Development in line with expectations

The Group's premiums written totalled EUR 124 million. The amount included EUR 34 million of premiums written by foreign subsidiaries. Suomi Mutual has subsidiaries underwriting life insurance in Poland, Estonia, Latvia and Lithuania.

As Suomi Mutual no longer underwrites new insurances, it does not determine its market share on the basis of premiums written. The company describes its market position through market share calculated on insurance savings. Suomi Mutual manages 14.4% of all insurance savings in Finland. A year earlier the corresponding figure was 14.9%.

Claims paid by the Group grew by over EUR 100 million, totalling EUR 410 million. The increase can mostly be explained by growth in various savings-based claims (savings sums, pensions and surrenders). The increase in claims paid in this manner has a minimal impact on the Group's result.

The Group's operating expenses were EUR 38 million (EUR 34 million in 2005). Operating expenses for domestic operations decreased by EUR 0.6 million, thus falling below their budgeted level.