Mandatum Oyj - Interim report (Q1 and Q3)

Mandatum plc's Interim Report 1 January-31 March 2024: Client assets under management continued steady growth

Mandatum plc, Stock exchange release, 8 May 2024 at 10.45 a.m. EEST

January-March 2024 in brief

  · Profit before taxes increased by 47% to EUR 46.9 million (1-3/2023: 32.0).
The growth was mainly due to the net finance result, but the fee result also
increased from the comparison period.
  · Fee result increased by 9% to EUR 15.2 million (14.0).
  · Net flow decreased to EUR 246 million (291).
  · Client assets under management increased by 5% from year-end and 16% from
last year and amounted to EUR 12.5 billion.
  · Net finance result increased to EUR 29.9 million (13.4).
  · Result related to risk policies was EUR 2.2 million (2.9).
  · Solvency II ratio adjusted for dividend accrual was 216.5% (31 Dec 2023:
221.4%).

Outlook 2024 (unchanged)

  · The fee result is expected to increase from year 2023 provided that the
market environment remains stable. While Mandatum has been able to maintain
disciplined pricing and stable fee margins within capital-light customer
segments during years 2022 and 2023, the fee result for year 2024 is dependent
on several factors, such as client behaviour and client asset allocation,
competition, and capital market conditions.
  · The with-profit portfolio is expected to decrease further. Value changes of
the investments in the with-profit portfolio can create relatively high
volatility in the net finance result due to changes in the market environment.
  · In addition, and as typical for the industry, the overall results of
Mandatum will be impacted by actuarial assumptions that are updated from time to
time.
  · The strong solvency gives the company a sound basis to operate in different
market conditions.

Key figures

EUR million            1-3/2  1-3/2  Change,  10-12/2023  Change, %  1-12/2023
                       024    023    %
Profit before taxes    46.9   32.0   47%      46.3        1%         210.4
for the period
Fee result             15.2   14.0   9%       13.4        13%        52.6
Net finance result     29.9   13.4   123%     24.9        20%        148.6
Result related to      2.2    2.9    -24%     8.0         -72%       17.9
risk policies
Other income           -0.5   1.7             0.0                    -8.7
Earnings per share,    0.08   0.05   60%      0.06        33%        0.32
EUR
Equity per share, EUR  3.26   3.06   7%       3.19        2%         3.19
Price/earnings ratio   13.7                                          12.7
(P/E ratio)
Net flow               246    291    -16%     210         17%        754
Return on equity-%     9.3%   5.8%            9.8%                   9.8%
Cost/income ratio      65%    66%             66%                    66%
related to client
AuM, %1

EUR million              31.3.2024  31.3.2023  Change,  31.12.2023  Change,
                                               %                    %
Client AuM               12,504     10,776     16%      11,892      5%
Solvency ratio adjusted  216.5%     279.5%     -63%     221.4%      -5%
for dividend accrual, %

1)         Moving average 12 months.

CEO's review

The year 2024 began according to our expectations for Mandatum. The fee result,
key for our growth strategy, increased by 9 per cent from the comparison period,
indicating good performance in our capital-light business areas, especially in
Institutional & Wealth management. Client assets under management increased by
16 per cent to EUR 12.5 billion from the previous year and net flow for the
quarter was EUR 246 million, giving us a good start to the new year.

Mandatum's profit before taxes increased to EUR 46.9 million. The growth was
especially due to the net finance result, which increased to EUR 29.9 million.
Return on investments in the with-profit portfolio was 0.9 per cent in the first
quarter, with the moderate increase in interest rates pushing down the return on
the fixed-income assets, which is the largest asset class in the portfolio. On
the other hand, the interest cost of insurance contract liabilities was low due
to the increase in the discount rate, being approximately EUR 6 million. We also
succeeded in organic capital generation during the quarter. The company's
solvency ratio on 31 March 2024 remained at the same level as in the beginning
of the year, 216.5 per cent adjusted for dividend accrual, giving an accurate
picture of Mandatum's solid solvency position.

The net flow in the Institutional & Wealth management business area was strong
in all client segments during the quarter. Much of the incoming money still came
to fixed-income products, such as the Nordic High Yield Fund, which mainly
invests in Nordic higher-risk bonds. The LSEG Lipper Fund Awards 2024 recognised
the fund as the best in Europe in the Bond Europe High Yield category over three
-year and five-year review periods, an achievement we can be very proud of. Net
flows to alternative investment products and allocation mandates also increased.
Mandatum's strong investment expertise stems from a long tradition of investment
activities and a strong track record in returns, especially in the fixed-income
and credit markets and in alternative investment products.

Mandatum committed to the UN Principles for Sustainable Insurance

I am proud and happy that our efforts to manage our company culture with
exceptionally good employee understanding earned the well-recognised Siqni
Future Workpalces Certification again for the third time in a row. The
certification is based on a survey that measures how factors deemed meaningful
by employees are fulfilled in the workplace. Our flourishing corporate culture
is the factor that leads to not only an excellent employee experience, but also
a high level of customer satisfaction, thus creating the foundation for
successful business. Mandatum's employee satisfaction has remained at a high
level for over a decade and investing in an excellent employee experience is one
of our strategic goals.

We committed to the UN Principles for Sustainable Insurance in the turn of the
year. Mandatum's Sustainable Insurance Policy, based on those principles, was
published on our webpage in April 2024. The principles provide an international
framework for the insurance industry, including themes of environmental
responsibility, social responsibility, and good governance. As a large Finnish
life insurer, Mandatum also has an important societal role, and commitment to
the UN Principles for Sustainable Insurance was a natural next step in the
development of our sustainability work.

The start of the year has been strong in the investment markets. The growth of
the global stock market has continued from last year, with good returns from
high-yield corporate loans and senior loans, to name a few. The general economic
outlook, driven by the United States, remains confident, and expectations for
the future are generally positive despite the difficult situation in global
politics.

Thus, it seems that the operating environment will continue to be favourable for
Mandatum. Central banks are expected to start lowering their key interest rates
during the current year, but the development of long-term interest rates is more
important for the shorter-term results development of the company. As a company,
Mandatum is highly resilient on several metrics, and we are in a solid position
to continue the implementation of our growth strategy going forward.



Petri Niemisvirta
Chief Executive Officer

Conference call on 8 May at 1.00 p.m. EEST, Finnish time

A conference call in English for analysts and investors is scheduled for 8 May
2024 at 1.00 p.m. EEST, Finnish time. You can register for the conference call
using the link provided below. The phone numbers for the conference call and the
associated code will be provided upon registration.

Registration for the event: http://palvelu.flik.fi/teleconference/?id=10012280

The conference call can be followed live on the internet at
www.mandatum.fi/en/result. A recording of the call will be made available for
later access at the same web address.

Additional information

Investor enquiries:
Matti Ahokas

CFO

Tel. +358 40575 1978
matti.ahokas(a)mandatum.fi

Lotta Borgström
VP, Investor Relations
Tel. +358 50022 1027
lotta.borgstrom(a)mandatum.fi

Media enquiries:
Niina Riihelä
SVP, Communications, Brand and Sustainability
Tel. +358 40728 1548
niina.riihela(a)mandatum.fi

The interim report can be found as an attachment to this stock exchange release.
The supplementary presentation material for investors accompanying the Mandatum
interim report is available at www.mandatum.fi/en/result.

Mandatum plc will publish its Half-year Financial Report on 13 Aug 2024 and Q3
Interim Report on 12 Nov 2024.

Mandatum in brief
Mandatum is a major financial services provider that combines expertise in
wealth management and life insurance.Mandatum offers clients a wide array of
services covering asset and wealth management, savings and investment,
compensation and rewards as well as pension plans and personal risk insurance.
Mandatum offers services to corporate, retail, institutional and wealth
management clients.At the centre of Mandatum's success are highly skilled
personnel, a strong brand as well as a proven investment track record
mandatum.fi/en/group

Distribution:
Nasdaq Helsinki
Financial Supervisory Authority
The principal media
www.mandatum.fi

Attachments:

Mandatum Q1 interim report 2024.pdf