Mandatum Life's result before taxes in January–September was EUR 103 million (98). The return on investment assets at fair value was 5.2 per cent (7.5). Comprehensive income from investments at fair value amounted to EUR 137 million (218) after taxes. Mandatum Life Group's expense result rose to EUR 8 million (4). The positive trend in the expense result can be attributed to the efficiency-boosting measures introduced early in the year, as well as to the simultaneous increase in fee and commission income alongside the growth in unit-linked reserves. This favourable development is expected to continue in the fourth quarter of the year. The company's risk result increased to EUR 17 million (14). For 2013 on the whole, no significant change in the risk result is expected in relation to the level of the previous year.
The notable growth in Mandatum Life Group's premiums written continued, with a 16 per cent increase to EUR 788 million (678). Premiums written in the Baltic countries totalled EUR 21 million (21). Mandatum Life's overall market share of direct business in Finland stood at 19.6 per cent (25.4) at the end of September, and its market share in unit-linked insurance was 19.7 per cent (27.5).
Mandatum Life's solvency position remained strong. Mandatum Life Group's solvency ratio as of 30 September 2013 was 28.5 per cent (27.7). The parent company's solvency margin is more than six times the required minimum. Mandatum Life's capital requirement is highly dependent on the with-profit technical reserves and the investment assets covering the reserves. Due to the structure of the portfolio, the with-profit technical reserves will shrink relatively significantly in the coming years, which will free up solvency capital.
Mandatum Life Group's technical reserves amounted to EUR 8.4 billion (7.9). Unit-linked reserves reached a record high and stood at EUR 4.4 billion (3.8). The rise in unit-linked reserves can be attributed not only to the increase in premiums written, but also to the average increase of more than 4 per cent in the value of the investment objects selected by customers during the first three quarters of the year. The persistently shrinking with-profit technical reserves accounted for EUR 4.0 billion (4.1) of the total technical reserves. The with-profit portfolio is reduced in particular by pensions, which in January–September were paid out in the amount of nearly EUR 250 million. In response to the low interest rate level, the with-profit technical reserves include an increase of EUR 134 million (118) in the reserves for decreased discount rates.
Key figures 1–9/2013
Premiums written, own account: €788 million (678)
Profit before taxes: €103 million (98)
Return on equity: 15.7% (29.9)
Expense ratio: 111.4% (115.5)
Solvency ratio: 28.5% (12/2012: 27.7)
Return on investments: 5.2% (7.5)
Average number of staff: 547 (541)
Mandatum Life's result in its entirety is available at www.sampo.com/result
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