Mandatum plc, Stock exchange release, 8 May 2026 at 8:30 a.m. EEST
January-March 2026 in brief
• Client assets under management increased by 10% from the previous
year to EUR 15.4 (31 Mar 2025: 14.0) billion. Net flow was strong, EUR 248 (256)
million.
• Capital-light profit before taxes increased by 35% from the previous
year and totalled EUR 26.8 (19.9) million. Fee result increased by 10% to EUR
20.6 (18.8) million as a result of the increase in client assets under
management (AuM).
• Net finance result decreased to EUR -46.8 (51.8) million driven by
the one-off negative impact of EUR 36.2 million from the change in discount rate
assumption as well as low investment return.
· Mandatum changed the discount rate curve used in its IFRS 17 reporting as of
31 March 2026 in order to improve the predictability of earnings reporting and
enhance the transparency of net finance result. The change in the discount rate
curve, i.e. the change in discount rate assumptions, resulted in a one‑off
negative impact on earnings recognised in the first quarter. However, the change
has no impact on Mandatum's cash flows, solvency or dividend‑paying capacity.
Instead, it represents a change in the accrual of IFRS earnings over time, and
the earnings impact is expected to be offset over time.
• Profit before taxes was EUR -25.9 (62.0) million and it included a
one‑off negative earnings impact of EUR 36.2 million on net finance result
arising from the change in discount rate assumption. Profit before taxes
excluding the change in discount rate assumption was EUR 10.3 million.
• Cost/income ratio related to client AuM1 decreased by 6 p.p. and
improved to 49 (55)% as client assets under management increased.
• Organic capital generation exceeded the result for the period.
Earnings per share (EPS) was EUR -0.02 (0.10) and organic capital generation
(OCG) per share was EUR 0.10 (0.17).
• Return on equity2 (ROE) was -3.5 (12.4)%.
• The Solvency II ratio adjusted for dividend accrual and without the
transitional measure was 203 (31 Dec 2025: 169)% mainly as a result of the
completion of the sale of Saxo Bank A/S shares.
(1) Trailing twelve months
(2) Annualised
Outlook for 2026 (unchanged)
· The fee result is expected to increase from year 2025.
· The with-profit portfolio is expected to decrease further.
Factors affecting Mandatum's financial performance
· The fee result for year 2026 is dependent on several factors, such as client
behaviour and client asset allocation, competition and capital market
conditions.
· The unwinding rate, which has an impact on the insurance finance expenses,
is 2.0 per cent in 2026 (2.4 per cent in 2025). In addition to the unwinding
rate, changes in the discount rate will affect the amount of the insurance
finance expense. Movements in the investment market can create relatively high
volatility in the net finance result.
· In addition, and as typical for the industry, the overall results of
Mandatum will be impacted by actuarial assumptions that are updated regularly.
Key figures
EUR million 1-3/2 1-3/20 Change, % 1-12/2025
026 25
Fee result 20.6 18.8 10% 80.9
Net finance result3 -46.8 51.8 n.m. 131.6
Result related to risk policies 6.2 2.3 n.m. 10.9
Other result -6.0 -10.9 45% -41.4
Profit before taxes for the period -25.9 62.0 n.m. 182.1
Profit before taxes for the period 10.3 62.0 -83% 182.1
excluding the change in discount rate
assumption3
Capital-light profit before taxes 26.8 19.9 35% 91.8
Net flow 248 256 -3% 723
Earnings per share, EUR -0.02 0.10 n.m. 0.31
Equity per share, EUR 2.81 3.29 -15% 2.84
Organic capital generation per share, EUR 0.10 0.17 -43% 0.60
Return on equity-%1 -3.5% 12.4% -15.9 p.p. 10.3%
Cost/income ratio related to client AuM, 49% 55% -6 p.p 49%
%2
(1) Annualised
(2) Trailing twelve months
(3) The change in discount rate assumption increased the present value of
the expected cash flows included in insurance contract liabilities, resulting in
a one‑off increase of EUR 36.2 million in insurance finance expenses in the
first quarter of 2026.
EUR million 31 Mar 31 Mar Change, % 31 Dec 2025
2026 2025
Client assets under management (AuM) 15,435 14,036 10% 15,323
Solvency ratio, adjusted for dividend 220% 207% 13 p.p. 184%
accrual, %
Solvency ratio, adjusted for dividend 203% 191% 12 p.p. 169%
accrual, w/o transitional measure, %
CEO comment
Once again, the investment market sentiment was mixed in the first quarter.
Geopolitical tensions, such as the escalation in the Middle East, sent clear
ripples across the financial markets. Yet, compared to last year, the markets'
resilience to volatility has undoubtedly grown. The nervousness became more
apparent towards the end of the quarter, and it was reflected in a decline in
our client assets under management in March. However, confidence in the markets
has since mostly recovered. Overall, investors need to have nerves of steel with
the constant influx of news and rapidly changing circumstances. What is needed
is a long-term investment strategy coupled with the ability to leverage market
movements.
For Mandatum, the first quarter was successful despite the unstable environment.
The profit of the capital-light business at the core of our strategy grew 35 per
cent year-on-year and was EUR 26.8 million. In my view, this is a particularly
strong indication that our operations are progressing as planned and that the
quality of the result is moving in the right direction. The fee result increased
10 per cent year-on-year, supported by the growth in client assets under
management.
New sales remained at a good level and the quarter's net flow was EUR 248
million. The greatest net flow came from asset and wealth management, but also
the net flow from the corporate client business increased thanks to good
personnel fund sales. Client assets under management rose by one per cent during
the quarter despite the negative market impact and 10 per cent year-on-year to
EUR 15.4 billion in all client segments. The main driver of growth was once
again asset and wealth management, and specifically private wealth management
where client assets under management grew 17 per cent from the previous year. It
is encouraging to see our efforts in this area delivering results.
International client assets grew 12 per cent from the year earlier.
International investment capital is often fast-moving, and market uncertainty is
typically evident - especially in institutional asset management - in higher
outflow rates and delayed investment decisions. On the other hand, when the
market situation eases, cash flows often return quickly. With that in mind, I am
happy with the performance of our international business in the first quarter.
Continued success in Mandatum's funds
The successful raising of assets for the new opportunistic MAMCO II credit fund
was a spectacular achievement considering the market environment. The fund's
investment commitments totalled more than EUR 300 million already at the start
of April in connection with its first closing. The fund's investment operations
were launched in an exceptionally interesting market environment, and the fund
has benefited from the recent price volatility in the credit markets. The best
investments are, in fact, often made in exceptional circumstances. We also
gained some well-deserved attention when Mandatum's Managed Futures fund secured
second place in the Best Nordic Managed Futures / CTA Fund category in late
April at Nordic Hedge Award in Stockholm. The hedge fund, which uses e.g. AI in
its investment decisions, has been extremely successful in the Nordic
competitive landscape, and earlier this year, it was recognised as the Best
Performing Fund in its category at the 2026 UCITS Hedge Awards.
Mandatum's profit before taxes, excluding the technical discount rate curve
inversion impact, was EUR 10.1 million in the first quarter, and it was weighed
down by a lower net finance result arising from unfavourable market movements.
Especially with regard to the return on our own balance sheet investments, we
fell short of our targets during the quarter. It is worth remembering that
investment market and interest rate movements in particular can occasionally
manifest as significant volatility in the net finance result. This is typical of
the life insurance business. It is at least as important to understand that the
earnings volatility caused by the net finance result does not impact the
company's cash flows, solvency or dividend payout capacity.
Mandatum's already strong solvency improved significantly during the first
quarter. The solvency ratio increased from the start of the year by 34
percentage points to 203 per cent as a result of the sale of Saxo Bank's shares,
which supports our cumulative shareholder payout target of over a billion euros
for this strategy period. Dividend payment will remain a key component of
capital management and shareholder value creation for Mandatum going forward.
All in all, we are well-positioned for the rest of 2026. The core of our
strategy - profitable growth of the capital-light business - is proceeding as
planned, and positive client activity has remained at a good level even in an up
-and-down market. As a top-tier fixed-income asset manager, Mandatum will
continue to benefit from the rising interest rates also going forward.
Petri Niemisvirta
Chief Executive Officer
Conference call on 8 May 2026
A conference call in English for analysts and investors is scheduled for 8 May
2026 at 11.00 a.m. (EEST, Finnish time). In the conference call CEO Petri
Niemisvirta, CFO Matti Ahokas and VP, Investor Relations Lotta Borgström will
present the company's results and answer investors' questions. The conference
call can be followed live at
mandatum.fi/en/result (https://www.mandatum.fi/en/result).
It is possible to ask questions by phone or via the conference call chat
function.To ask questions by phone, please register by using the following link:
https://events.inderes.com/mandatum/q1-2026/dial-in. After the registration, you
will be provided with phone numbers as well as a conference ID that you can use
to join the conference call. If you wish to ask a question, please dial #5 on
your telephone keypad to enter the queue.
The recording of the conference call will be available on the company's website
after the event.
Additional information:
Matti Ahokas
CFO
Tel. +358 40 575 1978
matti.ahokas(a)mandatum.fi
Lotta Borgström
VP, Investor Relations
Tel. +358 50 0221 027
lotta.borgstrom(a)mandatum.fi
Niina Riihelä
SVP, Communications, Brand and Sustainability
Tel. +358 40 728 1548
niina.riihela(a)mandatum.fi
The Interim Report can be found as an attachment to this stock exchange release.
The supplementary presentation material for investors accompanying the Mandatum
interim report is available at
mandatum.fi/en/result (https://www.mandatum.fi/en/group/investors/quarterly
-reporting-and-presentations/).
Mandatum plc will publish its Half-Year Financial Report on 13 August 2026 and
Q3 Interim Report on 10 November 2026.
Mandatum in brief
Mandatum is a major financial services provider, combining expertise in asset
and wealth management and life insurance. Clients include institutional
investors, companies and private individuals. Mandatum offers a broad range of
services encompassing asset and wealth management, compensation and rewards,
supplementary pensions and personal risk insurance. Skilled personnel, strong
brand and proven investment track record are at the centre of Mandatum's
success. The company has been listed on Nasdaq Helsinki since 2023.
mandatum.fi/en/group/ (https://www.mandatum.fi/en/group/)
Distribution:
Nasdaq Helsinki
Financial Supervisory Authority
Key media
www.mandatum.fi (https://www.mandatum.fi/en/)