Mandatum Life’s result before taxes grew to EUR 73 million (54) in January–March 2018. Comprehensive income after taxes, taking into account changes in market values, decreased to EUR –19 million (85). The return on equity (RoE) was –5.8 per cent (24.3). The expense result in the first quarter was EUR 7 million (8), and the risk result was EUR 5 million (8). Premiums written on Mandatum Life’s own account increased to EUR 243 million (229) in the first quarter of 2018.
Measured at market values, Mandatum Life’s investment assets at the end of March totalled EUR 6.0 billion (6.6), excluding the EUR 6.9 billion (7.2) in assets covering unit-linked technical provisions. The investment assets covering Mandatum Life’s original with-profit liabilities on 31 March 2018 totalled EUR 4.9 billion (5.2) at market values. The return on investment assets at fair values was –0.7 per cent (2.6) in January–March 2018. The value of the investments covering the segregated portfolio was EUR 1.1 billion (1.1), and the return on the segregated portfolio’s investment assets at fair values was –0.7 per cent (0.9) in January–March 2018.
Mandatum Life’s total technical provisions amounted to EUR 11.4 billion (11.6) on 31 March 2018. Unit-linked technical provisions decreased to EUR 6.9 billion (7.1), following the decline in the market values of assets covering the technical provisions. The unit-linked technical provisions accounted for 61 per cent (58) of the total technical provisions. At the end of the first quarter of 2018, the with-profit technical provisions amounted to EUR 4.5 billion (4.8). The insurance portfolios with a high technical rate of interest (4.5 and 3.5 per cent) decreased by EUR 64 million to EUR 2.6 billion in January–March 2018.
Overall, Mandatum Life has strengthened its technical provisions by EUR 301 million (325) in response to the low interest rate level. The figures do not include items related to the segregated portfolio. The discount rate for 2018, 2019 and 2020 is 0.25 per cent, and for 2021 it is 2.75 per cent. The technical rate of interest on the segregated group pension insurance portfolio is 0.50 per cent. The technical provisions were not increased in the first quarter of 2018.
Key figures 1–3/2018
Premiums written, own account: €243 million (229)
Profit before taxes: €73 million (54)
RoE: –5.8% (24.3)
Solvency ratio: 186% with transitional measures (12/2017: 182) and 135% without transitional measures (12/2017: 127)
Return on investment assets at fair values: –0.7% (2.6) and for the segregated portfolio –0.7% (0.9)
Average number of staff: 530 (532)
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