Excellent results in Sampo's insurance businesses

SAMPO PLC                 PRESS RELEASE         7 November 2018 at 9:35 am

Excellent results in Sampo's insurance businesses

Sampo Group's insurance companies continued their strong performance, which compensated for tame banking results. Profit before taxes for January-September 2018 increased to EUR 1,643 million from 1,340 when excluding the non-recurring profit item of EUR 706 million from the comparison figure.

- Results were strong in Sampo's all insurance companies. Both If and Topdanmark reported excellent combined ratio and growth in the number of customers in all markets. In addition, Mandatum Life's unit-linked technical reserves increased to record-high level, says Kari Stadigh, Group CEO and President.

Key figures for January-September 2018

• Sampo Group's profit before taxes for January-September 2018 increased to EUR 1,643 (1,340) when adjusting for the non-recurring profit item of EUR 706 million resulting from the change of Topdanmark's accounting status from an associated company to a subsidiary.
• Earnings per share amounted to 2.38 (3.35). Marked-to-market earnings per share were EUR 1.92 (3.51).
• Return on equity (RoE) was 11.2 per cent (21.4). Net asset value per share on 30 September 2018 amounted to 24.13 (25.37).
• Profit before taxes for segment If was EUR 626 million (603). Combined ratio for January-September 2018 was 85.8 per cent (85.9).
• Profit before taxes for segment Topdanmark increased to EUR 170 million (90) in Sampo Group's consolidated accounts when excluding the non-recurring profit item of EUR 706 million from the comparison figure. Combined ratio was 82.7 per cent.
• Sampo's share of Nordea's net profit amounted to EUR 527 million (491).
• Mandatum segment's profit before taxes increased to EUR 385 million (180).

Outlook for the rest of 2018

Sampo Group's business areas are expected to report good operating results for 2018.

However, the mark-to-market results are, particularly in Mandatum Life, highly dependent on capital market developments. The continuing low interest rate level also creates a challenging environment for reinvestment in fixed income instruments.

If P&C is expected to reach a combined ratio of 85-87 per cent for the full-year 2018.