Sampo Earnings: Profits in Line With Our Forecasts; Shares Fairly Valued

Sampo Group SAMPO has reported a net income of EUR 941 million for the first nine months of 2023. We maintain our EUR 40 per-share fair value estimate and narrow moat rating and reiterate that we believe shares are currently fairly valued.

In Sampo’s private insurance Nordic markets customer retention rates remain strong at 90% and this helped drive mid-single-digit growth in insurance revenue. In Sampo’s U.K. business, Hastings Direct, it looks like there is a lag between claims inflation and price rises, in the third quarter at least. Nonetheless, Hastings has grown its gross written premiums in this market by strong double digits as it has substantially increased its home insurance business.

The spinoff of the life insurance division Mandatum Asset Management has been completed.