SAMPO PLC STOCK EXCHANGE RELEASE
13 February 2007, at 9.30 a.m.
SAMPO GROUP´S RESULTS FOR 2006 AND DIVIDEND PROPOSAL
A year of structural change and excellent profitability
Sampo Groups profit before taxes for 2006 amounted to EUR 1,353
million (1,295). Earnings per share rose to EUR 1.73 (1.68) and at
market value earnings per share were EUR 1.89 (1.97). Net asset
value per share rose to EUR 9.21 (7.67). The RoE target of 19 per
cent was surpassed with a return on equity for the Group of 22.6
per cent (28.4). The Board proposes to the AGM a dividend of EUR
1.20 per share and an authorisation to repurchase Sampo shares.
- The combined ratio for P&C insurance decreased to 89.9 per cent
for the full year 2006 (90.5). Net investment income amounted to
EUR 358 million (460). RoE exceeded the target of 17.5 per cent
and was 22.0 per cent (24.1).
- Life insurance reported a 26 per cent increase in profit before
taxes, which amounted to EUR 295 million (234). The fair value
reserve increased by EUR 68 million and was EUR 464 million (after
tax) on 31 December 2006 (396). RoE clearly surpassed the target
of 17.5 per cent and was 30.0 per cent (39.0).
- For the last time Sampo reports earnings for the banking and
investment services. In November 2006 Sampo plc sold all Sampo
Bank plcs shares to Danske Bank A/S for a cash consideration of
4,050 million euros. The transaction was closed on 1 February 2007
and Sampo Group will book a sales gain of approximately EUR 2.9
billion from the transaction. The tax-free sales gain will be
reported in the first quarter 2007 accounts.
- In 2006 profit before taxes for banking and investment services
rose to EUR 355 million (316). Net interest income and fees and
commissions continued to develop favourably. RoE for banking and
investment services rose to 23.8 per cent (23.1) and exceeded the
target of 20 per cent.
KEY FIGURES Change Q4 Q4 Change
EUR m 2006 2005 % 2006 2005 %
Profit before taxes 1,353 1,295 +4 334 288 +16
P&C insurance 730 800 -9 227 174 +30
Life insurance 295 234 +26 51 48 +6
Other -27 -49 +45 -16 -14 -14
Banking 355 316 +12 76 86 -12
Profit for the period 991 963 +3 241 225 +7
Earnings per share, EUR 1.73 1.68 +3 0.42 0.39 +8
Dividend per share, EUR 1.20 0.60 +100 - -
**)
EPS(incl. change in FVR) 1.89 1.97 -4 0.68 0.33 +106
EUR
NAV, EUR * ) 9.21 7.67 +20 - - -
Average number of staff 11,65 11,73 -1 - - -
(FTE) 7 0
Group solvency ratio, % 202.7 196.1 +3 - - -
RoEC, % 31.4 35.0 -10 - - -
RoE, % 22.6 28.4 -20 - - -
* ) Less full deferred tax.
**) Year 2006 figure is the Board of Director's dividend
proposal.
FOURTH QUARTER IN BRIEF
Sampo Group reported a profit before taxes of EUR 334 million
(288) for the final quarter of 2006. Earnings per share amounted
to EUR 0.42 (0.39). Taking the change in the fair value reserve
into account, earnings per share were EUR 0.68 (0.33). The
increase in net asset value per share from the end of the third
quarter was EUR 0.93 and net asset value per share rose to EUR
9.21.
The P&C insurance operations technical result for the fourth
quarter of 2006 was excellent and the combined ratio was 89.9 per
cent (87.6). Profit before taxes amounted to EUR 227 million
(174). Net investment income grew to EUR 132 million (59).
Life insurance premiums written rose to EUR 238 million (217).
Life operations reported a profit before taxes of EUR 51 million
(48).
The segment Other reported a loss before taxes of EUR 16 million
in the final quarter of 2006 (-14).
Profit before taxes for the Banking and investment services was
EUR 76 million (86) in the fourth quarter of 2006. The comparison
figure contains a one-off sales gain of EUR 24 million. Net
interest income grew to EUR 98 million (91) and net fees and
commissions to EUR 71 million (55).
BUSINESS AREAS IN 2006
P&C insurance
If is the leading property and casualty insurance company in the
Nordic region, with insurance operations that also encompass the
Baltic countries. If P&C Insurance Holding Ltd, headquartered in
Sweden, is the parent company for property and casualty insurance
within the Sampo Group. In December 2006 the transformation of the
former representative office in St. Petersburg to an insurance
company was completed as a licence to conduct insurance business
in Russia was received.
RESULTS 1-12 1-12 Change Q4 Q4 Chang
e
EUR m 2006 2005 % 2006 2005 %
Insurance premiums 3,765 3,709 +2 953 944 +1
earned
Net income from 358 460 -22 132 59 +124
investments
Other operating income 23 18 +28 7 4 +75
Claims incurred - -2,457 +1 -599 -601 0
2,480
Staff costs -431 -447 -4 -121 -126 -4
Other expenses -505 -484 +4 -145 -107 +36
Profit (loss) before 730 800 -9 227 174 +30
taxes
KEY FIGURES
Combined ratio, % 89.9 90.5 -1 89.9 87.6 +3
Risk ratio, % 65.9 66.2 0 62.8 63.7 -1
Cost ratio, % 24.0 24.3 -1 27.1 23.9 +13
Expense ratio, % 17.4 17.8 -2 19.7 17.7 +11
Return on equity, % 22.0 24.1 -9 - - -
Average number of staff 6,428 6,592 -2 - - -
(FTE)
If had a strong year 2006 and the company achieved all its
targets. Despite some competitors market share driven actions, If
has continued its strategy to be best in risk and focused on
underwriting. Ifs record insurance technical result and stable
volume development prove the success of the chosen strategy. If
has also managed to further improve its cost efficiency.
Customer satisfaction improved during year 2006. An independent
Pan-Nordic customer satisfaction report (EPSI) was published in
November, and showed a significant increase in Ifs ranking from
previous year against the competitors in most markets and business
segments.
Profit before taxes of the P&C insurance operation was EUR 730
million (800). The technical result rose to EUR 554 million (516).
Business area Private accounted for 54 per cent, Commercial for 29
per cent, Industrial for 13 per cent and the Baltic countries for
2 per cent of the technical result. EUR 65 million was released
from technical reserves relating to prior year claims (39).
The insurance margin - technical result in relation to net
premiums earned - increased to 14.7 per cent (13.9). The target
RoE of 17.5 per cent was clearly achieved with RoE of 22.0 per
cent (24.1).
The combined ratio for the full year 2006 improved further to 89.9
per cent (90.5). Profitability remained good in all business
areas. In geographic terms the biggest combined ratio improvement
occurred in Finland.
The overall market environment in Nordic P&C insurance was
favourable during 2006 and competitive behaviour was mostly
disciplined. In the private segment, competition intensified in
certain business lines in Norway and Finland. Competition is based
on pricing, and the strict underwriting focus has lead to somewhat
lower growth. The commercial market was mostly stable, but there
were some signs of increased competition in Sweden. In the
industrial segment the competitive situation was stable.
Cost efficiency continued to improve and the cost ratio decreased
to 24.0 per cent for full year 2006 (24.3). Nominal costs amounted
to EUR 936 million (931). As stated in January-September 2006
interim report, there was variability in costs between quarters
due to some IT investments and marketing campaigns being delayed
until the fourth quarter. Consequently, the cost ratio was
exceptionally low in the third quarter and high in the fourth
quarter.
Gross written premiums grew by 1.5 per cent to EUR 4,019 million
(3,961).
Premium growth was again strongest in the Baltics with 16 per
cent. Premiums grew by 2 per cent in the business areas Commercial
and Industrial. Premium income was flat in business area Private.
On 31 December 2006 the total investment assets of If amounted to
EUR 10.1 billion, of which 89 per cent was invested in fixed
income instruments (88), 10 per cent in equity (10) and 1 per cent
in other assets (2). Net investment income for the full year
amounted to EUR 358 million (460). Investment income was lower
than previous year, due to rising interest rates during the first
half of 2006. Development in the second half of the year was
favourable, and investment income in the third and fourth quarter
was higher than a year before. Investment income in the fourth
quarter rose to EUR 132 million (59), largely because of the good
performance of equity investments. The return on investments for
year 2006 was 4.3 per cent (5.8). At year end the duration for
interest-bearing assets equalled 3.0 years.
Solvency capital amounted to EUR 2,841 million on 31 December 2006
(3,216). The solvency ratio - solvency capital in relation to net
premiums written - was 74 per cent (88). Reserve ratios remained
stable and reserves were 159 per cent (157) of net premiums
written and 254 per cent of claims paid (256). In December If paid
a EUR 452 million dividend to parent company Sampo plc, which
decreased solvency capital. During year 2006 If paid dividends in
total EUR 1,031 million.
Personal insurance is an important growth area for If and several
risk and health products continue to sell well. Since the launch
of these products in 2005 almost 200,000 contracts have been
signed.
During year 2006 If strengthened its leading market position in
the car-branded insurance market and signed several important co-
operation and distribution agreements. If co-operates with Ford
(brands Ford, Volvo and Mazda) in all the Nordic countries and
with General Motors (Saab and Opel among others) in Sweden,
Denmark and Finland. In March If concluded an agreement to sell
home insurance products through the Swedish housing finance
corporation SBAB.
In May 2006 If announced its aim to upgrade its presence in Russia
by establishing a P&C insurance company in St. Petersburg where If
has had a representative office. The licence was approved in
December 2006. By upgrading its presence, If aims to give even
better service to corporate customers in the growing Russian
market.
In October 2006 If entered a partnership with Handelsbanken Liv to
expand its product range in Norway's compulsory company pensions
system (OTP pension system). If will strengthen its focus by
offering additional insurance covering both disability and child
pension. As part of this process, Sampo Life Insurance Company
Limited sold its Norwegian OTP pension portfolio to Handelsbanken
Liv.
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 has a subsidiary in
Sweden to complement the product offering of If P&C.
Results Chang Q4 Q4 Change
e
EUR m 2006 2005 % 2006 2005 %
Premiums 660 649 +2 238 217 +10
Net income from 593 586 +1 186 144 +29
investments
Other operating income 1 2 -50 0 0
Claims incurred -550 -557 -1 -153 -110 +39
Change in liabilities -345 -390 -12 -201 -186 +8
for
inv. and ins. contracts
Staff costs -19 -18 +6 -4 -5 -20
Other operating expenses -45 -39 +15 -15 -13 +15
Profit (loss) before 295 234 +26 51 48 +6
taxes
Key figures
Expense ratio, % 101.9 93.4 +9 - - -
Return on equity, % 30.0 39.0 -23 - - -
Average number of staff 365 370 -1 - - -
(FTE)
Sampo Groups life operations reported a profit before taxes of
EUR 295 million (234). Marked-to-market result was EUR 386 million
(464) as the fair value reserve grew by EUR 91 million (pre-tax)
in 2006. Net investment income, excluding the return on
investments covering unit-linked contracts, amounted to EUR 454
million (430). Net income from unit-linked investments grew to EUR
139 million (156). The yield on investments at market value was
9.7 per cent (11.5) supported by favourable equity market
development.
In Sampo Group life insurance has an RoE target of 17.5 per cent,
which was easily surpassed as the RoE was 30.0 per cent (39.0).
The investment assets of life operations, excluding the assets of
EUR 1.8 billion (1.3) covering unit-linked contracts, amounted to
EUR 5.9 billion (5.9) at market values on 31 December 2006. Fixed
income covered 66 per cent (64), equity 31 per cent (33) and real
estate 2 per cent (3) of total assets. Equity investments include
direct equity holdings, equity funds and private equity.
The official expense ratio of Sampo Life Group increased to 101.9
per cent (93.4). The ratio, however, does not take into account
all fees intended to cover the operating expenses. This
discrepancy increases as the share of unit-linked reserves grows.
If all fees are taken into account, the ratio decreases to 81.3
per cent (83.5). Sampo Life Group does not defer acquisition
costs.
Sampo Life Groups solvency remained strong. The solvency capital
amounted to EUR 1,033 million (1,077) and solvency ratio was 20.1
per cent (21.3) on 31 December 2006.
Technical reserves on own account amounted to EUR 6.4 billion
(6.0), of which unit-linked insurance reserves were EUR 1.8
billion (1.3). The share of unit-linked reserves of total
technical reserves grew to 27 per cent (21). Sampo Lifes with-
profit policyholders received a bonus of 0 - 2.25 per cent
depending on the guaranteed rate of their policies. Total bonuses
for 2006 amounted to EUR 26.7 million (15.7). Reserve for future
customer bonuses was increased by EUR 35.2 million and the reserve
amounted to 35.6 million (13.7) at end of 2006.
Sampo Life Groups gross premium income in 2006 amounted to EUR
665 million (655). Direct premiums on own account grew by
approximately 2 per cent to EUR 660 million (649). The comparison
figure contains two single premium with-profit contracts
transferring the liabilities of two pension funds to Sampo Life
and totalling close to EUR 100 million in premiums.
Sampo Life Groups focus in 2006 was on strengthening its market
position in unit-linked insurance. Unit-linked premiums grew by
almost 50 per cent to EUR 429 million (288) and consequently Sampo
Lifes market share in the Finnish unit-linked insurance increased
to 25.2 per cent (20.8). Unit-linked premiums covered 65 per cent
of total direct premiums (43). The share of regular premiums also
increased and was 60 per cent (55). Sampo Lifes overall market
share in Finland was 20.4 per cent (20.2).
Baltic life markets continued their strong growth. Sampo Lifes
premiums from the Baltic companies grew by 81 per cent to EUR 38
million (21). Sampo has a 15 per cent market share in the Baltics.
Year 2006 was the first full operating year for If Livförsäkring
AB, the Swedish subsidiary of Sampo Life. The companys premium
income amounted to EUR 3 million. In October 2006 Sampo Life sold
its portfolio of Norwegian OTP pension policies to Handelsbanken
Liv.
Other
The operations of Sampo plc (the holding company) and Primasoft
were reported in this segment in 2006. Sampo plcs main function
in 2006 was to own and control the subsidiaries engaged in
insurance, banking and investment services. Primasoft provided IT
services for various companies in Sampo Group.
Results Chang Q4 Q4 Change
e
EUR m 2006 2005 % 2006 2005 %
Net interest income -42 -39 +8 -9 -10 -10
Net income from -5 0 - -
financial transactions -5 0
Fees and commissions, -1 -1 0 0 0 -
net
Impairment losses 2 -2 - 0 0 -
Net income from 18 15 +20 4 3 +33
investments
Other operating income 95 76 +25 16 19 -16
Staff costs -38 -44 -14 -9 -13 -31
Other operating expenses -56 -55 +2 -12 -14 -14
Profit (loss) before -27 -49 +45 -16 -14 -14
taxes
The segments loss before taxes amounted to EUR 27 million (-49).
Sampo plcs balance sheet has strengthened significantly in 2006
because of sizable internal dividends which amounted to EUR 1.4
billion. The liabilities to external creditors were EUR 1 billion
on 31 December 2006 and equity capital amounted to EUR 3.5
billion. Sampo plcs balance sheet total was EUR 4.5 billion
(3.6). Of this amount, holdings in banking and investment services
companies accounted for EUR 0.8 billion (0.8) and holdings in
insurance companies for EUR 2.4 billion (2.4). Liabilities include
two debt instruments - a subordinated note and a senior note with
face values of EUR 600 million and EUR 300 million respectively.
The latter which after repurchases amounts to EUR 191 million will
be repaid in April 2007.
Primasoft had a negligible impact on the profit or loss of the
Other segment.
Banking and investment services (Discontinued operations)
Banking and investment services comprises Sampo Bank Group, which
Sampo plc sold to Danske Bank A/S on 9 November 2006. The
transaction was closed on 1 February 2007. Sampo Bank plc operates
mainly in Finland and through subsidiaries in all the Baltic
countries and in St. Petersburg in Russia. Sampo Banks main
subsidiaries are Sampo Fund Management Ltd, Mandatum Asset
Management Ltd, Mandatum Securities Ltd (former Mandatum
Stockbrokers Ltd), Mandatum & Co Ltd, 3C Asset Management Ltd and
Arvo Asset Management Ltd.
Results 1-12 1-12 Change Q4 Q4 Change
EUR m 2006 2005 % 2006 2005 %
Net interest income 374 346 +8 98 91 +8
Net income from 65 +37 16 +69
financial transactions 89 27
Net fee and commission 260 221 +18 71 55 +29
income
Net impairment item -2 3 - 0 -4 -
Net Income from 57 46 +24 3 10 -70
investments
Other operating income 37 60 -38 13 37 -65
Staff costs -219 -200 +10 -70 -58 +21
Other operating expenses -240 -224 +7 -65 -61 +7
Profit (loss) before 355 316 +12 76 86 -12
taxes
Key figures
Cost to income ratio, % 56.3 57.3 -2 - - -
Return on equity, % 23.8 23.1 +3 - - -
Average number of staff 4,429 4,20 +5 - - -
(FTE) 1
Banking and investment services performed well and profit before
taxes for the year 2006 increased 12 per cent to EUR 355 million
(316). Return on equity amounted to 23.8 per cent (23.1), clearly
above the target RoE of 20 per cent.
Profit before taxes for the year 2006 includes one-off sales gains
worth EUR 40 million. Comparison figure includes one-off sales
gains worth EUR 58 million.
Net interest income rose to EUR 374 million (346). Net fee and
commission income grew to EUR 260 million (221) driven by strong
growth in asset management fees.
Total operating costs amounted to EUR 459 million (425). Growth in
costs derives largely from provisions for performance-related
management incentive schemes and strong growth in the Baltic
operations. Costs in the fourth quarter include EUR 18 million in
various bonus and incentive scheme costs, largely due to the sale
of Sampo Bank. Cost-to-income-ratio continued to improve and was
56.3 per cent (57.3).
Loans and advances to customers increased by 14 per cent from year-
end 2005 and totaled EUR 21,084 million (18,484). Growth in
mortgages continued and the stock rose year-on-year 19 per cent to
EUR 9,685 million. Rapid growth continued in consumer credits. At
the end of the year loans to private customers represented 59 per
cent and loans to corporate customers 41 per cent of the total
loan portfolio. Corporate lending increased to EUR 8,743 million
(8,130).
Geographically the Baltic countries continued to provide the
fastest growth in both lending and deposits. The Baltic loan stock
rose to 2.4 billion euros (1.4).
Credit quality remained firm and net impairment losses on loans
and receivables was EUR -2 million (3).
Deposits amounted to EUR 12,598 million increasing 10 per cent
from year end 2005 (11,442).
Rapid growth continued in mutual fund assets, which rose 25 per
cent from year-end 2005 to EUR 11,118 million. Net subscriptions
in Sampos mutual funds in year 2006 year amounted to EUR 1,487
million. Mutual fund assets include EUR 1,020 million of Sampo
Group investments (1,226), representing 9 per cent of total assets
(14).
Sampo Bank Group's capital adequacy was 11.9 (10.6) per cent at
the end of 2006 and the tier 1 ratio was 8.3 (7.6) per cent. Tier
1 capital rose to EUR 1,481 million (1,255). Risk-weighted assets
on 31 December 2006 were EUR 17,847 million (16,466).
Other developments in 2006
Changes in Group structure
Sampo Group underwent a major structural change during year 2006
when banking and investment services companies were disposed. On 9
November, 2006 Sampo plc announced that it had agreed to sell all
shares of Sampo Bank Group to Danske Bank A/S for a cash
consideration of EUR 4,050 million. In addition Sampo Bank paid a
dividend of EUR 25 million to Sampo plc in December 2006. Sampo
Group booked a tax free sales gain of approximately EUR 2.9
billion in the first quarter of 2007. The necessary authority
approvals were obtained, and the transaction was closed on 1
February, 2007.
After the transaction Sampo Groups other business areas, P&C
insurer If and life insurance company Sampo Life, continue to
follow their current strategies. As part of the transaction, Sampo
Life and Danske Bank made an agreement securing continued
distribution of Sampo Lifes products through Sampo Bank.
If P&C Insurance Holding Ltd announced in May 2006 its aim to
upgrade its presence in Russia by establishing a P&C insurance
company in St. Petersburg. If has had a representative office in
St. Petersburg since 1995. In December 2006 Russian supervisory
authority approved Ifs licence application. By upgrading its
presence, If aims to give even better service to corporate
customers in the growing Russian market.
After the reporting period, on 2 January 2007, Sampo Life
Insurance Company Ltd announced that it combines its Baltic
subsidiaries under one company, SE Sampo Life Insurance Baltic.
The company will operate in all Baltic countries having its
domicile in Estonia and branches in Latvia and Lithuania.
Administration
After the closing of Sampo Bank transaction on 1 February 2007
Banks managing director Mika Ihamuotila resigned from his
position. He continues as a member of Sampo Groups Executive
Board. Deputy managing directors Ilkka Hallavo and Maarit Näkyvä
resigned from Sampo Groups Executive Board on the same day with
immediate effect.
Changes in share capital
The Board decided on 11 May 2006 to repurchase a maximum of 15
million Sampo A shares. Shares were to be repurchased by 31
December 2006 at the latest. Repurchases started on 31 May 2006
and 4,827,500 A shares was bought by 31 December 2006. EUR 73.1
million was used to acquire the shares. The shares held by Sampo
plc corresponded to 0.8 per cent of the total amount of shares and
votes at 31 December 2006. The repurchased shares correspond to
EUR 0.8 million in share capital.
A total of 3,299,830 subscriptions of shares with the warrants of
2000 option programme were submitted to the Board and approved in
2006. The subscriptions increased the share capital by EUR 0.6
million. Furthermore, subscriptions with the warrants of the 2000
option programme for 14,682,640 A shares were entered into the trade register
on 3 January and 12 January 2007. As the subscriptions were
already submitted in 2006, the new shares are entitled to
dividends for the year 2006.
At 31 December 2006 Sampo plc's share capital amounted to EUR 95.5
million, and the number of A shares totalled 566,418,145. The
total number of shares of the company, including 1,200,000 B
shares, was 567,618,145.
The subscription period for the 2000 option programme ended on 31
January 2007. On 31 December 2006 1,242,456 warrants were
outstanding, of which Satura, a fully-owned subsidiary of Sampo
plc, held 1,030,250 warrants. In January 2007 1,057,605 shares
were subscribed for increasing the share capital to EUR 98.1
million and the number of A shares to 582,158,390 shares. Together
with 1,200,000 B shares the total amount of Sampo shares on 12
February 2007 was 583,358,390.
To facilitate the payment of year 2006 dividends, a new share
category called Sampo Uudet (Sampo New) was taken on the main list
of the Helsinki Stock Exchange as of 2 January 2007. The Sampo A
shares subscribed for with warrants from the 2000 option programme
after 31 December 2006 are entitled to dividends for 2007.
Internal dividends
Sampo plc received in 2006 a total of EUR 1,406 million in
dividends from its subsidiary companies.
Sampo Bank plc EUR 75 million
If P&C Insurance Holding Ltd EUR 1,031 million (SEK 9,495
million)
Sampo Life Insurance Ltd EUR 300 million
Staff
The number of full-time equivalent staff increased in 2006 by 136
employees to 11,763 employees at 31 December. Of the staff, 39 per
cent worked in banking and investment services, 54 per cent in P&C
insurance, 3 per cent in life insurance, 1 per cent in the holding
company and 3 per cent in Primasoft. Geographically, 51 per cent
worked in Finland, 15 per cent in Sweden, 14 per cent in Norway,
16 per cent in the Baltic countries, 3 per cent in Denmark and 1
per cent in other countries. The staff decreased in P&C insurance
and Primasoft, but increased in banking mostly due to growth in
the Baltic subsidiaries. The average number of employees during
2006 was 11,657, compared with 11,730 during 2005.
Management incentive schemes
The payout on Sampo Groups long-term management incentive schemes
is dependent on Sampos financial and share price performance.
The incentive schemes 2003I - 2006II extend to 2010. The incentive
schemes increased staff costs in 2006 by EUR 29 million (28) and
on 31 December 2006 the total provision, including social security
costs, for the schemes was EUR 53 million (38).
The Annual General Meeting decided on 5 April 2006 to approve the
"Sampo 2006" share-based incentive scheme. The "Sampo 2006" share-
based incentive scheme applies to the managers of Sampo or its
subsidiaries and Sampos President and CEO as decided by Sampos
Board of Directors. The aim of this scheme is to ensure
continuity, taking into account previous incentive schemes, their
termination, and the persons current long-term incentive schemes.
The share-based incentive scheme will be valid from 2006 to 2010,
and the first part of the incentive will be paid, if applicable,
in December 2008. A maximum of 1,500,000 of Sampos A shares may
be distributed as incentives under the share-based incentive
scheme. The share-based incentive scheme increased staff costs in
2006 by EUR 5 million
The terms of the share-based incentive scheme and other incentive
schemes are available on Sampos web pages at www.sampo.com.
Ratings
All the main ratings for Sampo Group companies remained unchanged
in 2006 and were the following on 31.12.2006.
Rated company Moodys Standard and Poors
Rating Outlook Rating Outlook
Sampo plc Baa1 Positive Not rated -
Sampo Bank plc A1/P-1 Stable A/A-1 Stable
AS Sampo Pank A2*/P1 Positive Not rated -
(Estonia)
If P&C Insurance A2 Positive A Stable
(Sweden)
If P&C Insurance Co. A2 Positive A Stable
(Finland)
* Long-term bank
deposit
On 3 April 2006 Moodys upgraded AS Sampo Panks (Estonia)
Financial Strength Rating (FSR) from D to D+ with stable outlook.
On 18 May 2006 Moodys assigned a positive outlook to the
financial strength ratings and subordinated debt/capital
contribution securities ratings of If P&C Insurance Company Ltd
and Sampo plc.
Group solvency
Group solvency is calculated according to the consolidation method
defined in the Chapter 3 of the Act of the Supervision of
Financial and Insurance
Conglomerates, which entered into force on 1 January 2005. In the
consolidation method items, which according to bank or insurance
regulations are part of own funds but not equity, are added to
groups balance sheet equity. Items, which are not available to
cover losses in other group companies, are, however, not included
in own funds.
The Groups solvency ratio (own funds in relation to minimum
requirements for own funds) on 31 December 2006 was 202.7 per cent
(196.1).
SAMPO GROUP SOLVENCY, EUR m 31.12.2005
31.12.2006
Group capital 5,189.5 4,348.1
Sectoral items 3,134.2 2,733.1
Intangibles and sectoral -2,254.5
deductibles -2,717.7
Other sectoral non-transferable -493.8
items -784.8
Group's own funds, total 4,821.2 4,332.9
Minimum requirements for own 2,209.3
funds, total 2,378.2
Group solvency 2,442.9 2,123.6
Group solvency ratio
(Own funds % of minimum 202.7% 196.1%
requirements)
Events after the end of the accounting year
On 8 February 2007 Sampo received disclosure under chapter 2,
section 9 of the Securities Markets Act, according to which Exista
hf. has entered into agreements which when implemented result in
the total number of Sampo A shares and related voting rights held
by Exista Group to rise to 15.48 per cent of Sampo plc's entire
stock and 15.35 per cent of voting rights.
Outlook for 2007
The world economy has fared well and equity prices have continued
to move upwards for the past four years. Uncertainties, however,
still exist and continued steady development cannot be taken for
granted.
Even if equity performance proves less impressive than in 2006,
Sampo Group is expected to report a good result as both its
insurance businesses are operationally in excellent shape and
higher interest rates will boost the fixed income yields.
The role of Sampo plc, the parent company, changed markedly after
the closing of the Sampo Bank transaction. With the sales proceeds
of 4,050 million euro and the sizable internal dividends paid in
2006, Sampo plc has become a significant investor. Its assets are
presently mainly invested in short-term fixed income instruments.
Sampo Groups P&C insurance operation If is expected to report a
sound technical result for 2007. If remains firmly committed to
its target of achieving a combined ratio of 95 per cent or better
each and every year. Favourable claims trends and low cost levels
warrant more positive expectations for 2007 and If foresees to
achieve a combined ratio between 91 and 94 per cent. Due to higher
interest rates its fixed income portfolio is likely to yield
substantially more than in 2006 and overall the result is expected
to remain good. The RoE target for P&C insurance operations is
17.5 per cent.
Sampo Life Groups marked-to-market result is highly dependent on
capital market development. However, it possesses substantial
reserves to withstand market volatility and its 2007 reported
profit is therefore expected to remain good in most foreseeable
scenarios. Both in Finland and in the Baltics Sampo Life continues
to focus on unit-linked insurance and on selected risk policies.
The RoE target for the life insurance operation is 17.5 per cent.
Sampo Group is strongly capitalised and can therefore withstand
significant investment market volatility. A severe downturn in
equity markets or a sharp rise in interest rates would cause short-
term losses in investment income. However, higher bond yields
would compensate for the losses in a relative short time as the
Group has a fairly short duration in its fixed income portfolios.
New distribution policy
The Board of Sampo plc announced on 9 November 2006 a new
distribution policy to be applied with immediate effect. According
to the new 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.
Boards dividend proposal
Parent companys distributable capital and reserves totalled EUR
1,842,371,518.67, of which profit for the financial year was EUR
1,391,100,144.87.
The Board proposes to the Annual General Meeting that the
distributable funds are used as follows:
For the financial year 2006 a dividend of EUR 1.20 per share be
paid on the companys 577,473,285 shares. The number of shares
includes 14,682,640 shares converted in 2006 with warrants. The new shares
were entered into the trade register on 3 and 12 January 2007.
Dividends are not paid on the 4,827,500 Sampo A shares that Sampo plc held at 31
December 2006. The total amount of dividends is EUR
692,967,942.00.
Rest of the funds are left in the equity capital.
No significant changes have taken place in the companys financial
position since the end of the financial year. The companys
liquidity position is good and the proposed distribution does not,
in the Boards view, jeopardize the companys ability to fulfil
its obligations.
SAMPO PLC
Board of Directors
For more information, please contact:
Peter Johansson, CFO, tel. +358 10 516 0010
Jarmo Salonen, Head of Investor Relations and Group
Communications, tel. +358 10 516 0030
Sampo will arrange a Finnish language press conference on the 2006
results at Unioninkatu 22, Helsinki, today at 1.30 p.m. Finnish
time. An English-language telephone conference for investors and
analysts will be held at 4.00 p.m. Finnish time. Please call +44
(0) 20 7162 0125 (UK/European) or +1 334 323 6203 (North
American). Password: SAMPO.
The 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.
Sampo plc, Sampo Bank plc, If P&C Insurance Holding Ltd and Sampo
Life Ltd will publish their annual reports for 2006 in week 13.
Sampo will publish the first quarter 2007 interim report on 9 May
2007.
DISTRIBUTION:
The Helsinki Stock Exchange
The principal media
www.sampo.com
Financial Supervisory Authority
GROUP FINANCIAL REVIEW
FINANCIAL HIGHLIGHTS 1-12/2006 1-12/2005
GROUP
Revenue EURm 7,159 6,843
Profit before taxes EURm 1,353 1,295
% of revenue % 18.9 18.9
Return on equity (at fair % 22.6 28.4
value)
Return on assets (at fair % 4.0 4.4
value)
Equity/assets ratio % 10.9 10.1
RoEC % 31.4 35.0
Group solvency ¹) % 2,443 2,124
Group solvency ratio % 202.7 196.1
Average number of staff 11,657 11,730
PROPERTY & CASUALTY
INSURANCE
Revenue EURm 4,361 4,398
Premiums written before EURm 4,019 3,962
reinsurers' share
Premiums earned EURm 3,765 3,709
Profit before taxes EURm 730 800
% of revenue % 16.7 18.2
Return on equity (at current % 22.0 24.1
value)
Risk ratio ²) % 65.9 66.2
Cost ratio ²) % 24.0 24.3
Loss ratio ²) % 73.9 74.1
Loss ratio before unwinding % 72.5 72.7
of discount ²)
Expense ratio ²) % 17.4 17.8
Combined ratio % 91.3 91.9
Combined ratio before % 89.9 90.5
unwinding of discount
Average number of staff 6,428 6,592
LIFE INSURANCE
Revenue EURm 1,254 1,240
Premiums written before EURm 665 655
reinsurers' share
Profit before taxes EURm 295 234
% of revenue % 23.5 18.8
Return on equity (at current % 30.0 39.0
value)
Expense ratio % 101.9 93.4
Average number of staff 365 370
OTHER BUSINESS
Profit before taxes EURm -27 -49
Average number of staff 435 567
BANKING AND INVESTMENT SERVICES (discontinued
operations)
Revenue EURm 1,423 1,105
Net interest income EURm 374 346
Profit before taxes EURm 355 316
% of revenue % 25.0 28.6
Cost to income ratio % 56.3 57.3
Return on equity (at fair % 23.8 23.1
value)
Average number of staff 4,429 4,201
PER SHARE KEY FIGURES
Earnings per share EUR 1.73 1.68
Earnings per share, incl. EUR 1.89 1.97
change in fair value reserve
Diluted earnings per share EUR 1.69 1.65
³)
Equity per share EUR 9.18 7.65
Net asset value per share EUR 9.21 7.67
Adjusted share price, high EUR 20.74 14.95
Adjusted share price, low EUR 13.58 9.83
Market capitalization EURm 11,413 8,312
¹) Group solvency is calculated according to the consolidation
method defined in Chapter 3 of the Act on the Supervision of
Financial and Insurance Conglomerates, which entered into force on
1 January 2005. Solvency ratio is defined as the ratio of own
funds to the sum of minimum requirements calculated under sectoral
rules.
²) 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 22.
In calculating the per share key figures the number of shares used
at the balance sheet date was 562,790,645, the average number of
shares during the period 563,091,648 and the diluted average
number of shares 576,340,870. Own shares held by Sampo Plc have
been deducted from the number of shares at 31 December, 2006
(4,827,500 shares) and from the average number of shares
(2,198,801 shares).
³) The dilution effect has been calculated as if all the remaining
subscription rights (4,178,984/the option programme of 2000 at the
end of December, 2006) would have been realised. One subscription
right entitles to subscribe 5 shares.
In calculating the key figures the tax corresponding to the result
for the accounting period has been taken into account. Investment
property has been measured at fair value when calculating 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 liabilities has been deducted from
valuation differences.
The key figures for Banking and Investment Services and Other
business have been calculated in accordance with FSA standard 3.1.
The key figures for the insurance business have been calculated in
accordance with the decree of the Ministry of Finance and the
specifying instruction 12/002/2005 of the Insurance Supervisory
Authority.
GROUP QUARTERLY INCOME STATEMENT
EURm 10-12/ 7-9/ 4-6/ 1-3/ 10-12/
2006 2006 2006 2006 2005
Net interest income 91 93 86 73 86
Net income from 20 16 19 19 17
financial transactions
Net fee and commission 63 52 63 60 50
income
Impairment losses on 0 -6 5 2 -4
loans and receivables
Insurance premiums 1,191 1,064 1,077 1,094 1,161
Net income from 325 317 13 367 203
investments
Other operating income 18 47 14 13 40
Total operating income 1,706 1,583 1,278 1,627 1,552
Claims incurred -751 -742 -746 -791 -710
Change in liabilities -201 -55 45 -135 -186
for insurance and
investment contracts
Staff costs -203 -166 -162 -171 -201
Other operating -217 -159 -196 -192 -167
expenses
Total operating -1,372 -1,122 -1,059 -1,288 -1,264
expenses
Profit before taxes 334 461 219 339 287
from continuing
operations
Profit before taxes - - - - 1
from discontinued
operations
Profit before taxes 334 461 219 339 288
Taxes -94 -124 -63 -81 -63
Profit for the period 241 337 156 258 225
Attributable to
Equity holders of 239 335 154 248 222
parent company
Minority interests 2 2 2 9 3
CONSOLIDATED INCOME STATEMENT, IFRS
EURm No 2006 2005
te
Conti Disco Elim Total Contin Disco Elimi Total
nuing ntinu inat uing ntinu natio
opera ed ion operat ed n
tions opera ions opera
tions tions
Net interest 1 -42 374 10 343 -39 346 8 315
income
Net income 2 -5 89 -11 73 0 65 6 71
from
financial
transactions
Net fee and 3 -1 260 -20 238 -1 221 -17 203
commission
income
Impairment 4 2 -2 0 -2 3 1
losses on
loans and
receivables
Insurance 5 4,425 4,425 4,358 4,358
premiums
Net income 6 969 57 -4 1,021 1,061 46 -23 1,084
from
investments
Other 118 37 -62 93 96 60 -84 72
operating
income
Total 5,466 814 -87 6,193 5,474 740 -111 6,104
operating
income
Claims - 0 - -3,014 -3,014
incurred 3,029 3,029
Change in -345 -345 -390 -390
liabilities
for
insurance
and
investment
contracts
Staff costs 7 -488 -219 5 -702 -508 -200 5 -704
Other -606 -240 82 -764 -578 -224 100 -702
operating
expenses
Total - -459 88 - -4,490 -425 105 -4,809
operating 4,469 4,841
expenses
Profit 997 355 0 1,353 985 316 -6 1,295
before taxes
Taxes -280 -80 -1 -361 -262 -71 1 -332
Profit for 717 275 -1 991 723 245 -4 963
the period
Attributable
to
Equity 714 263 977 719 230 949
holders of
parent
company
Minority 2 12 15 4 10 14
interests
Earning per
share (eur)
Basic 1.27 0.47 1.73 1.27 0.41 1.68
Diluted 1.24 0.46 1.69 1.25 0.4 1.65
CONSOLIDATED BALANCE SHEET,
IFRS
EURm Note 12/2006 12/2005
Assets
Cash and balances at central 206 1,665
banks
Financial assets at fair 8, 9 104 2,537
value through p/l
Loans and receivables 10 122 18,919
Investments 11 15,705 15,312
Investments related to unit- 12 1,753 1,262
linked contracts
Reinsurers' share of 525 558
insurance liabilities
Intangible assets 13 782 843
Property, plant and equipment 51 135
Other assets 1,638 1,580
Tax assets 149 173
Assets classified as held for 14 26,585 -
sale
Total assets 47,620 42,985
Liabilities
Financial liabilities at fair 8, 9 73 649
value through p/l
Amounts owed to credit 14 85 12,260
institutions and customers
Debt securities in issue 15 1,236 9,647
Liabilities for insurance and 16 12,942 12,623
investment contracts
Liabilities for unit-linked 17 1,752 1,262
insurance and investment
contracts
Other liabilities 1,216 1,650
Tax liabilities 607 545
Liabilities directly 20 24,520 -
associated with assets
classified as held for sale
Total liabilities 42,431 38,637
Equity
Share capital 95 96
Reserves 2,012 1,814
Retained earnings 3,061 2,412
Equity attributable to parent 5168 4,322
company's equityholders
Minority interests 21 26
Total equity 5,189 4,348
Total equity and liabilities 47,620 42,985
STATEMENT OF CHANGES IN EQUITY, IFRS
EURm Share Share Legal Fair Retai Asse Tota Mino Total
capit premiu reser- value ned ts l rity
al m ve reser earni held inte
accoun ve ngs for rest
t sale s
Equity at 1 95 1,019 370 233 1,723 - 3,440 26 3,465
Jan. 2005
Cash flow
hedges:
- 3 3 3
recognised
in equity
during the
period
- -8 -8 -8
recognised
in p/l
Financial
assets
available-
for-sale
- change 375 375 375
in fair
value
- -207 -207 -207
recognised
in p/l
Exchange -62 -62 -62
rate
translation
difference
Profit for 949 949 14 963
the period
Total income 163 887 1,049 14 1,063
and expenses
recognised
for the
period
Dividends -113 -113 -14 -127
Subscription 1 29 30 30
for shares
with options
Acquisition -88 -88 -88
of own
shares
Recognition 4 4 4
of undrawn
dividends
Equity at 31 96 1,048 370 396 2,412 - 4,322 26 4,348
December
2005
Transfer to -2 2 0
assets
classified
as held for
sale
Cash flow
hedges:
- 0 0 0
recognised
in equity
during the
period
- -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
translation
difference
Profit for 977 977 15 991
the period
Total income 94 1,049 -4 1,138 15 1,153
and expenses
recognised
for the
period
Dividends -339 -339 -20 -359
Subscription 1 108 108 108
for shares
with options
Share-based -1 -1 -1
payments
Acquisition -73 -73 -73
of own
shares
Cancellation -1 1 0 0
of own
shares
Recognition 13 13 13
of undrawn
dividends
Equity at 31 95 1,157 370 488 3,061 -3 5,168 21 5,189
December
2006
CASH FLOW STATEMENT, IFRS
1-12/2006 1-12/2005
Cash and cash equivalents at the 1,787 1,254
beginning of the period
Cash flows from/used in operating -1,417 -1,147
activities
Cash flows from/used in investing -64 75
activities
Cash flows from/used in financing 1,710 1,605
activities
Cash and cash equivalents at the end 2,016 1,787
of the period
The net cash flows of banking and
investment services (discontinued
operations)
1-12/2006 1-12/2005
Operating activities -1,693 -1,261
Investing activities -46 10
Financing activities 2,160 1,697
Net cash flows total 421 446
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, balances with central banks, loans and advances
to credit institutions repayable on demand and short-term deposits
(under 3 months).
NOTES
ACCOUNTING POLICIES
Sampo Groups consolidated financial statements are prepared in
accordance with the International Financial Reporting Standards
(IFRS) adopted by the EU. Sampo has complied with all new and
amended standards and interpretations that apply to its business
and were effective at 31 Dec. 2006.
SEGMENT INFORMATION
The Groups primary segmentation is based on business areas whose
risks and performance bases as well as regulatory environment
differ from each other. Business segments are Banking and
investment services, P&C insurance, Life insurance and Other
operations. Other operations comprise the operations of the
holding company and the Primasoft Oy information technology firm.
Segment information has been produced in accordance with the
accounting policies adopted for preparing and presenting the
consolidated financial statements.The segment revenue, expense,
assets and liabilities, either directly attributable or reasonably
allocable, have been allocated to the segments. Inter-segment
pricing is based on market prices. The transactions, assets and
liabilities between the segments are eliminated in the
consolidated financial statements on a line-by-line basis.
On the 9 November, 2006 Sampo Plc signed a contract to sell the
entire share stock of Sampo Bank Plc to Danske Bank A/S. As a
result of the signing of the contract, the segment has been
classified as discontinued operations in the segment reporting.
CONSOLIDATED INCOME STATEMENT BY SEGMENT FOR YEAR ENDED 31
DECEMBER 2006
Continuing Discont
operations inued
operati
ons
EURm P&C Life Other Total Banking Elimi- Group
insuran insuran continu and na-
ce ce ing investm tion
operati ent
ons
Net interest -42 -42 374 10 343
income
Net income from -5 -5 89 -11 73
financial
transactions
Net fee and -1 -1 260 -20 238
commission
income
Impairment 2 2 -2 0
losses on loans
and receivables
Insurance 3,765 660 4,425 4,425
premiums
Net income from 358 593 18 969 57 -4 1,021
investments
Other operating 23 1 95 118 37 -62 93
income
Total operating 4,146 1,253 67 5,466 814 -87 6,193
income
Claims incurred -2,480 -550 -3,029 0 -3,029
Change in -345 -345 -345
liabilities for
insurance and
investment
contracts
Staff costs -431 -19 -38 -488 -219 5 -702
Other operating -505 -45 -56 -606 -240 82 -764
expenses
Total operating -3,416 -959 -94 -4,469 -459 88 -4,841
expenses
net income 17 27 -62 -18 18
between the
segments
Profit before 730 295 -27 997 355 0 1,353
taxes
Taxes -209 -74 4 -280 -80 -1 -361
Profit for the 520 220 -23 717 275 -1 991
period
Attributable to
Equity 714 263 977
holders of
parent company
Minority 2 12 15
interests
CONSOLIDATED
INCOME
STATEMENT BY
SEGMENT FOR
YEAR ENDED 31
DECEMBER 2005
Continuing Discont
operations inued
operati
ons
EURm P&C Life Other Total Banking Elimin Group
insuran insuran continu and ation
ce ce ing investm
operati ent
ons
Net interest -39 -39 346 8 315
income
Net income from 0 0 65 6 71
financial
transactions
Net fee and -1 -1 221 -17 203
commission
income
Impairment -2 -2 3 1
losses on loans
and receivables
Insurance 3,709 649 4,358 4,358
premiums
Net income from 460 586 15 1,061 46 -23 1,084
investments
Other operating 18 2 76 96 60 -84 72
income
Total operating 4,187 1,238 49 5,474 740 -111 6,104
income
Claims incurred -2,457 -557 -3,014 -3,014
Change in -390 -390 -390
liabilities for
insurance and
investment
contracts
Staff costs -447 -18 -44 -508 -200 5 -704
Other operating -484 -39 -55 -578 -224 100 -702
expenses
Total operating -3,387 -1,004 -98 -4,490 -425 105 -4,809
expenses
net income 35 18 -81 -28 28
between the
segments
Profit before 800 234 -49 985 316 -6 1,295
taxes from
continuing
operations
Taxes -215 -58 11 -262 -71 1 -332
Profit for the 585 175 -37 723 245 -4 963
period
Attributable to
Equity 719 230 949
holders of
parent company
Minority 4 10 14
interests
CONSOLIDATED BALANCE SHEET BY SEGMENT AT 31 DECEMBER 2006
Continuing operations Discont
inued
operati
ons
EURm P&C Life Other Banking Elimina- Group
insuran insuran and tion
ce ce investm
ent
Assets
Cash and balances 230 58 1,722 -81 1,929
at central banks
Financial assets 87 16 2,380 -32 2,450
at fair value
through p/l
Loans and 627 21,559 -511 21,675
receivables
Investments 9,778 5,753 3,770 351 -3,596 16,056
Investments 1,753 1,753
related to unit-
linked contracts
Reinsurers' share 521 4 525
of insurance
liabilities
Intangible assets 599 159 23 64 845
Property, plant 28 5 18 90 141
and equipment
Other assets 1,475 121 78 454 -55 2,072
Tax assets 113 13 22 24 1 173
Total assets 12,831 7,882 4,538 26,643 -4,274 47,620
Liabilities
Financial 57 12 12 507 -66 524
liabilities at
fair value
through p/l
Amounts owed to 92 13,256 -592 12,755
credit
institutions and
customers
Debt securities 441 100 826 10,649 -396 11,620
in issue
Liabilities for 8,247 4,695 12,942
insurance and
investment
contracts
Liabilities for 1,752 1,752
unit-linked
insurance and
investment
contracts
Other liabilities 1,112 39 98 1,014 -54 2,208
Tax liabilities 407 189 11 24 630
Total liabilities 10,264 6,787 1,039 25,450 -1,108 42,431
Equity
Share capital 95
Reserves 2,012
Retained earnings 3,061
Equity 5,168
attributable to
parent company's
equityholders
Minority 21
interests
Total equity 5,189
Total equity and 47,620
liabilities
CONSOLIDATED
BALANCE SHEET BY
SEGMENT AT 31
DECEMBER 2005
EURm P&C Life Other Banking Elimina- Group
insuran insuran and tion
ce ce investm
ent
Assets
Cash and balances 366 211 1,290 -201 1,665
at central banks
Financial assets 87 46 3 2,409 -8 2,537
at fair value
through p/l
Loans and 62 18,913 -55 18,919
receivables
Investments 9,625 5,707 3,374 74 -3,468 15,312
Investments 1,262 1,262
related to unit-
linked contracts
Reinsurers' share 553 5 558
of insurance
liabilities
Intangible assets 595 157 26 66 843
Property, plant 29 5 19 82 135
and equipment
Other assets 1,104 92 108 342 -67 1,580
Tax assets 127 7 20 18 1 173
Total assets 12,484 7,493 3,611 23,194 -3,797 42,985
Liabilities
Financial 149 36 464 649
liabilities at
fair value
through p/l
Amounts owed to 106 12,336 -182 12,260
credit
institutions and
customers
Debt securities 443 100 1,036 8,461 -393 9,647
in issue
Liabilities for 7,885 4,738 12,623
insurance and
investment
contracts
Liabilities for 1,262 1,262
unit-linked
insurance and
investment
contracts
Other liabilities 654 70 101 892 -67 1,650
Tax liabilities 339 180 5 21 545
Total liabilities 9,470 6,386 1,248 22,175 -642 38,637
Equity
Share capital 96
Reserves 1,814
Retained earnings 2,412
Equity 4,322
attributable to
parent company's
equityholders
Minority 26
interests
Total equity 4,348
Total equity and 42,985
liabilities
NOTES TO THE INCOME STATEMENT
1 NET INTEREST INCOME
CONTINUING OPERATIONS
Other business 1-12/2006 1-12/2005
Other business, total -42 -39
DISCONTINUED OPERATIONS
Banking and investment services
1-12/2006 1-12/2005
Interest income
Loans and receivables 897 665
Other interest income 5 4
Total 902 669
Interest expenses
Amounts owed to credit institutions -222 -145
and customers
Debt securities in issue -307 -179
Other interest expenses 0 0
Total -529 -323
Banking and investment services, total 374 346
Elimination items between segments 10 8
Group, total 343 315
Net interest income from banking and
investment services, total
In net interest income 374 346
In net income from financial 89 55
transactions
In net income from investments 5 -2
Total 468 398
Interest income and expenses from P&C insurance and life
insurance business are presented in Net income from
investments.
2 NET INCOME FROM FINANCIAL
TRANSACTIONS
CONTINUING OPERATIONS
Other business 1-12/2006 1-12/2005
Other business, total -5 0
DISCONTINUED OPERATIONS
Banking and investment services
1-12/2006 1-12/2005
Trading assets/liabilities
Debt securities and interest rate 57 29
derivatives
Equity securities and equity 3 2
derivatives
Other 3 1
Financial assets designated as at fair
value through p/l
Debt securities 10 19
Foreign exchange dealing 16 14
Net income from hedge accounting
Change in fair value of hedging -48 -20
derivative instruments
Change in fair value of hedged items 48 19
Total 1 -1
Banking and investment services, total 89 65
Elimination items between segments -11 6
Group, total 73 71
3 FEE AND COMMISSION INCOME AND
EXPENSE
CONTINUING OPERATIONS
Other business 1-12/2006 1-12/2005
Other business, total -1 -1
DISCONTINUED OPERATIONS
Banking and investment services
1-12/2006 1-12/2005
Fee and commission income
Lending 45 39
Borrowing 21 20
Payment transactions 59 56
Asset management 134 101
Guarantees 16 13
Investment banking 30 25
Other 36 30
Total 341 283
Fee and commission expenses -81 -63
Banking and investment services, total 260 221
Elimination items between segments -20 -17
Group, total 238 203
4 IMPAIRMENT LOSSES ON LOANS AND
RECEIVABLES
CONTINUING OPERATIONS
Other business 1-12/2006 1-12/2005
Other business, total 2 -2
DISCONTINUED OPERATIONS
Banking and investment services
1-12/2006 1-12/2005
Loans and receivables
Impairment losses -53 -36
Reversal of impairment losses and 51 39
recoveries of loan receivables
previously written off
Total -2 3
Banking and investment services, total -2 3
Group, total 0 1
5 INSURANCE PREMIUMS
CONTINUING OPERATIONS
P&C insurance
1-12/2006 1-12/2005
Premiums from insurance contracts
Premiums written, direct insurance 3,938 3,886
Premiums written, assumed reinsurance 81 76
Premiums written, gross 4,019 3,962
Ceded reinsurance premiums written -246 -244
Premiums written, net 3,773 3,717
Change in unearned premium provision -16 -23
Reinsurers' share 8 15
Insurance premiums earned, net 3,765 3,709
Life insurance
1-12/2006 1-12/2005
Premiums from insurance contracts
Premiums from contracts with 223 377
discretionary participation feature
Premiums from unit-linked contracts 384 284
Premiums from other contracts 4 3
Insurance contracts, total 611 664
Assumed reinsurance 3 -13
Premiums from investment contracts
Premiums from contracts with 6 1
discretionary participation feature
Premiums from unit-linked contracts 45 4
Investment contracts, total 51 4
Reinsurers' share -5 -5
Premiums written, total 660 649
Single and regular premiums from
direct insurance
Regular premiums, insurance contracts 395 370
Single premiums, insurance contracts 216 293
Single premiums, investment contracts 51 4
Total 662 668
Group, total 4,425 4,358
6 NET INCOME FROM INVESTMENTS
CONTINUING OPERATIONS
P&C insurance
1-12/2006 1-12/2005
Financial assets
Trading assets and derivative 20 -7
financial instrument
Financial assets designated as at fair
value through p/l
Debt securities 213 258
Equity securities 208 280
Total 421 538
Loand and receivables 12 16
Financial liabilities
Debt securities in issue
Interest expenses on subordinated -27 -23
debt securities
Other financial expenses -8 -10
Other assets 1 7
Effect of discounting annuities -54 -52
Fee and commission expenses -8 -9
P&C insurance, total 358 460
Life insurance
1-12/2006 1-12/2005
Financial assets
Trading assets and derivative 20 -56
financial instrument
Financial assets designated as at fair
value through p/l
Debt securities 5 4
Equity securities 0 1
Total 5 5
Investments related to unit-linked
contracts
Debt securities 1 7
Equity securities 138 149
Total 139 156
Investment securities held-to-maturity
Debt securities 1 3
Loans and receivables 3 4
Financial asset available-for-sale
Debt securities 97 201
Equity securities 312 250
Total 409 450
Financial liabilities
Debt securities in issue
Interest expenses from -6 -6
subordinated debt securities
Other -2 -3
Other assets 14 30
Fee and commission expenses 10 3
Life insurance, total 593 586
Other business
1-12/2006 1-12/2005
Financial assets
Financial assets available-for-sale 13 11
Other assets 5 4
Other business, total 18 15
DISCONTINUED OPERATIONS
Banking and investment services
1-12/2006 1-12/2005
Financial assets
Investment securities held-to-maturity 1 1
Financial asset available-for-sale
Debt securities 4 4
Equity securities 40 25
Total 44 29
Other assets 11 15
Banking and investment services, total 57 46
Elimination items between segments -4 -23
Group, total 1,021 1,084
7 STAFF COSTS
CONTINUING OPERATIONS
P&C insurance
1-12/2006 1-12/2005
Staff costs
Wages and salaries -290 -290
Granted equity-settled share options -1 -
Granted cash-settled share options -12 -12
Pension costs -71 -76
Other social security costs -57 -68
P&C insurance, total -431 -447
Life insurance
1-12/2006 1-12/2005
Staff costs
Wages and salaries -14 -13
Granted equity-settled share options 0 -
Granted cash-settled share options -1 -1
Pension costs -2 -2
Other social security costs -2 -1
Life insurance, total -19 -18
Other business
1-12/2006 1-12/2005
Staff costs
Wages and salaries -29 -32
Granted equity-settled share options -1 -
Granted cash-settled share options -2 -4
Pension costs -5 -5
Other social security costs -2 -2
Other business, total -38 -44
DISCONTINUED OPERATIONS
Banking and investment services
1-12/2006 1-12/2005
Staff costs
Wages and salaries -162 -150
Granted equity-settled share options 0 -
Granted cash-settled share options -12 -10
Pension costs -25 -23
Other social security costs -19 -18
Banking and investment services, total -219 -200
Elimination items between segments 5 5
Group, total -702 -704
NOTES TO THE BALANCE SHEET
On the 9 November, 2006 Sampo Plc signed a contract to sell the
entire share stock of Sampo Bank Plc to Danske Bank A/S. In the
consolidated financial statements for the year 2006, the Banking
and investment services segment has been classified as
discontinued operations. In the Group balance sheet, both the
assets and liabilities in the segment for the year ended 2006 are
shown in one line. The assets are disclosed in more detail in note
14 and liabilities in note 20.
8 FINANCIAL ASSETS AND 12/2006 12/2006 12/2005 12/2005
LIABILITIES AT FAIR VALUE
THROUGH P/L
Assets Liabiliti Assets Liabiliti
es es
P&C insurance
Derivative financial 87 57 87 149
instruments (note 9)
Life insurance
Derivative financial 16 12 46 36
instruments (note 9)
Other business
Assets/liabilities held - - 1 -
for trading
Derivative financial - 12 2 -
instruments (note 9)
Other business, total - 12 3 -
Banking and investment services
(discontinued operations)
Assets/liabilities held 1,262 -
for trading
Derivative financial 506 464
instruments (note 9)
Financial assets 641 -
designated as at fair
value through p/l
Banking and investment 2,409 464
services, total*)
Elimination items between 1 -9 -8 -
segments
Group, total 104 73 2,537 649
*) Assets in Banking and investment services
at 31 Dec. 2006, see note 14.
9 DERIVATIVE
FINANCIAL
INSTRUMENTS
P&C insurance
12/2006 12/2005
Fair Fair Fair Fair
value value value value
Contrac Assets Liabi Contra Assets Liabili
t/ litie ct/ ties
notiona s notion
l al
amount amount
Derivatives held
for trading
Interest rate 1,668 4 2 0 0 5
derivatives
Foreign exchange 4,548 73 55 4,562 80 144
derivatives
Equity derivatives 15 10 0 4 6 -
Commodity 5 0 - - - -
derivatives
Total derivative 6,237 87 57 4,566 87 149
assets/liabilities
held for trading
Life insurance
12/2006 12/2005
Fair Fair Fair Fair
value value value value
Contrac Assets Liabi Contra Assets Liabili
t/ litie ct/ ties
notiona s notion
l al
amount amount
Derivatives held
for trading
Interest rate 754 8 9 3,986 36 25
derivatives
Foreign exchange 676 7 3 1,057 7 8
derivatives
Equity derivatives 0 0 0 20 2 3
Commodity 76 1 1 31 1 0
derivatives
Total derivative 1,506 16 12 5,094 46 36
assets/liabilities
Other business
12/2006 12/2005
Fair Fair Fair Fair
value value value value
Contrac Assets Liabi Contra Assets Liabili
t/ litie ct/ ties
notiona s notion
l al
amount amount
Derivatives held
for hedging
Derivatives 628 - 12 633 2 -
designated as fair
value hedges
Total derivative 628 - 12 633 2 -
assets/liabilities
Banking and investment services (discontinued
operations)
12/2005
Fair Fair
value value
Derivatives held for trading Contract/ Assets Liabilit
notional ies
amount
Interest rate derivatives 40,131 174 190
Foreign exchange derivatives 8,484 98 115
Equity derivatives 8 3 3
Other derivatives 382 21 20
Total derivative 49,004 295 327
assets/liabilities held for
trading
Derivatives held for hedging
Derivatives designated as fair 3,984 210 136
value hedges
Derivatives designated as cash 170 1 -
flow hedges
Total derivative 4,154 211 136
assets/liabilities held for
hedging
Total derivative 53,157 506 464
assets/liabilities*)
*) Assets in Banking and investment services at 31
Dec. 2006, see note 14.
10 LOANS AND RECEIVABLES
Other business 12/2006 12/2005
Loans and advances to credit institutions 627 62
Deposits
627 62
Other business loans and receivables,
total
Banking and investment services (discontinued
operations)
12/2005
Loans and advances to credit institutions
Deposits 119
Other loans 310
Total 428
Loans and advances to customers
By type of loan
Home loans 8,158
Consumer loans 1,103
Other consumer loans 1,111
Finance lease assets 766
Money market loans 15
Other commercial loans 7,349
Allowances for impairment -18
Total 18,484
Banking and investment services, total*) 18,913
Elimination items between segments -505 -55
Group, total 122 18,919
*) Assets in Banking and investment services at 31 Dec. 2006,
see note 14.
11 INVESTMENTS
12/2006 12/2005
P&C insurance
Financial assets designated as at fair
value through p/l
Debt securities 8,690 8,509
Equity securities 1,041 1,026
Total 9,732 9,535
Loans and receivables
Deposits with ceding undertakings 2 3
Investment property
Carrying amount 41 83
Fair value 42 83
Investments in associates 4 4
P&C insurance, total 9,778 9,625
Life insurance
Financial assets designated as at fair
value through p/l
Debt securities 70 49
Equity securities 5 5
Total 75 53
Investments held-to-maturity
Debt securities 10 16
Loans and receivables
Deposits 4 3
Deposits with ceding undertakings 2 2
Total 6 5
Financial assets available-for-sale
Debt securities 3,440 3,230
Equity securities 2,110 2,270
Total 5,550 5,501
Investment property
Carrying amount 110 130
Fair value 125 146
Investments in associates 1 1
Life insurance, total 5,753 5,707
Other business
Financial assets available-for-sale
Debt securities 140 132
Equity securities 454 51
Total 595 183
Investment property
Carrying amount 19 21
Fair value 21 21
Investments in associates 0 21
Investments in subsidiaries 3,157 3,149
Other business, total 3,770 3,374
Banking and investment services (discontinued
operations)
Investments held-to-maturity
Debt securities 46
Financial assets available-for-sale
Equity securities 14
Investment property
Carrying amount 1
Fair value 1
Investments in associates 14
Banking and investment services, total*) 74
Elimination items between segments -3,596 -3,468
Group, total 15,705 15,312
*) Assets in Banking and investment services at 31 Dec. 2006,
see note 14.
12 INVESTMENTS RELATED TO UNIT-LINKED
INSURANCE
Life insurance
12/2006 12/2005
Financial assets as at fair value through
p/l
Debt securities 58 12
Equity securities 1,695 1,251
Financial assets as at fair value through 1,753 1,262
p/l total
Other 0 0
Life insurance, total 1,753 1,262
13 INTANGIBLE ASSETS
P&C insurance 12/2006 12/2005
Goodwill 557 533
Customer relations 29 38
Other intangible assets 13 23
Total 599 595
Life insurance 12/2006 12/2005
Goodwill 153 153
Other intangible assets 6 4
Total 159 157
Other business 12/2006 12/2005
Other intangible assets 23 26
Banking and investment services (discontinued 12/2005
operations)
Goodwill 5
Other intangible assets 61
Total*) 66
Group, total 782 843
*) Assets in Banking and investment services at 31 Dec. 2006,
see note 14.
14 NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE
The item includes assets for banking and investment services at 31
Dec. 2006. The segment was classified as discontinued operations
and the assets of the segment as held for sale when Sampo Plc
signed a contract to sell the entire share stock of Sampo Bank Plc
to Danske Bank A/S.
Non-current assets classified as 12/2006
held for sale
Cash and balances at central 1,722
banks
Financial assets at fair value 2,380
through p/l (Note 14.1)
Loans and receivables (Note 14.2) 21,559
Investments (Note 14.3) 351
Intangible assets (Note 14.4) 64
Property, plant and equipment 90
Other assets 454
Tax assets 24
Total 26,643
Elimination -59
Total assets classified as held 26,585
for sale in the consolidated
balance sheet
14.1 Financial assets at fair 12/2006
value through p/l
Assets
Assets/liabilities held for 1,330
trading
Derivative financial instruments 461
Financial assets designated as at 588
fair value through p/l
Total 2,380
Elimination items between -33
segments
Total financial assets at fair 2,346
value through p/l for Banking and
investment services
12/2006
Fair value
Derivatives held for trading Contract/ Assets
notional
amount
Interest rate derivatives 49,474 121
Foreign exchange derivatives 5,752 68
Equity derivatives 58 28
Other derivatives 1,027 24
Total derivative assets held for 56,311 240
trading
Derivatives held for hedging
Derivatives designated as fair 5,851 221
value hedges
Total derivative assets held for 5,851 221
hedging
Total derivative assets 62,162 461
14.2 Loans and receivables
12/2006
Loans and advances to credit
institutions
Deposits 207
Other loans 269
Total 476
Loans and advances to customers
By type of loan
Home loans 9,685
Consumer loans 920
Other consumer loans 1,757
Finance lease assets 937
Money market loans 15
Other commercial loans 7,791
Allowances for impairment -22
Total 21,084
Total loans and receivables 21,559
Elimination items between -6
segments
Total loans and receivables for 21,553
Banking and investment services
14.3. Investments
12/2006
Investments held-to-maturity
Debt securities 61
Financial assets available-for-
sale
Debt securities 273
Equity securities 7
Total 280
Investments in associates 11
Total 351
14.4 Intangible assets
Goodwill 5
Other intangible assets 59
Total 64
15 AMOUNTS OWED TO CREDIT
INSTITUTIONS AND CUSTOMERS
Other business
12/2006 12/2005
Other liabilities owed to credit 6 6
institutions
Other liabilities owed to 85 99
customers
Other business, total 92 106
Banking and investment services (discontinued 12/2005
operations)
Amounts owed to credit
institutions
Deposits from credit insitutions 664
Other liabilities owed to credit 202
institutions
Total 867
Amounts owed to customers
Deposits
Demand deposits 2,856
Savings accounts 1,075
Current accounts 3,716
Money market deposits 1,122
Other time deposits 2,673
Total deposits 11,442
Other liabilities
Other liabilities 28
Total amounts owed to customers 11,470
Banking and investment services, 12,336
total*)
Elimination items between -6 -182
segments
Group, total 85 12,260
*) Liabilities in Banking and investment services at 31
Dec. 2006, see note 20.
16 DEBT SECURITIES IN ISSUE
P&C insurance
12/2006 12/2005
Subordinated debt securities
Capital securities 441 443
P&C insurance, total 441 443
Life insurance
12/2006 12/2005
Subordinated debt securities
Capital securities 100 100
Life insurance, total 100 100
Other business
12/2006 12/2005
Debt securities in issue
Commercial paper 50 149
Bonds and notes 191 290
Total 241 438
Subordinated debt securities
Debentures 586 597
Other business, total 826 1,036
Banking and investment services (discontinued
operations)
12/2005
Debt securities in issue
Certificates of deposit 3,384
Bonds and notes 4,238
Total 7,621
Subordinated debt securities
Capital securities 352
Debentures 399
Perpetuals 89
Total 840
Banking and investment services, 8,461
total*)
Elimination items between -131 -393
segments
Group, total 1,236 9,647
*) Liabilities in Banking and investment services at 31
Dec. 2006, see note 20.
17 LIABILITIES FOR INSURANCE AND
INVESTMENT CONTRACTS
P&C insurance
Liabilities from insurance 12/2006 12/2005
contracts
Insurance contracts
Provision for unearned premiums 1,640 1,628
Provision for claims outstanding 6,606 6,257
Total 8,247 7,885
Reinsurers' share
Provision for unearned premiums 56 49
Provision for claims outstanding 465 504
Total 521 553
Life insurance *)
12/2006 12/2005
Insurance contracts
Liabilities for contracts with
DPF
Provision for unearned 2,979 3,108
premiums
Provision for claims 1,565 1,463
outstanding
Total 4,544 4,571
Liabilities for contracts without
DPF
Provision for unearned 6 15
premiums
Provision for claims 0 3
outstanding
Total 6 18
Total 4,550 4,589
Assumed reinsurance
Provision for unearned 4 3
premiums
Provision for claims 3 2
outstanding
Total 7 6
Insurance contracts, total
Provision for unearned premiums 2,989 3,127
Provision for claims outstanding 1,568 1,468
4,557 4,595
Investment contracts
Liabilities for contracts with
DPF
Provision for unearned 138 144
premiums
Investment contracts, total 138 144
Liabilities for insurance and
investment contracts, total
Provision for unearned premiums 3,127 3,270
Provision for claims outstanding 1,568 1,468
Life insurance, total 4,695 4,738
Reinsurers' share
Provision for unearned premiums 0 0
Provision for claims outstanding 4 5
Total 4 5
Group, total 12,942 12,623
*) 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.
18 LIABILITIES FOR UNIT-LINKED
INSURANCE AND INVESTMENT
CONTRACTS
Life insurance 12/2006 12/2005
Unit-linked insurance contracts 1,690 1,246
Unit-linked investment contracts 62 16
Total 1,752 1,262
19 CONTINGENT LIABILITIES AND
COMMITMENTS
P&C insurance
12/2006 12/2005
Off-balance sheet items
Guarantees 48 62
Other irrevocable commitments 19 31
Total 67 93
Other
Assets covered by policyholders' 326 303
beneficiary rights
Assets pledged as
collateral for liabilities
and contingent liabilities
12/2006 12/2006 12/200 12/2005
5
Assets pledged as Assets Liabilitie Assets Liabilitie
collateral pledged s/ commit- pledge s/ commit-
ments d ments
Cash at balances at 18 9 42 0
central banks
Investments
- Investment securities 250 114 267 129
Total 268 123 309 130
Non-cancellable operating leases 12/2006 12/2005
Minimum lease payments under non-
cancellable operating leases
not later than one year 33 26
later than one year and not later 92 72
than five years
later than five years 75 39
Total 201 137
Life insurance
12/2006 12/2005
Off-balance sheet items
Fund commitments 216 184
Assets pledged as
collateral for
liabilities and
contingent liabilities
12/2006 12/2006 12/2005 12/2005
Assets pledged as Assets Liabilitie Assets Liabilitie
collateral pledged s/ commit- pledge s/ commit-
ments d ments
Investments
- Investment securities 2 1 4 0
12/2006 12/2005
Other commitments
Commitments for the acquisition 1 -
of IT-software
Non-cancellable operating leases 12/2006 12/2005
Minimum lease payments under non-
cancellable operating leases
not later than one year 2 2
later than one year and not later 6 6
than five years
later than five years 5 7
Total 13 15
Banking and investment services 12/2005
(discontinued operations)
Off-balance sheet items
Guarantees 2,811
Undrawn loans, overdraft 4,062
facilities and other commitments
to lend
- original maturity less than one 642
year
- original maturity more than one 3,420
year
Other irrevocable commitments 4
Total 6,878
Assets pledged as collateral for
liabilities and contingent
liabilities*)
12/2005 12/2005
Assets pledged as collateral Assets Liabilities/
pledged commit-
ments
Financial assets at fair value
through p/l
- Trading securities 1,593 1,038
Loans and receivables
- Security deposits 1,180 1,751
Total § 2,789
12/2005
Other commitments
Commitments for the acquisition 14
of IT-software
Non-cancellable operating leases 12/2005
Minimum lease payments under non-
cancellable operating leases
not later than one year 21
later than one year and not later 53
than five years
later than five years 43
Total*) 118
*) Liabilities in Banking and investment services at 31
Dec. 2006, see note 20.
20 LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS CLASSIFIED AS HELD
FOR SALE
The item includes liabilities for Banking and investment services
at 31 Dec. 2006. The segment was classified as discontinued
operations and the liabilities directly associated with assets
classified as held for sale when Sampo Plc signed a contract to
sell the entire share stock of Sampo Bank Plc to Danske Bank A/S.
Liabilities 12/2006
Financial liabilities at fair 507
value through p/l (Note 20.1)
Amounts owed to credit 13,256
institutions and customers (Note
20.2)
Debt securities in issue (Note 10,649
20.3)
Other liabilities 1,014
Tax liabilities 24
Total 25,450
Elimination -930
Total liabilities directly 24,520
associated with assets classified
as held for sale in the
consolidated balance sheet
20.1 Financial liabilities at 12/2006
fair value through p/l
Liabilities
Derivative financial instruments 507
Total 507
Elimination items between -57
segments
Total financial liabilities at 450
fair value through p/l for
Banking and investment services
12/2006
Fair
value
Derivatives held for trading Contract/ Liabiliti
notional es
amount
Interest rate derivatives 49,474 150
Foreign exchange derivatives 5,752 71
Equity derivatives 58 12
Other derivatives 1,027 56
Total derivative liabilities held 56,311 289
for trading
Derivatives held for hedging
Derivatives designated as fair 5,851 218
value hedges
Total derivative liabilities held 5,851 218
for hedging
Total derivative liabilities 62,162 507
20.2 Amounts owed to credit institutions and
customers
12/2006
Amounts owed to credit
institutions
Deposits from credit insitutions 194
Other liabilities owed to credit 422
institutions
Total 616
Amounts owed to customers
Deposits
Demand deposits 2,733
Savings accounts 1,599
Current accounts 4,572
Money market deposits 972
Other time deposits 2,723
Total deposits 12,598
Other liabilities
Other liabilities 42
Total amounts owed to customers 12,640
Total amounts owed to credit 13,256
institutions and customers
Elimination items between -586
segments
Total amounts owed to credit 12,670
institutions and customers for
Banking and investment services
20.3 Debt securities in issue 12/2006
Certificates of deposit 2,883
Bonds and notes 6,777
Total 9,660
Subordinated debt securities
Capital securities 342
Debentures 567
Perpetuals 80
Total 989
Total debt securities in issue 10,649
Elimination items between -266
segments
Total debt securities in issue 10,384
for Banking and investment
services
20.4 Contingent liabilities and
commitments
Off-balance sheet items 12/2006
Guarantees 2,654
Undrawn loans, overdraft 4,093
facilities and other commitments
to lend
- original maturity less than one 653
year
- original maturity more than one 3,440
year
Other irrevocable commitments 0
Total 6,746
Assets pledged as collateral for
liabilities and contingent
liabilities
12/2006 12/2006
Assets pledged as collateral Annettu Velat/si-
vakuus toumukset
Financial assets at fair value
through p/l
- Trading securities 1,567 1,168
Loans and receivables
- Security deposits 2,424 2,710
12/2006
Other commitments
Commitments for the acquisition 3
of IT-software
Non-cancellable operating leases
Minimum lease payments under non-
cancellable operating leases
not later than one year 22
later than one year and not later 53
than five years
later than five years 40
Total 115
21 MUTUAL FUND CAPITAL
12/2006 12/2005
Equity funds 4,493 3,637
Balanced funds 1,342 1,020
Money market funds 2,967 2,316
Bond funds 1,627 1,407
Absolute return funds 547 472
Risk funds 142 32
Total 11,118 8,885
22 ANALYSIS OF RESULT FOR P&C
INSURANCE
1-12/2006 1-12/2005
Profit and loss account
Premiums earned 3,765 3,709
Claims incurred -2,729 -2,697
Operating expenses -655 -661
Other technical income and
expenses
(+collective guarantee item) 0 -2
Allocated investment return 173 166
transferred from the non-
technical account
Technical result 554 516
Investment result 412 510
Allocated investment return -227 -217
transferred to the technical
account
Other income and expenses -9 -9
Operating result 730 800
23 SAMPO PLC'S INCOME STATEMENT
AND BALANCE SHEET, FAS
INCOME STATEMENT
1-12/2006 1-12/2005 Change
Net interest income -34 -34 0
Divident income 1,412 540 873
Fee income and expenses, net -1 -1 0
Net income from transaction of 1 0 1
securities and foreign exchange
dealing
Net investment income 4 -2 7
Other operating income 51 12 39
Administrative expenses -28 -26 -2
Depreciation and impairment on
property, plant and
equipment and intangible assets -8 -7 -1
Other operating expenses -13 -22 9
Operating profit 1,386 460 925
Income taxes 5 14 -9
Profit for the period 1,391 474 917
BALANCE SHEET 12/2006 12/2005
ASSETS
Loans and advances to credit 623 47
institutions
Debt securities 130 132
Shares and participations 454 51
Shares and participations in 1 18
associates
Shares and participations in 3,157 3,157
Group companies
Derivatives - 2
Intangible assets 23 26
Property, plant and equipment
Properties and shares in 28 31
property companies
Other 4 5
Other assets 48 74
Prepayments anc accrued income 23 24
Tax assets 22 20
TOTAL ASSETS 4,516 3,586
LIABILITIES
Liabilities
Liabilities to customers 85 99
Debt securities in issue 241 438
Derivatives 12 -
Other liabilities 46 49
Accruals and deferred income 45 43
Subordinated liabilities 586 597
Tax liabilities 11 5
Total liabilities 1,026 1,233
Equity
Share capital 95 96
Share premius account 1,157 1,048
Other undistributable reserves 366 366
Fair value reserve 20 -9
Other reserves 273 273
Retained earnings 261 194
Treasury shares -73 -88
Profit for the year 1,391 474
Total equity 3,490 2,354
TOTAL LIABILITIES 4,516 3,586
Off-balance sheet items
Commitments
Other than sale and option to 8 12
resell transactions