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• Full Year Growth Outlook Increase: EUR100 million increase.

• Underwriting Result Outlook Increase: EUR50 million increase.

• Cost Ratio Target: Increase to cut 40 basis points per year.

• Private Nordic Growth: 8.5% growth.

• Digital Sales Increase: 20% increase since last year.

• Retention Rate Increase: Increased from 89%.

• Operational Ambition for 2026: Increased to EUR175 million per year.

• Net Insurance Revenue Expectation for 2025: EUR8.8 billion to EUR9.1 billion.

• Underwriting Result Expectation for 2025: EUR1.4 billion to EUR1.5 billion.

• Warning! GuruFocus has detected 6 Warning Signs with ARKAF.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Sampo Oyj (SAXPF) reported continued strong growth in both the Nordics and the UK, with an increase in the full-year growth outlook by EUR100 million.

• The company achieved an improvement in the underlying risk ratio, leading to an increase in the underwriting result outlook by EUR50 million.

• Digital sales in the Private Nordic segment increased by 20% year-over-year, contributing to an operational ambition increase for 2026 to EUR175 million per year.

• The integration with Topdanmark has progressed smoothly, with more synergies identified than initially expected, leading to an increased cost ratio target reduction of 40 basis points per year.

• Sampo Oyj (SAXPF) has a new AGM mandate for buybacks, indicating a strong financial position and potential shareholder returns.

Negative Points

• The expense ratio in the Nordics increased by 80 basis points compared to Q1 2024, partly due to the inclusion of holding company costs.

• The derisking actions in the Nordic commercial and industrial lines are expected to impact volumes throughout the year and into next year.

• In the UK, while the company is achieving targets, there is a moderation in growth rates due to declining rates and claims inflation.

• The company's focus on cost synergies from the Topdanmark integration may limit potential revenue synergies.

• The competitive situation in the Nordic markets, particularly in Norway, requires careful pricing strategies to maintain growth and retention.

Q & A Highlights

Q: Can you provide an update on the portfolio measures in Nordic commercial and industrial lines and the outlook for top-line growth? Also, why was the expense ratio higher in Q1? A: Morten Thorsrud, President and CEO of If P&C Insurance Holding Ltd, explained that the derisking actions in the large corporate business are nearly fully implemented as of May 1. This will impact volumes throughout the year and into next year. The expense ratio increase is due to including costs previously outside the ISR and high sales activity, but the underlying development aligns with the target of a 40 basis point improvement.