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LocalTapiola Life’s financial statements 1 January–31 December 2022: LocalTapiola Life increases benefits to owner-customers

15.2.2023 - Talous

LocalTapiola Life’s operating profit for January–December was EUR 63.8 million and solvency strengthened further, although poor performance of the investment market negatively affected our total result. We increased customer benefits in term life insurance both by lowering premiums and by increasing sums insured.

Comments by LocalTapiola Life Managing Director Pasi Haarala:

“In alignment with our owner intent confirmed in June, we increased customer benefits in term life insurance. In new sales, we lowered premiums by 20 per cent, and raised our existing customers’ level of insurance cover by 25 per cent free of charge.

In a volatile global situation, we want to help our customers improve their financial protection, while encouraging them to reflect on whether their level of financial protection is adequate. In line with our strategy, our focus is on increasing lifelong security and customer benefit.

Preparing for the future through saving is a key element of lifelong security. Through widely diversified portfolios, we provide our customers with an excellent way to save up. The assets in these portfolios are well diversified within a variety of asset classes containing investment options usually available only to large investors.

I would like to express my sincere gratitude to our customers for their trust and to our personnel for their excellent work and commitment in an uncertain situation. Thriving personnel are our most important success factor.”

LocalTapiola Life’s operating result was EUR 63.8 million. Total result stood at EUR –165.9 million due to the demanding market conditions affecting the investment business. Solvency strengthened in 2022 for a significant part owing to increases in interest rates, with the solvency ratio at 321 per cent. Without the transitional provisions of solvency calculation, the solvency ratio stood at 286 per cent.

LocalTapiola is the market leader in term life insurance, and the premiums written for term life insurance continued to grow a further 5 per cent. The premiums written for group pension fell 3 per cent and the premiums written for savings dropped 21 per cent amidst a challenging market environment. Gross premiums written decreased 11 per cent to EUR 429 million.

In 2023 LocalTapiola Life will be launching a system reform project aiming to transform customer experience. This venture will enable the provision to customers of services that are increasingly understandable and meaningful, as well as smoother to use.

As set out in her employment contract, LocalTapiola Life’s Managing Director Minna Kohmo retired 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.

Read the full financial statements here.