Sampo (SAMPO) Q2 2024 earnings summary

Executive summary

• Achieved 11% FX-adjusted top line growth in H1 2024, with strong development across all business areas and particularly robust UK results.

• Announced bid and public exchange offer for remaining Topdanmark shares, with all regulatory and shareholder approvals obtained; integration expected to deliver €95m annual synergies by 2028.

• Delivered strong Q2 and H1 results, with increased operating EPS and profit before taxes, supported by higher investment returns and UK performance.

• Underlying margin trends positive, but underwriting impacted by harsh winter, large claims, and severe weather.

• Maintained strong solvency and financial leverage within target ranges.

Financial highlights

• H1 2024 operating EPS at €1.09, up 2% year-over-year; Q2 operating EPS €0.59.

• Net profit for equity holders €653m for H1 2024; Q2 net profit €310m.

• Group combined ratio at 84.4% in Q2 (up 0.9pp year-over-year); H1 combined ratio 85.8%, with underlying combined ratio improving by 1.5 percentage points.

• Net investment income up 32% to €478m in H1, with total investment return of 2.8%.

• Gross written premiums and brokerage income up 11% currency adjusted to EUR 5,631m.

Outlook and guidance

• 2024 outlook for group combined ratio maintained at 83–85%, excluding potential one-off Topdanmark integration costs.

• Deployable capital generation target raised to >€4.5bn for 2024–2026 post-Topdanmark.

• Operating EPS growth target >7% (period average); combined ratio target <85%.

• Combined ratio subject to volatility from weather, large claims, and market developments.