SAMPO PLC STOCK EXCHANGE RELEASE 13 August 2008, at 9.30am
SAMPO GROUP´S RESULTS FOR JANUARY - JUNE 2008
Strong solvency smoothes the ride
Sampo Group's earnings per share for January-June 2008 amounted to EUR 0.60
(0.72). The comparison figure does not contain the sales gain from the Sampo
Bank transaction closed on 1 February 2007. Earnings per share including the
sales gain were EUR 5.66. Earnings per share including the change in the fair
value reserve decreased to EUR -0.90 per share (0.74). Profit before taxes in
January-June 2008 amounted to EUR 422 million (559). Net asset value per share
was EUR 11.36 (13.49).
- Profit before taxes in P&C insurance was EUR 182 million (311). Insurance
technical result remained stable and combined ratio was 92.4 per cent (92.0).
Investment result was disappointing because of weak fixed income and equity
markets. The operating environment for P&C insurance continues to look
favourable.
- Profit before taxes in life insurance amounted to EUR 91 million (187).
Sluggish sales continued due to weak capital market development and Sampo Bank's
poor sales performance.
- Profit before taxes for the segment ‘Holding' rose to EUR 148 million (61)
supported by EUR 130 million in dividends from Nordea.
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| KEY FIGURES | 1-6 | 1-6 | Chang | Q2 | Q2 | Change |
| | | | e | | | |
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| EURm | 2008 | 2007 | % | 2008 | 2007 | % |
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| Profit before taxes *) | 422 | 559 | -24 | 279 | 289 | -3 |
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| P&C insurance | 182 | 311 | -41 | 118 | 142 | -17 |
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| Life insurance | 91 | 187 | -51 | 27 | 87 | -69 |
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| Holding | 148 | 61 | 145 | 134 | 60 | 124 |
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| Profit for the period *) | 346 | 416 | -17 | 241 | 214 | 13 |
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| Earnings per share, EUR | 0.60 | 0.72 | -17 | 0.42 | 0.36 | 17 |
| *) | | | | | | |
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| EPS (incl. change in FVR) | -0.90 | 0.74 | - | -0.51 | 0.30 | - |
| EUR *) | | | | | | |
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| NAV per share, EUR ** ) | 11.36 | 13.38 | -15 | | | |
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| Average number of staff | 6,937 | 6,803 | 2 | | | |
| (FTE) | | | | | | |
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| Group solvency ratio, % | 682.8 | 856.9 | -20 | | | |
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| RoE, % | -2.5 | 10.4 | - | | | |
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*) Comparison figures are presented excluding the sales gain from Sampo Bank of
EUR 2,830 million and Sampo Bank Group's January 2007 profit of EUR 29 million
(pre-tax), which are reported under ‘Discontinued operations'.
**) Less full deferred tax.
The figures in this report are unaudited. Income statement items are compared on
a year-on-year basis whereas comparison figures for balance sheet items are from
31 December 2007 unless otherwise stated.
Second quarter 2008 in brief
For the second quarter of 2008 Sampo Group reported a profit before taxes of EUR
279 million (289). Earnings per share were EUR 0.42 (0.36) and taking the change
in the fair value reserve into account earnings per share decreased to EUR -0.51
(0.30).
P&C insurance reported a profit before taxes of EUR 118 million (142) for the
second quarter. The insurance technical result remained good and the combined
ratio amounted to 90.9 per cent (90.3). Net investment income decreased to EUR
35 million (61).
Sampo Group's life insurance operations reported a profit before taxes of EUR 27
million (87) as realized gains were smaller than in comparison period. Premiums
written decreased to EUR 110 million (142).
Segment ‘Holding' reported a profit before taxes of EUR 134 million in the
second quarter (60) including the dividend received from the Nordea holding.
Business areas
P&C insurance
If P&C Insurance Company is the leading property and casualty insurance company
in the Nordic region, with insurance operations that also encompass the Baltic
countries and Russia. The P&C insurance group's parent company, If P&C Insurance
Holding Ltd, is located in Sweden, and the If subsidiaries provide insurance
solutions and services in Finland, Sweden, Norway, Denmark, the Baltic countries
and Russia. If's operations are divided into four business areas: Private,
Commercial, Industrial and Baltic & Russia.
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| Results | 1-6 | 1-6 | Change | Q2 | Q2 | Change |
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| EURm | 2008 | 2007 | % | 2008 | 2007 | % |
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| Premium income | 2,352 | 2,288 | 3 | 923 | 904 | 2 |
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| Net income from | 52 | 180 | -71 | 35 | 61 | -42 |
| investments | | | | | | |
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| Other operating | 14 | 13 | 9 | 6 | 6 | 0 |
| income | | | | | | |
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| Claims incurred | -1,317 | -1,272 | 4 | -647 | -622 | 4 |
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| Change in liabilities | -440 | -425 | 4 | 39 | 31 | 27 |
| for | | | | | | |
| insurance contracts | | | | | | |
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| Staff costs | -227 | -222 | 2 | -116 | -107 | 8 |
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| Other expenses | -238 | -238 | 0 | -118 | -124 | -4 |
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| Finance costs | -15 | -14 | 10 | -4 | -7 | -51 |
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| Profit before taxes | 182 | 311 | -41 | 118 | 142 | -17 |
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| Key figures | | | | | | |
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| Combined ratio, % | 92.4 | 92.0 | 0 | 90.9 | 90.3 | 1 |
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| Risk ratio, % | 68.9 | 68.2 | 1 | 67.2 | 66.5 | 1 |
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| Cost ratio, % | 23.5 | 23.8 | -1 | 23.6 | 23.8 | -1 |
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| Expense ratio, % | 17.1 | 17.2 | -1 | 17.2 | 17.3 | -1 |
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| Return on equity, % | -4.8 | 21.7 | - | - | - | - |
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| Average number of | 6,484 | 6,375 | 2 | - | - | - |
| staff (FTE) | | | | | | |
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P&C insurance operations' profit before taxes for the first half of year 2008
amounted to EUR 182 million (311). Investment result was clearly weaker than in
the comparison period. The insurance technical result improved further to EUR
261 million (244). Insurance margin - technical result in relation to net
premiums earned - improved and was 13.5 per cent (13.0). Combined ratio remained
stable and was 92.4 per cent (92.0). Annualised RoE was below the long-term
target of 17.5 per cent due to weak investment result and amounted to -4.8 per
cent (21.7). Fair value reserve decreased to EUR -180 million (0).
Business area Private accounted for 55 per cent, Commercial for 27 per cent,
Industrial for 10 per cent and Baltic and Russia for 6 per cent of the technical
result. EUR 61 million was released from technical reserves relating to prior
year claims (39).
In business area Private the combined ratio stayed at a good level at 91.4 per
cent (91.1). In Commercial the combined ratio increased to 94.1 per cent (93.1)
and in business area Industrial to 96.8 per cent (95.2) due to a total of EUR 55
million higher than normalized large claims. Technical result in business area
Baltic and Russia improved significantly from the previous year's first half.
The combined ratio improved to 83.0 per cent (90.8) supported by positive large
claims outcome and favourable frequency development.
In Finland the combined ratio improved further to 86.8 per cent (87.6). In
Sweden the combined ratio deteriorated due to a worse large claims outcome and
was 93.4 per cent (88.4) and in Norway the combined ratio rose to 95.2 per cent
(91.2). In Denmark the combined ratio improved from the comparison period to
95.9 per cent (127.2) due to a normalized large claim situation compared to
previous year.
Gross premiums written increased to EUR 2,550 million (2,483). The premium
growth was strongest in the business area Baltic and Russia where premiums grew
12.9 per cent compared to previous year and in business area Private with 4.5
per cent growth.
Total costs amounted to EUR 465 million (460). Cost efficiency improved further
in all business areas and the cost ratio decreased to 23.5 per cent (23.8).
Total investment assets of If amounted to EUR 10.1 billion (10.3) on 30 June
2008. Of the assets 92 per cent was invested in fixed income instruments (89), 7
per cent in equity (10) and 1 per cent in other assets (1). Net investment
income for the first six months of 2008 decreased to EUR 52 million (180),
largely due to forward contracts which were entered into in order to increase
the duration of fixed income portfolio. The return on investments for the first
six months of 2008 was -1.6 per cent at market values (2.0). At the end of June
the duration for interest-bearing assets was 3.5 years (2.8).
If's capital position continued to be strong in the second quarter. Solvency
capital amounted to EUR 2,591 million on 30 June 2008 (2,681). The solvency
ratio - solvency capital in relation to net premiums written - was 67 per cent
(71). If's reserve ratios decreased somewhat from the year-end and were 167 per
cent (170) of net premiums written and 247 per cent of claims paid (261).
The cooperation agreement between If P&C and SOK, the Finnish central
organization of the S Group, came into force starting from the beginning of June
2008. If P&C and SOK agreed on the cooperation in October 2007. Under the
agreement, If's customers will be eligible for the S Group's customer bonus for
P&C insurance policies offered to households by If. The agreement is long-term
and significant in scope.
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. Sampo
Life Insurance Baltic SE has the form of a European company and is headquartered
in Estonia. It operates in the other Baltic countries through branches.
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| Results | 1-6 | 1-6 | Change | Q2 | Q2 | Change |
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| EURm | 2008 | 2007 | % | 2008 | 2007 | % |
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| Premiums | 233 | 310 | -25 | 110 | 142 | -22 |
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| Net income from | 16 | 407 | -96 | 58 | 227 | -75 |
| investments | | | | | | |
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| Claims incurred | -412 | -353 | 17 | -179 | -148 | 21 |
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| Change in | 297 | -137 | - | 58 | -115 | - |
| liabilities for | | | | | | |
| inv. and ins. | | | | | | |
| contracts | | | | | | |
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| Staff costs | -12 | -10 | 20 | -6 | -4 | 44 |
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| Other operating | -25 | -25 | -2 | -11 | -13 | -12 |
| expenses | | | | | | |
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| Finance costs | -6 | -5 | 15 | -2 | -2 | 20 |
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| Profit before taxes | 91 | 187 | -51 | 27 | 87 | -69 |
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| Key figures | | | | | | |
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| Expense ratio, % | 117.1 | 110.0 | 7 | | | |
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| Return on equity, % | -35.7 | 31.8 | - | | | |
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| Average number of | 400 | 370 | 8 | | | |
| staff (FTE) | | | | | | |
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Profit before taxes in life insurance for the first half of 2008 was EUR 91
million (187). Net investment income, excluding income on unit-linked contracts,
amounted to EUR 193 million (291). Net investment income from unit-linked
investments was EUR -177 million (116). The fair value reserve decreased EUR 189
million from the beginning of the year and was EUR 101 million on 30 June 2008.
Return on equity (RoE) in life insurance fell to -35.7 per cent (31.8).
Sampo Life Group's investment assets, excluding the assets of EUR 1.9 billion
(2.1) covering unit-linked liabilities, amounted to EUR 5.2 billion (5.7) at
market values on 30 June 2008. Fixed income covered 74 per cent (73), equity 23
per cent (25) and real estate 3 per cent (3) of the total assets. Equity
investments include direct equity holdings, equity funds and private equity.
The return on investments for the first half of 2008 was -1.1 per cent at market
values (5.2). At the end of June 2008 the duration of fixed income assets was
1.7 years (1.9).
After the sale of Sampo Bank in early 2007, Sampo Life has insourced certain
activities previously performed by the Bank. This together with the investments
in the proprietary sales organization, have led to an increase in Sampo Life
Group's expense ratio to 117 per cent (110).
Sampo Life Group's solvency capital remained at a good level and was EUR 682
million (846) on 30 June 2008. Solvency ratio decreased to 13.5 per cent (16.5).
Total technical reserves amounted to EUR 6.5 billion (6.7), from which
unit-linked reserves accounted for EUR 1.9 billion (2.1). The share of
unit-linked reserves of total technical reserves was 30 per cent (31).
In the first half of 2008 Sampo Life Group's premium income on own account
amounted to EUR 233 million (310). Premiums in the focus area, unit-linked
insurance, decreased to EUR 149 million (213) and the share of unit-linked
premiums was 62 per cent of total premiums (68).
Difficult capital market conditions and Sampo Bank's problems were reflected in
the sales performance. Particularly endowment policy sales suffered. Sampo
Bank's problems are expected to continue to distract the sales during the third
quarter of 2008. Proprietary sales channels performed well, particularly in
selling risk and corporate policies.
Sampo Life's market share in unit-linked insurance in Finland decreased to 20.1
per cent (22.2). Sampo Life's overall market share measured by premium income
was 16.0 per cent (19.2).
Uncertain capital market conditions were also reflected in the life insurance
markets of Baltic countries. Sampo Life Group's premium income from the region
decreased by 28 per cent to EUR 20 million (28). Market share data for January -
June 2008 is not yet available.
Holding
Sampo plc manages a significant investment portfolio and, in addition, owns and
controls its subsidiaries engaged in P&C and life insurance.
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| Results | 1-6 | 1-6 | Change | Q2 | Q2 | Change |
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| EURm | 2008 | 2007 | % | 2008 | 2007 | % |
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| Net investment | 179 | 99 | 81 | 151 | 74 | 105 |
| income | | | | | | |
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| Other operating | 2 | 3 | -48 | 0 | 2 | -81 |
| income | | | | | | |
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| Staff costs | -7 | -9 | -26 | -4 | -4 | 15 |
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| Other operating | -8 | -13 | -35 | -4 | -3 | 25 |
| expenses | | | | | | |
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| Finance costs | -18 | -20 | -10 | -9 | -9 | 2 |
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| Profit before | 148 | 61 | 145 | 134 | 60 | 123 |
| taxes | | | | | | |
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| Average number of | 53 | 58 | -9 | - | - | - |
| staff (FTE) | | | | | | |
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The segment's profit before taxes amounted to EUR 148 million (61). The fair
value reserve decreased from the end of 2007 by EUR 492 million and amounted to
EUR -466 million after tax (26).
The assets on Sampo plc's balance sheet on 30 June 2008 comprised investment
assets of EUR 3.8 billion, of which fixed income instruments covered 32 per cent
and equities 68 per cent.
Sampo plc's largest equity holding is Nordea, the market value of which was EUR
2.3 billion on 30 June 2008. Sampo plc held 260,040,000 Nordea shares and, in
addition, Sampo Life held 6,900,000 Nordea shares. Sampo Group's average
acquisition price of Nordea share was EUR 11.11 per share. Sampo plc's assets
also include holdings in insurance subsidiaries for EUR 2.4 billion (2.4).
Balance sheet liabilities include a subordinated note with face value of EUR 600
million which can be paid back in April 2009 at the earliest.
Developments in the second quarter of 2008
Changes in Group structure
Sampo's P&C insurance subsidiary If signed in March 2008 an agreement to acquire
SOAO Region, a Russian insurance company. SOAO Region's main focus is motor
insurance with approximately EUR 23.7 million of premium income. The acquisition
was completed on 5 June 2008.
On 10 June 2008 If P&C Insurance announced a plan to combine its subsidiaries
operating in Estonia, Latvia and Lithuania into one legal entity. The
rearrangement will simplify and strengthen the structure of the Baltic property
and casualty insurance operations and will improve efficiency. AS If Eesti
Kindlustus, operating in Estonia, UAB If Draudimas, operating in Lithuania, and
AAS If Latvia will be merged into one company to be domiciled in Tallinn,
Estonia. The transactions are conditional on the receipt of necessary official
permits by the authorities of the Baltic countries. The plan is to complete the
transactions in first quarter of 2009.
Administration
The Annual General Meeting of Sampo plc held on 15 April 2008 adopted the
financial accounts for 2007 and discharged the Board of Directors and the Group
CEO and President from liability for the financial year. Ernst & Young Oy was
elected as Auditor.
The AGM re-elected Tom Berglund, Anne Brunila, Georg Ehrnrooth, Jukka
Pekkarinen, Christoffer Taxell, Matti Vuoria and Björn Wahlroos to the Board of
Directors. Lýdur Gudmundsson and Eira Palin-Lehtinen were elected as new Board
members. Jussi Pesonen left the Board of Directors. At its organisational
meeting, the Board elected Georg Ehrnrooth as Chairman and Matti Vuoria as Vice
Chairman.
The AGM decided to pay the following fees to the members of the Board of
Directors until the close of the AGM of 2009: the Chairman of the Board will be
paid EUR 160,000 per year, the Vice Chairman EUR 100,000 per year and the other
members EUR 80,000 per year. An amount equivalent to 30 per cent of the annual
fee will be paid in Sampo plc A shares. Board members employed by the company
will not be paid a separate fee for Board work.
Chairman of the Board, Georg Ehrnrooth announced at the AGM that he will not
stand as candidate for Sampo's Board of Directors at the AGM of 2009. Ehrnrooth,
who has been a member of Sampo's Board of Directors since 1992 and Chairman of
the Board since 2006, will thereby leave Sampo's Board of Directors at the end
of the AGM of 2009.
In order to ensure continuity in the management of Sampo Group, the Board's
Nomination and Compensation Committee will propose to the AGM in the spring of
2009, having consulted the major shareholders, that Björn Wahlroos be re-elected
to Sampo's Board of Directors and that he would be elected Chairman of the
Board. Wahlroos would then leave his position as Group CEO and President of
Sampo plc at the end of the AGM of 2009. According to the plan, Group Deputy CEO
Kari Stadigh will be nominated as the new CEO and President of Sampo Group.
Shares and share capital
The Annual General Meeting of 15 April 2008 decided to distribute a dividend of
EUR 1.20 per share for 2007. The record date for dividend payment was 18 April
2008 and the dividend was paid on 25 April 2008. Total dividend payment amounted
to EUR 686 million.
The Annual General Meeting authorised the Board to acquire in one or several
lots a maximum of 50,000,000 Sampo A shares. The shares can also be acquired in
a proportion differing from the proportions of shares owned by the shareholders.
The share price will be no higher than the highest price paid for Sampo shares
in public trading at the time of purchase. The authorisation will be valid until
the close of the next Annual General Meeting, nevertheless not more than 18
months after AGM's decision.
Based on the aforementioned authorisation, Sampo plc's Board of Directors
decided on 7 May 2008 to repurchase Sampo's A shares with distributable capital
and reserves. Maximum amount to be repurchased is 50,000,000 A shares,
corresponding to approximately 8.6 per cent of the total number of shares. The
shares are acquired through public trading on the OMX Nordic Exchange at market
price prevailing at the time of repurchase. No repurchases were made in the
second quarter of 2008.
On 7 May 2008 Sampo plc's Board of Directors decided to cancel 6,715,000 Sampo A
shares repurchased during 2007 and January-March 2008. The cancellation reduces
the number of Sampo A shares with the corresponding amount but has no effect on
the share capital. The cancellation was entered into the Trade Register on 16
May 2008.
On 30 June 2008 Sampo plc's share capital amounted to EUR 98 million (98), and
the number of A shares was 570,615,890. The total number of shares of the
company, including 1,200,000 B shares, was 571,815,890.
On 16 May 2008 Sampo received a disclosure in accordance with Chapter 2 Section
9 of the Securities Market Act regarding Sampo plc's shares. According to the
disclosure Exista hf. and companies controlled by Exista hf. hold shares in
Sampo plc below of the flagging threshold of 20 per cent of the number of shares
as set forth in Chapter 2, Section 9 of the Securities Market Act. According to
the disclosure Exista Trading ehf. has also cancelled the equity swap agreement
regarding 100,000 A shares in Sampo plc referred to in Exista hf.'s flagging
notification of 11 February 2008. According to the disclosure Exista hf. and its
group companies hold 19.98 per cent of the total number of shares and 19.82 per
cent of the voting rights in the Sampo plc. Complete disclosure is available at
www.sampo.com.
Staff
Sampo Group's full-time equivalent staff on 30 June 2008 amounted to 7,048
employees compared to 6,965 employees on 31 December 2007.
At the end of June 2008 approximately 94 per cent of the staff worked in P&C
insurance, 6 per cent in life insurance and 1 per cent in the holding company.
Geographical division of the staff was the following: 31 per cent worked in
Finland, 27 per cent in Sweden, 23 per cent in Norway and 19 per cent in the
Baltic and other countries.
The average number of employees during the first half of 2008 was 6,937 compared
to 6,803 employees during the same period of time in 2007.
Management long-term incentive schemes
The payout on Sampo Group's long-term management incentive schemes is dependent
on Sampo's financial and share price performance. On 7 May 2008 Sampo's Board
decided on a new long-term incentive scheme 2008II. The total maximum number of
bonus units under the scheme is 200,000.
The incentive schemes 2005I - 2008II extend to 2011. The incentive schemes
increased staff costs in the second quarter of 2008 by EUR 2 million (3) and on
30 June 2008 the total provision for the schemes was EUR 10.5 million (20).
The ‘Sampo 2006' share-based incentive scheme increased staff costs by EUR 1
million (1) in the second quarter of 2008. The total provision for the scheme on
30 June 2008 was EUR 6.4 million (4.9).
Ratings
All the main ratings for Sampo Group companies remained unchanged in the second
quarter of 2008.
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| Rated company | Moody's | Standard and Poor's |
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| | Rating | Outlook | Rating | Outlook |
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| Sampo plc | Baa1 | Positive | Not rated | - |
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| If P&C Insurance | A2 | Positive | A | Stable |
| (Sweden) | | | | |
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| If P&C Insurance Co. | A2 | Positive | A | Stable |
| (Finland) | | | | |
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Group solvency
The Group solvency is based on adjusted solvency calculations for insurance
groups according to the Decree of the Ministry of Social Affairs and Health
(1106/2000), Chapter 7.1 §. The adjusted solvency is determined on the basis of
the Group financial statements as permitted by the Insurance Supervisory
Authority.
The Group's solvency ratio (own funds in relation to minimum requirements for
own funds) on 30 June 2008 was 682.8 per cent (774.6).
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| SAMPO GROUP SOLVENCY | 30 June 2008 | 31 December 2007 |
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| EURm | | |
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| Group capital | 6,482 | 7,733 |
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| Sectoral items | 623 | 855 |
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| Intangibles and other deductibles | -1,069 | -1,733 |
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| Group's own funds, total | 6,035 | 6,854 |
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| Minimum requirements for own | 884 | 885 |
| funds, total | | |
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| Group solvency | 5,151 | 5,969 |
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| Group solvency ratio | 682.8 | 774.6 |
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| (Own funds % of minimum | | |
| requirements) | | |
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In Sampo Group, and in its insurance subsidiaries, risks are measured and
aggregated internally using an economic capital framework, which quantifies the
amount of capital required to protect the economic solvency over a one year time
horizon at a confidence level equalling the historic bond defaults of AA-rated
issuers.
The economic capital tied up in Group's operations on 30 June 2008 was EUR 3,106
million (3,395). During the second quarter of 2008 the economic capital
requirement decreased for If P&C by EUR 56 million due to lower equity risk and
for Sampo Life by EUR 45 million due lower interest rate risk and equity risk.
Outlook for the rest of 2008
Uncertainty has increased in the capital markets during the first half of 2008.
The economic environment and financial markets continue to be challenging. Sampo
Group has positioned itself to face an economic downturn by reducing equity
weights in its insurance subsidiaries and by keeping fixed-income investments
mostly in liquid assets.
Sampo Group's result for 2008 will of course depend on investment markets, which
are likely to be more volatile than in previous years. Changes in the market
values of Group's investment assets are, however, recorded in the fair value
reserve in the balance sheet rather than reflected in reported profits, except
for derivative instruments reported through the profit and loss account.
The insurance technical development in P&C insurance is not expected to suffer
from the economic downturn but remain sound in 2008. If P&C is expected to reach
its long-term combined ratio target of below 95 per cent and to achieve a
combined ratio of 91 - 93 per cent for the full year 2008.
Sampo Life Group is not expected to achieve the exceptionally high profits of
2006 and 2007. However, full-year 2008 results are expected to remain reasonably
good with average expected pre-tax profits of approximately 30 million euros per
quarter. Particular emphasis is given to improving sales performance through
Sampo Bank.
Sampo plc has investment assets of EUR 3.8 billion, of which approximately 2.3
billion euros are invested in Nordea. Remaining funds are mainly invested in
liquid money market instruments.
The biggest risks for the outlook are a further severe weakening of equity
markets, a sudden rise in interest rates or widening of credit spreads, which
would in the short term cause valuation losses in the fair value reserve in the
balance sheet. However, Sampo Group's equity capital on 30 June 2008 exceeded
the economic capital required to manage the operations by approximately EUR 3.4
billion and Sampo can therefore well sustain all foreseeable market downturns
and is well positioned to profit from opportunities which may eventually arise
in investment markets.
SAMPO PLC
Board of Directors
For more information, please contact:
Peter Johansson, Group CFO, tel. +358 10 516 0010
Jarmo Salonen, Head of Investor Relations and Group Communications, tel. +358 10
516 0030
Maria Silander, Press Officer, +358 10 516 0031
Essi Nikitin, IR Manager, +358 10 516 0066
Sampo will arrange a Finnish-language press conference (Savoy, Eteläesplanadi
14, Helsinki), at 1 pm Finnish time. An English-language telephone conference
for investors and analysts on the second quarter results will be held at 3 pm (1
pm UK-time). Please call +44 (0)20 7162 0025 (UK/Europe) or +1 334 323 6201
(North America). Password: SAMPO.
The telephone conference can also be followed from a direct transmission on the
Internet at www.sampo.com/ir. A recorded version will later be available at the
same address.
A webcast of Group CEO and President Björn Wahlroos's review of second quarter
developments is available at www.sampo.com/ir.
Sampo will publish third quarter 2008 result release on 5 November 2008.
DISTRIBUTION:
OMX Nordic Exchange Helsinki
The principal media
Financial Supervisory Authority
Insurance Supervisory Authority
www.sampo.com
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| GROUP FINANCIAL REVIEW | | | |
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| FINANCIAL HIGHLIGHTS | | 1-6/2008 | 1-6/2007 |
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| GROUP ¹) | | | |
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| Profit before taxes | EURm | 422 | 3,418 |
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| Return on equity (at fair value) | % | -14.5 | 50.7 |
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| Return on assets (at fair value) | % | -2.5 | 10.4 |
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| Equity/assets ratio | % | 26.6 | 30.4 |
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| Group solvency ²) | EURm | 5,151 | 6,716 |
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| Group solvency ratio | % | 682.8 | 856.9 |
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| Average number of staff 4) | | 6,937 | 6,803 |
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| PROPERTY & CASUALTY INSURANCE | | | |
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| Premiums written before reinsurers' | EURm | 2,550 | 2,483 |
| share | | | |
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| Premiums earned | EURm | 1,912 | 1,863 |
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| Profit before taxes | EURm | 182 | 311 |
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| Return on equity (at current value) | % | -4.8 | 21.7 |
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| Risk ratio ³) | % | 68.9 | 68.2 |
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| Cost ratio ³) | % | 23.5 | 23.8 |
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| Loss ratio ³) | % | 76.8 | 75.6 |
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| Loss ratio excl. unwinding of discount | % | 75.3 | 74.8 |
| ³) | | | |
--------------------------------------------------------------------------------
| Expense ratio ³) | % | 17.1 | 17.2 |
--------------------------------------------------------------------------------
| Combined ratio | % | 94.0 | 92.8 |
--------------------------------------------------------------------------------
| Combined ratio excl. unwinding of | % | 92.4 | 92.0 |
| discount | | | |
--------------------------------------------------------------------------------
| Average number of staff | | 6,484 | 6,375 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIFE INSURANCE | | | |
--------------------------------------------------------------------------------
| Premiums written before reinsurers' | EURm | 239 | 314 |
| share | | | |
--------------------------------------------------------------------------------
| Profit before taxes | EURm | 91 | 187 |
--------------------------------------------------------------------------------
| Return on equity (at current value) | % | -35.7 | 31.8 |
--------------------------------------------------------------------------------
| Expense ratio | % | 117.1 | 110.0 |
--------------------------------------------------------------------------------
| Average number of staff | | 400 | 370 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| HOLDING | | | |
--------------------------------------------------------------------------------
| Profit before taxes | EURm | 148 | 61 |
--------------------------------------------------------------------------------
| Average number of staff 4) | | 53 | 58 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| PER SHARE KEY FIGURES | | | |
--------------------------------------------------------------------------------
| Earnings per share | EUR | 0.60 | 5.66 |
--------------------------------------------------------------------------------
| Earnings per share, continuing | EUR | - | 0.72 |
| operations | | | |
--------------------------------------------------------------------------------
| Earnings per share, incl. change in | EUR | -0.90 | 5.68 |
| fair value reserve | | | |
--------------------------------------------------------------------------------
| Earnings per share, incl. change in | EUR | - | 0.74 |
| fair value reserve, continuing | | | |
| operations | | | |
--------------------------------------------------------------------------------
| Capital and reserves per share | EUR | 11.33 | 13.35 |
--------------------------------------------------------------------------------
| Net asset value per share | EUR | 11.36 | 13.38 |
--------------------------------------------------------------------------------
| Adjusted share price, high | EUR | 19.30 | 24.38 |
--------------------------------------------------------------------------------
| Adjusted share price, low | EUR | 14.80 | 19.88 |
--------------------------------------------------------------------------------
| Market capitalisation | EURm | 9,178 | 12,357 |
--------------------------------------------------------------------------------
¹) Sampo plc's sales gain (EURm 2,830) arising from the disposal of the share
stock of Sampo Bank plc to Danske Bank A/S is included in the comparison Group
key figures.
²) The Group solvency is based on adjusted solvency calculations for insurance
groups according to the Decree of the Ministry of Social Affairs and Health
(1106/2000), Chapter 7.1 §. The adjusted solvency is determined on the basis of
the Group financial statements as permitted by the Insurance Supervisory
Authority.
³) The key figures for P&C Insurance are based on activity based costs and
cannot, therefore, be calculated directly from the consolidated income
statement. The result analysis of P&C insurance is presented in note 13.
In calculating the per share key figures, the number of shares used at the
balance sheet date was 571,815,890 and the average number of shares during the
period 573,643,115. The treasury shares (6,715,000) cancelled on 16 May 2008
have been deducted from the average number of shares (4,887,775).
In calculating the key figures, the tax corresponding to the result for the
accounting period has been taken into account. The valuation differences of
investment property and held-to-maturity debt securities have been taken into
account in return on assets, return on equity, equity/assets ratio and net asset
value per share. Additionally, the change in fair value reserve has been taken
into account in return on assets and return on equity. A deferred tax liability
has been deducted from the valuation differences.
The key figures for the insurance business have been calculated in accordance
with the decree issued by the Ministry of Finance and the specifying regulations
and instructions of the Insurance Supervisory Authority.
--------------------------------------------------------------------------------
| CALCULATION OF KEY FIGURES | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity (fair values), % | |
--------------------------------------------------------------------------------
| + profit before taxes | |
--------------------------------------------------------------------------------
| + change in fair value reserve | |
--------------------------------------------------------------------------------
| + change in valuation differences on investments | |
--------------------------------------------------------------------------------
| - tax (incl. change in deferred tax relating to | x 100 % |
| valuation differences on investments) | |
--------------------------------------------------------------------------------
| + total equity | |
--------------------------------------------------------------------------------
| + valuation differences on investments after deduction | |
| of deferred tax | |
--------------------------------------------------------------------------------
| (average of values 1 Jan. and the end of reporting | |
| period) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on assets (at fair values), % | |
--------------------------------------------------------------------------------
| + operating profit | |
--------------------------------------------------------------------------------
| + interest and other financial charges | |
--------------------------------------------------------------------------------
| + calculated interest on technical provisions | |
--------------------------------------------------------------------------------
| + change in fair value reserve | |
--------------------------------------------------------------------------------
| + change in valuation differences on investments | x 100 % |
--------------------------------------------------------------------------------
| + balance sheet total | |
--------------------------------------------------------------------------------
| - technical provisions relating to unit-linked | |
| insurance | |
--------------------------------------------------------------------------------
| + valuation differences on investments | |
--------------------------------------------------------------------------------
| (average of values on 1 Jan. and the end of the | |
| reporting period) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity/assets ratio (at fair values), % | |
--------------------------------------------------------------------------------
| + total equity | |
--------------------------------------------------------------------------------
| + valuation differences on investments after deduction | x 100 % |
| of deferred tax | |
--------------------------------------------------------------------------------
| + balance sheet total | |
--------------------------------------------------------------------------------
| + valuation differences on investments | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Risk ratio for P&C Insurance, % | |
--------------------------------------------------------------------------------
| + claims incurred | |
--------------------------------------------------------------------------------
| - claims settlement expenses | x 100 % |
--------------------------------------------------------------------------------
| insurance premiums earned | |
--------------------------------------------------------------------------------
| | |
--------------------------------------------------------------------------------
| Cost ratio for P&C Insurance, % | |
--------------------------------------------------------------------------------
| + operating expenses | |
--------------------------------------------------------------------------------
| + claims settlement expenses | x 100 % |
--------------------------------------------------------------------------------
| insurance premiums earned | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Loss ratio for P&C Insurance, % | |
--------------------------------------------------------------------------------
| claims incurred | x 100 % |
--------------------------------------------------------------------------------
| insurance premiums earned | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Expense ratio for P&C Insurance, % | |
--------------------------------------------------------------------------------
| operating expenses | x 100 % |
--------------------------------------------------------------------------------
| insurance premiums earned | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Combined ratio for P&C Insurance, % | |
--------------------------------------------------------------------------------
| Loss ratio + expense ratio | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Expense ratio for life insurance, % | |
--------------------------------------------------------------------------------
| + operating expenses before change in deferred | |
| acquisition costs | |
--------------------------------------------------------------------------------
| + claims settlement expenses | x 100 % |
--------------------------------------------------------------------------------
| expense charges | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Per share key figures | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share | |
--------------------------------------------------------------------------------
| Profit for the financial period attributable to the | |
| parent | |
--------------------------------------------------------------------------------
| company's equity holders | |
--------------------------------------------------------------------------------
| adjusted average number of shares | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity per share | |
--------------------------------------------------------------------------------
| Profit for the financial period attributable to the | |
| parent | |
--------------------------------------------------------------------------------
| company's equity holders | |
--------------------------------------------------------------------------------
| adjusted number of shares at the balance sheet date | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net asset value per share | |
--------------------------------------------------------------------------------
| + equity attributable to the parent company's equity | |
| holders | |
--------------------------------------------------------------------------------
| + valuation differences after the deduction of | |
| deferred taxes | |
--------------------------------------------------------------------------------
| adjusted number of shares at balance sheet date | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Market capitalisation | |
--------------------------------------------------------------------------------
| number of shares at the balance sheet date | |
--------------------------------------------------------------------------------
| x closing share price at the balance sheet date | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP QUARTERLY INCOME | | | | | |
| STATEMENT | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EURm | 4-6/20 | 1-3/20 | 10-12/2 | 7-9/20 | 4-6/200 |
| | 08 | 08 | 007 | 07 | 7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Insurance premiums written | 1,033 | 1,552 | 974 | 887 | 1,046 |
--------------------------------------------------------------------------------
| Net income from investments | 243 | 2 | 75 | 217 | 360 |
--------------------------------------------------------------------------------
| Other operating income | 1 | 6 | 8 | 6 | 6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Claims incurred | -825 | -904 | -789 | -781 | -769 |
--------------------------------------------------------------------------------
| Change in liabilities for | 97 | -241 | 180 | 193 | -84 |
| insurance and investment | | | | | |
| contracts | | | | | |
--------------------------------------------------------------------------------
| Staff costs | -127 | -119 | -117 | -120 | -116 |
--------------------------------------------------------------------------------
| Other operating expenses | -130 | -135 | -155 | -132 | -139 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance costs | -12 | -22 | -17 | -16 | -16 |
--------------------------------------------------------------------------------
| Share of associates' | 0 | 2 | 1 | 1 | 1 |
| profit/loss | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from continuing | 279 | 142 | 160 | 256 | 289 |
| operations before taxes | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Taxes | -39 | -37 | -46 | -65 | -75 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from continuing | 241 | 106 | 113 | 191 | 214 |
| operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from discontinued | - | - | 0 | 0 | 0 |
| operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period | 241 | 106 | 113 | 191 | 214 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | | | |
--------------------------------------------------------------------------------
| Equity holders of parent | 241 | 106 | 113 | 191 | 214 |
| company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EURm | Note | 1-6/2008 | 1-6/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Insurance premiums written | 1 | 2,585 | 2,598 |
--------------------------------------------------------------------------------
| Net income from investments | 2 | 246 | 682 |
--------------------------------------------------------------------------------
| Other operating income | | 7 | 11 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Claims incurred | 3 | -1,729 | -1,625 |
--------------------------------------------------------------------------------
| Change in liabilities for insurance and | | -143 | -562 |
| investment contracts | | | |
--------------------------------------------------------------------------------
| Staff costs | 4 | -246 | -241 |
--------------------------------------------------------------------------------
| Other operating expenses | | -265 | -271 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance costs | | -35 | -35 |
--------------------------------------------------------------------------------
| Share of associates' profit/loss | | 2 | 1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from continuing operations | | 422 | 559 |
| before taxes | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Taxes | | -76 | -143 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from continuing operations | | 346 | 416 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from discontinued operations | | - | 2,853 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period | | 346 | 3,269 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | |
--------------------------------------------------------------------------------
| Equity holders of parent company | | 346 | 3,269 |
--------------------------------------------------------------------------------
| Minority interest | | 0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earning per share (eur) | | 0.60 | 5.66 |
--------------------------------------------------------------------------------
| Basic, continuing operations | | - | 0.72 |
--------------------------------------------------------------------------------
| Basic, discontinued operations | | - | 4.94 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EURm | Note | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | | 39 | 40 |
--------------------------------------------------------------------------------
| Investment property | | 142 | 158 |
--------------------------------------------------------------------------------
| Intangible assets | 5 | 717 | 718 |
--------------------------------------------------------------------------------
| Investments in associates | | 5 | 9 |
--------------------------------------------------------------------------------
| Financial assets | 6, 7 | 18,470 | 19,575 |
--------------------------------------------------------------------------------
| Investments related to unit-linked | 8 | 1,935 | 2,072 |
| insurance contracts | | | |
--------------------------------------------------------------------------------
| Tax assets | | 283 | 89 |
--------------------------------------------------------------------------------
| Reinsurers' share of insurance | | 567 | 489 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Other assets | | 1,620 | 1,316 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | | 640 | 958 |
--------------------------------------------------------------------------------
| Total assets | | 24,419 | 25,424 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | | |
--------------------------------------------------------------------------------
| Liabilities for insurance and | 9 | 13,635 | 13,148 |
| investment contracts | | | |
--------------------------------------------------------------------------------
| Liabilities for unit-linked insurance | 10 | 1,939 | 2,071 |
| and investment contracts | | | |
--------------------------------------------------------------------------------
| Financial liabilities | 11 | 1,151 | 1,102 |
--------------------------------------------------------------------------------
| Tax liabilities | | 447 | 562 |
--------------------------------------------------------------------------------
| Provisions | | 30 | 35 |
--------------------------------------------------------------------------------
| Employee benefits | | 108 | 118 |
--------------------------------------------------------------------------------
| Other liabilities | | 628 | 655 |
--------------------------------------------------------------------------------
| Total liabilities | | 17,938 | 17,691 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | | | |
--------------------------------------------------------------------------------
| Share capital | | 98 | 98 |
--------------------------------------------------------------------------------
| Reserves | | 986 | 1,847 |
--------------------------------------------------------------------------------
| Retained earnings | | 5,397 | 5,788 |
--------------------------------------------------------------------------------
| Equity attributable to parent company's | | 6,481 | 7,733 |
| equityholders | | | |
--------------------------------------------------------------------------------
| Minority interest | | 0 | 0 |
--------------------------------------------------------------------------------
| Total equity | | 6,482 | 7,733 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities | | 24,419 | 25,424 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENTS | | | | | | | | |
| OF CHANGES | | | | | | | | |
| IN EQUITY, | | | | | | | | |
| IFRS | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EURm | Shar | Shar | Legal | Fair | Retain | Total | Minori | Total |
| | e | e | reser | value | ed | | ty | |
| | capi | prem | ve | reser | earnin | | intere | |
| | tal | ium | | ve | gs | | st | |
| | | acco | | | | | | |
| | | unt | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity at 1 | 95 | 1,15 | 370 | 486 | 3,061 | 5,168 | 21 | 5,189 |
| Jan. 2007 | | 7 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Items of | | 0 | 0 | 3 | -3 | -1 | -21 | -22 |
| equity of | | | | | | | | |
| disposed | | | | | | | | |
| operations | | | | | | | | |
--------------------------------------------------------------------------------
| Financial | | | | | | | | |
| assets | | | | | | | | |
| available-fo | | | | | | | | |
| r-sale | | | | | | | | |
--------------------------------------------------------------------------------
| - recognised | | | | 5 | | 5 | | 5 |
| in equity | | | | | | | | |
--------------------------------------------------------------------------------
| - recognised | | | | -176 | | -176 | | -176 |
| in p/l | | | | | | | | |
--------------------------------------------------------------------------------
| Exchange | | | | | -74 | -74 | | -74 |
| rate | | | | | | | | |
| translation | | | | | | | | |
| difference | | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | | | | | 3,572 | 3,572 | 0 | 3,572 |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Total income | | 0 | 0 | -169 | 3,495 | 3,326 | 0 | 3,305 |
| and expenses | | | | | | | | |
| recognised | | | | | | | | |
| for the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Subscription | 3 | 4 | | | | 6 | | 6 |
| for shares | | | | | | | | |
| with options | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | | | 0 | 0 | | 0 |
| payments | | | | | | | | |
--------------------------------------------------------------------------------
| Acquisition | | | | | -81 | -81 | | -81 |
| of treasury | | | | | | | | |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Recognition | | | | | 6 | 6 | | 6 |
| of undrawn | | | | | | | | |
| dividends | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | -693 | -693 | | -693 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity at 31 | 98 | 1,16 | 370 | 317 | 5,788 | 7,733 | 0 | 7,733 |
| Dec. 2007 | | 0 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial | | | | | | | | |
| assets | | | | | | | | |
| available-fo | | | | | | | | |
| r-sale | | | | | | | | |
--------------------------------------------------------------------------------
| - recognised | | | | -855 | | -855 | | -855 |
| in equity | | | | | | | | |
--------------------------------------------------------------------------------
| - recognised | | | | -6 | | -6 | | -6 |
| in p/l | | | | | | | | |
--------------------------------------------------------------------------------
| Exchange | | | | | -9 | -9 | | -9 |
| rate | | | | | | | | |
| translation | | | | | | | | |
| difference | | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | | | | | 346 | 346 | 0 | 346 |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
| Total income | - | - | - | -861 | 337 | -524 | 0 | -524 |
| and expenses | | | | | | | | |
| recognised | | | | | | | | |
| for the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | | | 1 | 1 | | 1 |
| payments | | | | | | | | |
--------------------------------------------------------------------------------
| Acquisition | | | | | -45 | -45 | | -45 |
| of treasury | | | | | | | | |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Recognition | | | | | 3 | 3 | | 3 |
| of undrawn | | | | | | | | |
| dividends | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | -686 | -686 | | -686 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity at 30 | 98 | 1,16 | 370 | -544 | 5,397 | 6,481 | 0 | 6,482 |
| June 2008 | | 0 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF CASH FLOWS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 1-6/2008 | 1-6/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalent at the beginning of | 971 | 2,016 |
| the period | | |
--------------------------------------------------------------------------------
| Cash flow from/used in operating activities | 498 | -2,435 |
--------------------------------------------------------------------------------
| Cash flow from/used in investing activities | -103 | 2,662 |
--------------------------------------------------------------------------------
| Cash flow from/used in financing activities | -722 | -1,332 |
--------------------------------------------------------------------------------
| Paid dividends | -678 | -690 |
--------------------------------------------------------------------------------
| Subscription for shares with options | -45 | - |
--------------------------------------------------------------------------------
| Acquisition of own shares | - | 6 |
--------------------------------------------------------------------------------
| Increase of liabilities | - | 742 |
--------------------------------------------------------------------------------
| Decrease of liabilities | - | -1,390 |
--------------------------------------------------------------------------------
| Cash and cash equivalent at the end of the | 644 | 911 |
| period | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The net cash flows of discontinued operations | 1-6/2008 | 1-6/2007 |
--------------------------------------------------------------------------------
| Cash flow used in operating activities | - | -712 |
--------------------------------------------------------------------------------
| Cash flow from/used in investing activities | - | 3,224 |
--------------------------------------------------------------------------------
| Cash flow from/used in financing activities | - | -299 |
--------------------------------------------------------------------------------
| Net cash flows total | - | 2,214 |
--------------------------------------------------------------------------------
In the statements, the net cash derived from the disposal of Banking and
investment services, is included in the cash flow from investing activities.
The cash flow statement reports cash flows during the period classified by
operating, investing and financing activities. Cash flows are reported by using
the indirect method. Cash flows from operating activities derive primarily from
the principal revenue-producing activities. Cash flows from investments in
subsidiaries and associated undertakings and those from investments in
intangible assets and property, plant and equipment are presented in investing
activities. Financing activities include cash flows resulting from changes in
equity and borrowings in order to conduct the business. Cash and cash
equivalents consist of cash at bank and in hand and short-term deposits (under 3
months).
NOTES
ACCOUNTING POLICIES
Sampo Group's consolidated financial statements are prepared in accordance with
the International Financial Reporting Standards (IFRS) adopted by the EU. The
interim financial statements are presented in accordance with IAS 34 Interim
Financial Reporting. In preparing the interim financial statements, the same
accounting policies and methods of computation are applied as in the financial
statements for 2007. Sampo has not adopted new standards or interpretations in
2008.
The financial statements for 2007 are available on Sampo's website at the
address www.sampo.com/ir.
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME | | | | | |
| STATEMENT BY SEGMENT FOR | | | | | |
| SIX MONTHS ENDED 30 JUNE | | | | | |
| 2008 | | | | | |
--------------------------------------------------------------------------------
| EURm | P&C | Life | Holding | Elimina- | Group |
| | insuranc | insuran | | tion | |
| | e | ce | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Insurance premius | 2,352 | 233 | - | - | 2,585 |
| written | | | | | |
--------------------------------------------------------------------------------
| Net income from | 52 | 16 | 179 | -1 | 246 |
| investments | | | | | |
--------------------------------------------------------------------------------
| Other operating income | 14 | 0 | 2 | -9 | 7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Claims incurred | -1,317 | -412 | - | - | -1,729 |
--------------------------------------------------------------------------------
| Change in liabilities | -440 | 297 | - | - | -143 |
| for insurance and | | | | | |
| investment contracts | | | | | |
--------------------------------------------------------------------------------
| Staff costs | -227 | -12 | -7 | - | -246 |
--------------------------------------------------------------------------------
| Other operating expenses | -238 | -25 | -8 | 6 | -265 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance costs | -15 | -6 | -18 | 5 | -35 |
--------------------------------------------------------------------------------
| Share of associates' | 1 | 0 | 0 | - | 2 |
| profit/loss | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before taxes | 182 | 91 | 148 | 1 | 422 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Taxes | | | | | -76 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period | | | | | 346 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | | | |
--------------------------------------------------------------------------------
| Equity holders of parent | | | | | 346 |
| company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | | | | | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME | | | | | |
| STATEMENT BY SEGMENT FOR | | | | | |
| SIX MONTHS ENDED 30 JUNE | | | | | |
| 2007 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EURm | P&C | Life | Holding | Elimina- | Group |
| | insuranc | insuran | | tion | |
| | e | ce | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Insurance premius | 2,288 | 310 | - | - | 2,598 |
| written | | | | | |
--------------------------------------------------------------------------------
| Net income from | 180 | 407 | 99 | -4 | 682 |
| investments | | | | | |
--------------------------------------------------------------------------------
| Other operating income | 13 | 0 | 3 | -5 | 11 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Claims incurred | -1,272 | -353 | - | - | -1,625 |
--------------------------------------------------------------------------------
| Change in liabilities | -425 | -137 | - | - | -562 |
| for insurance and | | | | | |
| investment contracts | | | | | |
--------------------------------------------------------------------------------
| Staff costs | -222 | -10 | -9 | - | -241 |
--------------------------------------------------------------------------------
| Other operating expenses | -238 | -25 | -13 | 5 | -271 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance costs | -14 | -5 | -20 | 4 | -35 |
--------------------------------------------------------------------------------
| Share of associates' | 0 | 0 | 0 | - | 1 |
| profit/loss | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from continuing | 311 | 187 | 61 | 0 | 559 |
| operations before taxes | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Taxes | | | | | -143 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from continuing | | | | | 416 |
| operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from discontinued | | | | | 2,853 |
| operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period | | | | | 3,269 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | | | |
--------------------------------------------------------------------------------
| Equity holders of parent | | | | | 3,269 |
| company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | | | | | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE | | | | | |
| SHEET BY SEGMENT AT 30 | | | | | |
| JUNE 2008 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EURm | P&C | Life | Holding | Elimina- | Group |
| | insuran | insuranc | | tion | |
| | ce | e | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets | | | | | |
--------------------------------------------------------------------------------
| Property, plant and | 28 | 6 | 5 | - | 39 |
| equipment | | | | | |
--------------------------------------------------------------------------------
| Investment property | 30 | 102 | 10 | - | 142 |
--------------------------------------------------------------------------------
| Intangible assets | 552 | 165 | 0 | - | 717 |
--------------------------------------------------------------------------------
| Investments in associates | 3 | 2 | 0 | - | 5 |
--------------------------------------------------------------------------------
| Financial assets | 9,742 | 4,983 | 6,244 | -2,498 | 18,470 |
--------------------------------------------------------------------------------
| Investments related to | - | 1,935 | - | - | 1,935 |
| unit-linked insurance | | | | | |
| contracts | | | | | |
--------------------------------------------------------------------------------
| Tax assets | 89 | 26 | 168 | 0 | 283 |
--------------------------------------------------------------------------------
| Reinsurers' share of | 563 | 4 | - | - | 567 |
| insurance liabilities | | | | | |
--------------------------------------------------------------------------------
| Other assets | 1,537 | 57 | 47 | -21 | 1,620 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 420 | 127 | 94 | - | 640 |
--------------------------------------------------------------------------------
| Total assets | 12,965 | 7,405 | 6,568 | -2,519 | 24,419 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | | | | |
--------------------------------------------------------------------------------
| Liabilities for insurance | 9,078 | 4,556 | - | - | 13,635 |
| and investment contracts | | | | | |
--------------------------------------------------------------------------------
| Liabilities for | - | 1,939 | - | - | 1,939 |
| unit-linked insurance and | | | | | |
| investment contracts | | | | | |
--------------------------------------------------------------------------------
| Financial liabilities | 560 | 116 | 600 | -125 | 1,151 |
--------------------------------------------------------------------------------
| Tax liabilities | 360 | 77 | 10 | - | 447 |
--------------------------------------------------------------------------------
| Provisions | 30 | - | - | - | 30 |
--------------------------------------------------------------------------------
| Employee benefits | 108 | - | - | - | 108 |
--------------------------------------------------------------------------------
| Other liabilities | 519 | 63 | 67 | -21 | 628 |
--------------------------------------------------------------------------------
| Total liabilities | 10,655 | 6,751 | 677 | -146 | 17,938 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | | | | | |
--------------------------------------------------------------------------------
| Share capital | | | | | 98 |
--------------------------------------------------------------------------------
| Reserves | | | | | 986 |
--------------------------------------------------------------------------------
| Retained earnings | | | | | 5,397 |
--------------------------------------------------------------------------------
| Equity attributable to | | | | | 6,481 |
| parent company's | | | | | |
| equityholders | | | | | |
--------------------------------------------------------------------------------
| Minority interest | | | | | 0 |
--------------------------------------------------------------------------------
| Total equity | | | | | 6,482 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and | | | | | 24,419 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE | | | | | |
| SHEET BY SEGMENT AT 31 | | | | | |
| DECEMBER 2007 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EURm | P&C | Life | Holding | Elimina- | Group |
| | insuran | insuranc | | tion | |
| | ce | e | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets | | | | | |
--------------------------------------------------------------------------------
| Property, plant and | 29 | 5 | 6 | - | 40 |
| equipment | | | | | |
--------------------------------------------------------------------------------
| Investment property | 41 | 105 | 12 | - | 158 |
--------------------------------------------------------------------------------
| Intangible assets | 554 | 164 | 0 | - | 718 |
--------------------------------------------------------------------------------
| Investments in associates | 4 | 2 | 3 | - | 9 |
--------------------------------------------------------------------------------
| Financial assets | 9,467 | 5,456 | 7,151 | -2,499 | 19,575 |
--------------------------------------------------------------------------------
| Investments related to | - | 2,072 | - | - | 2,072 |
| unit-linked insurance | | | | | |
--------------------------------------------------------------------------------
| Tax assets | 84 | 0 | 5 | 1 | 89 |
--------------------------------------------------------------------------------
| Reinsurers' share of | 484 | 5 | - | - | 489 |
| insurance liabilities | | | | | |
--------------------------------------------------------------------------------
| Other assets | 1,224 | 66 | 54 | -29 | 1,316 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 637 | 93 | 229 | - | 958 |
--------------------------------------------------------------------------------
| Total assets | 12,524 | 7,968 | 7,458 | -2,527 | 25,424 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | | | | |
--------------------------------------------------------------------------------
| Liabilities for insurance | 8,527 | 4,621 | - | - | 13,148 |
| and investment contracts | | | | | |
--------------------------------------------------------------------------------
| Liabilities for | - | 2,071 | - | - | 2,071 |
| unit-linked insurance and | | | | | |
| investment contracts | | | | | |
--------------------------------------------------------------------------------
| Financial liabilities | 530 | 101 | 596 | -125 | 1,102 |
--------------------------------------------------------------------------------
| Tax liabilities | 391 | 155 | 16 | - | 562 |
--------------------------------------------------------------------------------
| Provisions | 35 | - | - | - | 35 |
--------------------------------------------------------------------------------
| Employee benefits | 118 | - | - | - | 118 |
--------------------------------------------------------------------------------
| Other liabilities | 558 | 46 | 79 | -29 | 655 |
--------------------------------------------------------------------------------
| Total liabilities | 10,159 | 6,994 | 690 | -153 | 17,691 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | | | | | |
--------------------------------------------------------------------------------
| Share capital | | | | | 98 |
--------------------------------------------------------------------------------
| Reserves | | | | | 1,847 |
--------------------------------------------------------------------------------
| Retained earnings | | | | | 5,788 |
--------------------------------------------------------------------------------
| Equity attributable to | | | | | 7,733 |
| parent company's | | | | | |
| equityholders | | | | | |
--------------------------------------------------------------------------------
| Minority interest | | | | | 0 |
--------------------------------------------------------------------------------
| Total equity | | | | | 7,733 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and | | | | | 25,424 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER NOTES | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1 INSURANCE PREMIUMS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | | |
--------------------------------------------------------------------------------
| | 1-6/2008 | 1-6/2007 |
--------------------------------------------------------------------------------
| Premiums from insurance contracts | | |
--------------------------------------------------------------------------------
| Premiums written, direct insurance | 2,485 | 2,424 |
--------------------------------------------------------------------------------
| Premiums written, assumed reinsurance | 65 | 60 |
--------------------------------------------------------------------------------
| Premiums written, gross | 2,550 | 2,483 |
--------------------------------------------------------------------------------
| Ceded reinsurance premiums written | -198 | -195 |
--------------------------------------------------------------------------------
| P&C Insurance, total | 2,352 | 2,288 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in unearned premium provision | -514 | -494 |
--------------------------------------------------------------------------------
| Reinsurers' share | 74 | 69 |
--------------------------------------------------------------------------------
| Premiums earned for P&C Insurance, total | 1,912 | 1,863 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | | |
--------------------------------------------------------------------------------
| | 1-6/2008 | 1-6/2007 |
--------------------------------------------------------------------------------
| Premiums from insurance contracts | | |
--------------------------------------------------------------------------------
| Premiums from contracts with discretionary | 88 | 97 |
| participation feature | | |
--------------------------------------------------------------------------------
| Premiums from unit-linked contracts | 135 | 200 |
--------------------------------------------------------------------------------
| Premiums from other contracts | 2 | 3 |
--------------------------------------------------------------------------------
| Insurance contracts, total | 225 | 300 |
--------------------------------------------------------------------------------
| Assumed reinsurance | 0 | 0 |
--------------------------------------------------------------------------------
| Premiums from investment contracts | | |
--------------------------------------------------------------------------------
| Premiums from contracts with discretionary | 0 | 1 |
| participation feature | | |
--------------------------------------------------------------------------------
| Premiums from unit-linked contracts | 14 | 13 |
--------------------------------------------------------------------------------
| Investment contracts, total | 14 | 14 |
--------------------------------------------------------------------------------
| Reinsurers' shares | -6 | -5 |
--------------------------------------------------------------------------------
| Life insurance, total | 233 | 310 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Single and regular premiums from direct | | |
| insurance | | |
--------------------------------------------------------------------------------
| Regular premiums, insurance contracts | 185 | 190 |
--------------------------------------------------------------------------------
| Single premiums, insurance contracts | 40 | 110 |
--------------------------------------------------------------------------------
| Single premiums, investment contracts | 14 | 14 |
--------------------------------------------------------------------------------
| Total | 239 | 314 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | 2,585 | 2,598 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 2 NET INCOME FROM INVESTMENTS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C Insurance | | |
--------------------------------------------------------------------------------
| | 1-6/2008 | 1-6/2007 |
--------------------------------------------------------------------------------
| Financial assets | | |
--------------------------------------------------------------------------------
| Derivative financial instruments | -48 | 19 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial assets designated as at fair value | | |
| through p/l | | |
--------------------------------------------------------------------------------
| Debt securities | 65 | 50 |
--------------------------------------------------------------------------------
| Equity securities | -114 | 131 |
--------------------------------------------------------------------------------
| Total | -49 | 182 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Loans and receivables | 17 | 12 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial asset available-for-sale | | |
--------------------------------------------------------------------------------
| Debt securities | 135 | - |
--------------------------------------------------------------------------------
| Equity securities | 31 | - |
--------------------------------------------------------------------------------
| Total | 166 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total financial assets | 86 | 212 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income from other assets | 1 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fee and commission expense | -5 | -4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Expense on other than financial liabilities | -1 | -1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Effect of discounting annuities | -30 | -28 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance, total | 52 | 180 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | | |
--------------------------------------------------------------------------------
| | 1-6/2008 | 1-6/2007 |
--------------------------------------------------------------------------------
| Financial assets | | |
--------------------------------------------------------------------------------
| Derivative financial instruments | 47 | 22 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial assets designated as at fair value | | |
| through p/l | | |
--------------------------------------------------------------------------------
| Debt securities | -2 | 0 |
--------------------------------------------------------------------------------
| Equity securities | -1 | 0 |
--------------------------------------------------------------------------------
| Total | -3 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investments related to unit-linked contracts | | |
--------------------------------------------------------------------------------
| Debt securities | -2 | -3 |
--------------------------------------------------------------------------------
| Equity securities | -175 | 119 |
--------------------------------------------------------------------------------
| Total | -177 | 116 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investment securities held-to-maturity | | |
--------------------------------------------------------------------------------
| Debt securities | 0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Loans and receivables | -2 | 3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial asset available-for-sale | | |
--------------------------------------------------------------------------------
| Debt securities | 58 | 46 |
--------------------------------------------------------------------------------
| Equity securities | 84 | 213 |
--------------------------------------------------------------------------------
| Total | 142 | 259 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total income from financial assets | 7 | 400 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other assets | 4 | 1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fee and commission income, net | 6 | 6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance, total | 16 | 407 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding | | |
--------------------------------------------------------------------------------
| | 1-6/2008 | 1-6/2007 |
--------------------------------------------------------------------------------
| Financial assets | | |
--------------------------------------------------------------------------------
| Derivative financial instruments | 0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Loans and other receivables | 6 | -1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial assets available-for-sale | | |
--------------------------------------------------------------------------------
| Debt securities | 42 | 61 |
--------------------------------------------------------------------------------
| Equity securities | 136 | 40 |
--------------------------------------------------------------------------------
| Total | 178 | 101 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other assets | -5 | -1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding, total | 179 | 99 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Elimination items between segments | -1 | -4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | 246 | 682 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3 CLAIMS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | 1-6/2008 | 1-6/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Claims paid | -1,319 | -1,157 |
--------------------------------------------------------------------------------
| Reinsurers' share | 71 | 54 |
--------------------------------------------------------------------------------
| Claims paid, net | -1,248 | -1,104 |
--------------------------------------------------------------------------------
| Change in provision for claims outstanding | -78 | -180 |
--------------------------------------------------------------------------------
| Reinsurers' share | 10 | 12 |
--------------------------------------------------------------------------------
| P&C Insurance total | -1,317 | -1,272 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | 1-6/2008 | 1-6/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Claims paid | -312 | -297 |
--------------------------------------------------------------------------------
| Reinsurers' share | 4 | 4 |
--------------------------------------------------------------------------------
| Claims paid, net | -308 | -293 |
--------------------------------------------------------------------------------
| Change in provision for claims outstanding | -104 | -60 |
--------------------------------------------------------------------------------
| Reinsurers' share | 0 | 0 |
--------------------------------------------------------------------------------
| Life insurance, total | -412 | -353 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | -1,729 | -1,625 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4 STAFF COSTS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | 1-6/2008 | 1-6/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Wages and salaries | -161 | -151 |
--------------------------------------------------------------------------------
| Granted equity-settled share options | 0 | 0 |
--------------------------------------------------------------------------------
| Granted cash-settled share options | -2 | -5 |
--------------------------------------------------------------------------------
| Pension costs | -31 | -34 |
--------------------------------------------------------------------------------
| Other social security costs | -32 | -31 |
--------------------------------------------------------------------------------
| P&C insurance, total | -227 | -222 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | 1-6/2008 | 1-6/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Wages and salaries | -10 | -8 |
--------------------------------------------------------------------------------
| Granted equity-settled share options | 0 | 0 |
--------------------------------------------------------------------------------
| Granted cash-settled share options | 0 | 0 |
--------------------------------------------------------------------------------
| Pension costs | -2 | -1 |
--------------------------------------------------------------------------------
| Other social security costs | -1 | -1 |
--------------------------------------------------------------------------------
| Life insurance, total | -12 | -10 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding | 1-6/2008 | 1-6/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Wages and salaries | -4 | -4 |
--------------------------------------------------------------------------------
| Granted equity-settled share options | -1 | -1 |
--------------------------------------------------------------------------------
| Granted cash-settled share options | -1 | -3 |
--------------------------------------------------------------------------------
| Pension costs | -1 | -1 |
--------------------------------------------------------------------------------
| Other social security costs | 0 | 0 |
--------------------------------------------------------------------------------
| Holding, total | -7 | -9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | -246 | -241 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 5 INTANGIBLE ASSETS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Goodwill | 530 | 530 |
--------------------------------------------------------------------------------
| Customer relations | 18 | 21 |
--------------------------------------------------------------------------------
| Other intangible assets | 4 | 3 |
--------------------------------------------------------------------------------
| P&C Insurance, total | 552 | 554 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Goodwill | 153 | 153 |
--------------------------------------------------------------------------------
| Other intangible assets | 12 | 11 |
--------------------------------------------------------------------------------
| Life insurance, total | 165 | 164 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other intangible assets | 0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | 717 | 718 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 6 FINANCIAL ASSETS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | | |
--------------------------------------------------------------------------------
| | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative financial instruments (Note 7) | 74 | 182 |
--------------------------------------------------------------------------------
| Financial assets designated as at fair value | | |
| through p/l | | |
--------------------------------------------------------------------------------
| Debt securities | 607 | 8,272 |
--------------------------------------------------------------------------------
| Equity securities | 62 | 1,011 |
--------------------------------------------------------------------------------
| Total | 669 | 9,283 |
--------------------------------------------------------------------------------
| Loans and receivables | | |
--------------------------------------------------------------------------------
| Deposits with ceding undertakings | 1 | 2 |
--------------------------------------------------------------------------------
| Financial assets available-for-sale | | |
--------------------------------------------------------------------------------
| Debt securities | 8,342 | - |
--------------------------------------------------------------------------------
| Equity securities | 655 | - |
--------------------------------------------------------------------------------
| Total | 8,998 | - |
--------------------------------------------------------------------------------
| P&C insurance, total | 9,742 | 9,467 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | | |
--------------------------------------------------------------------------------
| | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative financial instruments (Note 7) | 20 | 10 |
--------------------------------------------------------------------------------
| Financial assets designated as at fair value | | |
| through p/l | | |
--------------------------------------------------------------------------------
| Debt securities | 45 | 42 |
--------------------------------------------------------------------------------
| Equity securities | 2 | 5 |
--------------------------------------------------------------------------------
| Total | 47 | 47 |
--------------------------------------------------------------------------------
| Investments held-to-maturity | | |
--------------------------------------------------------------------------------
| Debt securities | 1 | 8 |
--------------------------------------------------------------------------------
| Loans and receivables | | |
--------------------------------------------------------------------------------
| Deposits | 2 | 2 |
--------------------------------------------------------------------------------
| Deposits with ceding undertakings | 1 | 2 |
--------------------------------------------------------------------------------
| Total | 3 | 4 |
--------------------------------------------------------------------------------
| Financial assets available-for-sale | | |
--------------------------------------------------------------------------------
| Debt securities | 3,445 | 3,679 |
--------------------------------------------------------------------------------
| Equity securities *) | 1,467 | 1,707 |
--------------------------------------------------------------------------------
| Total | 4,912 | 5,387 |
--------------------------------------------------------------------------------
| Life insurance, total | 4,983 | 5,456 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) of which investments in interest funds | 272 | 276 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding | | |
--------------------------------------------------------------------------------
| | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative financial instruments (Note 7) | 0 | 0 |
--------------------------------------------------------------------------------
| Loans and receivables | | |
--------------------------------------------------------------------------------
| Deposits | 1 | 1 |
--------------------------------------------------------------------------------
| Financial assets available-for-sale | | |
--------------------------------------------------------------------------------
| Debt securities | 1,495 | 2,023 |
--------------------------------------------------------------------------------
| Equity securities | 2,378 | 2,758 |
--------------------------------------------------------------------------------
| Total | 3,873 | 4,781 |
--------------------------------------------------------------------------------
| Investments in subsidiaries | 2,370 | 2,370 |
--------------------------------------------------------------------------------
| Holding, total | 6,244 | 7,151 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Elimination items between segments | -2,498 | -2,499 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | 18,470 | 19,575 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 7 | | | | | | |
| DERIVATIVE | | | | | | |
| FINANCIAL | | | | | | |
| INSTRUMENTS | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C | | 6/2008 | | | 12/2007 | |
| insurance | | | | | | |
--------------------------------------------------------------------------------
| | | Fair | Fair | | Fair | Fair value |
| | | value | value | | value | |
--------------------------------------------------------------------------------
| | Contrac | Assets | Liabiliti | Contract | Assets | Liabilitie |
| | t/ | | es | / | | s |
| | notiona | | | notional | | |
| | l | | | amount | | |
| | amount | | | | | |
--------------------------------------------------------------------------------
| Derivatives | | | | | | |
| held for | | | | | | |
| trading | | | | | | |
--------------------------------------------------------------------------------
| Interest | 4,753 | 2 | 38 | 6,368 | 24 | 7 |
| rate | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Foreign | 5,096 | 72 | 33 | 5,963 | 159 | 82 |
| exchange | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Equity | 116 | 0 | 6 | 68 | 0 | 0 |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| P&C | 9,964 | 74 | 77 | 12,399 | 182 | 90 |
| Insurance, | | | | | | |
| total | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life | | 6/2008 | | | 12/2007 | |
| insurance | | | | | | |
--------------------------------------------------------------------------------
| | | Fair | Fair | | Fair | Fair value |
| | | value | value | | value | |
--------------------------------------------------------------------------------
| | Contrac | Assets | Liabiliti | Contract | Assets | Liabilitie |
| | t/ | | es | / | | s |
| | notiona | | | notional | | |
| | l | | | amount | | |
| | amount | | | | | |
--------------------------------------------------------------------------------
| Derivatives | | | | | | |
| held for | | | | | | |
| trading | | | | | | |
--------------------------------------------------------------------------------
| Interest | 560 | 1 | 1 | 475 | 1 | 0 |
| rate | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Foreign | 569 | 4 | 1 | 541 | 7 | 1 |
| exchange | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Equity | 27 | 2 | 1 | 59 | 2 | 0 |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Commodity | 73 | 12 | 12 | 0 | 0 | 0 |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Life | 1,230 | 20 | 15 | 1,075 | 10 | 1 |
| insurance, | | | | | | |
| total | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding | | 6/2008 | | | 12/2007 | |
--------------------------------------------------------------------------------
| | | Fair | Fair | | Fair | Fair value |
| | | value | value | | value | |
--------------------------------------------------------------------------------
| | Contrac | Assets | Liabiliti | Contract | Assets | Liabilitie |
| | t/ | | es | / | | s |
| | notiona | | | notional | | |
| | l | | | amount | | |
| | amount | | | | | |
--------------------------------------------------------------------------------
| Derivatives | | | | | | |
| held for | | | | | | |
| trading | | | | | | |
--------------------------------------------------------------------------------
| Equity | 12 | 0 | 1 | 4 | 0 | 0 |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 8 INVESTMENTS RELATED TO UNIT-LINKED INSURANCE | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | | |
--------------------------------------------------------------------------------
| | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
| Financial assets as at fair value through p/l | | |
--------------------------------------------------------------------------------
| Debt securities | 80 | 75 |
--------------------------------------------------------------------------------
| Equity securities | 1,845 | 1,997 |
--------------------------------------------------------------------------------
| Financial assets as at fair value through p/l | 1,925 | 2,072 |
| total | | |
--------------------------------------------------------------------------------
| Other | 10 | 0 |
--------------------------------------------------------------------------------
| Life insurance, total | 1,935 | 2,072 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 9 LIABILITIES FOR INSURANCE AND INVESTMENT | | |
| CONTRACTS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | | |
--------------------------------------------------------------------------------
| | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
| Insurance contracts | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 2,194 | 1,691 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 6,884 | 6,835 |
--------------------------------------------------------------------------------
| P&C Insurance, total | 9,078 | 8,527 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Reinsurers' share | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 129 | 55 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 435 | 429 |
--------------------------------------------------------------------------------
| P&C Insurance, total | 563 | 484 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | | |
--------------------------------------------------------------------------------
| | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
| Insurance contracts | | |
--------------------------------------------------------------------------------
| Liabilities for contracts with DPF | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 2,684 | 2,843 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 1,767 | 1,664 |
--------------------------------------------------------------------------------
| Total | 4,452 | 4,506 |
--------------------------------------------------------------------------------
| Liabilities for contracts without DPF | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 12 | 3 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 1 | 1 |
--------------------------------------------------------------------------------
| Total | 13 | 4 |
--------------------------------------------------------------------------------
| Total | 4,465 | 4,510 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assumed reinsurance | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 2 | 3 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 2 | 2 |
--------------------------------------------------------------------------------
| Total | 4 | 5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Insurance contracts, total | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 2,699 | 2,849 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 1,770 | 1,667 |
--------------------------------------------------------------------------------
| Total | 4,468 | 4,515 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investment contracts | | |
--------------------------------------------------------------------------------
| Liabilities for contracts with DPF | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 88 | 105 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities for insurance and investment | | |
| contracts, total | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 2,787 | 2,954 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 1,770 | 1,667 |
--------------------------------------------------------------------------------
| Life insurance, total | 4,556 | 4,621 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Recoverable from reinsurers | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 0 | 1 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 4 | 4 |
--------------------------------------------------------------------------------
| Life insurance, total | 4 | 5 |
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
| 10 LIABILITIES FROM UNIT-LINKED INSURANCE AND | | |
| INVESTMENT CONTRACTS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Unit-linked insurance contracts | 1,860 | 2,008 |
--------------------------------------------------------------------------------
| Unit-linked investment contracts | 78 | 63 |
--------------------------------------------------------------------------------
| Life insurance, total | 1,939 | 2,071 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 11 FINANCIAL LIABILITIES | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative financial instruments (Note 7) | 77 | 90 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Subordinated debt securities | | |
--------------------------------------------------------------------------------
| Subordinated loans | 439 | 440 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | | |
--------------------------------------------------------------------------------
| Repurchase agreement for bonds | 44 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance, total | 560 | 530 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative financial instruments (Note 7) | 15 | 1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Subordinated debt securities | | |
--------------------------------------------------------------------------------
| Subordinated loans | 100 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance, total | 116 | 101 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative financial instruments (Note 7) | 1 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Subordinated debt securities | | |
--------------------------------------------------------------------------------
| Debentures | 593 | 589 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | | |
--------------------------------------------------------------------------------
| Other | 6 | 6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding, total | 600 | 596 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Elimination items between segments | -125 | -125 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | 1,151 | 1,102 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 12 CONTINGENT LIABILITIES AND COMMITMENTS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | | |
--------------------------------------------------------------------------------
| | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
| Off-balance sheet items | | |
--------------------------------------------------------------------------------
| Guarantees | 36 | 41 |
--------------------------------------------------------------------------------
| Other irrevocable commitments | 30 | 16 |
--------------------------------------------------------------------------------
| Total | 66 | 57 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | | |
--------------------------------------------------------------------------------
| Assets covered by policyholders' beneficiary | 353 | 340 |
| rights | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets pledged as | | | | |
| collateral for liabilities | | | | |
| or contingent liabilities | | | | |
--------------------------------------------------------------------------------
| | 6/2008 | 6/2008 | 12/2007 | 12/2007 |
--------------------------------------------------------------------------------
| Assets pledged as | Assets | Liabilities | Assets | Liabilities |
| collateral | pledged | / commit- | pledged | / commit- |
| | | ments | | ments |
--------------------------------------------------------------------------------
| Cash at balances at central | 8 | 7 | 12 | 8 |
| banks | | | | |
--------------------------------------------------------------------------------
| Investments | | | | |
--------------------------------------------------------------------------------
| - Investment securities | 193 | 66 | 276 | 102 |
--------------------------------------------------------------------------------
| Total | 201 | 74 | 289 | 110 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-cancellable operating leases | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
| Minimum lease payments | | |
--------------------------------------------------------------------------------
| not later than one year | 34 | 35 |
--------------------------------------------------------------------------------
| later than one year and not later than five years | 93 | 101 |
--------------------------------------------------------------------------------
| later than five years | 102 | 99 |
--------------------------------------------------------------------------------
| Total | 229 | 236 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | | |
--------------------------------------------------------------------------------
| | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
| Off-balance sheet items | | |
--------------------------------------------------------------------------------
| Fund commitments | 359 | 273 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
| Other commitments | | |
--------------------------------------------------------------------------------
| Acquisition of IT-software | 1 | 1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-cancellable operating leases | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
| Minimum lease payments | | |
--------------------------------------------------------------------------------
| not later than one year | 2 | 2 |
--------------------------------------------------------------------------------
| later than one year and not later than five years | 7 | 6 |
--------------------------------------------------------------------------------
| later than five years | 3 | 4 |
--------------------------------------------------------------------------------
| Total | 11 | 12 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding | | |
--------------------------------------------------------------------------------
| | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
| Off-balance sheet items | | |
--------------------------------------------------------------------------------
| Fund commitments | 5 | 6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets pledged as | | | | |
| collateral for liabilities | | | | |
| or contingent liabilities | | | | |
--------------------------------------------------------------------------------
| | 6/2008 | 6/2008 | 12/2007 | 12/2007 |
--------------------------------------------------------------------------------
| Assets pledged as | Assets | Liabilities | Assets | Liabilities |
| collateral | pledged | / commit- | pledged | / commit- |
| | | ments | | ments |
--------------------------------------------------------------------------------
| Investments | | | | |
--------------------------------------------------------------------------------
| - Mortgaged collateral | 15 | 6 | 15 | 6 |
| notes | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-cancellable operating leases | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
| Minimum lease payments | | |
--------------------------------------------------------------------------------
| not later than one year | 3 | 2 |
--------------------------------------------------------------------------------
| later than one year and not later than five years | 4 | 5 |
--------------------------------------------------------------------------------
| later than five years | 3 | 3 |
--------------------------------------------------------------------------------
| Total | 10 | 11 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 13 RESULT ANALYSIS OF P&C INSURANCE BUSINESS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 1-6/2008 | 1-6/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Premiums earned | 1,912 | 1,863 |
--------------------------------------------------------------------------------
| Claims incurred | -1,439 | -1,395 |
--------------------------------------------------------------------------------
| Operating expenses | -328 | -320 |
--------------------------------------------------------------------------------
| Other technical income and expenses | 3 | 1 |
--------------------------------------------------------------------------------
| Allocated investment return transferred from the | 112 | 95 |
| non-technical account | | |
--------------------------------------------------------------------------------
| Technical result | 261 | 244 |
--------------------------------------------------------------------------------
| Investment result | 66 | 194 |
--------------------------------------------------------------------------------
| Allocated investment return transferred to the | -142 | -123 |
| technical account | | |
--------------------------------------------------------------------------------
| Other income and expenses | -3 | -4 |
--------------------------------------------------------------------------------
| Operating result | 182 | 311 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 14 SAMPO PLC'S INCOME STATEMENT AND BALANCE SHEET | | |
| (FAS) | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCOME STATEMENT | | |
--------------------------------------------------------------------------------
| | 1-6/2008 | 1-6/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other operating income | 3 | 7 |
--------------------------------------------------------------------------------
| Staff expenses | -6 | -10 |
--------------------------------------------------------------------------------
| Depreciation and impairment | 0 | -1 |
--------------------------------------------------------------------------------
| Other operating expenses | -8 | -16 |
--------------------------------------------------------------------------------
| Operating profit | -12 | -21 |
--------------------------------------------------------------------------------
| Finance income and expenses | 362 | 3,753 |
--------------------------------------------------------------------------------
| Profit before appropriations and income taxes | 350 | 3,732 |
--------------------------------------------------------------------------------
| Income taxes | -5 | -15 |
--------------------------------------------------------------------------------
| Profit for the financial period | 345 | 3,717 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BALANCE SHEET | 6/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | |
--------------------------------------------------------------------------------
| Non-current assets | | |
--------------------------------------------------------------------------------
| Intangible assets | 1 | 1 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 5 | 6 |
--------------------------------------------------------------------------------
| Investments | | |
--------------------------------------------------------------------------------
| Shares in Group companies | 2,370 | 2,370 |
--------------------------------------------------------------------------------
| Receivables from Group companies | 125 | 128 |
--------------------------------------------------------------------------------
| Shares in participating undertakings | - | 1 |
--------------------------------------------------------------------------------
| Other shares and participations | 2,384 | 2,763 |
--------------------------------------------------------------------------------
| Other receivables | 1,370 | 1,896 |
--------------------------------------------------------------------------------
| Receivables | 213 | 57 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 93 | 228 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | 6,561 | 7,450 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES | | |
--------------------------------------------------------------------------------
| Equity | | |
--------------------------------------------------------------------------------
| Share capital | 98 | 98 |
--------------------------------------------------------------------------------
| Share premium account | 1,160 | 1,160 |
--------------------------------------------------------------------------------
| Legal reserve | 366 | 366 |
--------------------------------------------------------------------------------
| Fair value reserve | -466 | 26 |
--------------------------------------------------------------------------------
| Other reserves | 273 | 273 |
--------------------------------------------------------------------------------
| Retained earnings | 4,116 | 811 |
--------------------------------------------------------------------------------
| Profit for the year | 345 | 4,033 |
--------------------------------------------------------------------------------
| Total equity | 5,892 | 6,768 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | |
--------------------------------------------------------------------------------
| Long-term | 593 | 589 |
--------------------------------------------------------------------------------
| Short-term | 75 | 93 |
--------------------------------------------------------------------------------
| Total liabilities | 668 | 682 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | 6,561 | 7,450 |
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