Mandatum Life Group’s result before taxes was EUR 313 million (116) for January–June 2018. The figure includes a EUR 197 million item related to the co-operation agreement with Danske Bank.
Comprehensive income after taxes, taking into account changes in market values, rose to EUR 185 million (111). The return on equity was 25.9 per cent (15.6). The expense result in the first half of the year was EUR 13 million (14), and the risk result was EUR 10 million (15). Premiums written on Mandatum Life’s own account increased by 25 per cent to EUR 528 million (423) in the first half of 2018, thanks to excellent sales and customer demand.
Measured at market values, Mandatum Life’s investment assets at the end of June 2018 totalled EUR 6.1 billion (6.3), excluding the EUR 7.1 billion (7.1) in assets covering unit-linked technical provisions. The investment assets covering Mandatum Life’s original with-profit liabilities on 30 June 2018 totalled EUR 5.0 billion (5.2) at market values. The return on investment assets at fair value was 0.4 per cent (4.6) in January–June 2018. The value of the investments covering the segregated portfolio was EUR 1.1 billion (1.1), and the return on the segregated portfolio’s investment assets at fair values was –0.5 per cent (0.9) in January–June 2018.
Mandatum Life’s total technical provisions amounted to EUR 11.5 billion (11.6) on 30 June 2018. Unit-linked technical provisions amounted to EUR 7.1 billion (7.1). The unit-linked technical provisions accounted for 62 per cent (61) of the total technical provisions. At the end of the first half of 2018, the with-profit technical reserves amounted to EUR 4.4 billion (4.6). The insurance portfolios with a high technical rate of interest (4.5 and 3.5 per cent) shrunk by EUR 118 million to EUR 2.5 billion in January–June 2018.
Overall, Mandatum Life has strengthened its technical provisions by EUR 284 million (325) in response to the low interest rate level. The figures do not include items related to the segregated portfolio. The discount rate for 2018, 2019 and 2020 is 0.25 per cent. The discount rate for 2021 was lowered in the second quarter of 2018 by 0.25 per centage points to 2.50 per cent. The technical rate of interest on the segregated group pension insurance portfolio is 0.50 per cent.
Key figures 1–6/2018
Premiums written, own account: €528 million (423)
Profit before taxes: €313 million (116)
RoE: 25.9% (15.6)
Solvency ratio: 194% with transitional measures (12/2017: 182) and 145% without transitional measures (12/2017: 127)
Return on investment assets: 0.4% (4.6) and for the segregated portfolio –0.5% (0.9)
Average number of staff: 529 (528)
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