Mandatum Life’s result before taxes in January–September 2015 was EUR 132 million (112). The discount rate reserve was extended in July–September to cover 2018, as a result of which the third-quarter result weakened by EUR 13 million. All in all, Mandatum Life has supplemented its technical reserves by EUR 224 million (135) in response to the low interest rate level. The figure does not include the EUR 232 million increase related to the segregated with-profit group pension portfolio.
The return on equity (RoE) decreased to 5.3 per cent (10.8) mostly as a consequence of increases in the discount rate reserve. The total comprehensive income for the period, taking changes in the market value of assets into account, decreased to EUR 50 million (103) after tax.
Mandatum Life Group’s premium income on its own account grew 9 per cent to EUR 838 million (772) in January–September. The company’s market share in Finland stood at 17.3 per cent (17.4). The expense result increased to an all-time high of EUR 20 million (15) during the period, and the risk result was EUR 15 million (13).
The unit-linked reserves amounted to EUR 5.6 billion (5.3) at the end of September 2015, down EUR 0.3 billion from the record level at the end of March 2015 as a result of the difficult capital market conditions.
The with-profit technical reserves decreased to EUR 5.0 billion (5.1), of which the original Mandatum Life with-profit reserves constituted EUR 3.8 billion (3.8) and the segregated fund EUR 1.2 billion (1.2). The amount of higher guarantee with-profit reserves (3.5 and 4.5 per cent) continued to decrease according to plan, i.e. by EUR 154 million in the first three quarters of 2015, but the increase in the discount rate reserve kept the overall reserves almost unchanged.
The assets covering Mandatum Life’s original with-profit liabilities on 30 September 2015 amounted to EUR 5.3 billion (5.3) at market values; 45 per cent (32) of the assets are in fixed income instruments, 10 per cent (23) in money markets, 29 per cent (30) in equities and 16 per cent (15) in alternative investments. The return on investments at fair values was 3.7 per cent (3.9) in January–September.
Mandatum Life Group’s solvency position in accordance with the Solvency I framework remained strong. The solvency ratio at the end of September was 23.6 per cent (Dec/2014: 22.9).
Key figures 1–9/2015
Premiums written, own account: €838 million (772)
Profit before taxes: €132 million (112)
ROE: 5.3% (10.8)
Solvency ratio: 23.6% (Dec/2014: 22.9)
Return on investments: 3.7% (3.9)
Average number of staff: 521 (521)
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