Stable quarter with underlying earnings up 2% - Q3 initial

Broadly in-line report, with sales of EUR17.2m, down 27% Y/Y, and EBIT of EUR9.4m, 8% above our forecast of EUR8.7m. Continuing earnings reached EUR12.0m, 16% above our estimate and up 18% Y/Y. Asset Management continuing earnings grew 5% Y/Y, while Garantia remained stable. The positive deviation was primarily driven by a success fee recognised in Taaleri Kapitaali, reported under Other. Adjusting for this, continuing earnings grew 2% Y/Y.

Stable insurance operations, weaker investment income. Garantia’s insurance revenue was flat Y/Y at EUR4.8m, while the combined ratio improved from 27.6% in 2025 to 25.7%. However, operating profit declined from EUR6.5m in Q3 2025 to EUR4.6m, reflecting lower investment income. Mortgage guarantee utilisation increased by more than 18% Y/Y despite the subdued housing market.

Performance fee outlook slightly weaker. Performance fees totalled EUR0.6m, comprising EUR1.2m in realised fees from Taaleri Biorefinery, offset by a EUR0.6m reversal of previously recognised fees related to Wind II and Wind III. Estimated combined performance fees from the older wind funds were revised down from EUR14.2m to EUR13.6m, with Taaleri highlighting increased risk of not realising the full amount due to delayed exits.

Selective fundraising environment. Taaleri noted that investors remained selective in private asset fundraising. Preparations for SolarWind IV are ongoing, with no specific timeline provided, although we expect fundraising to commence in early 2027.

Investment portfolio expands following Fintoil investment. The investment portfolio increased to EUR95.2m (fair value) following a EUR25m follow-on investment in Fintoil, partly financed through an EUR18m bank loan.