Taaleri (0RF6) 2025 Capital Markets Day Transcript

Summary of Taaleri's Capital Markets Day - September 02, 2025 Company Overview - Company Name: Taaleri - Established: February 2007 - Assets Under Management: €2.7 billion - Guarantee Insurance Portfolio: €1.7 billion - Employees: Approximately 130 - Revenue (LTM): €63.1 million - Sustainability Focus: 88% of products have sustainability objectives or promote sustainability characteristics [6][7][10] Strategic Objectives (2026-2028) - Identity: Taaleri positions itself as a front runner in investment and asset management, focusing on transformational opportunities in private capital [5][12] - Purpose: Leverage expertise and capital to power long-term returns for customers [5] - Growth Areas: - Carantea: Targeting over 10% growth in insurance service results, expanding distribution channels, and investigating growth opportunities in neighboring markets [22][24] - Private Asset Management: Plans to grow fund sizes within existing strategies and launch new product groups [26] - Development Capital: Aiming for returns on equity that exceed group-level targets [31] Market Trends - Private Capital Market Growth: Expected to grow at double-digit rates, with real estate growth forecasted to increase from 5% to 9%, infrastructure declining from 16% to 10%, and private equity remaining stable at 12% [18][19] - Finnish Housing Market: The housing market peaked in 2021 with €22.5 billion in new loans, but saw a decline of over 40% in the following year. However, a recovery is noted with a 18% increase in home transactions in the first half of 2025 [46][47] Business Segments - Carantea: Specializes in credit risk insurance, primarily for residential mortgages and corporate loans. The company has underwritten over 100,000 guarantees since 2005 [42][45] - Insurance Revenue: Maintained at €18.7 million despite market downturns, with a combined ratio of 34% indicating stable profitability [54][62] - Investment Portfolio: €158 million, with 75% in fixed income investments, reflecting a conservative risk approach [56] Key Priorities for Garantia 1. Increase Market Share: Focus on residential mortgage guarantees as a primary collateral option in Finland [59] 2. Expand Distribution: Building partnerships with new lenders and exploring opportunities in the Baltic States and Nordics [60] 3. Capital Optimization: Ensure optimal use of capital to maintain solvency and provide stable dividends [60] Financial Performance - Insurance Revenue: €19.5 million for the last twelve months, with operating profit at €18.2 million [62] - Dividend Payments: Taaleri has paid €93 million in dividends to its parent company since acquiring Garantia in 2015 [63] Additional Insights - Regulatory Impact: Changes in financial sector regulations may favor guarantees over physical collateral, providing a potential tailwind for growth [50][52] - Consumer Confidence: Remains below long-term averages, affecting housing market recovery and demand for guarantees [48] Conclusion Taaleri is strategically positioned to capitalize on growth opportunities in the private capital market and the housing sector, with a strong focus on sustainability and expertise in investment management. The company aims to enhance its market presence through strategic growth initiatives and partnerships while maintaining a conservative risk profile in its operations.