Good result and strong solvency position in the first quarter.
Mandatum Group’s result before taxes grew to EUR 76 million (–16) in January–March 2021. Comprehensive income after taxes, taking into account changes in market values, amounted to EUR 108 million (–323). The return on equity was 27.2 per cent (–105.2). The expense result increased to EUR 8 million (6) in January–March. The risk result was EUR 6 million (5).
Premiums written on the Group’s own account amounted to EUR 269 million (287). Premiums written on unit-linked insurance amounted to EUR 201 million (224).
The return on Mandatum Life’s investment assets at fair value was 3.5 per cent (–8.7) in January–March 2021, and the return on the segregated portfolio’s investment assets at fair value during the same period was 1.0 per cent (–6.6).
The investment assets covering Mandatum Life’s original with-profit liabilities at the end of March 2021 totalled EUR 4.5 billion (4.2) at market values. The value of the investments covering the segregated portfolio was EUR 0.9 billion (0.9).
Mandatum Life’s technical provisions stood at EUR 12.7 billion (12.3) at the end of March 2021. Unit-linked technical provisions amounted to EUR 9.2 billion (8.8), representing 72 per cent (72) of the total technical provisions. The with-profit technical provisions decreased according to plan in January–March, and amounted to EUR 3.4 billion (3.5) at the end of the quarter. The insurance portfolios with a high technical rate of interest (4.5 and 3.5 per cent) decreased by EUR 50 million to EUR 1.8 billion (1.9) by the end of March 2021.
Overall, Mandatum Life has strengthened its technical provisions by EUR 232 million (218) in response to the low interest rate level. The figure does not include items related to the segregated portfolio. The discount rate for the rest of 2021 and for 2022 and 2023 is 0.25 per cent, and for 2024 it is 1.5 per cent. The technical rate of interest on the segregated group pension insurance portfolio is 0.0 per cent, and EUR 221 million (232) was reserved for lowering the discount rate.
At the end of March 2021, Mandatum Life’s solvency ratio was 200 per cent (188% in 12/2020), and without the application of the transitional measures, it was 173 per cent (159% in 12/2020).
Mandatum Group’s key figures 1–3/2021
Premiums written, own account: EUR 269 million (287)
Result before taxes: EUR 76 million (–16)
RoE: 27.2% (–105.2)
Solvency ratio: 200% (188% in 12/2020), and without transitional measures 173% (159% in 12/2020)
Return on investments: 3.5% (–8.7) and on the segregated portfolio 1.0% (–6.6)
Average number of staff: 563 (578)
Mandatum’s result in its entirety is available at: www.sampo.com/result
Mandatum Holding Ltd’s subsidiaries are Mandatum Life Insurance Company and Mandatum Asset Management Ltd. Mandatum Life is a leading life insurance company in Finland and also operates in the Baltic countries. Mandatum Asset Management manages Mandatum Life’s unit-linked assets and offers its customers full mandate wealth management services and consultative wealth management.
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