Sampo Oyj (LON:0HAG) reported stronger second-quarter and first-half performance, citing broad-based organic growth, disciplined underwriting and continued efficiency improvements across its insurance operations. The company raised its full-year outlook for insurance revenue and underwriting-result growth after the first-half performance.
Group CEO Morten Thorsrud said like-for-like insurance revenue growth was 3% in the first half and accelerated to 5% in the second quarter, supported by private and small- and medium-sized enterprise insurance lines across all markets. Currency-adjusted underwriting-result growth was 7% for the first half and 5% for the second quarter, while operating earnings per share increased 12% and 6%, respectively.
Nordic and U.K. Growth Trends
Private Nordic, Sampo’s largest business area, delivered 5% top-line growth in the quarter. Thorsrud said growth had become increasingly volume-driven, with customer counts, insured objects and object sales increasing across Nordic countries while retention remained high and broadly stable.
The company continued to invest in digital customer service. Its If mobile app reached 1.8 million downloads across the Nordic region, with nearly half of household customers using the app to manage policies and report claims. More than 70% of claims were reported digitally during the second quarter, reaching an operational target that had been set for year-end.
Sampo also expanded its AI-powered virtual agent, IfGPT, from Denmark into Sweden and Norway. Thorsrud said the tool provides customers with tailored answers on insurance coverage and related questions. While it was too early to quantify efficiency gains, he said customer reception had been positive and that the company expects such tools to reduce customer-service calls over time. The group also introduced the If Vet app across the Nordics, allowing pet owners to contact veterinarians around the clock without charge.
In the U.K., like-for-like top-line growth rose to 7.6% in the second quarter from 1% in the first quarter. Sampo added about 180,000 customers during the quarter, representing 13% year-over-year growth and 4% growth from the prior quarter. The company said growth was mainly in motor insurance and was broad-based across its product offerings, aided by investments in data, analytics and pricing capabilities.
Thorsrud characterized the U.K. motor pricing environment as improving but said it was still too early to conclude that the pricing cycle had fully turned. The company is implementing price increases and pricing for somewhat higher inflation expectations, he said. Sampo did not disclose the size of its rate increases.
Group CFO Lars Kufall Beck said the deterioration in the U.K. loss ratio during the second quarter was expected, reflecting lower pricing levels from the second quarter of 2025 that are now earning through the portfolio. Seasonal patterns also contributed, management said. Sampo continued to report U.K. margins within its 88%-90% operating-ratio target range.
Commercial Momentum and Cost Efficiency
Nordic Commercial was Sampo’s fastest-growing segment in the second quarter, with like-for-like growth of 8.6%. SME portfolio growth exceeded 5%, accompanied by a higher customer count and several larger customer wins.
One such agreement in Denmark provides comprehensive healthcare coverage to 40,000 pensioners. Thorsrud said the deal opens a potential new market area, noting that Denmark has more than 1 million pensioners. He said the agreement was underwritten at the same profitability targets as the rest of the business.
Management said the commercial growth rate in the second quarter benefited from large deals, while the first-quarter performance was more representative of normal conditions. Thorsrud said the company sees good momentum entering the third quarter, particularly in SMEs, where it expects investments in digitalization to increasingly support growth.
On costs, Thorsrud reaffirmed Sampo’s expectation of a 40-basis-point annual improvement in the Nordic cost ratio over the next several years. He said the outlook is supported partly by Topdanmark integration synergies, which had reached €73 million after the second quarter. He cautioned that quarterly expense ratios can vary based on invoice timing.
In the U.K., management said scale and operational efficiencies should support further cost-ratio improvement over time. Customer policies increased 13% year over year, while staffing has not increased at a similar rate, according to Thorsrud.
Investments, Solvency and Updated Outlook
Beck said financial markets rebounded sharply in the second quarter following a volatile first quarter, benefiting both equities and fixed-income holdings. Sampo’s core investment portfolio generated net gains of €240 million during the quarter, split roughly evenly between fixed income and equities. Stable interest and dividend income helped lift total net investment income to €360 million, more than offsetting the market-driven net loss recorded in the first quarter.
The investment result was partly offset by weaker performance from legacy holdings NOBA and Nexi. Beck noted that Nexi’s market value is reported with a one-quarter delay, meaning Sampo’s second-quarter figures reflected Nexi’s first-quarter performance.
Sampo’s solvency coverage remained at 174%, unchanged from the first quarter. Beck said operating performance offset slightly negative market effects. The symmetric adjustment under Solvency II increased to nearly 9% from 5% in the previous quarter; without that adjustment, and with other factors unchanged, the solvency ratio would have been 180%, he said.
The company said its solvency calculation deducts 90% of quarterly operating earnings from own funds, reflecting its shareholder distribution commitments.
For 2026, Sampo now expects insurance revenue growth of 7%-9% and underwriting-result growth of 4%-9%. The underwriting outlook includes management’s current view of July claims activity, including a major residential fire in Drammen, Norway. Sampo’s preliminary estimate for the claim is about €15 million, primarily affecting the Private Nordic segment.
Management also said it has added some pricing and reserves for potentially higher claims inflation in the U.K. and Nordic markets, particularly related to spare parts and ongoing disruption around the Strait of Hormuz. The company described the adjustment as prudent rather than a major change in its inflation outlook.
About Sampo Oyj (LON:0HAG)
Sampo Oyj, together with its subsidiaries, engages in the provision of non-life insurance products and services in Finland, Sweden, Norway, Denmark, Estonia, Lithuania, Latvia, and the United Kingdom. The company operates through If, Topdanmark, Hastings, Mandatum, and Holding segments. It offers property, casualty, liability, accident, sickness, household, homeowner, motor, travel, marine, aviation, transport, forest, livestock, health, workers compensation, car, van, and bike insurance services, as well as reinsurance services.
