Finland’s biggest insurance group Sampo posted third-quarter net profits in line with expectations on Wednesday thanks to favourable currency movements and an appreciation of its Nordea Bank stake.
The company’s net profit for the July-September period of €284m ($399m) showed a steady rise this year from the outcome in the two previous quarters, when it posted net profits of 245m 273m respectively.
Compared to the outcome 12 months ago, Sampo’s third-quarter profit nearly doubled from 148 million, but the massive improvement was largely the result of a change in the status of its 20.5-stake in Nordic banking giant Nordea.
At the beginning of 2010, Nordea’s status shifted from an equity investment to an associate company, immediately increasing Sampo’s reported profits.
The company said its third-quarter improvement also reflected recovery at Sampo’s casualty and property insurance company If P&C. Sampo’s expectations for the rest of 2010 remain unchanged.
With global recovery continuing as expected, Sampo said it saw “a good result for 2010 with a continuing good profitability.”
If P&C insurance group’s parent company is based in Sweden, and serves the entire Nordic and Baltic areas as well as Russia. The price of shares in Sampo fell by 0.35 percent to €20.18 in midday trading on a slightly positive Helsinki stock exchange.
Helsinki, Nov 3, 2010 (AFP)
