Mandatum Life Group's profit before taxes totalled EUR 69 million (52) for the first six months of 2010. Profit at market values after tax came to EUR 100 million (166). The company's strong profit is reflected in improved solvency in the first part of the year. At the end of June, the solvency ratio was 20.7 per cent, up from 18.5 per cent at the turn of the year. Thus the parent company's solvency margin (EUR 1,051 million) exceeds the officially required minimum by around 4.6 times.
Mandatum Life Group's premiums written continued to increase intensely in January–June, coming to EUR 603 million (332). Premiums written for unit-linked products increased by 80 per cent, from EUR 241 million to EUR 434 million. For the Baltic subsidiary, premiums written, which mainly comprised unit-linked products, grew to EUR 33 million (18).
Outstanding return on investment for customers, a substantial amount paid out on claims
The average return on investment instruments selected by customers for unit-linked products came to approximately four per cent in the reporting period. Unit-linked insurance savings increased by some EUR 310 million, to EUR 2,666 million.
Customers' with-profit insurance savings were credited with guaranteed interest and customer bonuses for a total of some EUR 90 million in January–June.
In the first part of the year, Mandatum Life Group paid out approximately EUR 390 million in claims, of which pensions accounted for over EUR 150 million. In all, claims were paid out to some 70,000 customers.
At EUR 7,135 million, technical provisions were the highest ever in the company's history.
Higher market share
In Finland, Mandatum Life's overall market share in direct business was 23.1 per cent (23.4) and 30.2 per cent (28.3) in unit-linked life insurance. With twice-entered premiums written eliminated from life insurance business statistics, Mandatum Life's market share came to 26.0 per cent. This elimination has no impact on unit-linked insurance market shares.
In the Baltic countries, our market share grew to 23 per cent (14).
Key figures H1/2010:
Total premiums written: EUR 603 million (332)
Profit before taxes: EUR 69 million (52)
Return on equity: 25.0% (95.7%)
Expense ratio: 119.8% (121.4%)
Solvency ratio: 20.7% (12/2009: 18.5%)
Average number of staff: 463 (465)
For a full and detailed account of Mandatum Life's result, see http://www.sampo.com/ir/figures/financial-reports/financial-reporting-2010
Petri Niemisvirta, Managing Director: petri.niemisvirta[at]mandatumlife.fi, tel. +358 10 516 7200
Jukka Kurki, CFO: jukka.kurki[at]mandatumlife.fi, tel. +358 50 424 6630
Niina Riihelä, Vice President - Marketing and Communications: niina.riihela[at]mandatumlife.fi, tel. +358 40 728 1548