Home Financial News Sampo profits drop 8%

Sampo profits drop 8%

0 0

The biggest Finnish insurance group Sampo reported on Thursday a dip in 2011 net profit to €1.038 billion euros (£870m), eight percent less than a year earlier.

The outcome was “a good result despite capital market uncertainty”, a company statement said, before adding that its board would propose a dividend of €1.20 per share.

Company CEO Kari Stadigh added, “Overall, for the year 2012, we see Sampo well-positioned and there is no reason why it would not continue reaching the long-term target of a combined ratio of under 95 per cent.”

Pre-tax profit in the property and casualty insurance division fell to 636 million euros from 707 million a year earlier as market uncertainty resulted in lower investment returns, the company said.

Earnings from Sampo’s 21.3 percent stake in Nordea Bank contributed 534 million euros to the bottom line, up slightly from 523 million a year earlier.

Pre-tax profit in the life insurance business came in at 137 million euros in 2011, down marginally from 142 million, “despite the challenging investment markets,” the company said.

Sampo Group’s business areas were expected to report good operating results for 2012, the company forecast, but warned that once again, the results would depend on market developments.