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Investing.com -- Sampo, the Nordic insurer, raised its full-year 2026 outlook on Wednesday after posting a stronger-than-expected underwriting result in the second quarter, even as net profit missed analyst estimates on weaker investment returns.
Second-quarter gross written premiums rose to €2.68 billion, beating the €2.66 billion consensus average. Insurance revenue, net, of €2.44 billion also beat the €2.40 billion consensus average.
The underwriting result of €418 million beat the €409 million consensus average, driven by solid top-line growth and underwriting performance, the company said. The combined ratio of 82.9% beat the 83% consensus average.
Net financial result was €220 million, missing the €280 million consensus average, even as it rose 19% from €185 million a year earlier on higher net investment income, as market conditions turned more favourable following the volatile start of the year, the company said.
Net investment income of €360 million also missed the €392 million consensus average.
Profit before taxes of €584 million missed the €629 million consensus average. Net profit of €462 million missed the €499 million consensus average.
Reported earnings per share of €0.17 missed the €0.19 consensus average, while operating earnings per share of €0.14 missed the €0.15 consensus average.
The Solvency II ratio, net of distribution accrual, stood at 174%, beating the 171% consensus average for the quarter, unchanged from the first quarter.
By segment, Private Nordic insurance revenue of €1.08 billion beat the €1.08 billion consensus average, while its underwriting result of €198 million missed the €200 million average. Private UK insurance revenue of €537 million beat the €529 million average, and its underwriting result of €60 million beat the €56 million average.
Nordic Commercial insurance revenue of €585 million beat the €570 million average, while its underwriting result of €100 million missed the €106 million average.
Nordic Industrial insurance revenue of €159 million beat the €149 million average, and its underwriting result of €33 million beat the €30 million average.
Following first-half performance, Sampo raised its 2026 insurance revenue outlook to €9.70-9.85 billion from €9.6-9.8 billion, and adjusted its underwriting result outlook to €1.55-1.63 billion from €1.53-1.63 billion.
The first half of 2026 was characterized by a favorable claims experience in terms of weather and large claims, the company said. After the reporting period in mid-July, a residential fire in Drammen, Norway, drove estimated claims of around €15 million.
Group CEO Morten Thorsrud said Sampo’s operational performance "remained robust in the second quarter with diversified like-for-like topline growth of 5 per cent," adding that combined with strong margins, this "drove the underwriting result growth of 5 per cent on a currency-adjusted basis, while the operating EPS strengthened by 6 per cent."
Financial leverage amounted to 25.9%, up from 23.7% at the end of the first quarter.
