Sampo’s first quarter underwriting results fell short of expectations, leading the group to adjust its outlook. However, despite this, the insurance company reported a better-than-expected profit before taxes, surpassing analysts’ predictions. The entire group’s profit before taxes was also higher than forecasted.
In January-March, Sampo reported a profit before taxes of 465 million euros, outperforming the consensus forecast of 421 million euros by analysts. If, Sampo’s largest subsidiary, saw an increase in profit before taxes from 337 million euros in the comparison period to 356 million euros, exceeding analysts’ expectations.
Sampo provided updated guidance for the full year, expecting a combined expense ratio between 83-85 percent, which 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 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 severe weather conditions that negatively impacted If’s business and reduced risk levels compared to last year’s business model performance metrics are positive indicators that showcase Sampo’s optimism about its risk management efforts and overall insurance operations performance as Group CEO Torbjörn Magnusson highlighted them during his remarks on this matter