Sampo (SAMPO) Q3 2024 earnings summary

Executive summary

• Nine-month underwriting profits rose 8% year-over-year, with 10% FX-adjusted top line growth and strong contributions from all business areas, especially the UK, despite challenging winter conditions and higher-than-normal large losses.

• Strategic transformation completed with the acquisition and integration of Topdanmark, with legal steps finalized and full integration expected by mid-next year.

• Strong UK results driven by LCP expansion, benign claims frequency, and targeted underwriting; Nordic performance resilient with high retention and digital sales growth.

• Profit before taxes increased 20% to EUR 1,340 million, supported by higher underwriting profit and strong investment results.

• Group completed its transformation initiated in 2020, with robust momentum in both Nordic and UK operations.

Financial highlights

• Group gross written premiums and brokerage income up 10% to EUR 8,870 million for 1-9/2024; UK GWP up 27% in local currency.

• Net profit for equity holders was EUR 973 million for 1-9/2024; operating EPS up 2% to EUR 1.68.

• Net investment income increased 67% to EUR 818 million, with total investment return at 4.9%.

• Hastings doubled its pre-tax profits to EUR 140 million, supported by cautious reserving and improved underwriting.

• Topdanmark contributed 7.5% organic growth, combined ratio 84.2%, and profit before taxes up 11% to EUR 159 million.

Outlook and guidance

• 2024 outlook for group combined ratio maintained at 83–85%, excluding potential one-off Topdanmark integration costs.

• Claims inflation and rate increases expected to remain stable over the next six months, with significant price hikes anticipated in Denmark in 2025.

• Financial targets for 2024–2026: operating EPS growth >7%, combined ratio <85%, solvency II ratio 150–190%, financial leverage <30%.