The asset management and life insurance company, Command, has released its results for October–December. The company, originally part of the insurance-focused company Sampo, began trading on the Helsinki Stock Exchange in early October.
The profit before taxes for the last quarter was reported at 46.3 million euros, a decrease from 62.6 million euros during the same period the previous year.
The analysis firm Inderes had projected a pre-tax profit of about 61 million euros for this quarter.
The company attributed the decline in profit to a weak investment outcome, which was impacted by the increased financing costs of insurance contract debts due to a decrease in the discount rate.
The proceeds from investment and financing activities dropped to 24.9 million euros from 78.1 million euros in the comparative period.
In the last quarter, the premium income was 13.4 million euros, compared to a compensation result of 6.2 million euros in the same period last year.
The risk life insurance result improved to 8.0 million euros, up from 5.2 million euros in the comparison period. Inderes had anticipated a result slightly below 4 million euros.
For the full year, Mandatum’s pre-tax profit was 210.4 million euros, a significant increase from 75.7 million euros in the previous year. Inderes had forecast a pre-tax profit of 225 million euros. According to Mandatum’s CEO, Petri Niemisvirtan, the results were excellent.
There was a strong growth in the capital-light business, a core area of Mandatum’s strategy, which reflected in the increase in both net cash flow and fee results, stated the CEO in the results announcement.
By the end of December, the company’s equity per share was 3.2 euros, and the return on equity from January to December was 9.8 percent.
At the end of the calendar year, the company had managed 11.9 billion euros in customer funds, a growth of around 15 percent.
At the close of the 2022 financial year, Mandatum’s managed customer assets totalled 10.3 billion euros. Inderes had projected customer funds to reach 11.5 billion euros.
The CEO viewed this as an indication of Mandatum’s strong performance and resilience, even in a challenging market environment. Both net cash flow and customer assets under management reached record highs.
The pro forma solvency ratio, accounting for dividend accumulation, was 221.4 percent. Mandatum’s medium-term goal is to maintain a solvency ratio between 170 and 200 percent.
Net cash flow for the past year was 753.8 million euros, representing more than 7 percent of managed customer funds and thus significantly exceeding Mandatum’s medium-term target of 5 percent.
From last year’s result, Mandatum will distribute a dividend of EUR 0.33 per share, aligning with analysts’ forecasts. This equates to a total dividend of 166 million euros.
In line with its dividend policy, Mandatum aims to distribute cumulative dividends of EUR 500 million during the years 2024–2026.