Non-life insurer Sampo grew profitably on a broad front during the rest of the year. The board proposes a dividend of no less than 1.80 euros per share.
DAMAGE INSURANCE GROUP Sampo's October–December result increased to 368 million euros from 67 million euros in the comparison period, although according to the company, the year 2023 ended with more difficult weather conditions than usual. Difficult weather conditions such as slippery conditions typically increase damage.
The group's combined expense ratio improved to 85.5 percent from 94.1 in the comparison period.
The expense ratio, which describes the ratio of expenses, compensation and insurance premiums expressed as a percentage, describes the efficiency of non-life insurance operations. The lower the number, the better.
Size the 2023 result before taxes increased from 803 million euros in the comparison period to 1,481 million euros with comparable figures.
“The fact that we achieved a strong result for 2023 at the group level, despite the large compensation costs, shows the economies of scale, successful diversification and discipline of our operations”, Group President Torbjörn Magnusson said Sammon in the 2023 financial statement release.
Measured at constant exchange rates, the group's net sales grew by 11 percent in 2023.
“Growth in the Nordic countries was mainly driven by customer retention, which remained high despite the price increases,” Magnusson stated in the financial statement release.
Sammon the board proposes a dividend of EUR 1.80 per share. It consists of a basic dividend of EUR 1.60 and an additional dividend of EUR 0.20.
According to Sampo's dividend policy, the amount of dividends paid is at least 70 percent of Sampo Group's operating profit.
When the operating result was 1,046 million euros, the proposed dividend corresponds to a profit sharing ratio of 86 percent.
The board proposes that the dividends be paid on May 7.
Sampo has turned into a pure non-life insurer over the years. In 2006, it sold its banking business, i.e. Sampo bank, to the Danish Danske Bank, and instead bought a large minority stake in Nordea.
The last tranche of Nordea's shares was sold in April 2022.
Life insurer and asset management company Mandatum spun off as a separate listed company from Sammo in October 2023.
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