By Marta Frackowiak
(Reuters) – Finnish insurer Sampo beat third-quarter earnings expectations on Wednesday, citing higher underwriting profit, strong investment results and solid growth especially in its Hastings unit in Britain.
“The third quarter of 2024 was a financially stable quarter, with continued positive momentum in the Nordics and accelerated growth in the UK,” CEO Torbjorn Magnusson said in the statement.
Nordic market dynamics remained stable, with some peers indicating big price increases while claims inflation eased to 4%, he added.
“Hastings has been a standout performer, with premiums up +26.3% in Q3, driven by higher prices, and a material uplift in live customer policies,” Jefferies analysts said in a note.
Hastings, which provides car, van, bike and home insurance in Britain, posted a 59% sequential rise in its profit before tax in the third quarter.
Despite the high growth in policies and prices, Sampo also managed to improve margins in Hastings, while maintaining them in its main unit If P&C, Jefferies said.
Sampo, which last year spun off its life insurance business to become a pure-play property and casualty insurer, said its profit before tax rose 11% to 432 million euros ($464 million) in the quarter, above analysts’ consensus of 427 million euros.
It had also posted a profit beat in the second quarter, helped by a strong performance at If P&C and despite a higher number of large claims.
Sampo, which mainly operates in the Nordic region, reiterated its 2024 guidance for a combined ratio of 83–85%.
The company, which earlier this year bought Topdanmark in a deal valuing the Danish insurer at $4.7 billion, said integration of the business was “well underway and poised to bring notable synergies”.
In June, it had estimated that annual synergies from the deal would reach 95 million euros.
($1 = 0.9316 euros)
(Reporting by Marta Frąckowiak in Gdańsk; editing by Milla Nissi)