Solid result and strong growth in H1
The figures in this section refer to Mandatum Group, unless otherwise indicated.
Mandatum Group’s result before taxes grew to EUR 141 million (39) in January–June 2021. Comprehensive income after taxes, taking into account changes in market values, rose to EUR 238 million (–90). The return on equity was 28.9 per cent (–13.3). Mandatum’s operational result (expense result and result from asset management) rose to EUR 17 million (10). The risk result was EUR 11 million (10).
Premiums written on the company’s own account increased to EUR 703 million (498). Premiums written on unit-linked insurance amounted to EUR 656 million (449).
The return on Mandatum’s investment assets at fair value was 6.8 per cent (–2.7) in January–June 2021, and the return on the segregated portfolio’s investment assets at fair value during the same period was 2.4 per cent (–2.3).
The investment assets covering Mandatum Life’s original with-profit liabilities at the end of June 2021 totalled EUR 4.6 billion (4.4) at market values. The value of the investments covering the segregated portfolio was EUR 0.8 billion (1.0).
Mandatum’s unit-linked technical provisions and other customer assets under management increased by EUR 1.2 billion to EUR 10.4 billion (9.2) at the end of June thanks to approximately EUR 400 million in net cash flows and positive market performance. The with-profit technical provisions decreased according to the Q2 plan, and amounted to EUR 3.3 billion (3.5) at the end of June 2021. The insurance portfolios with a high technical rate of interest (4.5 and 3.5 per cent) dwindled by EUR 97 million to EUR 1.8 billion.
Overall, Mandatum Life has strengthened its technical provisions by EUR 220 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. Mandatum Life’s discount rate for 2024 was lowered in the first quarter to 1.5 per cent, with a EUR 31 million negative impact on profit or loss. In Q2 the discount rate for 2024 was lowered further to 1.0 per cent, with a EUR 8 million negative impact on profit or loss. The technical rate of interest on the segregated group pension insurance portfolio is 0.0 per cent.
At the end of June 2021, Mandatum Life’s solvency ratio was 209 per cent (188% in 12/2020), and without the application of the transitional measures, it was 182 per cent (159% in 12/2020).
Statement by CEO Petri Niemisvirta:
“Mandatum achieved an excellent result and dynamic growth in the first quarter. Our net cash flows’ development was extremely positive which, together with a favourable investment market, increased unit-linked insurance liabilities and other customer assets under management to more than EUR 10 billion.
Growth occurred broadly across all segments, from institutional clients to private customers. This suggests that customers have embraced our unique co-investment approach.
Our work to achieve future growth also manifested in a number of ways during H1. Mandatum Group’s structural arrangements, in which Sampo Group’s asset management will be consolidated in Mandatum Asset Management, will reinforce our co-investment strategy even further. Additionally, we acquired Nordhaven’s equity-based incentive advisory business, and Mandatum Asset Management announced on July 1st that it had signed an agreement to buy Trevian’s real estate fund business.”
Mandatum Group’s key figures 1–6/2021
Premiums written, own account: EUR 703 million (498)
Result before taxes: EUR 141 million (39)
RoE: 28.9% (–13.3)
Solvency ratio: 209% (188% in 12/2020), and without transitional measures 182% (159% in 12/2020)
Return on investments: 6.8% (–2.7) and on the segregated portfolio 2.4% (–2.3)
Average number of staff: 563 (581)
Mandatum’s result in its entirety is available at: www.sampo.com/result
Mandatum Group
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.
For more information, please contact:
Petri Niemisvirta, CEO: petri.niemisvirta@mandatumlife.fi, tel. +358 10 516 7200
Jukka Kurki, CFO: jukka.kurki@mandatumlife.fi, tel. +358 50 424 6630
Niina Riihelä, Vice President, Marketing and Communications: niina.riihela@mandatumlife.fi, tel. +358 40 728 1548