Sampo Group’s results for January–June 2025

Sampo plc, half-year financial report, 6 August 2025 at 8:30 am EEST

Sampo Group’s results for January–June 2025

• Like-for-like top-line growth of 8 per cent, supported by continued strong momentum in the private businesses in the Nordics and in the UK.
• Favourable claims environment throughout the first half and positive underlying trend in the Nordics supported underwriting margins, leading to an improved combined ratio of 83.6 per cent.
• The underwriting result increased by 25 per cent on a currency adjusted basis to EUR 729 million on the back of strong growth and margin improvement.
• Operating EPS strengthened by 13 per cent to EUR 0.25, driven by the strong underwriting performance offsetting lower investment returns and an increase in the share count.
• Following the strong second quarter performance, the outlook for 2025 underwriting result has been increased to EUR 1,425-1,525 million from 1,400-1,500 million.
• Sampo intends to launch a new EUR 200 million share buyback programme funded by capital generated in 2024.
• Solvency II coverage stood at 174 per cent, net of dividend accrual and planned buyback programme, and financial leverage amounted to 26.1 per cent.

“Sampo continued to deliver excellent results in the second quarter on the back of growth in attractive areas, disciplined underwriting, and efficiency gains. Our private operations in the Nordics and the UK stood out with like-for-like premium growth of 9 per cent and 13 per cent, respectively, as they capitalised on strong customer propositions”, says         
Torbjörn Magnusson, Sampo Group CEO.

Key figures

Gross written premiums and insurance revenue include broker revenues. Like-for-like GWP growth is calculated by using constant currency rates and it is adjusted to exclude potential technical items affecting comparability, such as portfolio transfers, changes in inception dates for large contracts, and changes in accounting methods. Net profit for the comparison period refers to Net profit for the equity holders. Per share figures for the comparison period are adjusted for the share split in February 2025. The figures in this report have not been audited.

GROUP CEO’S COMMENT

Sampo continued to deliver excellent results in the second quarter with a 21 per cent increase in underwriting profits to EUR 393 million driven by premium growth of 8 per cent, underlying margin expansion, and benign claims trends. Operating EPS grew by 16 per cent to EUR 0.14 per share, and we are announcing the launch of a new EUR 200 million share buyback programme.

Although much has changed in the last two decades, our success continues to rest largely on the same principles now, in what is my last quarter as Group CEO, as it did when I became CEO of If P&C in 2002. We create value through technical P&C insurance excellence, disciplined underwriting, and a commitment to delivering constant operational and productivity improvements.

In the early 2000s, our focus was very much on improving profitability in the then relatively newly formed If P&C, which was racking up large underwriting losses. Our challenging starting point meant that we could implement major changes of the type only possible in a crisis, enabling the creation of the first Nordic financial services firm with a truly unified business and culture across the region. We are now capitalising on the advantages that this unique position affords us and the investments we have subsequently made, particularly in digital capabilities.

With margins at attractive levels, our focus has increasingly turned to organic growth, as evidenced by the 9 per cent GWP increase achieved in our Private Nordic business in the second quarter, accompanied by an 81.7 per cent combined ratio achieved without the help of reserve releases. The growth was broad-based across geographies and products, and it is underpinned by a 4th consecutive quarter of improving customer retention rates in the Private Nordic business and solid growth in digital sales.

In Commercial, we saw a 30 per cent increase in digital sales where the customer completed the full purchasing journey online in the first half, which combined with strong development in Norway and continued high retention to drive 6 per cent top-line growth. Although digital sales represent a modest share of the total portfolio at this stage, it is clear that SMEs are following retail customers online, where earlier investments ensure that we stand ready to receive them.

In 2020, our pursuit for opportunities to create value through operational excellence brought us to the UK and the acquisition of Hastings. This step represented a focused entry into the digital UK personal lines insurance market through a unique operator with clear competitive advantages that we could build on. Since the acquisition, we have more than doubled our UK top-line to EUR 2.6 billion in 2024 and added over a million policies, while delivering returns on capital on par with those in our Nordic business. The second quarter was no exception, as we saw 13 per cent like-for-like premium growth year-on-year, added 154,000 policies in the quarter, and increased underwriting profits by 22 per cent.

Meanwhile, developments in the Industrial Nordic segment, which houses our largest corporate customers, shows that we maintain our strong underwriting discipline even as we take opportunities to grow. As a result of de-risking of large property exposures and the non-renewals of a few large accounts that did not meet our profitability objectives, we saw Industrial insurance revenue fall by 8 per cent in the first half. The benefits of our discipline were evident in the 80 per cent combined ratio reported for the period.

Industrial was not alone in delivering excellent margins – in fact, profitability was high across the business, driving a solid group combined ratio of 82.6 per cent for the second quarter. In the Nordics, we improved the underlying risk ratio and cost ratio by a total of 60bps combined year-on-year, as a result of disciplined pricing, fading claims inflation, our usual cost efficiency efforts, and delivery on synergies from the integration of Topdanmark. We expect the latter to accelerate in the second half, as we progress further in our plans. While there has been a clear benefit from benign weather and large claims this year, the quality of our result was solid as we added further to our reserve strength. Following the strong result, we have raised our 2025 outlook for the underwriting result to EUR 1,425–1,525 million, representing 8–16 per cent growth on 2024.

Returning to strategy, the simplification of the formerly conglomerate Sampo Group structure since 2020 has laid a strong foundation for future value creation centered on operational excellence. My successor as Group CEO, Morten Thorsrud, is ideally placed to ensure that the Group capitalises on this opportunity. While in charge of If P&C, he has not only delivered excellent financial performance but also continued to increase investment in the operational capabilities that underpin our competitive advantages, while actively pursuing Nordic organic growth opportunities.

Finally, I note the new EUR 200 million share buyback programme, which may be increased in the event of a sale of legacy assets during the second half. The discipline we have shown in managing capital over the last few years illustrates our commitment to monetising our operational excellence in the best possible way.

In summary, I am delighted to hand over the reigns of Sampo on a high note and into the safe hands of excellent insurance professionals that I know will take it to new heights.

Torbjörn Magnusson
Group CEO

OUTLOOK FOR 2025

The second quarter result benefited from favourable weather and large claims relative to normal levels. Taking these factors into consideration, Sampo has decided to modestly adjust its outlook for 2025.

• Group insurance revenue: EUR 8.9–9.1 billion (from EUR 8.8–9.1 billion), representing growth of 6–9 per cent year-on-year.
• Group underwriting result: EUR 1,425–1,525 million (from EUR 1,400–1,500 million), representing growth of 8–16 per cent year-on-year.

Any forecast of Sampo’s underwriting result is subject to estimates for weather claims, large claims, prior year development, and certain other items that may vary periodically and are out of Sampo’s control, meaning regular updates of the forecast are needed to reflect actual outcomes. Moderate deviations against normal and budget levels are typical on a quarterly basis and Sampo intends to broadly reflect these in the outlook statement in its quarterly reports. In addition to the underwriting result, Sampo derives a material share of its earnings from returns on its investment portfolio and insurance finance income and expense, meaning changes in the outlook cannot be assumed to translate one-for-one into net profit. Sampo does not provide an outlook for its net financial result.

The outlook for 2025 is consistent with Sampo’s 2024–2026 financial targets of delivering a combined ratio below 85 per cent annually and operating EPS growth of more than 7 per cent annually on average. The outlook is subject to uncertainty related to occurrence and estimation of the cost of P&C claims, foreign exchange rates, and competitive dynamics. Revenue forecasts, in particular, are subject to competitive conditions, which may change rapidly in some areas, such as the UK motor insurance market. The revenue and underwriting profit figures in the outlook are based on currency exchange rates as of the latest reporting date.

CHANGE OF GROUP CEO

On 18 June 2025, Sampo announced that Torbjörn Magnusson, the CEO of Sampo Group has informed the Sampo Board of his intention to retire from his role. The Board of Directors appointed Morten Thorsrud, the CEO of Sampo’s largest operating entity, If P&C, as his successor. The change in Group CEO will become effective on 1 October 2025, after which Magnusson will stay within the group as a Senior Advisor until 31 December 2025.

SAMPO PLC
Board of Directors

The Interim Statement for January-June 2025 in its entirety, the Investor Presentation and a video review with Group CEO Torbjörn Magnusson are available at www.sampo.com/result.

A conference call for investors and analysts will be arranged today 6 August at 11:00 am Finnish time (9:00 am UK time).

To ask questions, please join the teleconference by registering using the following link: https://palvelu.flik.fi/teleconference/?id=50051476

The conference call can also be followed live at www.sampo.com/result. A recorded version and a transcript will later be available at the same address.

For further information, please contact:

Knut Arne Alsaker, Group CFO, tel. +358 10 516 0010
Sami Taipalus, Head of Investor Relations, tel. +358 10 516 0030
Maria Silander, Communications Manager, Media Relations, tel. +358 10 516 0031

Distribution:
Nasdaq Helsinki
Nasdaq Stockholm
Nasdaq Copenhagen
London Stock Exchange
FIN-FSA
The principal media
www.sampo.com

Attachment

• Sampo Group’s Half-Year Financial Report 2025