Sampo (SAMPO) Q4 2025 earnings summary

Executive summary

• Achieved 8% like-for-like growth in 2025, with strong momentum in private and SME segments across Nordics and UK, and robust operational performance in key markets.

• Underwriting profit reached EUR 1.5 billion, up 12–13% year-over-year, marking the third consecutive year of double-digit growth.

• Reported EPS surged 65% due to a EUR 540 million gain from the NOBA IPO; operating EPS grew 7% to EUR 0.50.

• Board proposed a regular dividend of EUR 0.36 per share, a 6% increase, and continued share buybacks, with a payout ratio of 71% of operating result.

• Solvency II coverage at 174%, financial leverage at 23.6%, and strong liquidity position maintained.

Financial highlights

• Gross written premiums grew 8% to EUR 10.7 billion; insurance revenue up 8% to EUR 9.1 billion.

• Underwriting result increased 12–13% to EUR 1,485 million; combined ratio improved to 83.6%.

• Net profit rose 73% to EUR 1,998 million; profit before taxes up 56% to EUR 2,436 million.

• Investment income was strong, with a EUR 540 million gain from the NOBA IPO and group investment return at 5.5%.

• Solvency II ratio stood at 174% at year-end, with EUR 1.5 billion of deployable capital generated in 2025.

Outlook and guidance

• 2026 insurance revenue expected at EUR 9.5–9.8 billion (5–8% growth); underwriting result forecasted at EUR 1,485–1,600 million (0–8% growth).

• Combined ratio target remains below 85% for 2024–2026; operating EPS growth target above 9% annually.

• Outlook subject to weather, large claims, prior year development, discount rates, and competitive dynamics, especially in UK motor market.

• Planned 40 basis points improvement in Nordic operating cost ratio to drive profitability.

• Expect continued organic growth as the main driver, with disciplined execution in competitive markets.