Sampo reported lower-than-expected underwriting results for the first quarter, leading the group to revise its forecasts. However, the insurance company still managed to exceed analysts’ expectations with a better-than-anticipated profit before taxes. The group’s overall profit before taxes was also higher than forecasted.
In January-March, Sampo’s non-life insurer If saw an increase in profit before taxes from 337 million euros in the comparison period to 356 million euros, beating analysts’ expectations. Hastings, a British non-life insurer owned by Sampo, also reported better-than-expected results for the first quarter.
Sampo 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. Severe winter weather conditions in the Nordic countries impacted Sampo’s underwriting result and combined expense ratio in 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. Despite facing challenges due to severe weather conditions and other factors, Sampo remains optimistic about its risk management efforts and the overall performance of its insurance operations. Group CEO Torbjörn Magnusson highlighted both the challenges faced and positive developments in reducing risk levels at If.
