Moody’s boosts Sampo

Moody’s Ratings said it raised Sampo plc’s long-term issuer and the senior unsecured debt ratings to A2 from A3, as well as Sampo’s senior unsecured medium-term note rating to (P)A2 from (P)A3. At the same time, the agency upgraded the ratings of Sampo’s subordinated notes to A3(hyb) from Baa1(hyb).

The agency said it also revised the outlook to stable from positive and upgraded the insurance financial strength rating of Sampo’s core subsidiary If P&C Insurance Ltd.

“If P&C is Sampo's main operating entity and materially drives the group's credit profile. The A2 senior unsecured debt ratings of Sampo plc are anchored on the group's Aa3 notional IFSR. The ratings reflect the group's position as the largest and most diversified insurance franchise in the Nordic property and casualty (P&C) market, alongside very strong and consistent profitability and solid capital adequacy, underpinned by low financial market sensitivities.

“Partly offsetting these strengths are the group's narrow geographic focus compared to larger European peers, notwithstanding the group’s presence in the United Kingdom (UK), modest scale relative to similarly rated global peers and moderately high exposure to equities with potential to result in volatile investment earnings,” Moody’s said in a press release.

The stable outlook captures the view that Sampo will protect its leading position in the Nordic

non-life market, as well as its robust profitability both from a return on capital and underwriting

perspective, the agency said.

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