02.11.2011

Solvency remained healthy, write-downs in results

Mandatum Life Group's profit for January-September 2011 totalled EUR 107 million (100) before taxes. In Q3, the results were burdened by the write-downs in shareholdings of EUR 37 million. Profit at fair value, which recognises changes in the market values of investment assets, was negative showing a loss of EUR 204 million (+ 228) after taxes. Return on investment assets on the basis of fair value was -3.8% (8.0).

Premiums written on Mandatum Life Group's own account decreased from those of one year ago to EUR 612 million (827). The economic uncertainty has particularly shown in the sales volumes of unit-linked contracts compared to the reference period. Despite this, the share of unit-linked contracts of premiums written remained at a very high level totalling approximately 80%. Mandatum Life's overall market share in Finland decreased was 23.7% (22.9) in direct business and 26.3% (28.0) in unit-linked life insurance.

Solvency capital in accordance with Solvency I weakened, but is still at a good level. On 30 September 2011, Mandatum Life's solvency ratio stood at 18.9% (25.8). The parent company's solvency margin is 4.2 times the set minimum.

The expense result displayed positive growth, rising to EUR 6 million (5) from the figures of the first nine months of 2011.

Mandatum Life Group's unit-linked technical provisions decreased from the levels seen in late June, now totalling EUR 2,935 million (June 2011: 3,198). The decrease is mainly a consequence of the decline in equity investments linked to the value development of policies. Unit-linked policies accounted for EUR 255 million (223) of claims paid. Technical provisions related to with-profit products continued to decline, totalling EUR 4,265 million (June 2011: 4,346). With-profit policies accounted for EUR 341 million (321) of claims paid, with pensions accounting for more than 70%. Technical provisions related to with-profit products include reserves for decreased discount rates totalling EUR 116 million.

Key figures Q3/2011
Total premiums written, on own account: EUR 612 million (827)
Profit before taxes: EUR 107 million (100)
Return on equity: -29.3% (35.2)
Expense ratio: 112.1% (113.6)
Solvency ratio: 18,9 % (25,8)
Return on investments: -3.8% (8.0)
Average number of staff: 534 (488)