Mandatum Life’s result before taxes for the period January–September 2019 was EUR 212 million (385). The figure for the comparison period includes a lump-sum payment of EUR 197 million related to a co-operation agreement concluded between Mandatum Life and Danske Bank.
Comprehensive income after taxes, taking into account changes in market values, decreased to EUR 224 million (232). The return on equity was 25.9 per cent (22.5). The fair value reserve stood at EUR 406 million (352) at the end of September. The expense result in January–September 2019 was EUR 17.0 million (19.5), and the risk result was EUR 15.1 million (15.1).
Premiums written on the company’s own account increased to EUR 824 million (681). Premiums written on unit-linked insurance amounted to EUR 720 million (593), i.e. approximately 87 per cent of the total premiums written.
The return on Mandatum Life’s investment assets at fair value was 6.7 per cent (1.4) in January–September 2019, and the return on the segregated portfolio’s investment assets at fair value during the same period was 5.3 per cent (0.0).
Measured at market values, Mandatum Life’s investment assets at the end of September 2019 totalled EUR 5.7 billion (5.6), excluding the EUR 7.8 billion (7.0) in assets covering unit-linked technical provisions.
The investment assets covering Mandatum Life’s original with-profit liabilities on 30 September 2019 totalled EUR 4.7 billion (4.6) at market values. The value of the investments covering the segregated portfolio was EUR 1.0 billion (1.1).
Mandatum Life’s technical provisions stood at EUR 11.7 billion (11.2) at the end of September. Unit-linked technical provisions amounted to EUR 7.8 billion (7.0), representing 65 per cent (64) of the total technical provisions. The with-profit technical provisions decreased to EUR 4.0 billion (4.2) at the end of September 2019. The insurance portfolios with a high technical rate of interest (4.5 and 3.5 per cent) shrunk in January–September of 2019 by EUR 198 million to EUR 2.2 billion (2.4).
Overall, Mandatum Life has strengthened its technical provisions by EUR 227 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 the rest of 2019 and for 2020 and 2021 is 0.25 per cent. The discount rate for 2022 was lowered in the third quarter of 2019 by 0.75 percentage points to 2.50 per cent. The technical rate of interest on the segregated group pension insurance portfolio is 0.5 per cent.
On 18 September 2019, S&P gave Mandatum Life Insurance Company Ltd a credit rating of A+. In September, the company issued a capital loan of EUR 250 million. At the end of September 2019, Mandatum Life’s solvency ratio was 178 per cent (176% in 12/2018), and without the application of the transitional measures, it was 142 per cent (131% in 12/2018).
Mandatum Life’s key figures 1–9/2019
Premiums written, own account: EUR 824 million (681)
Result before taxes: EUR 212 million (385)
RoE: 25.9% (22.5)
Solvency ratio: 178% (176 in 12/2018), and without transitional measures 142% (131 in 12/2018)
Return on investments: 6.7% (1.4) and on the segregated portfolio 5.3% (0.0)
Average number of staff: 557 (529)
Mandatum Life’s result in its entirety is available at: www.sampo.com/result
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