SAMPO PLC INTERIM
REPORT 3 November 2010 at 9.30 am
SAMPO GROUP'S RESULTS FOR JANUARY - SEPTEMBER 2010
Yet another strong quarter
Sampo Group's profit before taxes for January-September 2010 rose strongly to
EUR 959 million (625). The total comprehensive income for the period, taking
changes in the market value of assets into account, was EUR 1,344 million
(3,524).
- Earnings per share rose to EUR 1.43 (0.88) and marked-to-market EPS was EUR
2.39 per share (6.05). Return on equity for the Group amounted to 22.3 per cent
for the period (75.8).
- Net asset value per share reached an all-time high, despite the dividend of
EUR 1 per share paid in April 2010, and amounted to EUR 16.54 (14.63). The
increase was due to sound reported profits, appreciation of Nordea's share price
and favorable currency movements. Fair value reserve after tax on the Group
level increased to EUR 630 million (296).
- Combined ratio in the P&C insurance operations for January-September 2010
was 93.0 per cent (92.0). Profit before taxes increased to EUR 519 million (476)
and marked-to-market result was EUR 729 million (932). Return on equity amounted
to 39.0 per cent (54.0).
- Profit before taxes for the life insurance operations amounted to EUR 100
million (85) and marked-to-market result was EUR 228 million (404). Return on
equity was 35.2 per cent (116.5).
- Nordea is accounted for as an associated company. In the segment reporting
share of Nordea's net profit is included in the holding segment. Profit before
taxes for the segment amounted to EUR 343 million (41), of which Nordea's share
was EUR 371 million.
- Sampo Group's investment assets, excl. holding in Nordea, amounted to EUR
17.8 billion (16.1) on 30 September 2010, of which fixed income covered 79 per
cent (82), equity 17 per cent (15) and other assets 3 per cent (3).
KEY FIGURES Change Q3/ Q3/ Change
EURm 1-9/2010 1-9/2009 % 2010 2009 %
Profit before taxes 959 625 53 338 192 76
P&C insurance 519 476 9 186 167 11
Life insurance 100 85 18 31 32 -3
Associate (Nordea) 371 - - 140 - -
Holding (excl. Nordea in 2010) -28 41 - -19 -12 57
Profit for the period 801 493 62 284 148 92
Change Change
Earnings per share, EUR 1.43 0.88 0.55 0.51 0.27 0.24
EPS (incl. change in FVR) EUR 2.39 6.05 -3.66 1.01 2.72 -1.71
NAV per share, EUR *) 16.54 14.63 1.91 - - -
Average number of staff (FTE) 6,933 7,376 -443 - - -
Group solvency ratio, % *) 167.0 158.3 8.7 - - -
RoE, % 22.3 75.8 -53.5 - - -
*) 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.
THIRD QUARTER 2010 IN BRIEF
Sampo Group's third quarter 2010 profit before taxes amounted to EUR 338 million
(192). Earnings per share were EUR 0.51 (0.27). Marked-to-market earnings per
share were EUR 1.01 (2.72).
Net asset value per share increased in the third quarter of 2010 by EUR 2.04.
P&C insurance operation had a good third quarter and combined ratio improved to
90.6 per cent (90.9). Profit before taxes rose to EUR 186 million (167).
Profit before taxes for the life insurance operations amounted to EUR 31 million
(32). Premiums written increased 23 per cent to EUR 223 million (181).
Segment 'Holding' reported a profit before taxes of EUR 121 million (-12) in the
third quarter, of which EUR 140 million relates to Sampo's share of Nordea's
third quarter 2010 profit.
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 and Russia.
Results Change Q3/ Q3/ Change
EUR m 1-9/2010 1-9/2009 % 2010 2009 %
Premiums, net 3,142 2,889 9 784 715 10
Net income from investments 341 284 20 104 93 12
Other operating income 18 17 4 6 6 3
Claims incurred -2,017 -1,847 9 -660 -613 8
Change in insurance liabilities -240 -177 35 197 201 -2
Staff costs -358 -347 3 -123 -127 -3
Other expenses -345 -321 8 -115 -100 14
Finance costs -21 -22 -6 -7 -7 0
Profit (loss) before taxes 519 476 9 186 167 11
Key figures
Change Change
Combined ratio, % 93.0 92.0 1.0 90.6 90.9 -0.3
Risk ratio, % 69.5 68.1 1.4 67.2 66.9 0.3
Cost ratio, % 23.5 23.8 -0.3 23.5 24.0 -0.5
Expense ratio, % 17.0 17.3 -0.3 17.0 17.3 -0.3
Return on equity, % 39.0 54.0 -15.0 - - -
Average number of staff (FTE) 6,415 6,863 -448 - - -
Profit before taxes for P&C insurance for the first nine months of 2010
increased to EUR 519 million (476). Technical result decreased to EUR 340
million (374) because of lower allocated investment income, as a result of lower
interest rate level, and lower underwriting result. Technical result for Private
business area amounted to EUR 177 million (186), Commercial EUR 101 million
(106), Industrial EUR 45 million (55) and Baltic and Russia EUR 13 million (20).
Return on equity (RoE) exceeded clearly the target level of 17.5 per cent and
was 39.0 per cent (54.0). RoE was further strengthened by favorable currency
movements. Insurance margin (technical result in relation to net premiums
earned) amounted to 11.7 per cent (13.8). Fair value reserve at the end of
September 2010 rose to EUR 283 million (105).
Combined ratio for January-September 2010 amounted to 93.0 per cent (92.0)
supported by third quarter's combined ratio of 90.6 per cent (90.9). EUR 92
million (79) was released from technical reserves related to prior year claims.
Risk ratio was 69.5 per cent (68.1). The deterioration of 1.4 percentage points
from the same period last year was affected by the difficult first quarter of
the year.
In Private business area combined ratio rose to 93.2 (92.3). Nominal costs were
flat and cost ratio decreased 0.7 percentage points to 23.7 per cent. Risk ratio
deteriorated 1.7 percentage points reflecting the effects from extreme winter
conditions in the first quarter of the year. Despite the exceptional storms in
Finland and cloud bursts in Denmark, the third quarter claims development was
stable. In Commercial business area combined ratio was stable at 93.3 per cent
(93.1). In Industrial business area combined ratio rose to 92.4 per cent (90.9)
due to an increase in large claims costs. Risk ratio deteriorated 1.7 percentage
points to 73.9 per cent. In Baltic and Russia business area combined ratio was
92.1 per cent (89.4).
Gross written premiums increased 9 per cent to EUR 3,332 million (3,083).
Adjusted for currency the premiums increased 0.6 per cent. In business area
Private the premiums grew 3.9 per cent with fixed currencies. The largest
increase was in Denmark but all countries had positive development. In
Commercial business area premiums increased 0.2 per cent with positive growth in
Norway and Denmark. Industrial business area still suffered from recessionary
effects and premiums decreased 4.4 per cent. In business area Baltic and Russia
premiums fell 18.4 per cent.
Cost ratio improved in all business areas, except Baltic and Russia, and was
23.5 per cent (23.8). Adjusted for currency the nominal costs decreased 2 per
cent.
At the end of September 2010 the total investment assets amounted to EUR 11.8
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 341 million (284). Investment return for the first nine months of 2010
was 5.7 per cent (10.1). Duration for interest bearing assets was 1.7 years
(2.5).
If P&C's solvency ratio as at 30 September 2010 (solvency capital in relation to
net premiums written) was 86 per cent (77). Solvency capital amounted to EUR
3,599 million (2,943). Reserve ratios were 174 per cent (172) of net premiums
written and 241 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 Mandatum 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 Change Q3/ Q3/ Change
EURm 1-9/2010 1-9/2009 % 2010 2009 %
Premiums written 827 513 61 223 181 23
Net income from investments 440 495 -11 195 244 -20
Other operating income 0 0 6 0 0 -
Claims incurred -630 -466 35 -195 -154 26
Change in liabilities for
inv. and ins. contracts -468 -395 19 -172 -217 -21
Staff costs -25 -20 25 -8 -7 24
Other operating expenses -37 -37 1 -10 -13 -23
Finance costs -6 -6 -1 -2 -2 16
Profit before taxes 100 85 18 31 32 -3
Key figures
Change
Expense ratio, % 113.6 116.5 -2.9 - - -
Return on equity, % 35.2 116.5 -81.3 - - -
Average number of staff (FTE) 465 459 6 - - -
Mandatum Life Group's strong premium growth continued in the third quarter of
2010 and the result remained good. Premium income grew more than 60 per cent to
EUR 827 million (513).
Profit before taxes in life insurance for January-September 2010 amounted to EUR
100 million (85). Net investment income, excluding income on unit-linked
contracts, amounted to EUR 233 million (205). Meanwhile, net investment income
from unit-linked investments was EUR 206 million (290). The fair value reserve
increased to EUR 362 million from EUR 210 million at the end of 2009. Return on
equity (RoE) in life insurance amounted to 35.2 per cent (116.5).
Excluding the assets of EUR 2.9 billion (2.4) covering unit-linked liabilities,
investment assets amounted to EUR 5.8 billion (5.4) at market values as at 30
September 2010. Fixed income represented 64 per cent (68), equity 27 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.
For January - September 2010 the return on investments amounted to 8.0 per cent
(14.0). The duration of fixed income assets was 2.4 years (2.6) as at 30
September 2010.
Solvency capital continued to grow fast and amounted to EUR 1,210 million and
the solvency ratio rose to 23.4 per cent (18.5). Mandatum Life Group's total
technical reserves were EUR 7.3 billion (6.8), of which unit-linked reserves
accounted for 2.9 billion (2.4). The share of unit-linked reserves of total
technical reserves increased to 39 per cent (35).
Expense ratio for the life segment improved to 113.6 per cent (116.5). 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 over 60 per cent and
amounted to EUR 827 million (513). Unit-linked premiums amounted to 72 per cent
(69) of all premiums written. Premium income from the Baltic countries was EUR
44 million (29).
Mandatum Life maintained a high overall market share of 22.9 per cent (23.6) in
Finland measured by premium income. The unit-linked market share amounted to
28.0 per cent (26.6). After deleting a duplication recorded in Finnish life
insurance statistics, Mandatum Life´s overall market share was 24.9 per cent.
The duplication has no effect on unit-linked market share. Market share in the
Baltic countries amounted to 21 per cent (15).
Holding
Sampo plc controls its subsidiaries engaged in P&C and life insurance. In
addition Sampo plc held on 30 September 2010 more than 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 Change Q3/ Q3/ Change
EURm 1-9/2010 1-9/2009 % 2010 2009 %
Net investment income 57 93 -38 9 6 39
Other operating income 12 9 29 4 3 25
Staff costs -10 -8 25 -3 -2 47
Other operating expenses -8 -14 -39 -2 -3 -28
Finance costs -78 -39 99 -26 -16 60
Share of associates' profit 371 - - 140 - -
Profit before taxes 343 41 741 121 -12 -
Change
Average number of staff (FTE) 53 54 -1 - - -
The segment's profit before taxes was EUR 343 million (41), of which EUR 371
million relates to Sampo's share of Nordea's January - September 2010 profit.
Segment's profit without Nordea was EUR -19 million in the third quarter.
Sampo plc's holding in Nordea Bank was booked in the consolidated balance sheet
at EUR 5.5 billion. The market value of the holding was EUR 6.4 billion at 30
September 2010. In addition the assets on Sampo plc's balance sheet included
holdings in subsidiaries for EUR 2.4 billion (2.4).
At the end of September 2010 Sampo plc´s debt financing amounted to EUR 1,735
million, of which senior bonds and notes accounted for EUR 1,026 million and
commercial papers EUR 580 million. Gross debt to Sampo plc's equity was 28 per
cent (24).
Associated company Nordea Bank
On 30 September 2010 Sampo plc held 830,440,497 Nordea shares corresponding to a
holding of 20.5 per cent. The average price paid per share amounted to EUR 6.39
and the book value in the Group accounts was EUR 6.65 per share. The closing
price as at 30 September 2010 was EUR 7.63.
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 - September 2010 interim report
published on 27 October 2010.
Nordea's total income reached a record high as it increased 9 per cent from the
previous quarter and 4 per cent compared to the third quarter last year. The
development in the customer business remained strong. Lending volumes increased
by 4 per cent and deposit volumes by 3 per cent from the previous quarter,
margins were largely stable in the quarter and market shares increased, mainly
within household.
The fair value result in the Nordea Group increased from the low level in the
second quarter. Total expenses increased 1 per cent compared to the previous
quarter and staff costs increased by 3 per cent. In local currencies and
excluding costs related to Group initiatives, total expenses were down 2 per
cent in the third quarter. Net loan loss provisions amounted to EUR 207 million,
of which EUR 50 million relates to the Danish guarantee scheme. The loan loss
ratio was down by approx. 6 basis points compared to the previous quarter and
was 29 basis points including and 22 basis points excluding the Danish guarantee
scheme provisions.
Operating profit was up 32 per cent from the previous quarter, mainly due to
higher net interest income and net result from items at fair value. Risk-
adjusted profit increased 37 per cent compared to the previous quarter.
The inflow of new Gold and Private Banking customers remained strong, increasing
by more than 15,000 per month. Around 60 per cent of the new Gold and Private
Banking customers were new customers to Nordea.
Nordea has continued to benefit from a strong funding name and has continued to
issue long-term funding throughout the third quarter. Nordea issued its first
covered bond in Norway during the third quarter and has announced its covered
bond program in Finland with the first issue expected in the fourth quarter
2010.
The core tier 1 capital ratio, i.e. excluding hybrid loans, was 10.4 per cent
excluding transition rules according to Basel II (10.0 per cent in the second
quarter). Including transition rules, the core tier 1 capital ratio was 9.1 per
cent (9.0 per cent). The effect from currency fluctuations contributed to an
increase in income and expenses of approx. 1 percentage point compared to the
previous quarter and of approx. 4-5 percentage points compared to the third
quarter last year.
DEVELOPMENTS IN JANUARY - SEPTEMBER 2010
Personnel
The number of full-time equivalent personnel in Sampo Group on 30 September
2010 was 6,920 compared to 7,087 on 31 December 2009. The average number of
employees in January-September amounted to 6,933 (7,454).
Approximately 92 per cent of the Sampo Group staff - 6,391 employees - worked in
P&C insurance on 30 September 2010. The number of staff is divided into 1,725
employees in Finland, 1,856 employees in Sweden, 1,535 employees in Norway and
1,275 employees in Baltics and other countries. The number of personnel in P&C
insurance decreased further.
More than 7 per cent of the Sampo Group staff - 476 employees - worked in life
insurance. Life insurance operations had 371 employees in Finland and 105
employees in Baltics. The number of staff increased 5 per cent compared with the
end of the previous year.
Approximately 1 per cent of the Sampo Group staff - 53 employees - worked in the
holding company Sampo plc. The number of staff remained at earlier level.
Management incentive schemes
On 8 June 2010 Sampo's Board approved a Compensation Code which applies to all
Group companies. The Boards of these companies have adopted company-level
policies based on the Code. The Code lays down the principles for e.g.
management incentives and can be viewed at www.sampo.com/compensation.
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 January -
September 2010 amounted to EUR 10 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
On 8 June 2010 the Sampo Board decided to cancel the 90,000 Sampo A shares
purchased in late 2009 according to the authorization by the Annual General
Meeting. 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 cancellation
reduced the number of Sampo A shares with the corresponding amount but had no
effect on the share capital.
As at 30 September 2010 the number of Sampo plc's A shares totaled 560,082,390.
Total number of shares of the company, including 1,200,000 B shares, is
561,282,390 shares. Sampo plc did not hold its own A shares on 30 September
2010. The other Group companies hold no shares in the parent company either.
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. The authorisation has not been used.
Internal dividends
During the third quarter of 2010 no dividends were paid by the subsidiaries to
the parent company Sampo plc.
Sampo plc has received a dividend of EUR 103 million (SEK 1,000 million) from If
P&C Insurance Holding Ltd on 13 April 2010 and, in addition, the associated
company Nordea Bank AB paid on 8 April 2010 a dividend amounting to EUR 204
million. No dividend has been paid from Mandatum Life to Sampo plc in the first
three quarters of 2010.
Ratings
All the main ratings for Sampo Group companies remained unchanged in the third
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 30 September 2010 31 December 2009
EURm
Group capital 8,422 7,613
Sectoral items 1,717 1,545
Intangibles and other deductibles -2,413 -2,314
Dividends -421 -561
Group's own funds, total 7,305 6,283
Minimum requirements for own funds, total 4,374 3,968
Group solvency 2,930 2,315
Group solvency ratio
(Own funds per cent of minimum requirements) 167.0 158.3
The Group's solvency ratio (own funds in relation to minimum requirements for
own funds) was 167.0 per cent (158.3) as at 30 September 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 30 September 2010 was EUR
4,189 million (3,783) and adjusted solvency capital was EUR 7,279 million
(7,077).
EVENTS AFTER THE END OF THE REPORTING PERIOD
On 13 October 2010, Sampo plc received a disclosure according to which Capital
Research and Management Company's holding in Sampo plc had on 11 October 2010
fallen below one twentieth (1/20) of Sampo plc's entire stock and voting rights.
According to the notification Capital Research held 4.95 per cent of Sampo's
total share capital and 4.91 per cent of related votes.
OUTLOOK FOR THE REST OF 2010
Global economic recovery continues broadly as expected. In the Nordic countries
economic activity has rebounded faster than anticipated despite sovereign debt
problems causing uncertainty. Volatility in the capital markets will persist
with quickly changing investor sentiments.
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 and achieve a combined ratio between 92 and 94 per cent. Profit is
expected to remain on a very good level.
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 profit contribution of the associated company, Nordea Bank AB, is expected
to remain significant.
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
An English-language telephone conference for investors and analysts will be
arranged at 4 pm Finnish time (2 pm UK time). Please call +44 207 162 0025
(Europe) or +1 334 323 6201 (North America). Please be ready to state the
conference ID '877782, the conference title 'Sampo plc 2010/Q3 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 full-year 2010 result release on 9 February 2011.
Distribution:
NASDAQ OMX Helsinki
The principal media
Financial Supervisory Authority
www.sampo.com
GROUP FINANCIAL REVIEW
FINANCIAL HIGHLIGHTS 1-9/2010 1-9/2009
GROUP
Profit before taxes EURm 959 625
Return on equity (at fair value) % 22,3 75,8
Return on assets (at fair value) % 10,0 24,9
Equity/assets ratio % 28,7 28,8
Group solvency ¹) EURm 2 930 6 101
Group solvency ratio % 167,0 810,8
Average number of staff 6 933 7 376
PROPERTY & CASUALTY INSURANCE
Premiums written before reinsurers' share EURm 3 332 3 083
Premiums earned EURm 2 902 2 712
Profit before taxes EURm 519 476
Return on equity (at current value) % 39,0 54,0
Risk ratio ²) % 69,5 68,1
Cost ratio ²) % 23,5 23,8
Loss ratio ²) % 76,9 75,8
Loss ratio excl. unwinding of discount ³) % 75,9 74,7
Expense ratio ²) % 17,0 17,3
Combined ratio % 94,0 93,1
Combined ratio excl. unwinding of discount % 93,0 92,0
Average number of staff 6 415 6 863
LIFE INSURANCE
Premiums written before reinsurers' share EURm 832 519
Profit before taxes EURm 100 85
Return on equity (at current value) % 35,2 116,5
Expense ratio % 113,6 116,5
Average number of staff 465 459
HOLDING
Profit before taxes EURm 343 41
Average number of staff 53 54
PER SHARE KEY FIGURES
Earnings per share EUR 1,43 0,88
Earnings per share, incl. other
comprehensive income EUR 2,39 6,05
Capital and reserves per share EUR 15,00 13,74
Net asset value per share EUR 16,54 13,76
Adjusted share price, high EUR 19,95 17,60
Adjusted share price, low EUR 16,13 8,63
Market capitalisation EURm 11 119 9 661
¹) The Group solvency is calculated according to the consolidation method
defined in Chapter 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. Nordea Bank has been consolidated
as an associate as of 31 Dec. 2009, so the capital demand required by this
investment did not burden the Group's solvency on 30 Sep. 2009.
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 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 7-9/2010 4-6/2010 1-3/2010 10-12/2009 7-9/2009
Insurance premiums written 1 007 1 198 1 764 1 077 896
Net income from investments 310 163 363 259 348
Other operating income 6 6 3 6 6
Claims incurred -855 -874 -918 -792 -767
Change in liabilities for
insurance and investment
contracts 25 26 -759 -61 -17
Staff costs -135 -124 -135 -134 -136
Other operating expenses -125 -139 -121 -130 -115
Finance costs -35 -29 -35 -25 -23
Share of associates' profit/loss 140 106 124 0 0
Profit for the period before
taxes 338 334 287 199 192
Taxes -55 -62 -41 -51 -44
Profit for the period 284 273 245 148 148
Other comprehensive income for
the period
Exchange differences on
translating foreign operations 58 30 83 -8 102
Available-for-sale financial
assets 311 -179 328 -189 1 549
Cash flow hedges -2 -4 -2 -3 1
Share of other comprehensive
income of associates 1 9 27 - -
Income tax relating to components
of other comprehensive income -81 48 -85 -50 -175
Other comprehensive income for
the period, net of tax 288 -96 351 -250 1 477
TOTAL COMPREHENSIVE INCOME FOR
THE PERIOD, NET OF TAX 571 177 596 -102 1 624
Profit attributable to
Owners of the parent 284 273 245 148 148
Non-controlling interests 0 0 0 0 0
Total comprehensive income
attributable to
Owners of the parent 571 177 596 -101 1 625
Non-controlling interests 0 0 0 0 0
CONSOLIDATED COMPREHENSIVE INCOME STATEMENT
EURm Note 1-9/2010 1-9/2009
Insurance premiums written 1 3 969 3 403
Net income from investments 2 837 897
Other operating income 16 14
Claims incurred 3 -2 647 -2 314
Change in liabilities for insurance and investment
contracts -708 -572
Staff costs 4 -393 -375
Other operating expenses -385 -365
Finance costs -99 -62
Share of associates' profit/loss 370 0
Profit before taxes 959 625
Taxes -158 -133
Profit for the period 801 493
Other comprehensive income for the period
Exchange differences 171 130
Available-for-sale financial assets 460 3 178
Cash flow hedges -8 0
Share of other comprehensive income of associates 38 -
Income tax relating to components of other comprehensive
income -118 -276
Other comprehensive income for the period, net of tax 543 3 032
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1 344 3 524
Profit attributable to
Owners of the parent 801 493
Non-controlling interests 0 0
Total comprehensive income attributable to
Owners of the parent 1 344 3 524
Non-controlling interests 0 0
Basic earnings per share (eur) 1,43 0,88
CONSOLIDATED BALANCE SHEET
EURm Note 09/2010 12/2009
Assets
Property, plant and equipment 30 34
Investment property 123 124
Intangible assets 5 732 688
Investments in associates 5 535 5 172
Financial assets 6, 7 17 060 15 479
Investments related to unit-linked insurance contracts 8 2 887 2 366
Tax assets 64 81
Reinsurers' share of insurance liabilities 541 481
Other assets 1 684 1 439
Cash and cash equivalents 746 771
Total assets 29 401 26 635
Liabilities
Liabilities for insurance and investment contracts 9 13 884 13 014
Liabilities for unit-linked insurance and investment
contracts 10 2 889 2 359
Financial liabilities 11 2 286 2 098
Tax liabilities 615 500
Provisions 30 35
Employee benefits 105 104
Other liabilities 1 170 912
Total liabilities 20 979 19 022
Equity
Share capital 98 98
Reserves 1 530 1 530
Retained earnings 6 159 5 889
Other components of equity 635 96
Equity attributable to owners of the parent 8 422 7 613
Non-controlling interests 0 0
Total equity 8 422 7 613
Total equity and liabilities 29 401 26 635
STATEMENTS OF CHANGES IN EQUITY, IFRS
Avai-
In- Trans- lable-
Sha- vest- lation for-
re ed un- Re- of sale
pre- Le- re- tain- foreign finan- Cash
Sha- mium gal strict- ed ope- cial flow
re ac- re- ed earn- rations assets hedges
EURm capital count serve equity ings *) **) ***) Total
Equity at 1
Jan. 2009 98 1 161 370 0 5 614 -249 -2 375 11 4 631
Changes in
equity
Transfers
between
equity -1 161 -366 1 527 -1
Share-based
payments -2 -2
Recognition
of undrawn
dividends 11 11
Dividends -449 -449
Total comprehensive
income for the period 493 130 2 902 0 3 524
Equity at
30 Sep. 2009 98 0 4 1 527 5 667 -119 527 11 7 715
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
Recognition
of undrawn
dividends 10 10
Dividends -561 -561
Share of
associate's
other
changes
in equity 17 17
Total comprehensive
income for the period 801 209 340 -6 1 344
Equity at
30 Sep. 2010 98 0 4 1 527 6 155 9 626 3 8 422
*) 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 38 is also included in the Group's
exchange differences in the statement of changes in equity.
**) The amount recognised in equity from available-for-sale financial assets for
the period totalled EURm 453 (2,851). The amount transferred to p/l amounted to
EURm -113 (50).
***) The amount recognised in equity from cash flow hedges for the period
totalled EURm -6 (0) .
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
1-9/2010 1-9/2009
Cash and cash equivalent at the beginning of the period 761 499
Cash flow from/used in operating activities 350 1 257
Cash flow from/used in investing activities 31 -1 700
Cash flow from/used in financing activities -423 531
Dividends paid -554 -443
Increase of liabilities 1 468 1 497
Decrease of liabilities -1 337 -522
Cash and cash equivalent at the end of the period 718 588
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 NINE MONTHS ENDED 30 SEPTEMBER 2010
EURm P&C insurance Life insurance Holding Elimination Group
Insurance premius
written 3 142 827 - - 3 969
Net income from
investments 341 440 57 -1 837
Other operating income 18 0 12 -14 16
Claims incurred -2 017 -630 - - -2 647
Change in liabilities
for insurance and
investment contracts -240 -468 - - -708
Staff costs -358 -25 -10 - -393
Other operating expenses -345 -37 -8 5 -385
Finance costs -21 -6 -78 7 -99
Share of associates'
profit/loss 0 0 371 - 370
Profit before taxes 519 100 343 -3 959
Taxes -139 -24 5 0 -158
Profit for the period 380 76 348 -2 801
Other comprehensive
income for the period
Exchange differences 171 0 - - 171
Available-for-sale
financial assets 242 213 4 1 460
Cash flow hedges - -8 - - -8
Share of other
comprehensive income of
associates - - 38 - 38
Income tax relating to
components of other
comprehensive income -64 -53 -1 0 -118
Other comprehensive
income for the period,
net of tax 349 152 41 1 543
TOTAL COMPREHENSIVE
INCOME FOR THE PERIOD 729 228 389 -2 1 344
Profit attributable to
Owners of the parent 801
Non-controlling
interests 0
Total comprehensive
income attributable to
Owners of the parent 1 344
Non-controlling
interests 0
CONSOLIDATED INCOME STATEMENT BY SEGMENT FOR NINE MONTHS ENDED 30 SEPTEMBER 2009
EURm P&C insurance Life insurance Holding Elimination Group
Insurance premius
written 2 889 513 - - 3 403
Net income from
investments 284 495 93 25 897
Other operating income 17 0 9 -12 14
Claims incurred -1 847 -466 - - -2 314
Change in liabilities
for insurance and
investment contracts -177 -395 - - -572
Staff costs -347 -20 -8 - -375
Other operating expenses -321 -37 -14 6 -365
Finance costs -22 -6 -39 6 -62
Share of associates'
profit/loss 0 0 - - 0
Profit before taxes 476 85 41 24 625
Taxes -116 -18 8 -6 -133
Profit for the period 360 66 48 18 493
Other comprehensive
income for the period
Exchange differences 130 0 - - 130
Available-for-sale
financial assets 605 456 2 140 -23 3 178
Cash flow hedges - 0 - - 0
Income tax relating to
components of other
comprehensive income -164 -118 0 6 -276
Other comprehensive
income for the period,
net of tax 572 337 2 140 -17 3 032
TOTAL COMPREHENSIVE
INCOME FOR THE PERIOD 932 404 2 188 0 3 524
Profit attributable to
Owners of the parent 493
Non-controlling
interests 0
Total comprehensive
income attributable to
Owners of the parent 3 524
Non-controlling
interests 0
CONSOLIDATED BALANCE SHEET BY SEGMENT AT 30 SEPTEMBER 2010
EURm P&C insurance Life insurance Holding Elimina-tion Group
Assets
Property, plant and
equipment 19 5 5 - 30
Investment property 26 97 4 -4 123
Intangible assets 566 165 0 - 732
Investments in
associates 11 0 5 524 - 5 535
Financial assets 11 417 5 549 2 656 -2 563 17 060
Investments related to
unit-linked insurance
contracts - 2 887 - - 2 887
Tax assets 49 - 15 0 64
Reinsurers' share of
insurance liabilities 538 4 - - 541
Other assets 1 530 122 50 -17 1 684
Cash and cash
equivalents 523 140 82 - 746
Total assets 14 679 8 969 8 336 -2 584 29 401
Liabilities
Liabilities for
insurance and
investment contracts 9 425 4 459 - - 13 884
Liabilities for unit-
linked insurance and
investment contracts - 2 889 - - 2 889
Financial liabilities 624 105 1 747 -190 2 286
Tax liabilities 450 165 - - 615
Provisions 30 - - - 30
Employee benefits 105 - - - 105
Other liabilities 859 230 100 -19 1 170
Total liabilities 11 493 7 848 1 847 -210 20 979
Equity
Share capital 98
Reserves 1 530
Retained earnings 6 159
Other components of
equity 635
Equity attributable to
owners of the parent 8 422
Non-controlling
interests 0
Total equity 8 422
Total equity and
liabilities 29 401
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
1-9/2010 1-9/2009
Premiums from insurance contracts
Premiums written, direct insurance 3 260 3 002
Premiums written, assumed reinsurance 72 81
Premiums written, gross 3 332 3 083
Ceded reinsurance premiums written -190 -194
P&C Insurance, total 3 142 2 889
Change in unearned premium provision -276 -211
Reinsurers' share 36 34
Premiums earned for P&C Insurance, total 2 902 2 712
Life insurance
1-9/2010 1-9/2009
Premiums from insurance contracts
Premiums from contracts with discretionary participation
feature 229 157
Premiums from unit-linked contracts 251 173
Premiums from other contracts 3 3
Insurance contracts, total 483 333
Assumed reinsurance 2 2
Premiums from investment contracts
Premiums from contracts with discretionary participation
feature 0 3
Premiums from unit-linked contracts 347 182
Investment contracts, total 347 185
Reinsurers' shares -6 -6
Life insurance, total 827 513
Single and regular premiums from direct insurance
Regular premiums, insurance contracts 276 256
Single premiums, insurance contracts 207 77
Single premiums, investment contracts 347 185
Total 830 518
Group, total 3 969 3 403
2 NET INCOME FROM INVESTMENTS
P&C Insurance
1-9/2010 1-9/2009
Financial assets
Derivative financial instruments 14 34
Financial assets designated as at fair value through p/l
Debt securities 8 25
Equity securities 3 10
Total 11 34
Loans and receivables 9 11
Financial asset available-for-sale
Debt securities 348 275
Equity securities 24 -20
Total 372 255
Total financial assets 406 335
Income from other assets -1 0
Fee and commission expense -6 -4
Expense on other than financial liabilities -14 -2
Effect of discounting annuities -44 -45
P&C insurance, total 341 284
Life insurance
1-9/2010 1-9/2009
Financial assets
Derivative financial instruments -7 52
Financial assets designated as at fair value through p/l
Debt securities 4 4
Equity securities 1 0
Total 5 4
Investments related to unit-linked contracts
Debt securities 48 33
Equity securities 159 254
Loans and receivables -1 -
Other financial assets 0 2
Total 206 290
Loans and receivables 4 4
Financial asset available-for-sale
Debt securities 150 141
Equity securities 72 -19
Total 222 122
Total income from financial assets 429 473
Other assets 4 20
Fee and commission income, net 6 3
Life insurance, total 440 495
Holding
1-9/2010 1-9/2009
Financial assets
Derivative financial instruments 27 9
Loans and other receivables 21 1
Financial assets available-for-sale
Debt securities 7 13
Equity securities 1 61
Total 7 74
Other assets 2 9
Fee income, net 1 0
Holding, total 57 93
Elimination items between segments -1 25
Group, total 837 897
3 CLAIMS INCURRED
P&C insurance 1-9/2010 1-9/2009
Claims paid -1 990 -1 773
Reinsurers' share 101 87
Claims paid, net -1 889 -1 687
Change in provision for claims outstanding -120 -133
Reinsurers' share -9 -28
P&C Insurance total -2 017 -1 847
Life insurance 1-9/2010 1-9/2009
Claims paid -544 -413
Reinsurers' share 4 4
Claims paid, net -539 -409
Change in provision for claims outstanding -90 -57
Reinsurers' share 0 0
Life insurance, total -630 -466
Group, total -2 647 -2 314
4 STAFF COSTS
P&C insurance 1-9/2010 1-9/2009
Wages and salaries -250 -242
Granted cash-settled share options -7 -3
Pension costs -50 -56
Other social security costs -50 -46
P&C insurance, total -358 -347
Life insurance 1-9/2010 1-9/2009
Wages and salaries -18 -16
Granted cash-settled share options -1 -1
Pension costs -3 -3
Other social security costs -2 -1
Life insurance, total -25 -20
Holding 1-9/2010 1-9/2009
Wages and salaries -6 -6
Granted cash-settled share options -3 -1
Pension costs -1 -2
Other social security costs -1 0
Holding, total -10 -8
Group, total -393 -375
5 INTANGIBLE ASSETS
P&C insurance 09/2010 12/2009
Goodwill 553 506
Customer relations 1 6
Other intangible assets 12 8
P&C Insurance, total 566 521
Life insurance 09/2010 12/2009
Goodwill 153 153
Other intangible assets 12 14
Life insurance, total 165 167
Holding 09/2010 12/2009
Other intangible assets 0 0
Group, total 732 688
6 FINANCIAL ASSETS
P&C insurance
09/2010 12/2009
Derivative financial instruments (Note 7) 191 84
Financial assets designated as at fair value through p/l
Debt securities 127 136
Equity securities 2 27
Total 129 163
Loans and receivables
Loans 57 2
Deposits with ceding undertakings 1 1
Total 59 3
Financial assets available-for-sale
Debt securities 9 471 8 797
Equity securities 1 567 1 201
Total 11 038 9 998
P&C insurance, total 11 417 10 248
Life insurance
09/2010 12/2009
Derivative financial instruments (Note 7) 122 66
Financial assets designated as at fair value through p/l
Debt securities 52 46
Equity securities 12 4
Total 64 50
Loans and receivables
Loans 28 24
Deposits with ceding undertakings 1 2
Total 29 26
Financial assets available-for-sale
Debt securities 3 212 3 289
Equity securities *) 2 123 1 785
Total 5 334 5 074
Life insurance, total 5 549 5 216
*) of which investments in interest funds 59 157
Holding
09/2010 12/2009
Derivative financial instruments (Note 7) 37 12
Loans and receivables
Deposits 1 1
Financial assets available-for-sale
Debt securities 213 135
Equity securities 36 36
Total 250 172
Investments in subsidiaries 2 370 2 370
Holding, total 2 656 2 554
Elimination items between segments -2 563 -2 538
Group, total 17 060 15 479
7 DERIVATIVE
FINANCIAL
INSTRUMENTS
P&C insurance 09/2010 12/2009
Fair Fair
value Fair value value Fair value
Contract/ Contract/
notional notional
amount Assets Liabilities amount Assets Liabilities
Derivatives
held for
trading
Interest rate
derivatives 1 419 8 1 849 22 0
Foreign
exchange
derivatives 3 637 182 187 3 365 62 88
Equity
derivatives 2 0 - 1 - 0
Total 5 057 191 187 4 215 84 88
Derivatives
held for
hedging
Fair value
hedges 176 0 - 217 0 0
P&C
Insurance,
total 5 233 191 187 4 432 84 89
Life
insurance 09/2010 12/2009
Fair Fair
value Fair value value Fair value
Contract/ Contract/
notional notional
amount Assets Liabilities amount Assets Liabilities
Derivatives
held for
trading
Interest rate
derivatives 5 677 34 1 1 406 51 3
Foreign
exchange
derivatives 1 208 42 5 852 4 29
Equity
derivatives 0 0 0 - - -
Commodity
derivatives - - - 14 - 0
Total 6 885 76 5 2 272 54 32
Derivatives
held for
hedging
Cash flow
hedges 105 4 - 365 12 -
Fair value
hedges 477 42 - 227 - -
Total 582 46 - 591 12 -
Life
insurance,
total 7 467 122 5 2 863 66 32
Holding 09/2010 12/2009
Fair Fair
value Fair value value Fair value
Contract/ Contract/
notional notional
amount Assets Liabilities amount Assets Liabilities
Derivatives
held for
trading
Interest rate
derivatives 975 27 - 975 7 -
Exchange
derivatives 12 0 - 48 1 0
Equity
derivatives 60 9 12 42 4 7
Total 1 047 37 12 1 065 12 7
8 INVESTMENTS RELATED TO UNIT-LINKED INSURANCE
Life insurance
09/2010 12/2009
Financial assets as at fair value through p/l
Debt securities 545 365
Equity securities 2 231 1 923
Loans and receivables 95 70
Derivatives 16 8
Life insurance, total 2 887 2 366
9 LIABILITIES FOR INSURANCE AND INVESTMENT CONTRACTS
P&C insurance
09/2010 12/2009
Insurance contracts
Provision for unearned premiums 2 011 1 668
Provision for claims outstanding 7 414 6 915
P&C Insurance, total 9 425 8 583
Reinsurers' share
Provision for unearned premiums 88 49
Provision for claims outstanding 450 428
P&C Insurance, total 538 477
Life insurance
09/2010 12/2009
Insurance contracts
Liabilities for contracts with DPF
Provision for unearned premiums 2 489 2 513
Provision for claims outstanding 1 930 1 844
Total 4 419 4 358
Liabilities for contracts without DPF
Provision for unearned premiums 13 13
Provision for claims outstanding 0 0
Total 14 13
Total 4 433 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 2 503 2 528
Provision for claims outstanding 1 932 1 846
Total 4 435 4 374
Investment contracts
Liabilities for contracts with DPF
Provision for unearned premiums 23 57
Liabilities for insurance and investment contracts, total
Provision for unearned premiums 2 527 2 585
Provision for claims outstanding 1 932 1 846
Life insurance, total 4 459 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 13 884 13 014
10 LIABILITIES FROM UNIT-LINKED INSURANCE AND INVESTMENT CONTRACTS
Life insurance 09/2010 12/2009
Unit-linked insurance contracts 2 197 1 961
Unit-linked investment contracts 693 398
Life insurance, total 2 889 2 359
11 FINANCIAL LIABILITIES
P&C insurance 09/2010 12/2009
Derivative financial instruments (Note 7) 187 89
Subordinated debt securities
Subordinated loans 437 435
P&C insurance, total 624 524
Life insurance 09/2010 12/2009
Derivative financial instruments (Note 7) 5 32
Subordinated debt securities
Subordinated loans 100 100
Life insurance, total 105 132
Holding 09/2010 12/2009
Derivative financial instruments (Note 7) 12 7
Debt securities in issue
Commercial papers 580 466
Bonds 1 026 962
Total 1 605 1 429
Subordinated debt securities
Debentures - 37
Other
Pension loan 130 130
Other - 6
Total 130 136
Holding, total 1 747 1 609
Elimination items between segments -190 -166
Group, total 2 286 2 098
12 CONTINGENT LIABILITIES AND COMMITMENTS
P&C insurance
09/2010 12/2009
Off-balance sheet items
Guarantees 63 19
Other irrevocable commitments 46 69
Total 109 88
Assets pledged as
collateral for
liabilities or
contingent
liabilities
09/2010 09/2010 12/2009 12/2009
Assets pledged as Assets Liabilities/ Assets Liabilities/
collateral pledged commit- ments pledged commit- ments
Cash at balances
at central banks 9 7 9 7
Investments
- Investment
securities 132 108 124 101
Total 142 116 133 108
Non-cancellable
operating leases 09/2010 12/2009
Minimum lease
payments
not later than
one year 33 32
later than one
year and not
later than five
years 80 82
later than five
years 104 106
Total 216 220
Life insurance
09/2010 12/2009
Off-balance sheet
items
Fund commitments 361 357
09/2010 12/2009
Other commitments
Acquisition of
IT-software 1 0
Non-cancellable
operating leases 09/2010 12/2009
Minimum lease
payments
not later than
one year 1 2
later than one
year and not
later than five
years 3 7
later than five
years 1 1
Total 6 10
Holding
09/2010 12/2009
Off-balance sheet
items
Fund commitments 1 3
Assets pledged as
collateral for
liabilities or
contingent
liabilities
09/2010 09/2010 12/2009 12/2009
Assets pledged as Assets Liabilities/ Assets Liabilities/
collateral pledged commit- ments pledged commit- ments
Investments
- Mortgaged
collateral notes - - 15 6
Non-cancellable
operating leases 09/2010 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 1 2
Total 6 7
13 RESULT ANALYSIS OF P&C INSURANCE BUSINESS
1-9/2010 1-9/2009
Premiums earned 2 902 2 712
Claims incurred -2 203 -2 025
Operating expenses -495 -468
Other technical income and expenses 0 1
Allocated investment return transferred from the non-technical
account 136 156
Technical result 340 374
Investment result 363 306
Allocated investment return transferred to the technical
account -180 -200
Other income and expenses -5 -5
Operating result 519 476
14 SAMPO PLC'S INCOME STATEMENT AND BALANCE SHEET (FAS)
INCOME STATEMENT
1-9/2010 1-9/2009
Other operating income 12 10
Staff expenses -11 -9
Depreciation and impairment 0 0
Other operating expenses -9 -14
Operating profit -7 -13
Finance income and expenses 285 157
Profit before appropriations and income taxes 277 144
Income taxes 5 8
Profit for the financial period 283 152
BALANCE SHEET 09/2010 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 145 122
Shares in participating undertakings 5 304 5 168
Receivables from participating undertakings 20 -
Other shares and participations 41 41
Other receivables 48 14
Receivables 99 98
Cash and cash equivalents 82 412
TOTAL ASSETS 8 114 8 229
LIABILITIES
Equity
Share capital 98 98
Fair value reserve 0 -3
Invested unrestricted equity 1 527 1 527
Other reserves 273 273
Retained earnings 4 088 4 108
Profit for the year 283 531
Total equity 6 268 6 534
Liabilities
Long-term 1 156 1 129
Short-term 690 567
Total liabilities 1 846 1 696
TOTAL LIABILITIES 8 114 8 229
[HUG#1458371]
