Street Calls of the Week
Protector Forsikring ASA (OB:PROT) presented its second-quarter 2025 results on July 11, showcasing robust growth and improved profitability across its European operations. The Norwegian insurer’s stock closed at NOK 478, up 1.05% following the announcement, as investors responded positively to the company’s performance and newly announced dividend.
Executive Summary
Protector reported impressive results for Q2 2025, with gross written premium (GWP) growth of 19% in NOK terms and 16% in local currencies. The company achieved a combined ratio of 84.9%, indicating strong underwriting discipline and operational efficiency.
As shown in the following summary of key performance metrics:
Earnings per share reached NOK 8.7 for the quarter and NOK 17.7 for the first half of 2025. The board announced a dividend distribution of NOK 165 million, corresponding to NOK 2.00 per share, signaling confidence in the company’s financial position and future prospects.
The company also highlighted its recent credit rating upgrade from AM Best to A- (Excellent) and its #1 position in the 2025 UK Broker Satisfaction Index, reinforcing its competitive standing in key markets.
Growth and Volume Analysis
Protector demonstrated strong growth across all its geographic segments, with particularly impressive performance in the UK market. The company’s renewal rate stood at 103%, supported by price increases across its portfolio.
The following breakdown shows premium growth by region:
The UK market led growth with a 20% increase in NOK terms (17% in local currency), with April 1st being the largest inception date for UK policies. The company reported NOK 369 million growth in GWP (14% in local currency) in the UK, primarily driven by the public sector and housing segments.
Sweden, Norway, Denmark, and France also contributed positively to the overall growth picture, with the company’s strategic expansion plans appearing to gain traction across its European footprint.
Claims and Underwriting Performance
Protector’s Q2 loss ratio, net of reinsurance, was 73.4%, with large losses accounting for NOK 209 million (6.1%) and run-off gains of NOK 74 million (2.2%). The quarter was positively influenced by property performance, supported by lower-than-expected large losses.
The detailed claims performance by segment is illustrated here:
The company noted an underlying improvement in motor profitability, with seven large loss events recorded during the quarter. Run-off gains were observed in general liability and property across all countries except Denmark.
The historical pattern of large losses and run-off gains provides context for the current quarter’s performance:
Key Metrics by Segment
A comprehensive breakdown of performance metrics across Protector’s operating segments shows varying results, with the company acknowledging that quarterly volatility should be expected, especially at the segment level:
The data reveals that while all segments contributed to growth, profitability varied by region, with some markets showing stronger combined ratios than others. This segmental analysis provides insight into where the company is performing most efficiently and where challenges remain.
Quality Leadership and Market Position
Protector positions itself as "The Challenger" in the insurance market, emphasizing relationships, decision-making capabilities, and cost-effectiveness. The company’s strategic focus on quality leadership appears to be yielding results, particularly in the UK market.
The UK broker satisfaction index shows Protector’s competitive standing:
With a satisfaction score of 84 (up from 80 the previous year), Protector has secured the top position in the UK Broker Satisfaction Index for 2025, outperforming competitors and reinforcing its market positioning strategy.
Investment Performance
Protector reported strong investment results for Q2 2025, with returns of NOK 642 million, representing a 2.4% return on its investment portfolio. The company increased its bond risk during April volatility and in Q2, with its high-yield portfolio totaling approximately NOK 5.8 billion.
The investment portfolio statistics are detailed here:
Capital Position and Solvency
The company maintains a strong capital position with a Solvency Capital Requirement (SCR) ratio of 220%, well above regulatory requirements. This robust solvency position supports the company’s growth strategy and dividend distribution capacity.
The composition of Protector’s capital position is illustrated in the following chart:
The SCR composition shows that net insurance risk accounts for 61% of the total, with net market risk at 30% and other risks at 9%, reflecting a balanced risk profile.
Forward-Looking Statements
Protector’s presentation reinforces its commitment to its core values—being credible, innovative/open, bold, and committed—while pursuing its strategic targets of cost and quality leadership, profitable growth, and achieving top-three positions in its markets.
The company’s strong performance in the first half of 2025 positions it well to continue its expansion in the UK mid-market and proceed with its planned market entry in France, as mentioned in previous communications.
Analyst Perspectives
According to the earnings call transcript, analysts have responded positively to Protector’s results, with two analysts recently revising their earnings expectations upward. The company’s low price-to-earnings ratio relative to its near-term earnings growth suggests potential upside for investors.
Management emphasized the company’s evolution and strategic growth during the earnings call, stating, "We have grown as a company so we are different." Executives also highlighted the importance of market understanding, noting, "The important thing is to understand, get the details, and then use that in the dialogue with the brokers."
Despite the positive results, the company faces ongoing challenges including claims inflation, softening market conditions in the UK (particularly in property and liability segments), and potential hurdles in its geographic expansion plans, especially the upcoming entry into the French market.
Full presentation:
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