Sampo - Annual Financial Report

Sampo Group's results January - December 2012

SAMPO PLC             STOCK EXCHANGE RELEASE   13 February 2013 at 9.30 am

Sampo Group's results January - December 2012

A RECORD YEAR IN MANY RESPECTS

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.

  * 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). Mark-to-market earnings per
    share were EUR 3.31 (1.22) and return on equity for the Group increased to
    19.5 per cent for 2012 (7.7).
  * 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.
  * Net asset value per share on 31 December 2012 was EUR 17.55 (14.05). Fair
    value reserve on the Group level amounted to EUR 749 million (355).
  * Profit before taxes in the P&C insurance segment increased 35 per cent to
    EUR 858 million (636). Combined ratio was exceptionally strong both for the
    full year 2012 and the fourth quarter, 89.3 per cent (92.0) and 88.8 per
    cent (90.2), respectively. Return on equity was 36.2 per cent (12.4) and
    fair value reserve increased to EUR 364 million (139).
  * Sampo's share of Nordea's net profit in 2012 rose to EUR 653 million (534).
    Nordea's RoE was 11.6 per cent (10.6) and core Tier 1 ratio (excluding
    transition rules) rose to 13.1 per cent (11.2). In segment reporting the
    share of Nordea's profit is included in the segment 'Holding'.
  * In life insurance profit before taxes amounted to EUR 136 million (137). The
    discount rate of 2.5 per cent will be used to discount the guaranteed rate
    portfolios in 2013 and 3.25 per cent in 2014. Premiums grew 15 per cent to
    EUR 977 million (849). Fair value reserve increased to EUR 391 million (214)
    as at 31 December 2012. Return on equity increased to 28.5 per cent (-11.7).


 KEY FIGURES                                Change,   Q4   Q4 Change,

 EURm                            2012  2011       % 2012 2011       %

 Profit before taxes            1,616 1,228      32  444  322      38

   P&C insurance                  858   636      35  210  171      23

   Associate (Nordea)             653   534      22  188  161      17

   Life insurance                 136   137      -1   38   30      25


   Holding (excl. Nordea)         -30   -77     -61   10  -40       -

 Profit for the period          1,404 1,038      35  401  279      44


                                             Change            Change

 Earnings per share, EUR         2.51  1.85    0.66 0.72 0.50    0.22


 EPS (incl. change in FVR), EUR  3.31  1.22    2.09 0.73 0.94   -0.21

 NAV per share, EUR             17.55 14.05    3.50    -    -       -

 Average number of staff (FTE)  6,823 6,874     -51    -    -       -

 Group solvency ratio, %        170.4 138.6    31.8    -    -       -

 RoE, %                          19.5   7.7    11.8    -    -       -



The figures in this report are not audited. Income statement items are compared
on a year-on-year basis and comparison figures for balance sheet items are from
31 December 2011 unless otherwise stated. The average EUR-SEK exchange rate used
for income statement items for full year 2012 is 8.7040 and the year-end
exchange rate used for balance sheet items is 8.5820.

Sampo follows the disclosure procedure enabled by the Finnish Financial
Supervisory Authority (Standard 5.2b) and hereby publishes its Financial
statement release attached as a PDF file to this stock exchange release. The
Financial statement release is also available at www.sampo.com/result.

Fourth Quarter 2012 in brief

Sampo Group's fourth quarter 2012 profit before taxes rose to EUR 444 million
(322). Earnings per share amounted to EUR 0.72 (0.50). Mark-to-market earnings
per share were EUR 0.73 (0.94). Net asset value per share decreased EUR 0.20 to
EUR 17.55 during the fourth quarter of 2012 as a result of the share price
development of the associated company Nordea.

In the P&C insurance operation the combined ratio was excellent at 88.8 per cent
(90.2). Profit before taxes increased to EUR 210 million (171). Share of the
profits of the associated company Topdanmark amounted to EUR 14 million (4).

Sampo's share of Nordea's fourth quarter 2012 net profit amounted to EUR 188
million (161). Nordea's Group core tier 1 capital ratio, excluding transition
rules, rose to 13.1 per cent at the end of the year 2012, a strengthening of
0.9 percentage points from the end of the previous quarter.

Profit before taxes for the life insurance operations rose to EUR 38 million
(30). Premiums written increased by 26 per cent from the corresponding quarter
in 2011 and amounted to EUR 299 million.

BUSINESS AREAS IN 2012

P&C insurance

Profit before taxes for P&C insurance increased by 35 per cent to EUR 858
million (636) in 2012 as a result of an excellent operating profitability during
the year. Net income from investments also improved significantly compared to
previous year, as the comparison period was burdened with impairment losses of
EUR 152 million related to equity assets. In 2012 the impairment losses amounted
to EUR 24 million.

Combined ratio for the year 2012 was 89.3 per cent (92.0), which is the best
ever full year combined ratio in If P&C's history. Also risk ratio improved
significantly in 2012 to 65.9 per cent (68.4). The excellent outcome was
supported by better than average weather conditions particularly during the
first half of the year. EUR 133 million (135) was released from technical
reserves relating to prior year claims.

Technical result increased to EUR 560 million (457) in 2012. Technical result
for Private business area increased to EUR 349 million (256) and for Commercial
to EUR 168 million (124). For business area Industrial technical result
decreased to EUR 28 million (53), as large claims in the business area ended up
worse than normalized mainly due to some significant single large claims in
Sweden and Denmark in the second quarter of 2012. For Baltic operations
technical result decreased to EUR 17 million (22). Insurance margin (technical
result in relation to net premiums earned) improved to 12.8 per cent (11.1).

Return on equity (RoE) increased to 36.2 per cent (12.4). Fair value reserve for
If P&C increased from the previous year to EUR 364 million (139) at the end of
December 2012.

 Large claims in total ended up EUR 50 million higher than average for the full
year 2012. Large claims development was favourable in business area Commercial
but EUR 59 million worse than normalized in the business area Industrial.
Discount rate for annuities (real rate) in Sweden increased to 0.18 percent at
the end of 2012 from 0.07 per cent at the end of September 2012, which had a
minor positive impact on the result.

All business areas had strong growth in 2012. Gross written premiums increased
6.4 per cent to EUR 4,698 million (4,414). Adjusted for currency, premiums
increased 3.5 per cent. In Private gross written premiums adjusted for currency
increased 3.3 per cent, in Commercial 2.6 per cent, in Industrial 3.7 per cent
and in Baltic operations by one per cent.

Cost ratio improved from the previous year to 23.3 per cent (23.5) and expense
ratio to 17.1 (17.3). Adjusted for currency the nominal costs increased 4.2 per
cent.

At the end of December 2012 the total investment assets of If P&C amounted to
EUR 11.7 billion (11.2). Net income from investments increased to EUR 359
million (298). Investment return mark-to-market for the year 2012 was 6.1 per
cent (1.8). Duration for interest bearing assets was 1.1 year (1.2) and average
maturity 2.3 years (2.5). Fixed income running yield as at 31 December 2012 was
3.6 per cent (4.1).

If P&C holds 22.9 per cent of the total number of shares and 25.4 per cent of
all shares excluding the shares held by Topdanmark itself. In Sampo Group's
2012 accounts the contribution of Topdanmark's net profit after the amortization
of EUR 8 million amounted to EUR 50 million.

Associated company Nordea Bank Ab

In Sampo Group's reporting Nordea is treated as an associated company and is
included in the segment Holding. On 31 December 2012 Sampo plc held 860,440,497
Nordea shares corresponding to a holding of 21.2 per cent. The average price
paid per share amounted to EUR 6.46 and the book value in the Group accounts was
EUR 7.77 per share. The closing price as at 31 December 2012 was EUR 7.24.

Nordea's Board of Directors proposes to the AGM 2013 a dividend of EUR 0.34 per
share (0.26), corresponding to a payout ratio of 44 per cent of net profit in
line with the dividend policy. If the AGM approves the Board's dividend
proposal, Sampo plc will receive a dividend of EUR 293 million from Nordea in
March 2013.

In 2012, Nordea delivered on its financial plan from 2011. Costs remained flat,
risk-weighted assets decreased and income increased to a record level. The
outcome of that plan was a rapid increase in capital and an all-time high
operating profit in the full year of 2012, and one of the best quarterly results
ever. Nordea improved its return on equity (ROE), which was 11.6 per cent in
2012, on a significantly larger capital base. The core tier 1 capital ratio was
above 13 per cent at the end of the year.

Total income increased in 2012 by 8 per cent compared to 2011. Operating profit
increased 16 per cent, due to higher total income, and stable costs. Risk-
adjusted profit increased by 20 per cent compared to the preceding year. The
effect from currency fluctuations contributed to an increase in income and
expenses of approx. 1.5 percentage points for 2012 compared to 2011.

Net loan loss provisions increased to EUR 933 million, corresponding to a loan
loss ratio of 28 basis points (23 basis points last year excluding provisions
related to the Danish deposit guarantee fund).

Net profit increased 19 per cent to EUR 3,126 million, due to higher income and
stable costs. Risk-adjusted profit increased 20 per cent compared to last year
to EUR 3,245 million.

The Group's core tier 1 capital ratio, excluding transition rules, was 13.1 per
cent at the end of the fourth quarter, a strengthening by 0.9 percentage points
from the end of the previous quarter. The total capital ratio excluding
transition rules increased 0.9 percentage points to 16.2 per cent.

Nordea has decided to establish a financial plan for increased return on equity
(ROE) and a new capital policy for the new regulatory environment. The plan is
set in order to shape the future of Nordea for sustainable profitability and
efficiency, closer customer relationships and a solid capital position and
follows on the new normal plan, which has further strengthened Nordea's platform
in 2012.

The financial plan has an ambitious financial target of 15 per cent ROE under
normal market interest rate conditions and with a core tier 1 capital ratio of
above 13 per cent. The capital policy states that, no later than 1 January
2015, the target for the core tier 1 capital ratio is to be above 13 per cent
and for the total capital ratio to be above 17 per cent. The core tier 1 capital
ratio is expected to stay above 13 per cent during 2013 and onwards, including
the effects from regulatory changes and model rollouts. The dividend policy
remains unchanged. Excess capital is expected to be distributed to shareholders.

Life insurance

Profit before taxes in life insurance operations remained on previous year's
level and amounted to EUR 136 million (137). The total comprehensive income for
the period reflecting the changes in market values of assets was EUR 286 million
(-115) boosted by good investment performance. Return on equity (RoE) rose to
28.5 per cent (-11.7).

Mandatum Life Group's investment assets, excluding the assets of EUR 3.8 billion
(3.1) covering unit-linked liabilities, amounted to EUR 5.5 billion (5.4) at
market values as at 31 December 2012. Mark-to-market return on investments in
2012 was 9.4 per cent (-1.4). At the end of December 2012 duration of fixed
income assets was 1.8 years (1.8) and average maturity 2.1 years (2.3). Fixed
income running yield was 4.8 per cent (5.4). The impairment losses in 2012
amounted to EUR 38 million.

 Mandatum Life Group's solvency margin clearly exceeded Solvency I requirements
and amounted to EUR 1,391 million (1,049) as at 31 December 2012. The solvency
ratio increased to 27.7 per cent (20.9).

Holding

The segment's profit before taxes amounted to EUR 623 million (457), of which
EUR 653 million (534) relates to Sampo's share of Nordea's 2012 profit.
Segment's profit without Nordea was EUR -30 million (-77). The improvement is
explained by lower finance costs and positive movement in derivative valuations.

Sampo Group's parent company Sampo plc received a total of EUR 768 million in
dividends from its subsidiaries and associated company Nordea Bank AB during
2012. If P&C paid in December 2012 a dividend of EUR 544 million (SEK 4,700
million) and Nordea on 3 April 2012 a dividend of EUR 224 million to Sampo plc.
Mandatum Life paid no dividend to the parent company in 2012.

Sampo plc's debt financing at the end of 2012 amounted to EUR 2,162 million and
interest bearing assets including bank accounts to EUR 1,048 million. During the
year the net debt decreased to EUR 1,113 million (1,208). At the end of 2012
gross debt to Sampo plc's equity was 32 per cent (35). The financial liabilities
in Sampo plc's balance sheet on 31 December 2012 consisted of issued senior
bonds and notes of EUR 1,710 million (1,677) and EUR 451 million (652) of issued
short-term CPs. The average interest on Sampo plc's debt on 31 December 2012 was
2.33 per cent (3.73).

OUTLOOK

Outlook for 2013

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.

The major risks and uncertainties to the Group in the near term

In its day-to-day business activities Sampo Group is exposed to various risks.
As a financial group the major sources of profitability and its variation for
Sampo Group are market, credit and insurance risks. Their contributions to the
Group's Economic Capital - used as an internal basis for capital needs -
currently represent normal levels of 40 per cent, 35 per cent and 13 per cent,
respectively.

Abrupt changes in the business environment or major unforeseen events may always
impact the profitability of Sampo Group. Adverse structural and macro economic
developments, such as current crisis in Europe, and slow growth are major
sources of uncertainty which may escalate in ways that can affect the Group's
activities unfavorably. This is, however, mitigated by the fact that Sampo Group
companies do not have direct exposures in sovereigns under pressure and have
small exposure to banking sector outside the Nordic region.

DIVIDEND PROPOSAL

According to Sampo plc's dividend policy, total annual dividends paid shall beat least 50 per cent of Group's net profit for the year (excluding extraordinary
items). In addition, share buy-backs can be used to complement the cash
dividend.

The parent company's distributable capital and reserves totaled EUR
6,694,652,272.86, of which profit for the financial year was EUR 737,122,584.60.

The Board proposes to the Annual General Meeting a dividend of EUR 1.35 per
share to company's 560,000,000 shares. The dividends to be paid are EUR
756,000,000.00 in total. Rest of funds are left in the equity capital.

The dividend will be paid to shareholders registered in the Register of
Shareholders held by Euroclear Finland Ltd as at the record date of 23 April
2013. The Board proposes that the dividend be paid on 30 April 2013.

No significant changes have taken place in the company's financial position
since the end of the financial year. The company's liquidity position is good
and in the view of the Board, the proposed distribution does not jeopardize the
company's ability to fulfill its obligations.

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
Essi Nikitin, IR Manager, tel. +358 10 516 0066
Maria Silander, Press Officer, tel. +358 10 516 0031

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. A recorded version will later be available at the same
address.

In addition A Supplementary Financial Information Package is available at
www.sampo.com/result.

Sampo Group's Annual Report 2012 will be published in week 11. At the same time
Sampo Group's Corporate Governance Statement and Remuneration Report will also
be published.

Sampo will publish the first quarter 2013 Interim Report on 8 May 2013.



Distribution:
NASDAQ OMX Helsinki
The principal media
Financial Supervisory Authority
www.sampo.com


[HUG#1677677]

Attachments:

Results for 2012.pdf