Mandatum Life's profit before taxes in January–September grew to EUR 112 million (103). The return on investment assets at fair value was 3.9 per cent (5.2). Comprehensive income from investments at fair value after taxes declined to EUR 103 million (137). Mandatum Life Group's expense result increased to EUR 15 million (8), and the risk result decreased to EUR 13 million (17).
Premiums written on the company's own account decreased to EUR 772 million (788). The company's overall market share in Finland stood at 17.4 per cent (19.6), and its share of the unit-linked insurance market was 17.2 per cent (19.7). Unit-linked insurance products made up 85 per cent of premiums written on the total insurance portfolio. Premiums written in the Baltic countries grew to EUR 30 million (21).
Mandatum Life's solvency position in accordance with the Solvency I framework remained strong. Mandatum Life Group's solvency ratio at the end of September was 29.8 per cent (27.6). The parent company's solvency margin is nearly seven times the required minimum. In the Sampo Group's Economic Capital model and the upcoming Solvency II framework, the capital requirement for Mandatum Life is highly dependent on the with-profit technical reserves and the investment assets covering the reserves. Due to the structure of the portfolio, the with-profit technical reserves will shrink quite dramatically in the coming years, which will free up solvency capital.
Mandatum Life Group's technical reserves exceeded EUR 9 billion for the first time ever and amounted to EUR 9,014 million (8,544). Unit-linked reserves increased to EUR 5,222 million (4,617). The ever-shrinking with-profit technical reserves accounted for EUR 3,792 million (3,927) of the total technical reserves. In response to the low interest rate level, the with-profit technical reserves include an increase of EUR 155 million (146) in the reserve for decreased discount rates.
The transfer of Suomi Mutual Life Assurance Company's with-profit group pension portfolio to Mandatum Life is proceeding as planned. The portfolio transfer is scheduled to take place on 30 December 2014.
Key figures Jan–Sept/2014
Premiums written, own account: €772 million (788)
Profit before taxes: €112 million (103)
ROE: 10.8% (15.7)
Solvency ratio: 29.8% (Dec/2013: 27.6)
Return on investments: 3.9% (5.2)
Average number of staff: 521 (547)
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