Future outlook

Estimate of likely future development

Guidance given on 22 August 2017

Guidance for the full year has changed from the full year 2016 report on 28 February 2017 but remained unchanged from profit forecast given on 20 June 2017:

The Group’s largest single risk is the dependence of business profits on changes in the external operating environment and the financial situation in Finland. The company management estimates that the positive development in Finland will continue through the rest of the year, although national and international political risks may reduce outlooks. The Wealth Management segment enjoyed good development in the first half of the year, and the company has succeeded in gathering more capital through various private equity fund projects as well as through the success of mutual funds. The development of the Financing segment has been positive, both in relation to premiums written and claims incurred. The company believes that, through active sales and high-level risk management, significant growth can be achieved also in future. It is expected that the Group’s expansion into the energy sector will significantly increase the assets managed by the company’s private equity funds in the long term.

Financial targets related to growth are growth of more than 15 per cent per annum in assets under management for the Wealth Management segment and growth of more than 15 per cent per annum in gross premiums written for the Financing segment. Taaleri’s operating profit target is at least 20 per cent of income and, thanks to the strong first half of the year, the operating profit of the whole year is estimated to amount to over 25 per cent of income. Taaleri’s target for return on equity in the long term is at least 15 per cent, and the equity ratio target is at least 30 per cent. In addition to these, the company aims to increase the amount of dividend to be distributed, and annually to distribute a competitive dividend, taking into account the company’s financial and financing situation as well as the capital adequacy requirements and future investment plans. The company management estimates that the income and the operating profit will increase from the previous year.

 

Read Taaleri's half year financial report 2017