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Sampo Group reports strong results driven by excellent performance of the P&C operations

Sampo Group reports a profit before taxes for EUR 1,541 million for 2019 compared to EUR 2,094 million a year earlier. Favourable development in equity markets was reflected into the total comprehensive income for 2019, which rose to EUR 1,565 million (1,034) taking changes in the market value of assets into account.

– Sampo had a successful year 2019, despite some challenges. In spite of the low interest rate environment and some headwinds in our banking associate Nordea, the Group performed well in most of its businesses with an EPS amounting to EUR 2.04 per share, says Torbjörn Magnusson, Group CEO and President.

Profit before taxes for If rose to EUR 884 million (848) and Sampo’s share of Topdanmark’s profit to EUR 238 million (199). Profit before taxes for Mandatum amounted to EUR 280 million (450). Sampo’s share of Nordea’s net profit for 2019 amounted to EUR 290 million (625). The profit for Sampo Group includes a loss of EUR 155 million incurred when distributing Nordea shares as dividends in 2019. The profit for the comparison year includes a positive non-recurring item of EUR 197 million from the co-operation agreement between Danske Bank and Mandatum Life.

– Our P&C operations, the biggest part of the group, had a really excellent year. The operations continued to excel at underwriting at the same time as achieving very strong organic growth, Magnusson says.

The combined ratio for If improved further to 84.5 per cent (85.2) and for Topdanmark to 82.1 per cent (82.3) in 2019. For If, the premiums grew strongly in all business areas in the Nordics, the growth amounting to 5.7 per cent with fixed currencies.

Dividend

Sampo’s target going forward is to maintain an attractive dividend. According to Sampo’s new dividend policy, total annual dividends paid will be at least 70 per cent of Group's net profit for the year (excluding extraordinary items). In addition, share buy-backs can be used to complement the cash dividend.

Sampo plc’s Board of Directors proposes to the Annual General Meeting a dividend of EUR 2.20 per share (2.85).

Outlook for 2020

Sampo Group’s business areas are expected to report good operating results for 2020.

However, the marked-to-market results are, particularly in life insurance, highly dependent on capital market developments. The continuing low interest rate level also creates a challenging environment for reinvestment in fixed income instruments.

If is expected to reach a combined ratio of 85–89 per cent in 2020.

With regard to Topdanmark reference is made to the profit forecast model that the company publishes quarterly.

Nordea’s contribution to the Group’s profit is expected to be significant.


Sampo Group's Full-Year Financial Report 2019 and Supplementary Financial Information Package are available at
www.sampo.com/result.

A press conference will be held in English on 6 February at 12:30 pm Finnish time (10:30 am UK time) at Symposion, Kämp, (2nd floor), Pohjoisesplanadi 29, Helsinki. To attend the press conference, please contact Maria Silander via e-mail, maria.silander@sampo.fi.

The press conference can be followed as a live webcast at www.sampo.com/result.

An English-language conference call will be arranged at 4 pm Finnish time (2 pm UK time). Please call tel. +1 855 857 0686, +44 333 300 0804, +46 856 642 651, or +358 (0)9 8171 0310. The conference code is 75249242#.

The conference call can also be followed live at www.sampo.com/result.

 

 

For more information, please contact:

Maria Silander, Communications Manager, Media Relations, tel. +358 10 516 0031

 

Distribution:
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www.sampo.com