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Sampo Group reported good results for 2012 in all of its businesses despite the challenging economic environment. P&C insurance achieved a better combined ratio than ever before, Nordea achieved an all-time high operating profit and the volume development in life insurance was exceptionally strong.
- If P&C and Nordea increasingly resemble each other. They are the only pan-Nordic companies in their industry that are not only market leaders but also very profitable, says Group CEO and President Kari Stadigh.
Dividend proposal of EUR 1.35 per share
Sampo Group's profit before taxes for 2012 rose to EUR 1,616 million (1,228). Total comprehensive income for the period, taking changes in the market value of assets into account, increased to EUR 1,855 million (686). Earnings per share amounted to EUR 2.51 (1.85). Return on equity for the Group increased to 19.5 per cent for 2012 (7.7). Net asset value per share on 31 December 2012 was EUR 17.55 (14.05).
Profit before taxes in the P&C insurance segment increased 35 per cent to EUR 858 million (636). Combined ratio for the full year 2012 was 89.3 per cent (92.0). Sampo's share of Nordea's net profit in 2012 rose to EUR 653 million (534). In life insurance profit before taxes amounted to EUR 136 million (137). Life insurance premiums grew 15 per cent to EUR 977 million (849).
The Board proposes to the Annual General Meeting to be held on 18 April 2013 a dividend of EUR 1.35 per share (1.20) and an authorization to repurchase a maximum of 50 million Sampo A shares.
Sampo Group's business areas are expected to report good operating results for 2013. However, the mark-to-market results are, particularly in life insurance, highly dependent on capital market developments. The low interest rate level also creates a challenging environment for reinvestment in fixed income instruments.
In light of the excellent combined ratio development in 2012, the P&C insurance operations are expected to reach their long-term combined ratio target of below 95 per cent in 2013 by a margin. Nordea's contribution to the Group's profit is expected to be significant.
Please find Sampo Group's Financial Statements Release for 2012 as well as A Supplementary Financial Information Package at www.sampo.com/result.
Sampo will today arrange a Finnish-language press conference (Savoy, Eteläesplanadi 14, Helsinki), at 12.30 pm Finnish time. An English-language telephone conference for investors and analysts will be arranged at 4 pm Finnish time (2 pm UK time). Please call +1 334 323 6203 or +44 (0)20 7162 0125. Please be ready to state the ID number '928471' and the password 'Sampo'. The telephone conference can also be followed live on the Internet at www.sampo.com/result.
For more information, please contact:
Maria Silander, Press Officer, tel. +358 10 516 0031
The principal media