Clearly positive net cash flow despite a challenging investment market.
Mandatum Group’s profit before taxes in January–September 2022 was EUR 183 million (201). Comprehensive income after taxes, taking into account changes in market values, was EUR -320 million (266). The return on equity (RoE) was -28.0 per cent (21.2). Mandatum’s operational result (Mandatum Life’s expense result and Mandatum Asset Management’s result) rose to EUR 39 million (29). The risk result was EUR 24 million (20).
The return on Mandatum Life’s investment assets at fair value was -10.7 per cent (7.3), and the return on the segregated portfolio’s investment assets at fair value during the same period was -8.1 per cent (2.7).
Unit-linked and other client assets under Mandatum’s management fell 9 per cent to EUR 10.1 billion (11.1) at the end of September. The decrease is a consequence of a drop in market values, while the net cash flow of client assets was, however, roughly EUR 300 million positive. Moreover, unit-linked technical provisions and assets under management decreased by close to EUR 150 million as a result of the sale of the Baltic business.
The with-profit technical provisions decreased according to plan during the period and amounted to EUR 3.0 billion (3.2) at the end of September. The insurance portfolios with a high technical rate of interest (4.5 and 3.5 per cent) shrunk by EUR 122 million to EUR 1.6 billion (1.7) during the period.
The reserves intended to strengthen the technical provisions fell to EUR 231 million (274). No new reserves were added in January–September 2022. The discount rate is 0.25 per cent for 2022–2025, and 0.75 per cent for 2026. The technical rate of interest on the segregated group pension insurance portfolio is 0.0 per cent.
In spite of the negative comprehensive income, Mandatum Life’s solvency ratio rose to the highest level in the company’s history, i.e. from 190 per cent at the end of 2021 and 255 per cent at the end of June 2022 to 282 per cent. This is a result of both a strong rise in interest rates, which increases the company’s own funds, and the lowering of capital requirements for equity risk.
Mandatum Group’s key figures 1–9/2022
Premiums written, own account: EUR 1,029 million (960)
Result before taxes: EUR 183 million (201)
RoE: -28.0% (21.2)
Solvency ratio: 282% (190 12/2021, 255 6/2022)
Return on investments: -10.7% (7.3) and on the segregated portfolio -8.1% (2.7)
Average number of staff: 629 (575)
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 Limited (Mandatum Life) and Mandatum Asset Management Ltd. Mandatum Life offers services in wealth management, rewards and compensation, retirement plans and personal insurance to private and corporate customers. Mandatum Asset Management engages in fund business and provides Sampo Group with discretionary and consultative wealth management and asset management services.
Additional information:
Petri Niemisvirta, CEO, Mandatum Group: petri.niemisvirta@mandatumlife.fi, tel. +358 10 516 7200
Jukka Kurki, CFO: jukka.kurki@mandatumlife.fi, tel. +358 50 424 6630
Niina Riihelä, Senior Vice President, Marketing and Communications: niina.riihela@mandatumlife.fi, tel. +358 40 728 1548
*Edited on 2nd November 2022 at 14.20: The release stated that unit-linked and other client assets under Mandatum’s management had fallen by 1.9 per cent to EUR 10.1 billion (11.1) at the end of September. The correct percentage, 9 per cent, has been added to the release.