Transformation complete, full steam ahead
2024 was a landmark year for Sampo, in which we completed our strategic transformation to a pure, integrated P&C insurance group, and delivered strong financial results on the back of growth in our target areas. The strong momentum in our business makes me optimistic about the future.
On 10 September 2024, we announced that more than 90 percent of the shareholders in Topdanmark had accepted the exchange offer we had made in August, allowing us to move ahead with making Topdanmark a fully integrated part of the Sampo Group. The deal completed a multi-year journey, where Sampo has transformed from a financial conglomerate to a focused P&C insurance group, by exiting our stake in Nordea, and spinning off Mandatum. The acquisitions of Topdanmark and Hastings have strengthened our presence in Denmark, consolidated our Nordic leadership position and provided us with a growth opportunity in the digital UK personal lines market.
The integration of Topdanmark is well underway and progressing according to plan. We have appointed a Nordic leadership team and taken the EUR 150 million of costs of realising the expected EUR 95 million of deal synergies through the P&L (both figures are before tax). The synergy work has already begun, and we will reach full run-rate in 2028. The synergies consist of long-term investments in business that will sustainably strengthen our competitive position, rather than headline-grabbing costs cuts. We will leverage our Nordic scale and know-how to transform IT, enhance claims procurement efficiency, improve risk pricing, and strengthen partnerships, driving better service and higher productivity to the benefit of customers and shareholders alike.
Strong growth in Nordic target areas
Sampo’s operational performance was strong through 2024, with notably high organic growth of 10 per cent for a second consecutive year. Within this, I am pleased to see that the investments we have made in personal insurance, private property, and SME are paying off, delivering premium growth of 12 per cent, 6 per cent, and 5 per cent, respectively. These areas collectively account for around 27 per cent of our premiums and benefit from a combination of increasing demand, enhanced digitalisation, and an opportunity to expand cross-selling. The development particularly benefited our largest segment, Private, allowing us to record 7 per cent currency-adjusted GWP growth—rising to 8 per cent when the Swedish mobility business is excluded.
I am often asked by investors about competitive dynamics in the Nordic P&C insurance market, not least given the presence of several large mutual insurers in the region. Although competition is fierce, we are able to compete effectively by leveraging the investments we have made into our operational capabilities, driving excellent customer service and productivity. The proof is in our customer retention, which stood at 89 per cent in Private in 2024. Indeed, my observation is that market conditions firmed across the region in 2024, led by Norway and Denmark, where our competitors are reacting to challenging claims trends. This enabled us to achieve 11 per cent organic premium growth in Topdanmark in the fourth quarter and 9 per cent in If P&C in Norway.
Underwriting profit growth enhanced by stand-out UK performance
Our UK operation was the stand-out performer in Sampo Group in 2024, underscoring its importance in capturing growth and expanding our customer base. Hastings is a digital P&C insurer, well positioned for growth in a UK personal lines market that is now very much focused on Price Comparison Websites (PCW) in both motor and home insurance. PCWs act as a funnel through which most customers pass when shopping for insurance, allowing us to gradually win customers from legacy carriers that have not been able to adapt their businesses fast enough. During 2024 we added just over 400,000 customers and increased premiums by 23 per cent on a constant currency basis. The underwriting result increased by 49 per cent, compared to the previous year, contributing nearly half the growth at Group level.
Disciplined capital management
Our commitment to disciplined financial stewardship remains unwavering. The Board of Directors is proposing a dividend of EUR 1.70 per share for 2024—or EUR 0.34 per share when adjusted for the share split executed in February 2025 — representing an increase of 6 per cent on the prior year. Furthermore, we expect to launch a new share buyback programme in 2025, supported by capital generated in 2024 and potential disposals of legacy holding company investments. This approach underscores our focus on delivering reliable returns to our shareholders while maintaining a steady financial trajectory.
Entering 2025 with strong operational momentum
As we look ahead to 2025, the momentum we have built will continue to drive our success. Our recent 1 January renewals—which represent around 40–45 per cent of the Nordic corporate business—confirmed positive operating trends across commercial and industrial lines. We were able to implement the rate increases we believe we need, while tactically reducing exposure to large property risk.
Given this strong start, we have set an outlook for 2025 calling for insurance revenue growth of 4–7 per cent and underwriting result growth of 3–10 per cent, underpinning our strong forward trajectory. Following an operating EPS growth of 13 per cent in 2024, this puts us well on track to delivering on our financial targets for 2024–2026—aiming for at least 7 per cent operating EPS growth and a combined ratio below 85 per cent.
In summary, 2024 was an outstanding year characterised by strong operational performance, achieved strategic milestones, and disciplined capital management. I would like to thank our 8 million customers for their continued trust, and our nearly 15,000 employees for their hard work and commitment. As we move into 2025 with an ambitious outlook for growth and profitability, we remain confident in our strategy to deliver sustainable value for all our stakeholders.
Torbjörn Magnusson
Group CEO