AUGUST 11, 2010, 3:01 A.M. ET.

Sampo 2Q Net Profit Up 26%, Beating Estimates

By Erik Durhan Of DOW JONES NEWSWIRES

STOCKHOLM (Dow Jones)--Finnish insurer Sampo Oyj (SAMAS.HE) said Wednesday that second-quarter net profit climbed 26% from a year earlier and said performance was good on all fronts.

"Sampo Group is expected to report good result for 2010 with a continuing good profitability of its insurance operations supported by the share of Nordea's profits," the company said.

The Nordic region's largest property-and-casualty insurer said net profit rose to EUR273 million from EUR217 million in the second quarter of 2009, exceeding analyst estimates of a EUR246 million profit.

The company's net asset value per share rose to EUR14.50 from EUR10.87 a year earlier, missing expectations of EUR14.93

The combined ratio was 89.9%, from 90.7 a year ago, compared with estimates of 91.1%.

Sampo holds a 20.6% stake in Nordea, the Nordic regions biggest bank, and has started as of this year to consolidate Nordea's earnings into Sampo accounts. The Nordea holdings contributed EUR106 million to reported profit before taxes.

Nordea is expected to contribute significantly to Sampo's profit for the full year 2010, the company said.

Sampo shares have risen 22% in value in the last 12 months, underperforming a 30% increase in the broader Finnish market. Tuesday, they closed at EUR19.35.

Company website: http://www.sampo.com

-By Erik Durhan, Dow Jones Newswires; +46-8-5451-3091; erik.durhan@dowjones.com

http://online.wsj.com/article/BT-CO-201 ... 02466.html