Mandatum (MANTA) CMD 2025 summary

Strategic direction and growth priorities

• New 2025–2028 targets include ROE above 20%, capital-light profit before taxes CAGR above 10%, cumulative shareholder payouts exceeding EUR 1 billion, and a solvency margin between 160%-180%.

• Focus on expanding Nordic asset management, accelerating Finnish wealth management, leveraging corporate market leadership, and improving operational efficiency to reduce the cost-income ratio.

• Growth will be driven by scalable capital-light businesses, with investments in people, sales, new products, and measured international expansion, especially in Sweden, Denmark, and select European markets.

• ESG and responsible investment remain integral, with strong external ratings and embedded processes across all business lines.

• The strategy aims to transform into a more capital-efficient, fee-generating group, reducing reliance on with-profit business.

Financial performance and capital management

• Assets under management have grown 16% annually over the last three years, with improved cost-income ratio from 67% to 55% since listing.

• Capital-light profit before taxes nearly doubled since 2022, with stable profits supported by de-risking and increased interest rate hedging.

• With-profit liabilities are forecast to halve over six years, supporting capital release and reducing volatility, with a shift to a largely fixed income portfolio.

• Over EUR 1 billion in shareholder payouts planned, primarily from earnings, as the business transitions to a high-ROE, fee-generating model.

• Cost growth is targeted at 1% annually, with ongoing digitalization, organizational streamlining, and legacy IT decommissioning to support efficiency.

Business segment strategies

• Institutional and Wealth Management is the main growth engine, aiming to double private wealth market share and accelerate international asset management growth, especially in credit and alternatives.

• Corporate business leverages strong market share in group pension, risk insurance, and personnel funds, focusing on upselling, new customer acquisition, and increased sales productivity.

• With-profit business run-off strategy continues, focusing on de-risking, capital release, and stable net finance results to enable substantial dividend capacity.

• Product development will balance excellence with expansion, using external partners where needed, and maintaining a disciplined approach to margin and risk.

• Recruitment emphasizes entrepreneurial, experienced, and networked professionals, with variable compensation aligned to shareholder targets.