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Sampo-Leonia´s new name Sampo
Stock Exchange Release - 23 Jan 2001 at 12:00 PM
Sampo's company logo will be a modernised version of the Group's current logo. The new modernised logo made by professor Kyösti Varis was published today. The Group's corporate and retail banking and insurance business will use the Sampo brand, which will replace the current Sampo-Leonia brand as of April. The investment bank and the private bank will be using the Mandatum brand. Mutual funds will be produced under both brands.
The Board of Directors specified also the Group's strategy. The growth areas of the business operations will be the fastest growing areas on the market, which are long-terms saving (life insurance, asset management and funds), retail and private banking as well as investment banking.
Non-life insurance is not a growth area and the emphasis will be on domestic operations and improving profitability. An investigation pertaining to a restructuring of the non-life insurance business has been initiated.
Underwriting of new international non-life insurance and increasing of credit granting to large companies will be relinguished immediately. In the Baltic Rim and Eastern Europe the focus for the time being will be on taking the current operations properly over and the upgrading of these. The CEE Central & East European Group will cease to exist as an organisational unit and its business operations will be affiliated to the line organisation; the Baltic banks to the distribution division and the life and pension insurance companies in Poland to the life insurance unit.
"The new Sampo Group will benefit from the change in the Finnish savings behaviour, as the Group has a strong knowhow of asset management and capital markets. In addition, the Group's broad clientele and distribution network constitute a good basis for creating a physical and electronic finance portal for serving private customers. The combination of the former Leonia and Sampo basic office networks will be completed as soon as possible, in order to make our service more efficient and increase cost savings. Also Leonia's asset management service and Mandatum's office network will be combined", says CEO Björn Wahlroos.
The company's Board of Directors will discuss and decide on measures pertaining to the Group's balance sheet structure and overcapitalisation at their meeting at the end of February.
The Sampo Group's Organisation
A line organisation will replace the current matrix organisation in the new Sampo Group as of February 1, 2001, when the new organisation confirmed by the Board of Directors will enter into force. With respect to management culture, the current internal board practice will be replaced by line management. The Boards of Directors of the subsidiaries will no longer have external members.
"A line organisation facilitates a faster integration. In addition, the administration costs are lower than in a matrix organisation. Also, personal responsibilities are more clearly defined in a line organisation", explains Björn Wahlroos when describing the benefits of the change.
The Board of Directors appointed today the central management of the new organisation. As Deputy CEO and Deputy Managing Director was appointed Mr Kari Stadigh, who will be in charge of, i.a. the Group's investment operations.
Mr Mika Ihamuotila was appointed Executive Vice President and Head of Long-Term Savings. Mr Pentti Hakkarainen was appointed Executive Vice President and Head of Distribution and Banking. Mr Kurt Lundmark was appointed Executive Vice President and Head of Investment Banking. Mr Hannu Kokkonen was appointed Executive Vice President and Head of Non-life Insurance. All four will report to the CEO.
Ms Maarit Näkyvä was appointed Executive Vice President and Head of Retail Distribution and Private Banking. Mr Ilkka Hallavo was appointed Head of Corporate Distribution. Both of them will report to Executive Vice President Hakkarainen.
Mr Juhani Vesterinen was appointed Head of Life Insurance. He will report to Executive Vice President Ihamuotila.
Ms Ilona Ervasti-Vaintola was appointed Chief Counsel and the Group's principal attorney. Mr Patrick Lapveteläinen was appointed Chief Administrative Officer and will be in charge of i.a. the rationalisation project pertaining to the administration. Both of them will report to the CEO.
Mr Peter Johansson was appointed Head of Corporate Planning and Mr Matti Ruohonen Chief Financial Officer. Both of them will report to the Deputy CEO.
Mr Björn Wahlroos and the above mentioned persons will form the Group Executive Committee.
The main structure of the new line organisation and the management is presented in its entirety at www.sampo-leonia.fi and www.mandatum.fi.
The Managing Director of Industrial Insurance Company Ltd Mr Juha Toivola and the Managing Director of Sampo Industrial Insurance N.V. (SII) Mr Eero Holma have submitted their resignations as of February 1, 2001. The Board of Directors has accepted the resignations. Mr Orvo Siimestö, Executive Vice President of Leonia Bank will retire on March 1, 2001 in accordance with his employment contract. As new Managing Director of Industrial Insurance was appointed Mr Hannu Kokkonen, Head of Non-life Insurance and as Deputy Managing Director Mr Anders Nordman, who was also appointed Managing Director (ad int.) of SII.
A Stricter Inner Circle Directive
The Board of Directors decided that the inner circle directive applied in the Group will be more strict than the official norms. The new directive will enter into force in March. Approximately 100 persons in the management, financial administration and investment operations will come under the scope of this directive. These persons must ask for a separate permission for each stock purchase.
SAMPO-LEONIA INSURANCE COMPANY PLC
Head of Group Communication
Mr Björn Wahlroos, the CEO of Sampo-Leonia, will host a telephone conference on Tuesday, January 23 at 3.30 p.m. Finnish time (1.30 p.m. UK time). Subject: strategic and organisational changes in Sampo-Leonia. Kindly call a few minutes before the starting time at +44 (0) 8700 559369.
FOR FURTHER INFORMATION, PLEASE CONTACT: Ms Taru Narvanmaa, Head of Investor Relations, tel. +358 10 514 0030, mobile +358 50 590 9398.
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