Mandatum's accounting change improves short-term predictability of earnings

Translation: Original published in Finnish on 4/27/2026 at 5:06 pm EEST.

Mandatum announced on Friday that it will adopt a different discount rate curve than before for its reporting under IFRS 17, improving the predictability of its net finance result. The change will also result in a one-off negative impact on earnings of 36 MEUR. This change is purely an accounting adjustment and does not affect our view of the company.

Change improves predictability of with-profit business

Mandatum values insurance contract liabilities on its balance sheet at fair value by discounting cash flows. The previously used discount rate included items that were difficult to estimate and, going forward, changes in the risk-free interest rate are expected to drive short-term developments. The announced update to the accounting method thus improves the predictability of the net finance result and is a welcome change in our view.

One-off impact is purely accounting-related

The change in the discount rate curve increases the present value of the insurance contract liabilities, resulting in a one-off negative impact of approximately 36 MEUR on Mandatum’s Q1 profit. However, it is important to note that this is purely an accounting item in the IFRS earnings and has no impact on cash flows or our view of the company. We will take this impact into account in our Q1 earnings preview.