Mandatum (MANTA) Investor Update summary

Positioning and strategic direction

• Finnish life insurance market share 32%; corporate unit-linked group pension share 48% and corporate risk life share 31%.

• Client AuM €11.2bn and cumulative client net flows €1.4bn for 2021–H1 2023; H1 2023 profit before tax €80m.

• Strategy shifts toward capital-light fee-based growth in Institutional & Wealth Management, alongside a traditional with-profit book expected to generate stable cash flow.

• 70% of new Wealth Management sales involved Corporate sales personnel; 83% of Wealth Management AuM was connected to Corporate.

Growth opportunities

• Finnish unit-linked insurance savings grew at a 15% CAGR and market AuM at a 9% CAGR in 2008–2022; capital-light products identified as a growth opportunity.

• Growth priorities include expanding institutional and private wealth relationships, cross-selling to Corporate clients, and growing in Sweden and Denmark.

• International AuM was €1.5bn at H1 2023, with established institutional operations and a platform positioned for Nordic expansion.

• Medium-term annual net flows target is ≥5% of relevant client AuM; fee pricing and margins are to remain disciplined while the cost/income ratio improves.

Financial performance and capital

• H1 2023 fee result was €26m; fee income was €104m in 2020, €125m in 2021 and €126m in 2022.

• H1 2023 Solvency II ratio was 296% before planned related-party transactions and 232% including them; transactions included €430m of asset transfers from Sampo.

• H1 2023 organic capital generation was €140m at a 200% Solvency II ratio; total capital generation was €388m over the prior 1.5 years.

• Medium-term Solvency II ratio target is 170–200%; target is €500m in ordinary dividends over 2024–2026, with potential additional capital distributions.