Finnish insurer Sampo misses profit forecast in volatile market (updated)

Topdanmark A/S

10/02/2023 09:21

(Adds unit performance, dividend, analyst comment)
       Feb 10 (Reuters) - Finnish insurer Sampo  SAMPO.HE  on
Friday reported a bigger-than-expected drop in fourth-quarter
earnings citing challenging capital markets environment, sending
its shares falling more than 5%.
    The group's profit before tax fell 67% to 390 million euros
($418.43 million) in the quarter, missing analysts'
553-million-euro estimate in a company-provided poll.
    Sampo also said it expected to conclude the strategic review
of its Mandatum unit by the end of March, with all options
including a possible spin-off via a separate listing still open.
    The group said in December it was reviewing the ownership of
Mandatum, which offers life insurance, wealth management and
asset management, as part of its plan to refocus its business
towards property and casualty (P&C) insurance.
    Sampo last year sold its stake in banking group Nordea
 NDAFI.HE  and has said it plans to fully takeover Danish
Topdanmark  TOP.CO  in which it currently holds 48%.
    "As the strategic review of Mandatum ... is still ongoing
... it remains our view that Sampo will not buy the remaining
shares of Topdanmark in the near term," Jefferies analysts said
in a note to clients.
    Mandatum's pre-tax profit dropped 80% in the quarter to 18
million euros hit by "adverse and volatile capital market
movements", Sampo said.
    Topdanmark's pre-tax profit contribution was 128 million
euros, up 44% on the year but below the 186 million expected by
analysts.
    Sampo's main unit If, which offers P&C insurance solutions
and services in Finland, Sweden, Norway, Denmark and the Baltic
countries, posted a 10% rise in pre-tax profit to 285 million
euros, in line with estimates.
    Sampo also proposed a dividend of 2.60 euros per share for
2022, 11.6% below analysts' 2.94 euro estimate.
($1 = 0.9321 euros)
 (Reporting by Marta Frackowiak in Gdansk; editing by Milla
Nissi)
 ((marta.frackowiak@thomsonreuters.com; +48 58 769 65 30;))