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Supplementary Financial InformationFinancial InformationSampo Groupp pJanuary‐September 2011
02/11/2011
DisclaimerThis presentation may contain forward‐looking statements that reflect management’s current views with respect to certain future events and potential financial performance Although Sampo believes that the expectationspotential financial performance. Although Sampo believes that the expectations reflected in such forward looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward‐lookingresults could differ materially from those set out in the forward‐looking statements as a result of various factors.
Important factors that may cause such a difference for Sampo include, but are p y p ,not limited to: (i) the macroeconomic development, (ii) change in the competitive climate and (iii) developments in capital markets.
This presentation does not imply that Sampo has undertaken to revise these forward‐looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will l d h d h d h h id dlead to changes compared to the date when these statements were provided.
02/11/2011
KEY FINANCIAL FIGURES
02/11/2011
Sampo Group results
959EURm
Profit before taxes and net profit
450EURm
Profit before taxes by quarters
959 906
801 759 800
1,000
334 338361
387 369350400450
600192 199
287
200250300
200
400 150
100150200
01‐9/2010 1‐9/2011
050
Pre‐tax profit Net profit
02/11/2011
Sampo Group profit before taxes
959906
900
EURm
1 9/2010 1 9/2011
5
700
900 1‐9/2010 1‐9/2011
519
371465
373
300
500
100 107100
300
‐28 ‐37‐100If P&C Mandatum
LifeNordea Holding Sampo Group*)
Life *) excl. Nordea
02/11/2011
Profit before taxes and comprehensive income
344
1,200
1,400EURm
Profit before taxes
959
906
1,3
800
1,000Profit before taxesComprehensive income
519
465
0 7 1 3
9
729
08 5 62
400
600
4
100
107
371
373
46 228
‐204
40 345 16
0
200
1‐9/10 1‐9/11 1‐9/10 1‐9/11 1‐9/10 1‐9/11 1‐9/10 1‐9/11
‐400
‐200/ / / / / / / /
If P&C Mandatum Life Nordea Sampo Group
02/11/2011
Earnings per share
2.392 50EUR
EPS and Comprehensive result EPS
0.80EUR
Reported EPS by quarter
2.39
2.00
2.50
0 51 0.540.58 0.550.60
1.43 1.35
1 00
1.500.48 0.51
0.40
0.290.50
1.000.22
0.20
0.001‐9/2010 1‐9/2011
0.00Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11
EPS (reported) EPS (comp. result)
02/11/2011
Sampo Group equity, EURm
736220
8,8868,395
220
Fair value reserve
6,521 6,546 Retained earnings
Invested unrestricted equityInvested unrestricted equity
Restricted capital
102 102
1,527 1,527
31 Dec 2010 30 September 2011
02/11/2011
Sampo Group net asset value per share
17.7918.00
EUR
13.4914.63
13.62
12 00
15.00
7.679.21
8.289.00
12.00
5.97
3.00
6.00
0.002004 2005 2006 2007 2008 2009 2010 Sep 2011
02/11/2011
Net asset value by quarters
814 851 1,087 812
400 8,214 9,046
8,139
9,284 9,984 9,943
9,117 7,630 9,000
EURm
588 279 7,000
Topdanmark and
7,613 8,219 7,847 8,422 8,886 9,119 8,635 8,395
3,000
5,000 other itemsNordea at FV vs. Group BV
1,000
3,000
‐817(1,000) Dec
2009March 2010
June 2010
Sept 2010
Dec 2010
March 2011
June 2011
Sep 2011
02/11/2011
Net asset value per segment, 30 September 201130 September 2011 EURm
995 8,000
10,000
N d b k l i
5,223 6,000
Nordea book value in Group accounts EUR 6,040 million + valuation differenceEUR ‐817 million
776 7,630
41 2 000
4,000 Topdanmark at FV
2,585
0
2,000
P&C Lif i N d S l & S GP&C insurance
Life insurance Nordea Sampo plc & eliminations
Sampo Group
02/11/2011
Return on equity in Sampo Group’s business areas
97.6%
75 %
100 %P&C insuranceLife insuranceSampo Group
53.2%
8%
0%
%
%52.6%
55.7%
25 %
50 %
Sampo Group
Target P&C and Life
24.1%
22.0%
19.2%
8%
39.8
2.4%
22.8%
39.0
30.0%
9.1% 36.2%
3%
16.3%
28.4%
22.6%
4%
21.8%
2.5%
21.6%
0 %
25 % >17.5%
0.
8.8%
29.
32.4
‐50 %
‐25 %68
‐75 %
02/11/2011
Fair value reserve development by segment
EURm 9/2011 12/2010 12/2009
P&C insurance 69.9 315.1 104.5
Lif i 150 2 436 4 210 0Life insurance 150.2 436.4 210.0
Holding 0.1 ‐0.4 ‐3.4
Sampo Group*) 220.3 736.4 295.6
*) Eliminations included and figures after tax) Eliminations included and figures after tax
02/11/2011
Fair value reserve by segment and asset class, 30 September 2011p
EURm Fixed i Equity
Derivat. held for Deferred
t FVR netincome q ytrading taxes
P&C insurance 102.6 ‐7.9 ‐24.7 69.9
Life insurance 70.1 130.9 1.9 ‐52.8 150.2
Holding 0.3 ‐0.1 0.0 0.1g
Sampo Group*) 173.6 122.1 1.9 ‐77.4 220.3
*) Eliminations included and figures after tax*) Eliminations included and figures after tax
02/11/2011
Sampo plc’s ownership structure, 31 October 201131 October 2011
Solidium 14.12% *
Varma Mutual Pension 8.5%
Ilmarinen Mutual Pension 1.76%
Björn Wahlroos 2.09%
Kaleva Mutual Insurance 1.01%
Other domestic owners 20.13%
Foreign and nominee registeredForeign and nominee registered owners 52.38%
* Entirely owned by the Finnish State
02/11/2011
Sampo Group staff31 D b
Sampo Group staff *) 30 September 2011
31 December 2010
P&C INSURANCE 6,308 6,305
Finland 1,714 1,722Sweden 1,810 1,843N 1 549 1 506Norway 1,549 1,506
Baltics, Russia, Denmark and other 1,235 1,234
LIFE INSURANCE 534 488
Finland 423 377Baltics and other 111 111
5 5HOLDING 59 51
Sampo plc (Finland) 59 51TOTAL SAMPO GROUP 6,901 6,844
*) Full‐time equivalents
02/11/2011
CAPITAL POSITION
02/11/2011
Group capital and minimum requirement, 30 September 2011
12,000
EURm
p
Group solvency ratio 139%Basel II 160%
1,271 2,9548,000
10,000Basel II 160%
8,39547
47
4,830 4,194
4,000
6,000
Sampo plc6,713
812 812
3,748 3,112
0
2,000
4,000 Sampo plcNordeaLifeP&C
0
02/11/2011
Sampo Group economic capitalreporting principlesreporting principlesDefinitions• Economic capital (EC) is used as an internal measure of capital required for measurable risks the G i dGroup is exposed to.
• EC is defined as the amount of capital to protect the solvency over a one year time horizon with a probability of 99.5 per cent.
EC at company level• EC is calculated in If P&C and Mandatum Life using a set of calculation methods, which have been developed for the specific needs of each company .
• In If P&C and Mandatum Life EC accounts for market, credit, insurance and operational risks, as well , , p ,as the diversification effect between these risks.
• EC figure calculated and reported by Nordea is used in Sampo‐Group reporting. Because Nordea’s reported figures are expressed at 99.97% confidence level they are converted by Sampo into 99.5% confidence levelconfidence level.
EC at Group Level• Correlations between companies´ risks are assessed and diversification effect is calculated.• Group wide EC is sum of Companies EC and their diversification effect• Group wide EC is sum of Companies EC and their diversification effect.
02/11/2011
Group economic capital and solvency, 30 September 2011p
1176,8307,000
EURm
*)117
5,000
6,000
)
2,507
682
6,7133 000
4,000
5,000
1,031 4,394
1 000
2,000
3,000
1,5380
1,000
If P&C Mandatum Nordea Diversific. Group EC Adj. group Life
p j g psolv. capital
*) Liability side adjustments which equal discount effect less risk margin
02/11/2011
P&C insurance economic capital split by risk type, 30 September 2011p y yp p
4,000EURm
179 3,065
3,000 *)
1 052
14 211 447 972,886
2,000
611
1,052 1,538
0
1,000
0
*) Liability side adjustments which equal discount effect less risk margin
02/11/2011
Life insurance economic capital split by risk type, 30 September 2011p y yp p
1,500EURm
11821
2698761,000
1,250
833
1 031 939500
750
1,000
328
1,031 939
0
250
500
‐62‐250
0
Insurance i k
Market risk Credit risk Operational i k
Diversific. Total Adj. solv. i l
*)
risk risk capital*) Liability side adjustment
02/11/2011
Sampo Group economic capital, September 2010 – September 2011p p
4394
EURm 9/201012/2010
4,189
4,281
4,281
4,222
4,394 4,500 12/20103/20116/2011
78
4
4
92 3
4
2,507 3,000
9/2011
95
2,47
81
9
2,45
81
4
2,4 9
33
2,47
1,538
1,031 1,500
1,29
1,026
1,3
1,119
1,3
1,074
1,33
1,052
0If P&C M d t Lif S l S G (i lIf P&C Mandatum Life Sampo plc
(Nordea)Sampo Group (incl. diversif. effect)
02/11/2011
Sampo Group’s economic capital split by risk type, 30 September 2011p y yp p
Market risk36%Topdanmark
Operational risk
Topdanmark2%
11%
Insurance risk13%
Credit riskCredit risk38%
02/11/2011
INVESTMENTS
02/11/2011
Sampo Group's investment allocation, 30 September 2011p
Total EUR 17.1 billion
Equities
Real Estate2%
Other3%
Bonds
14%
Bonds69%Money
Market12%
Investments of Sampo plcInvestments of Sampo plc, Mandatum Life and If P&C
02/11/2011
Sampo Group asset allocationTotal Group (MEUR) 18 301 18 373 16 817 17 077p ( )
11 661 11 67410 951 11 116
10 000
12 000
14 000
5 957 5 804 5 603 5 2606 000
8 000
10 000
683 894262 701
0
2 000
4 000
f &C m o f &C m o f &C m o f &C m o
12/10 03/11 06/11 09/11
If P&
Mandatum
Life Samp
Plc If P&
Mandatum
Life Samp
Plc If P&
Mandatum
Life Samp
Plc If P&
Mandatum
Life Samp
Plc
12/10 03/11 06/11 09/11
Money Market 5 % 10 % 85 % 6 % 11 % 89 % 5 % 8 % 76 % 10 % 6 % 89 %Bonds 80 % 51 % 9 % 80 % 51 % 6 % 83 % 53 % 8 % 80 % 54 % 5 %Equity 14 % 28 % 3 % 13 % 27 % 2 % 11 % 27 % 7 % 9 % 26 % 3 %Private Equity 0% 4% 2% 0% 5% 2% 0% 5% 5% 0% 5% 2%Private Equity 0 % 4 % 2 % 0 % 5 % 2 % 0 % 5 % 5 % 0 % 5 % 2 %Other 1 % 6 % 1 % 1 % 6 % 1 % 1 % 7 % 3 % 1 % 8 % 1 %
02/11/2011
Investment returns, January‐September 2011
Yield% EURm
ML If P&C ML If P&C
Fixed 1.4% 3.1% 54 311
(11) (7)(11) (7)
Equities‐18.8% ‐22.8% ‐276 ‐359
(77) (5)
Other 9.4% 9.5% 54 1
Total *) 3 8% 0 2% 192 47
*) incl. FX result and therefore differs from the sum of asset classes (realized profits and losses in parenthesis)
(incl. FX net result) *) 3.8% 0.2% 192 47
02/11/2011
Fixed income investment allocation Sampo Group, 30 September 2011p p p
Total EUR 13.8 billion
Europe Money Market10 %Scandinavia
US4 %
Other1 %
Money Market5 %
S di i
Europe22 %
Scandinavia58 %
02/11/2011
Fixed income investment allocation by sectorSampo Group, 30 September 2011p p p
Money
Total EUR 13.8 billion
Money Market 15 %
Corporate29 %
Banks22 %
GGovernment 8 %
Covered Bonds 26 %
02/11/2011
Government debt investment allocation by country, Sampo Group, 30 September 2011y p p p
N h l d O h
Total EUR 1.1 billion
Germany7 %
Netherlands3 %
Other3 %
Sweden
Norway8 %
41 %
France12 %
United States
Finland16 %
United States12 %
02/11/2011
Bank investment allocation by countrySampo Group, 30 September 2011p p p
U i d S O h
Total EUR 8.8 billion
FranceGermany2%
United States2%
Other3%
Denmark4%
3%
Sweden57%
Norway10%
57%Finland19%
02/11/2011
Bank investments by country and investment classSampo Group, 30 September 2011 p p p
Covered bonds
Money market
Longterm senior debt
Longterm subord. debt
Total %
Sweden 2 956 728 1 014 302 4 999 57 %Finland 75 1 386 187 47 1 696 19 %Norway 274 423 192 889 10 %Denmark 75 169 129 373 4 %France 77 158 11 246 3 %Germany 56 92 148 2 %United States 131 7 138 2 %Switzerland 94 94 1 %Estonia 55 0 55 1 %United Kingdom 40 14 54 1 %Netherlands 43 43 0 %Austria 33 1 34 0 %Luxembourg 11 11 0 %Belgium 5 3 9 0 %Latvia 1 1 0 %
Grand Total 3 556 2 169 2 357 705 8 788 100 %Grand Total 3 556 2 169 2 357 705 8 788 100 %
02/11/2011
Equity investment allocation by geography Sampo Group, 30 September 2011p p p
Total EUR 2.4 billion
Scandinavia28 %
Latin America3 %
Japan2 %
Far East8 %
28 %
North America12 %
3 %
East Europe5 %
Western Finland26 %
Western Europe16 %
02/11/2011
Sensitivity of Sampo Group investments to market risks on 30 September 2011
EURm If P&C Mandatum Life Sampo plc Sampo
GroupLife Group
Equities ‐10%+10%
‐103103
‐137137
‐22
‐241241103 137 2 241
Interest rates ‐100 bps+100 bps
144‐138
70‐68
3‐3
216‐208
Alternative ‐10%+10%
‐1212
‐7272
‐22
‐8686
C 5%Currency ‐5%+5%
‐2 (SEK)2 (SEK)
23 (EUR)‐23 (EUR)
6 (EUR)‐6 (EUR)
‐‐
The changes of interest rates have a strong effect to the reinvestment risk of the insurance companies. The sensitivities include the g g peffects of derivative positions, but do not capture indirect effects, like the impact of the changes of the discount rates in the value in force. All sensitivities are before taxes. The scenario definitions assume an uniform movement of the whole underlying market.
02/11/2011
P&C INSURANCE
02/11/2011
P&C insurance profit before taxes and comprehensive incomeand comprehensive income
729800EURm
500600700800
380 343519 465200300400
‐1000
100
1‐9/2010 1‐9/2011
‐297‐300‐200 Comprehensive income
Profit before taxes
Profit for the period
02/11/2011
P&C insurance result by quarters Profit and loss account, EURm Q3/11 Q2/11 Q1/11 Q4/10 Q3/10
Premiums earned 1,029 1,017 1,003 992 981
Cl i i d 771 752 777 740 723Claims incurred ‐771 ‐752 ‐777 ‐740 ‐723
Operating expenses ‐178 ‐174 ‐170 ‐176 ‐168
Other technical income and expenses 1 1 2 0 0
Allocated investment return transferred from the non‐technical account
26 36 42 32 39
Technical result 106 128 100 109 129Technical result 106 128 100 109 129
Investment result ‐23 119 178 153 111
Allocated investment return transferred to h h i l
‐39 ‐50 ‐57 ‐46 ‐54the non‐technical account
Other income and expenses 0 3 0 ‐27 ‐1
Operating result 43 200 221 188 186Operating result 43 200 221 188 186
02/11/2011
P&C insurance combined ratio development
100.992.6 90.5 89.9 90.6 91.8 92.1 92.8 93.0 92.6100
%Long‐term CoR target < 95%26.6
25.6 24.3 24.0 23.7 23.7 24.1 23.7 23.5 23.4
60
80< 95%
74.3 67 0 66 2 65 9 66 9 68 1 68 0 69 1 69 5 69 240
60
67.0 66.2 65.9 66.9 68.1 68.0 69.1 69.5 69.2
20
0
Risk ratio Cost ratio
02/11/2011
If P&C’s investments, 30 September 2011AFS iInvestment allocation AFS investments
Unrealized gains before taxes
384427500
EURm
Investment allocationTotal EUR 11.1 bn
R l E
9
142
47
185
327
258
113142
322
217
384329
221
95
250Money Market
10 %Equities9 %
Private Equity0.3 %
Real Estate1 %
‐46
‐137
‐216
‐257
330 ‐1
49
69 70
180
170
199
100
71 108
103
19
12
‐31
71
1
‐8‐27
37
0
‐3‐11
‐178
‐311
305
‐176
‐249
‐394‐325
‐500
‐250
EquitiesBonds
‐3
‐568‐635
‐750
500Bonds80 %
Duration 1.4 yearsFixed income running yield 3.7 %
02/11/2011
If P&C mark‐to‐market investment returnsFixed income running yield Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11
12.4%14 %
% 3.9 3.9 3.7 3.9 3.9 3.9 3.7
7 4%9%
11 %
4.3%5.8%
4.4%
7.4%5.7%6 %
9 %
2.6%
0.2%1 %
4 %
‐3.1%‐4 %
‐2 %
2004 2005 2006 2007 2008 2009 2010 1‐9/2010 1‐9/2011
02/11/2011
P&C insurance breakdown of gross written premiums, January – September 2011gross written premiums, January September 2011
by business area by countryTotal EUR 3,513 million
535
97
1 209
329 97
1,829
1,209
764
1,050
1,112
PrivateCommercialIndustrial
NorwaySwedenFinlandBaltic and Russia Finland DenmarkBaltic and Russia
02/11/2011
P&C insurance gross written premiums change by business area, 1‐9/2011 vs. 1‐9/2010g y / /
5 4%‐1.7%
3.7%IF GROUP
7.6%
5.4%
0.4%4.2%PRIVATE
3.2%‐3.8%
3.0%COMMERCIAL
2.4%
‐3.0%
‐4.5%
4 5%
3.0%
BALTIC AND RUSSIA
INDUSTRIAL
4.0%4.5%
‐7.0% ‐2.0% 3.0% 8.0%
BALTIC AND RUSSIA
Growth in SEK Growth in EUR Growth excluding currency effects
02/11/2011
P&C insurance technical result by business area, January‐September 2011January September 2011
13 ‐3350EURm
(13) (5)
90
37
250
300 (45)
90
334150
200(101)
(340)
196
50
100
150
(177 in 1 9/2010)
(340)
0
50
Private Commercial Industrial Baltic & Other Group
1‐9/2010)
Russiap
02/11/2011
P&C insurance technical result by country, January‐September 2011January September 2011
9 9 3350
EURm
(13) (5)(13)
82
250
300(81)
( ) ( )
64
334200
250
(103)
168
334
100
150
(125 in
(340)
0
50
(125 in 1‐9/2010)
0Norway Sweden Finland Denmark Baltic &
RussiaOther Group
02/11/2011
If P&C ‐ key figures by business area Q3/2011PRIVATE COMMERCIAL
93.2% 91.9% 91.6% 90.3%
PRIVATECombined ratio
93.3% 93.5%
87 5%
91.9%
COMMERCIALCombined ratio
90.3%
Jan‐Sept 2010 Jan‐Sept 2011 Q3/10 Q3/11
87.5%
Jan‐Sept 2010 Jan‐Sept 2011 Q3/10 Q3/11
HIGHLIGHTS 19/11 GWP increased by 4.2 % (excl. currency effects). All countries had positive premium growth Combined ratio improved by 1 3 %‐points
HIGHLIGHTS 19/11 Premiums increased by 3.0 % excl. currency effects. All countries except Norway developed positively compared to the same period last yearCombined ratio improved by 1.3 % points
compared to the same period last year
KEY FIGURES Q3/11
compared to the same period last year Risk ratio deteriorated slightly mostly because of worse frequency development in Property and Motor. Large claims were EUR 2.4 m worse than normalised
KEY FIGURES Q3/11KEY FIGURES Q3/11 GWP: EUR 568m (537) NPE: EUR 578m (549) Technical result: EUR 71m (67) Risk ratio: 68.2% (67.9%)
KEY FIGURES Q3/11 GWP: EUR 180m (167) NPE: EUR 316m (302) Technical result: EUR 32m (48) Risk ratio: 68.5% (64.1%)
Cost ratio: 22.0% (23.8%) Insurance margin: 12.3% (12.0%)
Cost ratio: 23.5% (23.4%) Insurance margin: 10.1% (16.0%)
02/11/2011
If P&C ‐ key figures by business area Q3/2011INDUSTRIAL BALTIC AND RUSSIA
92.4% 93.2%96.3% 97.3%
Combined ratio
92.1%89.2%
91.4%88.6%
Combined ratio
Jan‐Sept 2010 Jan‐Sept 2011 Q3/10 Q3/11 Jan‐Sept 2010 Jan‐Sept 2011 Q3/10 Q3/11
HIGHLIGHTS 19/11 Premiums increased by 3.0 % excl. currency effects Risk ratio improved due to prior year gains of EUR
HIGHLIGHTS 19/11Premiums increased by 4.5% excl. currency effects. Especially Estonia and Latvia had strong growth,Risk ratio improved due to prior year gains of EUR
64m. Large claims ended EUR 46m worse than normalised because of several major property claims in Norway and Sweden
Especially Estonia and Latvia had strong growth, Lithuania was improving, while Russia had negative growthRisk ratio improved due to lower claims frequencyNominal costs decreased by 7.9% excl. currency effects
KEY FIGURES Q3/11 GWP: EUR 89m (65) NPE: EUR 104m (100) Technical result: EUR 6m (9) Risk ratio: 77 2% (76 4%)
KEY FIGURES Q3/11GWP: EUR 30m (29) NPE: EUR 30m (31) Technical result EUR 4m (5)
Risk ratio: 77.2% (76.4%) Cost ratio: 20.1% (19.9%) Insurance margin: 6.0% (9.3%)
Risk ratio: 55.0% (55.3%) Cost ratio: 33.6% (36.1%) Insurance margin: 14.1% (14.4%)
02/11/2011
If P&C ‐ key figures by country Q3/2011Combined ratio Combined ratio93.2%
88.5% 91.0%
79.6% 94.6% 98.6%88.7%
105.1%
Jan‐Sept 2010 Jan‐Sept 2011 Q3/10 Q3/11 Jan‐Sept 2010 Jan‐Sept 2011 Q3/10 Q3/11
RWAY
GWP: EUR 300m (286) NPE: EUR 378m (367) Technical result: EUR 88m (49) Risk ratio 58 4% (68 9%)
GWP: EUR 306m (276) NPE: EUR 307m (297) Technical result: EUR ‐1m (50) Risk ratio: 83 1% (66 1%)ED
EN
NOR
Risk ratio 58.4% (68.9%) Cost ratio: 21.2% (22.2%) Insurance margin: 23.2% (13.0%)
Risk ratio: 83.1% (66.1%) Cost ratio: 22.0% (22.6%) Insurance margin: ‐0.5% (17.2%)SW
E
Combined ratio Combined ratio
99.1% 100.0% 99.6%
113.9%88.6% 87.6% 90.2% 83.7%
Jan‐Sept 2010 Jan‐Sept 2011 Q3/10 Q3/11
GWP: EUR 143m (130) NPE: EUR 220m (207) Technical result: EUR 34m (21)
k ( )
GWP: EUR 88m (77) NPE: EUR 93m (80) Technical result: EUR ‐11m (3)R k 84 4% (69 7%)LA
ND
MARK
Jan‐Sept 2010 Jan‐Sept 2011 Q3/10 Q3/11
Risk ratio: 62.1% (66.6%) Cost ratio: 21.6% (23.6%) Insurance margin: 15.4% (10.3%)
Risk ratio: 84.4% (69.7%) Cost ratio: 29.6% (29.9%) Insurance margin: ‐11.6% (4.3%)FI
NL
DEN
02/11/2011
If P&C solvency capital
EURm30 September
201131 December
2010
Shareholders equity 2,585 2,545
Subordinated notes 215 414
Deferred tax assets and liabilities, net 359 414
Solvency capital 3,159 3,373
02/11/2011
If P&C solvency capital & solvency ratio
100%
3 000
%EURm
70%
88%
74% 71%66%
77% 79% 78%
60%
80%
2 000
3,000
54%
%66%
40%
60%
1 000
2,000
0%
20%
0
1,000
0%02003 2004 2005 2006 2007 2008 2009 2010 30 Sep
2011
Solvency capital (lhs) Solvency ratio (rhs)
02/11/2011
If P&C reserve strength
% %250%
300%
2%
245%
246% 254 %
257%
240%
240%
236%
234%200%
35%
144% 152% 161%
166%
170%
172%
173%
170%19
2
100%
150%
1
50%
%
0%2003 2004 2005 2006 2007 2008 2009 2010 30 Sep
2011Reserves/NWP Reserves/Claims paid
02/11/2011
P&C insurance key figures by quarter
Q3/11 Q2/11 Q1/11 Q4/10 Q3/10 Q2/10 Q1/10 Q4/09 Q3/09
P i d tPremiums earned, net (EURm) 1,029 1,017 1,003 974 981 972 949 931 916
Technical result (EURm) 106 128 100 106 129 143 68 114 133(EURm)
Risk ratio (%) 68.9 67.8 71.0 67.7 67.2 66.5 74.8 67.6 66.9
C t ti (%) 23 4 23 3 23 4 24 6 23 5 23 4 23 5 25 0 24 0Cost ratio (%) 23.4 23.3 23.4 24.6 23.5 23.4 23.5 25.0 24.0
Expense ratio (%) 17.3 17.2 16.9 17.8 17.0 17.2 16.9 18.5 17.3
Combined ratio (%) 92.3 91.1 94.4 92.3 90.6 89.9 98.2 92.7 90.9
Insurance margin (%) 10.2 12.5 9.7 10.9 13.3 14.7 7.2 12.2 14.6
02/11/2011
LIFE INSURANCE
02/11/2011
Life insuranceprofit before taxes and comprehensive income p p
495500
EURm
295342
140 142
286332
228250140 121 142
100 10780
0
‐204‐250Profit before taxesComprehensive income
‐378‐500
p
2006 2007 2008 2009 2010 1‐9/2010 1‐9/2011
02/11/2011
Life insurance profit by components 19/2011 19/2010
Net investment income ‐173.1 439.7‐ Transferred to expense result ‐13.0 ‐12.5p‐ Return on unit‐linked policies 375.4 ‐206.3‐ Return on with‐profit policies * ‐88.3 ‐136.6
INVESTMENT RESULT 100.9 84.3
EXPENSE RESULT ** 5.7 5.2
RISK RESULT 10 7 14 5RISK RESULT 10.7 14.5
OTHERS ‐10.3 ‐4PROFIT BEFORE TAXES 107.1 100.0
Change in the market value of investments ‐385.8 206.5
PROFIT AT MARKET VALUES 278.8 306.5
* Includes guaranteed interest, bonuses and change in the reserves of the above items** result of the unit‐linked business EUR 2.3 million
02/11/2011
Mandatum Life Group expense ratio, 2006 ‐ January‐September 2011J y p
120.0%
101.9 101.0
111.3 109.3 110.4 110.5
100 0
110.0
120.0
81.3 80.6
89.6 91.8 90.1 90.990.0
100.0
70.0
80.0
60.02006 2007 2008 2009 2010 1‐9/2011
Total expense ratio Incl. kick backs
02/11/2011
Mandatum Life breakdown of premiums written & insurance savingsp g
Insurance savings, EURm9/2011
Premiums written, EURm1‐9/2011*)
10 20
9/2011
2
/
Unit‐linked life1,070
957
133
32
55
67 1 Unit‐linked lifeUnit‐linked pensionUnit‐linked capital redemptionUnit‐linked Baltic 957
777
3,71590
32 Unit linked BalticOther lifeOther pensionOther capital redemption
125314236
p pOther Baltic
*) differs from P/L due to eliminations within Mandatum Life group
02/11/2011
Life insurance net premiums
1,111
1 000
1,200EURm
649 660 618
803 827
612800
1,000
649 660 618529
612
400
600
200
400
0
02/11/2011
Mandatum Life’s market share in Finland
25.5 25.227.9 28.2
26.330%
20 4
24.822.0
23.720.822.4 21.5
20
25
17.919.5 20.4 19.8 19.3
10
15All products
5
10p
Unit‐linked
0
02/11/2011
Mandatum Life technical reserves traditional vs. unit‐linked
8,000EURm
88 1,262 1,752 2,071 1 637 2,359
3,124 2,935 6,000
607 884 1,262 1,637
4,000
4,652 4,626 4,738 4,695 4,621 4,487 4,431 4,410 4,265 2,000
02003 2004 2005 2006 2007 2008 2009 2010 Sep2003 2004 2005 2006 2007 2008 2009 2010 Sep
2011Guaranteed interest rates Unit‐linked
02/11/2011
Mandatum Life’s investments, 30 September 2011AFS investmentsInvestment allocation AFS investments
Unrealized gains before taxes
750
EURm
Investment allocationTotal EUR 5.3 bn
h
0
417343
485586560
489500
Money Market6 %
Private Equity5 3 %
Real Estate3 %
Other5 %
0 30 64 55 67 36 31 5287
80
61
142
253
188 31
8 450
430
364
131
256
136181
272343
201250
5.3 %
‐32
‐44
‐67 ‐33
‐63 20
12 1 3 16 15 16 13 13 12 70
1
19
‐242
‐291
‐126
‐48
‐106
250
0
BondsBonds
Equities26 %
‐
‐274‐353
‐500
‐250 Bonds
Equities
D ti 2 1
54 %
Duration 2.1 yearsFixed income running yield 5.5%
02/11/2011
Mandatum Life mark‐to‐market investment returnsinvestment returns
Fixed income running yield Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 % 5.3 5.0 4.9 5.2 5.0 5.2 5.5
20 %
12 0%
16.8%
15 %
20 %
8.3%
12.0%9.7%
5.0%
11.1%
8.0%10 %
0 %
5 %
7 8%
‐3.8%‐5 %
‐7.8%‐10 %2004 2005 2006 2007 2008 2009 2010 1‐9/2010 1‐9/2011
02/11/2011
Mandatum Life Group solvencyEURm 30 Sep 2011 31 Dec 2010EURm 30 Sep 2011 31 Dec 2010
Solvency capitalCapital and reserves 766 1070
d dDividend payment 0Subordinated capital 100 100Unrealized gains 15 17D f d f F V l R 153Deferred taxes from Fair Value Reserve 53 153Deferred taxes on profit brought forward 20 11Other items -12 ‐12Total 942 1,339
Technical provisionsTechnical provisions on own account 7,196 7,530p ,‐ 75% of t/p in unit linked insurance -2,201 ‐2,343Total 4,995 5,187
Solvency ratio % of technical reserves 18.9 25.8
02/11/2011
Mandatum Life Group solvency ratio
25.8%25%
30 %
17.7%
21.3% 20.1%
16.5%18.5% 18.9%20 %
25 %
7 9%10 %
15 %
7.9%
5 %
0 %2004 2005 2006 2007 2008 2009 2010 Sep
2011
02/11/2011
HOLDING
02/11/2011
Holding segment profit before taxes
371 373400
EURm
371343
373336
300350400
1‐9/20101‐9/2011
150200
250
3847
2847
50100150
‐19
‐47
‐19
‐47
‐500
Income Operating Finance costs Nordea Profit before p gcosts taxes
02/11/2011
Sampo plc balance sheet, 30 September 2011, EURm30 September 2011, EURm
Assets total 8,897 Liabilities total 8,897
Liquidity 472 CPs issued 653
Investment assets 38 LT senior debt 1,667
Real estate 4 Private placements 110
Private equity 15 Bonds issued 1,558
Other in estments 19 Pension ins rance loansOther investments 19 Pension insurance loans 0
Subordinated loans 113 Other liabilities 224
Equity holdings 7,928 Subordinated debt 0q y g 0
Subsidiaries (If, ML) 2,370 Capital 6,352
Associated (Nordea) 5,557 Undistributable capital 98
Other assets 346 Distributable capital 6,254
02/11/2011
Net debt in Sampo plc, 30 September 2011
EURmGross debt 2,321Issued senior bonds and notes 1,667Domestic CP’s issued 653Domestic CP s issued 653
Interest bearing assets 585Liquidity (cash and money market) ‐472Subordinated loans (subsidiaries) ‐113
Net debt 1,735
02/11/2011
Debt Instruments 30 Sep 2011 Coupon Swap Current Rate Maturity
Debt structure, Sampo plc, 30 September 2011
Senior Bond 750 EURm 6,3390 % Euribor3M + 4,0565% 5,6125 % 12.4.12
Senior Bond 300 EURm 4,2500 % Euribor3M + 1,4727% 3,0077 % 22.2.2016
Senior Bond 4,000 SEKm Stibor3M + 1,5000% ‐‐‐‐ 4,0000 % 16.9.2013
Senior Bond 200 EURm 3,2500 % ‐‐‐‐ 3,2500% 6.10.2014
CP´s issued 653 EURm ≈Euribor + 0,4500% ‐‐‐‐ ≈2,2500 %
Public debt 2,321 EURm 3,8372 % (3,56%)
Maturity Profile 30 Sep 2011 Key Credit Figures 30 Sep 2011
Private placements 110 EURm 3,1428%
Total Sampo plc, 2,441 EURm ≈3,8060 % (3,54%)
Maturity Profile 30 Sep 2011 Key Credit Figures 30 Sep 2011
Double Leverage (equity holdings / capital) 125%
Equity EURm 6 ,3521,000
1,500
Gross debt to equity 36.5%
Near Term Options0
500
Refinance EUR 750 million
New issues potentially combined with buy‐backs
2011 2012 2013 2014 2015 2016
Sampo CP´s Sampo LT Senior Public
Sampo LT Senior Private IF Hybrids
02/11/2011
NORDEA
02/11/2011
Change in Sampo’s Nordea ownershipll
2% 19.8%
20.1%
20.3%
20.5%
20.5%
20.5%
21.3%
1,000
millionshares
34 800
809
818
830
830
830 860
18.
700800900
73
% .3%
.3%
1.1%
12.2% 15.5%
400500600
96 250
267
267
288 318 40
2
4% 7% 3.1% 3.7%
7.6% 9.6% 10.
10.
11 1100200300400
44
81 97
190.4 1. 3
0100
02/11/2011
Nordea’s book value on Sampo Group consolidated balance sheet, 30 September 2011pNordea in Sampo Group’s B/S EURm
Acquisition price 5,557.3
Retained earnings 336.8
Accumulated other changes in Nordea’s equity 47.9
Share of Nordea’s net profit 392 9Share of Nordea s net profit 392.9
Amortisation ‐26.3
Deferred tax 6.9
Dividends ‐249.5
Share of Nordea’s other comprehensive income ‐37.8
Share of Nordea’s other changes in equity 3.2
Share of Nordea’s goodwill change 9.1
Total 6,040.4Total 6,040.4
EUR 7.02/share
02/11/2011
Sampo’s Nordea stakefair value reserve/valuation differences*)/
87
EURm MTM in FVR Valuation differences
381 588 814
279 85
1 1,0 8
812
400
5001,0001,500
521
7‐1 000‐500
0
759
840
‐5
‐817
5‐2,000‐1,500‐1,000
‐1,7
‐1,8
‐3,000‐2,500
12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11
*) Valuation differences = Nordea MTM ./. consolidation value
02/11/2011
OUTLOOK
02/11/2011
Sampo Group’s outlook for the rest of 2011 • Sampo Group’s profit for full‐year 2011, excluding further impairments, if any, is expected to be good.
• If P&C is expected to achieve its long‐term combined ratio target of below 95 per cent and to report a combined ratio of 92 – 94 per cent for the full‐year 2011.for the full year 2011.
• Nordea's contribution to Group profit is expected to remain significant and to strengthen further as the effects of the efficiencysignificant and to strengthen further as the effects of the efficiency measures (the New Normal Plan) outlined by Nordea start materializing.
•Mandatum Life’s profitability is highly dependent on capital market developments and further turmoil in capital markets can have an d ff h fadverse effect on the profits.
02/11/2011
APPENDIX
02/11/2011
StructureSampo plc
• Parent company for the Group•Market Cap ~ EUR 11 bn*
Sampo plc
21.3%
Nordea Mandatum Life Over 20%
MARKETPOSITION
• The largest pan‐NordicFinancial Services group
• Leading life & pension insurer in Finland, with Baltic operations
• The largest Nordic P&C insurer, second largest in the Baltics
STRATEGY
INVESTMENT ASSETS
• Profit oriented• Cost, Risk & Capital
~ EUR 671 bn B/S*
• Unit‐linked products & Wealth Management
~ EUR 5.3 bn*
• Underwriting focus• Pan‐Nordic synergies
~ EUR 11.1 bn*
RETURN TARGET
• TSR in the top of quartile of European peer group• Risk‐adjusted profit to double in 2006‐2013
• RoE above 17.5%• RoE above 17.5%• CoR below 95%
• RoE above 15%
* September 30, 2011
02/11/2011
History
20072006200520042003200220012000 2009 2010
Sampo Group has gone through several structural changes in its history. The timeline below outlines the major changes in Sampo Group during the 21st century.
201120072006200520042003200220012000 2009 2010 2011
2002 Sampo’s P&C insurance operationsare merged with If. Following the transaction, Sampo owns 38 per cent of If’.
Sampo Insurance Company and Leonia merge intothe Sampo‐Leonia financial services group. The Group’s
MandatumBank joins the Group, and the Group’s name is
Sampo Group divests Sampo Bank Group to Danske Bank A/S.
Following the transaction, Sampo’sbusiness areas are P&C insurance and life insurance. In addition, Sampo plc
Sampo´s Nordea holding exceeds 20% and Nordea becomes an associated company.
Kari Stadigh succeeds Björn Wahlroos as a new Group CEO
Sampo Group´s (If P&C´s)Topdanmarkholding exceeds 20% andTopdanmarkp
2004 If becomes fully owned by Sampo. Following the share transaction, Sampo has three core businesses: P&C insurance banking
g p pbusiness areas are long‐term savings (life insurance, asset management and mutual funds), banking investment
shortened to Sampo.
, p phas investment assets of approximately Eur 5 billion.
p y pbecomes If´s associated company.Group´s holding of Nordea is 21 3%P&C insurance, banking
and long‐term savings.banking, investment banking, and P&C insurance.
is 21.3%,
02/11/2011
P&C insurance ‐ Market shares by country, %
LF29%
Gjen‐sidige
Other20% Pohjola
28%
Lähi‐vakuutus10%
Other8%
Gjen‐
Other21%
Norway Q1/2011 Finland 2010Sweden H1/2011
29%
If
Folksam15%
g1%
28%
If25%
Tapiola
Fennia10%
10%jsidige27%
f
Spare‐bank110%
19%Trygg‐Hansa16%
25%p19%If
25%Tryg17%
Denmark 2010 Baltics Q1/2011 Nordics 2010(RSA)
Codan21%
Other22%
Tryg20%Other
31%
Denmark 2010 Baltics Q1/2011If
18%
Tryg
Other37%
Nordics 2010
If16%
BTA13%Ergo
Gjen‐sidige7%
Seesam7%
Top‐danmark18%
Codan12%
Alm.Brand
Gjen‐sidige
If5%
12%Codan10%
GjensidigeLF9%
Top‐danmark5%
(RSA)
(Pohjola
(RSA)13%14%7%12%Brand
10%6%
j g9%
9%5%
Source:If/Tryg/SFF
02/11/2011
Life insurance ‐ Market shares by country, %
Finland H1/2011
FenniaAktia3%
Other8%
Gjensidige Forsikring
4%
If0%
Other9%
Norway Q1/2011 Sweden H1/2011(Danske)
(Storebrand)Skandia14%SHB SPP
Danica4% Other
2%
OP Life27%
Nordea
Tapiola9%
Fennia3%
Vital Forsikring31%
Nordea Liv
Sparebank1 Livforsikring
4%
(DnB)
(Storebrand) 14%SEB Trygg
Liv10%
Folksam10%LF
Nordnet6%
Alecta6%
SHB5% 4%
Mandatum Life23%
27%
Storebrand Livforsikring
28%
KLP15%
Nordea Liv8%
(DnB) 10%Swedbank Försäkring
9%AMF Pension
8%
Avanza8%
Nordea Liv7%
LF7%
6%
Baltics Q2/2011
PFA Pension, Other, 32
Denmark* 2010Mandatum
Life19% M d23%
DanicaPension, 17%
Topdanmark, 4%
19% Mandatum Life32%
(Danske)
Nordea Pension, 10%
Sampension, 9%
SEB, 5%
*Exposed to competition
Total Unitlinked
02/11/2011
Sampo Group profit and loss account by quarters
EURm Q3/11 Q2/11 Q1/11 Q4/10 Q3/10
Insurance premiums written 985 1,211 1,736 1,127 1,007N i f i 324 119 266 342 304Net income from investments ‐324 119 266 342 304Other operating income 8 7 8 11 6
Claims incurred ‐897 ‐908 ‐934 ‐886 ‐855Change in liab. for insurance and investment contracts 554 82 ‐537 ‐62 25Staff costs ‐133 ‐132 ‐141 ‐133 ‐135Other operating expenses ‐135 ‐137 ‐129 ‐162 ‐125
Finance costs 13 ‐18 ‐35 ‐29 ‐30Share of associates' profit/loss 80 145 152 152 140
Profit for the period before taxes 150 369 387 361 338Taxes ‐25 ‐60 ‐62 ‐59 ‐55
Profit for the period 125 310 325 302 284Profit for the period 125 310 325 302 284
02/11/2011
P&C insurance profit and loss account by quarters
EURm Q3/11 Q2/11 Q1/11 Q4/10 Q3/10
Insurance premiums written 817 983 1,520 843 784Net income from investments ‐51 110 171 146 104Other operating income 8 7 9 7 6Claims incurred ‐709 ‐689 ‐712 ‐672 ‐660Ch i li b f i d i t tChange in liab. for insurance and investment contracts 211 34 ‐517 148 197Staff costs ‐124 ‐118 ‐127 ‐120 ‐123Other operating expenses ‐124 ‐125 ‐115 ‐156 ‐115Finance costs 14 ‐5 ‐7 ‐8 ‐7Share of associates' profit/loss 0 3 0 0 0
Profit for the period before taxes 43 200 221 188 186
Taxes ‐11 ‐50 ‐59 ‐50 ‐52
Profit for the period 32 150 162 138 134
02/11/2011
Life insurance profit and loss account by quarters
EURm Q3/11 Q2/11 Q1/11 Q4/10 Q3/10
Insurance premiums written 168 228 216 284 223276 7 96Net income from investments ‐276 7 96 205 195
Other operating income 1 0 0 0 0
Claims incurred ‐189 ‐219 ‐222 ‐214 ‐195
Change in liab. for insurance and investment contracts 342 48 ‐19 ‐210 ‐172Staff costs ‐8 ‐10 ‐10 ‐10 ‐8Other operating expenses ‐13 ‐12 ‐15 ‐12 ‐10p g p
Finance costs ‐2 ‐2 ‐3 ‐2 ‐2Share of associates' profit/loss 0 0 0 0 0
Profit for the period before taxes 23 40 44 42 31Profit for the period before taxes 23 40 44 42 31
Taxes ‐6 ‐9 ‐10 ‐12 ‐8
Profit for the period 17 31 33 29 24
02/11/2011
Holding segment profit and loss account by quartersEURm Q3/11 Q2/11 Q1/11 Q4/10 Q3/10
Insurance premiums written ‐ ‐ ‐ ‐ ‐Net income from investments 7 6 4 3 9Other operating income 4 4 4 5 4
Claims incurred ‐ ‐ ‐ ‐ ‐
Change in liab. for insurance and investment contracts ‐ ‐ ‐ ‐ ‐Staff costs ‐1 ‐4 ‐4 ‐3 ‐3Other operating expenses ‐3 ‐4 ‐3 ‐3 ‐2p g p
Finance costs ‐2 ‐14 ‐30 ‐22 ‐26Share of associates' profit/loss 80 142 152 152 140
Profit for the period before taxes 85 130 122 132 121
Taxes ‐8 0 8 3 5
Profit for the period 77 129 130 135 126