Despite a challenging market, Mandatum Group’s solvency and operational result remained strong, and net subscriptions were at a very good level.
Mandatum Group’s result before taxes for 2022 was EUR 202 million (247). The profit for the financial year is reduced by a EUR 29 million (15) group contribution paid to Sampo plc in the fourth quarter. Comprehensive income after taxes, taking into account changes in market values, was EUR -269 million (303). The return on equity (RoE) was -17.3 per cent (18.4). Mandatum’s operational result (Mandatum Life’s expense result and Mandatum Asset Management’s result) rose to EUR 49 million (45) in 2022. The risk result decreased to EUR 32 million (43).
The return on Mandatum Life’s investment assets at fair values in 2022 was -9.0 per cent (10.2). The primary reason behind the negative return has been the geopolitical situation and the tightening of monetary policy as a result of accelerating inflation, leading to a significant rise in market rates and a decline in the equity markets. During the same period, the return on the segregated portfolio’s investment assets at fair values was -6.9 per cent (2.9).
Unit-linked and other client assets under Mandatum’s management fell -7.2 per cent to EUR 10.3 billion (11.1) in January–December. Despite the challenging market environment, Mandatum’s subscriptions were at a record high, and net subscriptions were positive in every quarter of the year. Net subscriptions for the full year amounted to EUR 538 million.
The with-profit technical provisions decreased according to plan in January–December and amounted to EUR 3.0 billion (3.2) at the end of the year. The insurance portfolios with a high technical rate of interest (4.5 and 3.5 per cent) shrunk by EUR 143 million to EUR 1.6 billion (1.7).
At the end of December 2022, Mandatum Group’s solvency ratio under the Solvency II principles was 266 per cent (192 12/2021).
In 2022, Mandatum Life paid out a total of EUR 395 million (382) in pensions to approximately 56,000 pensioners.
Statement by CEO Petri Niemisvirta:
2022 included several successes for Mandatum. The company’s solvency ratio continued to strengthen in 2022, driven by, among other factors, a sharp rise in interest rates. The strong solvency position puts Mandatum in an excellent position to operate also in an uncertain market environment.
Customers’ net subscriptions were at a very strong level, at approximately EUR 538 million, which speaks to Mandatum’s position as Finland’s leading provider of financial services. Alternatives and corporate bonds, in particular, attracted customers in a changed market and interest rate environment. Our new investment product launches were also positively received among our institutional clients. We launched SFDR Article 8 and 9 products, which were highly successful in their fundraising.
The sale of risk insurance especially to corporate clients was successful in 2022. As an example, Mandatum concluded its largest-ever risk insurance deal for the entire Finnish personnel of a major company. Strong growth continued also in personnel funds, with a record 52 new funds being established in Mandatum in 2022. This represents 83% of all new personnel funds established in Finland last year.
Customers’ trust in our expertise remained high, despite the fact that the war has undermined the feeling of security and transformed the economic environment, causing a great deal of concern. We received positive feedback especially on our events and interactions with customers.
A significant factor behind our high customer satisfaction is our thriving corporate culture. One of Mandatum’s important goals, employee satisfaction, remained strong. This was reflected in the Future Workplaces certificate we received based on the Siqni personnel survey. Organizations earn the certificate if their corporate culture is managed with an exceptionally high level of employee insight.
In 2022, Mandatum made progress towards achieving its growth targets as a wealth management company, and we head into this year in an excellent market position. Our comprehensive service offering leans on our highly skilled wealth management and reward and compensation experts and networks. Our strong solvency and steady cash flow are further factors contributing to the success of our business.
Mandatum Group key figures 2022
Premiums written, own account: EUR 1,390 million (1,367)
Result before taxes: EUR 202 million (247)
RoE: -17.3% (18.4)
Solvency ratio: 266% (192 12/2021)
Return on investments: -9.0% (10.2) and on the segregated portfolio -6.9% (2.9)
Average number of staff: 663 (638)
Mandatum’s result in its entirety is available at: www.sampo.com/result
Mandatum Group
Mandatum is a solvent and respected wealth management group whose mission is to create significant added value for its customers and stakeholders by combining special expertise in money and life. Mandatum offers a wide array of services covering asset and wealth management, saving and investment, compensation and rewards, pension plans and personal risk insurance. Mandatum Holding Ltd’s subsidiaries are Mandatum Life Insurance Company Limited (Mandatum Life) and Mandatum Asset Management Ltd.
www.mandatum.fi
Additional information:
Petri Niemisvirta, CEO: petri.niemisvirta@mandatum.fi, tel. +358 10 516 7200
Jukka Kurki, CFO: jukka.kurki@mandatum.fi, tel. +358 50 424 6630
Niina Riihelä, Senior Vice President, Marketing and Communications: niina.riihela@mandatum.fi, tel. +358 40 728 1548