Early 2012 has been highly profitable for Mandatum Life thanks to favourable investment activities and an increase in premium income. Premium income on Mandatum Life's own account grew 20 per cent in January-March 2012, totalling EUR 260 million (216). The growth is attributed to both the successful marketing of Mandatum Life's wealth management solutions and sales made through Sampo Bank. Mandatum Life's market share in its priority area of unit-linked investments rose to 30.1 per cent (25.0). As a result, the company's total market share rose to 27.0 per cent (22.2). In the Baltic countries, however, premium income decreased considerably to EUR 5 million (12).
Mandatum Life's profit before taxes for January-March decreased to EUR 33 million (44). Return on investments at fair value was 5.2 per cent (1.4), which raised the comprehensive income at fair value to EUR 172 million (13). Investment assets, excluding those covering unit-linked technical provisions, amounted to EUR 5,500 million (5,400).
Mandatum Life's solvency ratio continued to improve as a result of the good fair value return. At the end of the quarter, the company's solvency ratio was 24.8% (20.9), with the parent company's solvency margin still at 5.5 times the set minimum.
Mandatum Life Group's total technical provisions were EUR 7,600 million (7,300). Unit-linked technical provisions rose to 3,400 million (3,100), the highest in the company's history. The growth is due to an increase in premium income and the healthy, roughly 6 per cent return on customer-chosen investments. Technical provisions related to with-profit products dropped slightly to EUR 4,200 million (4,200). The reserve for decreased discount rates, which is included in the technical provisions in response to low interest rates, was increased to EUR 117 million.
Key figures for Q1/2012
Total premiums written, on own account: EUR 260 million (216)
Profit before taxes: EUR 33 million (44)
Return on equity: 72.3% (5.0)
Expense ratio: 120.8% (121.8)
Solvency ratio: 24.8% (12/2011: 20.9)
Return on investments: 5.2% (1.4)
Average number of staff: 530 (503)
For a full and detailed account of Mandatum Life's result, please see www.sampo.com.
For more information, please contact:
Mr. Petri Niemisvirta, CEO: petri.niemisvirta@mandatumlife.fi, tel. +358-(0)10-516 7200
Jukka Kurki, CFO: jukka.kurki@mandatumlife.fi, tel. +358-(0)50-424 6630
Niina Riihelä, Vice President, Marketing and Communications: niina.riihela@mandatumlife.fi, tel. +358-(0)40-728 1548