Sampo Balances Underwriting Quality With Growth; We Think the Former Takes Precedent
Sampo is an efficiently run Nordics-based personal lines insurer that tends to focus on improving its underwriting quality year on year, whether that is through holding on to customers for longer and therefore paying less in acquisition costs; digitalizing its operations and extracting expenses; gaining scale and negotiation power with its partners such as BMW, Ford, Mercedes, Nissan, Nordea, Volkswagen, and Volvia; or an ability to select lower-cost customers in terms of claims or customers that are willing to pay that little bit more in price. Sampo has proved this ability year after year, and to achieve this, it tends to invest organically around EUR 100 million annually. We think the savings the company has generated from these investments have more than covered their cost. We believe these investments have been good for shareholders.
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