LocalTapiola Life’s half-yearly report 1 January–30 June 2022: LocalTapiola Life increasing benefits to owner-customers

LocalTapiola Life’s January–June operating profit was EUR 46 million and solvency strengthened further. Poor performance of the investment market negatively affected our total result. We enhanced the benefits provided to customers in term life insurance.

Comments by LocalTapiola Life Managing Director Pasi Haarala:

“The uncertainty brought about by the COVID-19 pandemic and the war in Ukraine has sensitised customers to think about their own security and that of their loved ones. We want to help our owner-customers prepare for the future.

In line with our strategy, we focus on increasing lifelong security and customer benefit. We increased our customer benefits in term life insurance, in alignment with our ownership strategy confirmed in June. In new sales, we brought down the term life insurance premiums by 20 per cent, while raising our existing customers’ level of insurance cover by 25 per cent free of charge. By raising the sums insured, we wish not only to enhance our customers’ economic protection but also to make them more sensitive to thinking about their need for personal economic protection and about whether the protection they already have is adequate.

Additionally, we want to help our customers prepare for the future through saving. LocalTapiola’s widely diversified portfolios provide an excellent way to save up for the future, also in an uncertain market situation. The assets in these portfolios are well diversified within and across a variety of asset classes while enabling access to investments usually available only to large investors.

We would like to express our sincere gratitude to our customers for their trust and to our personnel for their excellent work and commitment in an uncertain situation.”

LocalTapiola Life’s operating result was EUR 46 million. Total result stood at EUR –119 million owing to the demanding market conditions affecting the investment business. Solvency has reinforced in 2022, with the solvency ratio at 307 per cent. Without the transitional provisions of solvency calculation, the solvency ratio stood at 274 per cent.

The growth in premiums written continued in term life insurance and in group pension insurance. Gross premiums written went down 5 per cent to EUR 233 million as a result of the negative development of premiums written in savings. In term life insurance, premiums written grew 5 per cent and in group pension 9 per cent. Premiums written in savings decreased 13 per cent amidst a challenging market environment.

LocalTapiola Life is the market leader in term life insurance and in group pension emerged as the second biggest insurer in the sector. Group pension products are an effective way to commit and reward employees. Our group pension customers get access to diversification across a wide range of asset classes as well as to the benefits available to a large investor.

As set out in her employment contract, LocalTapiola Life’s Managing Director Minna Kohmo will retire on 1 October 2022. Life’s Board of Directors appointed M.Sc (Econ.) Pasi Haarala the company’s new Managing Director as of 1 August 2022.

For LocalTapiola Life’s full half-yearly report, see here