Sampo (SAMPO) Q1 2025 earnings summary

Executive summary

• Achieved strong growth in Nordic and U.K. markets, with Q1 2025 gross written premiums up 9% year-over-year to EUR 3,616 million, driven by robust private segment performance and digital sales rising 20%.

• Underwriting result increased 30% year-over-year to EUR 336 million, supported by a milder winter, risk ratio improvements, and positive margin trends.

• Topdanmark integration delivered higher-than-expected cost synergies, raising the synergy target to EUR 140 million by 2028 and increasing the annual cost ratio reduction ambition to 40 basis points.

• Operating EPS rose 9% to EUR 0.11, and Solvency II coverage improved to 180%.

• Full-year growth and underwriting result outlooks were raised, with insurance revenue guidance up by EUR 100 million and underwriting result by EUR 50 million.

Financial highlights

• Net insurance revenue guidance for 2025 raised to EUR 8.8–9.1 billion, with underwriting result expected at EUR 1.4–1.5 billion, both up by EUR 50 million.

• Combined ratio improved to 84.6% from 87.1% in Q1 2024, reflecting disciplined underwriting and favorable weather.

• Net investment income declined to EUR 80 million (from EUR 295 million), mainly due to mark-to-market losses on equities.

• Profit before taxes was EUR 377 million, down from EUR 465 million, as strong underwriting was offset by weaker investment returns.

• Financial leverage improved to 25.8% (from 26.9%), and Solvency II ratio increased to 180%.

Outlook and guidance

• 2025 group insurance revenue guidance raised to EUR 8.8–9.1 billion (5–9% growth), and underwriting result guidance increased to EUR 1,400–1,500 million (6–14% growth).

• Combined ratio target set below 85%, with operating EPS growth above 7% annually for 2024–2026.

• Ambition to reduce Nordic cost ratio by 40 basis points per year, up from 20 basis points previously.

• Guidance subject to claims volatility, FX, and competitive dynamics; no outlook for net financial result.

• Internal model expansion for Topdanmark expected to proceed after July merger, with application timeline unchanged.