SAMPO, 1H2017: The Baltic P&C insurance business provided about 8% of the group's profit before taxes

17 August 2017 — Daniela GHETU
Sampo Group's profit before taxes for 1H2017 amounted to EUR 865 million, aprox. 3% less y-o-y. Sampo is the parent group of If P&C Insurance, one of the major players in the Baltic insurance market.

The total comprehensive income for the period, taking changes in the market value of assets into account, rose to EUR 821 million from EUR 607 million on the comparison period.

1H 2017 combined ratio was the best ever combined ratio for the first six months of a year, when adjusted for one-offs, says Kari Stadigh, Group CEO and President.

Combined ratio for P&C insurance for January-June 2017 was 86.5 per cent. The comparison figure, excluding the release from the Swedish MTPL reserves in the first quarter of 2016, was 87.1 per cent. Including the one-offs, the combined ratio for the comparison period was 83.7 per cent.

Other key figures for January-June 2017
  • Earnings per share for Sampo Group amounted to EUR 1.34 (1.40). Mark-to-market earnings per share were EUR 1.47 (1.08).
  • The return on equity (RoE) for the Group was 14.1 per cent (10.9).
  • Net asset value per share on 30 June 2017 amounted to EUR 25.60 (24.86).
  • Profit before taxes for the P&C insurance segment was EUR 453 million (436).
  • Sampo's share of Nordea's net profit for the first half of 2017 was EUR 322 million (364).
  • Profit before taxes in life insurance operations rose to EUR 116 million (103).
If P&C results in the Baltic region

If P&C is the leading property and casualty insurance company in the Nordic region, whith insurance operations that also encompass the Baltic countrties. The P&C insurance group's parent company, Of P&C Insurance Holding Ltd is located in Sweden, and the If subsidiaries and branches provide insurance solutions and services in Finland, Sweden, Norway, Denmark and the Baltic countries.

Gross premiums written by If P&C in the three Baltic countries totaled EUR 71.6 million, 3% up y-o-y. The Latvian branch underwrote premiums for EUR 15 million (EUR 16 million in 1H2016). The combined ratio for 1H2017 in the Baltic states was of 90% (90.7% in 1H2016), while the loss ratio was 65.3%, the same as in 1H2016 and the expense ratio was 24.8% (25.4% in 1H2016). If P&C Insurance AS (If) in Estonia and its Latvian and Lithuanian branches earned a profit of EUR 7.2 million, 7% up y-o-y.

Outlook for 2017

Sampo Group's business areas are expected to report good operating results for 2017.

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

The P&C insurance operations are expected to reach a combined ratio of 86 - 89% for the full-year 2017.

Nordea's contribution to the Group's profit is expected to be significant.

Sampo Group's Half-Year Financial Report for January-June 2017 and the Supplementary Financial Information Package are available at www.sampo.com/result.

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