Mandatum Life's January–June result before taxes grew to EUR 81 million (73). The return on Mandatum Life's investment assets covering the original with-profit technical provisions at fair value was 5.9 per cent (3.9), and the return on investment assets covering the segregated group pension insurance portfolio transferred from Suomi Mutual was 3.0 per cent.
Comprehensive income from investments at fair value after taxes amounted to EUR 144 million (113). The result was burdened by the discount rate reserve, which was increased by close to EUR 100 million in the April–June period in response to the low interest rate level; as a result, the discount rate reserve amounted to EUR 238 million (135) at the end of June. The figure does not include the EUR 235 million increase in the discount rate reserve related to the segregated portfolio.
Mandatum Life Group's expense result increased to EUR 13.7 million (8.1).
Premiums written on the Group's own account reached a record high EUR 676 million (584). The share of premium income from unit-linked policies was EUR 576 million (491). The market share in Finland was 18.0 per cent (18.6).
Mandatum Life Group's solvency position in accordance with the Solvency I regulatory framework remained strong, and at the end of June the Group's solvency ratio was 25.0 per cent (22.9). The new solvency regulations (Solvency II) will enter into force on 1 January 2016. The Group's assets following the application of the Solvency II transitional provisions are estimated at EUR 2,095 million, thus exceeding the EUR 1,350 million capital requirement, and the solvency ratio is a strong 155 per cent. Without the transitional provision applicable to the technical provisions, the Group's assets would be EUR 1,542 million, in which case the solvency ratio would be 114 per cent. On 11 August 2015, the Financial Supervisory Authority granted Mandatum Life approval to use the transitional provisions.
Unit-linked technical provisions amounted to EUR 5.8 billion (5.3) at the end of June 2015. The increase in technical provisions is attributed to, in addition to premium income, the more than six per cent average return on investment objects selected by clients.
The with-profit technical provisions amounted to EUR 5.1 billion (5.1), consisting of EUR 3.9 billion (3.8) from the original with-profit insurance portfolio, including the increase in the discount rate reserve, and EUR 1.2 billion (1.2) from the so-called segregated insurance portfolio transferred from Suomi Mutual.
Key figures H1/2015
Premiums written, own account: €676 million (584)
Profit before taxes: €81 million (73)
ROE: 21.8% (17.9)
Expense ratio: 99.8% (105.9)
Solvency ratio: 25.0% (Dec/2014: 22.9)
Return on investments: 5.9% (3.9) and on the segregated portfolio 3.0% (-)
Average number of staff: 520 (522)
For a full and detailed account of Mandatum Life's result, please see: www.sampo.com/result
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