REG-Sampo Group’s results for January–June 2025

Sampo OyjAnnouncement

06/08/2025 06:30

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Sampo plc, half-year financial report, 6 August 2025 at 8:30 am EEST

Sampo Group’s results for January–June 2025
* Like-for-like top-line growth of 8 per cent, supported by continued strong
momentum in the private businesses in the Nordics and in the UK.
* Favourable claims environment throughout the first half and positive
underlying trend in the Nordics supported underwriting margins, leading to an
improved combined ratio of 83.6 per cent.
* The underwriting result increased by 25 per cent on a currency adjusted
basis to EUR 729 million on the back of strong growth and margin improvement.
* Operating EPS strengthened by 13 per cent to EUR 0.25, driven by the strong
underwriting performance offsetting lower investment returns and an increase
in the share count.
* Following the strong second quarter performance, the outlook for 2025
underwriting result has been increased to EUR 1,425-1,525 million from
1,400-1,500 million.
* Sampo intends to launch a new EUR 200 million share buyback programme funded
by capital generated in 2024.
* Solvency II coverage stood at 174 per cent, net of dividend accrual and
planned buyback programme, and financial leverage amounted to 26.1 per cent.
“Sampo continued to deliver excellent results in the second quarter on the
back of growth in attractive areas, disciplined underwriting, and efficiency
gains. Our private operations in the Nordics and the UK stood out with
like-for-like premium growth of 9 per cent and 13 per cent, respectively, as
they capitalised on strong customer propositions”, says         
Torbjörn Magnusson, Sampo Group CEO.

Key figures

 EURm                                           4–6/ 2025    4–6/ 2024    Change, %  1–6/ 2025    1–6/ 2024    Change, %  
 Gross written premiums                         2,542        2,333        9          6,242        5,631        11         
 Insurance revenue, net                         2,264        2,057        10         4,452        4,077        9          
 Underwriting result                            393          321          23         729          580          26         
 Net financial result                           185          180          3          287          445          -36        
 Profit before taxes                            526          444          18         903          909          -1         
 Net profit                                     417          310          35         703          653          8          
 Operating result                               368          296          24         665          549          21         
 Earnings per share (EUR)                       0.16         0.12         26         0.26         0.26         —          
 Operating EPS (EUR)                            0.14         0.12         16         0.25         0.22         13         
                                                                                                                          
                                                4–6/ 2025    4–6/ 2024    Change     1–6/ 2025    1–6/ 2024    Change     
 Risk ratio, %                                  56.8         58.9         -2.1       57.8         60.6         -2.8       
 Cost ratio, %                                  25.9         25.6         0.3        25.8         25.1         0.7        
 Combined ratio, %                              82.6         84.4         -1.8       83.6         85.8         -2.1       
 Solvency II ratio (incl. dividend accrual), %  —            —            —          174          179          -5         

Gross written premiums and insurance revenue include broker revenues.
Like-for-like GWP growth is calculated by using constant currency rates and it
is adjusted to exclude potential technical items affecting comparability, such
as portfolio transfers, changes in inception dates for large contracts, and
changes in accounting methods. Net profit for the comparison period refers to
Net profit for the equity holders. Per share figures for the comparison period
are adjusted for the share split in February 2025. The figures in this report
have not been audited.

GROUP CEO’S COMMENT

Sampo continued to deliver excellent results in the second quarter with a 21
per cent increase in underwriting profits to EUR 393 million driven by premium
growth of 8 per cent, underlying margin expansion, and benign claims trends.
Operating EPS grew by 16 per cent to EUR 0.14 per share, and we are announcing
the launch of a new EUR 200 million share buyback programme.

Although much has changed in the last two decades, our success continues to
rest largely on the same principles now, in what is my last quarter as Group
CEO, as it did when I became CEO of If P&C in 2002. We create value through
technical P&C insurance excellence, disciplined underwriting, and a commitment
to delivering constant operational and productivity improvements.

In the early 2000s, our focus was very much on improving profitability in the
then relatively newly formed If P&C, which was racking up large underwriting
losses. Our challenging starting point meant that we could implement major
changes of the type only possible in a crisis, enabling the creation of the
first Nordic financial services firm with a truly unified business and culture
across the region. We are now capitalising on the advantages that this unique
position affords us and the investments we have subsequently made,
particularly in digital capabilities.

With margins at attractive levels, our focus has increasingly turned to
organic growth, as evidenced by the 9 per cent GWP increase achieved in our
Private Nordic business in the second quarter, accompanied by an 81.7 per cent
combined ratio achieved without the help of reserve releases. The growth was
broad-based across geographies and products, and it is underpinned by a 4th
consecutive quarter of improving customer retention rates in the Private
Nordic business and solid growth in digital sales.

In Commercial, we saw a 30 per cent increase in digital sales where the
customer completed the full purchasing journey online in the first half, which
combined with strong development in Norway and continued high retention to
drive 6 per cent top-line growth. Although digital sales represent a modest
share of the total portfolio at this stage, it is clear that SMEs are
following retail customers online, where earlier investments ensure that we
stand ready to receive them.

In 2020, our pursuit for opportunities to create value through operational
excellence brought us to the UK and the acquisition of Hastings. This step
represented a focused entry into the digital UK personal lines insurance
market through a unique operator with clear competitive advantages that we
could build on. Since the acquisition, we have more than doubled our UK
top-line to EUR 2.6 billion in 2024 and added over a million policies, while
delivering returns on capital on par with those in our Nordic business. The
second quarter was no exception, as we saw 13 per cent like-for-like premium
growth year-on-year, added 154,000 policies in the quarter, and increased
underwriting profits by 22 per cent.

Meanwhile, developments in the Industrial Nordic segment, which houses our
largest corporate customers, shows that we maintain our strong underwriting
discipline even as we take opportunities to grow. As a result of de-risking of
large property exposures and the non-renewals of a few large accounts that did
not meet our profitability objectives, we saw Industrial insurance revenue
fall by 8 per cent in the first half. The benefits of our discipline were
evident in the 80 per cent combined ratio reported for the period.

Industrial was not alone in delivering excellent margins – in fact,
profitability was high across the business, driving a solid group combined
ratio of 82.6 per cent for the second quarter. In the Nordics, we improved the
underlying risk ratio and cost ratio by a total of 60bps combined
year-on-year, as a result of disciplined pricing, fading claims inflation, our
usual cost efficiency efforts, and delivery on synergies from the integration
of Topdanmark. We expect the latter to accelerate in the second half, as we
progress further in our plans. While there has been a clear benefit from
benign weather and large claims this year, the quality of our result was solid
as we added further to our reserve strength. Following the strong result, we
have raised our 2025 outlook for the underwriting result to EUR 1,425–1,525
million, representing 8–16 per cent growth on 2024.

Returning to strategy, the simplification of the formerly conglomerate Sampo
Group structure since 2020 has laid a strong foundation for future value
creation centered on operational excellence. My successor as Group CEO, Morten
Thorsrud, is ideally placed to ensure that the Group capitalises on this
opportunity. While in charge of If P&C, he has not only delivered excellent
financial performance but also continued to increase investment in the
operational capabilities that underpin our competitive advantages, while
actively pursuing Nordic organic growth opportunities.

Finally, I note the new EUR 200 million share buyback programme, which may be
increased in the event of a sale of legacy assets during the second half. The
discipline we have shown in managing capital over the last few years
illustrates our commitment to monetising our operational excellence in the
best possible way.

In summary, I am delighted to hand over the reigns of Sampo on a high note and
into the safe hands of excellent insurance professionals that I know will take
it to new heights.

Torbjörn Magnusson
Group CEO

OUTLOOK FOR 2025

The second quarter result benefited from favourable weather and large claims
relative to normal levels. Taking these factors into consideration, Sampo has
decided to modestly adjust its outlook for 2025.
* Group insurance revenue: EUR 8.9–9.1 billion (from EUR 8.8–9.1 billion),
representing growth of 6–9 per cent year-on-year.
* Group underwriting result: EUR 1,425–1,525 million (from EUR 1,400–1,500
million), representing growth of 8–16 per cent year-on-year.
Any forecast of Sampo’s underwriting result is subject to estimates for
weather claims, large claims, prior year development, and certain other items
that may vary periodically and are out of Sampo’s control, meaning regular
updates of the forecast are needed to reflect actual outcomes. Moderate
deviations against normal and budget levels are typical on a quarterly basis
and Sampo intends to broadly reflect these in the outlook statement in its
quarterly reports. In addition to the underwriting result, Sampo derives a
material share of its earnings from returns on its investment portfolio and
insurance finance income and expense, meaning changes in the outlook cannot be
assumed to translate one-for-one into net profit. Sampo does not provide an
outlook for its net financial result.

The outlook for 2025 is consistent with Sampo’s 2024–2026 financial
targets of delivering a combined ratio below 85 per cent annually and
operating EPS growth of more than 7 per cent annually on average. The outlook
is subject to uncertainty related to occurrence and estimation of the cost of
P&C claims, foreign exchange rates, and competitive dynamics. Revenue
forecasts, in particular, are subject to competitive conditions, which may
change rapidly in some areas, such as the UK motor insurance market. The
revenue and underwriting profit figures in the outlook are based on currency
exchange rates as of the latest reporting date.

CHANGE OF GROUP CEO

On 18 June 2025, Sampo announced that Torbjörn Magnusson, the CEO of Sampo
Group has informed the Sampo Board of his intention to retire from his role.
The Board of Directors appointed Morten Thorsrud, the CEO of Sampo’s largest
operating entity, If P&C, as his successor. The change in Group CEO will
become effective on 1 October 2025, after which Magnusson will stay within the
group as a Senior Advisor until 31 December 2025.

SAMPO PLC 
Board of Directors

The Interim Statement for January-June 2025 in its entirety, the Investor
Presentation and a video review with Group CEO Torbjörn Magnusson are
available at www.sampo.com/result.

A conference call for investors and analysts will be arranged today 6 August
at 11:00 am Finnish time (9:00 am UK time). 

To ask questions, please join the teleconference by registering using the
following link: https://palvelu.flik.fi/teleconference/?id=50051476

The conference call can also be followed live at www.sampo.com/result. A
recorded version and a transcript will later be available at the same address.

For further information, please contact:

Knut Arne Alsaker, Group CFO, tel. +358 10 516 0010
Sami Taipalus, Head of Investor Relations, tel. +358 10 516 0030
Maria Silander, Communications Manager, Media Relations, tel. +358 10 516 0031

Distribution:
Nasdaq Helsinki
Nasdaq Stockholm
Nasdaq Copenhagen
London Stock Exchange
FIN-FSA 
The principal media 
www.sampo.com

Attachment
*     Sampo Group's Half-Year Financial Report 2025
(https://ml-eu.globenewswire.com/Resource/Download/44c9bcee-42f8-4685-91b6-f82c899005e3)