Mandatum Life’s result before taxes in January–September 2017 increased to EUR 180 million (157). Comprehensive income after taxes, taking into account changes in market values, decreased to EUR 163 million (193). Due to the good result and improved solvency position, Mandatum Life paid EUR 150 million in additional dividends to Sampo plc on 25 September 2017.
The return on equity (RoE) was 15 per cent (18). The expense result was EUR 21 million (17) and the risk result was EUR 21 million (15). Premiums written on Mandatum Life Group’s own account amounted to EUR 630 million (669) in January–September.
Measured at market values, Mandatum Life Group’s investment assets totalled EUR 6.3 billion (6.6), excluding the EUR 6.9 billion (6.5) in assets covering unit-linked technical provisions. The investment assets covering Mandatum Life’s original with-profit liabilities on 30 September 2017 totalled EUR 5.2 billion (5.4) at market values. The return on investments at fair values was 5.7 per cent (5.1) in January–September. The value of investments covering the segregated group pension insurance portfolio was EUR 1.1 billion (1.2), and the portfolio’s return on investments at fair values in January–September was 1.8 per cent (3.6).
Mandatum Life Group’s technical reserves amounted to EUR 11.5 billion (11.3) at the end of September. The unit-linked technical provisions grew to EUR 6.9 billion (6.4) and accounted for 60 per cent (56) of the total technical provisions. The with-profit technical provisions decreased to EUR 4.6 billion (4.8) in January–September 2017. The insurance portfolios with a high technical rate of interest (4.5 and 3.5 per cent) shrunk by EUR 170 million to EUR 2.7 billion.
Mandatum Life has strengthened its technical reserves by a total of EUR 325 million (273) in response to the low interest rate level. The figures do not include items related to the segregated portfolio. There were no changes in discount rates in the third quarter of 2017, as a result of which, EUR 33 million was released from the technical reserves. The discount rate for 2017, 2018 and 2019 is 0.25 per cent, and for 2020 it is 1.00 per cent. The technical rate of interest on the segregated group pension insurance portfolio is 0.50 per cent.
Mandatum Life’s solvency position has developed favourably in 2017. At the end of September, the solvency ratio was 193 per cent (160), taking the transitional measures into account, and 131 per cent (102) without the application of transitional measures.
Key figures 1–9/2017
Premiums written, own account: €630 million (669)
Profit before taxes: €180 million (157)
RoE: 15% (18)
Solvency ratio: 193% (12/2016: 160)
Return on investments: 5.7% (5.1) and on the segregated portfolio 1.8% (3.6)
Average number of staff: 526 (543)
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