Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Protector Forsikring ASA (STU:PR4, Financial) reported a strong combined ratio, indicating solid profitability despite slight adjustments needed for normalization.
- The company achieved a significant milestone by receiving written confirmation from clients in France, increasing the probability of accessing the French market.
- There were positive runoff gains in Norway and Sweden, contributing to strong quarterly results.
- The company maintained a strong renewal rate across most markets, indicating customer retention and satisfaction.
- Protector Forsikring ASA (STU:PR4) is recognized as a quality leader by brokers in its main markets, providing a competitive advantage.
Negative Points
- Denmark experienced a high share of large losses, particularly in the property sector, affecting overall results.
- The UK market saw low growth due to the loss of a large client, impacting quarterly performance.
- The company faces challenges in recruiting enough personnel to match growth, particularly in the UK.
- Protector Forsikring ASA (STU:PR4) is holding more capital due to increased probability of French market entry, which may impact short-term financial flexibility.
- There is ongoing volatility in growth figures, particularly in smaller markets like Denmark, which can affect overall performance.
Q & A Highlights
Q: Can you provide insights on the hit ratio in France compared to the early stages in the UK?
A: In the UK, we initially had a low hit ratio. The market dynamics in France are different, with less fierce competition, allowing us access to more volume. We expect a slightly higher hit ratio in France compared to the UK in the first year, particularly in the public sector. - Henrik Golfetto Hoye, CEO
Q: What drives your strong renewal rate, and do you expect this trend to continue?
A: The strong renewal rate is based on historical data and market discipline, particularly in the public sector where renewal terms are sent out earlier. We expect this trend to continue as the market remains disciplined. - Henrik Golfetto Hoye, CEO
Q: What types of risks are you writing in France, and how does it compare to the UK market?
A: In France, we focus on motor and property, particularly public housing and municipalities. The personal injury component in France is similar to the UK, indicating a longer tail risk compared to Scandinavia. - Henrik Golfetto Hoye, CEO
Q: How are you approaching pricing in light of claims inflation trends?
A: We price products in line with inflation to counter it, but some products require further correction and will be priced above inflation. Overall, pricing will be slightly above inflation. - Henrik Golfetto Hoye, CEO
Q: What is the staffing plan for France over the next six months?
A: We currently have French underwriters in Manchester and Copenhagen, with plans to move experienced staff to Paris. We aim to increase our team to 15-20 people in France by 2025, focusing on underwriting and claims handling. - Henrik Golfetto Hoye, CEO
Q: Are you comfortable with the current pricing in Denmark given the high frequency of large losses?
A: We are making pricing corrections in certain segments in Denmark due to better understanding of large losses and inflation. Overall, I am comfortable with the pricing level following these actions. - Henrik Golfetto Hoye, CEO
Q: What is the timeline for further geographical expansions?
A: We are learning from our experiences in France and other markets. While we are not in a rush to enter new markets, we continue to explore opportunities in Europe and across the Atlantic. Our focus remains on existing markets and France. - Henrik Golfetto Hoye, CEO
Q: Is there any update on dividend expectations given the growth opportunities in France?
A: We continuously evaluate risks and opportunities, including growth in France. While I can't provide specifics now, our capital strategy will adapt to these evaluations, impacting dividend decisions. - Henrik Golfetto Hoye, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
