Sampo Group’s results for 2024

Sampo Oyj

06/02/2025 06:30

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Sampo plc, finanacial statement release, 6 February 2025 at 8:30 am EET



Sampo Group’s results for 2024 

• Top-line growth amounted to 12 per cent in 2024 on a currency adjusted
basis, with notably strong development in Private in the fourth quarter.

• The Group underlying combined ratio improved by 1.5 percentage points,
supported by positive trends in the Nordics and in the UK.

• The Group underwriting result increased by 13 per cent to EUR 1,316
million (1,164), driven by strong growth and a slight improvement in the Group
combined ratio to 84.3 per cent (84.6).

• Operating EPS increased by 13 per cent to EUR 2.33 (2.07) on a higher
underwriting result and stable investment returns.

• Solvency II coverage stood at 177 per cent, net of the proposed dividend,
and financial leverage amounted to 26.9 per cent.

• The Board proposes a regular dividend of EUR 1.70 per share, or EUR 0.34
per share adjusted for the share split announced on 5 February 2025.

• Sampo expects to deliver an underwriting result of EUR 1,350–1,450
million in 2025, representing growth of 3–10 per cent year-on-year, and
insurance revenue of EUR 8.7–9.0 billion.

Key figures

 EURm                               1–12/     1–12/     Change, %  10–12/     10–12/     Change, %  
                                    2024      2023                 2024       2023                  
 Profit before taxes                1,559     1,481     5          219        368        -40        
 If                                 1,256     1,358     -8         187        369        -49        
 Topdanmark                         137       162       -15        -21        19         —          
 Hastings                           193       129       49         52         59         -11        
 Holding                            -29       -160      —          -1         -78        —          
 Net profit for the equity holders  1,154     1,323     -13        180        382        -53        
 Operating result                   1,193     1,046     14         347        208        66         
 Underwriting result                1,316     1,164     13         361        281        28         
                                                        Change, %                        Change, %  
 Earnings per share (EUR)           2.25      2.62      -14        0.31       0.76       -59        
 Operating EPS (EUR)                2.33      2.07      13         0.65       0.42       55         
 Return on equity own funds, %      29.5      24.7      —          —          —          —          

 Net profit for the equity holders and earnings per share for 2023 include
result from life operations.
 The figures in this report have not been audited.

Sampo Group key financial targets for 2024–2026

 Target                                          2024   
 Operating EPS growth: over 7% (period average)  13%    
 Group combined ratio: below 85%                 84.3%  
 Solvency ratio: 150-190%                        177%   
 Financial leverage: below 30%                   26.9%  

Financial targets for 2024–2026 announced at the Capital Markets Day on 6
March 2024.

GROUP CEO’S COMMENT

2024 was a landmark year strategically for Sampo as well as an excellent year
when it comes to operational progress. We delivered solid underwriting profit
growth of 13 per cent, significantly supported by strong performance in the
UK, and we acquired the minority interest in Topdanmark, completing our
journey to an integrated P&C insurance group. We enter 2025 in excellent
shape, following strong growth in the fourth quarter and with an attractive
pipeline of opportunities to capitalise on our digital capabilities and the
synergy potential in integrating Topdanmark.

Top-line growth continued to be excellent in the fourth quarter, on the back
of long-term investments made into our capabilities and rational market
conditions. Private stands out with 8 per cent currency adjusted GWP growth in
the quarter, or 10 per cent if we exclude the Swedish mobility business
adversely affected by low new car sales. This growth comes partly from
investments into personal insurance and property, which grew by 14 per cent
and 7 per cent in the quarter, respectively. However, supportive conditions in
Norway and Denmark also provide a tail wind with a notable acceleration in GWP
growth in Topdanmark to 11 per cent in the quarter. Private retention remains
high and stable at 89 per cent, reflecting both high customer satisfaction and
rational Nordic markets. To complete the picture on Private, I am pleased to
be able to report that we have recently renewed two of the largest motor
insurance distribution agreements in the Nordic markets, thereby confirming
our strong leadership position in the region.

In the UK, we added 84,000 policies in the quarter with growth in new
products, such as telematics, bike, van, and home insurance, partly offset by
a disciplined approach to the broader motor product as market pricing ticked
down. Overall, 2024 was an outstanding year for Hastings with underwriting
profit growth of 49 per cent, accounting for almost half the 13 per cent
increase at Group level.

In corporate lines, I want to focus on the 1 January 2025 renewals, which
account for around 40–45 per cent of the business. Commercial achieved
high-single digit rate increases, backed by particularly strong development in
Norway, while retention remained high. In Industrial, a largely supportive
market enabled rate increases above plan, and we took the opportunity to
continue to reduce our exposure to the largest property risks. Our main
reinsurance programmes were renewed successfully on 1 January, with net
retention unchanged at SEK 300 million (circa EUR 25 million) per event and
individual property risk.

The de-risking action taken in Industrial and our discipline in UK motor
illustrates our underwriting culture and commitment to high and stable
margins. The fourth quarter once again saw strong and consistent development
in underlying margins, as well as yet another improvement in the Nordic cost
ratio putting us ahead of the ambition for 2024. The integration of Topdanmark
into If P&C provides an opportunity to accelerate Nordic productivity
improvements over the coming years.

Turning to capital management, the Board of Directors is proposing a dividend
of EUR 1.70 per share for 2024, or EUR 0.34 per share adjusting for the
upcoming share split, representing growth of 6 per cent, as we prioritise
reliability and a steady trajectory. In addition, I expect that we will launch
new buyback programme in 2025, with a new mandate from our Annual General
Meeting, funded by capital generated in 2024 and potential disposals of legacy
holding company investments. Our commitment to disciplined capital management
is unwavering and we will regularly seek to complement dividends with share
buybacks.

To conclude, we look to 2025 with great confidence. We have completed our
strategic simplification, further rapidly developed our digital abilities and
seen strong momentum in the 1 January renewals. Based on this, we have set an
outlook for underwriting profit of EUR 1,350–1,450 million for 2025,
reflecting our expectation to be able to deliver on our operating EPS growth
target of more than 7 per cent per annum on average in 2024–2026.

Torbjörn Magnusson
 Group CEO

 
 OUTLOOK

Operating environment and assumptions

The acquisition of Topdanmark in 2024 completed Sampo’s transition into a
fully integrated P&C insurance group. Sampo has an attractive operational
footprint as the leader in the consolidated Nordic P&C insurance market and a
leading operator in the growing digital UK P&C insurance market, positioning
the Group to deliver both stability and growth.

Competitive dynamics remain rational across the Group’s areas of operation
going into 2025, while demand for P&C insurance is stable despite limited
economic growth. Sampo expects claims cost to continue to grow above the
long-term trend over the year, driven by factors including rising repair costs
for new cars and continued wage and service inflation. At Group level,
underlying claims cost is expected to see a mid-single digit per cent increase
in 2025, and the Group remains firmly committed to conservatively reflecting
this in its pricing.

The strategic and operational investments made by Sampo over recent years have
substantially strengthened its competitive position. The Group has unique
digital capabilities across distribution, pricing, underwriting, and claims
handling that enable it to deliver superior service and efficiency. Further,
the integration of Topdanmark into the Group is expected to enable financial
benefits through the delivery of scale benefits and synergies.

Outlook for 2025

The outlook for Sampo Group’s 2025 financial performance is:

• Group insurance revenue: EUR 8.7–9.0 billion, representing growth of
4–7 per cent year-on-year.

• Group underwriting result: EUR 1,350–1,450 million, representing growth
of 3–10 per cent year-on-year.

The outlook for 2025 is consistent with Sampo’s 2024–2026 financial
targets of delivering a combined ratio below 85 per cent 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, investment performance, 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 31 December 2024 currency exchange rates.

FOURTH QUARTER 2024 IN BRIEF

Strong top-line growth, notably in Private, and positive margin development
drove 28 per cent growth in underwriting profits.

Gross written premiums and brokerage income increased by 18 per cent on a
currency-adjusted basis and 19 per cent on a reported basis to EUR 2,212
million (1,864) in October-December 2024. The growth was positively affected
by Topdanmark’s acquisition of Oona Health as well as a change of inception
date for a small group of large industrial contracts from the third quarter to
the fourth quarter. Excluding these, the currency adjusted top-line growth was
10 per cent.

Fourth quarter winter weather was fairly normal with claims damage caused
mainly by localised events, whereas the prior year was affected by an early
start to the winter in the Nordics. In total, severe weather and large claims
had 2.3 percentage points negative effect on the Group combined ratio, down
from 4.5 percentage points in the comparison period. The Group underlying
combined ratio improved by 1.4 percentage points, driven by solid performance
across business areas with If reporting an undiscounted adjusted risk ratio
improvement of 0.3 percentage points year-on-year. The Group combined ratio
improved to 83.4 per cent (85.5). The underwriting result increased by 28 per
cent on a currency adjusted basis and on a reported basis to EUR 361 million
(281) on strong growth.  

The net financial result decreased to EUR 62 million (175) driven by lower
investment income. Fourth quarter net investment income of EUR 70 million
(517) was affected by a rise in interest rates and soft Nordic equity market
performance, while the comparison period benefited from exceptionally
favourable conditions. IFIE amounted to EUR -7 million (-342), supported by a
positive effect of EUR 43 million from changes in discount rates, whereas the
comparison period saw a negative effect of EUR -271 million. Unwind of
discounting stood at EUR -54 million (-81).

Profit before taxes was EUR 219 million (368). This includes non-recurring
costs of around EUR 150 million related to the Topdanmark integration reserved
for the fourth quarter, without which quarterly profit before taxes would have
been EUR 369 million. Of the restructuring charge, EUR 76 million was booked
in the If segment and EUR 73 million in the Topdanmark segment. Operating EPS
came in at EUR 0.65 (0.42) on the back of higher underwriting result and
stable investment returns.

SAMPO PLC
 Board of Directors

The Financial Statement Release for 2024, Investor Presentation and a video
review with Group CFO Knut Arne Alsaker are available at www.sampo.com/result.

A conference call for investors and analysts will be arranged today 6 February
at 11:00 am Finnish time (9:00 am UK time). Please join the teleconference by
registering using the following link: 

https://palvelu.flik.fi/teleconference/?id=5004591

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 more 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's Financial Statements Release 2024
(https://ml-eu.globenewswire.com/Resource/Download/69b2e6df-e43b-444f-8491-291ba462c9a5)