Mandatum Group’s result reached an excellent level, driven by successful investment operations, and the operational result was the highest in the Group’s history.
Mandatum Group’s profit before taxes grew to EUR 247 million (154) in January–December 2021. Comprehensive income after taxes, taking into account changes in market values, rose to EUR 303 million (213). The profit for the financial year was reduced by the EUR 15 million (3) group contribution that Mandatum Asset Management Ltd paid to Sampo plc. The return on equity was 18.4 per cent (14.4). Mandatum’s operational result (Mandatum Life’s expense result and Mandatum Asset Management’s result) rose to EUR 45 million (27) in January–December. The risk result was EUR 43 million (38).
Premiums written on the company’s own account increased to EUR 1,367 million (1,051). Premiums written on unit-linked insurance amounted to EUR 1,278 million (960).
The return on Mandatum Life’s investment assets at fair value was 10.2 per cent (6.5) in 2021, and the return on the segregated portfolio’s investment assets at fair value during the same period was 2.9 per cent (1.5).
Unit-linked and other client assets under Mandatum’s management increased by 21 per cent to EUR 11.1 billion (9.2) in January–December. Growth was driven by net subscriptions, which totalled roughly EUR 600 million, and favourable market development.
The with-profit technical provisions decreased according to plan in January–December and amounted to EUR 3,247 billion (3,521) at year-end. The insurance portfolios with a high technical rate of interest (4.5 and 3.5 per cent) decreased by EUR 0.2 billion to EUR 1.7 billion in January–December.
Overall, Mandatum Life has strengthened its technical provisions by EUR 274 million (218) in response to the low interest rate level. The figure does not include items related to the segregated portfolio. The discount rate for 2022–2025 is 0.25 per cent, and for 2026 it is 0.75 per cent. The technical rate of interest on the segregated group pension insurance portfolio is 0.00 per cent.
At the end of December 2021, Mandatum Life’s solvency ratio was 190 per cent (188 12/2020). Mandatum Group’s solvency ratio is around the same level.
In 2021, Mandatum Life paid out a total of EUR 382 million (395) in pensions to approximately 57,000 pensioners.
The result presented here deviates from the figures reported by Sampo Group with respect to the real estate valuation principle, which increased the profit before taxes by EUR 44 million at the Sampo Group level.
Statement by CEO Petri Niemisvirta
“2021 was a successful and interesting year for Mandatum Group in many respects. The Group’s result reached an excellent level, driven by successful investment operations, and the operational result was the highest in the Group’s history.
The investment operations of Sampo Group and Mandatum Life Group were combined into a dedicated business under Mandatum Group, and Mandatum Asset Management became a sister company of Mandatum Life. We can now offer our customers an even wider range of leading asset management services in the Nordic countries. We also manage the assets of the entire Sampo Group.
In 2021, Mandatum also made some business acquisitions. In May, we announced that we are acquiring Nordhaven Corporate Finance’s business focusing on equity-based incentive plans. With Mandatum Incentives now part of Mandatum Life, we have the most extensive offering of compensation and reward services in the market. In the summer, Mandatum Asset Management acquired the shares of the real estate fund management company Trevian Funds AIFM, and the company, currently operating under the name of Mandatum AM AIFM Ltd, further complements Mandatum’s real estate investment expertise.
In 2021, the Group’s customer assets rose to EUR 11.1 billion (9.2) as a result of success in investment operations and growth in customers’ net subscriptions. The growth in net subscriptions can be attributed to Mandatum Life’s and Mandatum Asset Management’s successful collaboration, which enabled us to increase awareness of our co-investment model and our product and service offering even more broadly. We had a total of EUR 29.3 billion in assets under management.
Although the coronavirus pandemic continued to cast a shadow over the entire year, its impacts on business were minor and could mainly be seen in our ways of working. We responded to our customers’ needs very successfully last year, and this is reflected in our record-high customer satisfaction and extremely good customer retention.
Mandatum, renewed and reinforced during the year, creates significant added value for its stakeholders by combining special expertise in money and life. We are more than the sum of our parts,” says Mandatum Group’s President and CEO Petri Niemisvirta.
Mandatum Group key figures 2021
Premiums written, own account: EUR 1,367 million (1,051)
Result before taxes: EUR 247 million (154)
Return on equity: 18.4% (14.4)
Solvency ratio: 190% (188 12/2020)
Return on investments: 10.2% (6.5) and on the segregated portfolio 2.9% (1.5)
Average number of staff: 638 (576)
Mandatum’s result in its entirety is available at: www.sampo.com/result
Mandatum Holding Ltd’s subsidiaries are Mandatum Life Insurance Company Limited and Mandatum Asset Management Ltd. Mandatum Life (Mandatum Life Insurance Company Limited) offers services in wealth management, rewards and compensation, retirement plans and personal insurance to private and corporate customers. Mandatum Asset Management engages in fund business and provides Sampo Group with discretionary and consultative wealth management and asset management services as a new asset management company.
Petri Niemisvirta, CEO: email@example.com, tel. +358 10 516 7200
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