Sampo, an insurance group headquartered in Finland, reported a better-than-expected profit before taxes for the first quarter of 2023. Despite falling short of forecasts for underwriting results, the group’s overall financial performance exceeded expectations.
In January-March 2023, Sampo reported a profit before taxes of 465 million euros, higher than analysts’ consensus forecast of 421 million euros. Sampo’s largest subsidiary, If, also saw an increase in profit before taxes from 337 million euros in the comparison period to 356 million euros, outperforming analysts’ expectations.
Sampo also provided updated guidance for the full year, expecting a combined expense ratio to be between 83-85 percent. This is higher than their previous outlook of less than 85 percent for 2024. The group’s underwriting result decreased from the previous year to 260 million euros, below analysts’ predictions.
Hastings, a British non-life insurer owned by Sampo, reported a profit before taxes of 26 million euros, higher than the comparison period’s 10 million euros. Sampo’s joint venture Top Denmark also published better-than-expected results for the first quarter.
Looking ahead, Sampo aims to achieve an average annual growth of operating profit per share of more than seven percent from 2024-2026. The group also targets a combined expense ratio of less than 85 percent and accumulating over four billion euros in available capital. Severe winter weather conditions in the Nordic countries impacted the group’s underwriting result and combined expense ratio in the first quarter, with compensation costs totaling around 100 million euros.
Despite these challenges and unexpected changes in forecasting results due to severe winter weather conditions in some regions where they operate, Sampo remains optimistic about its risk management efforts and overall performance of its insurance operations as stated by Group CEO Torbjörn Magnusson who highlighted both challenges faced and positive developments reducing risk levels at their subsidiaries such as If.
