Overview of Alandia’s results for the period January–June 2024
Improved profit compared with last year
Group results January–June 2024
- Insurance revenue amounted to EUR 39.5 (42.4) million
- Insurance service result was EUR 1.2 (-4.0 ) million
- Net investment income was EUR 9.8 (0.9) million
- Profit/loss after tax was EUR 7.3 (-2.8) million
Comments from CEO Tony Karlström
Alandia’s profit for the first half of the year is EUR 7.3 million, a clear improvement compared with the corresponding period of the previous year (EUR -2.8 million). Both insurance and investment activities are showing clearly better results.
Insurance revenue remains lower than last year as a result of the active measures that were taken then to reduce certain risks and so strengthen the portfolio’s profitability. However, written premiums have increased again during the early part of this year and insurance revenue for the full year is expected to fall only marginally below that of the previous full year. There is currently increasing competition, however, mainly on the Hull insurance market, as a result of increased risk appetite among existing insurers and new players in the market.
Net investment income has benefited from rising stock markets and falling interest rates during the year. As a result, all asset classes have achieved a positive return, although the returns on unlisted holdings and certain property investments are showing modest or weak development.
In April, Alandia was able to launch branch operations on the Norwegian market, establishing both its first employee and its first local office in Oslo. It was also in April that the company was able to cover its first risks in renewable energy in the form of insurance for offshore wind farms. The number of insurance policies written is still extremely modest but is expected to grow significantly at the end of the year.
Financial summary
Insurance service result improved by EUR 5.2 million; from EUR -4.0 million to EUR 1.2 million in the first half of 2024. This is mainly due to a significantly lower loss ratio.
Insurance revenue amounted to EUR 39.5 (42.4) million
Gross insurance claims decreased significantly in the first half of the year to EUR 27.9 (50.4) million and the loss ratio decreased to 70.8 (118.8) per cent. The higher claims costs in the previous year were partly covered by reinsurance, which is reflected in the changed reinsurance ratio, which for the reporting period for the year is 7.4 (-26.1) per cent.
Operating expenses for insurance activities amounted to EUR 7.4 (7.1) million and the expense ratio was 18.7 (16.8) per cent.
The combined ratio for non-life insurance operations was 97.0 (109.5) per cent.
Net investment income was significantly higher than last year and amounted to EUR 9.8 (0.9) million.
The solvency position remains very strong with a solvency ratio of 249 (244) per cent. For more information, please see the following tables of key figures and the attached income statement and balance sheet.
Rating
Alandia’s A- rating at Standard & Poor’s was confirmed on 26 March 2024 with Stable Outlook.
Significant events during the first half of 2024
The Annual General Meeting resolved to issue a dividend of EUR 30 per share.
A branch was opened in Norway.
The first renewable energy insurance policies (offshore wind farms) were written; volumes are initially marginal relative to the Group’s total turnover
Mariehamn, 28 August 2024
Board of Directors of
Alandia Försäkring Abp
Appendix: Consolidated income statement and balance sheet