Despite Challenges, Sampo Reports Better-Than-Expected Profit Before Taxes in Q1

In the first quarter, Sampo’s underwriting results fell short of forecasts, but the group still managed to report a better-than-expected profit before taxes. If, Sampo’s largest subsidiary, saw an increase in profit before taxes from 337 million euros in the comparison period to 356 million euros.

Sampo also provided updated guidance for the full year, expecting a combined expense ratio between 83-85 percent, 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.

Despite these challenges, Sampo remains optimistic about its risk management efforts and the overall performance of its insurance operations. Group CEO Torbjörn Magnusson highlighted the impact of severe winter weather conditions on If’s business in January-March. However, he also noted both the challenges faced and positive developments in reducing risk levels.

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. 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. Additionally, Sampo’s joint venture Top Denmark published better-than-expected results for the first quarter.

Overall, despite underperforming forecasted underwriting results and having higher expenses than expected due to severe winter weather conditions in Nordic countries, Sampo was able to report better-than-expected profit before taxes and exceeded analysts’ expectations for overall group performance.