(Reuters) - Finnish insurer Sampo on Friday reported a bigger-than-expected drop in fourth-quarter earnings citing challenging capital markets environment, sending its shares falling more than 5%.
The group's profit before tax fell 67% to 390 million euros ($418.43 million) in the quarter, missing analysts' 553-million-euro estimate in a company-provided poll.
Sampo also said it expected to conclude the strategic review of its Mandatum unit by the end of March, with all options including a possible spin-off via a separate listing still open.
The group said in December it was reviewing the ownership of Mandatum, which offers life insurance, wealth management and asset management, as part of its plan to refocus its business towards property and casualty (P&C) insurance.
Sampo last year sold its stake in banking group Nordea and has said it plans to fully takeover Danish Topdanmark in which it currently holds 48%.
"As the strategic review of Mandatum ... is still ongoing ... it remains our view that Sampo will not buy the remaining shares of Topdanmark in the near term," Jefferies analysts said in a note to clients.
Mandatum's pre-tax profit dropped 80% in the quarter to 18 million euros hit by "adverse and volatile capital market movements", Sampo said.
Topdanmark's pre-tax profit contribution was 128 million euros, up 44% on the year but below the 186 million expected by analysts.
Sampo's main unit If, which offers P&C insurance solutions and services in Finland, Sweden, Norway, Denmark and the Baltic countries, posted a 10% rise in pre-tax profit to 285 million euros, in line with estimates.
Sampo also proposed a dividend of 2.60 euros per share for 2022, 11.6% below analysts' 2.94 euro estimate.
($1 = 0.9321 euros)