SAMPO OYJ
TIDMSAMPO
SAMPO PLC HALF-YEAR FINANCIAL REPORT
5 August 2020 at 9:35 am
Sampo Group's Results for January -- June 2020
Sampo Group's profit before taxes for the first half of 2020 was EUR 569
million (981). The Group's insurance technical performance continued to
excel and a large part of the decrease in the market values of
investment assets in March -- April 2020 was recovered. The total
comprehensive income, taking changes in the market value of assets into
account, amounted to EUR 34 million (995) for the first half of 2020 and
EUR 987 million (434) for the second quarter of 2020.
-- Earnings per share was EUR 0.81 (1.37) and mark-to-market earnings per
share was EUR 0.02 (1.68). Return on equity for the Group amounted to 0.2
per cent (15.4) for the first half of 2020. Meanwhile, the net asset
value per share on 30 June 2020 was EUR 16.99 (20.71).
-- Sampo confirmed on 29 July 2020 after market rumours started to circulate
that it is, together with Rand Merchant Investment Holdings Limited (RMI),
in discussions with Hastings Group Holdings Plc regarding a possible cash
offer to acquire the issued and to be issued share capital of Hastings
not already owned or controlled by Sampo and RMI. Today Sampo and RMI
have announced a recommended cash offer, through a newly-formed jointly
owned company, to acquire Hastings.
-- If segment's profit before taxes was EUR 383 million (440). The insurance
technical result increased to EUR 398 million (334) and the combined
ratio for January -- June 2020 amounted to 82.1 per cent (84.7). Premiums
grew by 5 per cent on a fixed currency basis. Furthermore, all business
areas and all markets recorded growth.
-- Topdanmark segment's profit before taxes decreased to EUR 38 million
(146). Meanwhile, the combined ratio amounted to 84.2 per cent (79.0).
-- Sampo's share of Nordea's net profit for January -- June 2020 amounted to
EUR 132 million (222). With regard to segment reporting, the share of
Nordea's profit is included in the segment entitled 'Holding'.
-- Profit before taxes for the Mandatum segment amounted to EUR 39 million
(137). Meanwhile, premiums decreased to EUR 498 million (529).
Change, Change,
Key figures 1-6/2020 1-6/2019 % 4-6/2020 4-6/2019 %
------------------------ -------- -------- ------- -------- -------- -------
EURm
------------------------ -------- -------- ------- -------- -------- -------
Profit before taxes 569 981 -42 407 506 -19
------------------------ -------- -------- ------- -------- -------- -------
If 383 440 -13 254 242 5
------------------------ -------- -------- ------- -------- -------- -------
Topdanmark 38 146 -74 52 53 -3
------------------------ -------- -------- ------- -------- -------- -------
Associates 137 226 -39 51 143 -64
------------------------ -------- -------- ------- -------- -------- -------
Mandatum 39 137 -71 55 65 -15
------------------------ -------- -------- ------- -------- -------- -------
Holding (excl.
associates) -29 31 - -5 2 -
------------------------ -------- -------- ------- -------- -------- -------
Profit for the period 469 826 -45 330 428 -23
------------------------ -------- -------- ------- -------- -------- -------
Change Change
------------------------ -------- -------- ------- -------- -------- -------
Earnings per share, EUR 0.81 1.37 -0.56 0.55 0.73 -0.18
------------------------ -------- -------- ------- -------- -------- -------
EPS (based on OCI) EUR 0.02 1.68 -1.66 1.73 0.74 0.99
------------------------ -------- -------- ------- -------- -------- -------
NAV per share, EUR *) 16.99 20.71 -3.72 - - -
------------------------ -------- -------- ------- -------- -------- -------
Average number of staff
(FTE) 10,322 9,734 588 - - -
------------------------ -------- -------- ------- -------- -------- -------
Group solvency ratio,
% *) 187 167 20 - - -
------------------------ -------- -------- ------- -------- -------- -------
RoE, % 0.2 15.4 -15.2 - - -
------------------------ -------- -------- ------- -------- -------- -------
*) comparison figure from 31.12.2019
The figures in this report have not been audited. Income statement items
are compared on a year-on-year basis and comparison figures for balance
sheet items are from 31 December 2019, unless otherwise stated.
Sampo follows the disclosure procedure enabled by the Finnish Financial
Supervisory Authority and hereby publishes its Interim Statement
attached as a PDF file to this stock exchange release. The Interim
Statement is also available at
https://www.globenewswire.com/Tracker?data=T6zf9vlueHPz00XhXCTvd58orvnF5UK8dj1We_Y8k4KYAxjldXwmrNumdh21IiLkVMz_3nd2JR5F2sef1GKI2AdeIGYyQtoJEwz8w5hiu6Q=
www.sampo.com/result.
EXCHANGE RATES USED
IN REPORTING 1-6/2020 1-3/2020 1-12/2019 1-9/2019 1-6/2019
--------------------------- -------- -------- --------- -------- --------
EURSEK
--------------------------- -------- -------- --------- -------- --------
Income statement (average) 10.6621 10.6649 10.5853 10.5679 10.5181
--------------------------- -------- -------- --------- -------- --------
Balance sheet (at end
of period) 10.4948 11.0613 10.4468 10.6958 10.5633
--------------------------- -------- -------- --------- -------- --------
DKKSEK
--------------------------- -------- -------- --------- -------- --------
Income statement (average) 1.4280 1.4279 1.4183 1.4158 1.4090
--------------------------- -------- -------- --------- -------- --------
Balance sheet (at end
of period) 1.4813 1.4813 1.3982 1.4326 1.4153
--------------------------- -------- -------- --------- -------- --------
NOKSEK
--------------------------- -------- -------- --------- -------- --------
Income statement (average) 0.9932 1.0195 1.0749 1.0816 1.0810
--------------------------- -------- -------- --------- -------- --------
Balance sheet (at end
of period) 0.9618 0.9610 1.0591 1.0809 1.0897
--------------------------- -------- -------- --------- -------- --------
EURDKK
--------------------------- -------- -------- --------- -------- --------
Income statement (average) 7.4648 7.4714 7.4661 7.4644 7.4651
--------------------------- -------- -------- --------- -------- --------
Balance sheet (at end
of period) 7.4526 7.4674 7.4715 7.4662 7.4636
--------------------------- -------- -------- --------- -------- --------
GROUP CEO'S COMMENT
The second quarter was a strong quarter for Sampo Group, despite the
uncertainty related to COVID-19. Firstly, we continued to excel in P&C
insurance underwriting, the backbone of our profit generation, and
secondly, the investment markets reversed the negative experience from
March and April, as the equity markets surged and bond spreads narrowed
during May and June.
Business has been stable during the summer months, and we have also been
able to focus on project Dorset. The code name refers to the offer we
have published today, together with RMI, to acquire all shares in the UK
motor insurance company Hastings Group Holdings Plc.
The offer is of course a step in the strategy to allocate more capital
to P&C insurance, and Hastings is a unique company which we have
followed for some time. It operates in the large UK motor insurance
market and, more importantly, in the fast-growing segment of modern
digital distribution which continues to take market share from the
traditional operators. Hastings results have been impressive since the
IPO in 2015.
The UK is certainly an interesting insurance market. It is not only very
large, but also very advanced in digital terms. I am excited about the
opportunities to develop Sampo with these digital capabilities, at the
same time as our Nordic expertise in other areas like retention
techniques and car manufacturer collaboration can support Hasting's
future development.
The fact that we do this together with RMI, a long-term shareholder in
Hastings, reduces the acquisition risks significantly. RMI is a South
African financial services investment holding company and has been the
largest shareholder in Hastings since 2017.
Coming back to our existing businesses, If P&C posted a technical result
that improved further from the already excellent level. Stable
operations where premium increases corresponded well to claims
inflation. Topdanmark also recovered from the difficult first quarter of
this year.
Nordea's progress in the second quarter was encouraging. The bank
remains committed to meeting the financial targets 2022, and leading
indicators on cost and customer satisfaction developed strongly. It has
maintained the strong financial position it had when entering the
COVID-19 crisis and with its high equity tier 1 ratio and ample credit (MORE TO FOLLOW) Dow Jones Newswires
08-05-20 0250ET
