Surpriseless quarter for Sampo in challenging market conditions
Press release - 05/06/2009 at 09:45 AMSAMPO GROUP´S RESULTS FOR JANUARY – MARCH 2009
Sampo Group’s profit before taxes for the first quarter of 2009 amounted to EUR 169 million (142). Earnings per share amounted to EUR 0.23 (0.18). Earnings per share, including the change in the fair value reserve, were EUR -0.12 (-0.39).
Net asset value per share decreased to EUR 8.17 (8.28). The fair value reserve on the Group level was EUR -2,560 million (-2,364). Since the end of the reporting period net asset value (NAV) has improved significantly. The impact of appreciation of the values of Sampo Group’s investment assets net of tax was in excess of EUR 1.5 billion in April 2009.
Profit before taxes in P&C insurance increased to EUR 144 million (64) and the combined ratio was 94.2 per cent (94.0). Profit before taxes in life insurance was EUR 27 million (64). Mandatum Life’s domestic premium income grew by more than 20 per cent while the Finnish life insurance market in general contracted.
The segment ‘Holding’ reported a pre-tax loss of EUR -21 million (14) as a result of Sampo plc selling its Topdanmark shares to its fully-owned subsidiary If P&C Insurance Holding Ltd at a loss. The sales loss is eliminated in the consolidated accounts of Sampo Group.
- Sampo Group’s year-on-year first quarter result improved by 21 per cent, Kari Stadigh, Group CEO and President, says.
On 30 April 2009 Sampo Group owned 16.4 per cent of Nordea. Average price paid per share amounted to EUR 6.42 which corresponds to 1.25 times Nordea’s book value per share.
- Nordea underwriting and rights-issue was a great success for us. We were able to increase our Nordea holding by four percentage points at 0.5 times book value. This helped us to strengthen our position, Kari Stadigh says.
Group’s result for 2009 will largely depend on the proceeds of the P&C insurance operation. The reported profit for Sampo Group is expected to remain on a good level. The volatility of capital markets makes it impossible to estimate the return on investments at any level of accuracy.
The insurance technical result of If P&C is not expected to suffer in 2009 from the economic downturn. If P&C is expected to reach its long-term combined ratio target with a combined ratio of 91 - 94 per cent. Mandatum Life’s profit is to a very large extent dependent on investment markets.
Sampo Group had on 31 March 2009 approximately EUR 1.4 billion of excess capital calculated as the difference between group solvency capital and the economic capital required for the operations.
For more information, please contact:
Maria Silander, Press Officer, tel. +358 10 516 0031
An English-language telephone conference will be held at 4 pm Finnish time (2 pm UK time). Please call +44 (0) 20 7162 0025 (UK/European) or +1 334 323 6201 (North American). Password: SAMPO. The telephone conference can also be followed from a direct transmission on the Internet at www.sampo.com/ir.
Please find Sampo Group’s complete Interim Report January - March 2009, CEO’s review on first quarter developments and Supplementary Financial Information on the Internet at www.sampo.com/ir.
Mandatum Life has today published the 2008 Embedded Value Report, which is available at the same address.
Sampo will publish the second quarter 2009 interim report on 12 August 2009.
DISTRIBUTION:
The principal media
www.sampo.com
Sampo Group’s profit before taxes for the first quarter of 2009 amounted to EUR 169 million (142). Earnings per share amounted to EUR 0.23 (0.18). Earnings per share, including the change in the fair value reserve, were EUR -0.12 (-0.39).
Net asset value per share decreased to EUR 8.17 (8.28). The fair value reserve on the Group level was EUR -2,560 million (-2,364). Since the end of the reporting period net asset value (NAV) has improved significantly. The impact of appreciation of the values of Sampo Group’s investment assets net of tax was in excess of EUR 1.5 billion in April 2009.
Profit before taxes in P&C insurance increased to EUR 144 million (64) and the combined ratio was 94.2 per cent (94.0). Profit before taxes in life insurance was EUR 27 million (64). Mandatum Life’s domestic premium income grew by more than 20 per cent while the Finnish life insurance market in general contracted.
The segment ‘Holding’ reported a pre-tax loss of EUR -21 million (14) as a result of Sampo plc selling its Topdanmark shares to its fully-owned subsidiary If P&C Insurance Holding Ltd at a loss. The sales loss is eliminated in the consolidated accounts of Sampo Group.
- Sampo Group’s year-on-year first quarter result improved by 21 per cent, Kari Stadigh, Group CEO and President, says.
On 30 April 2009 Sampo Group owned 16.4 per cent of Nordea. Average price paid per share amounted to EUR 6.42 which corresponds to 1.25 times Nordea’s book value per share.
- Nordea underwriting and rights-issue was a great success for us. We were able to increase our Nordea holding by four percentage points at 0.5 times book value. This helped us to strengthen our position, Kari Stadigh says.
Group’s result for 2009 will largely depend on the proceeds of the P&C insurance operation. The reported profit for Sampo Group is expected to remain on a good level. The volatility of capital markets makes it impossible to estimate the return on investments at any level of accuracy.
The insurance technical result of If P&C is not expected to suffer in 2009 from the economic downturn. If P&C is expected to reach its long-term combined ratio target with a combined ratio of 91 - 94 per cent. Mandatum Life’s profit is to a very large extent dependent on investment markets.
Sampo Group had on 31 March 2009 approximately EUR 1.4 billion of excess capital calculated as the difference between group solvency capital and the economic capital required for the operations.
For more information, please contact:
Maria Silander, Press Officer, tel. +358 10 516 0031
An English-language telephone conference will be held at 4 pm Finnish time (2 pm UK time). Please call +44 (0) 20 7162 0025 (UK/European) or +1 334 323 6201 (North American). Password: SAMPO. The telephone conference can also be followed from a direct transmission on the Internet at www.sampo.com/ir.
Please find Sampo Group’s complete Interim Report January - March 2009, CEO’s review on first quarter developments and Supplementary Financial Information on the Internet at www.sampo.com/ir.
Mandatum Life has today published the 2008 Embedded Value Report, which is available at the same address.
Sampo will publish the second quarter 2009 interim report on 12 August 2009.
DISTRIBUTION:
The principal media
www.sampo.com