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Sampo´s Operating Profit over one billion Euro in the Second Quarter
Press Release - 21 Aug 2001 at 12:00 PM
The Sampo Group comprises the parent company Sampo plc and subsidiaries, i.a. Sampo Bank plc, Mandatum Bank Plc, Mandatum Omaisuudenhoito Ltd, Sampo Fund Management Ltd, Sampo Life Insurance Company Limited, Sampo Insurance Company Limited, and Sampo Industrial Insurance Company Ltd.
The operating profit from banking and investment services amounted to EUR 158 million. Net income from financial operations rose mainly due to new companies by 10% and amounted to EUR 236 million. The growth slowed down due to the decrease in interest rates.
Following the market development in the field, the Group's money market funds have grown in popularity. The mutual fund market share increased at the beginning of the year to 15.4% (14.8% on 31 Dec. 2000). Domestic fund assets increased by approximately 10% to EUR 2.2 billion. Other assets under management of the Group increased clearly and totalled EUR 8.3 billion (EUR 5.2 billion) at the end of the review period.
The development of the life insurance volume was restrained by the uncertainty prevailing in the investment market, which was reflected in particular in the demand for unit-linked insurance at Sampo Life as well as in the field in general. The Group's life insurance premiums written fell by 26% at the beginning of the year and totalled EUR 386 million.
The operating profit from property & casualty insurance totalled EUR 493 million. The profitability of domestic direct insurance improved and its combined ratio was 104.5% (108%). The profitability of motor third party liability insurance and motor vehicle insurance improved considerably. The profitability of foreign direct insurance was still weak but an agreement on the sale of Sampo Industrial Insurance N.V. to Hampden Plc has been signed after the review period.
The Group's results include both in the review period and in the previous year's comparative period significant exceptional investment income. The comparative period includes return on Pohjola shares and the risk cumulation of the equity portfolio has been heavily reduced in the current year, in particular with respect to Nokia shares.
No significant equity sales have been projected for the remainder of the year. The results for the whole year are thus expected to be lower than in the previous year.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Peter Johansson, CFO, tel. +358 10 514 0010
The interim report is available in its entirety on the Internet at www.sampo.fi/interimreports