Sampo’s ugly decline may remain temporary – “Far from that situation”

Directly from Kauppalehti In the Talousamau program visited on Wednesday S-Bank senior portfolio manager Juha Varis does not believe the insurance group Sammon too car insurance concerns reflected in the rate recently will be a negative profit driver for Sammo in the next few years.

Sampo’s share fell about a couple of weeks ago as much as 5.5 percent including other insurance company shares. At the time, one explanation for the large decline in insurance companies was interpreted as investors’ desire to lighten their holdings, when the US Lemonade had said that it would offer a substantial discount to customers who have Tesla’s autonomous driving feature. The concern was that the decision would weaken the profitability of insurance companies by increasing price competition.

“In the Nordic countries, we are still far from the situation where, under these challenging conditions, self-driving cars would be allowed to go, and thus someone would start offering insurance at a cheaper price,” Varis estimates.

He interpreted such a scenario to be a really long-term thing. On the other hand, he pointed out that insurance prices in general have risen rapidly in the 2020s.

“That is, if a challenger comes from there one day, then in an absolute sense the insurances are so expensive that there is a chance to strike. But I don’t think that it is now feasible before the 30s or any kind of challenge here in the Nordic countries,” Varis said.

So is it still enough to believe in Sampo?

“Yes,” Varis answered.

Wednesday’s Talousam was hosted by a reporter Heidi Huotilainen.

In today’s broadcast, Stora Enso’s CEO Hans Sohlström responds to economic influencer Björn Wahlroos’ pulp claim and Juha Varis reviews the day’s earnings announcements. You can watch Wednesday’s Economic Morning in its entirety below.