Key Figures

There are certain key figures and measures that tell the most important aspects of Sampo's business from different financial points of view. The most important key figures give answers to the following questions:

The key figures are related to the income statement, balance sheet, Sampo plc shares on the stock market and risk measures or combinations of these. The most important key figures are presented in the picture and explained in detail below.



Sampo Group key figures explained

What is the size and result of the business?

Insurance premiums written

• Insurance premiums written represent the total volume of insurance payments during the accounting period. It serves as an indicator of the scale of the activities.

Net income from investments

• Net investment income shows the result made through investment activities. It mainly consists of interest earned on debt securities, dividends received, rental income and expenses on real estate investment properties and realised gains and losses on investments.

Profit before taxes

• Profit before taxes is the remainder after deducting all operating expenses from income. It gives an idea of how large the expenses are compared to the income and how profitable the business operations are.
• Group profit before taxes is the sum of segment profits after internal transactions have been eliminated.
• Profit before taxes includes bonuses and rebates in life insurance.

Average number of staff

• The average number of staff is calculated as an average of month-end figures and is adjusted for part-time staff (full time equivalent).

How much capital does the business require in relation to the risks taken?

Economic capital

• Economic capital is an internal measure in Sampo which describes the capital required in the Group in order to bear different kinds of risks. Economic capital is defined by risk categories and it is formed mainly from market, credit and insurance risks. Also operational and business risks affect the size of economic capital. Economic capital reflects not only the amount of the different kinds of risks but also their mutual diversification effect (all risks do not occur simultaneously, so the total risk is somewhat less than the sum of the individual risks).

What is the return in relation to invested capital?

Return on equity (RoE)

• Return on equity (RoE) indicates how much return the company is able to generate for the money shareholders have invested in it (simplified general formula: profit after tax / average equity during the year). The more liabilities the company has relative to equity, the more volatile RoE is to variations in profit. The RoE is also useful for comparing the profitability of different firms in the same industry. See calculation formula

Return on assets (RoA)

• Return on assets (RoA) indicates how much return the company generates to assets invested in the company, i.e. both equity and liabilities.
  
• RoA can vary substantially depending on the industry and the amount of assets that it ties up. Therefore RoA comparisons between different industries are not necessarily relevant. See calculation formula

What is the return from the shareholder's point of view?

Earnings per share (EPS)

• The Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock.The EPS is thus a profitability measure. It is especially useful when comparing subsequent years' EPS figures and their development. If the amount of shares changes from year to year (e.g. due to a split) this change has to be taken into account when EPS comparison is made. See calculation formula

EPS including change in the fair value reserve

• This figure shows what EPS would be if market value changes in available-for-sale investment portfolios would be recorded. See calculation formula

Dividend per earnings

• Dividend per earnings shows the amount of dividends distributed in relation to the earnings. This gives a picture of how much of the earnings are used for direct return to shareholders versus investments in future activities and naturally, the profitability of the company. See calculation formula

Price/earnings ratio (P/E)

• A company's P/E shows how high its shares are priced on the markets in relation to its earnings. A high P/E usually indicates that the markets expect that the company's earnings will grow in the future. See calculation formula

Dividend per share

• Dividend per share tells how much the dividends paid out during the financial year were per share. This figure, as the EPS, is especially interesting to follow over several years. See calculation formula

Effective dividend yield

• Effective dividend yield shows how much the dividend was in relation to the value of the share at the end of the year. This figure added to the share value development show the direct monetary return on the share investment in the company. See calculation formula

Equity per share

• Equity per share indicates how much capital there is per share. See calculation formula

Net asset value per share

• The NAV per share figure is similar to the above ‘equity per share' figure, but in NAV per share all investments are valued at market values. NAV per share is interesting to investors who want to know what underpins a company's share price. If a company has a NAV per share larger than its share price it means that the markets think that the company is not able to create value with its assets. If the NAV per share is smaller than the share price, the markets think that the company will create additional value on its assets in the future and this can be seen in the share price. See calculation formula

How much capital is there in relation to the assets?

Equity/assets ratio

• Equity/assets ratio tell us how much the company has equity in relation to its total assets. See calculation formula

How much capital is required by the regulators?

Group solvency ratio

• Group solvency ratio tells us how much the company has eligible own funds in relation to the minimum requirement for the own funds set by the supervising regulators. Supervisors define what items can be included in the eligible own funds. The minimum requirement for the own funds is the supervisor's view on how much capital is needed to cover the risks taken by the business operations of the Group.

What is the market value of Sampo plc?

Market capitalisation

• Market capitalisation is calculated as the number of shares at the end of the accounting period times the closing share price at the same time. Market capitalisation is in other words the value of all of the company's outstanding shares, i.e. the value of the company.

How much capital does the business require in relation to the risks taken?

Economic capital

• Economic capital is an internal measure in Sampo which describes the capital required in the Group in order to bear different kinds of risks. Economic capital is defined by risk categories and it is formed mainly from market, credit and insurance risks. Also operational and business risks affect the size of economic capital. Economic capital reflects not only the amount of the different kinds of risks but also their mutual diversification effect (all risks do not occur simultaneously, so the total risk is somewhat less than the sum of the individual risks).