Q2 2026 Sampo Oyj Earnings Call Transcript
Key Points
- Sampo Oyj (SAXPF) delivered strong first half and second quarter results with broad-based, durable top-line growth, including a 5% like-for-like growth in Q2.
- The company raised its full-year outlook, now expecting 7%-9% insurance revenue growth and 4%-9% underwriting result growth.
- Private Nordic segment saw robust 5% growth in Q2, driven by increased customer count and object sales across all countries, with high retention.
- UK business added 180,000 customers in Q2 (13% YoY growth), driving like-for-like top-line growth of 7.6%, up from 1% in Q1.
- Nordic Commercial was the fastest-growing segment with 8.6% like-for-like growth, supported by SME acceleration and a major personal insurance deal in Denmark.
- Investment returns rebounded sharply in Q2, with net gains of EUR240 million in the core portfolio, offsetting legacy asset softness.
- Solvency coverage remained robust at 174%, with strong operating performance offsetting market effects.
- Digital initiatives are progressing well, with If mobile app reaching 1.8 million downloads and over 70% of claims reported digitally, enhancing customer experience and efficiency.
- Cost efficiency improvements continue, with the company confident in achieving a 40 bps cost ratio improvement in the Nordics.
- The company maintains disciplined underwriting, with stable strong margins and a favorable claims environment supporting underwriting result growth of 7% in H1.
- UK pricing environment remains competitive and softer, with the company noting that the cycle has not fully turned yet, requiring further price increases.
- The loss ratio in UK private increased by 3.8 points in H1, driven by lower rate levels from last year earning through, though this was expected.
- Swedish new car sales remain a headwind, with growth in private Nordic being 6% when excluding Swedish mobility, indicating a drag.
- Legacy assets NOBA and Nexi showed soft development, with Nexi's market value reported with a one-quarter delay, impacting investment returns.
- The symmetric adjustment increased to nearly 9% (up from 5% last quarter), which, if excluded, would imply a higher solvency ratio of 180%, indicating market volatility.
- A major residential fire in Drammen, Norway, in July is expected to cost around EUR15 million, primarily affecting the Private Nordic segment.
- Claims inflation, particularly in spare parts, is a concern, leading to additional pricing and reserve strengthening in both the UK and Nordics.
- The Danish Supreme Court ruling on workers' compensation cases has led to 10 cases being reopened, with future pricing actions needed, though reserves are considered sufficient.
- Growth in Nordic Commercial was partly driven by one-off large deals, which may not be sustainable, though the company sees strong momentum.
- The company notes that the underlying improvement in risk ratio may be slightly better than expected, but there is a limit to how long this can continue.
Good morning, everyone, and welcome to Sampo Group's Conference Call on second-quarter '26 results. My name is Mirko Hurmerinta, the Interim Head of IR at Sampo.
I'm joined on the call today by Group CEO, Morten Thorsrud; and Group CFO, Lars Kufall Beck. The call will include a short presentation by Morten and Lars, followed by Q&A. Recording of the call will later be available at sampo.com.
With that, I hand over to you, Marten. Please go ahead.
Thanks, Mirko, and good morning, and a warm welcome to Sampo's second quarter results conference call on my behalf as well.
So Sampo delivered strong first half and second quarter results, driven by broad-based and durable top line growth. Disciplined underwriting and continued cost efficiency improvements across the group. Our first half like-for-like growth amounted to 3% and accelerated to 5% in the second quarter. This was supported by our private and SME
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