

(439) (341) (324)

Discontinued operations

15 10 102

Profit/(loss) for the period

1 509 1 379 1 482

Key ratios (1)

Return on equity after tax

37,7 % 42,9 % 46,4 %

Earnings per share

18,3 16,7 18,0

Gross written premium growth in local currencies

37 % 21 % 10 %

Loss ratio, gross

76,5 % 76,2 % 76,9 %

Net reinsurance ratio

1,2 % 2,1 % -3,5 %

Loss ratio, net of reinsurance

77,7 % 78,3 % 73,4%

Cost ratio

10,8 % 11,1 % 11,7 %

Combined ratio

88,5% 89,4 % 85,1 %

Large losses, net of reinsurance (%)

5,9 % 6,4 % 4,7 %

Run-o gains/losses, net of reinsurance (%)

0,3 % -2,0 % 0,3 %

Change in risk adjustment, net of reinsurance (%)

1,5 % 1,2 % -4,1 %

Discounting eect, net of reinsurance (%)

-4,2 % -2,3 % 0,0 %

Retention rate

93,8 % 87,5 % 85,8 %

Combined ratio by business areas

The UK

82,4 % 88,8 % 103,7 %

Sweden

91,9 % 87,8 % 76,0 %

Norway

97,1 % 88,2 % 81,8 %

Denmark

86,8 % 94,6 % 75,8 %

Finland

86,1 % 92,8 % 88,6 %

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

www.protectorforsikring.no in document APMs Protector Forsikring 2023.

DITLEV DE VIBE VANAY

CHIEF FINANCIAL OFFICER (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 25 years of 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.

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT12 13

INVESTOR

INFORMATION

Investor Relations (IR) is responsible for Protector’s

activities and communication with the capital markets.

Protector is committed to maintain open, transparent, and

consistent communication with investors, analysts, and

other stakeholders to ensure that they have equal access to

accurate and relevant information in order to form a true and

fair view of Protector’s results and development. Information

relevant to Protector’s stakeholders shall be easily available

on the company’s website. Protector’s IR policy can be found

on the company’s website.

Four analysts are currently covering the Protector share.

More details on the analysts and the share can be found on

the company´s website.

THE PROTECTOR SHARE

The Protector share is listed on the Oslo Stock Exchange.

Company announcements and trading announcements are

published in English - and in Norwegian on an optional basis.

Interim reports and annual reports are published in English

only.

In 2023, Protector’s share price increased by 43,1%. The

Oslo Benchmark (OSEBX) increased by 9.9% during the same

period. In 2022, Protector’s share price increased by 16.1%,

while the Oslo Benchmark index decreased by 1% during the

same period. The average daily trading volume of Protector’s

shares on the Oslo Stock Exchange was 95,332 shares in

2023, relative to 80,534 in 2022. At the end of 2023, the

Protector share was traded at NOK 180.0. The market value

of total outstanding shares was NOK 14,839 million.

QUARTELY DIVIDEND ASSESSMENT

In accordance with the company’s adopted distribution

policy, the intention in the coming years is to distribute

20 - 80% of the profit for the year to shareholders. The

final determination will be based on the company’s result,

capital requirements including satisfactory buers and the

necessary ﬂexibility for growth and development in the

company. 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 distribution 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 17 in this report.

ANNUAL GENERAL MEETING

The annual general meeting of Protector Forsikring ASA will

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

on Thursday April 11th, 2024 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

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FINANCIAL

CALENDAR

11. April - Annual General Meeting

25. April - Interim Report Q1 2024

12. July - Interim Report Q2 2024

24. October - Interim Report Q3 2024

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT14 15

COST AND QUALITY LEADERSHIP LEADING TO

PROFITABLE GROWTH

Our 2023 gross written premiums grew by 37% in local

currencies relative to 2022. Combined ratio was 88.5%,

corresponding to a profit margin of 11.5% from the insurance

business.

The large loss rate (5.9%) in the portfolio was slightly lower

than normalised (7%). The development in reserves from

earlier years (run-o) gave a negative eect of -0.3%.

Adjusted for these factors, underlying profitability is

somewhat weaker than reported results.

Results are derived from disciplined underwriting in renewals

and new sales, high-quality and ecient claims handling,

targeted actions to counter increasing inﬂation and change in

competitors’ behaviour in UK Public Sector and Housing. The

Scandinavian market can still be characterised as rational. All

countries contribute positively to both volume growth and

technical profitability.

Following some years with investments in portfolio clean-up

and control, the strong growth leads to a gradually improving

cost ratio. There is no significant eciency development in

2023, but investments in people and process improvements,

including better utilisation of available and emerging

technology, will ensure future cost control and scalability.

WELL PREPARED FOR EXTRAORDINARY MARKET

CONDITIONS THROUGH A CULTURE OF DISCIPLINE

This year we more than doubled our UK Public Sector and

Housing portfolio, following several years with very low hit

ratios. Prior years have been challenging, and we have gone

many rounds on why we have not won more volume; we have

been there quoting all the way, staying true to our models

and processes with data supporting our view. We have not

changed our underwriting processes and principles, nor our

risk appetite, but the conditions in the market have changed;

some competitors turned more conservative (both in pricing

and risk appetite), others were no longer present in the

market at all.

The UK Public Sector and Housing market is limited to

approximately £ 900 million, whereof approximately £ 600

million is within our current appetite. With our £ 218 million

in this market as per year-end, we now have a market share

at above 30%. Approximately one fifth (1/5) of the market

go out to tender per year. The growth in the segment

through 2023 is extraordinary and we expect competition to

normalise over time. We will stay disciplined and consistent

and use data as the basis for our decision-making, irrespective

of how the market should develop.

HIGH RUNNING YIELD ON THE BOND PORTFOLIO

AND DISCIPLINED FINANCIAL UNDERWRITING

The investment portfolio yielded a return of NOK 1,372

million (7.9%); equities at 12.1% excl. put options, and fixed

income at 7.6%. We invest for the long term; iinvestment

decisions are made based on expected development in

fundamental value with our portfolio companies relative to

their inherent risk and the capital they consume. The excess

return from our financial investment activities since October

2014 (in-house management) is exceptional.

Our average reference rate has increased by 0.6%-points

throughout the year, whilst the average risk premium

(spread) has decreased by 0.9. Hence, our expected annual

yield (before cost of risk) in the fixed income portfolio has

decreased from 6.0% by the end of 2022, to 5.8% by the end

of 2023.

Equity portfolio philosophy and research process has stayed

consistent, but with more focus on better documentation

of assumptions and investment rationale. Underlying

development in our equity positions has been good; at year

end we estimate a discount to intrinsic value at 35% on

average for our 32 holdings.

From a capital perspective, we have been steering interest

rate risk during 2023. This is considered more reasonable

in a higher interest rate environment. By matching size and

duration of fixed income securities with our Solvency II-

based provisions per country, we reduce balance sheet risk

and to a certain degree also P&L volatility.

In Protector, we consider investments core business; it is all

about calculating risk vs reward, both within insurance and

investments. Our assets under management have grown

to NOK 18.7 billion (up from NOK 14.9 billion). At year

end about 16.0% was allocated towards equities and 84.0%

towards fixed income securities and interest rate hedging

instruments.

2023

- EXTRAORDINARY, BUT

DISCIPLINED GROWTH

CAPITAL ALLOCATION WITH A RISK APPROACH

To assess risks and opportunities from a capital perspective,

we maintained a strengthened process and wide involvement

of competence from a wider part of the company in 2023.

Both existing and new elements are assessed, discussed,

and quantified quarterly, or more often if found necessary.

This forms the groundwork for correct capital allocation

decision-making and contributes to being well prepared and

capitalised in turbulent times.

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) by year end 2023

is 195%. With this, we have a solid base for the future, and

we value the ﬂexibility it entails. Our prior solvency-based

reinsurance agreement was not renewed going into 2023.

A.M Best has reiterated their investment grade credit rating

of bbb+ and revised their outlook on Protector from stable

to positive.

IMPRESSED BY TEAMS AND INDIVIDUALS

When the results are strong in all business units, it is driven by

good performance from all teams. This includes centralised

IT and HQ functions. The collaboration between people,

teams, units, and functions has continued developing

throughout 2023. I am impressed and proud of how sharing

of “best practice” makes us stronger and of how we support

each other across functions and geographies. Thank you

to all employees for evolving our culture every day and for

delivering great results.

In Protector, we have a history of growth, both in terms of

volume and careers. Through profitable growth we can give

opportunities and invest in the development of our people.

By focusing on our employees’ passion and purpose, and

combining that with what drives our economic engine, role

development becomes natural. Looking ahead, continued

profitable growth will open new opportunities for employees

to pursue. For management that means active, open and

transparent succession planning.

With strong growth we must strengthen the team to continue

delivering. We have a standing ambition to continuously

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 developing diversity, to the

best for our company.

BESTINCLASS DECISIONMAKING IN FOCUS

An important part of our performance culture is our ability

to make decisions. In Protector everyone should make a

decision within their area of responsibility. We believe in

local autonomy, in combination with common tools and

guidelines assisting the decision-making process. If we allow

for everyone to make decisions, we must expect that not all

decisions turn out to be good. With the right culture and tools,

we can celebrate our mistakes as learning opportunities;

best-in-class decision-making is also about the quality of our

decisions.

Starting with the leaders in our internal leadership

development program, we have set more focus on developing

this culture and guidelines during 2023. To facilitate even

more learning from our decisions, we have become better at

documenting our assumptions and rationale, but also making

this documentation more available for others to challenge,

learn and take inspiration from.

BROKERS; A PART OF OUR “ONE TEAM”

Insurance brokers and agents are also a part of our team.

Our best and only friends grew their market share also in

2023, especially through further developing arrangements

for smaller clients than those who usually are a part of the

brokered market. We are part of that journey and see a lot

of future opportunity to compete on quality and eciency

against our competitors’ direct distribution channels.

Our brokers and clients have given us very good feedback

throughout the year, following targeted action to increase

quality and eciency in our joint value chain. This involves

processes, data quality and technology. In addition to our own

survey, placing our British, Danish and Norwegian branches

on top, our Finnish branch second and Swedish branch third,

we have external surveys and awards in Denmark and Norway

confirming our relatively high-quality service level.

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT16 17

HENRIK GOLFETTO HØYE

CHIEF EXECUTIVE OFFICER (CEO)

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

BSc in Economics & Finance from the University of Colorado.

Høye 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.

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

better.

3 YEAR VISION AS A TOOL TO FOCUS – PROGRESS THE

JOURNEY TOWARDS GREAT

Every three years we re-define and prioritise what we

understand “The Challenger” to be in operational terms; what

do we find most valuable to deliver as One Team? In defining

and prioritising this, we involve our wider organisation,

both to get diverse opinions but also to create ownership

to our common direction. In 2023 we have concluded on

our common direction as One Team towards 2026. The

process and result are tools or guidelines assisting us all in

our decision-making and helping us focus our eorts. With

everyone pushing in one direction we will continue to add

momentum to our ﬂywheel, progressing our journey towards

great.

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT18 19

NORWAY

Combined ratio 97.1% and 21% growth

RESULTS

The insurance service result was NOK 55 million (186),

corresponding to a combined ratio at 97.1% (88.2). The

worsened result mainly derives from claims related to the

Norwegian Natural Perils Pool, but also a poor motor result.

We aim to be the preferred partner for our brokers and are

very satisfied with winning two external quality surveys in

2023, as well as our own Broker Satisfaction Index. This is a

testament to our strong focus on quality over time combined

with a constructive dialogue with our partners.

PREMIUMS

Our 2023 gross written premium amounted to NOK 1,941

million (1,610), representing 21% growth. The growth is driven

by a strong renewal rate, price increases above inﬂation and

high client retention.

CLAIMS

The loss ratio, net of reinsurance was 89.8% (81.9) and

includes run-o gains at 1.1% on previous years’ claims

provisions as well as a large loss ratio at 6.0%.

Protector’s share of claims in the Natural Perils pool

constitutes 8%-points on our loss ratio.

The poor motor result derives from a combination of

higher-than-expected claims inﬂation and weather-related

claims in Q1.

COST

The cost ratio was 7.3% (6.3). The increase in cost ratio is

partly driven by increased agent commissions and by change

in pension scheme. We are comfortable with the underlying

cost ratio, but we will continue to look for eciency gains

through innovation.

Norway had an average of 83 FTEs (permanent employees)

in 2023 including the discontinued operations (Change of

Ownership).

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.

CATHRINE WESSEL-POULSEN

DIRECTOR NORWAY

Employee since 2009, started as a lawyer in COI (Change of Ownership).

Previously Director of COI and Claims Director Norway. She joined the

management group in May 2023.

NOKm 2023 2022

Gross written premium

1 941 1 610

Insurance revenue

1 883 1 583

Insurance claims expenses

(1 680) (1 292)

Insurance operating expenses

(138) (100)

Insurance service result before reinsurance contracts held

66 191

Net result from reinsurance contracts held

(11) (4)

Insurance service result

55 186

Key ratios (1)

Large losses, net of reinsurance

6,0 % 2,9 %

Run-o gains/losses, net of reinsurance

-1,1 % -0,1 %

Loss ratio, gross

89,2 % 81,6 %

Net reinsurance ratio

0,6 % 0,3 %

Loss ratio, net of reinsurance

89,8 % 81,9 %

Cost ratio

7,3 % 6,3 %

Combined ratio

97,1 % 88,2 %

(1) Defined as alternative performance measure (APM), described on www.protectorforsikring.no in document ”APMs

Protector Forsikring 2023”

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT20 21

SWEDEN

Combined ratio 91.9% and 14% growth

RESULTS

The insurance service result was NOK 193 million (237),

corresponding to a combined ratio at 91.9% (87.8). The

worsened result mainly derives from very poor results in the

consumer segment pilot (launched 2022) during the first

half year. The unprofitable portfolios have gradually been

exited during the second half of the year, improving overall

profitability. We have good renewal selection and enter 2024

on a good level.

We aim to be the preferred partner for our brokers. In 2023

our annual broker satisfaction survey, to our disappointment,

showed only small improvements. We have received valuable

feedback on how to strengthen our relationship and product

oering and will work persistently to claim our position as the

brokers’ best friend.

PREMIUMS

Our 2023 gross written premium amounted to NOK 2,486

million (2,073), representing 20% growth (14% in local

currencies). The growth is driven partly by price increases to

counter claims inﬂation, and partly new sales within motor

in our small- and medium-sized enterprises segment (SME).

CLAIMS

The loss ratio, net of reinsurance was 78.5% (75.4), including

run-o gains at 1.3% on previous years’ claims provisions as

well as a large loss ratio at 2.0%. Average claims inﬂation

is estimated at around 8% for 2023, driven mainly by the

property product, where material and restoration costs have

risen the most. The loss ratio increase is largely driven by our

consumer insurance initiatives, which have now been exited.

COST

The cost ratio was 13.4% (12.4). The higher cost ratio mainly

derives from higher commissions connected to our growth

in SME, as well as stang up to meet current and future

growth.

Sweden had an average of 124 FTEs (permanent employees)

in 2023. Our culture is always top of mind and especially

important when the Swedish team is as big as it is now. The

organisation holds most competence in-house, but Nordic

specialty resources support on some P&C underwriting.

Within claims handling, specialty resources are sourced

externally when necessary.

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

NOKm 2023 2022

Gross written premium

2 486 2 073

Insurance revenue

2 400 1 942

Insurance claims expenses

(1 785) (1 398)

Insurance operating expenses

(322) (241)

Insurance service result before reinsurance contracts held

293 303

Net result from reinsurance contracts held

(99) (66)

Insurance service result

194 237

Key ratios (1)

Large losses, net of reinsurance

2,0 % 7,5 %

Run-o gains/losses, net of reinsurance

-1,3 % -4,7 %

Loss ratio, gross

74,4 % 72,0 %

Net reinsurance ratio

4,1 % 3,4 %

Loss ratio, net of reinsurance

78,5 % 75,4 %

Cost ratio

13,4 % 12,4 %

Combined ratio

91,9 % 87,8 %

(1) Defined as alternative performance measure (APM), described on www.protectorforsikring.no in document ”APMs

Protector Forsikring 2023”

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT22 23

DENMARK

Combined ratio 86.8% and 16% growth

RESULTS

The insurance service result was NOK 176 million (56),

corresponding to a combined ratio at 86.8% (94.6). The

improved results are mainly derived from price increases

and refined risk selection. We have caught up with inﬂation

eects on our claims costs and succeeded in keeping the

renewal rate high.

We aim to be the preferred partner for our brokers. In 2023

we took 1st place in our own Broker Satisfaction Index and

strive to increase distance to our competitors through our

dedication to serving our best friends.

PREMIUMS

Our 2023 gross written premium amounted to NOK 1,407

million (1,077), representing 31% growth (16% in local

currencies). The growth is driven by a combination of price

increases and strong new sales, especially on commercial

housing and motor.

CLAIMS

The loss ratio, net of reinsurance was 79.3% (86.2) including

run-o losses at -0.7% on previous years’ claims provisions as

well as a large loss ratio at 4.4%. Claims inﬂation was in line

with our expectations, and further measures are included in

renewal terms set for our clients.

COST

The cost ratio was 7.5% (8.4). The lower cost ratio is mainly

driven by volume growth. We have been stang up to prepare

for new clients incepting in 2024. Eciency gains will be

realised throughout 2024 and lead to further reduction in

cost ratio.

Denmark had an average of 57 FTEs (permanent employees)

in 2023. We are growing in Claims Handling and Broker

Service in order to service our growing portfolio. Other

functions remain at the same level, thus increasing our

overall eciency.

ANDERS BLOM MONBERG

COUNTRY MANAGER DENMARK

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

leadership programs, 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.

NOKm 2023 2022

Gross written premium

1 407 1 077

Insurance revenue

1 336 1 040

Insurance claims expenses

(1 059) (938)

Insurance operating expenses

(100) (87)

Insurance service result before reinsurance contracts held

177 15

Net result from reinsurance contracts held

(0) 41

Insurance service result

176 56

Key ratios (1)

Large losses, net of reinsurance

4,4 % 5,1 %

Run-o gains/losses, net of reinsurance

0,7 % 0,2 %

Loss ratio, gross

79,3 % 90,1 %

Net reinsurance ratio

0,0 % -3,9 %

Loss ratio, net of reinsurance

79,3 % 86,2 %

Cost ratio

7,5 % 8,4 %

Combined ratio

86,8 % 94,6 %

(1) Defined as alternative performance measure (APM), described on www.protectorforsikring.no in document ”APMs

Protector Forsikring 2023”

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT24 25

THE UK

Combined ratio 82.4% and 84% growth

RESULTS

The insurance service result was NOK 618 million (203),

corresponding to a combined ratio at 82.4% (88.8%). The

improved result mainly derives from a reduction in net

reinsurance ratio driven by a large single loss that is mostly

ceded to reinsurers. The cost ratio has also reduced following

significant growth in Public Sector and Housing.

We aim to be the preferred partner for our brokers. For

the sixth consecutive year Protector UK has retained its #1

position in the BSI survey, and we continue to place highly in

external surveys conducted by brokers.

PREMIUMS

Our 2023 gross written premium amounted to NOK 4,321

million (2,116), representing 104% growth (84% in local

currencies). The growth is driven most significantly by

changes in the market conditions within Social Housing

and Leasehold Property. We have stayed disciplined to our

underwriting process and principles, and our risk appetite

is consistent. However, the rating environment in these

subsegments strengthened in 2022/23 to align with our

view. Furthermore, some competitors in this market lost

their capacity. Commercial products grew in line with

expectations.

CLAIMS

The loss ratio, net of reinsurance was 70.4% (74.2) including

run-o losses at -2.8% on previous years’ claims provisions

as well as a large loss ratio at 9.4%. Margin Management

activities have ensured that rates have strengthened in line

or above inﬂation, with some dierences between products.

COST

The cost ratio was 11.9% (14.6). The lower cost ratio is

mainly driven by the exceptional volume growth. We expect

recruitment to catch up to growth in 2024. Long term, an

embedded strategy to improve eciency and processes will

enable further profitable growth.

UK had an average of 119 FTEs (permanent employees) in

2023. Headcount at the end of the year exceeded 150,

reﬂecting the significant investment we make to support

growth. The management teams have been strengthened

across the entire business, entirely through internal

recruitment.

STUART WINTER

COUNTRY MANAGER UK

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

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

NOKm 2023 2022

Gross written premium

4 321 2 116

Insurance revenue

3 504 1 814

Insurance claims expenses

(2 467) (1 237)

Insurance operating expenses

(417) (264)

Insurance service result before reinsurance contracts held

619 312

Net result from reinsurance contracts held

(1) (109)

Insurance service result

618 203

Key ratios (1)

Large losses, net of reinsurance

9,4 % 10,0 %

Run-o gains/losses, net of reinsurance

2,8 % -2,0 %

Loss ratio, gross

70,4 % 68,2 %

Net reinsurance ratio

0,0 % 6,0 %

Loss ratio, net of reinsurance

70,4 % 74,2 %

Cost ratio

11,9 % 14,6 %

Combined ratio

82,4 % 88,8 %

(1) Defined as alternative performance measure (APM), described on www.protectorforsikring.no in document ”APMs

Protector Forsikring 2023”

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT26 27

FINLAND

Combined ratio 86.1% and 7% growth

RESULTS

The insurance service result was NOK 37 million (17),

corresponding to a combined ratio at 86.1% (92.8). The

improved result mainly derives from strong results in

workers´ compensation (WC) and property.

Our ambition is to be the preferred partner for our brokers.

In 2023 Protector received good feedback in our Broker

Satisfaction Survey, improving from 6th to 2nd place. Scores

received both in service and claims handling were at an all-

time-high.

PREMIUMS

Our 2023 gross written premium amounted to NOK

268 million (222), representing a 21% growth (7% in local

currencies). The growth is driven by short-tailed line of

business such as motor and health insurance. Underlying

volume development is stable; WC volume is aected by

technicalities.

CLAIMS

The loss ratio, net of reinsurance was 72.9% (75.5) including

run-o gains at 10.7% on previous years’ claims provisions as

well as a large loss ratio at 0.0%.

Average inﬂation has been higher than expected and

considered in our renewal strategy, especially in Employee

Benefits. During 2023 we have seen a significant change

in frequency in the health product, driven by post-covid

treatment backlog and challenges in public healthcare.

COST

The cost ratio was 13.2% (17.2). The cost ratio development

is mainly aected by our insurance revenue, which again

is heavily aected by WC as our largest line of business.

Although WC premiums are decreasing, we retain sta to

ensure high quality claims handling on our remaining book.

Finland had an average of 22 FTEs (permanent employees) in

2023. In addition to retaining competence on more complex

claims handling (WC and MTPL), our focus in 2023 has been

on adding resources in underwriting and claims handling for

the motor and health lines.

STEFAN SALONEN

GENERAL AGENT & HEAD OF UNDERWRITING

Employee since 2015. Salonen holds a masters 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.

NOKm 2023 2022

Gross written premium

268 222

Insurance revenue

263 240

Insurance claims expenses

(190) (180)

Insurance operating expenses

(35) (41)

Insurance service result before reinsurance contracts held

38 19

Net result from reinsurance contracts held

(2) (1)

Insurance service result

37 17

Key ratios (1)

Large losses, net of reinsurance

0,0 % 0,0 %

Run-o gains/losses, net of reinsurance

-10,7 % -2,7 %

Loss ratio, gross

72,3 % 75,0 %

Net reinsurance ratio

0,6 % 0,5 %

Loss ratio, net of reinsurance

72,9 % 75,5 %

Cost ratio

13,2 % 17,2 %

Combined ratio

86,1 % 92,8 %

(1) Defined as alternative performance measure (APM), described on www.protectorforsikring.no in document ”APMs

Protector Forsikring 2023”

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT28 29

RESULTS

The investment portfolio returned NOK 1,372 million in

2023, with strong contributions from both fixed income

and equities. The high yield portfolio stood out in 2023 with

returns at 16.2%. 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.

PERFORMANCE IN OUR OWN MANAGED HIGHYIELD

PORTFOLIO

Performance in the fixed income portfolio always need

to be evaluated through 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 eect, 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. In 2023 the expected

underperformance in a strong high yield market did not

materialise. Our portfolio returned 16.2% compared to the

DNB HY index, which contains all issued High Yield bonds in

the Nordic, that returned 11.2%.

*History to date

A combination of no credit losses, general spread tightening

and large spread tightening in some large positions

contributed to this result. A challenge going forward with

Protector’s strong growth in Asset Under Management

(AUM) is to maintain the allocated weight towards the

internally managed High-Yield portfolio. Since 2017 we have

increased the HY portfolio with ~50%, while Protector’s

AUM has doubled. We are not willing to compromise on

credit quality and you should expect that Protector’s AUM

will continue to grow faster than the HY bond portfolio,

leading to lower expected yield in the total portfolio.

Our long-term results in the equity portfolio are:

*History to date

PRODUCTIVE PARANOIA AT PROTECTOR

In our annual report, we consistently delve into key topics

shaping our investment strategies. Last year, we explored the

principles guiding our position sizing in equities. This year, we

shift our focus to the critical concept of productive paranoia

and its absence in various listed companies, underscoring its

potential risk to value creation.

At Protector, we uphold a culture of productive paranoia,

trying to envision and mitigate potential risks. Our risk-

mitigation measures include purchasing put-options,

rejecting “red” risks, acquiring reinsurance, and allocating

capital for unforeseen events. Our commitment is to take

calculated risks while safeguarding the company’s long-term

viability.

INSIGHTS FROM 2023

The year 2023 revealed the struggles of several companies

amid normalised interest rates. We find it perplexing that

some companies were caught o guard by this development.

To secure our company’s survival over the next century,

we believe in anticipating adverse developments, such

as normalised interest rates, and preparing for economic

downturns.

INVESTMENTS

CAPITAL ALLOCATION IN INVESTMENT DECISIONS

Our strategy involves acquiring shares in companies that have

significantly depreciated due to market ﬂuctuations. When

considering investments, a main concern is the company’s

resilience during economic downturns and its leverage,

exemplified by Storskogen, Seafire, Indus Holding, AFRY, and

Dustin.

DUSTIN GROUP CASE STUDY

Our investment in Dustin Group reﬂects a learning

experience. Despite our previous successful encounter in

2016-2018, the company’s subsequent challenges highlighted

the importance of good capital allocation. The company’s

high debt levels and the subsequent rights issue underscored

the necessity of a comprehensive risk assessment.

ESG CONSIDERATIONS

In our 2022 report, we pledged to address environmental,

social, and governance (ESG) issues in invested companies.

Our involvement in the nomination committee in Dustin

gave us a platform to advocate against an equity issue at

low share prices permanently destroying shareholder value,

emphasizing the importance of exhausting all alternatives

before resorting to such measures. You can read the letter we

sent to the board prior to their decision which we published

the day of the announcement here:

https://newsweb.oslobors.no/message/601170.

IDENTIFYING STRONG CAPITAL ALLOCATORS

Dierentiating between good and poor capital allocators

is crucial. CEOs and board members often rise through

the ranks due to operational skills but may lack expertise in

capital allocation. Our scrutiny extends to their alignment

with shareholder interests. The Outsiders by Will Thorndike

serves as an excellent reference on the significance of

per-share value focus.

MISTAKES AND LEARNINGS

The Dustin case revealed our misjudgement of the conﬂict

of interest. Acknowledging this mistake, we’ve implemented

measures to increase communication with board

chairpersons, particularly in companies where we play a role

in the nomination committee.

CONCLUSION

This year’s focus on the importance of capital allocation

underscores its role in long-term value creation. The case

of Dustin serves as a reminder of the need for thorough

risk assessment, even in seemingly stable investments. As

we navigate the ever-evolving landscape, our commitment

remains — to identify sound capital allocators.

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 received some recommendations during 2023 and are

very thankful. We are of the opinion that the most valuable

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

are invested in.

DAG MARIUS NERENG

CHIEF INVESTMENT OFFICER CIO

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

Experienced investment and portfolio manager, most recently in Bankenes Sikringsfond

and Handelsbanken Asset Management.

The importance of sound capital allocation for long-term value

creation

Yearly

HTD* 5 year 1 year HTD* 5 year

Protector High-Yield 94% 59% 16.2% 8.4% 9.8%

Dnb High Yield Index 54% 26% 11.2% 5.4% 4.8%

Yearly

HTD* 5 year 1 year HTD* 5 year

Protector 363% 123,7% 12,1% 18,0% 17,5%

Benchmark 157% 76,9% 13,3% 10,7% 12,1%

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT30 31

BOARD OF DIRECTORS

JOSTEIN SØRVOLL

ARVE REE

ELSE BUGGE FOUGNER

Chairman of the

Remuneration 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 17.

Member of the

Remuneration 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 17.

Member of the

Remuneration 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:

CHAIRMAN DEPUTY CHAIRMAN MEMBER

RANDI HELENE RØED

Chairman Audit

Committee

Chairman Risk Committee

Education:

- MSc in Economics and

Business Administration

NHH

- AFF

Solstrandprogrammet

Experience:

- Chief Adviser

Sustainability Norsk

Tipping AS (2018-)

- EVP HR Norsk Tipping

AS (2015-2018)

- CFO Norsk Tipping

(2008-2015)

- Director in Eidsiva Energi

(2002-2008)

- Senior Associate in PWC

(1999-2002),

- Controller in IBM

and NIT

(1993-1999),

- Oce Manager Group

Accounting in DNB

(1989-1993)

Board member of

Protector since: 2014

Other essential tasks

in companies and

organisations:

Board member in

Gudbrandsdal Energi

Holding AS and Vevig AS

Regarded as an

independent board

member: Yes

Shares in Protector:

MEMBER

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 17.

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 Firda AS

and Elektroimportøren AS.

Regarded as an

independent board

member: Yes

Shares in Protector:

Yes, see note 17.

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 17.

MEMBER MEMBER MEMBER

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT32 33

BOARD OF DIRECTORS’ REPORT

Protector Forsikring ASA is a non-life insurance company

listed on the Oslo Stock Exchange, with operations in

Norway, Sweden, Denmark, Finland and the United Kingdom.

The company oers general insurance in the commercial

and public sectors, through selected insurance brokers and

agents.

Protector has today more than 500 permanent employees

spread across the company’s oces in Stockholm,

Copenhagen, Helsinki, London, Manchester and Oslo

(head oce).

HIGHLIGHTS FOR 2023:

• 47% growth in gross written premium

• Combined ratio 88.5%

• Investment return 7.9%

• Return on equity after tax 37.7%

• Solvency margin 195%

RESULT

The company reported a profit before tax of NOK 1,933.5

million (1,710.7). The result is due to a strong insurance

service result and a strong net income from investments. The

return on equity was 37.7% (42.9).

Gross written premium increased by 47% to a total of NOK

10,423.0 million (7 097.8). Adjusted for currency eects, the

increase was 37% (21), driven mainly by premium increases,

low churn and an extraordinarily strong growth in the United

Kingdom. The insurance revenue increased to NOK 9,385.5

million (6,619.1), corresponding to growth of 32% in local

currencies.

In the United Kingdom, gross written premium increased

by 104% to a total of NOK 4,320.7 million. The growth in

the Nordic countries was: 20% in Sweden to a total of NOK

2,485.7 million, 21% in Norway to a total of NOK 1,941.0

million, 31% in Denmark to a total of NOK 1,407.2 million

and 21% in Finland to a total of NOK 268.4 million. In local

currencies, the growth was 84% in the UK and 16% in the

Nordics. On company level, the renewal rate was 104% (93).

The insurance service result was NOK 1,079.9 million (700,8),

corresponding to a combined ratio of 88.5% (89.4). The

improvement is driven by strong results in the UK, Denmark

and Finland and good results in Sweden. In Norway the results

were in the weaker end, mainly due to natural peril events

and a weak development within motor.

The loss ratio, net of reinsurance, was 77.7% (78.3). Large

losses, net of reinsurance, amounted to NOK 550.7 million

(425.9) or 5.9% (6.4). The run-o level was -0.3% (2.0).

Discounting of claims reserves was higher at 4.2% (2.3),

reﬂecting the higher level of interest rates. The underlying

claims ratio (adjusted for large claims, run-o, discounting

and risk adjustment) improved by 0.7%. The cost ratio

decreased to 10.8% from 11.1% in the prior year driven by

premium growth. The premium growth eect was partly

oset by higher broker commissions. Excluding broker

commissions, the cost ratio was 6.4% (7.2).

The investment activities yielded a total return of NOK

1,371.6 million (500.6), corresponding to 7.9% (3.4). NOK

43.6 million (23.6) of the return is allocated to discontinued

operations. The investment return is driven by good returns

on both equities and fixed-income securities. The return on

the equity portfolio was 9.8% (13.9) and the return on the

fixed- income portfolio was 7.6% (1.4).

The net insurance finance result impacted the profit before

tax negatively with NOK -383.9 million, (607.0).

The net eective tax rate for the year was 22.7% (20.0).

Of total taxes, current tax expense accounted for NOK

396.5 million (262.6) and deferred tax expense for NOK

42.7 million (78.8). Net profit for the year was NOK 1,509.3

million (1,379.0).

Pursuant to the requirements of Norwegian accounting

legislation, the Board confirms that the requirements for

the going concern assumption have been met and that the

annual accounts have been prepared on this basis.

SOLVENCY CAPITAL AND CASHFLOW

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

calculated in accordance with the Solvency II rules was at

the end of 2023 195%. The calculation of the SCR-ratio is

described in Note 16. The company’s objective is to maintain

a SCR-ratio above 150%.

In December, Protector successfully placed a subordinated

loan of NOK 650 million. The terms of the loan comply with

existing and expected future requirements for subordinated

debt eligible as restricted Tier 2 capital. The increase in

restricted Tier 2 capital has a 19%-point positive eect on the

SCR-ratio.

The company’s equity amounted to NOK 4,528.6 million, an

increase of NOK 767.1 million. Dividend payments in 2023

have reduced equity by NOK 823.9 million.

Cash ﬂow from operating activities amounted to NOK 27.7

million. Net cash ﬂow was negative by NOK 315.9 million.

Cash and cash equivalents amounted to NOK 832.5 million

at the end of 2023. The cash ﬂow reduction is due to the

allocation of funds from bank deposits to other financial

instruments.

Protectors BBB+ Long-Term Issuer Credit rating from A.M.

Best was armed in June. Outlooks were revised to positive

from stable.

CAPITAL AND RISK MANAGEMENT

Risk-taking is at the core of the company’s operations.

Continuous monitoring and active management of risk is

therefore an integrated area of the company’s operations

and organisation. Protector’s risk management is based

on the company targets, strategy and risk exposure limits

decided by the Board. The Board defines the framework

for the company’s risk appetite and the capital which must

be available to cover eventual losses. The company’s risk

exposure is mainly related to insurance risk, liquidity risk,

market risk, foreign exchange risk, credit risk, operational

risk, strategic risk and climate risk. A detailed description of

these can be found in Note 3 and 4.

CORPORATE GOVERNANCE

Protector’s governance systems are based on principles

set out in the Norwegian Code of Conduct for Corporate

Governance. See report on Corporate Governance (from

page 85). This report is an integral part of the Report of the

Board of Directors.

Protector has liability insurance on behalf of the members

of the Board of Directors and the CEO. The insurance

additionally covers any person acting in a managerial capacity

and includes the company’s branches. The insurance policy

is issued by a reputable, specialised insurer with appropriate

rating.

CORPORATE SUSTAINABILITY

The company has prepared a sustainability report pursuant to

section 3-3c of the Norwegian Accounting Act. See report

on Corporate Sustainability (from page 91).

The report also includes reporting duties pursuant to

Norway’s Gender Equality and Discrimination Act as well as

the Transparency Act and is an integral part of the Report of

the Board of Directors.

PERSONNEL

The numbers of employees increased during the year and

amounted to 526 (436) at year-end. The average number

of employees during the year was 488 (427), of whom

43% (42%) were women. Principles for remuneration of

employees as well as a report on remuneration of executive

personnel are published on the company’s website

www.protectorforsikring.no. A specification of total

remuneration of executive personnel is enclosed in Note 21.

EVENTS AFTER THE REPORTING PERIOD

In accordance with the authorisation from the Annual

General Meeting, the Board has on 14 February 2024 paid an

additional dividend of NOK 412.2 million (equivalent to NOK

5.00 per share) on the basis of the 2022 accounts. The paid

dividend is included in other equity as of 31.12.2023.

OUTLOOK

The underlying profitability is good, and with continued price

increases to counter claims inﬂation, the insurance service

result is expected to remain on a good level.

Entering 2024, the company has experienced a continuing

high renewal rate. In January, our largest inception month,

the company experienced 16% growth in local currencies

supported by price increases countering for claims inﬂation.

However, the January volume has less significance for the

company’s annual premium growth than previous years. This

is because a significant part of the growth currently comes

from the UK, which has a dierent inception pattern.

The claims development, and the inherent volatility of capital

markets, continue to be the most important risk factors that

could aect the company’s profit in 2024. 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, 6 March 2024

The Board of Directors of Protector Forsikring ASA

All signatures electronically 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 2023 PROTECTOR FORSIKRING ANNUAL REPORT 352023 PROTECTOR FORSIKRING ANNUAL REPORT

INCOME STATEMENT

[NOKm] Notes 2023 2022

Insurance revenue

5 9 385,5 6 619,1

Insurance claims expenses

(7 181,7) (5 044,8)

Insurance operating expenses

8. 20, 21, 22 (1 011,2) (734,5)

Insurance service result before reinsurance contracts held

1 192,7 839,9

Reinsurance premium

(583,7) (826,4)

Amounts recovered from reinsurance

470,9 687,3

Net result from reinsurance contracts held

(112,8) (139,1)

Insurance service result

5 1 079,9 700,8

Result from investments in associates and joint venture

- 20,1

Interest income and dividend from financial assets

662,3 457,8

Net changes in fair value of investments

(6,6) (122,8)

Net realised gain and loss on investments

735,6 156,3

Interest expenses and expenses related to investments

(63,3) (34,4)

Net income from investments

9, 10 1 328,0 477,0

Insurance finance income or expenses - Change in financial assumptions

(159,7) 816,2

Insurance finance income - Unwinding

(273,2) (144,1)

Insurance finance income or expenses

(432,9) 672,2

Reinsurance finance income or expenses - Change in financial assumptions

27,1 (88,4)

Reinsurance finance income or expenses - Unwinding

35,6 27,9

Reinsurance finance income or expenses - Other income and expenses

(13,7) (4,8)

Reinsurance finance income or expenses

49,0 (65,2)

Net insurance finance income or expenses

(383,9) 607,0

Total investment return

944,2 1 084,0

Other income/expenses

(90,6) (74,0)

Profit/loss before tax

1 933,5 1 710,7

Tax

15 (439,2) (341,4)

Discontinued operations

27 15,1 9,7

Profit/loss for the period

1 509,3 1 379,0

Earnings per share (basic and diluted)

18,3 16,7

STATEMENT OF

COMPREHENSIVE INCOME

[NOKm] Notes 2023 2022

Profit/(loss) for the period

1 509,3 1 379,0

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

Exchange dierences from foreign operations

104,8 (40,6)

Tax on other comprehensive income that may be reclassified subsequently to

profit or loss

15 (26,7) 11,1

Total other comprehensive income

78,1 (29,5)

Comprehensive income

1 587,4 1 349,5

36 2023 PROTECTOR FORSIKRING ANNUAL REPORT 372023 PROTECTOR FORSIKRING ANNUAL REPORT

[NOKm] Notes 31.12.2023 31.12.2022

EQUITY AND LIABILITIES

Shareholders’ equity

Share capital [82.500.000 shares]

17, 18 82,5 82,5

Own shares

(0,1) (0,1)

Other paid-in equity

267,7 267,7

Total paid-in equity

350,1 350,1

Earned equity

Natural perils capital

26,3 61,6

Guarantee scheme provision

81,8 72,8

Other equity

4 070,4 3 277,1

Total earned equity

4 178,4 3 411,4

Total equity

4 528,6 3 761,5

Subordinated loan capital

4,19 1 891,7 1 244,7

Liabilities for remaining coverage

6,7 1 706,2 1 140,6

Liabilities for incurred claims

3, 6, 7 9 815,2 8 127,7

Liabilities for incurred claims risk adjustment

3, 6, 7 1 037,8 881,6

Insurance contract liabilities

12 559,2 10 149,9

Current tax liability

15 161,4 120,2

Deferred tax liability

15 191,0 147,8

Financial derivatives

241,2 54,8

Other liabilities

11, 22, 24 664,4 480,0

Other incurred expenses and deferred income

25 378,8 335,2

Liabilities discontinued operations

27 258,3 425,1

Total other liabilities

1 895,0 1 563,0

Total equity and liabilities

20 874,5 16 719,1

STATEMENT OF FINANCIAL POSITION

[NOKm] Notes 31.12.2023 31.12.2022

ASSETS

Loans at amortized cost

30,3 -

2 888,5 2 522,9

Securities and bonds

14 630,8 10 832,1

Financial derivatives

264,6 65,7

Bank deposits

492,6 839,8

Total financial assets in investment portfolio

9, 10 18 306,9 14 260,6

Cash at bank

323,6 198,5

Other receivables

23 52,2 27,6

Total operational financial assets

9, 10 375,8 226,1

Reinsurance contract assets

6 1 093,3 1 029,1

Intangible assets

13 106,3 95,9

Tangible fixed assets

12, 14 113,1 132,2

Total prepaid expenses

224,4 184,5

Assets discontinued operations

27 654,5 790,7

Total non-financial assets

2 191,7 2 232,4

Total assets

20 874,5 16 719,1

Oslo, 6 March 2024

The Board of Directors of Protector Forsikring ASA

All signatures electronically signed

Jostein Sørvoll

Chairman

Arve Ree

Deputy chairman

Else Bugge Fougner Kjetil Garstad

Mathews Ambalathil Randi Helene Røed Tonje Giertsen Henrik Golfetto Høye

CEO

38 2023 PROTECTOR FORSIKRING ANNUAL REPORT 392023 PROTECTOR FORSIKRING ANNUAL REPORT

[NOKm]

Capital

Own

Other

paid-

in equity

Natural

perils

capital

Guarantee

scheme

provision

Fund for

valuation

dierences

Other equity

Total

Equity as at 31.12.2021 NGAAP

82,5 (0,1) 267,7 97,7 78,2 10,0 3 046,2 3 582,1

IFRS Adjustments

(2,9) (220,4) (223,3)

Equity at 1.1.2022 IFRS

82,5 (0,1) 267,7 94,9 78,2 10,0 2 825,8 3 358,9

Profit/(loss) for the period

9,9 (5,4) (10,0) 1 384,4 1 379,0

Other comprehensive income

(29,5) (29,5)

Own shares

0,0 0,0

Value changes in synthetic shares¹

0,4 0,4

Dividend paid

(947,3) (947,3)

Reclassification of admin.cost

(43,2) 43,2

Equity 31.12.2022

82,5 (0,1) 267,7 61,6 72,8 - 3 277,0 3 761,5

Profit/(loss) for the period

(90,3) 9,0 - 1 590,6 1 509,3

Other comprehensive income

78,1 78,1

Own shares

9,8 9,8

Value changes in synthetic shares¹

(6,3) (6,3)

Dividend paid

(823,9) (823,9)

Reclassification of admin.cost

54,9 (54,9) -

Equity 31.12.2023

82,5 (0,1) 267,7 26,3 81,8 - 4 070,4 4 528,6

¹ Synthetic shares long term bonus scheme

STATEMENT OF CHANGES IN EQUITY

CASH FLOW STATEMENT

[NOKm] Notes 31.12.2023 31.12.2022

Cash ﬂow from operations

Insurance revenue

6 9 807,1 6 505,1

Insurance claims expenses

6 (6 461,6) (4 535,3)

Insurance operating expenses and other income/expense

6 (709,4) (413,9)

Net expense from reinsurance contracts

6 (30,9) (46,7)

Dividends received

9, 10 134,6 114,8

Interest received

9, 10 549,3 367,6

Net payments from financial instruments

(2 898,2) (1 792,2)

Payable tax

15 (363,3) (320,6)

Net cash ﬂow from operations

27,7 (121,4)

Cash ﬂow from investment activities

Investments in fixed assets

12, 13, 14 (71,7) (43,8)

Net cash ﬂow from investment activities

(71,7) (43,8)

Cash ﬂow from financial activities

Dividend paid

(823,9) (947,3)

Proceeds from issue / (Repayment) of subordinated loan capital

19 647,0 (140,0)

Interest payments on subordinated loan capital

19 (95,0) (66,6)

Net cash ﬂow from financial activities

(271,9) (1 153,9)

Net cash ﬂow for the period

(315,9) (1 319,0)

Net change in cash and cash equivalents

(315,9) (1 319,0)

Cash and cash equivalents opening balance

1 080,3 2 407,2

Eects of exchange rate changes on cash and cash equivalents

68,1 (7,9)

Cash and cash equivalents closing balance

832,5 1 080,3

40 2023 PROTECTOR FORSIKRING ANNUAL REPORT 412023 PROTECTOR FORSIKRING ANNUAL REPORT

STATEMENT OF TRANSITION TO IFRS

[NOKm] IFRS 01.01.2022 NGAAP 31.12.2021 Change

Assets

Financial assets

Shares in associated companies

127,3 127,3 -

1 824,4 1 824,4 -

Securities, bonds etc

9 179,3 9 179,3 -

Financial derivatives

94,1 94,1 -

Bank deposits

1 935,5 1 935,5 -

Total financial assets

13 160,7 13 160,7 -

- - -

Reinsurance contract assets

1 128,9 3 149,3 (2 020,4)¹

Intangible fixed assets

73,3 73,3 -

Tangible fixed assets

166,8 34,0 132,8²

Cash and bank deposits

300,0 300,0 -

Policyholders receivables

- 523,2 (523,2)¹

Other receivables

65,2 95,3 (33,1)¹

Total prepaid expenses

152,4 462,5 (310,1)¹

Assets discontinued operations

1 267,6 1 448,0 (180,5)¹

Total assets

16 311,8 19 246,3 (2 934,5)

[NOKm] IFRS 01.01.2022 NGAAP 31.12.2021 Change

Equity and liabilities

Shareholders' equity

Share capital [82.500.000 shares]

82,5 82,5 -

Own shares

(0,1) (0,1) -

Other paid-in equity

267,7 267,7 -

Total paid-in equity

350,0 350,0 -

Earned equity

Natural perils capital

94,9 97,7 (2,9)¹

Guarantee scheme provision

78,2 78,2 -

Fund for valuation dierences

10,0 10,0 -

Other equity

2 825,8 3 046,2 (220,4)¹

Total earned equity

3 008,8 3 232,1 (223,3)

Total equity

3 358,9 3 582,1 (223,3)

Subordinated loan capital

1 384,7 1 384,7 -

Insurance liabilities

9 878,7 9 979,6 (100,8)¹

Liabilities in connection with direct insurance

73,4 (73,4)¹

Liabilities in connection with reinsurance

2 238,3 (2 238,3)¹

Current tax liability

191,2 191,2 -

Deferred tax liability

50,6 121,6 (71,0)¹

Financial derivatives

26,1 26,1 -

Other liabilities

459,7 286,6 173,1

1,2

Other incurred expenses and prepaid income

298,1 528,9 (230,8)

Liabilites discontinued operations

663,7 833,8 (170,1)¹

Total equity and liabilities

16 311,8 19 246,3 (2 934,5)

¹Change due to implementation of IFRS 17

²Change due to implementation of IFRS 16

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 shares throughout the year, net of treasury shares.

[NOKm] IFRS 01.01.2022 NGAAP 31.12.2021 Change

Profit for the year assigned to the company’s shareholders

1 482,3 1 232,1 250,3

Weighted average number of shares

82 351 250 82 351 250 -

Earnings per share

18,0 15,0 3,0

EARNINGS PER SHARE CONTINUED OPERATIONS

[NOKm] IFRS 01.01.2022 NGAAP 31.12.2021 Change

Profit for the year assigned to the company’s shareholders

1 380,3 1164,7 215,6

Weighted average number of shares

82 351 250 82 351 250 -

Earnings per share

16,8 14,1 2,6

42 2023 PROTECTOR FORSIKRING ANNUAL REPORT 432023 PROTECTOR FORSIKRING ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1 ACCOUNTING PRINCIPLES

General

The company’s financial statements are prepared in accordance with

the Financial Statement Regulation for Non-life Insurance Companies

(Forskrift om årsregnskap for Skadeforsikringsselskaper) and IFRS®

Accounting Standards as adopted by the EU.

Changes in accounting principles

The Ministry of Finance has adopted changes to the accounting rules

for insurance companies as a result of IFRS 17. The changes came into

force with eect for accounting years starting from January 1st 2023.

This means that Protector reported according to full IFRS from

January 1st 2023. Comparable figures for 2022 have been restated

to IFRS. The main change to full IFRS is related to IFRS 17 Insurance

contracts. This new standard replaces IFRS 4 Insurance contracts and

introduces new requirements for recognition, measurement,

presentation and information about issued insurance contracts and

reinsurance contracts held. The purpose of the new standard is to

establish a uniform practice for accounting for insurance contracts

other standards that was implemented in 2023, as a result of the

transition to full IFRS, are 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 has implemented the simplified method, Premium Allocati-

on Approach (PAA) to measure the insurance contracts and the rein-

surance contracts held. Most of Protector’s contracts have a coverage

period of one year or less. For the contracts where the coverage pe-

riod is more than one year, Protector has estimated that the liability

for remaining coverage will not dier 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 co-

verage (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 incurred and replaces claims provisions. Asset

for reinsurance contracts consist of the assets for remaining covera-

ge (ARC) and the asset for incurred claims (AIC), reinsurers’ share of

claims that have already incurred.

Applying the PAA model, Protector will measure the LRC on initial

recognition. The main principles under the PAA are to accrue

premium received over the coverage period. The LRC at initial

recognition comprises the premium 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 including

the premium received during the period, less the amount recognized

as insurance revenue for services provided in that period. LRC corre-

sponds to the provision for unearned premium including deductions

for premium receivables. Insurance acquisition cash ﬂows are directly

expensed for contracts with a coverage period of one year or less, or

when they are deemed to be immaterial.

The LIC, comprising the fulfilment cash ﬂows related to past services,

is measured according to best estimate of future payments for

incurred claims, claims expenses and other costs directly attributable

to the underlying insurance contracts, adjusted for time value of mo-

ney, the financial risks related to the future cash ﬂows and with a risk

adjustment for non-financial risk.

Reinsurance contracts held will be presented separately from

insurance contracts issued.

Contracts discounting

Protector discount LIC for all products. Swap rates are used in

discounting for the respective currencies.

LRC can also be discounted to reﬂect the time value of money. This

adjustment is not mandatory under PAA. For LRC, most of the pre-

mium are received less than a year after coverage is provided. In ad-

dition, a substantial part of the premium is paid monthly or quarterly.

This means that the financing component of LRC is not significant, and

therefore the LRC is not adjusted for time value for money and the

eect of financial risk.

Risk adjustment

Risk adjustment for non-financial risk (RA) is the compensation an

entity requires for bearing the uncertainty about the amount and ti-

ming of the cash ﬂows that arises from non-financial risk as the entity

fulfils insurance contracts. A percentile approach is applied, where the

level of risk adjustment represents the 85 percentile of the ultimate

probability distribution for the liability for incurred claims. Risk adjust-

ment is estimated excluding discounting eects. A simulation-based

model is used to simulate outcomes of undiscounted liability for in-

curred claims, where undiscounted liability for incurred claims defines

the expected value of estimated run o scenarios. The 85 percentile

is applied on company level, meaning that undiscounted liability for

incurred claims including RA would suce to cover 85% of the estima-

ted run o scenarios until all claims are expected value of estimated

run o. Changes in RA are recognised in insurance service result.

The reinsurance result is presented separately from the result from

issued insurance contracts in the financial statement. Insurance

finance income or expenses is fully presented in profit & loss.

Financial assets and liabilities

Recognition and derecognition

Financial assets and liabilities are recognised in the statement of

financial position from the time Protector becomes party to the in-

strument’s contractual terms and conditions. Regular way purchases

or sales are recognised on the transaction date. When a financial asset

or a financial liability is initially recognised in the financial

statements, it is measured at fair value.

Financial assets are derecognised when the contractual right to the

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

fers the financial asset to another party in a transaction by which all, or

substantially all, the risk and reward associated with ownership of the

asset is transferred.

Financial liabilities are derecognised in the statement of financial po-

sition 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

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

evaluated regularly at fair value. The investment portfolio is managed

and evaluated regularly on a fair value basis and thus measured at FVT-

PL. This is according to the Board of Directors’ approved risk manage-

ment and investment strategy. Financial assets that are measured to

fair value through profit & loss are recognised at fair value when ac-

quired, and transaction costs are recognised profit & loss immediately.

Financial assets and liabilities at amortised cost

Financial assets which have a contractual cash ﬂow held to collect and

that are only payment of principal and interest are classified and mea-

sured at amortised cost. Financial assets and liabilities are measured at

amortised cost using an eective interest method. Transaction costs

that are directly attributable to the issue of the loan are included in the

amortised cost. Financial assets and liabilities at amortised cost consist

respectively of loans to other external parties and subordinated loan

capital.

Impairment for expected credit losses

Impairment on assets measured at amortised cost is based on expe-

cted credit losses (ECL). This will also cover any ECL at the time of

granting (stage 1) arising from default within 12 months. ECL are a pro-

bability-weighted estimate of credit losses. Credit losses are measured

as the present value of all cash shortfalls. At each reporting date, Pro-

tector assesses whether financial assets measured at

amortised cost are credit impaired. A financial asset is credit impaired

when one or more events that have a detrimental impact on the

estimated future cash ﬂows of the financial asset have occurred.

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 do not aect

the profit & loss significant, but will have some eect on the balance

sheet and classification in the income statement. The rent is divided

into depreciation on the leasing asset and interest on the leasing debt.

Foreign Currency

The company and the branches have Norwegian, Swedish and Danish

kroner, British Pounds and Euro respectively as functional currency.

All financial information is presented in NOK unless otherwise stated.

Transactions in foreign currency are translated into functional curren-

cy at the exchange rate at the transaction date. Profit & loss items

related to Sweden, Denmark, Finland and UK are translated into NOK

at average rate, unless exchange rates ﬂuctuate significantly. Assets

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

Exchange dierences arising on currency translations are recognised

in other comprehensive income.

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.

Fixed assets and intangible assets

Fixed assets and intangible assets are recognised at acquisition

cost, and written down to actual value when the depreciation in

value is not expected to be temporary. Depreciations are deduc-

ted from the durable business assets and intangible assets. Poten-

tial expenditures or improvements are added to the business as-

sets acquisition cost and depreciate in line with the business asset.

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, or the

Board of Directors by power of attorney, 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, where it is

probable that this will result in the payment or transfer of other assets

to settle the obligation, and where 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 con-

tribution and the annual return on the pension savings. As

Protector has no further obligations other than payment of

contributions, no provisions are required. Defined contribution pensi-

on plans are expensed directly.

Tax

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

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

rate of corporation tax applied in the accounting periodwas 25% on

deferred tax and on payable tax.

Deferred tax the tax expected to be payable or recoverable in the

future arising from temporary dierences between the tax bases of

assets and liabilities and their carrying amounts in the financial

statements, together with tax losses 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 utilised.

Tax is recognised in the income statement, except when it relates to

items recognised in other comprehensive income or directly to equity,

in which case it is recognised in other comprehensive income or in

equity.

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.

44 2023 PROTECTOR FORSIKRING ANNUAL REPORT 452023 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 2 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of the financial statements and the application of the

adopted accounting policies require that management make assess-

ments, prepare estimates and apply assumptions that aect the

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

estimates and the associated assumptions are based on experience and

other factors that are assessed as being justifiable based on the under-

lying conditions. Actual figures may deviate from these

estimates. Changes in accounting estimates are recognised in the

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

or both in the period the estimates change and in future periods if the

changes aect both the existing and future periods.

The accounting policies that are used by Protector in which the

assessments, estimates and prerequisites may deviate significantly

from the actual results are discussed below.

Financial assets at fair value

There will be uncertainty associated with fair value measurement of

financial instruments particularly related to instruments that are not

quoted in an active market. See note 9.

Portfolio of insurance contracts

The choice of aggregation level is based on homogeneous product

groups, that are reported to the Board. The aggregation level is based

on products that represent similar risk, that the size of the

aggregated group is significant to credibly estimate profitability and

that the aggregated group have common management of

profitability and decision makers in the organization.

Insurance contract liability

Use of estimates in measurement of insurance contract liabilities is

primarily applicable for the liability for incurred claims. 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 include coverage for personal injuries and liability claims.

The uncertainty in the estimates of the liability for incurred claims is

highest for products with long settlement periods. The uncertainty is

reﬂected in the risk adjustment estimates for the dierent lines of

business.

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

that the total claims cost must be estimated based on experience and

empirical data. For certain personal injury claims, it may take 10 to 15

years before all claims that incurred in a particular year are reported

to the company. In addition, there will be several claims where the

reported information is inadequate to calculate reliable liability for

incurred claims. This may be due to ambiguity concerning the causal

relationship and uncertainty of the claimants’ future work capacity etc.

Several personal injury claims are tried in the court system, and the

average level of compensation for such claims has increased over time.

All claims that incurred in previous years and have not yet been settled

are subject to claims inﬂation. The risk related estimates of the future

cash ﬂows for lines of business covering personal injuries inherit risk of

regulatory changes and claims inﬂation. To reduce this risk, the compa-

ny estimates its liability for incurred claims based on various methods

and have implemented control mechanisms to ensure that the that the

registered liability for incurred claims is updated at all times based on

the most recent information of the claims and regulatory rates and

indices. The assumptions related to future inﬂation estimates are

considered to be a financial risk. Liability for incurred claims includes

amongst others RBNS (Reported But Not Settled), IBNR (Incurred

But Not Reported) and ULAE (Unallocated Loss Adjustment

Expenses). RBNS is estimated based on information on single claims

basis and could appear as standard reserves (based on previous

experience with similar claims), where limited information is available

or claims handler’s assessments, based on available information related

to the individual claims.

IBNR are estimated based on actuarial models. Models applied are

mainly variations based on Bornhuetter-Ferguson and Chain Ladder

methodologies. Bornhuetter-Ferguson is generally applied to

products with long settlement periods, while Chain Ladder could be

considered appropriate for products with short settlement periods.

The claims volume and period of exposure are assumed to be

sucient for most lines of business in Norway, to estimate a reliable

run-o pattern solely based on company data. Market data combined

with company’s claims experience is used to estimate a complete run

o pattern for lines of business where the company’s claims statistics

is assumed to be insucient to estimate reliable run o patterns, in

terms of either claims volume or maturity. Insucient maturity

applies to Workers’ Compensation in Denmark and Finland, as well as

Liability products in the UK. The models are useful support to IBNR

estimations, but all estimates are always subject to sanity checks, and

assessments of information not covered by model assumptions. Gross

IBNR is estimated per combination of accident year / segment / line

of business / country. Net IBNR is calculated proportionally to the net

premium where there are ceded premium. IBNR is in general set on

aggregated portfolio level. On rare occasions, where available claims

information is not reﬂected in RBNS, individual IBNR is applied on

single claims basis, until RBNS is updated.

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

handling, that is not allocated to the individual claims reserve. ULAE

is estimated based on expected remaining time to settle the claims

already incurred but not yet settled, and salaries for the

corresponding claims handlers.

Following implementation of IFRS 17, Risk Adjustment is included, and

discounting is applied to liability for incurred claims.

Risk Adjustment reﬂects a security margin that liability for incurred

claims would suce until all claims are settled with 85% probability.

Lines of business with long time to settlement and exposed to high

claims severity generate relatively higher risk adjustment than lines of

business with short time to settlement and more exposure for claims

frequency.

Discounting is applied on liability for incurred claims with swap rates

adopted to the currency of the claims provision where discounting is

applied. Estimated payment pattern consistent with assumptions

applied to IBNR reservation is applied to estimate cash ﬂow subject to

discounting. Lines of business with longer time to settlement

generate more significant discounting eect than lines of business

with short time to settlement.

The financial eect of discounting is decomposed in three elements,

including “current period’s change”, “unwinding” and “change in

assumptions”.

“Change in assumptions” include the eect of interest rate change

and represent the dierence between current discounting eect and

simulated eect of last reporting period’s swap rates applied on

current claims provision.

“Unwinding” represents the expected reduction of discounting

eect on liability for incurred claims during the period, assuming

claims payment during the period follow the projected payment

pattern used for discounting. The unwinding eect is predetermined,

based on last reporting period’s assumptions, and can be estimated

to be “discounting eect” multiplied by the period elapsed since last

reporting period, divided by the estimated duration of the claims

provision.

“Current period’s change” represents the discounting eect of

liability for incurred claims stemming from claims incurred during

the reporting period and deviations from last period’s expected

claims development assumptions.

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.

Discount rates

Insurance contract liabilities are calculated by discounting expected

future cash ﬂows with risk free interest rate, including illiquidity

premium where applicable. Risk free interest rates are determined

by reference to the yields of highly liquid AAA-rated sovereign

securities in the currency of the insurance contract liabilities. The

illiquidity premium is determined by reference to observable mar-

ket rates. Observable market rates are either inputs such as quoted

prices for identical assets or liabilities in active markets, or inputs

other than quoted prices included within Level 1 that are observable

for the asset or liability, either directly or indirectly.

Discount rates applied for discounting of future cash ﬂows are listed

below:

1 year 3 years 5 years 10 years

2023 2022 2023 2022 2023 2022 2023 2022

Insurance contracts issued

NOK

4,21 % 3,38 % 3,67 % 3,37 % 3,43 % 3,26 % 3,33 % 3,29 %

SEK

3,55 % 3,70 % 2,59 % 3,41 % 2,38 % 3,27 % 2,36 % 3,12 %

DKK

3,19 % 3,82 % 2,72 % 3,44 % 2,62 % 3,40 % 2,67 % 3,35 %

EUR

3,35 % 3,67 % 2,46 % 3,24 % 2,36 % 3,18 % 2,46 % 3,19 %

GBP

4,73 % 4,45 % 3,69 % 4,33 % 3,38 % 4,10 % 3,29 % 3,75 %

Reinsurance contracts

issued

NOK

4,21 % 3,38 % 3,67 % 3,37 % 3,43 % 3,26 % 3,33 % 3,29 %

SEK

3,55 % 3,70 % 2,59 % 3,41 % 2,38 % 3,27 % 2,36 % 3,12 %

DKK

3,19 % 3,82 % 2,72 % 3,44 % 2,62 % 3,40 % 2,67 % 3,35 %

EUR

3,35 % 3,67 % 2,46 % 3,24 % 2,36 % 3,18 % 2,46 % 3,19 %

GBP

4,73 % 4,45 % 3,69 % 4,33 % 3,38 % 4,10 % 3,29 % 3,75 %

46 2023 PROTECTOR FORSIKRING ANNUAL REPORT 472023 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 3 INSURANCE RISK

The company has clearly specified guidelines for the type of insurance

risks, as well as acceptable limits of liabilities 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 are combinations of

quota share and XL structures, further reduces the risk exposure. Insu-

rance risks are assessed moderate, considering the reinsurance covers

in place.

Reserve risk

Reserve risk is the risk of loss, or of adverse change, in the value of in-

surance liabilities, resulting from ﬂuctuations in the timing and amount

of claims settlements for events that have occurred at, or prior to the

reporting date.

As the policy period elapses, the insurance risk transacts from un-

derwriting to reserve risk, where the part of premium provisions that

expects to result in future payments for claims incurred, are included

in liability for incurred claims. Clients will always report claims with a

certain delay. Depending on the complexity of the claim, a shorter or

longer period of time passes until the amount of the claim has been fi-

nally settled. This may be a prolonged process particularly for personal.

Even when the claim is assumed to be settled, there is a risk that it will

be resumed at a later date and generate further payments.

The amount of the liability for incurred claims is estimated based on

combinations of individual assessments and actuarial calculations. The

table below shows how future cash ﬂow is related to provisions for

outstanding claims for own account on 31 December.

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 in the Nordic market and UK. Protector covers the

most common lines of business within general insurance.

Protector seeks to diversify the insurance portfolio to reduce the

variability of the expected results.

Underwriting risk

Underwriting risk is the risk related to whether charged premium are

sucient to cover liabilities related to the insurance contracts in force.

Underwriting risk may arise from inaccurate assessment of the risks

associated with the written insurance policies or from uncontrollable

factors.

This risk is assessed and managed on the basis of statistical

analysis of historical experience for the various lines of business. The

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

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

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

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

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

premium.

Reinsurance is used to reduce the underwriting risk in areas where this

is particularly required.

UNDISCOUNTED CASH FLOW CONNECTED TO NET LIABILITY FOR INCURRED CLAIMS

[NOKm] At 31 December 2023 Total 0 - 1 years 1 - 2 years 2-3 years 3-4 years 4-5 years More than 5 years

’Liability for incurred claims

9 067,5 3 123,6 1 412,7 967,4 717,3 495,2 2 351,4

The calculation of liability for incurred claims will always be subject to

significant uncertainty. Historically, many insurers have experienced

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

resulting from reserving risk.

Reserving risk is managed by compliance with a reserving policy,

covering the process for determining provisions for claims, and is

updated and aligned at all times according to relevant principles for

the risk exposure. Included in the reserving policy is processes for

model evaluations and control mechanisms.

The table below illustrates development of total claims estimates in

Protector:

GROSS CLAIMS DEVELOPMENT

[NOKm]

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total

2014

1 435,1 1 435,1

2015

1 400,4 1 793,8 3 194,2

2016

1 447,4 1 744,3 2 288,8 5 480,5

2017

1 390,3 1 722,2 2 359,9 3 554,6 9 027,1

2018

1 353,3 1 708,7 2 341,5 3 483,9 3 882,6 12 770,0

2019

1 330,0 1 728,2 2 410,8 3 505,7 3 991,9 4 318,7 17 285,3

2020

1 379,3 1 798,7 2 551,6 3 535,3 4 104,7 4 329,9 4 018,7 21 718,1

2021

1 382,3 1 847,4 2 535,5 3 531,7 4 197,5 4 283,9 3 979,0 3 992,6 25 750,0

2022

1 385,9 1 858,5 2 534,4 3 605,3 4 237,3 4 409,1 3 955,8 3 876,3 4 826,1 30 688,7

Estimated amount

as at 31.12.2023

1 380,8 1 882,4 2 602,5 3 675,4 4 287,1 4 554,1 4 023,1 3 819,4 5 411,6 6 656,9 38 293,4

Total disbursed

1 257,1 1 649,8 2 159,9 3 259,5 3 645,0 3 593,6 3 131,2 2 882,3 3 409,4 2 770,5 27 758,4

Liability for

incurred claims

before discounting

123,7 232,6 442,5 415,9 642,1 960,5 891,9 937,1 2 002,2 3 886,4 10 534,9

Discounting eect

21,4 43,4 86,3 72,3 108,7 162,7 136,2 127,5 240,6 325,3 1 324,4

Liability for

incurred claims

102,3 189,2 356,3 343,6 533,3 797,9 755,7 809,5 1 761,6 3 561,1 9 210,6

Liability for

incurred claims

from claims prior

years

(before 2014)

101,9

Liability for

indirect claims

handling costs

(ULAE)

502,7

Total Liability for

incurred claims

9 815,2

48 2023 PROTECTOR FORSIKRING ANNUAL REPORT 492023 PROTECTOR FORSIKRING ANNUAL REPORT

SENSITIVITY ANALYSIS

2023

[NOKm]

Change in

assumptions

Impact on profit

before tax gross

of reinsurance

Impact on profit

before tax net of

reinsurance

Impact on equity gross

of reinsurance

Impact on equity net

of reinsurance

Weighted average term to

settlement

10 % 113,3 82,3 84,9 61,7

Expected loss

10 % (981,5) (812,1) (736,1) (609,1)

Inﬂation rate

1 % (401,0) (280,2) (300,8) (210,2)

Weighted average term to

settlement

-10 % (115,5) (83,5) (86,6) (62,6)

Expected loss

-10 % 981,5 812,1 736,1 609,1

Inﬂation rate

-1 % 365,9 259,7 274,4 194,8

2022

[NOKm]

Change in

assumptions

Impact on profit

before tax gross

of reinsurance

Impact on profit

before tax net of

reinsurance

Impact on equity gross

of reinsurance

Impact on equity net

of reinsurance

Weighted average term to

settlement

10 % 100 62 75 46

Expected loss

10 % (813) (578) (610) (433)

Inﬂation rate

1 % (329) (201) (247) (150)

Weighted average term to

settlement

-10 % (103) (64) (77) (48)

Expected loss

-10 % 813 578 610 433

Inﬂation rate

-1 % 303 186 227 139

Sensitivity of underwriting risk is stressed by adjusting future claims

expenses, including claims handling cost with +/- 10% of the proje-

cted claims expenses. Applied stress factors may arise from inac-

curate assessment of the risks associated with the written insurance

policies or from uncontrollable factors.

Sensitivity of reserve risk is stressed by adjusting the expected time

to settlement with +/- 10%, resulting in correspondingly dierent

discounting eects. The applied stress factor may arise from failure

to understand the claims development pattern or changes in risk,

causing the future claims development pattern to dier from the

historic development.

Additionally, insurance liabilities are stressed with the event that

annual inﬂation rates are 1%-point higher than assumed inﬂation, re-

sulting in correspondingly dierent valuations of insurance liabiliti-

es, where Lines of Business with the longest assumed time to claims

settlement are aected more severely. The applied stress factor may

arise from changes in the legal environment or macro economic

conditions.

The size of liability for incurred claim

Insurance events are random, and the number and amount of claims

and benefits will vary from year to year from the initial estimates,

using statistical techniques. Experience demonstrates that the larger

the portfolio of similar insurance contracts, the smaller the relative

variability of the expected outcome will be.

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

factors. The dierent factors will depend on the lines of business at

risk. Increase in the frequency of claims can be caused by

seasonal eects or eects related to trends or shifts in underlying

risk. Lines of businesses, where claims frequency is low, severe claims

are more likely to have a greater impact to results. For all lines of

business, inﬂation impacts the underlying development of the claim’s

severity.

Sensitivities

The liability for incurred claims is sensitive to the key assumptions in

the table below. Quantification of the sensitivity of certain assump-

tions such as legislative changes or uncertainty in the estimation

process have not been estimated, due to lack of reliable estimates.

The following sensitivity analysis shows the impact on gross and net

liabilities, profit before tax and equity for reasonably likely

deviations in key assumptions, and other assumptions (refer Note 2)

unchanged. The correlation of assumptions expect to have signifi-

cant eects in determining the ultimate estimates. To demonstrate

the impact caused by changes in individual assumption, assumptions

have been changed individually. Movements in these assumptions are

non-linear. The method used for deriving sensitivity information and

significant assumptions are unchanged since the previous reporting

period.

CASH FLOW FOR FINANCIAL LIABILITIES GROUPED BY MATURITY

[NOKm] At 31 December

2023

Less than one year 1 - 3 years More than 3 years Total cash ﬂow Total carrying amount

Subordinated debt*

160,0 1 125,7 1 170,2 2 456,0 1 891,7

Foreign exchange derivatives

241,2 241,2 241,2

Financial liabilities excl. other

liabilities**

401,2 1 125,7 1 170,2 2 697,1 2 132,9

* The cash ﬂow is calculated up to the first call

** Other liabilities are specified in note 24 and has a maturity less than one year, with the exception of lease liabilities. Cf. note 12 for maturity

analysis.

Market risk

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

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

financial instruments. Protector is exposed to risks related to changes in the level of volatility of market prices of equities, credit spreads and

interest rates through its investment activities.

A decline of 10% in the market value of equities is estimated to aect profit before tax negatively by NOK 280,3 million including the use of put

options.

A one %-point increase (100 bps) in credit spread would lead to an estimated loss of NOK 291,6 million, corresponding to a credit spread

sensitivity of approximately 1.9%.

An increase of one %-point (100 bps) in interest rates will lead to a reduction in the portfolio of bonds and other fixed-income securities by an

estimate of NOK 355,9 million before tax.

This corresponds to an interest rate sensitivity of approximately 2.2% and includes the use of interest rate swaps.

NOTE 4 FINANCIAL 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.

Protector do not have any insurance contracts that are payable on

demand.

50 2023 PROTECTOR FORSIKRING ANNUAL REPORT 512023 PROTECTOR FORSIKRING ANNUAL REPORT

SENSITIVITY ANALYSIS

[NOKm]

Change in

assumptions

Impact on profit

before tax

Impact on profit/

equity

Impact on profit

before tax

Impact on profit/equity

Change in market value of

equities

10 % +/- 280,3 +/- 210,2 +/- 246,3 +/- 184,7

Change in credit spreads

1 % +/- 291,6 +/- 218,7 +/- 263,4 +/- 197,5

Change in interest rates

1 % +/- 355,9 +/- 267,0 +/- 311,8 +/- 233,9

Including hedging instruments.

Calculated using 25% tax rate.

Foreign exchange risk

Foreign exchange risk is defined as the financial loss resulting from 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%, within permitted limit of +/- five % per

currency.

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.

Outstanding claims against the company’s reinsurers represent a credit risk. Counterparty risk on the reinsurance market is assessed on a

continuous basis.

Protector normally buys reinsurance through reinsurers with a credit rating of A- (S&P), or higher. The total credit risk in the company is

regarded as acceptable.

RATING

[NOKm]

2023 2022

Bonds and other fixed-income securities

AAA

3 977,0 3 065,6

334,7 546,5

806,2 872,0

BBB

1 089,8 661,6

506,3 323,7

130,5 34,5

No rating

5 875,6 4 849,6

Total bond by rating

12 720,1 10 353,5

Bond fund not managed by Protector

2 391,1 1 014,1

Total bonds and other fixed-income securities

15 111,2 11 367,6

Bank deposits related to investment portfolio

251,2 220,7

171,1 531,3

BBB

- -

No rating

86,7 129,3

Total bank deposits related to investment portfolio

508,9 881,3

Loans at amortised cost

No rating

30,3 -

Total loans at amortised cost

30,3 -

52 2023 PROTECTOR FORSIKRING ANNUAL REPORT 532023 PROTECTOR FORSIKRING ANNUAL REPORT

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 A- 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 weighted average for the bond portfolio is assessed as investment grade (IG) based on both ocial ratings and internal ratings. The

calculation is the average of a linear scale where AAA-rating has value 1 and CCC-rating has value 17 where we use ocial ratings whenever

available and internal rating where ocial ratings are not available. Our portfolio and rating assessment reﬂect the Nordic bond market where

IG-issuers are mainly rated, and HY-issuers are mainly unrated.

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

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

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

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

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

investment management mandate is monitored internally and is reported internal in the company and to the Board of Directors on regular basis.

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

to the Board of Directors.

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 2023 no risk conditions that were not adequately

controlled. The operational risk is considered to be low.

Strategic Risk

The strategic risk is connected with Protector’s distribution, IT solutions, market ﬂexibility, cooperation partners, reputation and changes in

market conditions (the list is not necessarily exhaustive). Protector’s strategy is continuously assessed against results, market and competitive

changes and changes in framework conditions. Factors that are of critical importance to the company’s goal and target achievement are moni-

tored separately.

Climate Risk

The company has also exposure to risk related to climate and climate change. Assessment of risks related to climate changes is a part of the

company’s risk management system. Assessment of potential risks factors and impact on Protector’s (insurance) business are carried out with

a starting point in publications by Intergovernmental Panel on Climate Change (IPCC) analysing climate change and future scenarios, analysis

and assessments of risk factors and potential impacts related to climate and climate change carried by Task Force on Climate-related Financial

Disclosures (TCFD), United Nations Environment Programme (UNEP) Finance Initiative, and EIOPA.

Protector is, at the outermost, exposed to either transitional or physical risk related to climate changes. Transition risk, being a risk that arise

from the transition to a low-carbon and climate resilient economy, is closely related to Representative Concentration Pathway (RCP) 2,6; a

stringent mitigation scenario that aims to keep global warming likely below 2°C above pre-industrial temperatures, but unlikely to exceed 2°C.

Transition risk has an inherent low visibility and potentially a wide range of possible outcomes not yet observed as a result of being related to

future changes in policy, legal environment, technology, consumer behaviour etc. Physical risk, being risk that arises from the physical eects of

climate change, is closely related to RCP8,5; a scenario without additional eorts to constrain emissions, resulting in very high greenhouse gas

(GHG) emissions. Global surface temperature change for the end of the 21st century (2081–2100) is projected to likely exceed 2°C in a range

of 2,6°C to 4,8°C. Physical risk is more observable and currently lends itself better for an assessment of potential risks and consequences. It has

to be observed though that the confidence interval for assessment of potential consequences is wide especially beyond the short-term horizon.

NOTE 5 SEGMENT INFORMATION

UK Sweden Norway Denmark Finland Total

2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022

Insurance revenue

3 503,6 1 813,6 2 399,8 1 942,4 1 883,4 1 582,5 1 335,8 1 040,4 263,0 240,2 9 385,5 6 619,1

Insurance claims expenses

(2 467,3) (1 237,3) (1 785,1) (1 398,1) (1 679,6) (1 291,5) (1 059,4) (937,8) (190,3) (180,1) (7 181,7) (5 044,8)

Insurance operating expenses

(417,1) (264,3) (322,2) (241,3) (137,5) (100,4) (99,7) (87,2) (34,7) (41,4) (1 011,2) (734,5)

Insurance service result before

reinsurance contracts held

619,1 312,0 292,5 303,1 66,3 190,7 176,7 15,4 38,0 18,7 1 192,7 839,9

Reinsurance premium

(364,8) (343,7) (119,7) (212,0) (27,8) (144,3) (69,6) (108,4) (1,8) (18,0) (583,7) (826,4)

Amounts recovered from reinsu-

rance

363,9 235,1 20,7 146,3 16,8 139,9 69,2 149,2 0,3 16,7 470,9 687,3

Net result from reinsurance

contracts held

(0,8) (108,6) (99,0) (65,6) (11,1) (4,4) (0,4) 40,9 (1,5) (1,3) (112,8) (139,1)

Insurance service result

618,3 203,4 193,5 237,4 55,2 186,3 176,3 56,3 36,6 17,4 1 079,9 700,8

Large losses, net of reinsurance

9,4 % 10,0 % 2,0 % 7,5 % 6,0 % 2,9 % 4,4 % 5,1 % 0,0 % 0,0 % 5,9 % 6,4 %

Run-o gains/losses, net of

reinsurance

2,8 % -2,0 % -1,3 % -4,7 % -1,1 % -0,1 % 0,7 % 0,2 % -10,7 % -2,7 % 0,3 % -2,0 %

Change in risk adjustment, net of

reinsurance

2,6 % 2,8 % 0,2 % 0,4 % 0,4 % 1,0 % 1,9 % 0,1 % 3,2 % 1,5 % 1,5 % 1,2 %

Discounting eect

-6,0 % -4,1 % -1,8 % -0,9 % -1,8 % -2,9 % -5,8 % -1,0 % -9,3 % -2,3 % -4,2 % -2,3 %

Loss ratio

70,4 % 68,2 % 74,4 % 72,0 % 89,2 % 81,6 % 79,3 % 90,1 % 72,3 % 75,0 % 76,5 % 76,2 %

Net reinsurance ratio

0,0 % 6,0 % 4,1 % 3,4 % 0,6 % 0,3 % 0,0 % -3,9 % 0,6 % 0,5 % 1,2 % 2,1 %

Loss ratio, net of reinsurance

70,4 % 74,2 % 78,5 % 75,4 % 89,8 % 81,9 % 79,3 % 86,2 % 72,9 % 75,5 % 77,7 % 78,3 %

Cost ratio

11,9 % 14,6 % 13,4 % 12,4 % 7,3 % 6,3 % 7,5 % 8,4 % 13,2 % 17,2 % 10,8 % 11,1 %

Combined ratio

82,4 % 88,8 % 91,9 % 87,8 % 97,1 % 88,2 % 86,8 % 94,6 % 86,1 % 92,8 % 88,5 % 89,4 %

As of 31.12.23, Protector do not have any onerous insurance contracts with loss-recovery components.

54 2023 PROTECTOR FORSIKRING ANNUAL REPORT 552023 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 6 INSURANCE CONTRACT ASSETS & LIABILITIES

Reconciliation of the liability for insurance contracts issued showing the liability for remaining coverage and the liability for incurred claims

2023.

2023

Contracts under PAA

[NOKm]

Liabilities for

remaining coverage

Liabilities for incurred

claims

Total

Estimates

of the

present

value of

future cash

ﬂows

Risk

adjustment

for non-

financial risk

Insurance contract liabilities as at 01.01 (opening balance)

1 140,6 8 127,7 881,6 10 149,9

Changes in the statement of profit or loss and OCI

Insurance revenue

9 385,5 - - 9 385,5

Insurance claims expenses

- (6 645,2) (106,6) (6 751,8)

Run-o previous years adjustments

- (429,9) - (429,9)

Insurance operating expenses which aect insurance contract

liabilities

- (968,7) - (968,7)

Insurance service result before reinsurance contracts held

9 385,5 (8 043,8) (106,6) 1 235,1

Insurance finance income or expense

- (432,9) - (432,9)

Total changes in the statement of profit or loss and OCI

9 385,5 (8 476,7) (106,6) 802,2

Cash ﬂows

Premiums received

9 807,1 - - 9 807,1

Claims paid

- (6 278,2) - (6 278,2)

Other expenses paid which aect insurance contract liabilities

32,4 (927,3) - (894,9)

Total cash ﬂows

9 839,5 (7 205,5) - 2 634,0

Exchange rate dierences

111,6 416,2 49,6 577,5

Insurance contract liabilities as at 31.12

1 706,2 9 815,2 1 037,8 12 559,2

As of 31.12.23, Protector do not have any onerous insurance contracts with a loss component

NOTE 6 INSURANCE CONTRACT ASSETS & LIABILITIES cont.

Reconciliation of the liability for insurance contracts issued showing the liability for remaining coverage and the liability for

incurred claims 2022.

2022

Contracts under PAA

[NOKm]

Liabilities for

remaining coverage

Liabilities for incurred

claims

Total

Estimates

of the

present

value of

future cash

ﬂows

Risk

adjustment

for non-

financial risk

Insurance contract liabilities as at 01.01 (opening balance)

1 039,1 8 003,9 835,7 9 878,7

Changes in the statement of profit or loss and OCI

Insurance revenue

6 619,1 - - 6 619,1

Insurance claims expenses

- (4 962,5) (32,5) (4 995,0)

Run-o previous years adjustments

- (49,8) - (49,8)

Insurance operating expenses which aect insurance contract

liabilities

- (745,5 - (745,5)

Insurance service result before reinsurance contracts held

6 619,1 (5 757,7) (32,5) 828,9

Insurance finance income or expense

- 671,7 - 671,7

Total changes in the statement of profit or loss and OCI

6 619,1 (5 086,0) (32,5) 1 500,6

Cash ﬂows

Premiums received

6 505,1 - - 6 505,1

Claims paid

- (5 080,6) - (5 080,6)

Other expenses paid which aect insurance contract liabilities

- - - -

Total cash ﬂows

6 505,1 (5 080,6) - 1 424,5

Exchange rate dierences

215,5 118,3 13,4 347,2

Insurance contract liabilities as at 31.12

1 140,6 8 127,7 881,6 10 149,9

As of 31.12.22, Protector do not have any onerous insurance contracts with a loss component.

56 2023 PROTECTOR FORSIKRING ANNUAL REPORT 572023 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 6 INSURANCE CONTRACT ASSETS & LIABILITIES cont.

Reconciliation of the assets from reinsurance contracts issued showing the assets for remaining coverage and the assets for incurred claims

2023.

2023

Contracts under PAA

[NOKm]

Assets for

remaining coverage

Assets for incurred claims Total

Estimates of

the

present va-

lue of future

cash ﬂows

Risk

adjustment

for non-

financial risk

Reinsurance contract assets at 01.01

226,1 494,9 308,0 1 029,1

Changes in the statement of profit or loss and OCI

Reinsurance premium

(583,7) - - (583,7)

Amounts recovered from reinsurance

- 96,8 (30,3) 66,4

Run-o previous years adjustments

404,5 - 404,5

Net result from reinsurance contracts held

(583,7) 501,2 (30,3) (112,8)

Reinsurance finance income or expense

- 49,0 - 49,0

Total changes in the statement of profit or loss and OCI

(583,7) 550,3 (30,3) (63,8)

Cash ﬂows

Premium paid

(384,6) - - (384,6)

Amounts received

- 331,3 - 331,3

Total cash ﬂows

(384,6) 331,3 - (53,3)

Exchange rate dierences

21,0 35,5 18,3 74,8

Reinsurance contract assets / (liabilities) as at 31.12

47,9 749,4 296,0 1 093,3

As of 31.12.23, Protector do not have any onerous insurance contracts with a loss-recovery component.

REINSURANCE

NOTE 6 INSURANCE CONTRACT ASSETS & LIABILITIES cont.

Reconciliation of the assets from reinsurance contracts issued showing the assets for remaining coverage and the assets for incurred

claims 2022

2022

Contracts under PAA

[NOKm]

Assets for remaining

coverage

Assets for incurred claims Total

Estimates

of the

present

value of

future cash

ﬂows

Risk

adjustment

for non-

financial risk

Reinsurance contract assets as at 01.01

177,1 604,8 347,0 1 128,9

Changes in the statement of profit or loss and OCI

Reinsurance premium

(826,4) - - (826,4)

Amounts recovered from reinsurance

- 550,9 (47,1) 503,8

Run-o previous years adjustments

- 183,5 - 183,5

Net result from reinsurance contracts held

(826,4) 734,4 (47,1) (139,1)

Reinsurance finance income or expense

- (47,9) - (47,9)

Total changes in the statement of profit or loss and OCI

(826,4) 686,5 (47,1) (187,0)

Cash ﬂows

Premium paid

(881,9) - - (881,9)

Amounts received

- 814,1 - 814,1

Total cash ﬂows

(881,9) 814,1 - (67,7)

Exchange rate dierences

(6,5) 17,8 8,1 19,4

Reinsurance contract assets as at 31.12

226,1 494,9 308,0 1 029,1

As of 31.12.22, Protector do not have any onerous insurance contracts with a loss-recovery component.

58 2023 PROTECTOR FORSIKRING ANNUAL REPORT 592023 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 7 INSURANCE CONTRACT LIABILITIES BY LINE OF BUSINESS

General Insurance Life Insurance

[NOKm]

Medical

expense

insurance

income

protection

insurance

Workers'

compensation

insurance

Motor

vehicle

liability

insurance

Other

motor

insurance

Marine,

aviation and

transport

insurance

Fire and

other

damage to

property

insurance

General

liability

insurance

Miscellaneous

financial loss

Direct

business and

accepted

proportional

reinsurance:

Group life Sum total

As at 31 December 2023

Insurance contract liabilities

Insurance contract liabilities for

remaining coverage (LRC)

53,5 34,0 (163,8) 78,7 232,1 5,0 1 147,4 257,7 (1,3) 1 643,2 63,0 1 706,2

Insurance contract liabilities for

incurred claims (LIC)

370,4 578,0 2 593,4 1 219,6 401,5 8,8 2 564,0 1 918,0 0,4 9 654,1 161,1 9 815,2

Insurance contract liabilities for

incurred claims risk adjustment (RA)

19,0 59,8 477,6 132,1 3,8 0,2 67,5 275,2 0,0 1 035,2 2,7 1 037,8

Total Insurance contract liabilities

442,8 671,7 2 907,2 1 430,3 637,4 14,0 3 778,9 2 451,0 (0,9) 12 332,5 226,8 12 559,2

As at 31 December 2022

Insurance contract liabilities

Insurance contract liabilities for

remaining coverage (LRC)

36,6 41,4 (135,3) 33,0 203,3 3,6 707,5 180,8 (1,2) 1 069,6 70,9 1 140,6

Insurance contract liabilities for

incurred claims (LIC)

309,4 601,8 2 530,9 1 187,3 293,3 7,8 1 607,4 1 456,0 0,6 7 994,4 133,3 8 127,7

Insurance contract liabilities for

incurred claims risk adjustment (RA)

16,0 47,4 431,8 129,3 2,7 0,1 39,4 213,8 0,0 880,5 1,1 881,6

Total Insurance contract liabilities

361,9 690,6 2 827,5 1 349,5 499,3 11,5 2 354,3 1 850,6 (0,6) 9 944,5 205,4 10 149,9

60 2023 PROTECTOR FORSIKRING ANNUAL REPORT 612023 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 8 INSURANCE OPERATING EXPENSES

[NOKm] 2023 2022

Commissions

411,6 256,6

Depreciations

60,6 57,2

Salary- and pensions costs (note 21)

730,1 544,2

Oce costs

14,5 6,5

Remunerations

41,2 34,7

Claims handling costs (transferred to gross claims paid)

(375,3) (311,5)

Internal administrative costs

(68,5) (35,1)

Other insurance-related administrative expenses

106,3 87,2

Taxes and levies

73,4 66,7

Other insurance-related expenses

17,2 27,9

Insurance operating expenses

1 011,2 734,5

AUDITOR’S FEES

[1.000 NOK] 2023 2022

Auditing (inclusive VAT)

2 159 2 259

Other certification services (inclusive VAT)

68 19

Services regarding tax (inclusive VAT)

386 452

Other services outside auditing (inclusive VAT)

239 94

Total

2 851 2 824

NOTE 9 INVESTMENTS

[NOKm] Book value

31.12.23

Fair value

31.12.23

Book value

31.12.22

Fair value

31.12.22

2 983,4 2 983,4 2 647,7 2 647,7

Bonds and other fixed-income securities

15 111,2 15 111,2 11 367,6 11 367,6

Financial derivatives

273,3 273,3 69,0 69,0

Bank deposits related to investments*

508,8 508,8 881,3 881,3

Total financial assets at fair value

18 876,8 18 876,8 14 965,6 14 965,6

Financial assets at fair value - discontinued operations

600,1 600,1 705,0 705,0

Financial assets at fair value - continued operations

18 276,6 18 276,6 14 260,6 14 260,6

Financial derivatives

(241,2) (241,2) 54,8 54,8

Total financial liabilities at fair value

(241,2) (241,2) 54,8 54,8

Loan to other companies

30,3 30,3 0,0 0,0

Total financial assets at amortized cost

30,3 30,3 0,0 0,0

Subordinated debt

(1 891,7) (1 891,7) (1 244,7) (1 244,7)

Total financial liabilities at amortized cost

(1 891,7) (1 891,7) (1 244,7) (1 244,7)

*Bank deposits are split in Statement of Financial Position into bank deposit for investment purposes and operation purposes.

[NOKm] Currency Fair value Identification no.

Norwegian companies

Knowit AB SEK

375.3

Indus Holding AG EUR

281.4

Jyske Bank A/S DKK

224.9

Duni AB SEK

213.6

FBD Holdings PLC EUR

194.5

Elanders AB Class B SEK

182.0

ISS A/S DKK

166.0

Lassila And Tikanoja EUR

158.7

B3 Consulting Group AB SEK

136.9

Schouw & Co. A/S DKK

136.2

eWORK Group AB SEK

135.2

Dustin Group AB SEK

90.9

Bredband2 SEK

83.4

AFRY AB SEK

70.3

Storskogen Group AB SEK

60.0

Axxelerator Capital NOK

54.8

Seafire AB SEK

54.2

Idun Industrier AB ser. B SEK

42.4

Innofactor PLC EUR

37.4

Solid Försäkringsaktiebolag SEK

36.7

Nilörngruppen AB ser. B SEK

31.9

Webstep ASA NOK

31.0 996 394 638

Norconsult ASA NOK

31.0 963 865 724

Projektengagemang Sweden AB SEK

29.1

Verkkokauppa.com Oyj EUR

27.0

Strix group GBP

26.3

Origin Enterprises PLC ORD EUR

22.1

BankNordik P/F DKK

18.6

Headlam Group Plc GBB

14.6

Time People Group AB SEK

9.2

Siili Solutions Oyj A EUR

6.6

Christian Berner Tech Trade AB SEK

1.1

Forsikringsakademiet DKK

0.1

Total shares

2 983,4

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

kademiet is not listed, as well as Axxelerator which is a PE Fund. The share portfolio is diversified, but aected by ﬂuctuations in the stock market, in

addition to the regular development in each company.

62 2023 PROTECTOR FORSIKRING ANNUAL REPORT 632023 PROTECTOR FORSIKRING ANNUAL REPORT

BONDS AND OTHER FIXED-INCOME SECURITIES

[NOKm] Fair value Duration

Government bonds etc.

4 321,6 0,94

Corporate bonds etc.

8 398,5 1,12

Bond fund

2 391,1 0,85

Loans to other companies

30,3 0,10

Total bonds and other fixed-income securities year 2023

15 141,5

- of this, subordinated debt in other companies 2023

176,6 0,78

Total bonds and other fixed-income securities year 2022

11 367,6 1,64

- of this, subordinated debt in other companies 2022

177,0 0,91

Exclusive interest swaps

Average yield adjusted for currency hedging eects is 5.8%.

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.

VALUATION OF FINANCIAL ASSETS AND LIABILITIES

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

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

based on recognised methods and models.



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

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

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

equivalent instruments issued by national governments are generally classified as level 1.

Level 2: Financial instruments measured 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 indire-

ctly 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 measured on the basis of information that is not observable in accordance with level 2

If one or more of the inputs to the measurement is not based on observable market input, the instrument is categorised in level 3/this

category.

[NOKm] Financial assets at fair value through profit or loss Level 1 Level 2 Level 3 Total

521,1 2 407,5 54,8 2 983,4

Bonds and other fixed-income securities

- 15 111,2 - 15 111,2

Bank deposits

508,9 - - 508,9

Derivatives:

- - - -

Interest rate swaps

- 156,6 - 156,6

Foreign exchange contracts

- 98,6 - 98,6

Options

- 18,1 - 18,1

Total financial assets year 2023

1 030,0 17 792,0 54,8 18 876,8

Total financial assets year 2022

1 249,4 13 567,8 148,4 14 965,6

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

Foreign exchange contracts

(241,2) (241,2)

Total financial liabilities year 2023

- (241,2) - (241,2)

Total financial liabilities year 2022

- (54,8) - (54,8)

[NOKm] Financial assets at amortized cost Level 1 Level 2 Level 3 Total fair

value

Total book

value

Loan to other companies*

30,3 30,3 30,3

Total financial assets year 2023

- 30,3 30,3 30,3

Total financial assets year 2022

- - - -

[NOKm] Financial liabilities at amortized cost

Level 1 Level 2 Level 3 Total fair

value

Total book

value

Subordinated debt

(1 891,7) - (1 891,7) (1 891,7)

Total financial liabilities year 2023

(1 891,7) - (1 891,7) (1 891,7)

Total financial liabilities year 2022

(1 244,7) - (1 244,7) (1 244,7)

*Protector has entered into a loan agreement with ﬂoat interest over 1.5 years

There has not been any movements of financial assets between quoted prices and observable assumptions.

MOVEMENT LEVEL 3

Financial assets at

fair value through

profit or loss

Financial assets

at amortized

cost

Total

[NOKm]

Book value 01.01.2023

148,4 - 148,4

Net profit/loss

4,1 0,3 4,4

Supply/disposal

11,4 30,0 41,4

Sales/overdue/settlement

- - -

Translation dierences

- - -

Other*

(109,1) - (109,1)

Book value 31.12.2023

54,8 30,3 85,1

*Correction of previous year level division for one security

Protector has considered expected credit loss on financial assets measured at amortised cost, and this will have an immaterial eect on the

financial statement.

64 2023 PROTECTOR FORSIKRING ANNUAL REPORT 652023 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 10 NET INCOME FROM INVESTMENTS

[NOKm] 2023 2022

Net income from investments

Income from investments in associated companies

- 21,1

Interest income¹

549,5 365,7

Dividend shares

134,6 114,6

Unrealised gains/losses on financial assets

(6,8) (128,9)

Gains/losses from realisation of financial assets

759,8 164,0

Administrations expenses for financial assets management

(65,4) (36,1)

Net income from investments

1 371,6 500,6

Net income from investments discontinued operations

43,6 23,6

Net income from investments continued operations

1 328,0 477,0

NET INCOME FROM INVESTMENTS DIVIDED BY ASSET CLASS

[NOKm] 2023 2022

Income from investments in associated companies

21,1

Interest income from financial assets at fair value through profit or loss

549,2 365,6

Interest income from financial assets at amortized cost

0,3 -

Dividend

134,6 114,8

Net gains / (loss) from shares

163,9 252,3

Net gains / (loss) from bonds and other fixed-income securities

657,2 (111,0)

Net gains / (loss) from foreign exchange contracts

(68,2) (106,1)

Administrations expenses for financial assets management

(65,4) (36,1)

Total net income and gains/ (loss) from investments at fair value through profit or loss

1 371,6 500,6

Net income from investments discontinued operations

43,6 23,6

Net income from investments continued operations

1 328,0 477,0

¹Interest income is measured based on eective interest method. Transactions costs are directly recognised in profit & loss.

NOTE 11 COLLATERAL

[NOKm] 2023 2022

Collateral provided in cash in connection with derivatives trading

(69,0) (24,1)

Collateral provided in bonds

(199,5) -

Collateral received in connection with derivatives trading

52,2 22,2

Collateral received in bonds

- -

Total received and pledged collateral

(216,4) (1,9)

Protector have CSA agreements with 6 counterparties for the purpose of regulating the security that can be used for the OTC contracts

entered into. The CSA agreements normally have a minimum transfer amount of NOK 2,000,000, whereof all the agreements stipulate that

cash in NOK can be used as security. Government and municipality bonds are also defined as approved security in some of the agreements.

Interest on cash collateral is calculated based on the NOWA rates. Security provided for the derivatives is adjusted daily on the basis of a daily

margin settlement for each contract. Security is received and provided in the form of both cash and securities. Security in the form of cash is

recognised in the balance sheet.

NOTE 12 LEASING 2023 2022

[NOKm]

Right-of use assets

Costs as at 01.01.

163,3 162,8

Additions

- -

Modifications

6,9 -

Currency dierence

9,1 0,5

Costs as at 31.12.

179,3 163,3

Accumulated depreciation at 01.01

(60,1) (30,0)

This year's depreciation

(34,2) (29,8)

Currency dierence

(3,0) (0,3)

Accumulated depreciation at 31.12.

(97,3) (60,1)

Net book value as at 31.12.

82,0 103,2

Protector leases oce space for oce locations. The average lease term is 3 years (2022: 4 years).

The right-of-use asset is recognised in the financial statements as ”Tangible assets”.

[NOKm] 2023 2022

Amounts recognised in profit and loss

Depreciation expense on right-of-use assets

(34,2) (29,8)

Interest expense on lease liabilities

7,1 5,8

For short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets, the group recognises the lease

payments as an operating expense on a straight-line basis over the term of the lease/ describe the systematic basis use if this is more

representative of the time pattern in which economic benefits from the leased assets are consumed.

At 31 December 2023, Protector has no material short-term leases or leases of low value assets.

The total undiscounted cash outﬂow for leases amount to NOK 93.8 million (2022: NOK 125.2 million).

There are no material extension or termination options.

66 2023 PROTECTOR FORSIKRING ANNUAL REPORT 672023 PROTECTOR FORSIKRING ANNUAL REPORT

LEASE LIABILITY

[NOKm] 2023 2022

Lease liabilities

Maturity analysis:

Year 1

38,6 35,9

Year 2

29,9 35,9

Year 3

11,8 27,1

Year 4

7,8 12,6

Year 5

5,2 8,0

Onwards

0,4 5,7

Undiscounted lease liability

93,8 125,2

Discounted lease liability

84,9 103,2

Weighted average interest rate

6,9 % 6,9 %

Protector does not face a significant liquidity risk with regard to its lease liabilities. Lease liabilities are monitored within the treasury function.

The lease liability is recognised in the financial statements as ”Other liabilities”.

NOTE 14 TANGIBLE FIXED ASSETS

[NOKm]

Oce

machinery

Furniture and

fixtures

Art 2023 2022

Costs as at 01.01.

60,5 24,2 0,2 85,0 85,0

Additions

13,9 0,8 - 14,7 8,5

Scrapping

(13,4) - - (13,4) -

Currency dierence

1,1 1,5 - 2,6 0,2

Costs as at 31.12.

62,2 26,5 0,2 88,9 85,0

Accumulated depreciation at 01.01

(40,8) (15,2) - (56,0) (42,3)

This year's depreciation

(10,9) (2,8) - (13,7) (13,7)

Scrapping

13,4 - - 13,4 -

Currency dierence

(0,8) (0,8) - (1,5) (0,1)

Accumulated depreciation at 31.12.

(39,1) (18,7) - (57,8) (56,0)

Net book value as at 31.12.

23,1 7,8 0,2 31,1 29,0

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

NOTE 13 INTANGIBLE ASSETS

[NOKm] 2023 2022

Costs as at 01.01.

225,2 190,8

Additions

28,3 35,3

Scrapping

(0,8) (0,7)

Currency dierence

0,3 (0,2)

Costs as at 31.12.

252,7 225,2

Accumulated depreciation at 01.01

(126,1) (113,3)

This year's depreciation

(18,2) (13,7)

Write-downs

0,0 0,0

Scrapping

0,8 0,7

Currency dierence

(0,3) 0,2

Accumulated depreciation at 31.12.

(143,5) (126,1)

Intangible assets connected to discontinued operations

2,8 3,1

Net book value as at 31.12.

106,3 95,9

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

68 2023 PROTECTOR FORSIKRING ANNUAL REPORT 692023 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 15 TAXES

[NOKm] 2023 2022

This year’s taxes are divided between

Payable tax

412,6 237,2

Changes due to full IFRS reporting

- 174,7

Correction previous years

(12,7) 3,2

Change in deferred tax

42,7 (78,8)

Tax discontinued operations

(3,3) 5,1

Total tax continued operations

439,2 341,4

Computation of this years tax

Profit before tax

1 951,8 1 004,4

Other comprehensive income

106,8 (44,4)

Permanent dierences

(104,0) (260,8)

Changes in temporary dierences

(227,4) 315,3

Changes due to IFRS 17

- 698,7

Basis for the tax expense of the year

1 727,2 1 713,2

Payable tax 25%

431,8 428,3

Payable tax foreign operations

(7,5) (27,5)

Payable tax from previous years

11,7 3,2

Payable tax

436,0 404,0

Temporary dierences 2023 2022 Changes

Fixed assets

12,9 (4,7) (17,5)

Receivables

- (0,1) (0,1)

Gain and loss account

0,9 1,1 0,2

Pension Provisions

(0,7) - 0,7

Financial assets

97,7 (115,7) (213,4)

Insurance contract liability

656,1 714,6 58,4

Lease agreement obligation

(2,7) - 2,7

Net temporary dierences

764,1 595,1 (169,0)

Deferred tax 25 %

191,0 148,8 (42,2)

Deferred tax/ deferred tax assets in the balance sheet

191,0 148,8 (42,2)

RECONCILIATION OF TAX

[NOKm] 2022 2021

Profit before taxes 25%

488,0 251,1

Permanent dierences 25%

(26,0) (65,2)

Corrected tax previous years

(12,0) 3,2

Changes due to full IFRS reporting

- 174,7

Net paid tax for companies abroad

(7,5) (27,5)

Calculated tax

442,5 336,3

Tax discontinued operations

3,3 (5,1)

Total tax continued operations

439,2 341,4

Tax on other comprehensive income

26,7 (11,1)

NOTE 16 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.

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

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

31.12.2023.

[NOKm] 2023 2022

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

4 919,6 3 803,5

Tier 1 - restricted

354,1 348,0

Tier 2

1 580,9 941,5

Total basic own funds

6 854,7 5 093,0

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

Solvency II and statutory value of assets and liabilities plus subordinated debt. 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.

[NOKm] 2023 2022

AVAILABLE OWN FUNDS TO MEET THE SOLVENCY CAPITAL REQUIREMENT SCR

Tier 1 - unrestricted

4 919,6 3 803,5

Tier 1 - restricted

354,1 348,0

Tier 2

1 580,9 941,5

Total available own funds to meet SCR

6 854,7 5 093,0

AVAILABLE OWN FUNDS TO MEET THE MINIMUM CAPITAL REQUIREMENT (MCR)

Tier 1 - unrestricted

4 919,6 3 803,5

Tier 1 - restricted

354,1 348,0

Tier 2

1 580,9 941,5

Total available own funds to meet the MCR

6 854,7 5 093,0

ELIGIBLE OWN FUNDS TO MEET THE SOLVENCY CAPITAL REQUIREMENT (SCR)

Tier 1 - unrestricted

4 919,6 3 803,5

Tier 1 - restricted

354,1 348,0

Tier 2

1 580,9 941,5

Total eligible own funds to meet the SCR

6 854,7 5 093,0

ELIGIBLE OWN FUNDS TO MEET THE MINIMUM CAPITAL REQUIREMENT (MCR)

Tier 1 - unrestricted

4 919,6 3 803,5

Tier 1 - restricted

354,1 348,0

Tier 2

315,7 235,1

Total eligible own funds to meet the MCR

5 589,5 4 386,7

70 2023 PROTECTOR FORSIKRING ANNUAL REPORT 712023 PROTECTOR FORSIKRING ANNUAL REPORT

[NOKm] 2023 2022

SOLVENCY CAPITAL REQUIREMENT SCR

Market risk

1 572,5 1 379,1

Counterparty default risk

136,8 77,4

Life insurance risk

1,0 0,8

Health underwriting risk

684,0 672,3

Non-life underwriting risk

3 192,5 2 070,2

Diversification

(1 489,0) (1 237,1)

Basic Solvency Capital Requirement

4 097,7 2 962,6

Operational risk

327,5 283,7

Loss-absorbing capacity of deferred taxes

(917,3) (633,9)

Total solvency capital requirement

3 507,8 2 612,5

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

the calculated capital requirement.

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

[NOKm] 2023 2022

MINIMUM CAPITAL REQUIREMENT

Linearly calculated MCR

2 002,2 1 206,2

Upper limit for MCR

1 578,5 1 175,6

MCR ﬂoor

877,0 653,1

Combined MCR

1 578,5 1 175,6

Absolute ﬂoor of the MCR

47,5 41,2

Minimum capital requirement

1 578,5 1 175,6

The minimum capital requirement is calculated using the standard formula with a 85% probability that total loss during 12 months will not exceed

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

2023 2022

Ratio of Eligible own funds to SCR

195 % 195 %

Ratio of Eligible own funds to MCR

354 % 373 %

In addition to some dierences in classification of assets and liabilities in the balance sheet and the solvency II balance sheet, there are some

valuation dierences between IFRS 17 and solvency II:

- Reserves are discounted in both, however some dierences remain due to use of dierent discounting rates.

- Liabilities for remaining coverage are discounted in solvency II, not under IFRS 17.

- Expected profit in future premiums is part of liabilities under IFRS 17 and part of equity in solvency II.

- Risk adjustment in IFRS 17 is calculated using dierent principles and methods than in calculating the risk margin in solvency II.

- Intangible assets are valued at nil in solvency II.

- The guarantee scheme is classified as a liability under solvency II, while it is considered as equity according to accounting principles.

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

- Foreseen dividend is subtracted from the solvency II fund

- Subordinated debt is valued at market value and included in the solvency II capital

[NOKm] 2023 2022

Total equity

4 528,6 3 761,5

Revision of net technical provisions

1 003,6 967,0

Dierence between risk adjustment and risk margin

102,4 (20,0)

Intangible assets

(109,2) (99,0)

Other assets and liabilities

(150,2) (266,8)

Dividend

(412,2) (494,3)

Subordinated debt

1 891,7 1 244,7

Total

6 854,7 5 093,0

NOTE 17 SHARE CAPITAL AND SHAREHOLDER INFORMATION

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

Ordinary shares (each share has one vote)

82 500 000 1 82 500 000

Protector Forsikring ASA had 3,571 shareholders at 31.12.2023

List of the 20 major shareholders at 31.12.2023 No.of shares

Ownership share

in percent

Awc AS

14 988 856 18,2 %

Stenshagen Invest AS

7 526 353 9,1 %

Citibank (Switzerland) AG

4 456 162 5,4 %

Verdipapirfondet Alfred Berg Gamba

3 336 334 4,0 %

Verdipapirfond Odin Norden

3 156 885 3,8 %

Lombard Int Assurance S.A.

1 800 000 2,2 %

MP Pensjon PK

1 779 633 2,2 %

State Street Bank And Trust Comp

1 746 785 2,1 %

JPMorgan Chase Bank, N.A., London

1 462 161 1,8 %

Vevlen Gård AS

1 400 000 1,7 %

AAT Invest AS

1 320 000 1,6 %

Utmost Paneurope DAC – GP11940006

1 304 000 1,6 %

Pershing LLC

1 241 846 1,5 %

Avanza Bank AB

1 039 712 1,3 %

Clearstream Banking S.A.

1 017 528 1,2 %

Johan Vinje AS

937 841 1,1 %

State Street Bank and Trust Comp

937 291 1,1 %

Verdipapirfondet Alfred Berg Aktiv

899 750 1,1 %

Nordnet Bank AB

857 570 1,0 %

Reeco AS

799 978 1,0 %

Total

52 008 685 63,0 %

Protector Forsikring ASA

59 554 0,1 %

Other shareholders

30 431 761 36,9 %

Total number of shares

82 500 000 100,0 %

72 2023 PROTECTOR FORSIKRING ANNUAL REPORT 732023 PROTECTOR FORSIKRING ANNUAL REPORT

SHARES OWNED BY SENIOR EXECUTIVES AND THE BOARD

31.12.2023 Identification No.of shares

Ownership share

in percent

Reeco AS Deputy Chairman, Arve Ree

799 978 1,0 %

Alsøy Invest AS Chairman of the Board, Jostein Sørvoll

502 751 0,6 %

Ditlev de Vibe Vanay Chief Financial Ocer

281 556 0,3 %

Hans Didring Deputy CEO

278 044 0,3 %

Henrik Golfetto Høye CEO

267 520 0,3 %

Steel City AS Board member, Kjetil Andreas Garstad

206 706 0,3 %

Leonard Bijl IT Director

28 909 0,0 %

Dag Marius Nereng Chief Investment Ocer

20 804 0,0 %

Christoer Skyrud Deputy employees' representative

14 503 0,0 %

Cathrine Wessel Poulsen Director Norway and deputy employees' representative

10 872 0,0 %

Kjetil Andreas Garstad Board member

9 684 0,0 %

Stuart Winter Country Manager UK

8 326 0,0 %

Fredrik Landelius Country Manager Sverige

7 816 0,0 %

Anders Blom Monberg Country Manager Denmark

3 778 0,0 %

Tonje Svartberg Giertsen Employees' representative

3 452 0,0 %

Lars Kristiansen Country Manager Norway

2 780 0,0 %

Jostein Sørvoll Chairman of the Board

1 250 0,0 %

Mathews Ambalathil Employees' representative

500 0,0 %

Total

2 449 229 3,0 %

NOTE 18 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 shares throughout the year, net of treasury shares. There are not any dilutive eects.

2023 2022

Profit for the year assigned to the company's shareholders NOKm

1 509,3 1 379,0

Weighted average number of shares

82 411 610 82 381 573

Earnings per share (basic and diluted)

18,3 16,7

Profit for the year assigned to the company's shareholders NOKm

1 494,3 1 369,3

Weighted average number of shares

82 411 610 82 381 573

Earnings per share (basic and diluted) continued operations

18,1 16,6

NOTE 19 SUBORDINATED DEBT

Subordinated debt NOK 500m 2022

Name Protector Forsikring ASA 20/50 FRN STEP C SUB

Ticker PROTCT05

ISIN NO0010914443

Nominal value MNOK 500

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

Issue date 16.12.2020

Due date 16.12.2050

Callable Yes

Subordinated debt NOK 350m

Name Protector Forsikring ASA 21/PERP FRN C HYBRID

Ticker PROTCT06

ISIN NO0011170045

Nominal value MNOK 350

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

Issue date 14.12.2021

Due date Perpetual

Callable Yes

Subordinated debt NOK 400m

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 21.02.2022

Due date 21.02.2052

Callable Yes

Subordinated debt NOK 650m

Name Protector Forsikring ASA 23/54 FRN C SUB

Ticker

ISIN NO0013091876

Nominal value MNOK 650

Interest rate 3-month NIBOR + 400 bp p.a.

Issue date 07.12.2023

Due date 07.03.2054

Callable Yes

74 2023 PROTECTOR FORSIKRING ANNUAL REPORT 752023 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 22 PENSIONS

Protector Forsikring is obliged to have an occupational pension scheme in accordance with the Norwegian 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.

In Norway, the contribution pension premium is 7% of salary between 0 and 7.1G (G=basic amount in national insurance), 25.1% between 7.1 and

12G and 15% of salary from 12G up to 16G. In Sweden, the rates are 5.5% of salary up to 7.5 income base (IB) amount (SEK 74,300 in 2023) and

31.3% of salary beyond this up to 27 IB. In Denmark, the rate is between 10% and 15% of salary, in Finland 17.65% of salary and in the UK between

4% and 15% of salary.

The total pension cost amounts to NOK 39.1 million in 2023 (NOK 28.6 million in 2022).

NOTE 20 LABOUR EXPENSES, PENSIONS, NUMBER OF EMPLOYEES

[NOKm] 2023 2022

Salaries

427,7 342,9

Bonuses

96,8 51,9

Fees to the Board of Directorsand the Nomination Committee

3,6 3,2

Defined contribution pension costs

39,1 28,6

Social security tax

109,1 82,3

Other payments

53,0 35,4

Total

730,1 544,2

Refer to note 22 for further information.

Number of employees

Number of employees at 31.12.

526,0 436,0

Number of man-labour years at 31.12.

523,4 424,3

Average number of employees at 31.12.

488,0 426,9

Average number of man-labour years at 31.12.

483,9 414,4

NOTE 21 REMUNERATIONS TO SENIOR EXECUTIVES AND THE BOARD

The remuneration to Senior Executives is disclosed in the table below. The 2023 Remuneration Report for Executive Personnel is published

on the company´s website www.protectorforsikring.no.

[1.000 NOK] 2023 2022

Senior executives

Salaries

37 834 28 936

Variable pay

28 444 19 608

Other remunerations

296 432

Paid-up pension premium

2 519 2 036

Total remunerations

69 094 51 012

Other remunerations comprises telephone, insurance and other contractual benefits.

Paid out bonuses according to long term bonus scheme.

NOTE 24 OTHER LIABILITIES

[NOKm] 2023 2022

Payables, operations

76,4 45,2

Payables, claims

78,4 62,3

Liabilities in connection to direct insurance

154,8 107,5

Allocation of employers contribution

16,2 12,1

Advance tax deduction

15,8 11,9

Lease liabilities

84,9 103,2

Other liabilities

392,7 245,2

Other liabilities

509,5 372,4

Total other liabilities

664,4 480,0

The company has no secured liabilities.

NOTE 23 RECEIVABLES

[NOKm] 2023 2022

Receivable tax

1,0 0,2

External claims handlers

39,6 21,4

Other receivables

11,5 6,1

Total

52,2 27,6

NOTE 25 ACCRUED EXPENSES AND DEFERRED INCOME

[NOKm] 2023 2022

Bonuses

270,5 216,9

Accrued vacation pay

37,7 33,1

RTV tax

61,4 78,8

Other accrued expenses

9,3 6,4

Total

378,8 335,2

76 2023 PROTECTOR FORSIKRING ANNUAL REPORT 772023 PROTECTOR FORSIKRING ANNUAL REPORT

NOTE 26 CONTINGENT LIABILITIES

Protector has no contingent liabilities at 31.12.2023

NOTE 27 DISCONTINUED OPERATIONS

Protector decided in 2018 to exit the change of ownership insurance (COI) market. 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 discontin-

ued operations.

Protector has entered into a 50% quota share agreement (reinsurance) covering all historical business written until 1 July 2020. At January 1st,

2022, when the new Norwegian Real Property Sale Act entered into force, Protector stopped writing new COI business.

INCOME STATEMENT

[NOKm] 2023 2022

Insurance revenue

0,1 2,6

Insurance claims expenses

(10,3) (25,4)

Insurance operating expenses

- (1,6)

Insurance service result before reinsurance contracts held

(10,2) (24,4)

Reinsurance premium

0,0 (0,2)

Amounts recovered from reinsurance

(9,3) 9,1

Net result from reinsurance contracts held

(9,2) 8,9

Insurance service result

(19,5) (15,6)

Result from investments in associates and joint venture

- 1,1

Interest income and dividend etc. from financial assets

21,7 22,6

Net changes in fair value of investments

(0,2) (6,1)

Net realised gain and loss on investments

24,2 7,7

Interest expenses and expenses related to investments

(2,1) (1,7)

Net income from investments

43,6 23,6

Insurance finance income or expenses

(6,9) 5,5

Reinsurance finance income or expenses

1,2 (1,7)

Net insurance finance income or expenses

(5,8) 3,8

Other income/expenses

- (3,2)

Profit/(loss) before tax

18,4 8,7

Tax

(3,3) 1,0

Profit/(loss) from discontinued operations

15,1 9,7

Earnings per share (basic and diluted)

0,2 0,1

ASSETS

2023 2022

Total financial assets in investment portfolio

600,1 705,0

Total operational financial assets

- 0,5

Total non-financial assets

54,4 85,2

Assets discontinued operations

654,5 790,7

LIABILITIES

2023 2022

Liabilities for remaining coverage (LRC)

Liabilities for incurred claims (LIC)

246,9 389,6

Liabilities for incurred claims risk adjustment (RA)

11,3 35,5

Insurance contract liabilities

258,3 425,1

Liabilities discontinued operations

258,3 425,1

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT78 79

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 2023.

We confirm, to the best of our knowledge, that the financial statements for the period 1

of January to 31

of December 2023

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 as a whole.

We also confirm that the Board of 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, 6 March 2024

The Board of Directors of Protector Forsikring ASA

All signatures electronically signed

Jostein Sørvoll

Chairman

Arve Ree

Deputy chairman

Else Bugge Fougner Kjetil Garstad

Mathews Ambalathil Randi Helene Røed Tonje Giertsen Henrik Golfetto Høye

CEO

Statsautoriserte revisorer

Ernst & Young AS

Stortorvet 7

, 0155 Oslo

Postboks 1156 Sentrum,

0107 Oslo

Foretaksregisteret: NO 976 389 387 MVA

Tlf: +47 24 00 24 00

www.ey.no

Medlemmer av Den norske

Revisorforening

A member firm of Ernst & Young Global Limited

INDEPENDENT AUDITOR'S REPORT

To the Annual Shareholders' Meeting of Protector Forsikring ASA

Report on the audit of the financial statements

Opinion

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

balance sheet as at 31 December 2023, the income statement, statement of comprehensive income,

statement of cash flows and statement of changes in equity for the year then ended, and notes to the

financial statements, including material accounting policy information.

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 2023 and its financial performance and

cash flows for the year then ended in accordance with IFRS Accounting Standards as adopted by the EU.

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 7 years from the election by the general meeting of the

shareholders on 20 April 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 2023. 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.

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT80 81

Independent auditor's report - Protector Forsikring ASA 2023

A member firm of Ernst & Young Global Limited

Insurance contract liabilities

Basis for the key audit matter

As at 31 December 2023, insurance contract

liabilities of MNOK 12 559,2 were recognised in

the accounts for continuing operations, and

MNOK 258,3 for discontinued operations. The

balance comprises liabilities for remaining

coverage, liabilities for incurred claims and risk

adjustment. Liabilities for incurred claims is

measured as the present value of estimated

future payments of reported claims and incurred,

not reported claims. The risk adjustment reflects

a security margin for uncertainty in the expected

cash flows to fulfill the insurance contracts. The

use of model, the assumptions used in the

projection of claims history and determination of

risk adjustment require management to exercise

significant judgement. Insurance contract

liabilities are material amounts and are sensitive

for changes in methods and assumptions and are

therefore considered a key audit matter.

Our audit response

We reviewed the Company’s processes and

methods for calculating insurance contract

liabilities across the different insurance products.

For liabilities for remaining coverage we

assessed the design and tested the operating

effectiveness of internal controls over the

Company’s premium accrual process. We tested

a sample of insurance contracts to verify the

correct recognition.

For liabilities for incurred claims and risk

adjustment we assessed the design and tested

the operating effectiveness of internal controls

over the reported claims process. We tested a

sample of reported claims to assess the

measurement. For liabilities for incurred claims

not reported, we obtained the Company’s

actuarial function’s report and assessed the

results of the controls and measurements. To

challenge management’s data, method, models

and assumptions used to estimate the liabilities

for incurred claims, we used our own internal

actuaries. Our procedures 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, we performed our own

calculations of the liabilities for incurred claims

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 insurance

contract liabilities, and the balances are specified

in notes 3, 7 and 8.

Independent auditor's report - Protector Forsikring ASA 2023

A member firm of Ernst & Young Global Limited

Reinsurance contract assets

Basis for the key audit matter

The reinsurance contract assets as at 31

December 2023 constitutes MNOK 1 093,3 for

continuing 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 insurance contract

liabilities, this was considered a key audit matter.

Our audit response

We have obtained an understanding of the

Company’s reinsurance contracts, and we

assessed the Company’s applied accounting

principles related to various types of reinsurance

contracts. We identified and assessed the design

of internal controls related to the accounting and

measurement of reinsurance contract assets. For

a sample of contracts, we assessed the

recognition of the reinsurance share of insurance

contract liabilities by considering incurred claims

and compared them with the terms in the

reinsurance agreements.

Notes 1 and 2 have details on principles and

estimation uncertainty concerning reinsurance

contract assets, and the balances are specified in

note 7.

Valuation of financial assets measured at fair value

Basis for the key audit matter

As at 31 December 2023, financial assets

measured at fair value constitute MNOK 18 876,9

for continuing operations, of which MNOK

17 846,8 are unlisted or considered less liquid.

Financial 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 assets are material for the

financial statements and because of the degree

of judgment involved, this was considered a key

audit matter.

Our audit response

We assessed the design and tested the

operating effectiveness of internal controls

related to the valuation process. 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.

Note 10 includes information on financial assets

measured at fair value.

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 CEO) is

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

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

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

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

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

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

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

work we have performed, we conclude that 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, the statement

on corporate governance or the statement on corporate social responsibility, we are required to report

that fact.

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT82 83

Independent auditor's report - Protector Forsikring ASA 2023

A member firm of Ernst & Young Global Limited

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 of the financial statements that give a true and fair view in

accordance with IFRS Accounting Standards as adopted by the EU, 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.

• 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.

Independent auditor's report - Protector Forsikring ASA 2023

A member firm of Ernst & Young Global Limited

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, 6 March 2023

ERNST & YOUNG AS

The auditor's report is signed electronically

Finn Espen Sellæg

State Authorised Public Accountant (Norway)

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT84 85

CORPORATE

GOVERNANCE

The company’s principles for corporate governance shall

contribute to the highest possible value creation for the

shareholders over time, increasing 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.

1. STATEMENT OF CORPORATE GOVERNANCE

The statement is submitted in accordance with section 3-3b

of the Norwegian 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.

2. BUSINESS

Per its articles of association, Protector’s objective is to

operate direct general insurance and reinsurance within all

classes except classes 14 credit insurance and 15 guarantee

insurance. The articles of association are available at

www.protectorforsikring.no.

The company’s general insurance business includes Norway,

Sweden, Denmark, Finland and the United Kingdom. Its

main market segments are the corporate market, the public

sector, and the market for grouped insurance schemes. The

insurances are sold through selected insurance brokers and

agents.

The board of directors (“board”) sets goals, strategies, and

risk profiles in connection with the company’s annual budget

and strategy process. Evaluation of goals, strategies and risk

profiles are carried out in connection with the management’s

and the board’s strategy work in the spring 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 operations.

The board has prepared ethical guidelines, a sustainability

policy, and a policy for responsible investments in accordance

with the company’s values and its goal of sustainable value

creation. This is described in more detail in the statement on

corporate sustainability.

3. SOLVENCY CAPITAL AND DIVIDENDS

The company has continuous focus on ensuring that the

solvency capital matches Protector’s objectives, strategy,

and risk profile. The company will at all times seek to optimise

its capital while at the same time maintain sucient capital

to satisfy the regulatory capital requirements, shareholders’

confidence and ﬂexibility for growth and development.

The company’s goal is to maintain a solvency margin above

150%, calculated according to Solvency II regulations.

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

intention to distribute 20-80% of the profit for the year as

dividends. Actual distribution will be based on the company’s

result, capital requirements including satisfactory buers

and the necessary ﬂexibility for growth and development in

the company. Distribution of dividends will be assessed at a

solvency margin of over 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 share buybacks.

The board prepares quarterly dividend assessments on the

basis of the most recently approved annual accounts.

The board is authorised to decide on the distribution of

dividends. Such authorisation is conditional on the company

having a dividend capacity per the most recently approved

annual accounts. An authorisation for the board to distribute

dividends will give the company ﬂexibility and mean that the

company, based on dividend capacity per 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 authorisation

and the Norwegian Public Limited Liability Companies Act,

the board decides whether the authorisation is to be used,

whether it is to be used one or more times, the size of the

individual dividend, etc. The authorisation is valid until the

Annual General Meeting (AGM) in 2024, or no later than

30 June 2024. The board will propose to the AGM that the

authorisation is renewed.

The board is authorised to repurchase up to 10% of the

total number of shares in Protector Forsikring ASA. The

authorisation is valid until the next AGM in 2024, or no later

than 30 June 2024. The board will propose to AGM that the

authorisation is renewed. At the end of 2023, the company

had 59,554 own shares.

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT86 87

The board is authorised 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 authorisation

may be used for one or more share issues. The board may

decide to deviate from the pre-emptive right of shareholders

to subscribe for shares pursuant to section 10-4 of the

Norwegian Public Limited Liability Companies Act. The board

of directors may decide that payment for the shares shall be

eected in assets other than cash, including by way of set-

o or the right to subject the company to special obligations

pursuant to section 10-2 of the Norwegian Public Limited

Liability Companies Act. The authorisation also applies to

decisions to merge pursuant to section 13-5 of the Norwegian

Public Limited Liability Companies Act. This authorisation is

valid until the AGM in 2024, or no later than 30 June 2024.

The board will propose to the AGM that the authorisation is

renewed.

The board is authorised to raise subordinated loans and other

debt limited to NOK 2,500 million and under the conditions

stipulated by the board. The authorisation is valid until the

AGM 2024, or no later than 30 June 2024. The board will

propose to the AGM that the authorisation is renewed.

According to the Norwegian Code of Corporate Governance,

the authorisations should be limited to defined purposes.

The reason this has not been done is that the board desires a

mandate that provides the greatest possible ﬂexibility.

4. EQUAL TREATMENT OF SHAREHOLDERS

The company has only one class of shares and all shareholders

are treated equally.

Existing shareholders have pre-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 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.

5. FREELY NEGOTIABLE SHARES

Shares in Protector Forsikring ASA are listed on Oslo Stock

Exchange. The Articles of Association do not contain any

restrictions with regard to the negotiability of the shares. All

the shares carry equal rights, cf. point 4 above.

6. 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 mail,

sent out no later than 21 days before the AGM. Protector

will send a written notice to the nominee holder in cases

where shareholders are registered under a nominee account.

According to the articles of association, notification of

attendance must be received by the company no later

than two business days before the general meeting, unless

the board sets a later deadline for the notification prior to

sending the notice.

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 of the meeting and its materials are published

on the company’s website no later than 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 including voting instructions

on each individual candidate nominated for election.

The annual general meeting shall deal with and decide on the

following matters:

• Adoption of the annual accounts and the annual report,

including distribution of dividends.

• Other matters which by virtue of law or the articles of

association pertain to the general meeting.

The chairperson of the board and the CEO shall be present at

the meeting. The external auditor shall be present if deemed

necessary due to the nature of the matters being processed.

The chairperson of the nomination committee shall be

present when election and remuneration of board members

are to be considered. The general meeting is opened by the

chair. The board endorses an independent meeting chair

elected by the general meeting.

The minutes of the general meetings are available on

Protector’s website in both Norwegian and English.

7. 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 for two years unless the general meeting

decides upon a shorter period. The nomination committee

is independent of the company’s board and management,

and its composition aims to ensure broad representation of

shareholder interests.

The nomination committee shall make recommendations to

the general meeting on the following matters:

• Appointment of the chairperson and the deputy

chairperson, shareholder-elected members, and deputies

to the board of directors.

• Remuneration of the members of the board of directors.

• Appointment of chairperson and members of the

nomination committee as well as deputy members where

required.

• Remuneration of the members of the nomination

committee.

The committee must give reasons for their recommendations.

The committee shall operate in accordance with the

Norwegian Code of Practice for Corporate Governance.

The general meeting can set out further directives for the

work of the nomination committee.

8. THE BOARD OF DIRECTORS

According to the articles of association, the company’s board

shall consist of 5 to 9 members, as further decided by the

general meeting. The board’s gender representation must

comply with section 6-11 of the Norwegian Public Limited

Liability Companies Act.

Shareholder-elected board members are elected for two

years at a time, unless the general meeting decides upon

a shorter period. The chairperson of the board and deputy

chairperson 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 eectively as a collegiate

body. Moreover, the 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 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 annual report. Moreover,

note 17 to the annual accounts states how many shares the

individual shareholder owns in the company. Members of the

board are encouraged to own shares in the company.

The nomination committee’s proposals for board members

will be based on the above-mentioned guidelines.

In the company’s opinion the current board 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.

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT88 89

9. THE WORK OF THE BOARD OF DIRECTORS

The duties of the board

The board is accountable for the management and

organisation of the company and for supervising its day-

to-day management and activities in general. In addition

to the mandatory requirements, the board 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.

If the chairman of the board cannot or should not chair

the meeting, the meeting is chaired by the deputy chair.

In accordance with its instructions, the board shall, to the

extent it is necessary, adopt strategies, business plans

and budgets for the company. The board also ensures that

the company has a good management with a clear internal

allocation of responsibilities and duties. In this context, a set

of instructions has been prepared for the CEO.

The company adopts a prudent approach towards transactions

involving shareholders, board members, senior executives,

and their close associates. To avoid damaging the company’s

reputation, the board is of the opinion that it is essential to be

open and cautious about transactions that could be perceived

as doubtful in terms of the closeness between the parties.

The members of the board and management shall therefore

give the board by the chairman written notification if they

have significantly direct or indirect interests in transactions

undertaken by the company. In the case of not insignificant

transactions, the board shall ensure that there is a valuation

from an independent third party.

The conclusion of all agreements with related parties shall be

handled by the board. The board shall ensure that agreements

with related parties is balanced and without a conﬂict of

interest with the company.

A member of the board may not participate in the discussion

or decision of any matter which is of such particular

importance to him- or herself or any related party that he

or she must be deemed to have a special and prominent

personal or financial interest in the matter, cf. the Norwegian

Public Limited Liability Companies Act § 6-27 This provision

is similarly applicable to the CEO.

Each year, the board adopts a concrete meeting and work

plan for the following year. The plan covers both strategy

work, other relevant business issues and control work.

The board conducts an annual evaluation of its activities and,

on this basis, discusses improvements in the organization and

the execution of the board work. The report from the board’s

evaluation is made available to the nomination committee.

In 2023, 8 board meetings were held. One board member

was absent from one meeting, and another from two other

meetings. Apart from that, all board members participated in

all board meetings.

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. In 2023, the

remuneration committee held 3 meetings.

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. In

2023, the audit committee held 8 meetings.

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. In 2023, the risk committee held 8 meetings.

10. RISK MANAGEMENT AND INTERNAL CONTROL

The board has overall responsibility for ensuring that the

company has established appropriate and eective processes

for risk management and internal control. The board shall

ensure that the 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 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 committees support 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 managed in

accordance with the board’s guidelines and ensures that

managers for all significant areas of business continuously

monitor the implementation of the internal control.

All managers are responsible for ensuring that risk

management and internal control within their own area of

responsibility are satisfactory. This implies that managers will:

• At all times have an overview of significant risk factors

within their own area of responsibility.

• 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 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 accounting 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 Norwegian 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.

11. REMUNERATION OF THE BOARD OF DIRECTORS

The annual general meeting determines the fees paid to the

board 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 board has no options or other performance-based

remuneration. Members of the board and board committees

receive a fixed annual fee and a fee per meeting in the board

committees. Details of the amounts paid to the individual

board members are provided in the remuneration 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 remuneration

report. The company does not give loans to members of the

board.

12. REMUNERATION OF EXECUTIVE PERSONNEL

The board has established guidelines on the determination

of salaries and other remuneration to senior executives.

The guidelines (“The board’s guidelines for determination of

salary and other remuneration to employees”) 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 is subject to an

absolute limit. Awarded individual bonus can amount up to

100% of fixed salary in the earning year including holiday pay.

The board prepares an annual remuneration report with any

deviation reporting in relation to the adopted guidelines. Said

guidelines and remuneration report are available at

www.protectorforsikring.no.

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT90 91

The board determines the remuneration for the CEO, with

the remuneration committee contributing as an advisory

body in the decision process. Terms and remuneration for

other senior executives are determined by the CEO within

the framework approved by the board. Senior management

is encouraged to own shares in the company.

13. INFORMATION AND COMMUNICATIONS

For the communication of financial and other price sensitive

information, the board has based its policy (“Policy for

Financial Information and Investor Relations”) 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, and requirements for equal treatment of the

participants in the securities market, cf. the Norwegian

Securities Trading Act § 5-14 and the Norwegian Public

Limited Liability Companies Act §§ 4-1 and 6-28.

Annual and quarterly reports are made available via the Oslo

Stock Exchange’s reporting system and on the company’s

website. The company also aims to provide publicly accessible

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.

Only publicly available information is presented to individual

shareholders or other interested parties. Said policy is

available at www.protectorforsikring.no.

14. TAKEOVERS

In the event of a take-over bid for the company, the board

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, to undertake the best possible

assessment of such an event. The board will thereafter give

the individual shareholders the best possible advice with

underlying information that ensures that each individual

shareholder is able to take a position on an eventual bid. The

board’s statement on the oer shall make it clear whether

the views expressed are unanimous, and if this is not the case

it shall explain the basis on which specific members of the

board have excluded themselves from the board’s statement.

The board shall arrange a valuation from an independent

expert. The valuation shall include an explanation and shall be

made public no later than at the time of the public disclosure

of the board’s statement.

The board will not seek to hinder or obstruct takeover bids for

the company’s activities or shares unless there are particular

reasons for this.

Any transaction that is in eect a disposal of the company’s

activities shall be decided by a general meeting.

The company has no clauses that can exclude it from the

restrictions under the Norwegian Securities Trading Act

§ 6-17 concerning “Restriction of the oeree company’s

freedom of action” in a take-over process. Nor has the general

meeting given the board or CEO any special authority for use

in such situations.

15. AUDITOR

The auditor is elected by the general meeting.

The auditor shall submit the main features of the plan for

the audit of the company to the board’s audit committee

annually.

The auditor shall take part in meetings with the board 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 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.

CORPORATE SUSTAINABILITY

STRATEGY AND OVERALL STATUS

Protector asserts that if an insurance company excels in its

core business, it contributes to sustainability. Consequently,

and based on the company’s materiality analysis, Protector’s

sustainability strategy supports its core business and consists

of the following four pillars:

• People

• Climate resilience

• Climate-eective solutions

• Responsible business behaviour

In short, this means that the company strives for a good

working life throughout its value chain, that it considers

climate risk in its risk assessment and product development,

reduces its carbon footprint through loss prevention and

competent claims settlement, and takes responsibility in the

fight against corruption, money laundering, and through its

investments.

The company is a signatory of UN’s Principles for Sustainable

Insurance, and its approach to sustainability is aligned with

those principles. Protector reports on its climate footprint in

accordance with the GHG protocol and uses this to further

optimise its sustainability eorts.

In 2023, the company has increased its eorts for

sustainability, making progress in all focus areas. Protector’s

emissions in CO2 equivalents for 2023 was 12.95 tonnes per

million GWP. This is a reduction from 13.68 tonnes per million

GWP for 2022.

See appendix for more details on Protector’s climate

accounting.

1 821

65 082

30 223

2 116

92 781

40 124

SCOPE 1, 2, 3 FOR OWN

OPERATIONS

SCOPE 3 FOR CLAIMS

HANDLING

SCOPE 3 FOR INVESTMENTS

TONNES CO2 EQUIVALENTS

OVERALL CLIMATE ACCOUNT 2022 & 2023

2022

2023

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT92 93

The company uses the GRI standard as a framework for

planning, structuring, and presenting its work on sustainability.

The company’s sustainability strategy is mainly based on the

following six UN sustainability goals:

In 2024, the company will increase the momentum of its sustainability eorts.

The remainder of this chapter describes how Protector works with the four pillars. It is split into four main sections, one for each

pillar. Each section starts with a figure detailing our strategy for that area.

GRI references

Topic Description Indicator Section

Climate accounting

Scope 1 Direct (Scope 1) GHG emissions GRI 305-1 Appendix A - GHG Inventory Report

Scope 2 Energy indirect (Scope 2) GHG emissions GRI 305-2 Appendix A - GHG Inventory Report

Scope 3 Other indirect (Scope 3) GHG emissions GRI 305-3 Appendix A - GHG Inventory Report

GHG intensity GHG emission intensity GRI 305-4 Strategy and overall status

People People

An engaging place to work - training and education Programs for upgrading employee skills and transition assistance programs GRI 404-2 People

An engaging place to work - training and education Percentage of employees receiving regular performance and career development reviews GRI 404-3 People

An engaging place to work - employment New employees hires and employee turnover GRI 401-1 People

An engaging place to work - employee satisfaction Results from employee satisfaction survey Customized People

Equity and diversity - diversity of governance body and

employees

Diversity of governance bodies and employees GRI 405-1 People

Equity and diversity - diversity of governance body and

employees

Ratio of basic salary and remuneration of women to men GRI 405-2 People

Equity and diversity - actual status for gender equality KPIs in accordance with the Norwegian activity duty legislation ARP People

Human and labour rights at our suppliers Employee training on human rights policies or procedures GRI 412-2 People

Climate ecient solutions

Loss prevention - policies designed to incentivize

responsible behaviour

Discussion of products and/or product features that incentivize health, safety, and/or

environmentally responsible actions and/or behaviours

FN-IN-410b.2 Climate ecient solutions

Loss prevention - inspections, deviations and measures

Number of inspections of public sector customers, number and type of deviations and

following measures to close deviations per country or region.

Customised Climate ecient solutions

Reduced climate footprint in claims settlement -

circularity of motor

Share of used parts and repair rate of damaged glass Customised Climate ecient solutions

Climate Resilience

Routines and processes for managing climate risk -

climate risk exposure

Discussion and qualitative analysis of climate related risk exposure FN-IN-410b.2 Climate resilience

Routines and processes for managing climate risk -

climate risk exposure

Probable Maximum Loss (PML) of insured products from weather-related natural

catastrophes

FN-IN-450a.1 Climate resilience

Routines and processes for managing climate risk -

climate risk exposure

Description of approach to incorporation of environmental risks into (1) the underwriting

process for individual contracts and (2) the management of firm-level risks and capital

adequacy

FN-IN-450a.3 Climate resilience

Routines and processes for managing climate risk -

climate risk exposure

Financial implications and other risks and opportunities due to climate change GRI 201-2 Climate resilience

Climate resilience in product development and pricing -

climate mitigation and adaptation

Description of activities that are taxonomy-eligible and taxonomy-aligned EU Taxonomy Climate resilience

Responsible Business Behaviour

Responsible business behaviour in our own operations -

anti-corruption assessment

Operations assessed for risk related to corruption GRI 205-1 Responsible business behaviour

Responsible business behaviour in our own operations -

anti-corruption training

Communication and training about anti-corruption policies and procedures GRI 205-2 Responsible business behaviour

Responsible business behaviour in our external

relationships - supplier assessment

New suppliers that were screened using social criteria GRI 414-1 Responsible business behaviour

Responsible business behaviour in our external

relationships - supplier assessment

New suppliers that were screened using environmental criteria GRI 308-1 Responsible business behaviour

Responsible investments - incorporation of ESG factors

in investment management

Description of approach to incorporation of environmental, social, and governance

factors in investment management processes and strategies

FN-IN-410a.2 Responsible business behaviour

Responsible investments - portfolio GHG emissions

intensity

Scope 1 and 2 emissions of the objects that Protector invest in, divided by each

object’sMUSD revenue, allocated by ownership

GRI 305-4 Responsible business behaviour

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT94 95

At the end of 2023, the company had 526 permanent

employees. Of these, 167 are employed in Norway, 130 are

employed in Sweden, 55 are employed in Denmark, 150 are

employed in the UK and 24 are employed in Finland.

Absence due to illness in Protector in 2023 was 2.4%,

compared to 2.8%, 2.9%, and 1.9% in 2022, 2021 and 2020.

There have been no occupational accidents or occupational

injuries during 2023.

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-based organisation that regards its

employees as its most important asset. The company oers

an environment conducive to professional growth.

The company implements a structured approach to employee

development, categorised as experiential learning, social

learning, and formal learning. To steer this development,

quarterly Status and Planning and annual 270/360 reviews

are conducted for each employee.

• Experiential learning: Employees are strategically

assigned tasks that align with their skill sets to facilitate

growth through day-to-day responsibilities.

• Social learning: Within most of the company’s

professional communities, weekly sessions are organized

for sharing experiences and discussing challenging

issues. This encourages a culture of continuous learning

and feedback.

• Formal learning: Our digital learning portal, “Knowledge

Hub,” oers hundreds of in-house courses on Protector

practice. Additional external courses oer certification

and professional development.

Moreover, Protector has three distinct leadership

development programs and a cross-border onboarding

program. These programs reinforce the company’s values,

social learning, and encourage knowledge-sharing across

dierent business areas.

Protector has a work environment committee that focuses

on a positive working environment in the company. In 2023,

the company has implemented a new reporting system

that makes it easier for employees to anonymously report

any objectionable conditions. Furthermore, the personnel

handbook is continuously revised to better document the

employees’ rights and duties.

As an indicator of whether Protector is 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 where each employee is asked to give an

assessment on a scale from 1 to 10. Protector’s target is an

average evaluation of 8, which is expressed as a score of 80.

We commit to people

value and employee

engagement in our

organisation

We focus on creating an engaging place to work

We want to be an engaging workplace the gets the best out of our employees. Protector is a work environment

with focus on learning and development. The goal is to recruit, develop and retain the right people.

We focus on gender equality and an inclusive working life

We will ensure equality and an inclusive working life. This supports our goal of recruiting, developing, and

retaining the right people. We are open about our work for gender equality, including reporting on the wage gap,

gender distribution in different job categories and more.

We focus on human and employee rights at our suppliers

We will secure human and employee rights in our supply chain, and account for these.

NORWAY SWEDEN DENMARK UK FINLAND

NEW HIRES 2023

Wo me n Men

18,1 %

19,5 %

22,8 %

39,0 %

6,3 %

0,0 %

17,2 %

8,3 %

24,5 %

39,6 %

13,3 %

12,7 %

17,6 %

12,9 %

23,7 %

39,3 %

10,6 %

4,3 %

PROTECTOR NORWAY SWEDEN DENMARK UK FINLAND

TURNOVER 2023

Wo me n Men Total

H 2 2 02 0 H 1 2 02 1 H 2 2 02 1 H 1 2 02 2 H 2 2 02 2 H 1 2 02 3 H 2 2 02 3

Employee satisfaction

The company sees, for the period it has comparable data, a

positive development. The score in spring and autumn 2023

was 76.4 and 75.9 respectively. The overall score is at a good

level, but there is still potential for improvement in some

departments.

Turnover

Country 

2022 2023

Woman Men Total Woman Men Total

Protector Insurance

27.4% 16.1% 20.85% 18.1% 16.9% 17.41%

Norway

32.7% 13.3% 21.08% 19.5% 7.3% 12.29%

Sweden

27.9% 25.7% 26.68% 22.8% 24.5% 23.75%

Denmark

27.8% 34.0% 31.51% 39.0% 39.6% 39.33%

22.9% 5.3% 12.04% 6.3% 13.3% 10.59%

Finland

14.9% 0.0% 9.81% 0.0% 12.7% 4.34%

EQUALITY AND DIVERSITY

All employees shall experience job satisfaction, commitment,

and security, and should be entitled to the same rights, duties,

and opportunities, irrespective of gender, pregnancy, leave in

connection with childbirth or adoption, care responsibilities,

ethnicity, religion, belief, disability, sexual orientation,

gender identity, gender expression, age, or other significant

characteristics of a person.

Furthermore, Protector considers diversity, equity, inclusion

and belonging (DEIB) central to its performance culture. This

enables the company to recruit the right people, make best-

in-class decisions, innovate, and better serve a diverse range

of partners and customers.

Protector’s eorts towards DEIB will be deliberate and

conducted collaboratively with the company’s employees.

Everyone in the company, regardless of their position, has

a responsibility to embrace each other’s dierences and

respect the dignity that everyone has the right to in their

workplace.

As part of onboarding, all employees are required to sign the

company’s DEIB policy, which outlines our work on diversity,

equity, inclusion and belonging, and the company’s ethical

guidelines.

PEOPLE

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT96 97

2023 statistics

This reporting is either cumulative for 2023, or the status per

31.12.2023.

The table covers permanent employees. For more information

on board and level 1 remuneration, see the company’s annual

remuneration report for executive personnel.

Job level Gender balance  Remuneration



Number of women  Number of men Share women  Total

Dierences in total

remuneration (%)

Dierences in annual

salary (%)

Board 

3 4 43% 7 70.7% -

Protector Insurance

219 307 42% 526 71.7% 79.4%

Level 1

1 10 9% 11 53.8% 51.7%

Level 2

8 15 35% 23 82.5% 90.0%

Level 3

12 32 27% 44 74.7% 79.3%

Level 4 30 35 46% 65 89.0% 91.8%

Level 5 92 95 49% 187 92.4% 93.3%

Level 6 76 118 39% 194 102,5% 102,4%

Level 7 - 1 0% 1 - -

Norway

66 101 40% 167 58.0% 67.1%

Level 1

1 6 14% 7 53.6% 51.9%

Level 2

2 6 25% 8 82.3% 99.2%

Level 3

4 20 17% 24 72.1% 73.5%

Level 4 8 10 44% 18 72.9% 78.4%

Level 5 19 30 39% 49 93.4% 96.2%

Level 6 32 28 54% 60 90.6% 91.8%

Level 7 - 1 0% 1 -

Sweden

57 73 44% 130 73.5% 87.4%

Level 1

- 2 0% 2 - -

Level 2

1 4 20% 5 61.7% 85.9%

Level 3

2 1 67% 3 113.3% 117.5%

Level 4 6 5 55% 11 140.5% 141.4%

Level 5 11 14 44% 25 97.0% 96.4%

Level 6 37 47 44% 84 106.0% 104.4%

Level 7 - - - - - -

Denmark

25 30 45% 55 102.3% 102.7%

Level 1

- 1 0% 1 - -

Level 2

2 1 67% 3 113.3% 116.6%

Level 3

4 2 67% 6 107.7% 101.1%

Level 4 2 5 29% 7 146.7% 147.7%

Level 5 12 13 48% 25 99.6% 100.4%

Level 6 5 8 38% 13 82.8% 84.4%

Level 7 - - - - - -

55 95 37% 150 89.3% 88.6%

Level 1

- 1 0% 1

Level 2

3 3 50% 6 89.8% 76.0%

Level 3

2 8 20% 10 88.0% 86.6%

Level 4

11 14 44% 25 85.1% 85.6%

Level 5

26 37 41% 63 89.9% 89.5%

Level 6

13 32 29% 45 93.0% 92.3%

Level 7 - - - - - -

Finland

16 8 67% 24 81.7% 82.2%

Level 1

- - - - - -

Level 2

- 1 0% 1 - -

Level 3

- 1 0% 1 - -

Level 4

3 1 75% 4 115.1% 112.2%

Level 5

8 1 89% 9 117.7% 112.9%

Level 6

5 4 56% 9 93.0% 92.9%

Level 7 - - - - - -

The figures above include temporary positions such as summer substitutes, part-time employees, and various student positions.

As of 31 December 2023, there were five women and one man in temporary positions. The figures for temporary employees do

not include employees who left before 31 December 2023. There were no employees in involuntary part-time positions in the

company in 2023.

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

233 330 8.2% 7.6% 3.0% 1.8% 0.0% 0.0%

Parental leave 

 Women’s parental leave* Men’s parental leave* 

Protector Insurance

16.8 12.9

Norway

20.3 19.6

Sweden

9.6 11.5

Denmark

- 5.5

20.6 2.0

Finland

28.6 2.0

*Average number of week 

The parental leave statistics are based on the number of weeks of parental leave per gender, divided by the number of persons

of that gender who have taken parental leave. Note that Protector UK provides significant parental leave entitlements beyond

those that are statutory.

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT98 99

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 

- 42.9% 57.1%

Protector Insurance

37.7% 51.0% 11.2%

Level 1

- 63.6% 36.4%

Level 2

8.7% 65.2% 26.1%

Level 3

4.5% 75.0% 20.5%

Level 4 20.0% 69.2% 10.8%

Level 5

19.9% 64.3% 15.8%

Level 6

69.5% 27.6% 2.9%

Level 7

100.0% - -

Norway

28.3% 59.6% 12.0%

Level 1

- 57.1% 42.9%

Level 2

- 75.0% 25.0%

Level 3

4.2% 83.3% 12.5%

Level 4 5.6% 88.9% 5.6%

Level 5 18.4% 67.3% 14.3%

Level 6 59.3% 33.9% 6.8%

Level 7 100.0% - -

Sweden

53.1% 40.0% 6.9%

Level 1

- 100.0% -

Level 2

40.0% 60.0% -

Level 3

- 100.0% -

Level 4 45.5% 45.5% 9.1%

Level 5 16.0% 56.0% 28.0%

Level 6 69.0% 29.8% 1.2%

Level 7 - - -

Denmark

16.4% 70.9% 12.7%

Level 1

- 100.0% -

Level 2

- 100.0% -

Level 3

- 66.7% 33.3%

Level 4 28.6% 71.4% -

Level 5 8.0% 76.0% 16.0%

Level 6 38.5% 53.8% 7.7%

Level 7 - - -

46.0% 40.0% 14.0%

Level 1

- - 100.0%

Level 2

- 33.3% 66.7%

Level 3

10.0% 50.0% 40.0%

Level 4

20.0% 60.0% 20.0%

Level 5

28.6% 60.3% 11.1%

Level 6

100.0% - -

Level 7 - - -

Finland

16.7% 75.0% 8.3%

Level 1

- - -

Level 2

- 100.0% -

Level 3

- 100.0% -

Level 4

- 100.0% -

Level 5

11.1% 66.7% 22.2%

Level 6

33.3% 66.7% -

Level 7

- - -

FRAMEWORK FOR OUR WORK WITH DIVERSITY,

EQUITY, INCLUSION AND BELONGING

The company has established a committee dedicated

to promoting DEIB. The committee is composed of

representatives from Human Resources and employees

across our business units. Its work will:

• Identify risks of discrimination and obstacles to equality.

• Analyse the causes of risks, obstacles, and gender

dierences.

• Plan and implement actions that counteract

discrimination and promote equality and diversity.

• Evaluate the measures.

The committee conducts quarterly meetings to review

progress on the dierent initiatives.

Protector is a signatory of the Women in Finance Charter.

In accordance with this charter, the company is targeting

a balanced representation in all management levels, with a

minimum of 40% of any gender.

STATUS & PLANS GOING FORWARD

2023 marked an important year for Protector as it redefined

its approach to Diversity, Equity, Inclusion, and Belonging,

evolving from its previous focus on Equality, Diversity, and

Inclusion.

This new direction, shaped by input from all employees,

included following measures in 2023:

• Comprehensive DEIB Training: Completion of a DEIB

course by all employees to align understanding and

commitment across Protector.

• Objective Recruitment Tools: Introduction of a new job

analysis template and a job advertisement template with

inclusive language, designed to minimize biases and

attract a diverse range of candidates.

• Enhanced Interview Process: Implementation of a

structured interview system with standardised templates

and scoring to ensure objective candidate evaluations.

• Candidate Experience Survey: Launch of a Candidate

Net Promoter Score (cNPS) to gather feedback from

all job applicants, helping to continuously improve the

recruitment process.

• Language Accessibility: Oering language courses to

new employees, supporting a multicultural and inclusive

workforce.

• ‘Your Voice’ Whistleblowing System: A confidential

platform for employees to safely report concerns,

promoting ethical behaviour and accountability.

• Equitable Succession and Compensation: Restructuring

of succession planning and salary benchmarking for

gender balance, along with targeted eorts to increase

female representation in leadership roles.

The company sees a positive development due to these and

earlier measures. In the employee satisfaction survey for

the autumn 2023, Protector achieved a DEIB score of 70.6,

which is a minor improvement compared to the 2022 score.

Protector has seen an increase in the diversity of its applicants

and is eager to continue the trend by focusing on job analysis,

job ads and how the company structures its recruitment

process in 2024.

The DEIB committee is scheduled to re-evaluate risks and

obstacles to equality in Q1 2024, using insights from recent

measures to inform the company’s plan for the upcoming

year.

HUMAN AND LABOUR RIGHTS AT OUR SUPPLIERS

Employees at our suppliers shall experience job satisfaction,

commitment, and security, and should be entitled to the

same rights, duties, and opportunities, irrespective of gender,

pregnancy, leave in connection with childbirth or adoption,

care responsibilities, ethnicity, religion, belief, disability,

sexual orientation, gender identity, gender expression, age,

or other significant characteristics of a person. Children shall

not be used as labour and forced labour shall not occur.

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.

Protector requires that its Code of Conduct must be signed

and complied with by all new contractual partners before a

collaboration can start. This document is based on OECD

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 Protector’s 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 has

published on its website an account of the specific due

diligence assessments carried out. The account shall be

revised yearly by 30 June, or in the event of significant

changes.

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT100 101

CLIMATE RESILIENCE

ROUTINES AND PROCESSES FOR MANAGING

CLIMATE RISK

Protector recognises that unwanted weather-related events

are becoming more frequent and more severe. Proper

forward-looking assessment of climate risk is increasingly

important to understand what risk the company’s potential

customers are exposed to, and thus what risk is transferred

to Protector through its insurance.

Climate risk is the potential for negative financial and

operational impacts that organisations may experience

because of climate change. It has two elements:

• Physical Risks: These are the risks arising from the

physical eects of climate change, such as extreme

weather events, sea-level rise, and changes in

temperature. They can lead to asset damage, supply

chain disruptions, and increased operational costs.

• Transition Risks: These risks are associated with the

transition to a lower-carbon economy. They include

policy changes, technological advancements, and shifts

in market demand that could make existing business

models obsolete or increase costs for non-sustainable

practices.

Protector’s general exposure to climate risk, through

having only customers in the Nordic countries and the

United Kingdom, is somewhat limited. Furthermore, the

assets Protector insures are largely of the type that are

more resistant to extreme weather, such as larger oce or

municipal buildings in areas close to city centres constructed

from concrete and steel.

The company’s underwriting is based on analysis, data,

modern tools, on-site inspections, and loss prevention. Its

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 and comprehensive 8-step process to

carefully understand and manage the current climate risk.

Through this process, Protector 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 immediate measures are important

mitigating factors in the event of a disaster. If Protector can

give advice to customers before undesirable events occur,

the consequences of the events could be reduced.

Unexpected claims often lead to reviews of portfolio and

exposures. Lessons are applied in loss prevention and renewal

coverage, terms, and conditions.

Protector evaluates its portfolio’s climate risk on a quarterly

basis and take this into account through reinsurance. The

company employs recognized tools and methods such as

AIR and RMS in its climate risk evaluation. Its reinsurance

now covers an estimated 1-in-6,250-year event. In line with

Protector’s reinsurance policy, the maximum deductible

exposure is DKK 100 million, regardless of the type of event

that occurs.

In 2023, Protector licensed a new catastrophe modelling

tool from RMS. This tool is designed to assess and mitigate

risks associated with natural disasters, such as windstorms

and ﬂoods. Utilising advanced modelling techniques, data

analytics, and geospatial technology, it evaluates the potential

impact of these events on properties, infrastructure, and

communities. This new license will enable Protector to better

We focus on routines and processes for managing climate risk

We use the best datasets to understand climate risk. This allows us to reduce the physical and

economic consequences of climate change.

We focus on climate resilience in product development and pricing

We develop insurance products that take climate risk into account, incentivise our customers to

implement climate resilience measures and provide financial protection in the face of climate

change.

We focus on climate

resilience to counteract

the consequences of

climate change

We report on and leverage the EU’s taxonomy

We report in line with the EU’s taxonomy regulation and leverage it in promoting climate

resilience.

understand and manage its exposure to natural catastrophes

by providing insights into potential losses, thereby facilitating

improved risk pricing, underwriting, and strategic decision-

making. The license covers UK ﬂood and windstorm risks as

well as Danish windstorm risks.

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 based on 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, including breaking climate risk

down into physical, transition and liability risk, can be found

in the company’s Report on Solvency and Financial Position

2023.

In 2023, the company updated its assessment of how climate

change inﬂuences risks over a 50-year perspective. In this

analysis, Protector focused on ﬂoods and windstorms to

try and forecast scaling factors for both perils in the future.

For ﬂoods, the company attempted to predict the shifts in

expected return periods across dierent climate zones, using

future rainfall predictions linked to global surface warming. In

the case of windstorms, the analysis considered the impact of

rising sea surface temperatures, a factor that typically results

in storms becoming more frequent and severe. However,

increased warming further north is expected to result in a

weakening of the temperature gradient across Northern and

Southern Europe, meaning that windstorm formation may

become less frequent. There is, of course, huge uncertainty

surrounding these forecasts, but it illustrates how Protector

works on its climate resilience.

Protector’s goal is to continue its profitable growth. To

support this goal, the company will continually improve its

underwriting. Through participation in the “Industry Board

risk and damage”, the board of the Norwegian Natural Perils

Pool and close cooperation with its reinsurance broker,

Protector has broad access to market trends, data, advice,

and knowledge that is relevant for managing climate risk.

TAXONOMY DISCLOSURE FOR INSURANCE ACTIVITIES

The EU’s taxonomy establishes a classification system defining

which economic activities have the potential to contribute

to the transition to an environmentally sustainable future, or

already do so. These activities are termed ‘taxonomy eligible’

and ‘taxonomy aligned,’ respectively.

These disclosures are based on Protector’s best understanding

of the requirements set out in the legislation and associated

guidance at the time of preparing the reporting. The company

will continue to follow the regulatory developments closely.

The company shall leverage the taxonomy to reduce both

its customers’ and its own climate risk. In determining if an

insurance product is eligible, the company uses the technical

screening criteria set out in annex 1 of commission delegated

regulation 2015/35.

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT102 103

Protector sees substantial potential to contribute to the

transition to an environmentally sustainable future.

The company’s exposure to sectors defined per the EU’s

Taxonomy regulation as constituting significant harm is

limited. Significant harm comprises economic activities

that do not comply with the taxonomy’s requirement for

sustainable activity.

CLIMATE RESILIENT PRODUCT DEVELOPMENT

A changing climate aects which cover, terms, conditions,

and pricing are right for Protector’s products. The company is

already seeing changes to what perils exist: causes of damage

such as hailstorms and forest fires are more prominent now

than before.

Protector reviews and adjusts its product oering on an

annual basis. This is based, among other things, on input from

brokers, customers, industry organisations, and claims data.

For general insurance this is related to en environmental

objective 1 – reduce and prevent GHG emissions and includes

production, storage, transport and further processing of

fossil fuels. Filtering on the insured’s NACE code, Protector’s

insurance revenue from these sectors constitutes approx.

0.15% of the total insurance revenue.

The result is that the company develops insurance products

that take climate risk into account, incentivise its customers

to implement climate resilience measures and provide

financial protection in the face of climate change. In 2024,

the company will strengthen its work on environmentally

sustainable products, and start reporting on taxonomy

alignment. This enables Protector to oer the products the

market needs and ensures its continued profitable growth.

Taxonomy disclosure for insurance activities

Economic activity Share of insurance revenue*

General insurance underwriting of taxonomy-aligned activities 0.00%

General insurance underwriting of taxonomy-eligible activities 86.9%

General insurance underwriting of non-taxonomy-aligned and non-taxonomy

eligible activities

13.1%

*See note 5 for details such as insurance revenue per segment

Do no significant harm (DNSH) disclosure

Sector Share of insurance revenue*

Mining of coal and lignite 0.00005%

Extraction of crude petroleum and gas 0.02798%

Transportation via pipeline 0.00243%

Wholesale of solid, liquid, and gaseous fuels and related products 0.12377%

Manufacturing of coke and refined petroleum products 0.00084%

*For the period from November 2022 to November 2023

CLIMATE EFFICIENT SOLUTIONS

The statistics above show that this is an area with potential for improvement. Note that there are dierences in building types

and risk profiles across the company’s markets, which accounts for some of the dierences above.

2023 statistics for property-related inspections

Country Customers inspected Buildings inspected Buildings with deviations

Share of buildings with

deviations

Norway 79 405 230 57%

Denmark 16 355 262 74%

Sweden 83 1158 474 41%

UK 128 1 693 448 26%

Total 306 3 611 1 414 39%

LOSS PREVENTION

The most eective climate measures for a non-life insurance

company are to prevent damage from occurring, and to

reduce the consequences if an adverse event should occur.

Loss prevention is therefore central to Protector and its

commitment to climate eciency.

The three main tenets of the company’s loss prevention

strategy are in-depth risk assessment, continuous

improvement and engagement, and timely warning and

remediation.

In-depth risk assessment involves inspections and evaluations

of both potential and existing customers to identify any risks

or deviations. This proactive approach ensures that risks are

understood, correctly priced, and deviations and other risk

mitigating measures are identified. The closing of deviations

and implementation of risk mitigating measures can lead to

price reductions.

In 2023, the company has continued its work with inspections

and identification of deviations.

Continuous improvement and engagement is an ongoing

process of enhancing both Protector’s and its customers’

loss prevention practices and maintaining active engagement

with its customers. This includes oering advice, courses,

guidelines, following up on previous reports, and conducting

audits to ensure that risks are consistently managed, and

mitigations are eectively implemented over time.

Protector develops its own and the market’s understanding

of loss prevention practices. Following larger incidents, the

company undertakes investigations to understand the causes

of loss, assess the eectiveness of the implemented loss

prevention strategies, and determine additional measures

to prevent future occurrences. The company moreover has

a history of contributing to new safety regulations through

industry associations.

An example of this tenet is the Risk Academy webinar series.

In these sessions, the company engages with customers and

brokers to discuss cost-eective mitigations for frequent

losses and emerging risks. The company witnessed a 150%

increase in attendance year-over-year.

Immediate measures through timely warning and

remediation can reduce the consequences of an undesirable

event. The company therefore gives advice on and provides

early warning, and remediation is key to ecient settlement

of claims. The latter is described more in-depth in the next

section.

The company believes that this focus on loss prevention sets

it apart from other insurance companies and adds significant

value to its customers. In 2024, together with its customers,

Protector will improve its eorts of preventing undesirable

events from occurring and reducing the consequences of

those that do occur.

We focus on loss prevention

We reduce our own and our customers' losses by extending the life of their assets.

We reduce

environmental footprint

through loss prevention

and effective claims

settlement

We focus on reducing the climate footprint in claims settlement

We work with our suppliers and customers to make our claim settlements, using residual values, reuse, material

and process choices, more circular.

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT104 105

47 624

500

33 812

1 110

8 685

1 050

2023 CLAIMS CARBON IN TONNES OF CO2E

M oto r Marine, Aviation and Transit Property

Health insurance (life) General liability Medical expense

Within claims handling, Protector has identified the greatest

potential for reduction in its climate footprint in motor and

property, and these segments will be our primary focus in our

ongoing sustainability eorts.

In these segments, the company works closely with its

suppliers and customers to:

• Increase the proportion of repair, reuse, and recycling

when settling a claim.

• Employ climate-friendly materials and processes.

• Evaluate damage with the goal of identifying residual

values and potential climate measures.

Protector inﬂuences, through industry organisations such as

Finance Norway, industry standards to allow for more repairs

and reuse. This provides financial gain both for the customer

and for the company. In addition, in those cases where it is

dicult to sell damaged but usable items, Protector donates

those to charity.

Used parts and repairs of glass

Country

Share of parts that were

used (2023)

Target share used parts

(2025)

Share of glass repaired

(2023)

Target share of glass

repaired (2025)

DK 1.1% 1.5% 24.4% 33%

NO 1.4% 2% 28% 33%

SE 10.7% 12% 31% 33%

Motor

Protector recommends workshops for each geographical

area. Recommended workshops have incentives for

environmental and cost savings and can document

satisfactory operations in accordance with requirements and

quality standards Protector sets.

When selecting a workshop to recommend, factors

considered include whether it is independent or not, its

specialisation, cost, and the need to ensure sucient volume

for smaller workshops. Workshops specialising in certain

repairs, such as glass damage, tend to have a higher repair

rate.

The company’s key sustainability requirements to its

workshops are:

• Repair where feasible.

• If repairs are not feasible, use used parts where feasible.

• Employ climate-friendly materials and processes.

The table above shows shares for used car parts and glass

repairs. The methodologies for calculating these shares vary

by country, making these figures not directly comparable.

Furthermore, the age of the vehicles in the portfolio aects

whether workshops can use used parts. Due to characteristics

of the company’s customer mix, the average age of vehicles

Protector insures is low.

A smart standard measure by the insurance industry is waiving

the deductible when the insured party opts for repairing

damaged glass instead of replacing it. This approach not

only decreases cost for both the insurance company and the

policyholder but also minimises the environmental footprint.

Protector is committed to advancing sustainability with its

handling of motor claims.

Property

The majority of Protector’s property claims relate to

buildings. The way these claims are handled is critical.

When a building is damaged, quickly initiating remediation

measures is key to limiting both cost and environmental

footprint. If there is escape of water, stop the leakage and

remove the humidity.

Providing its customers with excellent remediation services

is therefore strategic to the company, and it has in recent

years strengthened this capability through its partnership

with Polygon. Protector moreover monitors this supplier’s

performance through KPIs on waste management,

environmentally certified building materials, vehicle

emissions, and more.

With remediation well underway, it is time for restoration.

For restoration, Protector engages independent and skilled

claims appraisers for not only the appraisal but also to

ensure that repairs and reconstructions comply with current

requirements.

In 2024, Protector will strengthen its work for reduced

climate footprint in claims settlements. The company will

have more detailed and comparable sustainability targets and

implement these in all the markets it operates in. Moreover,

the company will use its climate accounting to prioritise

the measures with the greatest impact. Through product

development, loss prevention, claims handling expertise and

supplier management, Protector will achieve its goals.

REDUCED CLIMATE FOOTPRINT IN CLAIMS

SETTLEMENT

Protector handles over 184,000 claims annually. As shown

in this chapter’s introduction, claims represent most of

Protector’s greenhouse gas emissions.

How these claims are settled is one of the company’s biggest

opportunities for both sustainability and cost savings. The

company is committed to capitalizing on these opportunities.

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT106 107

RESPONSIBLE BUSINESS BEHAVIOUR

OUR OWN OPERATIONS

Protector shall contribute to society, support a great

corporate culture and avoid fines and penalties.

Corruption and anti-money laundering

Protector is a non-life insurance company and operates in

a business and geographical area where the corruption and

money laundering risks are assessed as low.

The company continually works to limit its corruption risk.

In 2023, the company’s ethical guidelines were updated

and signed by all employees. 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 on cases where they have personal interests, or where

it may be perceived by others that they have such interests.

All of Protector’s employees must complete mandatory anti-

corruption training.

The company’s eort to reduce the risk of corruption will

continue in 2024. The training material will be improved, and

the cross-border procurement unit will implement measures

increasing the transparency of the company’s largest

contracts.

Protector has a risk-based approach to money laundering and

terrorist financing. Each customer is classified using factors

such as type of product, customer, industry, evaluation of

coverage structure against customer characteristics, and

several other relevant factors. For customers that have been

classified as high-risk, Protector implements additional risk

reducing measures, bringing the risk down to acceptable

levels.

The company actively fights money laundering by closely

monitoring high-risk conditions and reporting any suspicions

to the relevant authority.

All of Protector’s employees must complete a mandatory

e-learning course on combatting money laundering and

terrorist financing. The company updated its training material

and associated guidelines in 2023.

Going forward, the company will keep implementing

measures ensuring that the risk of money laundering and

terrorist financing remains low.

Information security

Confidentiality, integrity, and availability of information

are fundamental to Protector’s IT strategy. Every year, the

importance of protecting information and information

systems from unauthorised access, use, disclosure,

modification, or destruction increases.

We focus on responsible business behaviour in our external relationships

We manage and report on business risk management and governance procedures related to customers, suppliers,

and other partners. We follow up on suppliers to ensure ethical procurement practises and ensure proper

protection of customer data and information security .to meet regulatory requirements and expectations from

stakeholders.

We have responsible

business behaviour at the

heart of our operations

We focus on responsible business behaviour in our own operations

We have zero tolerance for unethical business behaviour, including corruption, fraud, bribery, and money-

laundering in our operations. We ensure proper business risk management systems, governance procedures and

employee awareness and conduct.

We focus on being a responsible investor

We include ESG factors in our investment decisions, exercise active ownership and are transparent about our

portfolio. This meets regulatory requirements and expectations from our stakeholders.

Information Security is therefore important to Protector.

The company follows industry requirements as described in

the Norwegian ICT regulations, EIOPA and SoC2. Protector

is certified annually according to Cyber Essentials Plus in the

UK. In line with EIOPA recommendations, critical external

partners are also subject to tests.

Protector’s security team is responsible for the

implementation of the company’s security culture and

crisis planning. The company security policy is signed by all

employees. Security policies, procedures, and guidelines are

organised in a central repository on the company’s wiki.

To protect its data and systems, the company has

implemented various measures and policies to address each

aspect of Information Security:

• To ensure confidentiality, Protector uses encryption,

authentication, authorisation, and access control

mechanisms to prevent unauthorised access to

its data and systems. The company also conducts

regular security awareness training for its employees

and contractors to educate them on how to handle

sensitive information and avoid phishing and social

engineering attacks.

• To ensure integrity, the company performs regular

backups and audits to detect and recover from any

potential data loss.

• To ensure availability, Protector uses redundancy, load

balancing, and disaster recovery plans to ensure that its

data and systems are always available and functional. The

company also monitors and tests its network

performance and security to identify and mitigate any

potential threats or vulnerabilities.

• Protector provides security training for employees

(with a focus on frequent phishing training) and software

engineers (security by design).

• The company regularly performs technical tests and

tests of its business continuity capabilities.

• The company maintains high standards for infrastructure

security that include the use of advanced firewalls and

VPN for all external access.

Protector has not experienced any successful attacks during

2023.

Information security is vital for the company as it handles

sensitive and financial information. Protector is committed

to providing the highest level of information security to

its customers, partners, and stakeholders. The company

continuously reviews and improves its information security

policies and practices to ensure that it meets or exceeds the

industry standards and expectations.

Personal data

Protector processes personal data in accordance with

relevant data protection laws and regulations. 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 mandatory e-learning on the

company’s guidelines for the processing of personal data.

Environmental footprint

Protector limits the climate impact of its own operations.

The company’s oces in Norway and the UK are BREEAM

certified. All company oces have easy access to public

transport, limiting the need to commute by car. Protector

employs strict source separation of waste at all oces.

Moreover, the company has, through recent digitalisation,

permanently reduced its travel activities.

EXTERNAL RELATIONSHIPS

Protector requires its suppliers to comply with applicable

regulatory requirements and industry standards.

This process begins with a thorough review of prospective

suppliers before entering into any agreements, ideally

using tender submissions and supporting documentation.

Furthermore, suppliers must sign Protector’s Code of

Conduct, thereby confirming their adherence to the

stipulated requirements. The company maintains an ongoing

relationship with existing suppliers by conducting meetings,

obtaining necessary reports, performing quality audits,

carrying out inspections, and utilising various other evaluation

methods. See also the section on human and labour rights at

our suppliers.

Protector oers summer and part-time jobs to a large

number of students. This provides important early career

work experience. The company considers this to be part of

its social responsibility.

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT108 109

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. Grappling with climate risk, the

company expects increased requirements, regulations, and

costs for activities that have a negative sustainability impact.

This view is reﬂected in our approach to investment.

Protector continued its eorts in this area through 2023.

The company published its first policy for responsible

investments. To increase awareness, the company rolled out

an e-learning course on sustainability to all employees during

the year, including a section on responsible investments.

Protector also commissioned a 3rd party evaluation of its

process and approach to responsible investments, which

will lay the groundwork for further process improvement.

Current initiatives include formalising our net zero by 2050

ambition, exploring the potential for allocating a share of

the portfolio to assets with stricter ESG requirements (e.g.

impact investment), and increasing the number of active

ownership dialogues.

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 that are involved in corruption. To ensure that the

investment universe contains companies that meet generally

accepted ethical guidelines, Norges Bank’s exclusion list is

applied.

Protector has a ‘bottom-up’ analysis approach where

company-specific factors such as competitive position and

valuation are the starting point. Factors related to ESG are

integrated in the investment decisions.

The Investment Director has overall responsibility for the

integration 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.

Overall, Protector wants to take part in sustainable value

creation together with its investees. To achieve this, the

company focuses on the following key themes in its work

related to ESG:

• Zero emissions by 2050 – ambitions and contributions.

o Focusing on investees with high levels of carbon

emissions in the portfolio

• Equality, diversity, and inclusion.

o Everyone should be entitled to the same rights,

duties, and opportunities regardless of a person’s

characteristics.

• Good corporate governance.

o Boards must act in the best interest of the

shareholders.

o Board members must also be able to contribute

perspectives and knowledge to maximise long-term

value creation.

o Compensation of management and the board

must be reasonable and not at the expense of the

shareholders.

It is important that profitability and sustainability go hand in

hand. In cases where profitability is temporarily pressured due

to necessary sustainability measures, Protector encourages

the companies to share the cost with their value chain over

time, or to develop new ways of working to restore historical

profitability.

The company compares investees in areas related to the key

themes. In cases where there are major dierences, investee

management will first be encouraged to move in the right

direction. If this is not sucient, a more formal dialogue

will be initiated which may lead to exercise of ownership or

exiting the investment.

Protector is often a major shareholder or lender. This gives

opportunities for exercise of ownership. The exercise of

ownership is based on an assessment of how it can have the

greatest impact. In some cases, it may be better to retain an

ownership position and exert inﬂuence rather than exiting

the investment.

Examples of active ownership:

• Ongoing contact with management through investor

meetings.

o In some cases, there is also engagement on board

level.

• Promoting best practices from other companies in the

same industry.

• Voting and proposals for general assemblies.

• Reviewing and giving input on bond and loan terms.

Protector seeks to collaborate with other investors to

inﬂuence companies in matters related to corporate

governance and sustainability.

As a starting point, Protector will not invest in companies

that have a history of poor corporate governance. Protector

contributes to improving governance by participating

in election committees where possible. Historically, the

company has been active in changing the board composition

of several investees to increase competence and value

creation.

In 2023, Protector has been represented on the election

committees of many investees where the company has a

large share of ownership. Examples of this include KnowIT,

eWork, Projektengagemang, Elanders, B3, and Dustin.

Through 2023 Protector has improved its understanding

and calculations of the carbon intensity of its investment

portfolio. Stamdata is now the company’s provider of ESG

data and comparative figures for 2022 have been recalculated

with this new data set.

It is worth noting that Protector uses external managers to a

small extent. In the table below only bond funds are externally

managed and represent approximately 13% of AUM.

2022 2023

Unit

Bond founds

WACI

102,9 267

tCO2e/MEUR

Owned emissions

3 232 12 578

tCO2e

Data cover

60% 60%

Share of analysed assets

6% 13%

Equities

WACI

22.6 13.0

tCO2e/MEUR

Owned emissions

3 895 3 414

tCO2e

Data

77% 86%

Estimates

21% 11%

Data cover

99% 97%

Share of analysed assets

19% 16%

Corporate bonds

WACI

51 46

tCO2e/MEUR

Owned emissions

23 096 23 952

tCO2e

Data

74% 71%

Estimates

22% 26%

Data cover

97% 97%

Share of analysed assets

58% 47%

Total

WACI

58 64

tCO2e/MEUR

Owned emissions

1,2,6

30 223 40 124

tCO2e

Data cover

78% 69%

WACI = weighted average carbon intensity, based on Scope 1 + Scope 2

Analysed assets exclude cash and derivatives

1) Funds representing 16.5% of total bond fund investments in 2023 scaled to 100%, remainder not scaled

2) Data + estimates for own holdings scaled to 100%, Scope 1 + Scope 2

3) Estimates based on industry avarage, delivered by Stamdata

4) Excluding government and municipal bonds, no investments in government bonds pr. 31.12.23

5) Weighted average based on data coverage, i.e. not including assets without data/estimates

6) Own bond portfolio scaled to 100% applying corporate bond footprint to municipal bonds.

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT110 111

For internally managed equities and corporate bonds,

there was a reduction in carbon intensity (WACI) and

owned emissions YoY, resulting in approximately 15% lower

owned emissions per invested amount. The carbon intensity

was already at a low level last year, reﬂecting our limited

allocation to oil & gas and other high-intensity industries

such as shipping. Being ‘underweight’ in such industries is

intentional, as the company views these as having a high level

of transition risk.

As for data coverage of the total portfolio, the share of

municipal bonds has increased YoY. This change is the

main reason for the decrease in data coverage as there

are currently no data available for these bonds. Stamdata

is developing a methodology for estimating emissions

for municipalities, which hopefully can be included in the

upcoming 2024 reporting.

Where Protector is exposed to companies with a high

carbon intensity, the companies must have a clear plan to

reduce emissions. If this does not exist, Protector can still

invest, but will then inﬂuence the companies to put such a

plan in place. Of the top 10 contributors to total emissions,

representing the vast majority of owned emissions, 9/10 have

carbon reduction targets in place. The company intends to

encourage the remaining company to put such targets in

place in 2024.

A large share of owned emissions stems from a single

company – Yara. This company has set carbon reduction

targets across scopes 1, 2, and 3 in line with the Paris

Agreement, and is executing on its plan to remove fossil fuels

from the production of fertilizers.

In order to optimise carbon intensity, Protector could sell

these bonds, which, when considering market value, do not

have a large weight in the portfolio. However, the company

believes that supporting such companies in their transition

makes more sense than withholding capital and increasing

their financing costs.

Preliminary assessments indicate that Protector has far lower

carbon intensity in its investment portfolio than its peers.

The assessments also indicate that the internally managed

bond portfolio has a carbon intensity which is significantly

lower compared to the bond funds in which the company is

invested.

Protector will seek to be the best among comparable

insurance companies in terms of the investment portfolio’s

carbon intensity.

TAXONOMY DISCLOSURE FOR INVESTMENTS

Information to be disclosed by undertakings subject to

Articles 19a or 29a of Directive 2013/34/EU concerning

environmentally sustainable economic activities.

The proportion of the insurance or reinsurance undertaking’s investments that are directed at funding, or are associated

with, Taxonomy-aligned in relation to total investments [monetary amounts in MNOK]

The weighted average value of all the investments of insurance

or reinsurance undertakings that are directed at funding, or are

associated with Taxonomy-aligned economic activities relative to

the value of total assets covered by the KPI, with following weights

for investments in undertakings per below:

The weighted average value of all the investments of insurance

or reinsurance undertakings that are directed at funding, or are

associated with Taxonomy-aligned economic activities, with following

weights for investments in undertakings per below:

Turnover-based:

2.1%

Turnover-based:

387

Capital expenditures-based:

1.8%

Capital expenditures-based:

344

The percentage of assets covered by the KPI relative to total

investments of insurance or reinsurance undertakings (total AuM).

Excluding investments in sovereign entities.

The monetary value of assets covered by the KPI. Excluding

investments in sovereign entities.

Coverage ratio:

100%

Coverage:

18 683

Additional, complementary disclosures: breakdown of denominator of the KPI

The percentage of derivatives relative to total assets

covered by the KPI.

The value in monetary amounts of

derivatives.

0.2% 32

The proportion of exposures to financial and non-financial

undertakings not subject to Articles 19a and 29a of Directive

2013/34/EU over total assets covered by the KPI:

Value of exposures to financial and non-financial undertakings not

subject to Articles 19a and 29a of Directive 2013/34/EU:

For non financial undertakings:

34%

For non financial undertakings:

6 358

For financial undertakings:

16%

For financial undertakings:

3 041

The proportion of exposures to financial and non-financial

undertakings from non-EU countries not subject to Articles 19a

and 29a of Directive 2013/34/EU over total assets covered by the

KPI:

Value of exposures to financial and non-financial undertakings from

non-EU countries not subject to Articles 19a and 29a of Directive

2013/34/EU:

For non financial undertakings:

29%

For non financial undertakings:

5 495

For financial undertakings:

16%

For financial undertakings:

3 004

The proportion of exposures to financial and non-financial

undertakings subject to Articles 19a and 29a of Directive 2013/34/

EU over total assets covered by the KPI:

Value of exposures to financial and non-financial undertakings subject

to Articles 19a and 29a of Directive 2013/34/EU:

For non financial undertakings:

24%

For non financial undertakings:

4 458

For financial undertakings:

10%

For financial undertakings:

1 877

The proportion of exposures to other counterparties and assets

over total assets covered by the KPI:

Value of exposures to other counterparties and assets:

0% 0

The proportion of the insurance or reinsurance undertaking’s

investments other than investments held in respect of life insurance

contracts where the investment risk is borne by the policy holders,

that are directed at funding, or are associated with, Taxonomy-

aligned economic activities:

Value of insurance or reinsurance undertaking’s investments other

than investments held in respect of life insurance contracts where

the investment risk is borne by the policy holders, that are directed

at funding, or are associated with, Taxonomy-aligned economic

activities:

0% 0

The value of all the investments that are funding economic

activities that are not Taxonomy-eligible relative to the value of

total assets covered by the KPI:

Value of all the investments that are funding economic activities that

are not Taxonomy-eligible:

Turnover-based:

16%

Turnover-based:

3 072

Capital expenditures-based:

13%

Capital expenditures-based:

2 405

The value of all the investments that are funding Taxonomy-eligible

economic activities, but not Taxonomy-aligned relative to the value

of total assets covered by the KPI:

Value of all the investments that are funding Taxonomy-eligible

economic activities, but not Taxonomy-aligned:

Turnover-based:

542

Capital expenditures-based:

1 078

Continued on next page.

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT112 113

The majority of AUM is managed by the company, while

a minor portion is invested in bond funds. As of 31.12.23

Protector did not own any government bonds. Derivatives

include equity options, currency swaps, and interest rate

swaps.

Collecting the required data is dicult, as companies are not

yet reporting all the figures which go into the assessment.

As an example, financial undertakings will start reporting

aligned assets / green asset ratio with their 2023-reporting.

Protector’s data provider is not yet capable of delivering

all the information required to segment assets properly in

NFRD/non-NFRD and an internal assessment has therefore

been performed based on public information. As for the

taxonomy data, only reported figures are used.

No fund managers (representing 13% of total AUM) were able

to provide the granularity required to include these assets in

the tables above, therefore these assets have been omitted

from the numerator.

Timing has also been an issue as the company’s annual report

is in many cases prepared far ahead of the annual reports of

investees and ahead of fund manager reporting.

NUCLEAR AND GAS TAXONOMY DISCLOSURES

Protector has screened the internal largest holdings

representing over 70% of AUM for disclosures related to

the Complementary Climate Delegated Act, which includes

activities related to the nuclear and gas sectors. None of

the largest holdings have disclosed information about such

activities and the company sees it as unlikely that the amount

will be material once the eligible companies start reporting

in the future. The assessment will be updated next year with

better data quality.

The only company identified with disclosures related to

the Complementary Delegated Act in the latest reporting

year available was a Swedish energy company, representing

0.14% of AUM, not ranking among the largest holdings.

The conclusion is that such exposures, based on available

reporting, are immaterial.

Additional, complementary disclosures: breakdown of denominator of the KPI

The proportion of Taxonomy-aligned exposures to financial and non-

financial undertakings subject to Articles 19a and 29a of Directive

2013/34/EU over total assets covered by the KPI:

Value of Taxonomy-aligned exposures to financial and non-financial

undertakings subject to Articles 19a and 29a of Directive 2013/34/

EU:

Non-financial undertakings - turnover based

Non-financial undertakings - turnover

based

387

Non-financial undertakings - capital expenditures based

Non-financial undertakings - capital

expenditures based

344

Financial undertakings - turnover based

Financial undertakings - capital expenditures based

Financial undertakings - capital

expenditures based

The proportion of the insurance or reinsurance undertaking’s

investments other than investments held in respect of life insurance

contracts where the investment risk is borne by the policy holders,

that are directed at funding, or are associated with, Taxonomy-

aligned:

Value of insurance or reinsurance undertaking’s investments other

than investments held in respect of life insurance contracts where

the investment risk is borne by the policy holders, that are directed

at funding, or are associated with, Taxonomy-aligned:

Turnover-based:

Capital expenditures-based:

The proportion of exposures to financial and non-financial

undertakings subject to Articles 19a and 29a of Directive 2013/34/

EU over total assets covered by the KPI:

Value of Taxonomy-aligned exposures to other counterparties and

assets over total assets covered by the KPI:

Turnover-based:

Capital expenditures-based:

A breakdown of the numerator of the KPI per environmental objective has not been done due to lack of data.

Protector GHG Inventory Report

APPENDIX

GHG Inventory Report – Protector Forsikring ASA

This report is made per the GHG Protocol Corporate Standard and the Scope 3 Standard

requirements. The report includes scope 1, scope 2, and material scope 3 emissions. This covers all

material value chain emissions for the company.

Descriptive information

Company response

Company name Protector Forsikring ASA

Description of the company

Protector offers P&C insurance to large and

medium-sized companies as well as to the

public sector in Norway, Sweden, Denmark,

Finland and the UK

Chosen consolidation approach (equity share,

operational control or financial control)

Equity share

Description of the businesses and operations included

in the company’s organizational boundary

P&C insurance underwriting and claims

handling in Norway, S

weden, Denmark,

Finland and the UK

The reporting period covered 1.1.2023 - 31.12.2023

A list of scope 3 activities included in the report

Category 1: Purchased goods and services

Category 5: Waste generated in operations

Category 6: Business travel

Category 7: Employee commuting

Category 11: Use of sold products

Category 15: Investments

A list of scope 1, scope 2, and scope 3 activities

excluded from the report with justification for their

exclusion

Rest of the Scope 3 cat

egories have been

excluded from the report because they are

not considered material for a P&C insurance

company. Use of agents/brokers potentially

could be a material scope 3 for later

reporting. In category 15 (Investments)

Equities, Bond Funds, and Corporate Bonds

are included. Municipal and governmental

bonds are not included due to lack of

supplier data.

[1]

2023 PROTECTOR FORSIKRING ANNUAL REPORT 2023 PROTECTOR FORSIKRING ANNUAL REPORT114 115

The year chosen as base year and rationale for

choosing the base year

Year 2022, as it was the first year when a full

GHG inventory was prepared.

Once a base year has been established, the chosen

base year emissions recalculation policy. If base year

emissions have been recalculated, the context for any

significant emissions changes that triggered the

recalculation.

Scope 3 Category 6 & 11: Base year is

recalculated with improved emission factors

as used in 2023

Scope 3 Categ

ory 15: Investments have

been recalculated for the base year due to

improved data availability.

Base year’s equivalent emissions to 2023 are

enclosed inside () in the following table

Greenhouse gas emissions data

Scopes and categories

2022

tCO2e

2023

tCO2e

Scope 1: Direct emissions from owned/controlled operations 1.43 0.0

Scope 2: Indirect emissions from the use of purchased

electricity, steam, heating, and cooling

167.13 142.64

Upstream scope 3 emissions

Category 1: Purchased goods and services 388.21 862.56

Category 2: Capital goods - -

Category 3: Fuel- and energy-related activities (not included in

scope 1 or scope 2)

- -

Category 4: Upstream transportation and distribution - -

Category 5: Waste generated in operat

ions 1.42 1.75

Category 6: Business travel 205.2 (1 054.14) 833.10

Category 7: Employee commuting 208.96 275.74

Category 8: Upstream leased assets -

Downstream scope 3 emissions

Category 9: Downstream transportation and distribution - -

Category 10: Processing of sold products - -

Category 11: Use of sold products 55 417 (65 082) 92 785.00

Category 12: End-of-life treatment of sold products - -

Category 13: Downstream leased assets - -

Category 14: Franchises - -