Introducing Sampo’s business areas: Private Nordic

Sampo reports its financial performance under four segments based on its
operational business areas: Private Nordic, Private UK, Nordic Commercial and
Nordic Industrial. In this blog series, we will introduce all our segments. First
up is Private Nordic.

Private Nordic is the Group’s largest segment and at the core of its value 
creation. In 2024, Private Nordic reported insurance revenue of EUR 3.7 billion,
representing 44 per cent of the Group’s total. In total, Sampo serves around 3.7
million households in Sweden, Denmark, Norway, and Finland. The daily
business is carried through the Group’s main customer brand, If, and other
brands including Topdanmark and various white-label partnerships.

In terms of product mix, motor insurance is the largest product line within the
segment, representing almost half of the insurance revenue. In fact, Sampo was
one of the first companies to offer motor insurance in Finland in the 1920s.
Since then, motor insurance has been our key products and today Sampo is a
clear market leader with around 24 per cent market share in the Nordics.
Sampo’s position is exceptionally strong in new cars, particularly in Sweden,
where we have over 70 per cent market share through our long partnerships
with car manufacturers.

Insurance revenue mix by product line (2024)

Operational ambitions

In its Capital Markets Day in 2024, Sampo announced a set of financial targets 
for 2024-2026 backed by operational ambitions in different segments. For
Nordic Private, there are 3 externally communicated ambitions. In addition, 2
ambitions for the total Nordic business are primarily driven by the development
in Nordic Private.

• Private Nordic, Customer retention: 89% or higher
• Private Nordic, GWP growth in property: >5% (period average)
• Private Nordic, Digital sales: >175 EURm by 2026 (updated from 160 
  EURm in Q1/2025)
• Total Nordics, GWP growth in personal insurance: >7.5% (period 
  average)
• Total Nordics, online reported claims: >70% by 2026

Customer retention measures the share of households that renew their 
insurance policies each year. It’s undoubtedly one of the most important key
figures for both top-line and underwriting performance. High retention means
stable and predictable premium development with attractive cross-selling
opportunities as well as better underwriting margins, since retaining existing
customers is far more cost efficient than acquiring new ones due to marketing
and distribution costs. In addition, a stable customer base leads to a balanced
and predictable risk pool, whereas a sudden churn can distort risk assessment
and pricing models.

However, achieving a high retention is not an easy task. It requires superior
customer service, from competitive pricing to easy-to-use digital services and
fast and fair claims handling. This is exactly where Sampo is at its best, which
has reflected to the retention rate being high and stable in the 89-90 per cent
range in the past years.

Private property, particularly home insurances, is one of the areas where the
group sees attractive growth opportunities. These are supported by an
extensive digital offering, broad distribution mix and new partnerships. Even
though the development in the Nordic housing market has been somewhat
sluggish recently due to higher interest rates and dampened consumer
confidence, Sampo’s growth in property has been in line with its ambition, with
6 per cent growth in 2024 and in the first half of 2025 as well.

Another attractive growth area within the segment is personal insurance,
including e.g. accident and health insurances. As the pressure on public
healthcare system has grown year after year, there’s increasing demand for
supplemental private healthcare. Sampo has an operational ambition to grow
the personal insurance product line over 7.5 per cent on average across the Nordic segments.

Within Nordic Private, personal insurance saw 11 per cent
growth in 2024 and the first half of 2025.

When it comes to sales, our digital platforms are the most important
distribution channel with over 50 per cent of new sales originating from digital
channels. Yet, there is still plenty room to grow, particularly in Denmark, where
the rate of digitalisation within P&C insurance has been lagging behind other
Nordic countries. In 2024, we saw 10 per cent growth in digital sales,
accelerating to 12 per cent in the first half of 2025. The performance is well in
line with our ambition to achieve over EUR 175 million of digital sales by the
end of 2026.

While our digital platforms provide attractive growth opportunities, sales is just
one part of our digital customer engine that enables best-in-class customer
service. In the event of damage, it’s of paramount importance that the claims
handling process works flawlessly. Our ambition is that over 70 per cent of
claims will be reported online across the Nordic segments by the end of 2026.
Using our digital platforms for reporting claims translates to faster claims
handling processes and higher customer satisfaction but also improved cost
efficiency. Claims handling is one of the areas where we are increasingly using
artificial intelligence, for example in assessing repair costs for vehicle damages.
In Nordic Private (excl. Topdanmark), already 64 per cent of claims were
reported online in the first half of 2025.

Underwriting result growth through top-line performance

Being the largest segment within the Group, Nordic Private has been a
key contributor to Sampo’s underwriting result growth. The performance
has been supported by organic top-line growth.

Since 2021, the segment has seen 5.5 per cent top-line growth on
average, with accelerating performance lately. In the first half of 2025,
we achieved 8.6 per cent growth. This was supported by high and stable
retention, price action to mitigate claims inflation as well as positive
development in both number of customers and objects insured.

Like-for-like GWP growth (2021-H1/2025)

Thanks to the scale benefits and higher use of digital solutions, Private
Nordic enjoys higher underwriting margins than our Nordic corporate
segments, translating to lower combined ratios. In addition, the
combined ratio volatility is usually lower as corporate businesses are
exposed to stochastic large claims. However, weather conditions can play
a big role in Private Nordic, particularly in the winter quarters (Q1 and
Q4). For example, Q1/2025 saw very benign Nordic winter conditions,
whereas the Q1/2024 comparison period witnessed the most challenging
winter in 10 years. This led to a material 4.6 percentage points swing in
the combined ratio between the periods.

Combined ratio (2021-H1/2025)