SAMPO Sampo Oyj Class A

Sampo plc: Managers’ Transactions (Lapveteläinen)

Sampo plc: Managers’ Transactions (Lapveteläinen)

SAMPO PLC                        MANAGERS’ TRANSACTIONS                    10 August 2020 at 2:40 pm



Sampo plc: Managers’ Transactions (Lapveteläinen)



Sampo plc (business code 0142213-3) has received the following notification under Article 19 of the Market Abuse Regulation.

____________________________________________

Person subject to the notification requirement

Name: Leviathan Oy

Position: Closely associated person

(X) Legal person

(1):Person Discharging Managerial Responsibilities In Issuer

Name: Patrick Lapveteläinen

Position: Other senior manager

Issuer: Sampo plc

LEI: 743700UF3RL386WIDA22

Notification type: INITIAL NOTIFICATION

Reference number: 743700UF3RL386WIDA22_20200810135144_2

____________________________________________

Transaction date: 2020-08-06

Venue: NASDAQ HELSINKI LTD (XHEL)

Instrument type: SHARE

ISIN: FI0009003305

Nature of the transaction: ACQUISITION

Transaction details

(1): Volume: 5,000 Unit price: 30.54 EUR

Aggregated transactions

(1): Volume: 5,000 Volume weighted average price: 30.54 EUR





SAMPO PLC

Jarmo Salonen

Head of Investor Relations and Group Communications

tel. +358 10 516 0030



Distribution:

Nasdaq Helsinki

London Stock Exchange

Financial Supervisory Authority

The principal media

EN
10/08/2020

Underlying

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Reports on Sampo Oyj Class A

Håkon Astrup
  • Håkon Astrup

Repricing the tonic for bad weather

We expect above-normal weather-related claims in Q1 as a result of heavy rain and snowfall (and record-low temperatures) in the Nordics at the start of the year. On the positive side, we believe the non-life insurers should see the effects of 2023’s repricing efforts, while their latest CMD presentations leave us confident the sector remains committed to maintaining underwriting discipline. Tryg is our top pick in the Nordic P&C sector, while we also reiterate our BUYs on Sampo and Gjensidige an...

Håkon Astrup
  • Håkon Astrup

Sampo Oyj (Buy, TP: EUR47.00) - Capital and underwriting discipline

Underwriting improvements and capital generation were again in focus at the CMD. For 2024–2026, Sampo targets a lower group combined ratio of 7% annual growth in operating EPS, which it believes together with further capital optimalisation and a reduced Solvency II target of 150–190% should generate EUR4bn+ in deployable capital by 2026. We have made limited estimate revisions, and reiterate our BUY and EUR47 target price.

Håkon Astrup
  • Håkon Astrup

Sampo Oyj (Buy, TP: EUR47.00) - Building a strong P&C foundation

At the CMD due on 6 March, we will look for an update on utilising the renewed P&C focus to drive If P&C improvements and the UK turnaround in Hastings. We expect Sampo to target a combined ratio below 83% by 2026, driven by a combined ratio below 82% in If P&C. Having exited Mandatum and Nordea, we believe the lower capital requirements should allow for further excess capital distributions as the solvency target drops to 150–170%. We reiterate our BUY and have raised our target price to EUR47 (...

Håkon Astrup
  • Håkon Astrup

Sampo Oyj (Buy, TP: EUR45.00) - Continued strong underwriting

Q4 PTP increased significantly YOY, driven by improved underwriting and a strong investment result. If P&C reported a Q4 combined ratio of 83.1% and a 0.7%-points improvement in the underlying claims ratio. Sampo continues to price ahead of expected claims inflation and is seeing claims frequency in line with its expectations. We have raised our 2024–2025e EPS by 2% on the back of improved underwriting in If P&C and strong growth in Hastings. We reiterate our BUY and EUR45 target price.

Håkon Astrup
  • Håkon Astrup

Underwriting to remain disciplined

We expect heavy rainfall in Denmark and an early winter in the Nordics to lead to somewhat above-normalised claims in Q4, but strong equity markets and marked-to-market gains on bond investments to offset a rise in reported combined ratios. Despite higher interest rates in 2023, we remain confident that insurers will continue to focus on maintaining underwriting discipline. We still find the sector attractive long-term, and highlight Tryg as our top pick in the sector.

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