In This Article:
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Group Growth: 12% growth in 2024, following 11% growth in 2023.
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Underwriting Profits: Increased by 28% over two years.
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Policy Count Growth (UK): 12% increase.
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Dividend Proposal: EUR1.70 per share, up EUR0.10 from last year.
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Premium Growth (Private): 8% currency-adjusted growth in Q4.
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Topdanmark Growth: 11% growth in Q4.
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Private Retention Rate: Stable at 89%.
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Policy Additions (UK): 84,000 new policies in Q4.
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Net Insurance Revenue Outlook: EUR8.7 billion to EUR9 billion.
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Underwriting Result Outlook: EUR1.35 billion to EUR1.45 billion.
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sampo Oyj (SAXPF) reported a 12% growth in 2024, building on an 11% growth in 2023, with a significant increase in underwriting profits by 28% over two years.
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The company successfully completed important corporate renewals in the Nordics and maintained strong momentum in the UK, with a 12% growth in policy count.
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Sampo Oyj (SAXPF) has enhanced its digital capabilities and advanced pricing techniques, contributing to its strong market position and growth.
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The acquisition of the minority interest in Topdanmark was completed, marking a strategic milestone and simplifying the company's structure.
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A dividend proposal of EUR1.70 per share was announced, up EUR0.10 from the previous year, with potential for share buybacks later in the year.
Negative Points
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The UK market faces challenges in predicting claims inflation and frequencies post-2022-2024 volatility, which could impact future profitability.
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Claims inflation remains above historical averages, particularly in the motor segment, posing a risk to cost management.
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The integration of Topdanmark is ongoing, with limited synergies expected to be realized in 2025 due to IT and process changes.
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The company's solvency ratio has dipped, and financial leverage has increased compared to the previous year, raising concerns about balance sheet strength.
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New car sales in the Nordics, particularly in Sweden, have been low, impacting growth in motor insurance policies.
Q & A Highlights
Q: Are there other products or countries in the Nordics where you see similar repricing dynamics as in Norway? Also, is the PI growth mainly from cross-selling or acquiring new clients? A: Repricing is higher in Norway, but Denmark is catching up, with an index above 4%. Sweden is also seeing some price increases. PI growth is typically from cross-selling to existing customers. - Morten Thorsrud, Member of the Group Executive Committee