Mandatum Life’s result 1–3/2019

Mandatum Life’s premiums written and result before taxes remained on a par with the comparison period.

Mandatum Life’s result before taxes in January–March 2019 was EUR 72 million (73). Comprehensive income after taxes, taking into account changes in market values, grew to EUR 113 million (–19). The return on equity was 37.6 per cent (–5.8). The fair value reserve increased to EUR 407 million (352) in the first quarter. The expense result during the period under review was EUR 5 million (7), and the risk result was EUR 5 million (5).

Premiums written on the company’s own account decreased to EUR 238 million (243). Premiums written on unit-linked insurance amounted to EUR 192 million (206).

The return on Mandatum Life’s investment assets at fair values was 4.0 per cent (–0.7) in January–March 2019, and during the same period, the return on the segregated portfolio’s investment assets at fair values was 2.7 per cent (–0.7).

Measured at market values, Mandatum Life’s investment assets at the end of March totalled EUR 5.5 billion (5.6), excluding the EUR 7.4 billion (7.0) in assets covering unit-linked technical provisions.

The investment assets covering Mandatum Life’s original with-profit liabilities on 31 March 2019 totalled EUR 4.5 billion (4.6) at market values. The value of the investments covering the segregated portfolio was EUR 1.0 billion (1.0).

Mandatum Life’s technical provisions stood at EUR 11.6 billion (11.2) at the end of March. Unit-linked technical provisions amounted to EUR 7.4 billion (7.0), representing 64 per cent (62) of the total technical provisions. At the end of the first quarter of 2019, the with-profit technical provisions amounted to EUR 4.2 billion (4.2). The insurance portfolios with a high technical rate of interest (4.5 and 3.5 per cent) decreased by EUR 74 million to EUR 2.4 billion during January–March.

Overall, Mandatum Life has strengthened its technical provisions by EUR 258 million (232) in response to the low interest rate level. The figures do not include items related to the segregated portfolio. The discount rate for 2019, 2020 and 2021 is 0.25 per cent. The technical rate of interest on the segregated group pension insurance portfolio is 0.50 per cent.

At the end of March, Mandatum Life’s solvency ratio was 161 per cent (176% in 12/2018), and without the application of the transitional measures, it was 124 per cent (136% in 12/2018).