Mandatum Life's January–March result before taxes increased to EUR 39 million (37). The return on Mandatum Life's investment assets covering the original with-profit technical provisions at fair value was 4.2 per cent (1.1), and the return on investment assets covering the segregated group pension insurance portfolio transferred from Suomi Mutual was 3.2 per cent. Comprehensive income after taxes, calculated at the fair value of the investment assets, rose to EUR 171 million (18). The increase was due to the significantly higher return on the investment assets than in the previous year. The result was burdened by the discount rate reserve, which was increased in response to the low interest rate level and totalled EUR 142 million (135) at the end of March. The figures do not include the EUR 238 million increase in the reserve for decreased discount rates related to the segregated portfolio.
Mandatum Life Group's expense result increased to EUR 5.2 million (4.2).
Premiums written on Mandatum Life Group's own account rose to a record EUR 377 million (244). The Group's market share in Finland grew to 18.4 per cent (15.8). Unit-linked premiums written also reached a quarterly record high of EUR 305 million (203).
Mandatum Life Group's solvency position in accordance with the Solvency I regulatory framework strengthened further, and the Group's solvency ratio was 26.3 per cent (22.9). The low level of market interest rates will make the upcoming Solvency II requirements challenging for the company. Mandatum Life has applied for approval from the Financial Supervisory Authority to apply the transitional provision concerning technical provisions as allowed by the EU directive.
The unit-linked technical provisions reached their highest level ever at the end of March 2015, amounting to EUR 5.9 billion (5.3). The technical provisions include the excellent investment returns on customers' unit-linked insurance savings; the high returns boosted the technical provisions by EUR 466 million (40).
The with-profit technical provisions amounted to EUR 5.1 billion (5.1), consisting of EUR 3.8 billion (3.8) from the original with-profit insurance portfolio and EUR 1.2 billion (1.2) from the so-called segregated insurance portfolio transferred from Suomi Mutual. The insurance portfolios, which have a high technical rate of interest (3.5 and 4.5 per cent), continued to shrink as expected. The decline in January–March 2015 amounted to EUR 54 million.
Key figures Q1/2015
Premiums written, own account: €377 million (244)
Profit before taxes: €39 million (37)
ROE: 50.3% (6.1)
Expense ratio: 99.2% (101.5)
Solvency ratio: 26.3% (Dec/2014: 22.9)
Return on investments: 4.2% (1.1) and on the segregated portfolio 3.2% (-)
Average number of staff: 518 (515)
For a full and detailed account of Mandatum Life's result, please see: www.sampo.com/result
For more information, please contact:
Petri Niemisvirta, Managing Director, petri.niemisvirta@mandatumlife.fi, tel. +358 (0) 10 516 7200
Jukka Kurki, CFO, jukka.kurki@mandatumlife.fi, tel. +358 (0) 10 516 7203
Laura Helaniemi, Content Director, laura.helaniemi@mandatumlife.fi, tel. +358 (0) 40 531 5255