2008-02-12 08:30:00 CET
2008-02-12 08:30:08 CET
REGULATED INFORMATION
Sampo - Financial Statement Release
SAMPO GROUP´S RESULTS FOR 2007 AND DIVIDEND PROPOSAL
SAMPO PLC STOCK EXCHANGE RELEASE
12 February 2008, at 9.30 am
SAMPO GROUP´S RESULTS FOR 2007 AND DIVIDEND PROPOSAL
Good result despite turbulent market
Sampo Group's profit before taxes for 2007 rose to EUR 3,833 million (1,353).
The profit contains the sales gain of EUR 2,830 million from the Sampo Bank
transaction closed on 1 February 2007. Earnings per share amounted to EUR 6.18
(1.73) and, including the change in the fair value reserve, to EUR 5.89 per
share (1.89). Earnings per share from continuing operations were EUR 1.25
(1.27). Net asset value per share amounted to EUR 13.49 (9.21).
- The Board proposes to the AGM on 15 April 2008 a dividend of EUR 1.20 per
share.
- Combined ratio in P&C insurance was 90.6 per cent (89.9) and profit before
taxes amounted to EUR 534 million (730).
- Profit before taxes in life insurance amounted to EUR 342 million (295).
- Profit before taxes for the segment ‘Holding' amounted to EUR 95 million
(-27).
- Sampo Group had on 31 December 2007 approximately EUR 5.2 billion of excess
capital calculated as the difference between group equity and the economic
capital required to manage the insurance operations. In addition the Nordea
holding tied up approximately EUR 0.9 billion. Sampo plc had EUR 2 billion of
cash on its balance sheet.
- In earlier disclosures Sampo has promised to provide more detailed comments on
the use of the excess capital. Sampo's Board identifies two interesting
financial stocks presently - Sampo and Nordea. Sampo continues to invest its
excess cash into Nordea and to repurchase its own A shares subject to valuations
remaining favourable on both. If a situation arises, Sampo may also use leverage
to increase its holdings and to enhance returns.
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| KEY FIGURES | | | Change | Q4 | Q4 | Change |
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| EURm | 2007 | 2006 | % | 2007 | 2006 | % |
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| Profit before taxes *) | 3,833 | 1,353 | 183 | 160 | 258 | -38 |
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| P&C insurance | 534 | 730 | -27 | 104 | 227 | -54 |
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| Life insurance | 342 | 295 | 16 | 44 | 51 | -14 |
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| Holding | 95 | -27 | - | 12 | -16 | - |
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| Profit for the period | 3,573 | 991 | 261 | 113 | 241 | -53 |
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| Dividend per share, EUR | 1.20 | 1.20 | 0 | - | - | - |
| **) | | | | | | |
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| Earnings per share, EUR | 6.18 | 1.73 | 257 | 0.20 | 0.42 | -52 |
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| EPS (incl. change in | 5.89 | 1.89 | 212 | -0.13 | 0.68 | - |
| FVR) EUR | | | | | | |
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| EPS, continuing | 1.25 | 1.27 | -2 | 0.20 | 0.33 | -0.39 |
| operations EUR | | | | | | |
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| EPS, continuing | 0.95 | 1.44 | -34 | -0.13 | 0.59 | - |
| operations (incl. change | | | | | | |
| in FVR) EUR | | | | | | |
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| NAV per share, EUR *** ) | 13.49 | 9.21 | 46 | - | - | - |
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| Average number of staff | 6,846 | 11,657 | -41 | - | - | - |
| (FTE) | | | | | | |
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| Group solvency ratio, % | 774.6 | 202.7 | 282 | - | - | - |
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| RoE, % | 52.6 | 22.6 | 133 | - | - | - |
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*) The sales gain of EUR 2,830 million and Sampo Bank Group's January 2007
profit of EUR 29 million (pre-tax) are reported under ‘Discontinued operations'.
**) Year 2007 figure is the Board of Director's dividend proposal.
***) Less full deferred tax.
The figures in this report are unaudited.
Fourth quarter 2007 in brief
For the fourth quarter of 2007 Sampo Group reported a profit before taxes of EUR
160 million (258). Earnings per share were EUR 0.20 (0.42) and taking the change
in the fair value reserve into account earnings per share decreased to EUR -0.13
(0.68).
P&C insurance reported a profit before taxes of EUR 104 million (227) for the
fourth quarter. The insurance technical result remained good and the combined
ratio amounted to 89.8 per cent (89.9). Net investment income decreased to EUR
11 million (132) as a result of the weak equity markets.
Sampo Group's life insurance operations reported a profit before taxes of EUR 44
million (51) as realized gains were smaller than in the earlier quarters of
2007. Premiums written decreased to EUR 188 million (238) because of the
disappointing sales of endowment policies in Finland.
Segment ‘Holding' reported a profit before taxes of EUR 12 million in the fourth
quarter (-16).
Business areas
P&C insurance
If P&C Insurance Company 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 & Russia.
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| Results | | | Change | Q4 | Q4 | Change |
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| EUR m | 2007 | 2006 | % | 2007 | 2006 | % |
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| Insurance premiums | 3,840 | 3,773 | 2 | 785 | 763 | 3 |
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| Net income from | 211 | 390 | -46 | 11 | 139 | -92 |
| investments | | | | | | |
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| Other operating income | 29 | 23 | 26 | 10 | 7 | 43 |
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| Claims incurred | -2,54 | -2,480 | 2 | -634 | -599 | 6 |
| | 1 | | | | | |
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| Change in insurance | -43 | -8 | 438 | 184 | 189 | -3 |
| liabilities | | | | | | |
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| Staff costs | -441 | -431 | 2 | -107 | -121 | -12 |
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| Other expenses | -493 | -505 | -2 | -137 | -145 | -6 |
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| Finance costs | -29 | -33 | -12 | -8 | -7 | 14 |
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| Profit (loss) before | 534 | 730 | -27 | 104 | 227 | -54 |
| taxes | | | | | | |
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| Key figures | | | | | | |
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| Combined ratio, % | 90.6 | 89.9 | 1 | 89.8 | 89.9 | 0 |
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| Risk ratio, % | 66.9 | 65.9 | 2 | 65.4 | 62.8 | 4 |
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| Cost ratio, % | 23.7 | 24.0 | -1 | 24.3 | 27.1 | -10 |
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| Expense ratio, % | 17.2 | 17.4 | -1 | 17.2 | 19.7 | -13 |
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| Return on equity, % | 19.2 | 22.0 | -13 | - | - | - |
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| Average number of | 6,415 | 6,428 | 0 | - | - | - |
| staff (FTE) | | | | | | |
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If has continued its strategy to focus on underwriting and customer value. The
strategy paid off also in 2007 and If achieved all its objectives.
Profit before taxes for P&C insurance for the full year 2007 was EUR 534 million
(730). The decrease was due to a lower investment result that was caused by a
weakened development in the equity market, mainly during the latter half of
2007. The technical result improved compared to the previous year and ended at
EUR 565 million (554). Of the technical result, business area Private accounted
for 53 per cent, Commercial for 31 per cent, Industrial for 11 per cent and
Baltic & Russia for 3 per cent. Insurance margin (technical result in relation
to net premiums earned) was in line with the previous year, 14.8 per cent
(14.7).
Combined ratio for 2007 was significantly better than the long term target of
below 95 per cent and ended at 90.6 per cent (89.9). Combined ratios in business
area Industrial and in the Danish operation were negatively affected by the
significantly higher than average large claims outcome. Also the return on
equity (RoE) target of 17.5 per cent was clearly exceeded with a RoE of 19.2 per
cent (22.0).
Gross written premiums increased by 2 percent to EUR 4,085 million (4,019).
Compared to the previous year, premiums increased in all business areas except
in Commercial. The strongest growth was again seen in business area Baltic &
Russia.
Cost efficiency continued to improve and the cost ratio decreased to 23.7 per
cent (24.0). Total costs decreased to EUR 963 million (969) due to continued
focus on efficiency improvements and cost awareness throughout the organization.
Investments in new technology are expected to further increase efficiency as
well as improve If's customer service and communication with the customers.
Claims incurred increased to EUR 2,541 million (2,480) and risk ratio ended at
66.9 per cent (65.9). EUR 76 million (65) was released from the technical
reserves relating to prior year claims. Reserve ratio increased somewhat and was
170 percent (159) of net premiums written and 261 per cent (254) of claims paid
affected by both currency effects and a real increase of reserves mainly
corresponding to the increase in volumes.
Net income from investments decreased to EUR 211 million (390) and the
investment return was 2.6 per cent (4.3). The decrease was attributable to a
weak development of the equity markets. On December 31, 2007 total investment
assets amounted to EUR 9.9 billion (10.1) of which 89 per cent (89) was invested
in fixed income instruments, 10 per cent (10) in equity and 1 per cent (1) in
other assets. Duration for interest bearing assets was 2.2 years (3.0).
On 31 December 2007 solvency capital amounted to EUR 2,681 million (2,841).
Solvency ratio (solvency capital in relation to net premiums written) was 71 per
cent (74).
Several important distribution agreements were concluded during the year. Within
car-branded insurance If extended its cooperation with Nissan and General Motors
(SAAB and Opel) to a Nordic level. In Denmark, 2007 was a very active year and
at the end of the year If had eight car brand agreements there. In January 2008
an agreement was also signed with Suzuki. In 2007 If also signed an agreement
regarding tailor-made guarantee insurance for used cars sold through Blocket.se,
which is the biggest second-hand internet market in Sweden.
Life insurance
Sampo Life Group consists of Sampo Life, a wholly-owned subsidiary of Sampo plc
operating in Finland, and of its subsidiary Sampo Life Insurance Baltic SE. The
latter has the form of a European company headquartered in Estonia. It operates
in the other Baltic countries through branches. Sampo Life also had until
January 2008 a subsidiary in Sweden to complement the product offering of If
P&C.
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| Results | | | Change | Q4 | Q4 | Change |
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| EURm | 2007 | 2006 | % | 2007 | 2006 | % |
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| Premiums | 618 | 660 | -6 | 188 | 238 | -21 |
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| Net income from | 600 | 601 | 1 | 33 | 186 | -82 |
| investments | | | | | | |
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| Other operating | 0 | 1 | -100 | 0 | 0 | 0 |
| income | | | | | | |
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| Claims incurred | -653 | -550 | 19 | -155 | -153 | 1 |
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| Change in liabilities | -145 | -345 | -58 | -4 | -201 | -98 |
| for | | | | | | |
| inv. and ins. | | | | | | |
| contracts | | | | | | |
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| Staff costs | -20 | -19 | 5 | -5 | -4 | 25 |
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| Other operating | -50 | -45 | 11 | -12 | -15 | 20 |
| expenses | | | | | | |
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| Finance costs | -10 | -8 | 25 | -2 | -2 | 0 |
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| Profit before taxes | 342 | 295 | 16 | 44 | 51 | -14 |
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| Key figures | | | | | | |
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| Expense ratio, % | 101.0 | 101.9 | -1 | - | - | - |
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| Return on equity, % | 9.1 | 30.0 | -70 | - | - | - |
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| Average number of | 375 | 365 | 3 | - | - | - |
| staff (FTE) | | | | | | |
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Profit before taxes in life insurance for 2007 was EUR 342 million (295). The
reduction in the fair value reserve from the beginning of the year was EUR 174
million. Net investment income, excluding income on unit-linked contracts,
amounted to EUR 543 million (462). Net income from unit-linked investments was
EUR 57 million (139).
Return on equity (RoE) in life insurance fell below its target being 9.1 per
cent (30.0).
Excluding the assets of EUR 2.1 billion (1.8) covering unit-linked liabilities,
Sampo Life Group's investment assets amounted to EUR 5.7 billion (5.9) at market
values on 31 December 2007. Fixed income covered 73 per cent (66), equity 25 per
cent (31) and real estate 3 per cent (2) of the total assets. Equity
investments, which include direct equity holdings, equity funds and private
equity, have not been on such a low level since years 2002-2003.
Return on investments in 2007 was 5.0 per cent (9.7). The decrease in the return
was attributable to a weak development of the equity markets. At the end of
December 2007 the duration of fixed income assets was 1.9 years (2.6).
Sampo Life's expense ratio remained competitive at 101.0 per cent (101.9). The
expense ratio was somewhat burdened by costs caused by the separation of Sampo
Bank's and Sampo Life's administration and back-up operations. The ratio does
not, however, take into account all fees intended to cover the operating
expenses. If all fees are taken into account, the ratio decreases to 80.6 per
cent (81.3).
Sampo Life Group's solvency remained strong and amounted to EUR 846 million
(1,032) on 31 December 2007. Solvency ratio was 16.5 per cent (20.1). Total
technical reserves were EUR 6.7 billion (6.4), of which unit-linked reserves
accounted for 2.1 billion (1.8). The share of unit-linked reserves of total
technical reserves grew to 31 per cent (27).
Sampo Life Group's premium income on own account amounted to EUR 618 million
(660). Premiums in the main focus area, unit-linked insurance, declined to EUR
403 million (429). Endowment sales were affected by uncertain conditions in the
capital market and by reorganization of the main distribution channel Sampo Bank
during the fourth quarter of 2007. Sales through Sampo Bank may temporarily
suffer due to the integration of the Bank to Danske Bank's IT platform in early
2008. In addition, the figures of 2006 include an exceptional amount of large
single premium contracts. The share of unit-linked premiums remained at 65 per
cent of the total premiums (65).
Pure risk premiums grew both in private and in corporate segments and Sampo Life
reached its volume growth targets. Corporate pension policies developed
particularly well.
Baltic life insurance markets continued their strong growth. Sampo Life's
premiums from the Baltic companies grew by 67 per cent to EUR 64 million (38).
Sampo Life increased its market share in unit-linked policies in the Baltics to
19 per cent (15).
If Livförsäkring AB, Sampo Life's Swedish subsidiary focusing on risk policies,
increased its premium income to EUR 6 million (3). The company was sold to If
P&C Insurance Holding Ltd., a fully-owned subsidiary of Sampo plc, on 1 January
2008.
In Finland Sampo Life's overall market share measured by premium income was 19.8
per cent (20.4) and its market share in unit-linked premiums was 22.4 per cent
(25.2). Market share in pure risk insurance in Finland amounted to 14.6 per cent
(15.4). According to preliminary premium income statistics, Sampo Life is the
market leader in group pension policies and in corporate pension policies in
Finland.
Holding
Sampo plc manages investment assets of approximately EUR 5 billion and, in
addition, owns and controls its subsidiaries engaged in P&C and life insurance.
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| Results | | | Change | Q4 | Q4 | Change |
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| EURm | 2007 | 2006 | % | 2007 | 2006 | % |
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| Net investment income | 168 | 24 | 600 | 33 | 0 | - |
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| Other operating income | 8 | 96 | -92 | 3 | 17 | -82 |
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| Staff costs | -18 | -38 | -53 | -6 | -9 | -33 |
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| Other operating | -26 | -57 | -54 | -10 | -13 | -23 |
| expenses | | | | | | |
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| Finance costs | -38 | -52 | -27 | -9 | -11 | -18 |
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| Profit before taxes | 95 | -27 | - | 12 | -16 | - |
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| Average number of | 56 | 87 | -36 | - | | - |
| staff (FTE) | | | | | - | |
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The segment's profit before taxes amounted to EUR 95 million (-27). The fair
value reserve increased during 2007 by EUR 7 million to EUR 26 million (after
tax).
The assets on Sampo plc's balance sheet on 31 December 2007 comprise investment
assets of EUR 4.9 billion, of which fixed income instruments covered EUR 2.1
billion and equities EUR 2.7 billion.
Sampo plc's largest equity holding is Nordea, the market value of which was EUR
2.7 billion on 31 December 2007. Sampo plc held 238,283,129 Nordea shares and,
in addition, Sampo Life held 11,270,000 Nordea shares. Sampo Group's average
acquisition price of Nordea share was EUR 11.13 per share. Closing price for
Nordea on 28 December 2007 was EUR 11.41. Sampo plc's assets also include
holdings in subsidiaries for EUR 2.4 billion (3.2).
On 17 December 2007 Sampo plc applied for a permission from the Swedish
supervisory authorities to increase its holding above 10 per cent in Nordea. The
permission was received on 6 February 2008. Sampo Group's holding in Nordea
exceeded 10 per cent on the same day.
Balance sheet liabilities include a subordinated note with face value of EUR 600
million which can be paid back in April 2009 at the earliest.
Developments in the fourth quarter of 2007
Changes in Group structure
No changes to group structure were made during the fourth quarter of 2007. After
the closing of the Sampo Bank transaction Sampo Group comprises Sampo plc and
its wholly-owned subsidiaries If P&C insurance and Sampo Life. Sampo plc has in
addition investment assets of close to EUR 5 billion.
Shares and share capital
Based on the authorisation granted by the Annual General Meeting of 12 April
2007, Sampo plc's Board of Directors decided on 22 August 2007 to repurchase
Sampo's A shares with distributable capital and reserves. Maximum amount to be
repurchased is 28,000,000 A shares, corresponding to approximately 4.8 per cent
of the total number of shares. Repurchases shall decrease the distributable
capital and reserves. The shares shall be acquired through public trading on the
OMX Nordic Stock Exchange at market price prevailing at the time of repurchase.
During the fourth quarter of 2007 Sampo plc acquired 4,160,000 Sampo A shares.
Together with the 162,000 shares acquired in the third quarter of 2007, Sampo
plc held on 31 December 2007 4,322,000 of its own A shares corresponding to 0.75
per cent of all shares and 0.74 per cent related voting rights. EUR 81 million
was used to purchase the shares at an average price of EUR 18.62.
After the end of the reporting period Sampo has continued to purchase its own
shares. In January 2008 Sampo repurchased 2,115,000 A shares and on 12 February
holds 6,437,000 shares corresponding to 1.1 per cent of all shares and related
votes. All in all EUR 120 million has been used to repurchase the shares at an
average price of EUR 18.68.
On 31 December 2007 Sampo plc's share capital amounted to EUR 98 million (95),
and the number of A shares was 577,330,890. The total number of shares of the
company, including 1,200,000 B shares, was 578,530,890.
Staff
The number of full-time equivalent staff decreased in 2007 to 6,965 employees at
31 December 2007 from 11,763 employees a year earlier. The comparison figure
includes the staff of Sampo Bank Group, which was divested from Sampo Group on 1
February 2007.
Approximately 94 per cent of the staff worked in P&C insurance, 6 per cent in
life insurance and 1 per cent in the holding company. Geographically, 30 per
cent worked in Finland, 28 per cent in Sweden, 23 per cent in Norway and 19 per
cent in the Baltic countries, Denmark and other countries. The staff increased
in both P&C insurance and life insurance and decreased somewhat in the holding
company. The average number of employees during 2007 was 6,846 compared with
11,657 during 2006.
Management long-term incentive schemes
The payout on Sampo Group's long-term management incentive schemes is dependent
on Sampo's financial and share price performance. The incentive schemes 2004I -
2006II extend to 2010. The incentive schemes decreased staff costs in the fourth
quarter of 2007 by EUR 4 million (17) and on 31 December 2007 the total
provision for the schemes was EUR 20 million (53). The comparison figure
contains EUR 18 million of provisions in the banking and investment services
companies.
The ‘Sampo 2006' share-based incentive decreased staff costs by EUR 1 million in
the fourth quarter of 2007 and on 31 December 2007 the provision for the scheme
was EUR 5 million.
Ratings
All the main ratings for Sampo Group companies remained unchanged in the fourth
quarter of 2007.
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| Rated company | Moody's | Standard and Poor's |
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| | Rating | Outlook | Rating | Outlook |
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| Sampo plc | Baa1 | Positive | Not rated | - |
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| If P&C Insurance | A2 | Positive | A | Stable |
| (Sweden) | | | | |
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| If P&C Insurance Co. | A2 | Positive | A | Stable |
| (Finland) | | | | |
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Group solvency
As a result of the disposal of Sampo Bank plc and other banking and investment
service companies, the Group solvency for 2007 is based on adjusted solvency
calculations for insurance groups according to the Decree of the Ministry of
Social Affairs and Health (1106/2000), Chapter 7.1 §. The adjusted solvency is
determined on the basis of the Group financial statements as permitted by the
Insurance Supervisory Authority. In the comparative period, 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, entered into
force on 1 January 2005.
The Group's solvency ratio (own funds in relation to minimum requirements for
own funds) on 31 December 2007 was 774.6 per cent (202.7).
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| SAMPO GROUP SOLVENCY | 31.12.2007 | 31.12.2006 |
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| EURm | | |
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| Group capital | 7,733 | 5,190 |
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| Sectoral items | 855 | 3,134 |
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| Intangibles and other deductibles | -1,733 | -3,503 |
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| Group's own funds, total | 6,854 | 4,821 |
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| Minimum requirements for own | 885 | 2,378 |
| funds, total | | |
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| Group solvency | 5,969 | 2,443 |
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| Group solvency ratio | | |
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| (Own funds % of minimum | 774.6 | 202.7 |
| requirements) | | |
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In Sampo Group, and in its insurance subsidiaries, risks are measured and
aggregated internally using an economic capital framework, which quantifies the
amount of capital required to protect the economic solvency over a one year time
horizon at a confidence level equalling the historic bond defaults of AA-rated
issuers. The economic capital tied up in the Group's operations on 31 December
2007 was EUR 3,395 million compared to pro forma EUR 2,695 million at 31
December 2006 excluding Sampo Bank Group.
Events after the end of the reporting period
After the reporting period, on 1 January 2008 the ownership of If Livförsäkring
AB was transferred from Sampo Life to If P&C Insurance Holding Ltd. If
Livförsäkring AB offers life insurance products in Sweden, Norway and Denmark to
complement If P&C's other services.
To achieve a uniform accounting practice in all of Sampo Group's reporting
segments, equity and fixed income investments acquired as financial assets in
P&C insurance as of 1 January 2008 are treated as assets available for sale
(AFS). Assets are valued, as before, at market value in the balance sheet but
differing from earlier practice, the valuation changes are recognized directly
into the fair value reserve, which is part of the equity capital. The tax effect
will be taken into account in the fair value reserve. At the time of sale of an
asset, the valuation changes accumulated in equity capital and the sales gain or
loss are recognized in the profit.
Sampo plc received on 12 February 2008 a disclosure in accordance with Chapter 2
Section 9 of the Securities Market Act regarding Sampo plc's shares. According
to the disclosure Exista Trading ehf. has extended the agreement of 9 August
2007 regarding 100,000 A shares in Sampo plc until 11 August 2008. The
agreement, if consummated through delivery of the shares, will result in Exista
hf. and companies controlled by Exista hf. holding shares in Sampo plc in excess
of the flagging threshold of 20 per cent of the number of shares as set forth in
Chapter 2, Section 9 of the Securities Markets Act. According to the disclosure
Exista hf. and its group companies hold 19.98 per cent of the total number of
shares and 19.82 per cent of the voting rights in the Sampo plc.
Outlook for 2008
The negative turn that capital markets took in the latter half of 2007, has
steepened in the first weeks of 2008. The macro-economic outlook of early 2008
is much dimmer than it has been for several years. For more than a year Sampo's
insurance companies have been significant net sellers of equities, thus
documenting a very cautious approach to investments. We have positioned
ourselves to face an economic downturn by selling off more than 1.5 billion euros of equity holdings, keeping fixed-income durations short and avoiding
exotic investment instruments.
At the end of 2007 Sampo Life's and If's equity allocations were lower and
fixed-income duration shorter than in years. Unavoidably, our ability to produce
outstanding investment returns suffers in present turbulent market conditions
but our relative position vis-à-vis our main competitors is likely to improve.
Capital markets do not impose a threat to the operational profitability of Sampo
Group's insurance entities.
Sampo Group's result for 2008 will of course depend on investment returns, which
are likely to be more volatile than in the previous years.
The insurance technical development in P&C insurance is not expected to suffer
from the economic downturn but remain sound in 2008. If P&C is expected to reach
its long-term combined ratio target of below 95 per cent.
Changes in the market values of Sampo Life's investment assets are recorded in
the fair value reserve in the balance sheet rather than reflected in reported
profits. Sampo Life Group is not expected to achieve the exceptionally high
profits of 2006 and 2007 unless the capital market conditions improve
significantly. However, full-year 2008 results are expected to remain reasonably
good with average expected pre-tax profits of approximately 30 million euros per
quarter. Operationally the focus of Sampo Life Group continues to be on
unit-linked insurance and risk policies in Finland and the Baltics.
Sampo plc has investment assets of approximately to EUR 5 billion before the
dividend payments for 2007 and further share buybacks. At the end of January
2008 Sampo plc held almost 10 per cent of Nordea's outstanding shares
corresponding to over EUR 2.5 billion in market value. Remaining funds are
invested in money market instruments. Sampo plc's profit for the second quarter
of 2008 will therefore be considerably higher than for other quarters due to the
expected dividend payment from Nordea.
The biggest risk for the outlook is a further severe weakening of equity
markets. However, Sampo Group's equity capital on 31 December 2007 exceeded the
economic capital required to manage the operations by approximately EUR 4.5
billion and Sampo can therefore sustain all foreseeable equity market downturns.
A sudden rise in interest rates would in the short term cause some losses by
lowering the value of bond portfolios, but in the longer run it would enhance
fixed income yields.
Excess capital
On 31 December 2007 Sampo Group's equity amounted to almost EUR 8 billion
whereas the economic capital required for managing the Group's businesses and
investments was EUR 3.4 billion. Without taking subordinated loans in Sampo plc
into account, Sampo Group had approximately EUR 4.5 billion of excess capital.
This capital derives mainly from the sale of Sampo Bank Group and is to a large
extent situated in Sampo plc, the holding company. After the investments made
into Nordea shares, Sampo plc has more than EUR 2 billion of cash on its balance
sheet.
In earlier disclosures Sampo has promised to provide more detailed comments on
the use of the excess capital and excess cash. The Sampo Board of Directors has
earlier made a decision to invest the sales proceeds in shares of Northern
European financials or to keep them in cash. The Board identifies two
interesting financials stocks presently - Sampo and Nordea. Sampo continues to
invest its excess cash into Nordea and to repurchase its own A shares subject to
valuations remaining favourable on both. If a situation arises, Sampo may also
use leverage to increase its holdings and to enhance returns.
Should the valuations of other Northern European financial companies fall
significantly, Sampo is prepared to reconsider its stance.
Distribution policy
According to its dividend policy, Sampo plc aims to distribute an annual
dividend corresponding to a dividend yield of 4-6 per cent. Dividends cannot,
however, exceed reported profit after tax (excl. extraordinary items) for the
calendar year for which the dividend is paid. Share buy-backs can be used to
complement dividends.
Board's dividend proposal
Parent company's distributable capital and reserves totalled EUR
5,107,162,398.78 of which profit for the financial year was EUR
4,033,082,043.27.
The Board proposes to the Annual General Meeting a dividend of EUR 1.20 per
share. The maximum dividends to be paid are EUR 694,237,068. Dividends are not
paid to the Sampo A shares that Sampo plc hold on the record date. Rest of the
funds are left in the equity capital.
The dividend will be paid to shareholders registered in the Register of
Shareholders held by Finnish Central Securities Depository Ltd on the record
date 18 April 2008. The Board proposes that the dividend be paid on or about 25
April 2008.
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 the proposed distribution does not, in the Board's view, jeopardize the
company's ability to fulfil 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
Maria Silander, Press Officer, +358 10 516 0031
Essi Nikitin, IR Officer, +358 10 516 0066
Sampo will arrange a Finnish language press conference on the 2007 results at
the Auditorium of Unioninkatu 22, Helsinki, today at 1 p.m. Finnish time. An
English-language telephone conference for investors and analysts will be held at
4 p.m. Finnish time. Please call +44 (0) 20 7162 0025 (UK/European) or
+1 334 323 6201 (North American). Password: SAMPO.
The telephone conference can also be followed from a direct transmission on the
Internet at www.sampo.com/ir. A recorded version will later be available at the
same address.
In addition, a webcast of Group CEO and President Björn Wahlroos's review of
developments in 2007 is available at www.sampo.com/ir.
Sampo will publish the first quarter 2008 interim report on 7 May 2008.
DISTRIBUTION:
The Helsinki Stock Exchange
The principal media
www.sampo.com/ir
Financial Supervisory Authority
Insurance Supervisory Authority
--------------------------------------------------------------------------------
| GROUP FINANCIAL REVIEW | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| FINANCIAL HIGHLIGHTS | | 1-12/2007 | 1-12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP ¹) | | | |
--------------------------------------------------------------------------------
| Profit before taxes | EURm | 3,833 | 1,353 |
--------------------------------------------------------------------------------
| Return on equity (at fair value) | % | 52.6 | 22.6 |
--------------------------------------------------------------------------------
| Return on assets (at fair value) | % | 11.5 | 4.0 |
--------------------------------------------------------------------------------
| Equity/assets ratio | % | 30.5 | 10.9 |
--------------------------------------------------------------------------------
| Group solvency ²) | EURm | 5,969 | 2,443 |
--------------------------------------------------------------------------------
| Group solvency ratio | % | 774.6 | 202.7 |
--------------------------------------------------------------------------------
| Average number of staff 4) | | 6,846 | 11,657 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| PROPERTY & CASUALTY INSURANCE | | | |
--------------------------------------------------------------------------------
| Premiums written before reinsurers' | EURm | 4,085 | 4,019 |
| share | | | |
--------------------------------------------------------------------------------
| Premiums earned | EURm | 3,797 | 3,765 |
--------------------------------------------------------------------------------
| Profit before taxes | EURm | 534 | 730 |
--------------------------------------------------------------------------------
| Return on equity (at current value) | % | 19.2 | 22.0 |
--------------------------------------------------------------------------------
| Risk ratio ³) | % | 66.9 | 65.9 |
--------------------------------------------------------------------------------
| Cost ratio ³) | % | 23.7 | 24.0 |
--------------------------------------------------------------------------------
| Loss ratio ³) | % | 74.5 | 73.9 |
--------------------------------------------------------------------------------
| Loss ratio before unwinding of discount | % | 73.4 | 72.5 |
| ³) | | | |
--------------------------------------------------------------------------------
| Expense ratio ³) | % | 17.2 | 17.4 |
--------------------------------------------------------------------------------
| Combined ratio | % | 91.8 | 91.3 |
--------------------------------------------------------------------------------
| Combined ratio before unwinding of | % | 90.6 | 89.9 |
| discount | | | |
--------------------------------------------------------------------------------
| Average number of staff | | 6,415 | 6,428 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIFE INSURANCE | | | |
--------------------------------------------------------------------------------
| Premiums written before reinsurers' | EURm | 622 | 665 |
| share | | | |
--------------------------------------------------------------------------------
| Profit before taxes | EURm | 342 | 295 |
--------------------------------------------------------------------------------
| Return on equity (at current value) | % | 9.1 | 30.0 |
--------------------------------------------------------------------------------
| Expense ratio | % | 101.0 | 101.9 |
--------------------------------------------------------------------------------
| Average number of staff | | 375 | 365 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| HOLDING | | | |
--------------------------------------------------------------------------------
| Profit before taxes | EURm | 95 | -27 |
--------------------------------------------------------------------------------
| Average number of staff 4) | | 56 | 435 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| PER SHARE KEY FIGURES | | | |
--------------------------------------------------------------------------------
| Earnings per share | EUR | 6.18 | 1.73 |
--------------------------------------------------------------------------------
| Earnings per share, continuing | EUR | 1.25 | 1.27 |
| operations | | | |
--------------------------------------------------------------------------------
| Earnings per share, incl. change in | | | |
| fair value | | | |
--------------------------------------------------------------------------------
| reserve | EUR | 5.89 | 1.89 |
--------------------------------------------------------------------------------
| Earnings per share, incl. change in | | | |
| fair value | | | |
--------------------------------------------------------------------------------
| reserve, continuing operations | EUR | 0.95 | 1.44 |
--------------------------------------------------------------------------------
| Diluted earnings per share | EUR | - | 1.69 |
--------------------------------------------------------------------------------
| Diluted earnings per share, continuing | EUR | - | 1.24 |
| operations | | | |
--------------------------------------------------------------------------------
| Capital and reserves per share | EUR | 13.47 | 9.18 |
--------------------------------------------------------------------------------
| Net asset value per share | EUR | 13.49 | 9.21 |
--------------------------------------------------------------------------------
| Adjusted share price, high | EUR | 24.79 | 20.74 |
--------------------------------------------------------------------------------
| Adjusted share price, low | EUR | 17.95 | 13.58 |
--------------------------------------------------------------------------------
| Market capitalisation | EURm | 10,382 | 11,414 |
--------------------------------------------------------------------------------
¹) Sampo plc's sales gain (EURm 2,830) arising from the disposal of the share
stock of Sampo Bank plc to Danske Bank A/S is included in the Group key figures.
²) As a result of the disposal of Sampo Bank plc and other banking and
investment service companies, the Group solvency for 2007 is based on adjusted
solvency calculations for insurance groups according to the Decree of the
Ministry of Social Affairs and Health (1106/2000), Chapter 7.1 §. The adjusted
solvency is determined on the basis of the Group financial statements as
permitted by the Insurance Supervisory Authority. In the comparative period, the
Group solvency is calculated according to the consolidation method defined in
Chapter 3 of the Act on the Supervision of Financial and Insurance onglomerates,
entered into force on 1 Jan. 2005.
³) 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.
4) The comparative Group number includes the number for banking and investment
services (4,429). The comparison Holding number includes staff for Primasoft Oy
(348), fully consolidated in the financial statements for the year 2006.
In calculating the per share key figures, the number of shares used at the
balance sheet date was 574,208,890 and the average number of shares during the
period 577,802,206. The 4,322,000 treasury shares acquired by Sampo plc in the
reporting period have been deducted from both numbers of shares. In the average
number of shares, the 4,827,500 treasury shares cancelled at 13 Feb. 2007 have
also been taken into account.
In calculating the key figures, the tax corresponding to the result for the
accounting period has been taken into account. The valuation differences of
investment property and held-to-maturity debt securities have been taken into
account in return on assets, return on equity, equity/assets ratio and net asset
value per share. Additionally, the change in fair value reserve has been taken
into account in return on assets and return on equity. A deferred tax liability
has been deducted from the valuation differences.
The key figures for the insurance business have been calculated according to the
decree of the Ministry of Finance and the specifying instruction 11/002/2006 of
the Insurance Supervisory Authority.
--------------------------------------------------------------------------------
| CALCULATION OF KEY FIGURES | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity (fair values), % | |
--------------------------------------------------------------------------------
| + profit before taxes | |
--------------------------------------------------------------------------------
| ± change in fair value reserve | |
--------------------------------------------------------------------------------
| ± change in valuation differences on investments | |
--------------------------------------------------------------------------------
| - tax (incl. change in deferred tax relating to | x 100 % |
| valuation differences on investments) | |
--------------------------------------------------------------------------------
| + 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 | |
--------------------------------------------------------------------------------
| + interest and other financial charges | |
--------------------------------------------------------------------------------
| + calculated interest on technical provisions | |
--------------------------------------------------------------------------------
| ± change in fair value reserve | |
--------------------------------------------------------------------------------
| ± 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 | x 100 % |
| of deferred tax | |
--------------------------------------------------------------------------------
| + 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 | |
--------------------------------------------------------------------------------
| Profit for the financial period 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 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 | 10-12/ | 7-9/ | 4-6/ | 1-3/ | 10-12/ |
| | 2007 | 2007 | 2007 | 2007 | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Insurance premiums written | 974 | 887 | 1,046 | 1,552 | 1,001 |
--------------------------------------------------------------------------------
| Net income from investments | 75 | 217 | 360 | 322 | 335 |
--------------------------------------------------------------------------------
| Other operating income | 8 | 6 | 6 | 5 | 10 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Claims incurred | -789 | -781 | -769 | -855 | -752 |
--------------------------------------------------------------------------------
| Change in liabilities for | 180 | 193 | -84 | -477 | -12 |
| insurance and investment | | | | | |
| contracts | | | | | |
--------------------------------------------------------------------------------
| Staff costs | -117 | -120 | -116 | -126 | -133 |
--------------------------------------------------------------------------------
| Other operating expenses | -155 | -132 | -139 | -132 | -175 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance costs | -17 | -16 | -16 | -19 | -17 |
--------------------------------------------------------------------------------
| Share of associates' | 1 | 1 | 1 | 1 | 0 |
| profit/loss | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from continuing | 160 | 256 | 289 | 270 | 258 |
| operations before taxes | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Taxes | -46 | -65 | -75 | -68 | -75 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from continuing | 113 | 191 | 214 | 202 | 183 |
| operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from discontinued | 0 | 0 | 0 | 2,853 | 57 |
| operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period | 113 | 191 | 214 | 3,055 | 241 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | | | |
--------------------------------------------------------------------------------
| Equity holders of parent | 113 | 191 | 214 | 3,054 | 239 |
| company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0 | 0 | 0 | 0 | 2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EURm | Note | 1-12/2007 | 1-12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Insurance premiums written | 1 | 4,458 | 4,433 |
--------------------------------------------------------------------------------
| Net income from investments | 2 | 974 | 1,008 |
--------------------------------------------------------------------------------
| Other operating income | | 25 | 64 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Claims incurred | 3 | -3,195 | -3,030 |
--------------------------------------------------------------------------------
| Change in liabilities for insurance and | | -188 | -353 |
| investment contracts | | | |
--------------------------------------------------------------------------------
| Staff costs | 4 | -479 | -483 |
--------------------------------------------------------------------------------
| Other operating expenses | | -558 | -572 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance costs | | -67 | -85 |
--------------------------------------------------------------------------------
| Share of associates' profit/loss | | 3 | 1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from continuing operations | | 974 | 984 |
| before taxes | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Taxes | | -254 | -281 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from continuing operations | | 720 | 703 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from discontinued operations | | 2,853 | 288 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period | | 3,573 | 991 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | |
--------------------------------------------------------------------------------
| Equity holders of parent company | | 3,572 | 977 |
--------------------------------------------------------------------------------
| Minority interest | | 0 | 15 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earning per share (eur) | | | |
--------------------------------------------------------------------------------
| Basic, continuing operations | | 1.25 | 1.27 |
--------------------------------------------------------------------------------
| Basic, discontinued operations | | 4.94 | 0.47 |
--------------------------------------------------------------------------------
| Total | | 6.18 | 1.73 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Diluted, continuing operations | | - | 1.24 |
--------------------------------------------------------------------------------
| Diluted, discontinued operations | | - | 0.46 |
--------------------------------------------------------------------------------
| Total | | - | 1.69 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EURm | Note | 12/2007 | 12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | | 40 | 51 |
--------------------------------------------------------------------------------
| Investment property | | 158 | 170 |
--------------------------------------------------------------------------------
| Intangible assets | 5 | 718 | 782 |
--------------------------------------------------------------------------------
| Investments in associates | | 9 | 5 |
--------------------------------------------------------------------------------
| Financial assets | 6, 7 | 19,575 | 15,921 |
--------------------------------------------------------------------------------
| Investments related to unit-linked | 8 | 2,072 | 1,753 |
| insurance | | | |
--------------------------------------------------------------------------------
| Tax assets | | 89 | 149 |
--------------------------------------------------------------------------------
| Reinsurers' share of insurance | | 489 | 525 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Other assets | | 1,316 | 1,638 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | | 958 | 41 |
--------------------------------------------------------------------------------
| Non-current assets classified as held | | - | 26,585 |
| for sale | | | |
--------------------------------------------------------------------------------
| Total assets | | 25,424 | 47,620 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | | |
--------------------------------------------------------------------------------
| Liabilities for insurance and | 9 | 13,148 | 12,942 |
| investment contracts | | | |
--------------------------------------------------------------------------------
| Liabilities for unit-linked insurance | 10 | 2,071 | 1,752 |
| and investment contracts | | | |
--------------------------------------------------------------------------------
| Financial liabilities | 11, 12 | 1,102 | 1,395 |
--------------------------------------------------------------------------------
| Tax liabilities | | 562 | 607 |
--------------------------------------------------------------------------------
| Provisions | | 35 | 42 |
--------------------------------------------------------------------------------
| Employee benefits | | 118 | 109 |
--------------------------------------------------------------------------------
| Other liabilities | | 655 | 1,065 |
--------------------------------------------------------------------------------
| Liabilities directly associated with | | - | 24,520 |
| non-current assets classified as held | | | |
| for sale | | | |
--------------------------------------------------------------------------------
| Total liabilities | | 17,691 | 42,431 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | | | |
--------------------------------------------------------------------------------
| Share capital | | 98 | 95 |
--------------------------------------------------------------------------------
| Reserves | | 1,847 | 2,012 |
--------------------------------------------------------------------------------
| Retained earnings | | 5,788 | 3,061 |
--------------------------------------------------------------------------------
| Equity attributable to parent company's | | 7,733 | 5,168 |
| equityholders | | | |
--------------------------------------------------------------------------------
| Minority interest | | 0 | 21 |
--------------------------------------------------------------------------------
| Total equity | | 7,733 | 5,189 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities | | 25,424 | 47,620 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENTS | | | | | | | | | |
| OF CHANGES | | | | | | | | | |
| IN EQUITY, | | | | | | | | | |
| IFRS | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EURm | Shar | Shar | Lega | Fair | Retai | Non-c | Tota | Mino | Total |
| | e | e | l | valu | ned | urren | l | rity | |
| | capi | prem | rese | e | earni | t | | inte | |
| | tal | ium | rve | rese | ngs | asset | | rest | |
| | | acco | | rve | | s | | | |
| | | unt | | | | class | | | |
| | | | | | | ified | | | |
| | | | | | | as | | | |
| | | | | | | held | | | |
| | | | | | | for | | | |
| | | | | | | sale | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity at | 96 | 1,04 | 370 | 396 | 2,412 | - | 4,32 | 26 | 4,348 |
| 1 Jan. | | 8 | | | | | 2 | | |
| 2006 | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Items of | | | | -2 | | 2 | 0 | | 0 |
| equity of | | | | | | | | | |
| disposed | | | | | | | | | |
| operations | | | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | | | | | | | |
| hedges: | | | | | | | | | |
--------------------------------------------------------------------------------
| - | | | | | | 0 | 0 | | 0 |
| recognised | | | | | | | | | |
| in equity | | | | | | | | | |
| during the | | | | | | | | | |
| financial | | | | | | | | | |
| year | | | | | | | | | |
--------------------------------------------------------------------------------
| - | | | | | | -1 | -1 | | -1 |
| recognised | | | | | | | | | |
| in p/l | | | | | | | | | |
--------------------------------------------------------------------------------
| Financial | | | | | | | | | |
| assets | | | | | | | | | |
| available- | | | | | | | | | |
| for-sale | | | | | | | | | |
--------------------------------------------------------------------------------
| - change | | | | 249 | | 14 | 263 | | 263 |
| in fair | | | | | | | | | |
| value | | | | | | | | | |
--------------------------------------------------------------------------------
| - | | | | -155 | | -18 | -172 | | -172 |
| recognised | | | | | | | | | |
| in p/l | | | | | | | | | |
--------------------------------------------------------------------------------
| Exchange | | | | | 72 | | 72 | | 72 |
| rate | | | | | | | | | |
| translatio | | | | | | | | | |
| n | | | | | | | | | |
| difference | | | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | | | | | 977 | | 977 | 15 | 991 |
| the period | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | 92 | 1,049 | -2 | 1,13 | 15 | 1,153 |
| income and | | | | | | | 8 | | |
| expenses | | | | | | | | | |
| recognised | | | | | | | | | |
| for the | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Subscripti | 1 | 108 | | | | | 108 | | 108 |
| on for | | | | | | | | | |
| shares | | | | | | | | | |
| with | | | | | | | | | |
| options | | | | | | | | | |
--------------------------------------------------------------------------------
| Share-base | | | | | -1 | | -1 | | -1 |
| d payments | | | | | | | | | |
--------------------------------------------------------------------------------
| Acquisitio | | | | | -73 | | -73 | | -73 |
| n of | | | | | | | | | |
| treasury | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Cancellati | -1 | 1 | | | | | 0 | | 0 |
| on of | | | | | | | | | |
| treasury | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Recognitio | | | | | 13 | | 13 | | 13 |
| n of | | | | | | | | | |
| undrawn | | | | | | | | | |
| dividends | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | -339 | | -339 | -20 | -359 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity at | 96 | 1,15 | 370 | 488 | 3,061 | -2 | 5,16 | 21 | 5,189 |
| 31 Dec. | | 7 | | | | | 8 | | |
| 2006 | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity at | 95 | 1,15 | 370 | 486 | 3,061 | - | 5,16 | 21 | 5,189 |
| 1 Jan. | | 7 | | | | | 8 | | |
| 2007 | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Items of | | 0 | 0 | 3 | -3 | | -1 | -21 | -22 |
| equity of | | | | | | | | | |
| disposed | | | | | | | | | |
| operations | | | | | | | | | |
--------------------------------------------------------------------------------
| Financial | | | | | | | | | |
| assets | | | | | | | | | |
| available- | | | | | | | | | |
| for-sale | | | | | | | | | |
--------------------------------------------------------------------------------
| - change | | | | 5 | | | 5 | | 5 |
| in fair | | | | | | | | | |
| value | | | | | | | | | |
--------------------------------------------------------------------------------
| - | | | | -176 | | | -176 | | -176 |
| recognised | | | | | | | | | |
| in p/l | | | | | | | | | |
--------------------------------------------------------------------------------
| Exchange | | | | | -74 | | -74 | | -74 |
| rate | | | | | | | | | |
| translatio | | | | | | | | | |
| n | | | | | | | | | |
| difference | | | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | | | | | 3,572 | | 3,57 | 0 | 3,572 |
| period | | | | | | | 2 | | |
--------------------------------------------------------------------------------
| Total | | 0 | 0 | -169 | 3,495 | | 3,32 | 0 | 3,305 |
| income and | | | | | | | 6 | | |
| expenses | | | | | | | | | |
| recognised | | | | | | | | | |
| for the | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Subscripti | 3 | 4 | | | | | 6 | | 6 |
| on for | | | | | | | | | |
| shares | | | | | | | | | |
| with | | | | | | | | | |
| options | | | | | | | | | |
--------------------------------------------------------------------------------
| Share-base | | | | | 0 | | 0 | | 0 |
| d payments | | | | | | | | | |
--------------------------------------------------------------------------------
| Acquisitio | | | | | -81 | | -81 | | -81 |
| n of | | | | | | | | | |
| treasury | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Recognitio | | | | | 6 | | 6 | | 6 |
| n of | | | | | | | | | |
| undrawn | | | | | | | | | |
| dividends | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | -693 | | -693 | | -693 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity at | 98 | 1,16 | 370 | 317 | 5,788 | - | 7,73 | 0 | 7,733 |
| 31 Dec. | | 0 | | | | | 3 | | |
| 2007 | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF CASH FLOWS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 1-12/2007 | 1-12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalent at the beginning of | 2,016 | 1,787 |
| the period | | |
--------------------------------------------------------------------------------
| Cash flows from/used in operating activities | -222 | -1,417 |
--------------------------------------------------------------------------------
| Cash flows from/used in investing activities | 598 | -64 |
--------------------------------------------------------------------------------
| Cash flows from/used in financing activities | -1,421 | 1,710 |
--------------------------------------------------------------------------------
| Paid dividends | -693 | -359 |
--------------------------------------------------------------------------------
| Subscription for shares with options | 6 | 108 |
--------------------------------------------------------------------------------
| Acquisition of own shares | -81 | -73 |
--------------------------------------------------------------------------------
| Increase of liabilities | 742 | 13,226 |
--------------------------------------------------------------------------------
| Decrease of liabilities | -1,395 | -11,193 |
--------------------------------------------------------------------------------
| Cash and cash equivalent at the end of the | 971 | 2,016 |
| period | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The net cash flows of discontinued operations | 1-12/2007 | 1-12/2006 |
--------------------------------------------------------------------------------
| Cash flows used in operating activities | -712 | -1,693 |
--------------------------------------------------------------------------------
| Cash flows from/used in investing activities | 3,224 | -46 |
--------------------------------------------------------------------------------
| Cash flows from/used in financing activities | -299 | 2,160 |
--------------------------------------------------------------------------------
| Net cash flows total | 2,214 | 421 |
--------------------------------------------------------------------------------
In the statements, the net cash derived from the disposal of Banking and
investment services, is included in the cash flows from investing activities.
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 2006. Sampo has in 2007 adopted the following interpretations:
IFRIC 8 Scope of IFRS 2, IFRIC 9 Reassesment of embedded derivatives, IFRIC 10
Interim Financial Reporting and impairment, and IFRIC 11 IFRS 2 - Group and
treasury share transactions.
The adoption of interpretations has not had an effect on the Group consolidated
financial statements, per share key figures or accounting policies.
The financial statements for 2006 are available on Sampo's website at the
address www.sampo.com/ir .
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME | | | | | |
| STATEMENT BY SEGMENT FOR | | | | | |
| TWELVE MONTHS ENDED 31 | | | | | |
| DECEMBER 2007 | | | | | |
--------------------------------------------------------------------------------
| EURm | P&C | Life | Holding | Elimina- | Group |
| | insuranc | insuran | | tion | |
| | e | ce | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Insurance premius | 3,840 | 618 | - | - | 4,458 |
| written | | | | | |
--------------------------------------------------------------------------------
| Net income from | 211 | 600 | 168 | -5 | 974 |
| investments | | | | | |
--------------------------------------------------------------------------------
| Other operating income | 29 | 0 | 8 | -13 | 25 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Claims incurred | -2,541 | -653 | - | - | -3,195 |
--------------------------------------------------------------------------------
| Change in liabilities | -43 | -145 | - | - | -188 |
| for insurance and | | | | | |
| investment contracts | | | | | |
--------------------------------------------------------------------------------
| Staff costs | -441 | -20 | -18 | - | -479 |
--------------------------------------------------------------------------------
| Other operating expenses | -493 | -50 | -26 | 11 | -558 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance costs | -29 | -10 | -38 | 10 | -67 |
--------------------------------------------------------------------------------
| Share of associates' | 1 | 1 | 1 | - | 3 |
| profit/loss | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from continuing | 534 | 342 | 95 | 3 | 974 |
| operations before taxes | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Taxes | | | | | -254 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from continuing | | | | | 720 |
| operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from discontinued | | | | | 2,853 |
| operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period | | | | | 3,573 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | | | |
--------------------------------------------------------------------------------
| Equity holders of parent | | | | | 3,572 |
| company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | | | | | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME | | | | | |
| STATEMENT BY SEGMENT FOR | | | | | |
| TWELVE MONTHS ENDED 31 | | | | | |
| DECEMBER 2006 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EURm | P&C | Life | Holding | Elimina- | Group |
| | insuranc | insuran | | tion | |
| | e | ce | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Insurance premius | 3,773 | 660 | - | - | 4,433 |
| written | | | | | |
--------------------------------------------------------------------------------
| Net income from | 390 | 601 | 24 | -7 | 1,008 |
| investments | | | | | |
--------------------------------------------------------------------------------
| Other operating income | 23 | 1 | 96 | -56 | 64 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Claims incurred | -2,480 | -550 | - | - | -3,030 |
--------------------------------------------------------------------------------
| Change in liabilities | -8 | -345 | - | - | -353 |
| for insurance and | | | | | |
| investment contracts | | | | | |
--------------------------------------------------------------------------------
| Staff costs | -431 | -19 | -38 | 5 | -483 |
--------------------------------------------------------------------------------
| Other operating expenses | -505 | -45 | -57 | 35 | -572 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance costs | -33 | -8 | -52 | 9 | -85 |
--------------------------------------------------------------------------------
| Share of associates' | 0 | 1 | 0 | - | 1 |
| profit/loss | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from continuing | 730 | 295 | -27 | -13 | 984 |
| operations before taxes | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Taxes | | | | | -281 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from continuing | | | | | 703 |
| operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from discontinued | | | | | 275 |
| operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Intra-segment | | | | | 13 |
| elimination items | | | | | |
| attributable to | | | | | |
| discontinued operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period | | | | | 991 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | | | |
--------------------------------------------------------------------------------
| Equity holders of parent | | | | | 977 |
| company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | | | | | 15 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE | | | | | |
| SHEET BY SEGMENT AT 31 | | | | | |
| DECEMBER 2007 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EURm | P&C | Life | Holding | Elimina- | Group |
| | insuran | insuranc | | tion | |
| | ce | e | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets | | | | | |
--------------------------------------------------------------------------------
| Property, plant and | 29 | 5 | 6 | - | 40 |
| equipment | | | | | |
--------------------------------------------------------------------------------
| Investment property | 41 | 105 | 12 | - | 158 |
--------------------------------------------------------------------------------
| Intangible assets | 554 | 164 | 0 | - | 718 |
--------------------------------------------------------------------------------
| Investments in associates | 4 | 2 | 3 | - | 9 |
--------------------------------------------------------------------------------
| Financial assets | 9,467 | 5,456 | 7,151 | -2,499 | 19,575 |
--------------------------------------------------------------------------------
| Investments related to | - | 2,072 | - | - | 2,072 |
| unit-linked insurance | | | | | |
--------------------------------------------------------------------------------
| Tax assets | 84 | 0 | 5 | 1 | 89 |
--------------------------------------------------------------------------------
| Reinsurers' share of | 484 | 5 | - | - | 489 |
| insurance liabilities | | | | | |
--------------------------------------------------------------------------------
| Other assets | 1,224 | 66 | 54 | -29 | 1,316 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 637 | 93 | 229 | - | 958 |
--------------------------------------------------------------------------------
| Total assets | 12,524 | 7,968 | 7,458 | -2,527 | 25,424 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | | | | |
--------------------------------------------------------------------------------
| Liabilities for insurance | 8,527 | 4,621 | - | - | 13,148 |
| and investment contracts | | | | | |
--------------------------------------------------------------------------------
| Liabilities for | - | 2,071 | - | - | 2,071 |
| unit-linked insurance and | | | | | |
| investment contracts | | | | | |
--------------------------------------------------------------------------------
| Financial liabilities | 530 | 101 | 596 | -125 | 1,102 |
--------------------------------------------------------------------------------
| Tax liabilities | 391 | 155 | 16 | - | 562 |
--------------------------------------------------------------------------------
| Provisions | 35 | - | - | - | 35 |
--------------------------------------------------------------------------------
| Employee benefits | 118 | - | - | - | 118 |
--------------------------------------------------------------------------------
| Other liabilities | 558 | 46 | 79 | -29 | 655 |
--------------------------------------------------------------------------------
| Total liabilities | 10,159 | 6,994 | 690 | -153 | 17,691 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | | | | | |
--------------------------------------------------------------------------------
| Share capital | | | | | 98 |
--------------------------------------------------------------------------------
| Reserves | | | | | 1,847 |
--------------------------------------------------------------------------------
| Retained earnings | | | | | 5,788 |
--------------------------------------------------------------------------------
| Equity attributable to | | | | | 7,733 |
| parent company's | | | | | |
| equityholders | | | | | |
--------------------------------------------------------------------------------
| Minority interest | | | | | 0 |
--------------------------------------------------------------------------------
| Total equity | | | | | 7,733 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and | | | | | 25,424 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE | | | | | |
| SHEET BY SEGMENT AT 31 | | | | | |
| DECEMBER 2006 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EURm | P&C | Life | Holding | Elimina- | Group |
| | insuran | insuranc | | tion | |
| | ce | e | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets | | | | | |
--------------------------------------------------------------------------------
| Property, plant and | 28 | 5 | 18 | - | 51 |
| equipment | | | | | |
--------------------------------------------------------------------------------
| Investment property | 41 | 110 | 19 | - | 170 |
--------------------------------------------------------------------------------
| Intangible assets | 599 | 159 | 23 | - | 782 |
--------------------------------------------------------------------------------
| Investments in associates | 4 | 1 | 0 | - | 5 |
--------------------------------------------------------------------------------
| Financial assets | 9,821 | 5,657 | 4,043 | -3,598 | 15,921 |
--------------------------------------------------------------------------------
| Investments related to | - | 1,753 | - | - | 1,753 |
| unit-linked insurance | | | | | |
--------------------------------------------------------------------------------
| Tax assets | 113 | 13 | 22 | 1 | 149 |
--------------------------------------------------------------------------------
| Reinsurers' share of | 521 | 4 | - | - | 525 |
| insurance liabilities | | | | | |
--------------------------------------------------------------------------------
| Other assets | 1,475 | 121 | 78 | -36 | 1,638 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 230 | 58 | 336 | -582 | 41 |
--------------------------------------------------------------------------------
| Non-current assets | - | - | - | - | 26,585 |
| classified as held for | | | | | |
| sale | | | | | |
--------------------------------------------------------------------------------
| Total assets | 12,831 | 7,882 | 4,538 | -4,216 | 47,620 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | | | | |
--------------------------------------------------------------------------------
| Liabilities for insurance | 8,247 | 4,695 | - | - | 12,942 |
| and investment contracts | | | | | |
--------------------------------------------------------------------------------
| Liabilities for | - | 1,752 | - | - | 1,752 |
| unit-linked insurance and | | | | | |
| investment contracts | | | | | |
--------------------------------------------------------------------------------
| Financial liabilities | 499 | 112 | 930 | -146 | 1,395 |
--------------------------------------------------------------------------------
| Tax liabilities | 407 | 189 | 11 | - | 607 |
--------------------------------------------------------------------------------
| Provisions | 42 | - | - | - | 42 |
--------------------------------------------------------------------------------
| Employee benefits | 109 | - | - | - | 109 |
--------------------------------------------------------------------------------
| Other liabilities | 961 | 39 | 98 | -32 | 1,065 |
--------------------------------------------------------------------------------
| Liabilities directly | - | - | - | - | 24,520 |
| associated with | | | | | |
| non-current assets | | | | | |
| classified as held for | | | | | |
| sale | | | | | |
--------------------------------------------------------------------------------
| Total liabilities | 10,264 | 6,787 | 1,039 | -179 | 42,431 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | | | | | |
--------------------------------------------------------------------------------
| Share capital | | | | | 95 |
--------------------------------------------------------------------------------
| Reserves | | | | | 2,012 |
--------------------------------------------------------------------------------
| Retained earnings | | | | | 3,061 |
--------------------------------------------------------------------------------
| Equity attributable to | | | | | 5,168 |
| parent company's | | | | | |
| equityholders | | | | | |
--------------------------------------------------------------------------------
| Minority interest | | | | | 21 |
--------------------------------------------------------------------------------
| Total equity | | | | | 5,189 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and | | | | | 47,620 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER NOTES | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1 INSURANCE PREMIUMS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | | |
--------------------------------------------------------------------------------
| | 1-12/2007 | 1-12/2006 |
--------------------------------------------------------------------------------
| Premiums from insurance contracts | | |
--------------------------------------------------------------------------------
| Premiums written, direct insurance | 4,000 | 3,938 |
--------------------------------------------------------------------------------
| Premiums written, assumed reinsurance | 85 | 81 |
--------------------------------------------------------------------------------
| Premiums written, gross | 4,085 | 4,019 |
--------------------------------------------------------------------------------
| Ceded reinsurance premiums written | -245 | -246 |
--------------------------------------------------------------------------------
| Premiums written, net | 3,840 | 3,773 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in unearned premium provision | -43 | -16 |
--------------------------------------------------------------------------------
| Reinsurers' share | 0 | 8 |
--------------------------------------------------------------------------------
| Insurance premiums earned, net | 3,797 | 3,765 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | | |
--------------------------------------------------------------------------------
| | 1-12/2007 | 1-12/2006 |
--------------------------------------------------------------------------------
| Premiums from insurance contracts | | |
--------------------------------------------------------------------------------
| Premiums from contracts with discretionary | 211 | 223 |
| participation feature | | |
--------------------------------------------------------------------------------
| Premiums from unit-linked contracts | 388 | 384 |
--------------------------------------------------------------------------------
| Premiums from other contracts | 7 | 4 |
--------------------------------------------------------------------------------
| Insurance contracts, total | 607 | 611 |
--------------------------------------------------------------------------------
| Assumed reinsurance | 2 | 3 |
--------------------------------------------------------------------------------
| Premiums from investment contracts | | |
--------------------------------------------------------------------------------
| Premiums from contracts with discretionary | 1 | 6 |
| participation feature | | |
--------------------------------------------------------------------------------
| Premiums from unit-linked contracts | 15 | 45 |
--------------------------------------------------------------------------------
| Investment contracts, total | 15 | 51 |
--------------------------------------------------------------------------------
| Reinsurers' shares | -6 | -5 |
--------------------------------------------------------------------------------
| Premiums written, total | 618 | 660 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Single and regular premiums from direct | | |
| insurance | | |
--------------------------------------------------------------------------------
| Regular premiums, insurance contracts | 404 | 395 |
--------------------------------------------------------------------------------
| Single premiums, insurance contracts | 202 | 216 |
--------------------------------------------------------------------------------
| Single premiums, investment contracts | 15 | 51 |
--------------------------------------------------------------------------------
| Total | 622 | 662 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | 4,458 | 4,433 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 2 NET INCOME FROM INVESTMENTS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C Insurance | | |
--------------------------------------------------------------------------------
| | 1-12/2007 | 1-12/2006 |
--------------------------------------------------------------------------------
| Financial assets | | |
--------------------------------------------------------------------------------
| Derivative financial instruments | 35 | 20 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial assets designated as at fair value | | |
| through p/l | | |
--------------------------------------------------------------------------------
| Debt securities | 281 | 213 |
--------------------------------------------------------------------------------
| Equity securities | -70 | 208 |
--------------------------------------------------------------------------------
| Total | 210 | 421 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Loans and receivables | 28 | 12 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total financial assets | 273 | 453 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income from other assets | 5 | 1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fee and commission expense | -10 | -8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Expense on other than financial liabilities | -1 | -2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Effect of discounting annuities | -56 | -54 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance, total | 211 | 390 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | | |
--------------------------------------------------------------------------------
| | 1-12/2007 | 1-12/2006 |
--------------------------------------------------------------------------------
| Financial assets | | |
--------------------------------------------------------------------------------
| Derivative financial instruments | 45 | 20 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial assets designated as at fair value | | |
| through p/l | | |
--------------------------------------------------------------------------------
| Debt securities | 0 | 5 |
--------------------------------------------------------------------------------
| Equity securities | 0 | 0 |
--------------------------------------------------------------------------------
| Total | 0 | 5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investments related to unit-linked contracts | | |
--------------------------------------------------------------------------------
| Debt securities | -4 | 1 |
--------------------------------------------------------------------------------
| Equity securities | 61 | 138 |
--------------------------------------------------------------------------------
| Total | 57 | 139 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investment securities held-to-maturity | | |
--------------------------------------------------------------------------------
| Debt securities | 1 | 1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Loans and receivables | 2 | 3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial asset available-for-sale | | |
--------------------------------------------------------------------------------
| Debt securities | 116 | 97 |
--------------------------------------------------------------------------------
| Equity securities | 361 | 312 |
--------------------------------------------------------------------------------
| Total | 477 | 409 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total income from financial assets | 583 | 578 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other assets | 5 | 13 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fee and commission income, net | 12 | 10 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance, total | 600 | 601 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding | | |
--------------------------------------------------------------------------------
| | 1-12/2007 | 1-12/2006 |
--------------------------------------------------------------------------------
| Financial assets | | |
--------------------------------------------------------------------------------
| Derivative financial instruments | 2 | -5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Loans and other receivables | 3 | 10 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial assets available-for-sale | | |
--------------------------------------------------------------------------------
| Debt securities | 123 | 8 |
--------------------------------------------------------------------------------
| Equity securities | 42 | 6 |
--------------------------------------------------------------------------------
| Total | 165 | 13 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other assets | -2 | 6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding, total | 168 | 24 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Elimination items between segments | -5 | -7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | 974 | 1,008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3 CLAIMS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | 1-12/2007 | 1-12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Claims paid | -2,332 | -2,262 |
--------------------------------------------------------------------------------
| Reinsurers' share | 134 | 149 |
--------------------------------------------------------------------------------
| Claims paid, net | -2,198 | -2,112 |
--------------------------------------------------------------------------------
| Change in provision for claims outstanding | -328 | -345 |
--------------------------------------------------------------------------------
| Reinsurers' share | -15 | -23 |
--------------------------------------------------------------------------------
| Claims incurred, net | -2,541 | -2,480 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | 1-12/2007 | 1-12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Claims paid | -559 | -452 |
--------------------------------------------------------------------------------
| Reinsurers' share | 5 | 5 |
--------------------------------------------------------------------------------
| Claims paid, net | -554 | -448 |
--------------------------------------------------------------------------------
| Change in provision for claims outstanding | -100 | -101 |
--------------------------------------------------------------------------------
| Reinsurers' share | 0 | -1 |
--------------------------------------------------------------------------------
| Claims incurred, net | -653 | -550 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | -3,195 | -3,030 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4 STAFF COSTS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | 1-12/2007 | 1-12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Wages and salaries | -311 | -290 |
--------------------------------------------------------------------------------
| Granted equity-settled share options | -1 | -1 |
--------------------------------------------------------------------------------
| Granted cash-settled share options | -1 | -12 |
--------------------------------------------------------------------------------
| Pension costs | -67 | -71 |
--------------------------------------------------------------------------------
| Other social security costs | -62 | -57 |
--------------------------------------------------------------------------------
| P&C insurance, total | -441 | -431 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | 1-12/2007 | 1-12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Wages and salaries | -16 | -14 |
--------------------------------------------------------------------------------
| Granted equity-settled share options | 0 | 0 |
--------------------------------------------------------------------------------
| Granted cash-settled share options | 0 | -1 |
--------------------------------------------------------------------------------
| Pension costs | -2 | -2 |
--------------------------------------------------------------------------------
| Other social security costs | -2 | -2 |
--------------------------------------------------------------------------------
| Life insurance, total | -20 | -19 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding *) | 1-12/2007 | 1-12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Wages and salaries | -7 | -29 |
--------------------------------------------------------------------------------
| Granted equity-settled share options | -5 | -1 |
--------------------------------------------------------------------------------
| Granted cash-settled share options | 0 | -2 |
--------------------------------------------------------------------------------
| Pension costs | -6 | -5 |
--------------------------------------------------------------------------------
| Other social security costs | -1 | -2 |
--------------------------------------------------------------------------------
| Holding, total | -18 | -38 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Elimination items between segments | - | 5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | -479 | -483 |
--------------------------------------------------------------------------------
*) Comparison year includes also staff costs for Primasoft Oy, fully
consolidated in 2006.
--------------------------------------------------------------------------------
| 5 INTANGIBLE ASSETS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | 12/2007 | 12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Goodwill | 530 | 557 |
--------------------------------------------------------------------------------
| Customer relations | 21 | 29 |
--------------------------------------------------------------------------------
| Other intangible assets | 3 | 13 |
--------------------------------------------------------------------------------
| Total | 554 | 599 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | 12/2007 | 12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Goodwill | 153 | 153 |
--------------------------------------------------------------------------------
| Other intangible assets | 11 | 6 |
--------------------------------------------------------------------------------
| Total | 164 | 159 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding | 12/2007 | 12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other intangible assets | 0 | 23 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | 718 | 782 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 6 FINANCIAL ASSETS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | | |
--------------------------------------------------------------------------------
| | 12/2007 | 12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative financial instruments (Note 7) | 182 | 87 |
--------------------------------------------------------------------------------
| Financial assets designated as at fair value | | |
| through p/l | | |
--------------------------------------------------------------------------------
| Debt securities | 8,272 | 8,690 |
--------------------------------------------------------------------------------
| Equity securities | 1,011 | 1,041 |
--------------------------------------------------------------------------------
| Total | 9,283 | 9,732 |
--------------------------------------------------------------------------------
| Loans and receivables | | |
--------------------------------------------------------------------------------
| Deposits with ceding undertakings | 2 | 2 |
--------------------------------------------------------------------------------
| P&C insurance, total | 9,467 | 9,821 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | | |
--------------------------------------------------------------------------------
| | 12/2007 | 12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative financial instruments (Note 7) | 10 | 16 |
--------------------------------------------------------------------------------
| Financial assets designated as at fair value | | |
| through p/l | | |
--------------------------------------------------------------------------------
| Debt securities | 42 | 70 |
--------------------------------------------------------------------------------
| Equity securities | 5 | 5 |
--------------------------------------------------------------------------------
| Total | 47 | 75 |
--------------------------------------------------------------------------------
| Investments held-to-maturity | | |
--------------------------------------------------------------------------------
| Debt securities | 8 | 10 |
--------------------------------------------------------------------------------
| Loans and receivables | | |
--------------------------------------------------------------------------------
| Deposits | 2 | 4 |
--------------------------------------------------------------------------------
| Deposits with ceding undertakings | 2 | 2 |
--------------------------------------------------------------------------------
| Total | 4 | 6 |
--------------------------------------------------------------------------------
| Financial assets available-for-sale | | |
--------------------------------------------------------------------------------
| Debt securities | 3,679 | 3,440 |
--------------------------------------------------------------------------------
| Equity securities | 1,707 | 2,110 |
--------------------------------------------------------------------------------
| Total | 5,387 | 5,550 |
--------------------------------------------------------------------------------
| Life insurance, total | 5,456 | 5,657 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding | | |
--------------------------------------------------------------------------------
| | 12/2007 | 12/2006 |
--------------------------------------------------------------------------------
| Loans and receivables | | |
--------------------------------------------------------------------------------
| Deposits | 1 | 291 |
--------------------------------------------------------------------------------
| Financial assets available-for-sale | | |
--------------------------------------------------------------------------------
| Debt securities | 2,023 | 140 |
--------------------------------------------------------------------------------
| Equity securities | 2,758 | 454 |
--------------------------------------------------------------------------------
| Total | 4,781 | 595 |
--------------------------------------------------------------------------------
| Investments in subsidiaries | 2,370 | 3,157 |
--------------------------------------------------------------------------------
| Holding, total | 7,151 | 4,043 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Elimination items between segments | -2,499 | -3,598 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | 19,575 | 15,921 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 7 DERIVATIVE | | | | | | |
| FINANCIAL | | | | | | |
| INSTRUMENTS | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | | 12/200 | | | 12/2006 | |
| | | 7 | | | | |
--------------------------------------------------------------------------------
| | | Fair | Fair | | Fair | Fair |
| | | value | value | | value | value |
--------------------------------------------------------------------------------
| | Contrac | Assets | Liabilit | Contract | Assets | Liabilit |
| | t/ | | ies | / | | ies |
| | notiona | | | notional | | |
| | l | | | amount | | |
| | amount | | | | | |
--------------------------------------------------------------------------------
| Derivatives | | | | | | |
| held for | | | | | | |
| trading | | | | | | |
--------------------------------------------------------------------------------
| Interest rate | 6,368 | 24 | 7 | 1,668 | 4 | 2 |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Foreign | 5,963 | 159 | 82 | 4,548 | 73 | 55 |
| exchange | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Equity | 68 | 0 | 0 | 15 | 10 | 0 |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Total | 12,399 | 182 | 90 | 6,232 | 87 | 57 |
| derivative | | | | | | |
| assets/(liabil | | | | | | |
| ities) held | | | | | | |
| for trading | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | | 12/200 | | | 12/2006 | |
| | | 7 | | | | |
--------------------------------------------------------------------------------
| | | Fair | Fair | | Fair | Fair |
| | | value | value | | value | value |
--------------------------------------------------------------------------------
| | Contrac | Assets | Liabilit | Contract | Assets | Liabilit |
| | t/ | | ies | / | | ies |
| | notiona | | | notional | | |
| | l | | | amount | | |
| | amount | | | | | |
--------------------------------------------------------------------------------
| Derivatives | | | | | | |
| held for | | | | | | |
| trading | | | | | | |
--------------------------------------------------------------------------------
| Interest rate | 475 | 1 | 0 | 754 | 8 | 9 |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Foreign | 541 | 7 | 1 | 676 | 7 | 3 |
| exchange | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Equity | 59 | 2 | 0 | 0 | 0 | 0 |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Commodity | 0 | 0 | 0 | 76 | 1 | 1 |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Total | 1,075 | 10 | 1 | 1,506 | 16 | 12 |
| derivative | | | | | | |
| assets/(liabil | | | | | | |
| ities) | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding | | 12/200 | | | 12/2006 | |
| | | 7 | | | | |
--------------------------------------------------------------------------------
| | | Fair | Fair | | Fair | Fair |
| | | value | value | | value | value |
--------------------------------------------------------------------------------
| | Contrac | Assets | Liabilit | Contract | Assets | Liabilit |
| | t/ | | ies | / | | ies |
| | notiona | | | notional | | |
| | l | | | amount | | |
| | amount | | | | | |
--------------------------------------------------------------------------------
| Derivatives | | | | | | |
| held for | | | | | | |
| hedging | | | | | | |
--------------------------------------------------------------------------------
| Derivatives | - | - | - | 628 | - | 12 |
| designated as | | | | | | |
| fair value | | | | | | |
| hedges | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivatives | | | | | | |
| held for | | | | | | |
| trading | | | | | | |
--------------------------------------------------------------------------------
| Equity | 4 | 0 | 0 | - | - | - |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 4 | 0 | 0 | 628 | - | 12 |
| derivative | | | | | | |
| assets/(liabil | | | | | | |
| ities) | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 8 INVESTMENTS RELATED TO UNIT-LINKED INSURANCE | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | | |
--------------------------------------------------------------------------------
| | 12/2007 | 12/2006 |
--------------------------------------------------------------------------------
| Financial assets as at fair value through p/l | | |
--------------------------------------------------------------------------------
| Debt securities | 75 | 58 |
--------------------------------------------------------------------------------
| Equity securities | 1,997 | 1,695 |
--------------------------------------------------------------------------------
| Financial assets as at fair value through p/l | 2,072 | 1,753 |
| total | | |
--------------------------------------------------------------------------------
| Other | 0 | 0 |
--------------------------------------------------------------------------------
| Life insurance, total | 2,072 | 1,753 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 9 LIABILITIES FOR INSURANCE AND INVESTMENT | | |
| CONTRACTS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | | |
--------------------------------------------------------------------------------
| | 12/2007 | 12/2006 |
--------------------------------------------------------------------------------
| Insurance contracts | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 1,691 | 1,640 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 6,835 | 6,606 |
--------------------------------------------------------------------------------
| Total insurance liabilities for P&C insurance | 8,527 | 8,247 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Reinsurers' share | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 55 | 56 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 429 | 465 |
--------------------------------------------------------------------------------
| Total reinsurers' share | 484 | 521 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | | |
--------------------------------------------------------------------------------
| | 12/2007 | 12/2006 |
--------------------------------------------------------------------------------
| Insurance contracts | | |
--------------------------------------------------------------------------------
| Liabilities for contracts with DPF | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 2,843 | 2,979 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 1,664 | 1,565 |
--------------------------------------------------------------------------------
| Total | 4,506 | 4,544 |
--------------------------------------------------------------------------------
| Liabilities for contracts without DPF | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 3 | 6 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 1 | 0 |
--------------------------------------------------------------------------------
| Total | 4 | 6 |
--------------------------------------------------------------------------------
| Total | 4,510 | 4,550 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assumed reinsurance | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 3 | 4 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 2 | 3 |
--------------------------------------------------------------------------------
| Total | 5 | 7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Insurance contracts, total | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 2,849 | 2,989 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 1,667 | 1,568 |
--------------------------------------------------------------------------------
| | 4,515 | 4,557 |
--------------------------------------------------------------------------------
| Investment contracts | | |
--------------------------------------------------------------------------------
| Liabilities for contracts with DPF | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 105 | 138 |
--------------------------------------------------------------------------------
| Investment contracts, total | 105 | 138 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities for insurance and investment | | |
| contracts, total | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 2,954 | 3,127 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 1,667 | 1,568 |
--------------------------------------------------------------------------------
| Life insurance, total | 4,621 | 4,695 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Recoverable from reinsurers | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 1 | 0 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 4 | 4 |
--------------------------------------------------------------------------------
| Total | 5 | 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 | 13,148 | 12,942 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 10 LIABILITIES FROM UNIT-LINKED INSURANCE AND | | |
| INVESTMENT CONTRACTS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | 12/2007 | 12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Unit-linked insurance contracts | 2,008 | 1,690 |
--------------------------------------------------------------------------------
| Unit-linked investment contracts | 63 | 62 |
--------------------------------------------------------------------------------
| Total | 2,071 | 1,752 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 11 FINANCIAL LIABILITIES | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | 12/2007 | 12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative financial instruments (Note 7) | 90 | 57 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Subordinated debt securities | | |
--------------------------------------------------------------------------------
| Subordinated loans | 440 | 441 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance, total | 530 | 499 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | 12/2007 | 12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative financial instruments (Note 7) | 1 | 12 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Subordinated debt securities | | |
--------------------------------------------------------------------------------
| Subordinated loans | 100 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance, total | 101 | 112 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding | 12/2007 | 12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative financial instruments (Note 7) | 0 | 12 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Debt securities in issue | | |
--------------------------------------------------------------------------------
| Certificates of deposit | - | 50 |
--------------------------------------------------------------------------------
| Bonds and notes | - | 191 |
--------------------------------------------------------------------------------
| Total | - | 241 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Subordinated debt securities | | |
--------------------------------------------------------------------------------
| Debentures | 589 | 586 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | | |
--------------------------------------------------------------------------------
| Pension loan | - | 85 |
--------------------------------------------------------------------------------
| Other | 6 | 6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding, total | 596 | 930 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Elimination items between segments | -125 | -146 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | 1,102 | 1,395 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 12 CONTINGENT LIABILITIES AND | | | | |
| COMMITMENTS | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | | | | |
--------------------------------------------------------------------------------
| | 12/2007 | 12/2006 | | |
--------------------------------------------------------------------------------
| Off-balance sheet items | | | | |
--------------------------------------------------------------------------------
| Guarantees | 41 | 48 | | |
--------------------------------------------------------------------------------
| Other irrevocable commitments | 16 | 19 | | |
--------------------------------------------------------------------------------
| Total | 57 | 67 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | | | | |
--------------------------------------------------------------------------------
| Assets covered by | 340 | 326 | | |
| policyholders' beneficiary | | | | |
| rights | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets pledged as collateral | | | | |
| for liabilities or contingent | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| | 12/2007 | 12/2007 | 12/2006 | 12/2006 |
--------------------------------------------------------------------------------
| Assets pledged as collateral | Assets | Liabilities | Assets | Liabiliti |
| | pledged | / commit- | pledged | es/ |
| | | ments | | commit- |
| | | | | ments |
--------------------------------------------------------------------------------
| Cash at balances at central | 12 | 8 | 18 | 9 |
| banks | | | | |
--------------------------------------------------------------------------------
| Investments | | | | |
--------------------------------------------------------------------------------
| - Investment securities | 276 | 102 | 250 | 114 |
--------------------------------------------------------------------------------
| Total | 289 | 110 | 268 | 123 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-cancellable operating | 12/2007 | 12/2006 | | |
| leases | | | | |
--------------------------------------------------------------------------------
| Minimum lease payments | | | | |
--------------------------------------------------------------------------------
| not later than one year | 35 | 33 | | |
--------------------------------------------------------------------------------
| later than one year and not | 101 | 92 | | |
| later than five years | | | | |
--------------------------------------------------------------------------------
| later than five years | 99 | 75 | | |
--------------------------------------------------------------------------------
| Total | 236 | 201 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | | | | |
--------------------------------------------------------------------------------
| | 12/2007 | 12/2006 | | |
--------------------------------------------------------------------------------
| Off-balance sheet items | | | | |
--------------------------------------------------------------------------------
| Fund commitments | 273 | 216 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets pledged as collateral | | | | |
| for liabilities or contingent | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| | 12/2007 | 12/2007 | 12/2006 | 12/2006 |
--------------------------------------------------------------------------------
| Assets pledged as collateral | Assets | Liabilities | Assets | Liabiliti |
| | pledged | / commit- | pledged | es/ |
| | | ments | | commit- |
| | | | | ments |
--------------------------------------------------------------------------------
| Investments | | | | |
--------------------------------------------------------------------------------
| - Investment securities | - | - | 4 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 12/2007 | 12/2006 | | |
--------------------------------------------------------------------------------
| Other commitments | | | | |
--------------------------------------------------------------------------------
| Acquisition of IT-software | 1 | 1 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-cancellable operating | 12/2007 | 12/2006 | | |
| leases | | | | |
--------------------------------------------------------------------------------
| Minimum lease payments | | | | |
--------------------------------------------------------------------------------
| not later than one year | 2 | 2 | | |
--------------------------------------------------------------------------------
| later than one year and not | 6 | 6 | | |
| later than five years | | | | |
--------------------------------------------------------------------------------
| later than five years | 4 | 5 | | |
--------------------------------------------------------------------------------
| Total | 12 | 13 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding | | | | |
--------------------------------------------------------------------------------
| | 12/2007 | 12/2006 | | |
--------------------------------------------------------------------------------
| Off-balance sheet items | | | | |
--------------------------------------------------------------------------------
| Fund commitments | 6 | 8 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets pledged as collateral | | | | |
| for liabilities or contingent | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| | 12/2007 | 12/2007 | 12/2006 | 12/2006 |
--------------------------------------------------------------------------------
| Assets pledged as collateral | Assets | Liabilities | Assets | Liabiliti |
| | pledged | / commit- | pledged | es/ |
| | | ments | | commit- |
| | | | | ments |
--------------------------------------------------------------------------------
| Investments | | | | |
--------------------------------------------------------------------------------
| - Mortgaged collateral notes | 15 | 6 | 15 | 6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-cancellable operating | 12/2007 | 12/2006 | | |
| leases | | | | |
--------------------------------------------------------------------------------
| Minimum lease payments | | | | |
--------------------------------------------------------------------------------
| not later than one year | 2 | 2 | | |
--------------------------------------------------------------------------------
| later than one year and not | 5 | 4 | | |
| later than five years | | | | |
--------------------------------------------------------------------------------
| later than five years | 3 | 0 | | |
--------------------------------------------------------------------------------
| Total | 11 | 5 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 13 RESULT ANALYSIS OF P&C | | | | |
| INSURANCE BUSINESS | | | | |
--------------------------------------------------------------------------------
| | 1-12/20 | 1-12/2006 | | |
| | 07 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Premiums earned | 3,797 | 3,765 | | |
--------------------------------------------------------------------------------
| Claims incurred | -2,788 | -2,729 | | |
--------------------------------------------------------------------------------
| Operating expenses | -653 | -655 | | |
--------------------------------------------------------------------------------
| Other technical income and | 5 | 0 | | |
| expenses | | | | |
--------------------------------------------------------------------------------
| Allocated investment return | 205 | 173 | | |
| transferred from the | | | | |
| non-technical account | | | | |
--------------------------------------------------------------------------------
| Technical result | 565 | 554 | | |
--------------------------------------------------------------------------------
| Investment result | 238 | 412 | | |
--------------------------------------------------------------------------------
| Allocated investment return | -261 | -227 | | |
| transferred to the technical | | | | |
| account | | | | |
--------------------------------------------------------------------------------
| Other income and expenses | -8 | -9 | | |
--------------------------------------------------------------------------------
| Operating result | 534 | 730 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 14 SAMPO PLC'S INCOME | | | | |
| STATEMENT AND BALANCE SHEET | | | | |
| (FAS) | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCOME STATEMENT | | | | |
--------------------------------------------------------------------------------
| | 1-12/ | 1-12/ | | |
| | 2007 | 2006 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other operating income | 12 | 49 | | |
--------------------------------------------------------------------------------
| Staff expenses | -18 | -18 | | |
--------------------------------------------------------------------------------
| Depreciation and impairment | -2 | -8 | | |
--------------------------------------------------------------------------------
| Other operating expenses | -31 | -22 | | |
--------------------------------------------------------------------------------
| Operating profit | -39 | 1 | | |
--------------------------------------------------------------------------------
| Finance income and expenses | 4,097 | 1,385 | | |
--------------------------------------------------------------------------------
| Profit before appropriations | 4,058 | 1,386 | | |
| and income taxes | | | | |
--------------------------------------------------------------------------------
| Income taxes | -25 | 5 | | |
--------------------------------------------------------------------------------
| Profit for the financial | 4,033 | 1,391 | | |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BALANCE SHEET | 12/2007 | 12/2006 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Intangible assets | 1 | 23 | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 6 | 28 | | |
--------------------------------------------------------------------------------
| Investments | | | | |
--------------------------------------------------------------------------------
| Shares and participations in | 2,370 | 3,157 | | |
| Group companies | | | | |
--------------------------------------------------------------------------------
| Other shares and | 2,764 | 460 | | |
| participations | | | | |
--------------------------------------------------------------------------------
| Other receivables and | 2,023 | 130 | | |
| investments | | | | |
--------------------------------------------------------------------------------
| Receivables | 57 | 94 | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 228 | 623 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | 7,450 | 4,516 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Equity | | | | |
--------------------------------------------------------------------------------
| Share capital | 98 | 95 | | |
--------------------------------------------------------------------------------
| Share premium account | 1,160 | 1,157 | | |
--------------------------------------------------------------------------------
| Legal reserve | 366 | 366 | | |
--------------------------------------------------------------------------------
| Fair value reserve | 26 | 20 | | |
--------------------------------------------------------------------------------
| Other reserves | 273 | 273 | | |
--------------------------------------------------------------------------------
| Retained earnings | 811 | 188 | | |
--------------------------------------------------------------------------------
| Profit for the year | 4,033 | 1,391 | | |
--------------------------------------------------------------------------------
| Total equity | 6,768 | 3,490 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | | | |
--------------------------------------------------------------------------------
| Long-term | 589 | 671 | | |
--------------------------------------------------------------------------------
| Short-term | 93 | 355 | | |
--------------------------------------------------------------------------------
| Total liabilities | 682 | 1,026 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | 7,450 | 4,516 | | |
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