Finnish insurer Sampo posts smaller-than-expected fall in quarterly profit (updated)

Sampo Oyj

07/05/2025 06:56

Recasts with CEO, analyst's comments, share move, guidance on Topdanmark

By Marta Frackowiak

May 7 (Reuters) - Finnish insurer Sampo SAMPO.HE reported a smaller-than-expected drop in quarterly profit on Wednesday and raised its annual forecast, citing strong demand for policies and favourable weather-related claims amid a less severe winter.

The company's shares were up about 4% at 0743 GMT.

Sampo said its profit before tax fell 19% to 377 million euros ($427.97 million) in the quarter from a year ago, which was above analysts' average estimate of 350 million euros, per a poll compiled by Vara Research.

The Finnish insurance group raised its 2025 guidance citing, among others, favourable outcome on weather claims relative to normal levels, and now sees group insurance revenue of between 8.8 billion euros and 9.1 billion euros and group underwriting results of between 1.40 billion and 1.50 billion euros.

In February, Sampo forecast an underwriting result of between 1.35 billion euros and 1.45 billion euros for the year and group insurance revenue of between 8.7 billion euros and 9.0 billion euros.

Sampo also raised its estimate of Topdanmark synergies to 140 million euros pre-tax in 2028 from 95 million euros seen previously.

Last year, Sampo
agreed
 to buy Topdanmark in a deal valuing the Danish non-life insurer at $4.7 billion.

Jefferies says the company's results "read well", and points out that benign weather was a key contributor to the Nordic result, and the UK performance stands out because it comes at a time when UK motor prices are approaching their cyclical lows.

Performance at the company's UK unit was boosted by attractively priced business in home, van, and bike insurance as well as in telematics, Sampo said in a statement.

CEO Torbjorn Magnusson told Reuters that Sampo has not seen any effect from U.S. President Donald Trump's tariffs, nor does it expect to see any effect going forward.

"What's happened now is the world feels like a more uncertain place. And under those circumstances, I think people will look at their insurances more carefully, because it feels like a safety," Magnusson said.

($1 = 0.8809 euros)

 (Reporting by Marta Frąckowiak in Gdańsk; editing by Eileen Soreng)

 ((marta.frackowiak@thomsonreuters.com))