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In Sampo Group's interim report published on 10 August 2011 the profit for 2011 was expected to be good excluding extraordinary items caused by the development in the capital market. Two items will weaken the third quarter profits -associated company Nordea's non-recurring cost provision and impairment losses in the investment assets of the insurance operations.
The technical profitability of Sampo Group's insurance operations has developed according to expectations during the third quarter of 2011.
Sampo Group's profit before taxes for the third quarter of 2011 amounts to approximately EUR 150 million. Net asset value per share is expected to have fallen from EUR 16.24 at the end of June 2011 to approximately EUR 13.60.
Nordea has made a provision of EUR 171 million for restructuring costs in its interim report published today. In addition the net result from items at fair value weakened. Sampo's share of Nordea's net profit for third quarter is EUR 80 million. In January-June 2011 Sampo's share of Nordea's profit was EUR 294 million.
As a result of the growing uncertainties in the world economy the share prices fell strongly during the third quarter of 2011. According to the accounting principles followed in Sampo Group, if the fair value of a listed equity or participation decreases below the average acquisition cost by 20 per cent, an impairment loss is recognized in the profit and loss account. On 30 June 2011 Sampo Group had equity investments of approximately EUR 2.7 billion. Impairment losses of EUR 152 million in the P&C insurance segment and EUR 37 million in the life insurance segment will be recognized in Sampo Group's result for July-September 2011
Sampo Group publishes the Interim Report for January-September 2011 on Wednesday 2 November 2011.
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