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Sampo Plans Spin-off and Listing of Mandatum

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Stockholm (HedgeNordic) – The board of Finnish insurance group Sampo has proposed the demerger and subsequent listing of Mandatum, a life insurance and asset management business under Sampo’s umbrella. The board proposes an independent listing of the spin-off in Sampo’s efforts to focus on property and casualty insurance.

“The demerger would create a leading pure-play Nordic P&C insurer capable of delivering high and stable returns on capital, and an independent Mandatum,” says Björn Wahlroos, Chair of Sampo’s Board. “Mandatum is a major Finnish financial services provider with a strong brand that is well positioned to grow, both organically and via potential consolidation in the Finnish wealth and asset management space,” he continues. “However, with Sampo’s strategic focus firmly on P&C insurance, the Board sees limited room to commit to support this within the Group.”

“The demerger would create a leading pure-play Nordic P&C insurer capable of delivering high and stable returns on capital, and an independent Mandatum.”

The separation of Mandatum would lead to a reduction in Sampo’s exposure to market risk due to lower exposure to risk assets and with-profit insurance liabilities. This decision can result in a reduction in the volatility of earnings and capital, enabling Sampo to operate with lower financial buffers.

At the end of 2022, Mandatum had €16 billion of assets under management, excluding assets managed for other Sampo Group companies. Investment management is one of Mandatum’s core pillars, with the company having a strong investment track record across a number of asset classes such as private debt and other alternative assets. An independently-listed Mandatum would have the opportunity to grow both organically and through consolidation in its home market. “Such growth would require commitments from Sampo that go beyond what the Board deems to be appropriate under the Group’s P&C insurance-focused strategy,” according to a press release.

In the demerger process, all of the shares in Sampo’s wholly-owned direct subsidiary Mandatum Holding and related assets and liabilities will transfer to a to-be-incorporated company Mandatum plc on October 1, 2023. If approved, Sampo shareholders are set to receive one new share in Mandatum plc for each existing series A or series B share in Sampo plc. Shares in Mandatum would be admitted for trading on Nasdaq Helsinki. The demerger has to be approved by shareholders at Sampo’s Annual General Meeting on May 17.

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Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

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