Sampo Oyj reported a year-over-year 23% decrease in net profit for the fourth quarter of 2017.
The Finnish insurer reported net profit of €364 million for the quarter, down from €471 million earned in the year-ago period. EPS for the period was 61 cents, compared to 84 cents a year earlier.
In the property and casualty unit, pretax profit totaled €215 million in the quarter, compared to €199 million in the fourth quarter of 2016, while pretax profit in life insurance was €56 million, up from the year-ago €53 million.
Sampo's share of associated company Nordea Bank AB (publ)'s net profit for the quarter amounted to €126 million, down from €227 million a year earlier. Topdanmark A/S' profit contribution for the quarter totaled €52 million, compared to the year-ago €23 million.
The company saw insurance premiums written increase on a yearly basis to €1.72 billion from €1.33 billion. Net income from investments declined year over year to €280 million from €359 million.
Claims incurred expanded year over year to €1.22 billion from €862 million. Change in liabilities for insurance and investment contracts represented a loss of €88 million, compared to the year-ago loss of €261 million.
For full year 2017, Sampo's net profit under the International Financial Reporting Standards was €2.24 billion, compared to €1.65 billion in 2016. The company said the result includes a nonrecurring item of €706 million due to a change in Topdanmark's accounting treatment.
Return on equity at fair value was 17.1% in 2017, compared to 15.0% in 2016.
The full-year 2017 combined ratio for Sampo's P&C operations was 85.3%, compared to 84.4% in 2016. For the fourth quarter, the combined ratio stood at 83.6%, compared to 85.6% a year earlier. A ratio above 100% signifies an underwriting loss.
The group solvency ratio at end-2017 was 154%, unchanged from that at the end of 2016.
Sampo's board will propose a dividend of €2.60 per share for 2017, up from €2.30 per share for 2016, at the company's April 19 annual general meeting.
