Excellent result, solvency ratio strengthened further
Mandatum Group’s result before taxes grew to EUR 201 million (100) in January–September 2021. Comprehensive income after taxes, taking into account changes in market values, rose to EUR 266 million (53). The return on equity was 21.2 per cent (-5.0). Mandatum’s operational result (expense result and asset management result) increased to EUR 29 million (19) in January–September. The risk result was EUR 20 million (16).
Premiums written on the company’s own account increased to EUR 960 million (670). Premiums written on unit-linked insurance amounted to EUR 888 million (602).
The return on Mandatum Life’s investment assets at fair value was 7.3 per cent (0.8) in January–September 2021, and the return on the segregated portfolio’s investment assets at fair value during the same period was 2.7 per cent (-0.5).
Unit-linked and other client assets under Mandatum’s management increased by 16 per cent to EUR 10.6 billion (9.2) at the end of September. Investment returns generated roughly two thirds of the growth in assets under management, and net cash flow the remaining approximately EUR 500 million.
The with-profit technical provisions decreased according to plan in January–September and amounted to EUR 3.2 billion (3.5) at the end of the period. The insurance portfolios with a high technical rate of interest (4.5 and 3.5 per cent) shrunk by EUR 160 million to EUR 1.7 billion in January–September.
Overall, Mandatum Life has strengthened its technical provisions by EUR 207 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. The discount rate for 2024 is 0.5 per cent. The technical rate of interest on the segregated group pension insurance portfolio is 0.0 per cent.
At the end of September 2021, Mandatum Life’s solvency ratio was 214 per cent (188% in 12/2020), and without the application of the transitional measures, it was 188 per cent (159% in 12/2020).
The figures in this section refer to Mandatum Group, unless otherwise indicated.
Mandatum Group’s key figures 1–9/2021
Premiums written, own account: EUR 960 million (670)
Result before taxes: EUR 201 million (100)
RoE: 21.2% (-5.0)
Solvency ratio: 214% (188% in 12/2020), and without transitional measures 188% (159% in 12/2020)
Return on investments: 7.3% (0.8) and on the segregated portfolio 2.7% (-0.5)
Average number of staff: 575 (579)
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 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.
Additional information:
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