Mandatum Life’s result before taxes in January–March was EUR 54 million (53). The comprehensive income for the period, taking into account changes in the market value of assets, rose to EUR 85 million (-14) after taxes.
The return on equity (RoE) was 24.3 per cent (-4.4). The first quarter of 2017 was the best on record in terms of the expense result, which amounted to EUR 8 million (3). The risk result was EUR 8 million (5). Premiums written on Mandatum Life Group’s own account decreased to EUR 229 million (244).
The net return on investment assets, excluding the return related to unit-linked insurance, amounted to EUR 97 million (78). Income from unit-linked insurance amounted to EUR 213 million (-143). The fair value reserve increased to EUR 636 million (596) in the first quarter.
Measured at market values, Mandatum Life Group’s investment assets totalled EUR 6.6 billion (6.6), excluding the EUR 6.6 billion (6.5) in assets covering unit-linked technical provisions. The investment assets covering Mandatum Life’s original with-profit liabilities on 31 March 2017 totalled EUR 5.4 billion (5.4) at market values. The return on investments at fair values was 2.6 per cent (-0.1). The value of the investments covering the segregated group pension portfolio was EUR 1.2 billion (1.2), and the return on the portfolio’s investments at fair values was 0.9 per cent (0.7).
Mandatum Life Group’s total technical provisions increased to EUR 11.4 billion (11.3). The unit-linked technical provisions increased to a record EUR 6.6 billion (6.4) towards the end of the first quarter and accounted for 58 per cent (57) of the total technical provisions. With-profit technical reserves were EUR 4.8 billion (4.8). The insurance portfolios with a high technical rate of interest (4.5 and 3.5 per cent) decreased by EUR 54 million to EUR 2.8 billion in January–March 2017.
Overall, Mandatum Life has strengthened its technical reserves by EUR 284 million (273) in response to the low interest rate level. The figures do not include items related to the segregated portfolio. The discount rate for 2017 and 2018 is 0.25 per cent, and for 2019 it is 1.25 per cent. The technical rate of interest on the segregated group pension insurance portfolio is 0.50 per cent.
Key figures Q1/2017
Premiums written, own account: €229 million (244)
Profit before taxes: €54 million (53)
RoE: 24.3% (-4.4)
Solvency ratio: 181% (12/2016: 160)
Return on investments: 2.6% (-0.1) and on the segregated portfolio 0.9% (0.7)
Average number of staff: 532 (539)
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