Sampo Oyj

Good morning everyone and welcome to Sampo Group's conference call on second quarter 26 results. My name is Mirko Hurmerinta, the interim head of IR at Sampo. I'm joined on the call today by Group CEO Morten Torsrud and Group CFO Lars Kufalbek. The call will include a short presentation by Morten and Lars, followed by Q&A. A recording of the call will later be available at sampo.com. With that, I hand over to you, Marten. Please go ahead.

Thanks, Mirko. And good morning and a warm welcome to Sampo's second quarter result conference call on my behalf as well. So, Sampo delivered strong first half and second quarter results, driven by broad-based and durable top-line growth. and continued cost efficiency improvements across the group. Our first half like-for-like growth amounted to 3% and accelerated to 5% in the second quarter. This was supported by our private and SME lines in all markets, which I will cover in more detail shortly. Combined with stable strong margins in a favorable glimpse environment, the top-line growth translated into an underwriting result growth of 7% in the first half and 5% in the second quarter on a currency-adjusted basis. The operating EPS increased by 12% in the first half and by 6% in the second quarter. Meanwhile, our investment returns saw a healthy rebound during the second quarter, and our solvency coverage remained robust, of which Lars will elaborate on in a moment. Following the strong first half performance, we have adjusted our full-year outlook upwards, both when it comes to insurance revenues, as well as for the underwriting result. Now let's take a closer look at our key segments with a focus on second quarter development. Our largest business area private in the Nordics saw continued robust top-line growth of 5% in the quarter. While the growth rate has slowed down a tad from previous quarters, it has become increasingly more volume-driven. During the second quarter, we saw increase in customer count as well as in number of objects and object sales in all countries, while retention remained high and broadly stable. To me, this underlines the breadth and durability of our organic growth, which continues to be supported by our consistent efforts and initiatives to improve our digital customer journeys. To give a few examples of our digital initiatives during the second quarter, our IF mobile app reached 1.8 million downloads across the Nordics, meaning nearly half of our household customers now use the mobile app to manage their policies and report claims. In fact, during Q2, we reached our operational ambition of more than 70% of claims being reported digitally by the end of this year. We also expanded our AI-powered virtual agent IfGPT from Denmark into Sweden and Norway. And at the same time, we also launched an IfVet app in all Nordic countries, which allow pet owners to contact vets 24-7, free of charge. Turning to the UK. In the UK, the pricing environment has remained competitive and on the somewhat softer side. However, we've seen further stabilization in pricing trends and we remain well positioned to accelerate our growth when the cycle now turns. Nevertheless, I'm pleased to see that even in this somewhat softer market environment, we have continued to find carefully selected pockets of growth supported by our investments in data, pricing capabilities, as well as in product innovation. In the second quarter, we added around 180,000 customers representing 13% growth year on year and 4% over the quarter. This drove the like-for-like top-line growth in our UK business to 7.6% up from 1% in the first quarter. At the same time, we delivered strong margins within our target operating range, supported by continued operational efficiency. Moving to Nordic Commercial, which was our fastest growing segment in this second quarter. with an 8.6% like-for-like growth, another proof of our diversified and durable organic growth. The growth was supported by improved traction in our SME portfolio, which saw accelerated growth of more than 5% in a quarter and a good increase in number of customers. Further, the second quarter's performance was propelled by several larger customer wins, One of these was a major personal insurance agreement in Denmark that provides access to comprehensive health care for 40,000 pensioners. This is an exciting expansion into a new segment and not only demonstrates our strong position in the personal insurance market, but also underlines the sustained structural demand for complementary health care beyond also the working age segment. Given that there are over 1 million pensioners only in Denmark, we look forward to assessing this opportunity and open up this new market field. Now, Lars will continue with some reflections on the investment performance and on our balance sheet.

Thank you so much, Morten. It has been somewhat of a ride in the financial market in the first half of 2026. And following the very unsettled first quarter, we saw the second quarter saw a sharp rebound both in the equity and fixed income assets. And that, of course, also naturally reflected to our investment portfolio. On top of the continued stable interest and dividend income we see, our core portfolio saw net gains of 240 million euros. And that's roughly evenly split between fixed income and equities in the quarter. This was partly offset by a soft development in our two legacy assets, NOBA and NEXI. And just as a reminder, the market value of NEXI is reported with a one quarter delay, meaning the second quarter figures here reflect the assets actual performance in Q1. All in all, the total net investment income stood at 360 million euros, which more than offsets the market-driven net loss that we saw in Q1. If we turn to the solvency development in Q2, that remained strong and unchanged from the first quarter. This was of course driven by a strong operating performance, offsetting the slightly negative market FX, which ended up being smaller than we had initially anticipated. The main driver for the negative market effects was the symmetric adjustment, which increased to nearly 9% in the quarter, up from 5% last quarter. And hence, it is now almost maxed out under the current solvency regime, where it can maximum be 10%. This is an important figure to keep in mind when looking at our solvency. With a zero symmetric adjustment, all else equal, our solvency ratio would have been 180%. So I'm naturally very happy with the 174% solvency with the symmetric adjustment being where it is at the moment. And also, just as a reminder, we deduct 90% of our operating results from our own funds each quarter, so the solvency coverage fully reflects our distribution commitments to our shareholders. So with that, I leave it back to you, Morten.