Sampo’s Q1 Underwriting Result Falls Short of Forecasts, But Profit Beats Expectations
Sampo, a Finnish insurance group, reported a better-than-expected profit before taxes for the first quarter, despite underperforming on its underwriting results. The group’s overall profit before taxes was also higher than forecasted.
Despite the shortfall in underwriting results, Sampo has refined its outlook for the full year. The company expects its combined expense ratio to be between 83-85 percent, higher than their previous outlook of less than 85 percent for 2024. If, Sampo’s largest subsidiary, saw an increase in profit before taxes from 337 million euros in the comparison period to 356 million euros, outperforming analysts’ expectations.
In January-March, Sampo reported a profit before taxes of 465 million euros, surpassing the consensus forecast of 421 million euros by analysts. Hastings, a British non-life insurer owned by Sampo, also reported better-than-expected results for the first quarter. Sampo’s joint venture Top Denmark also published better-than-expected results for the first quarter.
Looking ahead, Sampo aims for 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 concerns about risk management efforts and severe weather conditions affecting insurance operations globally, Group CEO Torbjörn Magnusson remains optimistic about Sampo’s future performance and ability to achieve its goals.