Protector scores again⚽️⚽️

The important thing you might miss

We were spot-on yesterday and promised a follow-up if something came to our attention, and there are two things you should consider:

1. Profitabilty will last longer

After a Q2 with a CR at 81.5%, some analysts might say it was "better due to run-off gains", but they are missing the point. If you correct for run-off, large losses and net reinsurance ratio, you still end up with an ultra-strong underlying CR. And guess what, when a period of strong combined ratios has been delivered, the underlying reality is always better 😊 (and vice versa). I know, I've been in this business a few years. Profitability in the UK and in total will last longer. 

2. The growth runway is ultra-strong

If you consider the glass to be "half-empty", you would focus on a low renewal rate at 88%. If you think the glass is half-full, you would argue that the 6% growth in LCY is very strong. Add the biggest client in history (July 1st inception) with >80,000 vehicles, and you understand that Protector's world-leading cost ratio is almost impossible to compete against. That fleet is 4x the size of the biggest fleet in Scandinavia 💪.

Growth expectations will move north, and the growth runway looks beautiful with France and the new property segment in the UK gradually maturing. 

Congrats to the Protector team. You certainly are:

The Challenger

After summer we'll update our analysis, the target price will not move south ✌️

Next match is on Saturday, Norway will beat England, we are The Challenger 😎

Best regards,
David and Sverre

Lillestrøm, Norway

10.07.26

Disclaimer:
Hvaler Invest is a significant shareholder so you cannot trust us (or perhaps you can?)