MANDATUM GROUP’S RESULT 1–6/2023

Press releases 9.8.2023 at 10:00 AM EEST

The positive momentum for Mandatum seen in the first quarter continued during the second quarter. Unit-linked and third-party assets under management increased to EUR 11.2 billion at the end of June 2023, up from EUR 10.8 billion at the end of the first quarter and from EUR 10.3 billion at year-end 2022. Net flows amounted to EUR 448 million in the first half, driven mainly by solid flows with institutional and wealth management customers.

Mandatum’s fee result from unit-linked and third-party assets amounted to EUR 26 million (18) in the first half of 2023. The increase was partly driven by a short-term volatility related to the prior year result. The net finance result, generated from the with-profit book, increased to EUR 57 million (23) and was supported by an investment return of EUR 120 million, representing 2.9 per cent (1.7). Mandatum’s fixed income mark-to-market yield was 5.9 per cent at the end of June 2023, up from 5.7 per cent at end of the first quarter.

The result related to risk policies stood stable at EUR 3 million (4). The Mandatum profit before taxes amounted to EUR 80 million and net profit to EUR 63 million.

Mandatum Group’s Solvency II ratio amounted to 296 per cent at the end of June 2023, up from 284 per cent at the end of March 2023 and from 266 per cent at the year-end 2022. The increase in the solvency coverage was primarily driven by reduced equity exposure. Own funds amounted to EUR 2,378 million and the SCR to EUR 803 million at the end of June 2023. The expected repayment of EUR 100 million RT1 capital to Sampo was deducted from own funds. The post-demerger pro-forma Solvency II ratio, including balance sheet restructuring and dividend accrual based on the last dividend of EUR 150 million paid to Sampo, was approximately 225 per cent at the end of June 2023.

Statement by Group CEO Petri Niemisvirta:

"The first half of the year was successful for Mandatum. This was especially driven by the all-time highest net cash flow of capital light fee business. A high net flow indicates the suitability of the product portfolio to the market situation, excellent distribution ability and, of course, customer satisfaction. Sales went well with institutional and asset management customers, and at the same time redemptions were small.

The company's solvency capital was historically high at the end of June. We reduced the investment risk significantly during the first half of the year, and with the expected reduction in our with profit technical provisions, the capital requirement also continued to decrease.

Overall, our business areas developed as planned. We are well prepared for the planned listing.”

Mandatum Group’s key figures 1–6/2023

(EUR million, unless otherwise indicated) 1.1.–30.6.2023 1.1.–30.6.2022 1.1.–31.12.2022
Total AuM of unit-linked assets and funds  11,223 10,293 10,302
Total assets under management (AuM) 20,605 19,568 19,219
Net flows to unit-linked and funds  448 254 499
Profit before taxes * 80.2 34.6 75.7
Comprehensive income after taxes 63.3 28.3 58.0
Investment return, %  2.9 -7.8 -9.0
Solvency II ratio, %  296 258 266
Return on equity (ROE), % (based on comprehensive income) 7.7 3.3 3.5
(Unaudited)*The comparison year's result before taxes is not comparable, due to the different accounting practice of the investments. The comprehensive result is comparable

Mandatum

Mandatum is a major financial services provider that combines expertise in money and life. Mandatum offers customers a wide array of services covering asset and wealth management, savings and investment, compensation and rewards, pension plans and personal risk insurance. Mandatum offers services to corporate customers, retail customers as well as institutional and wealth management customers. At the center of Mandatum's success are highly skilled personnel, strong brand, and investment track record. www.mandatum.fi/en 

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