Overview and business model
Sampo is the leading P&C insurer in the Nordic region, and the only insurer to offer services across all Nordic countries, customer segments and products. The Group also offers P&C insurance in digital channels in the UK and the Baltics, and it has a presence in the Finnish life insurance market.
Sampo’s largest customer group is private individuals, which in total represented EUR 4.8 billion, or 63 per cent, of the EUR 7.6 billion of P&C insurance gross premiums written by Sampo in 2021. The Nordic markets accounted for 76 per cent of private premium income, with the rest being attributable mainly to the UK market. Through If P&C, Sampo benefits from a broad range of distribution capabilities in the Nordic private market, including a strong digital platform and a market-leading partnership network with car dealerships. The largest product segments for private individuals are motor and home insurance, but Sampo also offers other insurance covers, such as travel insurance and other personal accident covers. Sampo mainly offers private P&C insurance through If but it also utilises Topdanmark, of which it owns 48 per cent, in Denmark, and Hastings in the UK.
Sampo’s second largest business area is commercial insurance, with EUR 2.0 billion of premium income in 2021, representing 26 per cent of the total premium income. The largest market within the commercial segment is Denmark, which is then followed by Norway, Finland, and Sweden. More than half of Sampo’s Nordic commercial lines business is written direct, although brokers also play an important role in the market. While property and motor insurance risks also dominate in the commercial business area, certain liability covers are also prominent.
Sampo is a leading provider of industrial lines P&C insurance in the Nordic region through If P&C. The industrial lines business area serves companies with approximately EUR 50 million turnover and more than 500 employees. In 2021, it wrote EUR 0.7 billion of industrial lines premiums (If BA Industrial), representing 10 per cent of the Group’s total premiums. If benefits from long-standing relationships with many Nordic industrial lines customers, allowing it to work closely with these and to add value via its strong risk management capabilities. Sweden is the largest industrial lines market for Sampo.
In the UK P&C insurance market, Sampo operates through the digital insurer Hastings. Hastings has a unique business model that leverages its digital capabilities in pricing, fraud detection and claims data analytics to compete in the price comparison channel. Although Hastings is one of the major motor insurance providers in the UK, it retains substantial growth potential in the product, while its presence in the home insurance market is small but growing.
Life insurance and asset management
Outside of P&C insurance, Sampo also offers life insurance and asset management services through Mandatum, which operates across the private and corporate customer segments. Mandatum’s provides a broad offering, including advisory services, savings, retirement products, and asset management. From an economic perspective, the majority of Mandatum’s profits are driven by the run-off of its legacy with-profit liabilities, which supports Sampo with significant cash flow.
Profit before taxes and gross written premiums
Sampo Group 2021
P&C insurance accounted for 85 per cent of both Sampo Group's profit perfore taxes and gross written premiums in 2021.