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Alandia result for the period January – June 2023


Overview of Alandia’s results for the period January–June 2023

Higher claims costs but improvement in investment income

Group results January–June 2023

  • Gross written premium amounted to EUR 47.9 (50.9) million
  • Insurance service result was EUR -1.7 million (EUR 1.4 million)
  • Net investment income was EUR 1.2 million (EUR -3.2 million)
  • Profit/loss after tax was EUR -2.2 million (EUR -0.3 million)

Comments from CEO Tony Karlström

Alandia’s gross written premium was negatively affected at the beginning of 2023 by planned events such as the portfolio transfer of Statutory Accident Insurance in the middle of 2022, the ending of the partnership with Marine Underwriting Services in Riga and the sale of Strike & Delay Insurance being discontinued from early 2023. An active reduction in risk appetite within transport insurance to a degree has resulted in premium volume decreasing in that product segment. The positive impact on gross written premium has come from a continued increase in insurance risks written by the company’s own organisation within Hull, P&I and Leisure Boat insurance. Continued high global inflation, which in many ways increases the cost of repairs, will continue to apply pressure for further premium level rises, some of which were implemented in early 2023.

Reinsurance costs have also risen globally for most non-life insurance segments as well as for Marine Insurance. This will also mean a continued need for premium increases.

Claims costs during the first half of the year were much higher than expected, partly as a result of the inflation previously referred to and partly due to a number of major accidents that occurred or were assessed during the year. It is expected that the loss ratio will improve during the second half of the year, however.

The expense ratio rose slightly during the early part of the year as a result of a decrease in gross written premium, a degree of cost inflation, including collectively agreed salary increases, and non-recurring costs. It is expected that the expense ratio will decrease slightly for the year as a whole.

Net investment income is slightly positive, with positive returns achieved in most asset classes.

Financial summary 

This interim report has been prepared in accordance with IFRS, with IFRS 17 applied for the first time as the new accounting standard for the insurance industry. IFRS 17 replaces IFRS 4 as the framework for the measurement and presentation of insurance contracts. Comparative figures for previous years have also been adjusted in line with the new current standard.

The key figures have been adapted to the industry standard following the introduction of IFRS 17, which in some cases has resulted in slight changes in definitions compared with previous reporting periods. The transition to IFRS 17 may result in a somewhat greater degree of volatility in key figures, particularly from a short-term perspective.

Insurance service result weakened by EUR 3.1 million: from EUR 1.4 million to EUR -1.7 million during the first half of 2023.

Gross written premium amounted to EUR 47.9 million (EUR 50.9 million). The first-half figures for 2022 include EUR 2.4 million from statutory accident and patient insurance, a portfolio that was divested to LokalTapiola on 1 July 2022.

Gross insurance claims increased during the first half of the year to EUR 50.9 million (EUR 39.2 million) and the loss ratio rose to 121.5 per cent (90.9). A greater proportion was covered through reinsurance, with a reinsurance result ratio during the period of -34.4 per cent (-8.9).

Operating expenses for insurance activities amounted to EUR 7.1 million (6.3) and the expense ratio was 17.1 per cent (14.7).

The combined ratio for non-life insurance operations was 104.1 per cent (96.7).

The solvency position remains very strong, with a solvency ratio of 244 per cent (275). For more information, please see the following tables of key figures and the attached income statement and balance sheet.


Alandia’s A- rating at Standard & Poor’s was confirmed on 4 October 2022 and the company was revised to Stable Outlook.

Significant events during the first half of 2023

The company implemented IFRS 17, the new accounting standard for the insurance industry, during the period.

The Annual General Meeting resolved to issue a dividend of EUR 43 per share.


Mariehamn, 31 August 2023

Board of Directors of Alandia Försäkring Abp

Appendix: Consolidated income statement and balance sheet



Marina Stenfors

Director, Communications

Phone: +358 18 29740