Mission and Strategy

Sampo Group aims to create value for its shareholders. Value is created through efficient and highly profitable operating units and by investing in situations offering significant upside potential with manageable downside risk. Shareholders benefit from the value creation through a high and stable dividend yield.

Sampo Group's business areas are P&C insurance and life insurance under If and Mandatum Life brands, respectively. The Group is also the largest shareholder in Nordea Bank, the leading Nordic banking franchise. On a Group level Sampo has no stated strategy but the business areas have well-defined strategies based on return on equity targets.

If P&C Insurance - Security and Stability

If 's mission is to offer attractively priced insurance solutions that provide customers security and stability in their business operations, housing and daily life. The company's vision is to be the leading property and casualty insurance company in the Nordic and Baltic regions with the most satisfied customers, leading edge insurance expertise and superior profitability.

If 's strategic goal is to establish better profitability and customer satisfaction in the long run than competitors, coupled with high creditworthiness. The financial targets are to achieve a combined ratio of less than 95 per cent and a return on equity (RoE) of at least 17.5 per cent.

If 's long term priorities to ensure a strong and stable profitability development are based on a sound operating platform, leading cost position, most satisfied customers, leading edge insurance expertise and an investment strategy based on balanced risk. The following four areas constitute the key elements
in If 's strategic direction:

• Customer value - If will exceed customer expectations through superior insurance solutions, fast and accurate claims management and sympathetic behavior
• Focused Insurance Expertise - If will purposefully strengthen the organisation's skills in developing, pricing and distributing insurance products, as well as in the areas of liability loss prevention and claims management
• Nordic Business Platform - If will create competitive advantage through economies of scale and know-how transfer through an integrated Nordic and Baltic platform
• Investment Strategy with Balanced Risk - If has adopted a low risk strategy in investments by maintaining a balance between insurance commitments and investment assets in terms of currency and duration. Surplus capital is invested to enhance total returns.

Mandatum Life - from an Insurance Factory to a Company of Excellent Services

Mandatum Life aims to be the leading life insurance provider in Finland and the Baltics. The company has during 2008 and 2009 made substantial investments in the development of sales and customer service. Mandatum Life's core product areas will continue to be unit linked policies, risk products and voluntary corporate pension schemes.

In Finland Mandatum Life relies mainly on three sales channels - in-house corporate sales teams, wealth management focusing on HNWIs and Sampo Bank's network.

The company believes in the increased role of voluntary corporate pension schemes in complementing the statutory pension scheme. In addition it is seen that companies create significant value by covering the person risks of their employees through voluntary insurance covers.

Mandatum Life started its own wealth management and investment solutions activities in 2008 and the operation got properly off the ground in 2009. The focus is on wealthy private individuals and institutions.

Sampo Bank's network is Mandatum Life's main channel in private segment. The company will place more of its own corporate sales specialists into the bank channel, which is expected to lead to a notable increase in the sales of life insurance products to corporations. Due to the changes in legislation related to the individual pension accounts and private pensions Sampo Bank and Mandatum Life have agreed not to continue sales of Mandatum Life's private pension insurances for private individuals.

The result of Mandatum Life consists of three components - investment result, risk result and expense result. The strategy in investment management is to maintain adequate solvency in relation to market risks in the balance sheet. This enables the company to strive for a return that is higher than the risk free return. In expense and risk result Mandatum Life seeks growth, even if in the short term the expense result will suffer from the substantial investments in sales channels and Wealth Management unit. Mandatum Life's financial target is to produce an RoE of at least 17.5 per cent.