Good result and record share of unit-linked insurance savings
Mandatum Life’s result before taxes for January–June 2019 was EUR 137 million (313).
The figure for the comparison period includes a EUR 197 million lump-sum payment related to a co-operation agreement that was concluded with Danske Bank in the second quarter of 2018.
Comprehensive income after taxes, taking into account changes in market values, rose to EUR 190 million (185). The return on equity was 30.1 per cent (25.9). The fair value reserve grew in January–June 2019 to EUR 431 million (351). The expense result in the first half of the year was EUR 7 million (13), and the risk result was EUR 10 million (10).
Premiums written on Mandatum Life’s own account totalled EUR 529 million (528) in January–June 2019. Premiums written on unit-linked insurance amounted to EUR 466 million (475).
The return on Mandatum Life’s investment assets at fair value was 6.1 per cent (0.4) in January–June 2019, and the return on the segregated portfolio’s investment assets at fair values during the same period was 4.5 per cent (–0.5).
Measured at market values, Mandatum Life’s investment assets at the end of June 2019 totalled EUR 5.5 billion (5.6), excluding the EUR 7.5 billion (7.0) in assets covering unit-linked technical provisions.
The investment assets covering Mandatum Life’s original with-profit liabilities on 30 June 2019 totalled EUR 4.5 billion (4.6) at market values. The value of the investments covering the segregated portfolio was EUR 1.0 billion (1.1).
Mandatum Life’s total technical provisions amounted to EUR 11.6 billion (11.2). At the end of June 2019, unit-linked technical provisions amounted to EUR 7.5 billion (7.0), representing 64 per cent (62) of the total technical provisions. At the end of June, the with-profit technical provisions amounted to EUR 4.1 billion (4.2). The insurance portfolios with a high technical rate of interest (4.5 and 3.5 per cent) shrunk by EUR 130 million to EUR 2.3 billion in January–June 2019.
Overall, Mandatum Life has strengthened its technical provisions by EUR 242 million (232) in response to the low interest rate level. The figures do not include items related to the segregated portfolio. The discount rate for the rest of 2019 and for 2020 and 2021 is 0.25 per cent. The discount rate for 2022 was lowered in the second quarter of 2019 by 0.25 per centage points to 3.25 per cent. The technical rate of interest on the segregated group pension insurance portfolio is 0.50 per cent.
At the end of June 2019, Mandatum Life’s solvency ratio was 155 per cent (176% in 12/2018), and without the application of the transitional measures, it was 119 per cent (131% in 12/2018).
Mandatum Life’s key figures 1–6/2019
Premiums written, own account: EUR 529 million (528) Result before taxes: EUR 137 million (313)
RoE: 30.1% (25.9)
Solvency ratio: 155% (176 in 12/2018), and without transitional measures 119% (131 in 12/2018)
Return on investments: 6.1% (0.4) and on the segregated portfolio 4.5% (–0.5)
Average number of staff: 554 (529)
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