Sampo plc, press release, 16 September 2025 at 6.10 pm EEST NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES OF AMERICA, ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES OF AMERICA OR THE DISTRICT OF COLUMBIA (the United States) OR IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN ANY OTHER JURISDICTION WHERE OR TO WHOM IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE THIS ANNOUNCEMENT Sampo prices the issuance of new Restricte ...

Group 1 - Sampo plc has announced tender offers for its outstanding subordinated notes due in 2052 and 2049, with a maximum payable amount of EUR 300 million, including accrued interest [1][2] - The tender offers and planned new issuance are part of Sampo Group's ordinary capital management actions [2] - The new issuance involves EUR 300 million of a new series of euro-denominated fixed rate reset perpetual restricted tier 1 notes [1]

Core Insights - Bigbank AS updated its strategy for the period 2022-2026 on 28 August 2025 [1] - The bank has suspended the further implementation of its internal ratings-based (IRB) project due to diminished capital advantages from regulatory changes [2][3] - The focus will shift towards enhancing loan portfolio quality and capital management rather than continuing with the IRB project [3] Company Overview - Bigbank AS is a commercial bank with over 30 years of operating history, owned by Estonian capital [4] - As of 31 July 2025, the bank's total assets were €3.1 billion, with equity of €284 million [4] - The bank operates in nine countries, serving over 175,000 active customers and employing more than 600 people [4] - Moody's has assigned Bigbank a long-term bank deposit rating of Ba1, with a baseline credit assessment (BCA) and adjusted BCA of Ba2 [4]

Financial Performance Highlights - Service Revenue increased by 2.2%, driven by Mobile growth[9, 14] - EBITDA increased by 0.9%, including initial costs of regional network expansion[9, 14] - Operating Free Cash Flow (OFCF) increased by 23.6% due to lower capex and working capital impacts[10, 14] - NPAT increased significantly due to EBITDA growth, lower financing costs, and a tax benefit[9, 14] Mobile Business - Mobile subscribers increased by 100,000, driven by market-leading growth post-regional network expansion[9] - Total ARPU increased by 1% to $34.97 in 1H25[23, 24] - Fixed Wireless subscribers increased by 16.2% and now represent 14% of total fixed subscribers[32] Capital Management - Estimated net cash proceeds of $4.7 billion are expected from capital management plans[11] - A capital reduction plan aims to distribute up to $3 billion to shareholders[11] - $1.7 billion of debt was repaid in August, with further repayments planned[11] FY25 Outlook - Targeting FY25 annual dividend of 18 cents per share, same as FY24[10] - FY25 EBITDA guidance (excluding material one-offs) is $1.605 billion to $1.655 billion on a Pro Forma basis[94] - FY25 capital expenditure (excluding spectrum payments) is expected to be approximately $790 million[94]

Core Viewpoint - Sompo Holdings is acquiring 100% of Aspen Insurance Holdings for $37.50 per share in cash, totaling approximately $3.5 billion, which enhances Sompo's portfolio and strengthens its position in specialty insurance and reinsurance markets [2][11]. Group 1: Transaction Overview - The merger agreement involves the redemption of all outstanding Class A ordinary shares of Aspen for cash and their delisting from NYSE, while preference shares will remain outstanding [1][12]. - The transaction is expected to close in the first half of 2026, pending regulatory approvals and customary closing conditions [13]. Group 2: Strategic Benefits - The acquisition diversifies Sompo's portfolio geographically, particularly in high-growth international markets, and enhances its underwriting expertise in core specialty insurance and reinsurance lines [1][5]. - Aspen's expertise in various global reinsurance lines and its top-tier Lloyd's syndicate will provide Sompo access to complex risks and untapped markets [6]. Group 3: Financial Impact - The transaction is anticipated to be immediately accretive to Sompo's return on equity (ROE) post-closing, contributing significantly to the group's financial profile [10]. - Aspen's recent financial performance includes a combined ratio of 87.9% and an operating return on average equity of 19.4% for the twelve months ended December 31, 2024 [10]. Group 4: Premium and Valuation - The acquisition price of $37.50 per share represents a 35.6% premium to Aspen's unaffected share price of $27.66 as of August 19, 2025 [11]. - This premium reflects the quality and potential of Aspen's business as recognized by Sompo [4]. Group 5: Leadership and Integration - Sompo Group CEO Mikio Okumura emphasized the transaction as part of their strategy to enhance resilience and promote collaboration within the group [3]. - James Shea, CEO of Sompo P&C, highlighted that strategic acquisitions are key to building a robust global platform, and Aspen represents a timely opportunity in the market cycle [4].

Financial Data and Key Metrics Changes - The underlying NPAT for FY '25 was £40.8 million, with statutory NPAT up 21% to £35 million [26] - Gross profit increased by 12% or £15 million, reflecting growth across both distribution and manufacturing segments [26][32] - Operating expenses totaled $96.6 million, with a normalized second half OpEx of $46 million, down from the first half [27][30] Business Line Data and Key Metrics Changes - Distribution earnings contributed 81% of the business, with gross profit up 10% to $68 million [6][32] - Manufacturing earnings surged 53% to $16 million, driven by a larger loan book and improved net interest margins [4][32] - Subscription income rose 13% to $21 million, supported by increased adoption of BrokerEngine plus and other services [4] Market Data and Key Metrics Changes - Broker market share increased from 75% to 77%, with expectations to reach 80% [12] - AFG Securities loan book grew by 23% to $5.5 billion, with settlements up 65% [3][20] - The residential mortgage book grew by 5% to $211 billion, indicating strong market activity [6][17] Company Strategy and Development Direction - The company focuses on three strategic pillars: growing the broker network, providing market-leading technology, and delivering high margins through the distribution network [8][10] - Investments in technology and strategic acquisitions are aimed at diversifying income sources beyond traditional residential mortgage aggregation [4][10] - The company anticipates continued consolidation within the broker industry, positioning itself to capture future growth opportunities [13][52] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the economic environment, citing lower unemployment and cash rate reductions stimulating market activity [3][44] - The company expects strong momentum into FY '26, supported by a record pipeline and improving market conditions [16][44] - Management highlighted the importance of brokers in the marketplace, emphasizing their role in providing competition and choice to consumers [46] Other Important Information - The company maintains a strong capital position with $182 million in investments and liquid assets, allowing for reinvestment where returns are compelling [4][40] - Cash conversion for the year was 90%, with a net cash position of $12 million, providing capacity for growth [40] Q&A Session Summary Question: Changes in the industry approach to brokers - Management noted that major lenders remain engaged with brokers despite their focus on proprietary networks, as brokers provide essential customer choice and competition [58][60] Question: Growth potential of the broker industry - Management believes consolidation will occur, but currently, it is a favorable time for brokers, with opportunities for growth and customer retention through additional services [62][63] Question: Revenue uplift from brokers writing multiple products - Management indicated that while achieving 100% of brokers writing multiple products is unlikely, there is potential for growth beyond the current 58% [65][67] Question: Home loan volume and securitization - Management clarified that the decline in home loan volume was due to the cessation of a white label program, with new products expected to drive future growth [74][76] Question: Net interest margin (NIM) benefits from rate cuts - Management discussed the impact of lower cash rates on NIM, indicating a small improvement alongside ongoing competitive pressures [80][82] Question: Outlook on payout ratios - Management acknowledged a natural ceiling on payout ratios, influenced by the mix of broker activity and overall market conditions [96][97] Question: Margin versus volume trade-off - Management confirmed a focus on volume growth while being mindful of return on capital, indicating a balanced approach to managing margins [98][99]

Core Viewpoint - Bank7 Corp. has announced the renewal of its stock repurchase program, allowing for the purchase of up to 750,000 shares over the next two years, reflecting the company's commitment to maximizing shareholder value as it achieves strong earnings and capital levels [1][2]. Group 1: Stock Repurchase Program - The board of directors has authorized a renewal of the stock repurchase program for a term of two years, allowing the purchase of up to 750,000 shares of the company's outstanding common stock [1]. - The shares may be repurchased through open market transactions, privately negotiated transactions, or other means, with the timing and number of shares determined at management's discretion based on various factors [2]. Group 2: Company Overview - Bank7 Corp. is a bank holding company headquartered in Oklahoma City, operating twelve full-service branches in Oklahoma, the Dallas/Fort Worth area, and Kansas, focusing on serving business owners and entrepreneurs [3]. - The company aims to grow organically by selectively opening additional branches and pursuing strategic acquisitions [3].

Financial Data and Key Metrics Changes - The company reported a net income of $142 million in the second quarter, with a diluted earnings per share of $1.02, an increase from $0.98 in the first quarter [12] - Book value per share increased by 12% year over year to $33.18, reflecting strong fundamentals [12] - Return on equity was reported at 12.5%, indicating robust financial performance [12] Business Line Data and Key Metrics Changes - The primary mortgage insurance in force reached an all-time high of $277 billion, contributing significantly to future earnings [7] - Net premiums earned for the quarter were $234 million, consistent with previous quarters [13] - New insurance written increased by 3% year over year to $14.3 billion, with a persistency rate of 84% [13][14] Market Data and Key Metrics Changes - The housing market faces challenges such as supply constraints and elevated home prices, impacting affordability [8] - Despite these challenges, there is stability in the consumer and labor market, with positive employment trends and wage growth [9] - Demand remains strong, particularly among first-time home buyers, as millennials enter their prime home-buying years [9] Company Strategy and Development Direction - The company aims to leverage proprietary data and analytics to inform strategic pricing decisions and adjust market exposure [10] - The recent passage of the One Big Beautiful Bill Act enhances affordability by making mortgage insurance premiums tax-deductible [10] - The company is focused on maintaining a balanced and resilient mortgage insurance business model while maximizing economic value for stakeholders [13] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for the mortgage insurance business, citing strong credit performance and a favorable pricing environment [7][11] - The company remains aligned with policymakers to promote affordable homeownership through various economic cycles [11] - Management emphasized the importance of careful liquidity management and capital allocation strategies moving forward [25][26] Other Important Information - The company reported a provision for losses of $48 million for new defaults, with total defaults decreasing to approximately 22,000 loans [15][17] - Operating expenses for the quarter totaled $89 million, with expectations of $320 million for the full year, a decrease from the previous year [19] - The company repurchased approximately 13.5 million shares, bringing total capital return to stockholders in the first half of the year to over $500 million [20] Q&A Session Summary Question: Liquidity at the holding company and capital return in the second half - Management indicated strong liquidity at the holding company, ending the quarter at $784 million, with opportunistic share repurchases impacting liquidity [24][25] Question: Sustainability of the $795 million dividend to the holding company - Management noted that the dividend from Radian Guaranty is driven by statutory net income, suggesting that future dividends will depend on 2025's net income [29] Question: Marks on loans held for sale affecting earnings - Management clarified that the impact from mark-to-market adjustments was approximately $9 million, primarily due to spread volatility [36][37] Question: Timeline to breakeven for the title business - Management stated that the title business has shown growth, but higher rates have impacted real estate services, with ongoing efforts to find avenues for growth [38][40]

Financial Data and Key Metrics Changes - The company recorded net income of $193 million and an annualized return on equity of 15% for the second quarter [5] - Adjusted net operating income was $0.82 per diluted share compared to $0.77 in the same period last year, while net income per diluted share increased to $0.81 from $0.77 [11] - Book value per share increased to $22.11, reflecting a 13% year-over-year growth [12] Business Line Data and Key Metrics Changes - The company wrote $16 billion of new insurance during the quarter, with insurance in force ending at $297 billion [5] - Annual persistency remained at 85%, with both insurance in force and annual persistency remaining relatively flat over the past two quarters [6] Market Data and Key Metrics Changes - The delinquency rate decreased by nine basis points to 2.21%, consistent with seasonal trends [13] - The company received 12,000 new delinquency notices, which is 5% higher than the second quarter of last year but 7% lower than 2019 [14] Company Strategy and Development Direction - The company focuses on maintaining financial strength and flexibility to navigate various economic scenarios, with a commitment to returning excess capital to shareholders through share repurchases and dividends [7][8] - The company has authorized a 15% increase in its quarterly common stock dividend to $0.15 per share, marking five consecutive years of dividend increases [9] Management Comments on Operating Environment and Future Outlook - The housing market faces challenges from elevated interest rates and affordability issues, but demographic trends and pent-up demand are expected to support long-term growth in mortgage insurance opportunities [9] - The company remains focused on disciplined risk management and strong underwriting standards to maintain a high-quality portfolio [6] Other Important Information - The company paid a quarterly common stock dividend of $0.13 per share, totaling $31 million, and repurchased 7.1 million shares for $181 million during the second quarter [7] - The unrealized loss position on the investment portfolio narrowed by $36 million due to a decrease in interest rates [17] Q&A Session Summary Question: Can you remind us how you are thinking about sizing the level of capital return? - The company has been paying dividends in the range of $300 to $400 million every six months, driven by excellent credit performance and financial results [24] Question: Could there be a case where you could increase the payout further? - The company is constrained by its contingency reserve balance, but as long as capital levels remain above targets, dividends at similar levels to previous years are expected [28][29] Question: Can you talk about your expectation for home prices? - National home prices are forecasted to be flat over the next several years, with different dynamics in various regions [33] Question: Does the OpEx guidance exclude the $4 million charge? - Yes, the $4 million charge is included in the Q2 number and the full-year guidance, with expectations for smaller charges in the future [37]

Financial Data and Key Metrics Changes - The company recorded net income of $193 million and an annualized return on equity of 15% for the second quarter [5] - Adjusted net operating income was $0.82 per diluted share compared to $0.77 in the same period last year, while net income per diluted share increased to $0.81 from $0.77 [12] - Book value per share increased to $22.11, reflecting a 13% year-over-year growth [12] Business Line Data and Key Metrics Changes - The company wrote $16 billion of new insurance during the quarter, with insurance in force ending at $297 billion [5] - Annual persistency remained at 85%, with both insurance in force and annual persistency remaining relatively flat over the past two quarters [6] Market Data and Key Metrics Changes - The housing market continues to face challenges from elevated interest rates and affordability issues, but demographic trends and pent-up demand are expected to support long-term growth in mortgage insurance opportunities [10] - Nationally, home price growth has moderated, with rising inventory in many markets, particularly in the South and West [10] Company Strategy and Development Direction - The company focuses on maintaining financial strength and flexibility to navigate various economic scenarios, with objectives including strong capital maintenance and a low to mid-teens debt to capital ratio [7] - The company is committed to returning excess capital to shareholders through share repurchases and dividends, with a 15% increase in quarterly common stock dividend to $0.15 per share [10] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the strong credit performance of the insurance portfolio, with disciplined risk management and strong underwriting standards being key drivers [6] - The company anticipates that if credit performance remains strong, capital levels will stay above targets, supporting elevated payout ratios [10] Other Important Information - The company has a remaining $734 million on its current share repurchase authorization and has repurchased 7.1 million shares for $181 million during the second quarter [9] - The unrealized loss position on the investment portfolio narrowed by $36 million, primarily due to a decrease in interest rates [19] Q&A Session Summary Question: How is the company sizing the level of capital return and the amount of Holdco liquidity? - Management indicated that dividends have been in the range of $300 to $400 million every six months, driven by excellent credit performance and financial results [26] Question: Could there be a case for increasing the payout further given strong capital generation? - Management noted that while there is enough statutory surplus to continue paying dividends, there is a natural limit to how much can be paid out over time [30] Question: What are the expectations for home prices and potential industry pricing adjustments? - Management expects national home prices to remain flat, with different dynamics in various regions, and emphasized the ability to price risk at a granular level [35][36] Question: Is the operating expense guidance inclusive of the $4 million pension charge? - Management confirmed that the $4 million charge is included in the operating expense guidance and that similar charges are expected in the future [39]