Mandatum Life’s result before taxes in January–September 2018 grew to EUR 385 million (180). Comprehensive income after taxes, taking into account changes in market values, amounted to EUR 232 million (163). The return on equity was 22.5 per cent (15.6). The fair value reserve stood at EUR 522 million (599) at the end of September 2018. The net return on investment assets amounted to EUR 196 million (310), excluding the return related to unit-linked insurance. Income from unit-linked insurance amounted to EUR 130 million (335).
The expense result was EUR 20 million (21) and the risk result was EUR 15 million (21). Premiums written on Mandatum Life Group’s own account totalled EUR 681 million (630) in January–September 2018. Mandatum Life paid EUR 150 million in additional dividends to Sampo plc on 25 September 2018.
At the end of September 2018, the market value of Mandatum Life Group’s investment assets was EUR 6.0 billion (6.3), excluding the EUR 7.2 billion (7.1) in assets covering unit-linked technical provisions. The investment assets covering Mandatum Life’s original with-profit liabilities on 30 September 2018 totalled EUR 4.9 billion (5.2) at market values; 47 per cent (42) of the assets were in fixed income instruments, 10 per cent (16) in money markets, 29 per cent (28) in equities and 14 per cent (13) in other investments. The return on investment assets at fair value was 1.4 per cent (5.7) in January–September 2018.
The value of the investments covering the segregated portfolio was EUR 1.1 billion (1.1), 78 per cent (77) of which was invested in fixed income instruments, 4 per cent (6) in money markets, 12 per cent (11) in equities and 6 per cent (6) in other instruments. The return on the segregated portfolio’s investment assets at fair values was 0.0 per cent (1.8) in January–September 2018.
Mandatum Life’s technical reserves amounted to EUR 11.5 billion (11.6) on 30 September 2018. The with-profit technical provisions decreased to EUR 4.3 billion (4.6) in January–September 2018. The insurance portfolios with a high technical rate of interest (4.5 and 3.5 per cent) shrunk during the January–September period by EUR 174 million to EUR 2.5 billion (2.6). The unit-linked technical provisions grew to EUR 7.2 billion (7.1) and accounted for 63 per cent (61) of the total technical provisions.
Mandatum Life has strengthened its technical reserves by a total of EUR 261 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 the rest of 2018, and for 2019 and 2020, is 0.25 per cent. The rate for 2021 is 2.50 per cent. The technical rate of interest on the segregated group pension insurance portfolio is 0.50 per cent. No increases were made to the with-profit technical reserves in the third quarter of 2018.
Key figures 1–9/2018
Premiums written, own account: €681 million (630)
Result before taxes: EUR 385 million (180)
RoE: 22.5% (15.6)
Solvency ratio: 187% with transitional measures (12/2017: 182) and 141% without transitional measures (12/2017: 127)
Return on investment assets: 1.4% (5.7) and on the segregated portfolio 0.0% (1.8)
Average number of staff: 529 (526)
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