Mandatum (MANTA) Q4 2024 earnings summary

Executive summary

• Assets under management (AuM) rose 17% year-over-year to EUR 14 billion, with record net flow of EUR 983 million, representing 8% of AuM and exceeding the 5% target.

• Fee result increased 27% year-over-year to EUR 67 million, driven by strong net flows, positive market returns, and improved cost efficiency.

• Profit before taxes for 2024 was EUR 203 million, down 4% year-over-year, mainly due to actuarial assumption updates and lower net finance result.

• Solvency II ratio at year-end was 210%, well above the target range, supporting a total dividend proposal of EUR 0.66 per share.

• Board proposes a total dividend of EUR 0.66 per share (ordinary and extra), reflecting strong capital generation, liquidity, and performance.

Financial highlights

• Q4 fee result up 39% year-over-year to EUR 18.6 million; full-year fee result up 27% to EUR 67 million.

• Net flow for Q4 was EUR 392 million, up 86% year-over-year; full-year net flow at EUR 983 million, up 30% year-over-year.

• Net finance result for 2024 was EUR 136 million, down 9% year-over-year; Q4 investment return 0.3% due to weaker markets.

• EPS for 2024 was EUR 0.33, up from EUR 0.32 in 2023; organic capital generation per share at EUR 0.44.

• Cost/income ratio improved to 58% from 66% year-over-year, reflecting operational leverage and scalability.

Outlook and guidance

• Fee result expected to increase in 2025 if market conditions remain stable; with-profit portfolio expected to decrease.

• 5% net flow target remains relevant but more challenging as AuM grows.

• Cost reduction measures (17 FTEs) and change negotiations affecting about 150 employees to support future cost efficiency.

• Unwinding cost expected to decrease to around EUR 12 million per quarter in 2025.

• Results will continue to be impacted by periodic updates to actuarial assumptions.