2024-02-08 14:11:04 ET
Sampo Oyj (SAXPF)
Q4 2023 Results Conference Call
February 08, 2024 07:30 AM ET
Company Participants
Sami Taipalus - Head-Investor Relations
Torbjorn Magnusson - Group Chief Executive Officer
Knut-Arne Alsaker - Group Chief Financial Officer
Morten Thorsrud - Chief Executive Officer
Conference Call Participants
Freya Kong - Bank of America
Alex Evans - Citi
Tryfonas Spyrou - Berenberg
Jakob Brink - Nordea
Faizan Lakhani - HSBC
Johan Strom - Carnegie
Vinit Malhotra - Mediobanca
Jan Erik - ABG
Anthony Yang - Goldman Sachs
Asbjørn Mørk - Danske Bank
Presentation
Sami Taipalus
Good afternoon, everyone, and welcome to the Sampo Group Fourth Quarter 2023 Conference Call. My name is Sami Taipalus, and I'm Head of Investor Relations at Sampo Group. I'm joined on the call by Group CEO, Torbjorn Magnusson; Group CFO, Knut Arne Alsaker; and CEO, If Morten Thorsrud.
The call will feature a short presentation from Torbjorn, followed by Q&A. A recording of the call will later be available on sampo.com.
With that, I hand over to Torbjorn. Please go ahead.
Torbjorn Magnusson
Thanks, Sami, and welcome, everyone. As you will have seen from our numbers, we maintained really strong momentum through the fourth quarter. I think we have reaped benefits from 3 different aspects of our business model. Firstly, we're big and have been able to invest in digitalization over a long time. This means we sell to and service our customers digitally more than ever, more than others in our markets and very efficiently.
Secondly, even in a year with a high number of large losses and nat cat events, our diversification reduces the effects of volatility. Now and then we will have this kind of year, and we have a strong balance sheet with which to meet this. Finally, our exceptional underwriting culture has produced another year of improvement of the underwriting ratios adjusted for the volatile effects just mentioned.
Just to list a few key achievements for the year, I think improving the underlying combined ratio again at a stable pace as well as improving the cost ratio for the 14th consecutive year, belong up there. Having been able to use our digital provisions to grow other lines, other lines than the motor business in the Nordics, in the face of low car sales is certainly another. And finally, I think Hastings agility in the challenging market in the U.K., combined with its underwriting discipline is also impressive to me.
Finally, on this page, I think our investment returns compares well to the market. Given our low-risk portfolio, 6.3% returns for the group certainly is a welcome addition to the insurance underwriting. Total profit before taxes for 2023 increased to just shy of €1.5 billion. That number summarizes all of this, of course, and the proposed dividend of €1.8 per share and a payout ratio of 86% of our operational EPS....
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Sampo Oyj (SAXPF) Q4 2023 Earnings Call Transcript