Managing Director’s Review

Solvency is strong

Antti KuljukkaThe transformation of working life affects the insurance business. The majority of new jobs in Finland are being created in sectors that provide various services and rely on human capital. These business sectors are low risk in terms of statutory accident insurance, which means their insurance premiums are naturally lower. This working-life trend is apparent at Fennia in the form of lower premium income.

In 2018, the investment markets were very demanding and challenging. The uncertainty was especially reflected directly in the fourth-quarter result.

Fennia Group’s overall strong solvency enables the creation of even more diverse customer services in the areas of coping with damage, asset management, increasing wealth and financial security.

On 27 November 2018, Fennia Mutual Insurance Company acquired the entire share capital of Folksam Non-Life Insurance, a company with long traditions in the non-life insurance business. The transaction will increase Fennia’s market share by two percentage points, and the company’s premium income from non-life insurance will increase by an estimated EUR 70 million.

The general meetings in February decided on the merger and approved the merger plan. We estimate that the corporate merger will be completed by summer 2019. By integrating our operations, merging and combining our strengths, we are aiming to boost our competitiveness, but, above all, we want to continuously develop and offer the best customer experience to all new and current Fennia customers – companies, entrepreneurs and households.

Last year, close to 50,000 new household customers chose Fennia as their insurance company. According to a survey carried out by EPSI Rating, Fennia was the only insurance company that succeeded in improving its customer satisfaction, as assessed by private customers, and was ranked second in the survey.

The feedback from customers is proof of successful actions to facilitate and improve their day-to-day lives, smooth communication and good co-operation with partners.

We nicely implemented our mission, that is the purpose of our existence: For business and life. I wish to warmly thank our customers, as well as everyone in the Fennia Group for their solid commitment to serving our customers.


Antti Kuljukka
Group CEO