Mandatum Life's result before taxes in January–June was EUR 73 million (69). The company's expense and risk result increased to EUR 17 million (15). The return on investment assets at fair value was 3.9 per cent (1.7). As the investment returns were higher than in the comparison year, the comprehensive income from investments at fair value after taxes increased to EUR 113 million (25).
Mandatum Life Group's premiums written on its own account grew 6 per cent to EUR 584 million (549). The increase in premiums written is attributed to the positive sales development in the investment solutions managed by Mandatum Life. Premiums written in the Baltic countries reached EUR 20 million (15). Mandatum Life's market share of direct business remained on a par with the levels of the comparison year. The company's overall market share in Finland stood at 18.6 per cent (18.8) at the end of June, and the market share in unit-linked insurance was 18.2 per cent (18.8).
Mandatum Life's solvency ratio developed favourably as a consequence of good comprehensive income and was 29.8 per cent (27.6). The parent company's solvency margin is nearly seven times the required minimum.
Mandatum Life Group's technical reserves amounted to EUR 9.0 billion (8.5). Unit-linked reserves, at EUR 5.1 billion (4.6), surpassed the EUR 5 billion mark for the first time ever. With-profit technical reserves were EUR 3.9 billion (3.9). The downside of the positive first half of the year was the steep decline in interest rates. The low interest rate level is challenging due to the interest rate guarantees included in the with-profit portfolio. For that reason, Mandatum Life increased the amount of the reserve for decreased discount rates included in with-profit technical reserves to EUR 161 million (146).
Mandatum Life and Suomi Mutual Life Assurance Company in March 2014 announced the transfer of Suomi Mutual's with-profit group pension portfolio to Mandatum Life. The transfer was approved by the annual general meetings of both companies and the necessary permits have been granted by the Financial Supervisory Authority. The portfolio transfer is scheduled to take place on 30 December 2014. The final amount of the transferred assets will be established in connection with the portfolio transfer, but on 31 December 2013, the amount was estimated at roughly EUR 1.3 billion.
Key figures H1/2014
Premiums written, own account: €584 million (549)
Profit before taxes: €73 million (69)
Return on equity: 17.9% (4.6)
Expense ratio: 105.9% (113.7)
Solvency ratio: 29.8% (12/2013: 27.6)
Return on investments: 3.9% (1.7)
Average number of staff: 522 (557)
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