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Sampo Group´s results for January - March 2010

Strong earnings growth 

Sampo Group's profit before taxes for the first three months of 2010 rose to EUR 287 million (169). The total comprehensive income for the period, taking changes in the market value of assets into account, amounted to EUR 596 million (-59).

  • Earnings per share amounted to EUR 0.44 (0.23) and marked-to-market EPS was EUR 1.06 per share (-0.10). The return on equity for the Group rose to 30.1 per cent for the period (-5.1).  

  • Net asset value per share amounted to EUR 16.12 (14.63). The fair value reserve after tax on the Group level increased to EUR 536 million (296).  

  • The difficult winter conditions in the Nordic countries were reflected in the insurance technical performance of the P&C insurance operation and the combined ratio for the first quarter of 2010 rose to 98.2 per cent (94.2). The profit before taxes was EUR 125 million (144) and marked-to-market result EUR 308 million (69). Return on equity rose to 52.7 per cent (14.4). 

  • In the life insurance operations the profit before taxes increased to EUR 36 million (27) and the marked-to-market result amounted to EUR 133 million (-32). The return on equity at market value improved significantly to 65.4 per cent (-52.0). 

  • Nordea is accounted for as an associated company. In the segment reporting share of Nordea's net profit is included in the holding segment. The profit before taxes for the segment amounted to EUR 126 million (-21), of which Nordea's share was EUR 124 million. 

 

KEY FIGURES 1-3 1-3 Change
EURm 2010 2009 %
Profit before taxes 287 169 69
  P&C insurance 125 144 -13
  Life insurance 36 27 33
  Associates (Nordea) 124 - -
  Holding excl. associates 2 -21 -
Profit for the period 245 127 93
       
      Change
Earnings per share, EUR 0.44 0.23 0.21
EPS, marked-to-market, EUR 1.06 -0.10 1.16
NAV per share, EUR *) 16.12 14.63 1.49
Average number of staff (FTE) 6,982 7,454 -472
Group solvency ratio, % *) 167.6 158.3 9.3
RoE, % 30.1 -5.1 35.2

 

*) comparison figure from 31.12.2009

The figures in this report are not audited. Income statement items are compared on a year-on-year basis whereas comparison figures for balance sheet items are from 31 December 2009 unless otherwise stated.

BUSINESS AREAS

P&C insurance

If P&C is the leading property and casualty insurance company in the Nordic region, with insurance operations that also encompass the Baltic countries and Russia. The P&C insurance group's parent company, If P&C Insurance Holding Ltd, is located in Sweden, and the If subsidiaries provide insurance solutions and services in Finland, Sweden, Norway, Denmark, the Baltic countries and Russia. If's operations are divided into four business areas: Private, Commercial, Industrial and Baltic&Russia.

Results 1-3 1-3 Change
EURm 2010 2009 %
       
Premiums 1,416 1,327 7
Net income from investments 117 102 15
Other operating income 5 5 -6
Claims incurred -710 -630 13
Change in insurance liabilities -467 -435 7
Staff costs -122 -106 15
Other expenses -108 -110 -2
Finance costs -7 -8 -8
Profit before taxes 125 144 -13
       
Key figures      
      Change
Combined ratio, % 98.2 94.2 4.0
Risk ratio, % 74.8 70.7 4.1
Cost ratio, % 23.5 23.5 0.0
Expense ratio, % 16.9 17.2 -0.3
Return on equity, % 52.7 14.4 38.3
Average number of staff (FTE) 6,468 6,928 -460

 

In the first quarter of 2010 If P&C's technical result suffered from the extreme winter conditions in the Nordic countries. Extraordinary winter related claims amounted to roughly EUR 70 million. Despite adverse claims development marked-to-market result grew to EUR 308 million (69), because of favorable investment environment.

Profit before taxes for P&C insurance for the first three months of 2010 decreased to EUR 125 million (144). The technical result was EUR 68 million (105). The technical result for Private business area amounted to EUR 27 million (50), Commercial EUR 24 million (30), Industrial EUR 15 million (17) and Baltic and Russia EUR 1 million (6). The decrease in the technical result, particularly in Business areas Private, Commercial and Baltics&Russia, was due to increased claims frequency in motor and property insurance caused by severe winter conditions increasing water, fire and motor claims. An exceptionally high number of winter related claims was reported to If P&C in the first quarter of 2010. The evaluation of their impact on If's reinsurance programs is underway. The completion of the review is expected to have a minor positive impact on If's technical result.

 Insurance margin (technical result in relation to net premiums earned) decreased from the previous year to 7.2 (11.8). Return on equity (RoE) was high at 52.7 per cent (14.4) and the fair value reserve increased to EUR 238 million (105).

The combined ratio for January - March 2010 was burdened by the extraordinary winter claims and deteriorated to 98.2 per cent (94.2). EUR 40 million (20) was released from the technical reserves related to prior year claims. Business area Industrial accounted for EUR 13 million of the increase from last year.

In the Private business area the combined ratio increased to 99.6 (94.8). Higher claims frequency due to the severe winter conditions deteriorated the risk ratio to 75.9 per cent (71.0). In the Commercial business area risk ratio rose 2 percentage points to 73.6 per cent (71.6) and as the cost ratio remained stable the combined ratio weakened to 97.6 per cent (95.6).

Large claims development in the Industrial business area was unfavorable, and despite the improvement in the cost ratio, the combined ratio rose to 94.0 per cent (92.8). In the Baltic&Russia business area the combined ratio deteriorated to 99.7 per cent (89.1) due to increased claims cost related to extraordinary winter.

Norwegian and Danish operations were equally negatively hit by the severe winter and increased large claims costs. The combined ratios increased to 107.5 per cent (99.6) and to 110.2 per cent (85.6), respectively. Combined ratios for the Finnish and Swedish operations, however, improved, to 82.7 per cent (90.0) and to 94.6 per cent (95.3), respectively.  

Gross written premiums grew 6 per cent to EUR 1,507 million (1,422). However, adjusted for currency the premiums decreased 1.1 per cent. In the business area Private the premiums grew 3.2 per cent. In the Industrial business area the premiums were significantly affected by recessionary effects. The sharpest decrease was again felt in the business area Baltic&Russia, where the premiums dropped 21 per cent.

The cost ratio was unchanged at 23.5 per cent despite the pressure on premium volume development. Adjusted for currency the costs decreased 1.1 per cent. In business areas Private and Industrial the cost ratio improved whereas in the business area Baltic&Russia it weakened.

As at 31 March 2010, total investment assets amounted to EUR 11.3 billion (10.7) of which 87 per cent (89) was invested in fixed income instruments and 12 per cent (11) in equities. Net income from investments rose to EUR 117 million (102). Investment return for the first three months of 2010 was 2.8 per cent (0.5). Duration for interest bearing assets was 2.2 years (2.5).

As at 31 March 2010 If P&C's solvency ratio (solvency capital in relation to net premiums written) amounted to 83 per cent (77). The solvency capital was EUR 3,305 million (2,943) in comparison to the regulatory minimum capital requirement of EUR 668 million. Reserving position continues to be strong with reserve ratio of 173 per cent (171) of net premiums written and 239 per cent (240) of claims paid.

Life insurance

Mandatum Life Group consists of Mandatum Life, a wholly-owned subsidiary of Sampo plc, operating in Finland, and its subsidiary Sampo Life Insurance Baltic SE, which has the form of a European company and is headquartered in Estonia. It operates in the other Baltic countries through branches.

Results 1-3 1-3 Change
EURm 2010 2009 %
       
Premiums written 348 144 142
Net income from investments 214 50 328
Other operating income 0 0 -55
Claims incurred -208 -187 11
Change in liabilities for

inv. and ins. contracts
-292 45 -
Staff costs -9 -7 39
Other operating expenses -14 -15 -9
Finance costs -2 -3 -6
Profit before taxes 36 27 33
       
Key figures      
      Change
Expense ratio, % 127.8 131.2 -3.4
Return on equity, % 65.4 -52.0 117.4
Average number of staff (FTE) 461 471 -10

 

Mandatum Life's first quarter of 2010 was successful both in terms of profitability and sales. Marked-to-market result amounted to EUR 133 million (-32) and premium income rose 142 per cent to EUR 348 million.

Profit before taxes in life insurance for January-March 2010 was EUR 36 million (27). Net investment income, excluding income on unit-linked contracts, amounted to EUR 74 million (67). Meanwhile, net income from unit-linked investments was EUR 140 million (-17). The fair value reserve increased to EUR 316 million from EUR 210 million at the end of 2009. Return on equity (RoE) in life insurance surged to 65.4 per cent (-52.0).

Excluding the assets of EUR 2.7 billion (2.4) covering unit-linked liabilities, Mandatum Life Group's investment assets amounted to EUR 5.7 billion (5.4) at market values as at 31 March 2010. Fixed income represented 67 per cent (68), equity 25 per cent (23), private equity 4 per cent (4), real estate 3 per cent (3) and other assets 2 per cent (2) of the total assets.

Return on investments during January - March 2010 was 3.9 per cent (-0.2). At the end of March 2010 the duration of fixed income assets was 2.6 years (2.6).

Mandatum Life's solvency position improved further during the first quarter of 2010. Solvency margin was 4.8 times regulatory minimum and the company also exceeds clearly internal Economic Capital requirements. The solvency ratio was 21.4 (18.5). Mandatum Life Group's total technical reserves were EUR 7.1 billion (6.8), of which unit-linked reserves accounted for 2.6 billion (2.4). The share of unit-linked reserves of total technical reserves increased to 37 per cent (35).

Expense ratio in Sampo Group's life operations improved to 127.8 per cent (131.2). This ratio does not take into account all fees intended to cover the operating expenses. Mandatum Life does not defer acquisition costs, which burdens the first year's result.

Mandatum Life Group's premium income on own account grew significantly and amounted to EUR 348 million (144). The growth was strongest in unit-linked premiums and their share of total premiums increased to 69 per cent (64). All sales channels improved their performance compared to 2009 with the Wealth management and investment solutions unit posting strongest results. Premium income from the Baltic countries grew 108 per cent and was EUR 12.7 million (6.1).

Mandatum Life's overall market share in Finland measured by premium income rose to 25.3 per cent (21.2) and market share in unit-linked business was 32.8 per cent (27.3). Unit-linked market share in the Baltic countries amounted to 32 per cent (17).

The embedded value of Sampo Group's life business (excl. Baltics) grew to EUR 1,147 million (620) as at 31 December 2009. The value-in-force decreased to EUR 391 million (415) largely due to change in the tax receivables and a decrease in the investment margin assumptions. A detailed breakdown of VIF is presented in the Supplementary Financial Information published in connection to this report at www.sampo.com/result.

Holding

Sampo plc controls its subsidiaries engaged in P&C and life insurance. In addition Sampo plc held on 31 March 2010 approximately 20 per cent of the share capital of Nordea, the largest bank in the Nordic countries. Nordea is an associated company to Sampo plc.

Results 1-3 1-3 Change
EURm 2010 2009 %
       
Net investment income 25 -6 -
Other operating income 4 2 83
Staff costs -4 -2 78
Other operating expenses -3 -6 -55
Finance costs -20 -9 123
Share of associates' profit 124 - -
Profit before taxes 126 -21 -
   

 
  Change
Average number of staff (FTE) 53 55 -2

 

The segment's profit before taxes amounted to EUR 126 million (-21), of which EUR 124 million relates to Sampo's share of Nordea's first quarter 2010 profit. The segment, excluding share of Nordea's profit, reported a profit, which was based on the positive marked-to-market effect from interest rate and cross currency swaps used in managing the risk profile of the debt portfolio. The strengthening of the Swedish krona was also beneficial as Sampo had part of its liquidity in Swedish krona.

Sampo plc's holding in Nordea Bank was booked in the consolidated balance sheet at EUR 5.2 billion. The market value of the holding was EUR 6.0 billion at 31 March 2010. In addition the assets on Sampo plc's balance sheet as at 31 March 2010 included holdings in subsidiaries for EUR 2.4 billion (2.4).

As at 31 March 2010 Sampo plc´s debt financing amounted to EUR 1,660 million, of which senior bonds and notes accounted for EUR 991 million and commercial papers EUR 525 million. Gross debt to Sampo plc's equity was 24 per cent (24).

Associated company Nordea Bank

On March 2010 Sampo plc held 817,968,606 Nordea shares corresponding to a holding of 20.3 per cent. The average price paid per share amounted to EUR 6.39. The closing price as at 31 March 2010 was EUR 7.29.

As Sampo's holding exceeds 20 per cent Nordea is accounted as an associated company in Sampo Group's accounts since 31 December 2009. Sampo's share of Nordea's net profit is shown on the face of Sampo Group's profit and loss account on the line Share of associate´s profit/loss.

The following text is based on Nordea's January - March 2010 interim report published on 28 April 2010.

Nordea's first quarter 2010 result was significantly better than the previous quarter and also better than the strong first quarter of last year. Total income increased 7 per cent and expenses decreased 5 per cent from the previous quarter. Operating profit was up 48 per cent from the previous quarter, mainly due to higher net result from items at fair value, the restructuring costs in the fourth quarter and lower net loan losses. Risk-adjusted profit increased 27 per cent compared to the previous quarter and decreased 9 per cent compared to the first quarter last year.

Net interest income decreased 5 per cent from the previous quarter. Total lending increased 4 per cent in the first quarter. Household lending volumes continued to increase with increasing market shares. Also corporate lending volumes increased in the quarter.

The improved business environment has contributed to a decrease of loan losses and a stabilization of the growth of impaired loans. Net loan losses in 2010 are likely to be lower than in 2009. The loan loss ratio was 37 basis points, compared to 52 basis points in the fourth quarter. Credit quality continued to stabilize and impaired loans increased at a lower rate, 5 per cent from the fourth quarter.

Net interest income held up well, due to strong customer-related performance, but is still subdued by the exceptionally low interest rates. To reach the ambitious targets for 2013, Nordea's focus is now on the prudent growth strategy and implementing the Group initiatives for growth, efficiency and a strong foundation.

In its outlook for 2010, Nordea expects risk-adjusted profit to be lower in 2010 than in 2009, because of lower income in Treasury and Markets. However, net loan losses in 2010 are likely to be lower than in 2009. Credit quality continues to stabilize, in line with the macroeconomic recovery.

The core tier 1 capital ratio, i.e. excluding hybrid loans, was 10.1 per cent excluding transition rules according to Basel II, the tier 1 capital ratio was 11.2 per cent and the total capital ratio was 13.6 per cent. Including transition rules, the core tier 1 capital ratio was 9.2 per cent, the tier 1 capital ratio was 10.1.per cent and the total capital ratio was 12.3 per cent.

DEVELOPMENTS IN THE FIRST QUARTER OF 2010

Annual General Meeting

The Annual General Meeting held on 13 April 2010 decided to distribute a dividend of EUR 1.00 per share for 2009. The record date for dividend payment was 16 April 2010 and the dividend was paid on 23 April 2010. The Annual General Meeting adopted the financial accounts for 2009 and discharged the Board of Directors and the Group CEO and President from liability for the financial year.

The following members were re-elected to the Board of Directors: Tom Berglund, Anne Brunila, Veli-Matti Mattila, Eira Palin-Lehtinen, Jukka Pekkarinen, Christoffer Taxell, Matti Vuoria and Björn Wahlroos. At its organisational meeting, the Board elected Björn Wahlroos as Chairman and Matti Vuoria as Vice Chairman. The following members were elected to the Nomination and Compensation Committee: Veli-Matti Mattila, Eira Palin-Lehtinen, Christoffer Taxell, Matti Vuoria, and Björn Wahlroos. Tom Berglund, Jukka Pekkarinen and Christoffer Taxell were elected to the Audit Committee.

The Annual General Meeting decided to pay the following fees to the members of the Board of Directors until the close of the 2011 Annual General Meeting: the Chairman of the Board will be paid EUR 160,000 per year, the Vice Chairman EUR 100,000 per year and the other members EUR 80,000 per year. After deduction of taxes and similar payments, approximately 50 per cent of the Board members' annual compensation will be paid in Sampo A shares and the rest in cash.

The Annual General Meeting resolved to amend section 12 of the Articles of Association as a result of the amendments to Chapter 5, section 19 of the Finnish Limited Liability Companies Act that entered into force on 3 August 2009 and 31 December 2009.

Personnel

The number of full-time equivalent personnel in Sampo Group remained fairly stable during the first quarter of 2010. On 31 March 2010 the number of staff was 6,975 compared to 7,087 on 31 December 2009. The average number of employees in January - March amounted to 6,982 (7,454).

Approximately 93 per cent of the Sampo Group staff - 6,454 employees - worked in P&C insurance on 31 March 2010. 1,747 employees worked in Finland; 1,845 in Sweden; 1,546 in Norway and 1,316 in Baltics and other countries. The number of personnel decreased slightly in each country due to reorganization of activities.

Nearly 7 per cent of the Sampo Group staff - 469 employees - worked in life insurance. Life insurance operations had 363 employees in Finland and 106 employees in Baltics. Recruiting of new staff into the Wealth Management and Investment Solutions, Corporate Sales and IT units increased the number of staff by nearly four per cent.

Approximately 1 per cent the Sampo Group staff - 52 employees - worked in the holding company Sampo plc. There were no changes in the number of staff.

Management incentive schemes

The management incentive schemes of Sampo Group are of two types; long-term management incentive schemes based on share appreciation rights and one share-based incentive scheme.

The outcome of the long-term management incentive schemes is determined by Sampo's share-price development over a period of approximately three years starting from the issue of the respective program. The programs are subject to thresholds on share price development and company profitability, as well as ceilings for maximum bonuses. Furthermore, the programs are subject to rules requiring part of the paid bonus to be used to acquire Sampo shares, which must in turn be held for a specified period of time.

In 2006, Sampo's Annual General Meeting decided on a share-based incentive scheme for the Executive Management belonging to the Group Executive Committee. Under the program, the participants are granted the right to receive up to a pre-determined number of Sampo shares, if Sampo's share price has outperformed a predefined threshold value and insurance margin targets have been exceeded. The bonus will be paid in Sampo shares, in cash or a combination thereof. Furthermore, the programs are subject to lock-up on Sampo shares received.

Payments based on the long-term management incentive schemes in the first quarter of 2010 amounted to EUR 2 million (0). No payments were made on the basis of the share-based incentive scheme 2006 (0).

The terms of all incentive schemes are available on Sampo's web pages at www.sampo.com/compensation.

Shares and share capital

As at 31 March 2010, Sampo plc had 561,372,390 shares, which were divided into 560,172,390 A shares and 1,200,000 B shares.

Sampo plc held 90,000 of its own A shares corresponding to 0.02 per cent of the total number of shares and voting rights. The shares were purchased at an average price of EUR 16.53 per share and the total amount paid for the shares was EUR 1.5 million. The shares were purchased in late 2009 under the authorization received in the AGM of 2009. The other Group companies held no shares in the parent company.

The Annual General Meeting of 2010 authorised the Board to acquire in one or several lots a maximum of 50,000,000 Sampo A shares. Shares can be repurchased in other proportion than the shareholders' proportional shareholdings (private repurchase). The share price will be no higher than the highest price paid for Sampo shares in public trading at the time of purchase. The authorisation will be valid until the close of the next Annual General Meeting, nevertheless not more than 18 months after AGM's decision.

Internal dividends

In the first quarter of 2010 no dividends were paid to Sampo plc by its insurance subsidiaries.

After the end of the reporting period, Sampo plc received on 13 April 2010 a dividend of EUR 103 million (SEK 1,000 million) from If P&C Insurance Holding. In addition the associated company Nordea Bank AB paid on 8 April 2010 Sampo plc a dividend amounting to EUR 204 million.

Ratings

All the main ratings for Sampo Group companies remained unchanged in the first quarter of 2010.

Rated company Moody's Standard and Poor's
  Rating Outlook  Rating Outlook
Sampo plc Baa2 Stable Not rated -
If P&C Insurance Ltd

(Sweden)
A2 Stable A Stable
If P&C Insurance Company Ltd

(Finland)
A2 Stable A Stable

 

Group solvency

Sampo Group, with Nordea Bank AB (publ) as its associated company, is regarded as a financial and insurance conglomerate according to the Act on the Supervision of Financial and Insurance Conglomerates (2004/699).

Group solvency has been calculated according to Chapter 3 of the Act on the Supervision of Financial and Insurance Conglomerates (2004/699). The Act is based on Directive 2002/87/EC of the European Parliament and of the Council on the supplementary supervision of credit institutions, insurance undertakings and investment.

SAMPO GROUP SOLVENCY  

31 March 2010
31 December 2009
EURm    
Group capital 8,219 7,613
Sectoral items 1,832 1,545
Intangibles and other deductibles -2,373 -2,314
Dividends -702 -561
Group's own funds, total 6,977 6,283
     
Minimum requirements for own funds, total 4,162 3,968
     
Group solvency 2,815 2,315
     
Group solvency ratio    
(Own funds % of minimum requirements) 167.6 158.3

 

The Group's solvency ratio (own funds in relation to minimum requirements for own funds) was 167.6 per cent (158.3) as at 31 March 2010. Nordea is treated as an associated company in the solvency calculation and the part of Nordea's capital requirement corresponding to Sampo's holding in Nordea is taken into account in the Group's capital requirement.

In Sampo Group solvency is assessed internally by comparing the capital required to the capital available. Capital requirement assessment is based on an economic capital framework, in which Group companies quantify the amount of capital required for measurable risks over a one year time horizon at 99.5 per cent´s confidence level. In addition to economic capital companies are assessing their capital need related to non-measurable risks like risks in business environment.

Capital available or Adjusted Solvency Capital include regulatory capital and in addition other loss absorbing items like the effect of discounting technical reserves and other reserves excluded from regulatory capital.    

The economic capital tied up in Group's operations on 31 March 2010 was EUR 4,024 million (3,783) and adjusted solvency capital was EUR 7,608 million (7,077).

OUTLOOK FOR THE REST OF 2010

The recovery of the global economy continued to gather pace in the first quarter of 2010. Expectations of improving corporate earnings bolstered investor confidence resulting in fairly benign capital market conditions.

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

If P&C is expected to reach its long-term combined ratio target of below 95 per cent in 2010 despite the difficult winter conditions in the first quarter of 2010. Profit is expected to remain on a very good level. The macro economic situation will continue to dampen the premium growth but has a limited impact on profitability.

Mandatum Life's marked-to-market profit is highly dependent on capital markets and is expected to remain good. Reported profit is foreseen to reach year 2009 level. The company seeks further growth in the unit-linked volumes.

The associated company, Nordea Bank AB, is expected to contribute significantly to the Group profit in 2010.


SAMPO PLC
Board of Directors

 

For more information, please contact:

Peter Johansson, Group CFO, tel. +358 10 516 0010
Jarmo Salonen, Head of Investor Relations and Group Communications, tel. +358 10 516 0030
Maria Silander, Press Officer, tel. +358 10 516 0031

Sampo will arrange a telephone conference for investors and analysts at 4 pm Finnish time (2 pm UK time). The call is held in English. Please call +44 207 162 0025 (Europe) or +1 334 323 6201 (North America). Please be ready to state the conference ID '862905', the conference title 'Sampo plc 2010/Q1 release' and the password 'SAMPO'.

The telephone conference can also be followed from a direct transmission on the Internet at www.sampo.com/result. A recorded version will later be available at the same address.

In addition, Group CEO and President Kari Stadigh's video interview and Supplementary Financial Information are available at www.sampo.com/result.

Sampo will publish the second quarter 2010 interim report on 11 August 2010.

 

 

DISTRIBUTION:
NASDAQ OMX Helsinki
The principal media
Financial Supervisory Authority
www.sampo.com

 

GROUP FINANCIAL REVIEW      
       
FINANCIAL HIGHLIGHTS   1-3/2010 1-3/2009
       
GROUP      
Profit before taxes EURm 287 169
Return on equity (at fair value) % 30.1 -5.1
Return on assets (at fair value) % 12.6 0.0
Equity/assets ratio % 28.7 21.0
Group solvency ¹) EURm 2,815 2,598
Group solvency ratio % 167.6 424.0
Average number of staff   6,982 7,454
       
       
PROPERTY & CASUALTY INSURANCE      
Premiums written before reinsurers' share EURm 1,507 1,422
Premiums earned EURm 949 892
Profit before taxes EURm 125 144
Return on equity (at current value) % 52.7 14.4
Risk ratio ²) % 74.8 70.7
Cost ratio ²) % 23.5 23.5
Loss ratio ²) % 82.9 78.7
Loss ratio excl. unwinding of discount ²) % 81.3 77.0
Expense ratio ²) % 16.9 17.2
Combined ratio % 99.8 95.9
Combined ratio excl. unwinding of discount % 98.2 94.2
Average number of staff   6,468 6,928
       
       
LIFE INSURANCE      
Premiums written before reinsurers' share EURm 351 147
Profit before taxes EURm 36 27
Return on equity (at current value) % 65.4 -52.0
Expense ratio % 127.8 131.2
Average number of staff   461 471
       
HOLDING      
Profit before taxes EURm 126 -21
Average number of staff   53 55
       
PER SHARE KEY FIGURES      
Earnings per share EUR 0.44 0.23
Earnings per share, incl. other      
comprehensive income EUR 1.06 -0.10
Capital and reserves per share EUR 14.64 8.15
Net asset value per share EUR 16.12 8.17
Adjusted share price, high EUR 19.85 14.75
Adjusted share price, low EUR 16.90 8.63
Market capitalisation EURm 11,024 6,242

 

¹)  The Group solvency is calculated according to the consolidation method defined inChapter 3 of the Act on the Supervision of Financial and Insurance Conglomerates (2004/699). In the comparison year the solvency was calculated based on adjusted solvency calculations for insurance groups according to the Decree of the Ministry of Social Affairs and Health (1106/2000), determined on the basis of the Group financial statements.

²) The key figures for P&C Insurance are based on activity based costs and cannot, therefore, be calculated directly from the consolidated income statement. The result analysis of P&C insurance is presented in note 13.

In calculating the per share key figures, the number of shares used at the balance sheet date and as the average number of shares was 561,282,390. The 90,000 treasury shares held by Sampo plc at the balance sheet date have been deducted from both numbers of shares.

The valuation differences on investment property have been taken into account in calculating the return on assets, return on equity, equity/assets ratio and net asset value per share. The tax component includes the tax corresponding to the result for the period, and the deferred tax liability related to valuation differences on investment property.

The total comprehensive income has been used in the calculation of the return on assets and return on equity.

The key figures for the insurance business have been calculated in accordance with the decree issued by the Ministry of Finance and the specifying regulations and instructions of the Finance Supervisory Authority (former Insurance Supervisory Authority).

CALCULATION OF KEY FIGURES  
   
Return on equity (fair values), %  
+ total comprehensive income  
+ change in valuation differences on investments  
- tax (incl. change in deferred tax relating to valuation differences on investments)   x 100 %
+ total equity  
+ valuation differences on investments after deduction of deferred tax  
(average of values 1 Jan. and the end of reporting period)  
   
Return on assets (at fair values), %  
+ operating profit  
+ other comprehensive income before taxes  
+ interest and other financial charges  
+ calculated interest on technical provisions  
+ change in valuation differences on investments x 100 %
+ balance sheet total  
-  technical provisions relating to unit-linked insurance  
+ valuation differences on investments  
(average of values on 1 Jan. and the end of the reporting period)  
   
Equity/assets ratio (at fair values), %  
+ total equity  
+ valuation differences on investments after deduction of deferred tax x 100 %
+ balance sheet total  
+ valuation differences on investments  
   
Risk ratio for P&C Insurance, %  
+ claims incurred  
- claims settlement expenses x 100 %
insurance premiums earned  
       
Cost ratio for P&C Insurance, %  
+ operating expenses  
+ claims settlement expenses x 100 %
insurance premiums earned  
   
Loss ratio for P&C Insurance, %  
claims incurred x 100 %
insurance premiums earned  
   
Expense ratio for P&C Insurance, %  
operating expenses x 100 %
insurance premiums earned  
   
Combined ratio for P&C Insurance, %  
Loss ratio + expense ratio  
   
Expense ratio for life insurance, %  
+ operating expenses before change in deferred acquisition costs  
+ claims settlement expenses x 100 %
expense charges  
   
Per share key figures  
   
Earnings per share  
profit for the financial period attributable to the parent  
company's equity holders  
adjusted average number of shares  
   
Equity per share  
equity attributable to the parent company's equity holders  
adjusted number of shares at the balance sheet date  
   
Net asset value per share  
+ equity attributable to the parent company's equity holders  
+ valuation differences on listed associates in the Group  
+ valuation differences after the deduction of deferred taxes  
adjusted number of shares at balance sheet date  
   
Market capitalisation  
  number of shares at the balance sheet date  
x closing share price at the balance sheet date  

 

 

GROUP QUARTERLY INCOME STATEMENT      
           
EURm 1-3/

2010
10-12/

2009
7-9/

2009
4-6/

2009
1-3/

2009
           
Insurance premiums written 1,764 1,077 896 1,036 1,470
Net income from investments 354 259 348 384 165
Other operating income 3 6 6 5 3
           
Claims incurred -918 -792 -767 -729 -818
Change in liabilities for insurance and investment contracts -759 -61 -17 -165 -390
Staff costs -135 -134 -136 -125 -115
Other operating expenses -121 -130 -115 -122 -129
           
Finance costs -25 -25 -23 -21 -17
Share of associates' profit/loss 124 0 0 0 0
           
Profit for the period before taxes 287 199 192 264 169
           
Taxes -41 -51 -44 -46 -42
           
Profit for the period 245 148 148 217 127
           
Other comprehensive income for the period          
Exchange differences on translating foreign operations 83 -8 102 17 10
Available-for-sale financial assets 328 -189 1,549 1,875 -247
Cash flow hedges -2 -3 1 -8 8
Share of other comprehensive income of associates 27 - - - -
Income tax relating to components of other comprehensive income -85 -50 -175 -143 42
Other comprehensive income for the period, net of tax 351 -250 1,477 1,741 -186
           
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX 596 -102 1,624 1,959 -59
           
Profit attributable to          
  Owners of the parent 245 148 148 217 127
  Non-controlling interests 0 0 0 0 0
           
Total comprehensive income attributable to          
  Owners of the parent 596 -101 1,625 1,958 -59
  Non-controlling interests 0 0 0 0 0

 

 

CONSOLIDATED COMPREHENSIVE INCOME STATEMENT  
       
EURm Note 1-3/2010 1-3/2009
       
Insurance premiums written 1 1,764 1,470
Net income from investments 2 354 165
Other operating income   3 3
       
Claims incurred 3 -918 -818
Change in liabilities for insurance and investment contracts   -759 -390
Staff costs 4 -135 -115
Other operating expenses   -121 -129
       
Finance costs   -25 -17
Share of associates' profit/loss   124 0
       
Profit before taxes   287 169
       
Taxes   -41 -42
       
Profit for the period   245 127
       
Other comprehensive income for the period      
Exchange differences   83 10
Available-for-sale financial assets   328 -247
Cash flow hedges   -2 8
Share of other comprehensive income of associates   27 -
Income tax relating to components of other comprehensive income   -85 42
Other comprehensive income for the period, net of tax   351 -186
       
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD   596 -59
       
Profit attributable to      
  Owners of the parent   245 127
  Non-controlling interests   0 0
       
Total comprehensive income attributable to      
  Owners of the parent   596 -59
  Non-controlling interests   0 0
       
Basic earnings per share (eur)   0.44 0.23
       
       
CONSOLIDATED BALANCE SHEET      
       
EURm Note 03/2010 12/2009
       
Assets      
Property, plant and equipment   33 34
Investment property   123 124
Intangible assets 5 717 688
Investments in associates   5,193 5,172
Financial assets 6, 7 16,397 15,479
Investments related to unit-linked insurance contracts 8 2,656 2,366
Tax assets   60 81
Reinsurers' share of insurance liabilities   479 481
Other assets   2,193 1,439
Cash and cash equivalents   832 771
Total assets   28,683 26,635
       
       
Liabilities      
Liabilities for insurance and investment contracts 9 13,803 13,014
Liabilities for unit-linked insurance and investment contracts 10 2,645 2,359
Financial liabilities 11 2,185 2,098
Tax liabilities   592 500
Provisions   33 35
Employee benefits   101 104
Other liabilities   1,104 912
Total liabilities   20,463 19,022
       
Equity      
Share capital   98 98
Reserves   1,530 1,530
Retained earnings   6,144 5,889
Other components of equity   446 96
Equity attributable to owners of the parent   8,219 7,613
Non-controlling interests   0 0
Total equity   8,219 7,613
       
Total equity and liabilities   28,683 26,635

 

 

STATEMENTS OF CHANGES IN EQUITY, IFRS
                   
EURm Share capital Share premium account Legal reserve Invested unrestricted equity Retained earnings Translation of foreign operations Available-for-sale financial assets*) Cash flow hedges**) Total
                   
Equity at 1 Jan. 2009 98 1,161 370 - 5,614 -249 -2,375 11 4,631
                   
Changes in equity                  
Share-based payments         0       0
Total comprehensive income for the period       127 10 -191 -6 -59
                   
Equity at 31 March 2009 98 1,161 370 - 5,742 -238 -2,566 6 4,573
                   
                   
Equity at 1 Jan. 2010 98 0 4 1,527 5,889 -200 287 9 7,613
                   
Changes in equity                  
Share-based payments         -1       -1
Other changes         11       11
Total comprehensive income for the period       245 110 242 -2 596
                   
Equity at 31 March 2010 98 0 4 1,527 6,144 -89 529 7 8,219

 

 

*) The amount recognised in equity from available-for-sale financial assets for the period totalled EURm 283 (-233).  The amount transferred to p/l amounted to EURm -41 (42).  

**) The amount recognised in equity from cash flow hedges for the period totalled EURm -2 (-7). The amount transferred to p/l amounted to EURm - (1).  

The total comprehensive income includes also the share of the associate Nordea's other comprehensive income,in accordance with the Group's share holding. As Nordea's other comprehensive income comprise mainly the currency hedging of net investments and exchange differences, the Group's share of Nordea's other comprehensive income EURm 27 is also included in the Group's exchange differences in the statement of changes in equity.

The amount included in the translation, available-for-sale and cash flow hedge reserves represent other comprehensive income for each component, net of tax.

STATEMENT OF CASH FLOWS    
     
  1-3/2010 1-3/2009
     
Cash and cash equivalent at the beginning of the period 761 499
Cash flow from/used in operating activities -27 928
Cash flow from/used in investing activities 138 -408
Cash flow from/used in financing activities -54 29
   Increase of liabilities 409 29
   Decrease of liabilities -463 -
Cash and cash equivalent at the end of the period 819 1,048

 

The cash flow statement reports cash flows during the period classified by operating, investing and financing activities. Cash flows are reported by using the indirect method. Cash flows from operating activities derive primarily from the principal revenue-producing activities. Cash flows from investments in subsidiaries and associated undertakings and those from investments in intangible assets and property, plant and equipment are presented in investing activities. Financing activities include cash flows resulting from changes in equity and borrowings in order to conduct the business. Cash and cash equivalents consist of cash at bank and in hand and short-term deposits (under 3 months).

NOTES

ACCOUNTING POLICIES

Sampo Group's consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS) adopted by the EU. The interim financial statements are presented in accordance with IAS 34 Interim Financial Reporting. In preparing the interim financial statements, the same accounting policies and methods of computation are applied as in the financial statements for 2009.

Sampo adopted various new or revised standards and interpretations at the beginning of the year 2010. These standards and interpretations are explained in Sampos accounting policies for the financial year 2009.

The financial statements are available on Sampo's website at www.sampo.com/result.

The most significant of the adopted standards is the revised IFRS 3 Business combinations. The standard includes various significant changes regarding the accounting treatment of business combinations by allowing the company to measure the non-controlling interest at fair value instead of the proportionate interest in the acquiree's net assets. The choice affects the amounts of recognised goodwill and non-controlling interest.

CONSOLIDATED INCOME STATEMENT BY SEGMENT FOR THREE MONTHS
ENDED 31 MARCH 2010
EURm P&C insurance Life insurance Holding Elimina-tion Group
           
Insurance premius written 1,416 348 - - 1,764
Net income from investments 117 214 25 -2 354
Other operating income 5 0 4 -6 3
           
Claims incurred -710 -208 - - -918
Change in liabilities for insurance and investment contracts -467 -292 - - -759
Staff costs -122 -9 -4 - -135
Other operating expenses -108 -14 -3 3 -121
           
Finance costs -7 -2 -20 4 -25
Share of associates' profit/loss 0 0 124 - 124
           
Profit before taxes 125 36 126 0 287
           
Taxes -33 -8 -1 0 -41
           
Profit for the period 92 27 126 0 245
           
Other comprehensive income for the period          
Exchange differences 83 0 - - 83
Available-for-sale financial assets 181 145 2 0 328
Cash flow hedges - -2 - - -2
Share of other comprehensive income of associates - - 27 - 27
Income tax relating to components of other comprehensive income -47 -37 0 0 -85
Other comprehensive income for the period, net of tax 216 106 29 0 351
           
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 308 133 154 0 596
           
Profit attributable to          
  Owners of the parent         245
  Non-controlling interests         0
           
Total comprehensive income attributable to          
  Owners of the parent         596
  Non-controlling interests         0
           
           
CONSOLIDATED INCOME STATEMENT BY SEGMENT FOR THREE MONTHS
ENDED 31 MARCH 2009
 
           
EURm P&C insurance Life insurance Holding Elimina-tion Group
           
Insurance premius written 1,327 144 - - 1,470
Net income from investments 102 50 -6 19 165
Other operating income 5 0 2 -5 3
           
Claims incurred -630 -187 - - -818
Change in liabilities for insurance and investment contracts -435 45 - - -390
Staff costs -106 -7 -2   -115
Other operating expenses -110 -15 -6 3 -129
           
Finance costs -8 -3 -9 2 -17
Share of associates' profit/loss 0 0 - - 0
           
Profit before taxes 144 27 -21 19 169
           
Taxes -36 -6 6 -5 -42
           
Profit for the period 108 21 -16 14 127
           
Other comprehensive income for the period          
Exchange differences 10 0 - - 10
Available-for-sale financial assets -67 -79 -82 -19 -247
Cash flow hedges - 8 - - 8
Income tax relating to components of other comprehensive income 17 18 2 5 42
Other comprehensive income for the period, net of tax -39 -53 -80 -14 -186
           
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 69 -32 -96 0 -59
           
Profit attributable to          
  Owners of the parent         127
  Non-controlling interests         0
           
Total comprehensive income attributable to          
  Owners of the parent         -59
  Non-controlling interests         0

 

 

 

CONSOLIDATED BALANCE SHEET BY SEGMENT AT 31 MARCH 2010
           
EURm P&C insurance Life insurance Holding Elimina-tion Group
           
Assets          
Property, plant and equipment 22 5 5 - 33
Investment property 28 86 10 - 123
Intangible assets 550 167 0 - 717
Investments in associates 9 0 5,184 - 5,193
Financial assets 10,715 5,449 2,772 -2,538 16,397
Investments related to unit-linked insurance contracts - 2,656 - - 2,656
Tax assets 50 0 10 1 60
Reinsurers' share of insurance liabilities 475 4 - - 479
Other assets 1,710 177 332 -26 2,193
Cash and cash equivalents 550 99 183 - 832
Total assets 14,108 8,643 8,496 -2,564 28,683
           
Liabilities          
Liabilities for insurance and investment contracts 9,332 4,472 - - 13,803
Liabilities for unit-linked insurance and investment contracts - 2,645 - - 2,645
Financial liabilities 571 120 1,660 -166 2,185
Tax liabilities 456 136 - 0 592
Provisions 33 - - - 33
Employee benefits 101 - - - 101
Other liabilities 748 244 138 -26 1,104
Total liabilities 11,241 7,616 1,798 -192 20,463
           
Equity          
Share capital         98
Reserves         1,530
Retained earnings         6,144
Other components of equity         446
Equity attributable to owners of the parent         8,219
Non-controlling interests         0
Total equity         8,219
           
Total equity and liabilities         28,683
           
           
CONSOLIDATED BALANCE SHEET BY SEGMENT AT 31 DECEMBER 2009
           
EURm P&C insurance Life insurance Holding Elimina-tion Group
           
Assets          
Property, plant and equipment 23 5 5 - 34
Investment property 28 87 10 - 124
Intangible assets 521 167 0 - 688
Investments in associates 3 0 5,168 - 5,172
Financial assets 10,248 5,216 2,554 -2,538 15,479
Investments related to unit-linked insurance contracts - 2,366 - - 2,366
Tax assets 71 - 11 0 81
Reinsurers' share of insurance liabilities 477 4 - - 481
Other assets 1,265 133 76 -36 1,439
Cash and cash equivalents 292 68 412 - 771
Total assets 12,927 8,047 8,235 -2,574 26,635
           
Liabilities          
Liabilities for insurance and investment contracts 8,583 4,431 - - 13,014
Liabilities for unit-linked insurance and investment contracts - 2,359 - - 2,359
Financial liabilities 524 132 1,609 -166 2,098
Tax liabilities 403 97 - - 500
Provisions 35 - - - 35
Employee benefits 104 - - - 104
Other liabilities 719 134 95 -36 912
Total liabilities 10,367 7,153 1,703 -202 19,022
           
Equity          
Share capital         98
Reserves         1,530
Retained earnings         5,889
Other components of equity         96
Equity attributable to owners of the parent         7,613
Non-controlling interests         0
Total equity         7,613
           
Total equity and liabilities         26,635

 

 

OTHER NOTES    
     
     
1 INSURANCE PREMIUMS    
     
P&C insurance    
  1-3/2010 1-3/2009
Premiums from insurance contracts    
Premiums written, direct insurance 1,487 1,396
Premiums written, assumed reinsurance 20 26
Premiums written, gross 1,507 1,422
Ceded reinsurance premiums written -91 -96
P&C Insurance, total 1,416 1,327
     
Change in unearned premium provision -511 -479
Reinsurers' share 45 44
Premiums earned for P&C Insurance, total 949 892
     
     
Life insurance    
  1-3/2010 1-3/2009
Premiums from insurance contracts    
Premiums from contracts with discretionary participation feature 111 54
Premiums from unit-linked contracts 101 50
Premiums from other contracts 1 1
Insurance contracts, total 213 104
Assumed reinsurance 1 0
Premiums from investment contracts    
Premiums from contracts with discretionary participation feature 0 -
Premiums from unit-linked contracts 137 43
Investment contracts, total 137 43
Reinsurers' shares -3 -4
Life insurance, total 348 144
     
Single and regular premiums from direct insurance    
Regular premiums, insurance contracts 110 82
Single premiums, insurance contracts 103 22
Single premiums, investment contracts 137 43
Total 350 147
     
Group, total 1,764 1,470
     
     
2 NET INCOME FROM INVESTMENTS    
     
P&C Insurance    
  1-3/2010 1-3/2009
Financial assets    
Derivative financial instruments 4 44
     
Financial assets designated as at fair value through p/l    
    Debt securities 4 6
    Equity securities 2 0
Total 6 6
     
Loans and receivables 3 5
     
Financial asset available-for-sale    
    Debt securities 112 73
    Equity securities 9 -9
Total 121 64
     
Total financial assets 134 119
     
Income from other assets 0 0
     
Fee and commission expense -2 -2
     
Expense on other than financial liabilities -1 -1
     
Effect of discounting annuities -15 -15
     
P&C insurance, total 117 102
     
Life insurance    
  1-3/2010 1-3/2009
Financial assets    
Derivative financial instruments -31 16
     
Financial assets designated as at fair value through p/l    
    Debt securities 3 1
    Equity securities 0 0
Total 3 1
     
Investments related to unit-linked contracts    
    Debt securities 21 1
    Equity securities 120 -17
    Loans and receivables 0 0
    Other financial assets -1 -1
Total 140 -17
     
Loans and receivables 3 3
     
Financial asset available-for-sale    
    Debt securities 58 56
    Equity securities 37 -10
Total 95 45
     
Total income from financial assets 211 48
     
Other assets 1 2
     
Fee and commission income, net 2 0
     
Life insurance, total 214 50
     
Holding    
  1-3/2010 1-3/2009
Financial assets    
Derivative financial instruments 14 0
     
Loans and other receivables 9 1
     
Financial assets available-for-sale    
    Debt securities 2 12
    Equity securities 0 -18
Total 2 -7
     
Other assets 0 0
     
Fee income, net 0 0
     
Holding, total 25 -6
     
Elimination items between segments -2 19
     
Group, total 354 165
     
     
3  CLAIMS INCURRED    
     
P&C insurance 1-3/2010 1-3/2009
     
Claims paid -726 -629
Reinsurers' share 60 34
Claims paid, net -667 -595
Change in provision for claims outstanding 23 -10
Reinsurers' share -66 -25
P&C Insurance total -710 -630
     
     
Life insurance 1-3/2010 1-3/2009
     
Claims paid -176 -149
Reinsurers' share 3 3
Claims paid, net -174 -146
Change in provision for claims outstanding -35 -41
Reinsurers' share 0 0
Life insurance, total -208 -187
     
Group, total -918 -818
     
     
4 STAFF COSTS    
     
P&C insurance 1-3/2010 1-3/2009
     
Wages and salaries -88 -78
Granted cash-settled share options 0 0
Pension costs -15 -15
Other social security costs -18 -13
P&C insurance, total -122 -106
     
     
Life insurance 1-3/2010 1-3/2009
     
Wages and salaries -6 -5
Granted cash-settled share options -1 0
Pension costs -1 -1
Other social security costs -1 0
Life insurance, total -9 -7
     
     
Holding 1-3/2010 1-3/2009
     
Wages and salaries -2 -2
Granted cash-settled share options -1 0
Pension costs 0 0
Other social security costs 0 0
Holding, total -4 -2
     
Group, total -135 -115

 

 

5 INTANGIBLE ASSETS    
     
P&C insurance 03/2010 12/2009
     
Goodwill 535 506
Customer relations 5 6
Other intangible assets 10 8
P&C Insurance, total 550 521
     
Life insurance 03/2010 12/2009
     
Goodwill 153 153
Other intangible assets 14 14
Life insurance, total 167 167
     
Holding 03/2010 12/2009
     
Other intangible assets 0 0
     
Group, total 717 688
     
     
6 FINANCIAL ASSETS    
     
P&C insurance    
  03/2010 12/2009
     
Derivative financial instruments (Note 7) 46 84
Financial assets designated as at fair value through p/l    
   Debt securities 137 136
   Equity securities 21 27
Total 158 163
Loans and receivables    
   Loans 51 2
   Deposits with ceding undertakings 1 1
Total 52 3
Financial assets available-for-sale    
   Debt securities 9,030 8,797
   Equity securities 1,428 1,201
Total 10,458 9,998
P&C insurance, total 10,715 10,248
     
Life insurance    
  03/2010 12/2009
     
Derivative financial instruments (Note 7) 68 66
Financial assets designated as at fair value through p/l    
   Debt securities 46 46
   Equity securities 11 4
Total 58 50
Loans and receivables    
   Loans 26 24
   Deposits with ceding undertakings 2 2
Total 28 26
Financial assets available-for-sale    
   Debt securities 3,325 3,289
   Equity securities *) 1,971 1,785
Total 5,296 5,074
Life insurance, total 5,449 5,216
     
*) of which investments in interest funds 124 157
     
Holding    
  03/2010 12/2009
     
Derivative financial instruments (Note 7) 28 12
Loans and receivables    
   Deposits 1 1
Financial assets available-for-sale    
   Debt securities 337 135
   Equity securities 37 36
Total 374 172
Investments in subsidiaries 2,370 2,370
Holding, total 2,772 2,554
     
Elimination items between segments -2,538 -2,538
     
Group, total 16,397 15,479

 

 

7 DERIVATIVE FINANCIAL INSTRUMENTS        
             
P&C insurance   03/2010     12/2009  
    Fair value Fair value   Fair value Fair value
  Contract/ notional amount Assets Liabilities Contract/ notional amount Assets Liabilities
Derivatives held for trading            
Interest rate derivatives 1 208 15 2 849 22 0
Foreign exchange derivatives 3 856 30 133 3 365 62 88
Equity derivatives 64 1 - 1 - 0
Total 5 128 46 135 4 215 84 88
             
Derivatives held for hedging            
Fair value hedges 199 0 0 217 0 0
             
P&C Insurance, total 5 327 46 135 4 432 84 89
             
             
Life insurance   03/2010     12/2009  
    Fair value Fair value   Fair value Fair value
  Contract/ notional amount Assets Liabilities Contract/ notional amount Assets Liabilities
Derivatives held for trading            
Interest rate derivatives 1 640 43 4 1 406 51 3
Foreign exchange derivatives 962 8 8 852 4 29
Commodity derivatives 89 6 4 14 - 0
Total 2 691 56 17 2 272 54 32
             
Derivatives held for hedging            
Cash flow hedges 118 12 - 365 12 -
Fair value hedges 325 0 3 227 - -
Total 443 12 3 591 12 -
             
Life insurance, total 3 134 68 20 2 863 66 32
             
             
Holding   03/2010     12/2009  
    Fair value Fair value   Fair value Fair value
  Contract/ notional amount Assets Liabilities Contract/ notional amount Assets Liabilities
Derivatives held for trading            
Interest rate derivatives 975 22 - 975 7 -
Exchange derivatives 38 1 0 48 1 0
Equity derivatives 54 5 8 42 4 7
Total 1 068 28 8 1 065 12 7

 

 

 

8 INVESTMENTS RELATED TO UNIT-LINKED INSURANCE    
     
Life insurance    
  03/2010 12/2009
Financial assets as at fair value through p/l    
Debt securities 454 365
Equity securities 2,103 1,923
Loans and receivables 85 70
Derivatives 12 8
Life insurance, total 2,656 2,366
     
     
9 LIABILITIES FOR INSURANCE AND INVESTMENT CONTRACTS    
     
P&C insurance    
  03/2010 12/2009
Insurance contracts    
Provision for unearned premiums 2,224 1,668
Provision for claims outstanding 7,108 6,915
P&C Insurance, total 9,332 8,583
     
Reinsurers' share    
Provision for unearned premiums 96 49
Provision for claims outstanding 379 428
P&C Insurance, total 475 477
     
     
Life insurance    
  03/2010 12/2009
Insurance contracts    
Liabilities for contracts with DPF    
   Provision for unearned premiums 2,527 2,513
   Provision for claims outstanding 1,877 1,844
Total 4,404 4,358
Liabilities for contracts without DPF    
   Provision for unearned premiums 13 13
   Provision for claims outstanding 0 0
Total 14 13
Total 4,418 4,371
     
Assumed reinsurance    
   Provision for unearned premiums 1 1
   Provision for claims outstanding 2 2
Total 3 3
     
Insurance contracts, total    
Provision for unearned premiums 2,541 2,528
Provision for claims outstanding 1,879 1,846
Total 4,421 4,374
     
Investment contracts    
Liabilities for contracts with DPF    
   Provision for unearned premiums 51 57
     
Liabilities for insurance and investment contracts, total    
Provision for unearned premiums 2,592 2,585
Provision for claims outstanding 1,879 1,846
Life insurance, total 4,472 4,431
     
Recoverable from reinsurers    
Provision for unearned premiums 0 0
Provision for claims outstanding 4 4
Life insurance, total 4 4

 

 

Investment contracts do not include a provision for claims outstanding.


Liability adequacy test does not give rise to supplementary claims.


Exemption allowed in IFRS 4 Insurance contracts has been applied to investment contracts with DPF or contracts with a right to trade-off for an investment contract with DPF. These investment contracts have been valued like insurance contracts.

 

Group, total 13,803 13,014

 

10 LIABILITIES FROM UNIT-LINKED INSURANCE AND INVESTMENT CONTRACTS
     
Life insurance 03/2010 12/2009
     
Unit-linked insurance contracts 2,123 1,961
Unit-linked investment contracts 522 398
Life insurance, total 2,645 2,359
     
11 FINANCIAL LIABILITIES    
     
P&C insurance 03/2010 12/2009
     
Derivative financial instruments (Note 7) 135 89
     
Subordinated debt securities    
Subordinated loans 436 435
     
P&C insurance, total 571 524
     
     
Life insurance 03/2010 12/2009
     
Derivative financial instruments (Note 7) 20 32
     
Subordinated debt securities    
Subordinated loans 100 100
     
Life insurance, total 120 132
     
     
Holding 03/2010 12/2009
     
Derivative financial instruments (Note 7) 8 7
     
Debt securities in issue    
Commercial papers 525 466
Bonds 991 962
Total 1,516 1,429
     
Subordinated debt securities    
Debentures - 37
     
Other    
Pension loan 130 130
Other 6 6
Total 136 136
     
Holding, total 1,660 1,609
     
Elimination items between segments -166 -166
     
Group, total 2,185 2,098

 

 

12 CONTINGENT LIABILITIES AND COMMITMENTS  
         
P&C insurance        
  03/2010 12/2009    
Off-balance sheet items        
Guarantees 18 19    
Other irrevocable commitments 57 69    
Total 75 88    
         
Assets pledged as collateral for liabilities or contingent liabilities        
  03/2010 03/2010 12/2009 12/2009
Assets pledged as collateral Assets pledged Liabilities/ commit- ments Assets pledged Liabilities/ commit- ments
Cash at balances at central banks 9 7 9 7
Investments        
- Investment securities 134 110 124 101
Total 143 117 133 108
         
Non-cancellable operating leases 03/2010 12/2009    
Minimum lease payments        
not later than one year 32 32    
later than one year and not later than five years 80 82    
later than five years 105 106    
Total 218 220    
         
         
Life insurance        
  03/2010 12/2009    
Off-balance sheet items        
Fund commitments 431 357    
         
  03/2010 12/2009    
Other commitments        
Acquisition of IT-software 0 0    
         
Non-cancellable operating leases 03/2010 12/2009    
Minimum lease payments        
not later than one year 2 2    
later than one year and not later than five years 7 7    
later than five years 0 1    
Total 9 10    
         
         
Holding        
  03/2010 12/2009    
Off-balance sheet items        
Fund commitments 3 3    
         
Assets pledged as collateral for liabilities or contingent liabilities        
  03/2010 03/2010 12/2009 12/2009
Assets pledged as collateral Assets pledged Liabilities/ commit- ments Assets pledged Liabilities/ commit- ments
Investments        
- Mortgaged collateral notes 15 6 15 6
         
Non-cancellable operating leases 03/2010 12/2009    
Minimum lease payments        
not later than one year 1 1    
later than one year and not later than five years 3 3    
later than five years 2 2    
Total 6 7    
         
         
13 RESULT ANALYSIS OF P&C INSURANCE BUSINESS
         
  1-3/2010 1-3/2009    
         
Premiums earned 949 892    
Claims incurred -772 -687    
Operating expenses -160 -153    
Other technical income and expenses 0 0    
Allocated investment return transferred from the non-technical account 51 53    
Technical result 68 105    
Investment result 125 109    
Allocated investment return transferred to the technical account -66 -68    
Other income and expenses -2 -2    
Operating result 125 144    

 

 

14 SAMPO PLC'S INCOME STATEMENT AND BALANCE SHEET (FAS)  
     
INCOME STATEMENT    
  1-3/2010 1-3/2009
     
Other operating income 4 3
Staff expenses -4 -2
Depreciation and impairment 0 0
Other operating expenses -3 -6
Operating profit -3 -5
Finance income and expenses 209 -15
Profit before appropriations and income taxes 206 -21
Income taxes -1 6
Profit for the financial period 206 -15
     
     
BALANCE SHEET 03/2010 12/2009
     
ASSETS    
Non-current assets    
Intangible assets 1 1
Property, plant and equipment 4 4
Investments    
  Shares in Group companies 2,370 2,370
  Receivables from Group companies 122 122
  Shares in participating undertakings 5,226 5,168
  Receivables from participating undertakings 50 -
  Other shares and participations 42 14
  Other receivables 165 41
Receivables 368 98
Cash and cash equivalents 183 412
     
TOTAL ASSETS 8,531 8,229
     
LIABILITIES    
Equity    
Share capital 98 98
Fair value reserve -2 -3
Invested unrestricted equity 1,527 1,527
Other reserves 273 273
Retained earnings 4,640 4,108
Profit for the year 206 531
Total equity 6,741 6,534
     
Liabilities    
Long-term 1,121 1,129
Short-term 669 567
Total liabilities 1,790 1,696
     
TOTAL LIABILITIES 8,531 8,229

 

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