Mandatum Life's January–March result before taxes increased to EUR 37 million (36). The return on investment assets at fair value was 1.1 per cent (2.3). Comprehensive income from investments at fair value after taxes declined to EUR 18 million (66), which can be attributed to lower investment returns than in the previous year. The discount rate reserve, which amounted to EUR 158 million (146) at the end of March, was increased in response to the low interest rate level and consequently burdened the result.
Among the result categories, the most favourable development was seen in the expense result, which increased at Mandatum Life Group to EUR 4.4 million (0.5). Behind the increase are the cost-efficiency programme of 2013 and the simultaneous growth in fee and commission income.
Mandatum Life Group's premiums written on its own account declined seven per cent to EUR 244 million (262). Premiums written in the Baltic countries totalled EUR 8 million (7). Premiums written in the sector continued to grow, as a result of which Mandatum Life's total market share in Finland fell to 15.8 per cent (18.2), and its share of unit-linked products, which constitute its primary focus, fell to 15.7 per cent (18.9).
Mandatum Life's solvency position remained strong. The Group's solvency ratio at the close of the first quarter was 28.0 per cent (27.6). The parent company's solvency margin was more than six times the minimum required by current legislation. In its internal solvency analyses (Economic Capital), the solvency target set for the company is highly dependent on the with-profit technical reserves and the investment assets covering the reserves. In this analysis, too, the company's solvency position is good, despite being considerably burdened by the low interest rate level.
The Group's technical provisions increased to EUR 8.6 billion (8.5). A year ago, the unit-linked technical provisions exceeded the technical provisions related to with-profit products for the first time. Now, at the end of March, the unit-linked technical provisions, at EUR 4,749 million (4,617), exceed the technical provisions related to with-profit products, which amount to EUR 3,885 million (3,927), already by more than EUR 850 million.
Key figures Q1/2014
Premiums written, own account: €244 million (262)
Profit before taxes: €37 million (36)
Return on equity: 6.1% (22.4)
Expense ratio: 105.7% (120.5)
Solvency ratio: 28.0% (12/2013: 27.6)
Return on investments: 1.1% (2.3)
Average number of staff: 515 (566)
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