After the major strategic changes in early 2021, we focused on our core business and advancing our strategy in the third quarter. No significant single events related to the private asset management business took place in the quarter, the effects of which would be reflected in the quarter’s financial indicators.

Continuing earnings for the third quarter grew by 4%. The income from continuing operations was EUR 12.3 million, and operating profit was EUR 4.6 million, representing 37% of income. The amount of assets under management was EUR 2.1 billion.

In the Private Asset Management segment, we prepared and launched new funds and promoted projects for private equity funds in the investment phase. The investment in business growth and development is reflected in the segment’s third quarter results. The ramp-up of the new and developing operations will affect the segment’s result throughout the strategy period due to the nature of private asset management business.

The largest business of Private Asset Management, i.e. renewable energy, focused on projects in the construction phase and project proposals of the Taaleri SolarWind II fund, which held its final closing in June, and on advancing its in-house development projects. The operation and construction projects of the fund proceeded according to plan in the third quarter, and the project pipeline looks promising.

During the early part of the year, the real estate business conducted an extensive international tender for the sale of Taaleri Housing Fund VI, which was completed very successfully in July for the purchase price of approximately EUR 145 million. The fund almost doubled the capital invested by its investors. The performance fee for Taaleri from the fund will be fully recognised after the final purchase price has been confirmed in the last quarter of the year. During the review period, the real estate business also concluded its first international management agreement. In addition, the retail sale of Taaleri Housing Fund VIII started in Aktia at the end of the review period.

The preparation of the first private equity fund for the bioindustry business is progressing as planned. We are a pioneer in private asset management business in investments focused on bioindustry, and we believe that the fund will attract a lot of interest. The biocoal plant to be built in Joensuu is also progressing as expected, and the sale of the co-investment to institutional customers started at the end of the third quarter.

In the third quarter, we continued to launch joint fund products with Aktia, and we will continue to develop active cooperation.

In our Strategic Investments segment, Garantia continued its strong business operations in accordance with its own strategy. Net income from guaranty insurance operations remained at the level of the comparison period. The sale of new residential mortgage guarantees has continued to grow as a result of an expanded distribution channel and a buoyant housing market. The net income from investment operations was EUR 1.8 million, and the combined ratio describing the profit development of insurance operations was 36.8% in the third quarter, as claims incurred remained very low.

The cost reduction effects of financial, personnel and corporate arrangements made earlier in the year began to show as expected in the third quarter. In the Other group, fixed personnel costs fell by over 30% and finance costs by 65%. The divestments of non-strategic investments are proceeding as planned.