SAMPO PLC INTERIM REPORT 5 November 2008, at 9.30am
SAMPO GROUP´S RESULTS FOR JANUARY - SEPTEMBER 2008
WELL-POSITIONED TO MEET MORE TURBULENCE
Sampo Group's profit before taxes in January-September 2008 amounted to EUR 664
million (814). The comparison figure does not contain the sales gain of EUR
2,830 million from the Sampo Bank transaction closed on 1 February 2007.
Earnings per share were EUR 0.91 (1.05). Earnings per share including the change
in the fair value reserve decreased to EUR -1.19 per share (1.08). Net asset
value per share was EUR 10.98 (13.49).
- Profit before taxes in P&C insurance amounted to EUR 395 million (430).
Insurance technical result improved further and combined ratio was 91.8 per cent
(90.9).
- Profit before taxes in life insurance amounted to EUR 114 million (298).
- Profit before taxes for the segment ‘Holding' rose to EUR 155 million (83).
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| KEY FIGURES | 1-9 | 1-9 | Change | Q3 | Q3 | Change |
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| EURm | 2008 | 2007 | % | 2008 | 2007 | % |
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| Profit before taxes*) | 664 | 814 | -19 | 242 | 256 | -5 |
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| P&C insurance | 395 | 430 | -8 | 213 | 119 | 79 |
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| Life insurance | 114 | 298 | -62 | 22 | 111 | -80 |
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| Holding | 155 | 83 | 85 | 6 | 22 | -71 |
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| Profit for the period*) | 521 | 607 | -14 | 175 | 191 | -8 |
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| Earnings per share, | 0.91 | 1.05 | -13 | 0.31 | 0.33 | -6 |
| EUR*) | | | | | | |
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| EPS(incl. change in | -1.19 | 1.08 | - | -0.29 | 0.34 | - |
| FVR) EUR*) | | | | | | |
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| NAV per share, EUR** ) | 10.98 | 13.74 | -20 | - | - | - |
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| Average number of staff | 7,029 | 6,838 | 3 | - | - | - |
| (FTE) | | | | | | |
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| Group solvency ratio, % | 655.9 | 873.5 | -14 | - | - | - |
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| RoE, % | -12.9 | 52.9 | - | - | - | - |
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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.
Third quarter 2008 in brief
Sampo Group's profit before taxes for the third quarter of 2008 was EUR 242
million (256). Earnings per share were EUR 0.31 (0.33) and taking the change in
the fair value reserve into account earnings per share decreased to EUR -0.29
(0.34).
P&C insurance reported a strong technical result and the combined ratio amounted
to 90.6 per cent (88.8). Profit before taxes was EUR 213 million (119) for the
third quarter.
Sampo Group's life insurance operations reported a profit before taxes of EUR 22
million (111). Premiums written increased to EUR 148 million (120). In August
2008 Sampo Life adopted the name of Mandatum Life Insurance Company Limited.
Segment ‘Holding' reported a profit before taxes of EUR 6 million (22) in the
third quarter.
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 | 1-9 | 1-9 | Change | Q3 | Q3 | Change |
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| EURm | 2008 | 2007 | % | 2008 | 2007 | % |
--------------------------------------------------------------------------------
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| Premium income | 3,096 | 3,055 | 1 | 744 | 767 | -3 |
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| Net income from | 180 | 200 | -10 | 129 | 21 | 526 |
| investments | | | | | | |
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| Other operating | 20 | 19 | 3 | 6 | 6 | -11 |
| income | | | | | | |
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| Claims incurred | -1,971 | -1,907 | 3 | -654 | -635 | 3 |
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| Change in liabilities | -212 | -227 | -7 | 228 | 198 | 15 |
| for | | | | | | |
| insurance contracts | | | | | | |
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| Staff costs | -346 | -334 | 4 | -120 | -112 | 7 |
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| Other operating | -352 | -356 | -1 | -114 | -118 | -3 |
| expenses | | | | | | |
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| Finance costs | -22 | -21 | 3 | -6 | -7 | 10 |
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| Profit before taxes | 395 | 430 | -8 | 213 | 119 | 79 |
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| Key figures | | | | | | |
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| Combined ratio, % | 91.8 | 90.9 | 1 | 90.6 | 88.8 | 2 |
--------------------------------------------------------------------------------
| Risk ratio, % | 68.3 | 67.4 | 1 | 67.3 | 65.9 | 2 |
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| Cost ratio, % | 23.5 | 23.5 | 0 | 23.3 | 23.0 | 1 |
--------------------------------------------------------------------------------
| Expense ratio, % | 17.1 | 17.1 | 0 | 17.1 | 17.0 | 1 |
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| Return on equity, % | 0.2 | 19.6 | -99 | - | - | - |
--------------------------------------------------------------------------------
| Average number of | 6,562 | 6,407 | 2 | - | - | - |
| staff (FTE) | | | | | | |
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Profit before taxes in the P&C insurance operations for the first nine months of
2008 amounted to EUR 395 million (430). Insurance technical result continued
strong and was EUR 419 million (405). Insurance margin - technical result in
relation to net premiums earned - improved to 14.4 per cent (14.3). Combined
ratio increased somewhat compared to the previous year and was 91.8 per cent
(90.9). Annualised RoE was below the long-term target of 17.5 per cent and
amounted 0.2 per cent (19.6). Fair value reserve decreased to EUR -284 million
(0).
Business area Private accounted for 52 per cent, Commercial for 29 per cent,
Industrial for 11 per cent and Baltic and Russia for 6 per cent of the technical
result. EUR 80 million was released from technical reserves relating to prior
year claims (65).
In business area Private the combined ratio stayed at a good level at 91.5 per
cent (90.3). In Commercial the combined ratio increased to 92.6 per cent (90.5).
In business area Industrial the combined ratio improved somewhat to 94.9 per
cent (95.3). Technical result in business area Baltic and Russia improved
significantly from the previous year's first nine months. Combined ratio
improved to 84.4 per cent (90.5) supported by positive large claims outcome and
favourable frequency development.
In Sweden the combined ratio deteriorated due to a worse large claims outcome to
92.7 per cent (86.4). In Finland the combined ratio increased to 88.1 per cent
(86.3) and in Norway to 94.4 per cent (90.6). In Denmark the combined ratio
improved from the comparison period to 91.6 per cent (125.7) due to a normalized
large claim situation compared to previous year.
Gross premiums written increased to EUR 3,317 million (3,279). The premium
growth was strongest in the business area Baltic and Russia where premiums grew
14.9 per cent compared to previous year.
Total costs amounted to EUR 720 million (711). Cost ratio stayed at the previous
year's level and was 23.5 per cent (23.5).
Total investment assets of If amounted to EUR 10.3 billion (10.0) on 30
September 2008. Of the assets 94 per cent was invested in fixed income
instruments (89), 6 per cent in equity (10) and 1 per cent in other assets (1).
Net investment income for the first nine months of 2008 decreased to EUR 180
million (200). Net investment income includes impairment losses of approximately
EUR 16 million. The return on investments for the first nine months of 2008 was
-1.7 per cent at market values (2.4). At the end of September the duration for
interest-bearing assets was 3.1 years (2.2).
If's capital position continued to be strong in the third quarter. Solvency
capital amounted to EUR 2,613 million on 30 September 2008 (2,681). The solvency
ratio - solvency capital in relation to net premiums written - was 70 per cent
(71). If's reserve ratios were 173 per cent (170) of net premiums written and
252 per cent of claims paid (261) compared to the year-end.
In August 2008 If finalized the most prolonged business project in its history,
the divestment of the run-off businesses, by completing the divestment of a
Florida-based reinsurance company Capital Assurance. Net income from investments
for the third quarter includes a sales loss of approximately EUR 6 million from
finalizing the run-off divestment process.
Life insurance
Mandatum Life Group consists of Mandatum Life, a wholly-owned subsidiary of
Sampo plc, operating in Finland, and of its subsidiary Sampo Life Insurance
Baltic SE, which 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 | 1-9 | 1-9 | Change | Q3 | Q3 | Change |
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| EURm | 2008 | 2007 | % | 2008 | 2007 | % |
--------------------------------------------------------------------------------
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| Premiums | 381 | 430 | -11 | 148 | 120 | 23 |
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| Net income from | -94 | | - | -111 | 160 | - |
| investments | | 567 | | | | |
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| Claims incurred | -623 | -498 | 25 | -211 | -145 | 45 |
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| Change in | 512 | | - | 215 | -4 | - |
| liabilities for | | -141 | | | | |
| inv. and ins. | | | | | | |
| contracts | | | | | | |
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| Staff costs | -17 | -15 | 16 | -5 | -5 | 9 |
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| Other operating | -36 | -37 | -3 | -11 | -12 | -6 |
| expenses | | | | | | |
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| Finance costs | -9 | -8 | 12 | -3 | -3 | 6 |
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| Profit before taxes | 114 | 298 | -62 | 22 | 111 | -80 |
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| Key figures | | | | | | |
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| Expense ratio, % | 112.1 | 107.2 | 5 | - | - | - |
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| Return on equity, % | -51.6 | 18.8 | - | - | - | - |
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| Average number of | 414 | 374 | 11 | - | - | - |
| staff (FTE) | | | | | | |
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Profit before taxes in life insurance for the first nine months of 2008
decreased to EUR 114 million (298). Net investment income, excluding income on
unit-linked contracts, amounted to EUR 235 million (468). Net investment income
from unit-linked investments decreased to EUR -330 million (98). The fair value
reserve decreased EUR 323 million from the beginning of the year and was EUR -34
million on 30 September 2008 (289). Return on equity (RoE) in life insurance
fell to -51.6 per cent (18.8).
Mandatum Life Group's investment assets, excluding the assets of EUR 1.8 billion
(2.1) covering unit-linked liabilities, amounted to EUR 5.0 billion (5.7) at
market values on 30 September 2008. Fixed income covered 76 per cent (73),
equity 21 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 nine months of 2008 was -4.1 per
cent at market values (5.9). At the end of September 2008 the duration of fixed
income assets was 2.4 years (1.9).
After the sale of Sampo Bank in early 2007, Mandatum Life has invested in IT
infrastructure and some other back-up activities previously performed by the
Bank. This together with the investments in the proprietary sales organization
has led to an increase in Mandatum Life Group's expense ratio to 112 per cent
(107). However, if all fee income is taken into account, the expense ratio was
clearly below 90 per cent.
Mandatum Life Group's solvency capital was EUR 528 million (846) on 30 September
2008. Solvency ratio decreased to 10.6 per cent (16.5). Total technical reserves
amounted to EUR 6.3 billion (6.7), from which unit-linked reserves accounted for
EUR 1.8 billion (2.1). The share of unit-linked reserves of total technical
reserves was 28 per cent (31).
In the first nine months of 2008 Mandatum Life Group's premium income on own
account amounted to EUR 381 million (430). Premiums in the focus area,
unit-linked insurance, decreased to EUR 212 million (288) and the share of
unit-linked premiums was 55 per cent of total premiums (66). Especially
investment policy sales were affected by difficult market conditions and by
Sampo Bank's slow return to normal sales performance. Proprietary sales channels
performed well and corporate policy sales stayed at previous year's level.
Mandatum Life's market share in unit-linked insurance in Finland decreased to
20.9 per cent (22.0). Mandatum Life's overall market share measured by premium
income was 19.2 per cent (19.3).
Uncertain capital market conditions also reflected in the Baltic life insurance
markets. Premium income from the Baltics decreased to EUR 25 million (42).
Holding
Sampo plc owns and controls its subsidiaries engaged in P&C and life insurance.
In addition Sampo plc held on 30 September 2008 approximately 11 per cent of
Nordea's share capital and votes and had more than a billion euros in cash or
equivalent.
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| Results | 1-9 | 1-9 | Change | Q3 | Q3 | Change |
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| EURm | 2008 | 2007 | % | 2008 | 2007 | % |
--------------------------------------------------------------------------------
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| Net investment | 198 | 135 | 46 | 18 | 35 | -49 |
| income | | | | | | |
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| Other operating | 4 | 5 | -22 | 2 | 1 | 38 |
| income | | | | | | |
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| Staff costs | -9 | -12 | -23 | -3 | -3 | -13 |
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| Other operating | -10 | -16 | -36 | -2 | -3 | -41 |
| expenses | | | | | | |
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| Finance costs | -27 | -29 | -4 | -9 | -8 | 11 |
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| Profit before | 155 | 83 | 85 | 6 | 22 | -71 |
| taxes | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of | 53 | 57 | -7 | - | - | - |
| staff (FTE) | | | | | | |
--------------------------------------------------------------------------------
The segment's profit before taxes amounted to EUR 155 million (83). The fair
value reserve decreased from the end of 2007 by EUR 593 million and amounted to
EUR -567 million after tax (26).
The assets on Sampo plc's balance sheet on 30 September 2008 comprised
investment assets of EUR 3.7 billion, of which fixed income instruments covered
31 per cent (43) and equities 69 per cent (56).
Sampo plc's largest equity holding is Nordea, the market value of which was EUR
2.4 billion on 30 September 2008. Sampo plc held 282,612,100 Nordea shares and,
in addition, Mandatum Life held 5,150,000 Nordea shares. Sampo Group's average
acquisition price for Nordea was EUR 10.94 per share. Sampo plc has written put
option contracts on Nordea for a total of 30.6 million shares at an average
exercise price of SEK 80. The puts may be exercised during the last quarter of
2008. 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 third quarter of 2008
Administration
Timo Vuorinen was nominated as Managing Director of If Group's Finnish
subsidiary If P&C Insurance Co. on 12 August 2008. He is responsible for the
Baltic and Russian operations of If and a member of If's Executive Management
Team.
On 8 September 2008 Ricard Wennerklint was nominated as Deputy Managing Director
of If Group's parent company If P&C Insurance Holding Ltd starting from 1
October 2008. He acted previously as CFO of If P&C Insurance. Johan Dahlgren,
Head of Accounting, was nominated as CFO of If P&C Insurance.
Shares and share capital
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 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 Nasdaq OMX Helsinki at market
price prevailing at the time of repurchase.
In the third quarter of 2008 Sampo plc repurchased 443,500 of its own A shares,
corresponding to 0.08 per cent of the total amount of shares and votes. A total
of EUR 7.4 million was used for the purchases at an average price of EUR 16.66
per share.
On 30 September 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.
Share capital after the end of the reporting period
On 7 October 2008 Sampo received a disclosure according to which the Board of
Directors of Exista hf. had decided on 6 October 2008 to engage Citigroup Global
Markets Limited and Morgan Stanley & Co. International plc to conduct an
accelerated book built offering of 114,257,867 Sampo A shares held by Exista hf.
and its subsidiaries. The shares represented 19.98 per cent of the share capital
of Sampo plc. According to the information Sampo has received the shares were
purchased by more than 150 institutions, the vast majority of which is
non-Finnish. In the transaction no investor was allocated more than 10 per cent
of the shares sold.
Based on the authorisation granted by the Annual General Meeting on 15 April
2008, Sampo plc's Board of Directors decided on 7 October 2008 to repurchase 10
million Sampo A shares with distributable capital and reserves by participating
in the afore-mentioned book built offering. The amount repurchased corresponds
to approximately 1.7 per cent of the total number of shares. Repurchases
decrease the distributable capital and reserves.
The shares were not acquired in the proportion in which the shareholders'
shareholdings are distributed. The price paid was 11.50 euros per share. Shares
were purchased from Exista hf. and its subsidiaries, because of the low
transaction costs and the price lower than in public trading.
The shares purchased on the basis of this decision will be cancelled, and
therefore the purchase will benefit all shareholders in proportion to their
holding. At the time of this decision the situation in the financial markets was
exceptionally uncertain. In the Board's opinion the above purchase is in the
interest of all shareholders. The purchase also prevents an overliquidity
situation in the markets. On the basis of the above, weighty financial reasons
for repurchases referred to Companies Act exist.
On 8 October 2008 Exista hf. notified Sampo in accordance with Chapter 2 Section
9 of the Securities Market Act Exista hf.'s holding in Sampo plc had fallen
below 5 per cent of the shares and votes of Sampo plc and was 0 per cent on 7
October 2008.
On 22 October Sampo received a disclosure in accordance with Chapter 2 Section 9
of the Securities Market Act regarding Sampo plc's shares. The State of Finland
and Solidium Oy (Business ID 0866693-1) announced an arrangement that, if
completed, will lead to a situation in which the portions of holdings of the
State of Finland will decrease below and the portions of holdings of Solidium Oy
will increase above the thresholds as intended in Chapter 2, Section 9 of the
Securities Markets Act in Sampo. The 79,280,080 Sampo A shares to be transferred
represent 13.86 per cent of the total amount of shares in Sampo plc.
On 5 November 2008 Sampo plc holds 10,443,500 of its own A shares corresponding
to 1.8 per cent of the total amount of shares and votes in the company. The
average price paid was EUR 11.72 per share and all in all EUR 122 million was
used for the repurchases.
Staff
Sampo Group's full-time equivalent staff on 30 September 2008 amounted to 7,549
employees compared to 6,965 employees on 31 December 2007.
At the end of September 2008 approximately 93 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: 29 per cent
worked in Finland, 25 per cent in Sweden, 22 per cent in Norway and 24 per cent
in the Baltics, Russia and other countries. The number of personnel increased
mostly in If P&C's Russian operations and Mandatum Life's Finnish operations.
The average number of employees during the first nine months of 2008 was 7,029
compared to 6,838 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.
The incentive schemes 2005II - 2008II extend to 2011. The incentive schemes
increased staff costs in the third quarter of 2008 by EUR 0.2 million (0.02) and
on 30 September 2008 the total provision for the schemes was EUR 2 million (20).
The ‘Sampo 2006' share-based incentive scheme increased staff costs by EUR 0.7
million (1) in the third quarter of 2008. The total provision for the scheme on
30 September 2008 was EUR 7 million (5).
Ratings
All the main ratings for Sampo Group companies remained unchanged in the third
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 September 2008 was 655.9 per cent (774.6).
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| SAMPO GROUP SOLVENCY | 30 September 2008 | 31 December 2007 |
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| EURm | | |
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| Group capital | 6,257 | 7,733 |
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| Sectoral items | 483 | 855 |
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| Intangibles and other deductibles | -1,081 | -1,733 |
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| Group's own funds, total | 5,659 | 6,854 |
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| Minimum requirements for own | 863 | 885 |
| funds, total | | |
--------------------------------------------------------------------------------
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| Group solvency | 4,796 | 5,969 |
--------------------------------------------------------------------------------
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| Group solvency ratio | 655.9 | 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 September 2008 was EUR
3,187 million (3,395). During the third quarter of 2008 the economic capital
requirement decreased for If P&C by EUR 36 million due to lower market risks and
increased for Mandatum Life by EUR 61 million due higher insurance and credit
risk.
Outlook for the rest of 2008
During the last few weeks governments and regulators have set up plans to
guarantee bank liabilities, increased the levels of deposit insurance and
injected significant amounts of capital into the financial system. These
policies go a long way to resolve the immediate financial crisis. Whether they
are sufficient and effective in preventing the world from sliding into a deep
recession remains to be seen.
Sampo Group has positioned itself to face an economic downturn by reducing
equity weights in its insurance subsidiaries and by keeping a large part of its
fixed-income investments in liquid assets.
Sampo Group's result for 2008 will of course depend on investment markets, which
are unlikely to improve in the short term. 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.
Mandatum Life Group is not expected to achieve the exceptionally high profits of
2006 and 2007. Full-year 2008 reported results are expected to remain reasonably
good, although uncertainty in the capital markets makes it extremely challenging
to issue exact guidance for last quarter's profit.
Sampo plc has investment assets of EUR 3.7 billion, of which approximately 2.4
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, particularly in Nordic financials, and a sudden rise in interest rates
or widening of credit spreads, which would in the short term cause valuation
losses. However, Sampo Group's equity capital on 30 September 2008 exceeded the
economic capital required to manage the operations and to hold its present
assets by approximately EUR 3 billion and Sampo can therefore well sustain all
foreseeable market downturns.
Sampo is well positioned to profit from opportunities which may eventually arise
in the volatile 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 an English-language telephone conference for investors and
analysts on the third quarter results at 5 pm (3 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 third quarter
developments is available at www.sampo.com/ir.
Sampo will publish the full year 2008 result release on 11 February 2009.
DISTRIBUTION:
NASDAQ OMX 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 | | 1-9/2008 | 1-9/2007 |
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| GROUP ¹) | | | |
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| Profit before taxes | EURm | 664 | 3,673 |
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| Return on equity (at fair value) | % | -12.9 | 52.9 |
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| Return on assets (at fair value) | % | -2.0 | 11.2 |
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| Equity/assets ratio | % | 25.2 | 30.0 |
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| Group solvency ²) | EURm | 4,796 | 6,898 |
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| Group solvency ratio | % | 655.9 | 873.5 |
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| Average number of staff | | 7,029 | 6,838 |
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| PROPERTY & CASUALTY INSURANCE | | | |
--------------------------------------------------------------------------------
| Premiums written before reinsurers' | EURm | 3,317 | 3,279 |
| share | | | |
--------------------------------------------------------------------------------
| Premiums earned | EURm | 2,884 | 2,828 |
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| Profit before taxes | EURm | 395 | 430 |
--------------------------------------------------------------------------------
| Return on equity (at current value) | % | 0.2 | 19.6 |
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| Risk ratio ³) | % | 68.3 | 67.4 |
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| Cost ratio ³) | % | 23.5 | 23.5 |
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| Loss ratio ³) | % | 76.2 | 75.3 |
--------------------------------------------------------------------------------
| Loss ratio excl. unwinding of discount | % | 74.7 | 73.8 |
| ³) | | | |
--------------------------------------------------------------------------------
| Expense ratio ³) | % | 17.1 | 17.1 |
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| Combined ratio | % | 93.4 | 92.4 |
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| Combined ratio excl. unwinding of | % | 91.8 | 90.9 |
| discount | | | |
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| Average number of staff | | 6,562 | 6,407 |
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| LIFE INSURANCE | | | |
--------------------------------------------------------------------------------
| Premiums written before reinsurers' | EURm | 388 | 436 |
| share | | | |
--------------------------------------------------------------------------------
| Profit before taxes | EURm | 114 | 298 |
--------------------------------------------------------------------------------
| Return on equity (at current value) | % | -51.6 | 18.8 |
--------------------------------------------------------------------------------
| Expense ratio | % | 112.1 | 107.2 |
--------------------------------------------------------------------------------
| Average number of staff | | 414 | 374 |
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| HOLDING | | | |
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| Profit before taxes | EURm | 155 | 83 |
--------------------------------------------------------------------------------
| Average number of staff | | 53 | 57 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| PER SHARE KEY FIGURES | | | |
--------------------------------------------------------------------------------
| Earnings per share | EUR | 0.91 | 5.99 |
--------------------------------------------------------------------------------
| Earnings per share, continuing | EUR | - | 1.05 |
| operations | | | |
--------------------------------------------------------------------------------
| Earnings per share, incl. change in | | | |
| fair value | | | |
--------------------------------------------------------------------------------
| reserve | EUR | -1.19 | 6.02 |
--------------------------------------------------------------------------------
| Earnings per share, incl. change in | | | |
| fair value | | | |
--------------------------------------------------------------------------------
| reserve, continuing operations | EUR | - | 1.08 |
--------------------------------------------------------------------------------
| Capital and reserves per share | EUR | 10.95 | 13.72 |
--------------------------------------------------------------------------------
| Net asset value per share | EUR | 10.98 | 13.74 |
--------------------------------------------------------------------------------
| Adjusted share price, high | EUR | 19.30 | 24.38 |
--------------------------------------------------------------------------------
| Adjusted share price, low | EUR | 14.74 | 19.33 |
--------------------------------------------------------------------------------
| Market capitalisation | EURm | 9,039 | 12,383 |
--------------------------------------------------------------------------------
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 571,372,390 and the average number of shares during the
period 571,932,689. The treasury shares held by Sampo plc (443,500) have been
deducted from the number of shares at the balance sheet date. In the average
number of shares, the treasury shares cancelled on 16 May 2008 have also been
taken into account (6,715,000).
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 | 7-9/20 | 4-6/20 | 1-3/200 | 10-12/2 | 7-9/20 |
| | 08 | 08 | 8 | 007 | 07 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Insurance premiums written | 892 | 1,033 | 1,552 | 974 | 887 |
--------------------------------------------------------------------------------
| Net income from investments | 36 | 243 | 2 | 75 | 217 |
--------------------------------------------------------------------------------
| Other operating income | 5 | 1 | 6 | 8 | 6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Claims incurred | -865 | -825 | -904 | -789 | -781 |
--------------------------------------------------------------------------------
| Change in liabilities for | 443 | 97 | -241 | 180 | 193 |
| insurance and investment | | | | | |
| contracts | | | | | |
--------------------------------------------------------------------------------
| Staff costs | -127 | -127 | -119 | -117 | -120 |
--------------------------------------------------------------------------------
| Other operating expenses | -127 | -130 | -135 | -155 | -132 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance costs | -16 | -12 | -22 | -17 | -16 |
--------------------------------------------------------------------------------
| Share of associates' | 0 | 0 | 2 | 1 | 1 |
| profit/loss | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from continuing | 242 | 279 | 142 | 160 | 256 |
| operations before taxes | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Taxes | -67 | -39 | -37 | -46 | -65 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from continuing | 175 | 241 | 106 | 113 | 191 |
| operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from discontinued | - | - | - | 0 | 0 |
| operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period | 175 | 241 | 106 | 113 | 191 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | | | |
--------------------------------------------------------------------------------
| Equity holders of parent | 175 | 241 | 106 | 113 | 191 |
| company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EURm | Note | 1-9/2008 | 1-9/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Insurance premiums written | 1 | 3,478 | 3,485 |
--------------------------------------------------------------------------------
| Net income from investments | 2 | 281 | 899 |
--------------------------------------------------------------------------------
| Other operating income | | 12 | 17 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Claims incurred | 3 | -2,594 | -2,405 |
--------------------------------------------------------------------------------
| Change in liabilities for insurance and | | 300 | -368 |
| investment contracts | | | |
--------------------------------------------------------------------------------
| Staff costs | 4 | -373 | -361 |
--------------------------------------------------------------------------------
| Other operating expenses | | -392 | -403 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance costs | | -50 | -51 |
--------------------------------------------------------------------------------
| Share of associates' profit/loss | | 2 | 2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from continuing operations | | 664 | 814 |
| before taxes | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Taxes | | -143 | -208 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from continuing operations | | 521 | 607 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from discontinued operations | | - | 2,853 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period | | 521 | 3,460 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | |
--------------------------------------------------------------------------------
| Equity holders of parent company | | 521 | 3,459 |
--------------------------------------------------------------------------------
| Minority interest | | 0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earning per share (eur) | | | 5.99 |
--------------------------------------------------------------------------------
| Basic, continuing operations | | 0.91 | 1.05 |
--------------------------------------------------------------------------------
| Basic, discontinued operations | | - | 4.94 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EURm | Note | 9/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | | 38 | 40 |
--------------------------------------------------------------------------------
| Investment property | | 139 | 158 |
--------------------------------------------------------------------------------
| Intangible assets | 5 | 718 | 718 |
--------------------------------------------------------------------------------
| Investments in associates | | 5 | 9 |
--------------------------------------------------------------------------------
| Financial assets | 6, 7 | 19,432 | 19,575 |
--------------------------------------------------------------------------------
| Investments related to unit-linked | 8 | 1,785 | 2,072 |
| insurance contracts | | | |
--------------------------------------------------------------------------------
| Tax assets | | 306 | 89 |
--------------------------------------------------------------------------------
| Reinsurers' share of insurance | | 528 | 489 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Other assets | | 1,459 | 1,316 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | | 432 | 958 |
--------------------------------------------------------------------------------
| Total assets | | 24,843 | 25,424 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | | |
--------------------------------------------------------------------------------
| Liabilities for insurance and | 9 | 13,295 | 13,148 |
| investment contracts | | | |
--------------------------------------------------------------------------------
| Liabilities for unit-linked insurance | 10 | 1,783 | 2,071 |
| and investment contracts | | | |
--------------------------------------------------------------------------------
| Financial liabilities | 11 | 2,236 | 1,102 |
--------------------------------------------------------------------------------
| Tax liabilities | | 403 | 562 |
--------------------------------------------------------------------------------
| Provisions | | 29 | 35 |
--------------------------------------------------------------------------------
| Employee benefits | | 106 | 118 |
--------------------------------------------------------------------------------
| Other liabilities | | 734 | 655 |
--------------------------------------------------------------------------------
| Total liabilities | | 18,586 | 17,691 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | | | |
--------------------------------------------------------------------------------
| Share capital | | 98 | 98 |
--------------------------------------------------------------------------------
| Reserves | | 646 | 1,847 |
--------------------------------------------------------------------------------
| Retained earnings | | 5,512 | 5,788 |
--------------------------------------------------------------------------------
| Equity attributable to parent company's | | 6,256 | 7,733 |
| equityholders | | | |
--------------------------------------------------------------------------------
| Minority interest | | 0 | 0 |
--------------------------------------------------------------------------------
| Total equity | | 6,256 | 7,733 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities | | 24,843 | 25,424 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMEN | | | | | | | | |
| TS OF | | | | | | | | |
| CHANGES | | | | | | | | |
| IN | | | | | | | | |
| EQUITY, | | | | | | | | |
| IFRS | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EURm | Share | Share | Legal | Fair | Retaine | Total | Minorit | Total |
| | capit | premi | reser | value | d | | y | |
| | al | um | ve | reser | earning | | interes | |
| | | accou | | ve | s | | t | |
| | | nt | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 95 | 1,157 | 370 | 486 | 3,061 | 5,168 | 21 | 5,189 |
| at 1 | | | | | | | | |
| Jan. | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Items of | | 0 | 0 | 3 | -3 | -1 | -21 | -22 |
| equity | | | | | | | | |
| of | | | | | | | | |
| disposed | | | | | | | | |
| operatio | | | | | | | | |
| ns | | | | | | | | |
--------------------------------------------------------------------------------
| Financia | | | | | | | | |
| l assets | | | | | | | | |
| availabl | | | | | | | | |
| e-for-sa | | | | | | | | |
| le | | | | | | | | |
--------------------------------------------------------------------------------
| - | | | | 5 | | 5 | | 5 |
| recognis | | | | | | | | |
| ed in | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| - | | | | -176 | | -176 | | -176 |
| recognis | | | | | | | | |
| ed in | | | | | | | | |
| p/l | | | | | | | | |
--------------------------------------------------------------------------------
| Exchange | | | | | -74 | -74 | | -74 |
| rate | | | | | | | | |
| translat | | | | | | | | |
| ion | | | | | | | | |
| differen | | | | | | | | |
| ce | | | | | | | | |
--------------------------------------------------------------------------------
| Profit | | | | | 3,572 | 3,572 | 0 | 3,572 |
| for | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | 0 | 0 | -169 | 3,495 | 3,326 | 0 | 3,305 |
| income | | | | | | | | |
| and | | | | | | | | |
| expenses | | | | | | | | |
| recognis | | | | | | | | |
| ed for | | | | | | | | |
| the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Subscrip | 3 | 4 | | | | 6 | | 6 |
| tion for | | | | | | | | |
| shares | | | | | | | | |
| with | | | | | | | | |
| options | | | | | | | | |
--------------------------------------------------------------------------------
| Share-ba | | | | | 0 | 0 | | 0 |
| sed | | | | | | | | |
| payments | | | | | | | | |
--------------------------------------------------------------------------------
| Acquisit | | | | | -81 | -81 | | -81 |
| ion of | | | | | | | | |
| treasury | | | | | | | | |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Recognit | | | | | 6 | 6 | | 6 |
| ion of | | | | | | | | |
| undrawn | | | | | | | | |
| dividend | | | | | | | | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | -693 | -693 | | -693 |
| s | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 98 | 1,160 | 370 | 317 | 5,788 | 7,733 | 0 | 7,733 |
| at 31 | | | | | | | | |
| Dec. | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financia | | | | | | | | |
| l assets | | | | | | | | |
| availabl | | | | | | | | |
| e-for-sa | | | | | | | | |
| le | | | | | | | | |
--------------------------------------------------------------------------------
| - | | | | -1,21 | | -1,21 | | -1,21 |
| recognis | | | | 8 | | 8 | | 8 |
| ed in | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| - | | | | 16 | | 16 | | 16 |
| recognis | | | | | | | | |
| ed in | | | | | | | | |
| p/l | | | | | | | | |
--------------------------------------------------------------------------------
| Exchange | | | | | -63 | -63 | | -63 |
| rate | | | | | | | | |
| translat | | | | | | | | |
| ion | | | | | | | | |
| differen | | | | | | | | |
| ce | | | | | | | | |
--------------------------------------------------------------------------------
| Profit | | | | | 521 | 521 | 0 | 521 |
| for the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Total | - | - | - | -1,20 | 459 | -743 | 0 | -743 |
| income | | | | 1 | | | | |
| and | | | | | | | | |
| expenses | | | | | | | | |
| recognis | | | | | | | | |
| ed for | | | | | | | | |
| the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Share-ba | | | | | 2 | 2 | | 2 |
| sed | | | | | | | | |
| payments | | | | | | | | |
--------------------------------------------------------------------------------
| Acquisit | | | | | -52 | -52 | | -52 |
| ion of | | | | | | | | |
| treasury | | | | | | | | |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Recognit | | | | | 3 | 3 | | 3 |
| ion of | | | | | | | | |
| undrawn | | | | | | | | |
| dividend | | | | | | | | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | -686 | -686 | | -686 |
| s | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 98 | 1,160 | 370 | -884 | 5,512 | 6,256 | 0 | 6,256 |
| at 30 | | | | | | | | |
| Sep 2008 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF CASH FLOWS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 1-9/2008 | 1-9/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalent at the beginning of | 971 | 2,016 |
| the period | | |
--------------------------------------------------------------------------------
| Cash flow from/used in operating activities | 503 | -748 |
--------------------------------------------------------------------------------
| Cash flow from/used in investing activities | -300 | 1,201 |
--------------------------------------------------------------------------------
| Cash flow from/used in financing activities | -730 | -1,338 |
--------------------------------------------------------------------------------
| Paid dividends | -678 | -693 |
--------------------------------------------------------------------------------
| Subscription for shares with options | - | 6 |
--------------------------------------------------------------------------------
| Acquisition of own shares | -52 | -3 |
--------------------------------------------------------------------------------
| Increase of liabilities | - | 742 |
--------------------------------------------------------------------------------
| Decrease of liabilities | - | -1,390 |
--------------------------------------------------------------------------------
| Cash and cash equivalent at the end of the | 445 | 1,131 |
| period | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The net cash flows of discontinued operations | 1-9/2008 | 1-9/2007 |
--------------------------------------------------------------------------------
| 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 | | | | | |
| NINE MONTHS ENDED 30 | | | | | |
| SEPTEMBER 2008 | | | | | |
--------------------------------------------------------------------------------
| EURm | P&C | Life | Holding | Elimina- | Group |
| | insuranc | insuran | | tion | |
| | e | ce | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Insurance premius | 3,096 | 381 | - | - | 3,478 |
| written | | | | | |
--------------------------------------------------------------------------------
| Net income from | 180 | -94 | 198 | -2 | 281 |
| investments | | | | | |
--------------------------------------------------------------------------------
| Other operating income | 20 | 0 | 4 | -11 | 12 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Claims incurred | -1,971 | -623 | - | - | -2,594 |
--------------------------------------------------------------------------------
| Change in liabilities | -212 | 512 | - | - | 300 |
| for insurance and | | | | | |
| investment contracts | | | | | |
--------------------------------------------------------------------------------
| Staff costs | -346 | -17 | -9 | - | -373 |
--------------------------------------------------------------------------------
| Other operating expenses | -352 | -36 | -10 | 6 | -392 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance costs | -22 | -9 | -27 | 7 | -50 |
--------------------------------------------------------------------------------
| Share of associates' | 2 | 0 | 0 | - | 2 |
| profit/loss | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before taxes | 395 | 114 | 155 | 1 | 664 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Taxes | | | | | -143 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period | | | | | 521 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | | | |
--------------------------------------------------------------------------------
| Equity holders of parent | | | | | 521 |
| company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | | | | | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME | | | | | |
| STATEMENT BY SEGMENT FOR | | | | | |
| NINE MONTHS ENDED 30 | | | | | |
| SEPTEMBER 2007 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EURm | P&C | Life | Holding | Elimina- | Group |
| | insuranc | insuran | | tion | |
| | e | ce | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Insurance premius | 3,055 | 430 | - | - | 3,485 |
| written | | | | | |
--------------------------------------------------------------------------------
| Net income from | 200 | 567 | 135 | -3 | 899 |
| investments | | | | | |
--------------------------------------------------------------------------------
| Other operating income | 19 | 0 | 5 | -7 | 17 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Claims incurred | -1,907 | -498 | - | - | -2,405 |
--------------------------------------------------------------------------------
| Change in liabilities | -227 | -141 | - | - | -368 |
| for insurance and | | | | | |
| investment contracts | | | | | |
--------------------------------------------------------------------------------
| Staff costs | -334 | -15 | -12 | - | -361 |
--------------------------------------------------------------------------------
| Other operating expenses | -356 | -37 | -16 | 6 | -403 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance costs | -21 | -8 | -29 | 7 | -51 |
--------------------------------------------------------------------------------
| Share of associates' | 0 | 1 | 1 | 0 | 2 |
| profit/loss | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from continuing | 430 | 298 | 83 | 3 | 814 |
| operations before taxes | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Taxes | | | | | -208 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from continuing | | | | | 607 |
| operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit from discontinued | | | | | 2,853 |
| operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period | | | | | 3,460 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | | | |
--------------------------------------------------------------------------------
| Equity holders of parent | | | | | 3,459 |
| company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | | | | | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE | | | | | |
| SHEET BY SEGMENT AT 30 | | | | | |
| SEPTEMBER 2008 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EURm | P&C | Life | Holding | Elimina- | Group |
| | insuran | insuranc | | tion | |
| | ce | e | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets | | | | | |
--------------------------------------------------------------------------------
| Property, plant and | 27 | 6 | 5 | - | 38 |
| equipment | | | | | |
--------------------------------------------------------------------------------
| Investment property | 28 | 101 | 10 | - | 139 |
--------------------------------------------------------------------------------
| Intangible assets | 552 | 166 | 0 | - | 718 |
--------------------------------------------------------------------------------
| Investments in associates | 3 | 2 | 0 | - | 5 |
--------------------------------------------------------------------------------
| Financial assets | 10,921 | 4,842 | 6,167 | -2,498 | 19,432 |
--------------------------------------------------------------------------------
| Investments related to | - | 1,785 | - | - | 1,785 |
| unit-linked insurance | | | | | |
| contracts | | | | | |
--------------------------------------------------------------------------------
| Tax assets | 65 | 37 | 204 | 0 | 306 |
--------------------------------------------------------------------------------
| Reinsurers' share of | 523 | 4 | - | - | 528 |
| insurance liabilities | | | | | |
--------------------------------------------------------------------------------
| Other assets | 1,365 | 69 | 50 | -24 | 1,459 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 317 | 67 | 48 | - | 432 |
--------------------------------------------------------------------------------
| Total assets | 13,802 | 7,079 | 6,484 | -2,522 | 24,843 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | | | | |
--------------------------------------------------------------------------------
| Liabilities for insurance | 8,754 | 4,542 | - | - | 13,295 |
| and investment contracts | | | | | |
--------------------------------------------------------------------------------
| Liabilities for | - | 1,783 | - | - | 1,783 |
| unit-linked insurance and | | | | | |
| investment contracts | | | | | |
--------------------------------------------------------------------------------
| Financial liabilities | 1,628 | 116 | 616 | -125 | 2,236 |
--------------------------------------------------------------------------------
| Tax liabilities | 347 | 44 | 12 | - | 403 |
--------------------------------------------------------------------------------
| Provisions | 29 | - | - | - | 29 |
--------------------------------------------------------------------------------
| Employee benefits | 106 | - | - | - | 106 |
--------------------------------------------------------------------------------
| Other liabilities | 632 | 58 | 68 | -24 | 734 |
--------------------------------------------------------------------------------
| Total liabilities | 11,496 | 6,542 | 696 | -149 | 18,586 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | | | | | |
--------------------------------------------------------------------------------
| Share capital | | | | | 98 |
--------------------------------------------------------------------------------
| Reserves | | | | | 646 |
--------------------------------------------------------------------------------
| Retained earnings | | | | | 5,512 |
--------------------------------------------------------------------------------
| Equity attributable to | | | | | 6,256 |
| parent company's | | | | | |
| equityholders | | | | | |
--------------------------------------------------------------------------------
| Minority interest | | | | | 0 |
--------------------------------------------------------------------------------
| Total equity | | | | | 6,256 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and | | | | | 24,843 |
| 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 | | |
--------------------------------------------------------------------------------
| | 1-9/2008 | 1-9/2007 |
--------------------------------------------------------------------------------
| Premiums from insurance contracts | | |
--------------------------------------------------------------------------------
| Premiums written, direct insurance | 3,241 | 3,204 |
--------------------------------------------------------------------------------
| Premiums written, assumed reinsurance | 76 | 75 |
--------------------------------------------------------------------------------
| Premiums written, gross | 3,317 | 3,279 |
--------------------------------------------------------------------------------
| Ceded reinsurance premiums written | -220 | -224 |
--------------------------------------------------------------------------------
| P&C Insurance, total | 3,096 | 3,055 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in unearned premium provision | -250 | -263 |
--------------------------------------------------------------------------------
| Reinsurers' share | 38 | 36 |
--------------------------------------------------------------------------------
| Premiums earned for P&C Insurance, total | 2,884 | 2,828 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | | |
--------------------------------------------------------------------------------
| | 1-9/2008 | 1-9/2007 |
--------------------------------------------------------------------------------
| Premiums from insurance contracts | | |
--------------------------------------------------------------------------------
| Premiums from contracts with discretionary | 135 | 140 |
| participation feature | | |
--------------------------------------------------------------------------------
| Premiums from unit-linked contracts | 181 | 274 |
--------------------------------------------------------------------------------
| Premiums from other contracts | 3 | 5 |
--------------------------------------------------------------------------------
| Insurance contracts, total | 319 | 419 |
--------------------------------------------------------------------------------
| Assumed reinsurance | 0 | 3 |
--------------------------------------------------------------------------------
| Premiums from investment contracts | | |
--------------------------------------------------------------------------------
| Premiums from contracts with discretionary | 38 | 1 |
| participation feature | | |
--------------------------------------------------------------------------------
| Premiums from unit-linked contracts | 31 | 13 |
--------------------------------------------------------------------------------
| Investment contracts, total | 69 | 14 |
--------------------------------------------------------------------------------
| Reinsurers' shares | -7 | -6 |
--------------------------------------------------------------------------------
| Life insurance, total | 381 | 430 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Single and regular premiums from direct | | |
| insurance | | |
--------------------------------------------------------------------------------
| Regular premiums, insurance contracts | 268 | 268 |
--------------------------------------------------------------------------------
| Single premiums, insurance contracts | 51 | 151 |
--------------------------------------------------------------------------------
| Single premiums, investment contracts | 69 | 14 |
--------------------------------------------------------------------------------
| Total | 388 | 433 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | 3,478 | 3,485 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 2 NET INCOME FROM INVESTMENTS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C Insurance | | |
--------------------------------------------------------------------------------
| | 1-9/2008 | 1-9/2007 |
--------------------------------------------------------------------------------
| Financial assets | | |
--------------------------------------------------------------------------------
| Derivative financial instruments | 55 | 40 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial assets designated as at fair value | | |
| through p/l | | |
--------------------------------------------------------------------------------
| Debt securities | 56 | 177 |
--------------------------------------------------------------------------------
| Equity securities | -129 | 14 |
--------------------------------------------------------------------------------
| Total | -73 | 191 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Loans and receivables | 22 | 18 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial asset available-for-sale | | |
--------------------------------------------------------------------------------
| Debt securities | 226 | - |
--------------------------------------------------------------------------------
| Equity securities | 11 | - |
--------------------------------------------------------------------------------
| Total | 237 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total financial assets | 242 | 249 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income from other assets | 1 | 1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fee and commission expense | -7 | -6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest expense on repurchase agreements | -9 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Expense on other than financial liabilities | -1 | -1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Effect of discounting annuities | -45 | -42 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance, total | 180 | 200 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | | |
--------------------------------------------------------------------------------
| | 1-9/2008 | 1-9/2007 |
--------------------------------------------------------------------------------
| Financial assets | | |
--------------------------------------------------------------------------------
| Derivative financial instruments | 20 | 27 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial assets designated as at fair value | | |
| through p/l | | |
--------------------------------------------------------------------------------
| Debt securities | -3 | 0 |
--------------------------------------------------------------------------------
| Equity securities | -1 | 0 |
--------------------------------------------------------------------------------
| Total | -4 | 1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investments related to unit-linked contracts | | |
--------------------------------------------------------------------------------
| Debt securities | -1 | -4 |
--------------------------------------------------------------------------------
| Equity securities | -329 | 102 |
--------------------------------------------------------------------------------
| Total | -330 | 98 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investment securities held-to-maturity | | |
--------------------------------------------------------------------------------
| Debt securities | 0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Loans and receivables | -1 | 3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial asset available-for-sale | | |
--------------------------------------------------------------------------------
| Debt securities | 105 | 81 |
--------------------------------------------------------------------------------
| Equity securities | 100 | 344 |
--------------------------------------------------------------------------------
| Total | 206 | 425 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total income from financial assets | -108 | 554 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other assets | 5 | 4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fee and commission income, net | 9 | 9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance, total | -94 | 567 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding | | |
--------------------------------------------------------------------------------
| | 1-9/2008 | 1-9/2007 |
--------------------------------------------------------------------------------
| Financial assets | | |
--------------------------------------------------------------------------------
| Derivative financial instruments | -3 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Loans and other receivables | 11 | -1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial assets available-for-sale | | |
--------------------------------------------------------------------------------
| Debt securities | 64 | 96 |
--------------------------------------------------------------------------------
| Equity securities | 133 | 41 |
--------------------------------------------------------------------------------
| Total | 197 | 137 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other assets | -8 | -2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding, total | 198 | 135 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Elimination items between segments | -2 | -3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | 281 | 899 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3 CLAIMS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | 1-9/2008 | 1-9/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Claims paid | -1,866 | -1,709 |
--------------------------------------------------------------------------------
| Reinsurers' share | 92 | 99 |
--------------------------------------------------------------------------------
| Claims paid, net | -1,774 | -1,610 |
--------------------------------------------------------------------------------
| Change in provision for claims outstanding | -208 | -284 |
--------------------------------------------------------------------------------
| Reinsurers' share | 12 | -12 |
--------------------------------------------------------------------------------
| P&C Insurance total | -1,971 | -1,907 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | 1-9/2008 | 1-9/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Claims paid | -480 | -413 |
--------------------------------------------------------------------------------
| Reinsurers' share | 5 | 5 |
--------------------------------------------------------------------------------
| Claims paid, net | -476 | -408 |
--------------------------------------------------------------------------------
| Change in provision for claims outstanding | -148 | -90 |
--------------------------------------------------------------------------------
| Reinsurers' share | 1 | 0 |
--------------------------------------------------------------------------------
| Life insurance, total | -623 | -498 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | -2,594 | -2,405 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4 STAFF COSTS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | 1-9/2008 | 1-9/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Wages and salaries | -246 | -228 |
--------------------------------------------------------------------------------
| Granted equity-settled share options | -1 | -1 |
--------------------------------------------------------------------------------
| Granted cash-settled share options | -2 | -5 |
--------------------------------------------------------------------------------
| Pension costs | -49 | -53 |
--------------------------------------------------------------------------------
| Other social security costs | -49 | -47 |
--------------------------------------------------------------------------------
| P&C insurance, total | -346 | -334 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | 1-9/2008 | 1-9/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Wages and salaries | -14 | -12 |
--------------------------------------------------------------------------------
| Granted equity-settled share options | 0 | 0 |
--------------------------------------------------------------------------------
| Granted cash-settled share options | 0 | 0 |
--------------------------------------------------------------------------------
| Pension costs | -2 | -2 |
--------------------------------------------------------------------------------
| Other social security costs | -1 | -1 |
--------------------------------------------------------------------------------
| Life insurance, total | -17 | -15 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding | 1-9/2008 | 1-9/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Wages and salaries | -5 | -8 |
--------------------------------------------------------------------------------
| Granted equity-settled share options | -1 | -1 |
--------------------------------------------------------------------------------
| Granted cash-settled share options | -1 | 0 |
--------------------------------------------------------------------------------
| Pension costs | -2 | -2 |
--------------------------------------------------------------------------------
| Other social security costs | -1 | 0 |
--------------------------------------------------------------------------------
| Holding, total | -9 | -12 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | -373 | -361 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 5 INTANGIBLE ASSETS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | 9/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Goodwill | 532 | 530 |
--------------------------------------------------------------------------------
| Customer relations | 16 | 21 |
--------------------------------------------------------------------------------
| Other intangible assets | 4 | 3 |
--------------------------------------------------------------------------------
| P&C Insurance, total | 552 | 554 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | 9/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Goodwill | 153 | 153 |
--------------------------------------------------------------------------------
| Other intangible assets | 13 | 11 |
--------------------------------------------------------------------------------
| Life insurance, total | 166 | 164 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding | 9/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other intangible assets | 0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | 718 | 718 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 6 FINANCIAL ASSETS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | | |
--------------------------------------------------------------------------------
| | 9/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative financial instruments (Note 7) | 85 | 182 |
--------------------------------------------------------------------------------
| Financial assets designated as at fair value | | |
| through p/l | | |
--------------------------------------------------------------------------------
| Debt securities | 502 | 8,272 |
--------------------------------------------------------------------------------
| Equity securities | 56 | 1,011 |
--------------------------------------------------------------------------------
| Total | 558 | 9,283 |
--------------------------------------------------------------------------------
| Loans and receivables | | |
--------------------------------------------------------------------------------
| Loans | 4 | - |
--------------------------------------------------------------------------------
| Deposits with ceding undertakings | 1 | 2 |
--------------------------------------------------------------------------------
| Repurchase agreement receivables. | 129 | - |
--------------------------------------------------------------------------------
| Total | 134 | 2 |
--------------------------------------------------------------------------------
| Financial assets available-for-sale | | |
--------------------------------------------------------------------------------
| Debt securities | 9,603 | - |
--------------------------------------------------------------------------------
| Equity securities | 541 | - |
--------------------------------------------------------------------------------
| Total | 10,144 | - |
--------------------------------------------------------------------------------
| P&C insurance, total | 10,921 | 9,467 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | | |
--------------------------------------------------------------------------------
| | 9/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative financial instruments (Note 7) | 6 | 10 |
--------------------------------------------------------------------------------
| Financial assets designated as at fair value | | |
| through p/l | | |
--------------------------------------------------------------------------------
| Debt securities | 44 | 42 |
--------------------------------------------------------------------------------
| Equity securities | 0 | 5 |
--------------------------------------------------------------------------------
| Total | 45 | 47 |
--------------------------------------------------------------------------------
| Investments held-to-maturity | | |
--------------------------------------------------------------------------------
| Debt securities | 1 | 8 |
--------------------------------------------------------------------------------
| Loans and receivables | | |
--------------------------------------------------------------------------------
| Loans | 3 | - |
--------------------------------------------------------------------------------
| Deposits | 2 | 2 |
--------------------------------------------------------------------------------
| Deposits with ceding undertakings | 2 | 2 |
--------------------------------------------------------------------------------
| Total | 6 | 4 |
--------------------------------------------------------------------------------
| Financial assets available-for-sale | | |
--------------------------------------------------------------------------------
| Debt securities | 3,436 | 3,679 |
--------------------------------------------------------------------------------
| Equity securities *) | 1,349 | 1,707 |
--------------------------------------------------------------------------------
| Total | 4,785 | 5,387 |
--------------------------------------------------------------------------------
| Life insurance, total | 4,842 | 5,456 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) of which investments in interest funds | 272 | 276 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding | | |
--------------------------------------------------------------------------------
| | 9/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative financial instruments (Note 7) | 0 | 0 |
--------------------------------------------------------------------------------
| Loans and receivables | | |
--------------------------------------------------------------------------------
| Deposits | 1 | 1 |
--------------------------------------------------------------------------------
| Financial assets available-for-sale | | |
--------------------------------------------------------------------------------
| Debt securities | 1,337 | 2,023 |
--------------------------------------------------------------------------------
| Equity securities | 2,459 | 2,758 |
--------------------------------------------------------------------------------
| Total | 3,796 | 4,781 |
--------------------------------------------------------------------------------
| Investments in subsidiaries | 2,370 | 2,370 |
--------------------------------------------------------------------------------
| Holding, total | 6,167 | 7,151 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Elimination items between segments | -2,498 | -2,499 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | 19,432 | 19,575 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 7 | | | | | | |
| DERIVATIVE | | | | | | |
| FINANCIAL | | | | | | |
| INSTRUMENTS | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C | | 9/2008 | | | 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 | 49 | 2 | - | 6,368 | 24 | 7 |
| rate | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Foreign | 5,014 | 83 | 117 | 5,963 | 159 | 82 |
| exchange | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Equity | 83 | 0 | 5 | 68 | 0 | 0 |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| P&C | 5,147 | 85 | 122 | 12,399 | 182 | 90 |
| Insurance, | | | | | | |
| total | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life | | 9/2008 | | | 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 | 630 | 2 | 0 | 475 | 1 | 0 |
| rate | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Foreign | 604 | 2 | 15 | 541 | 7 | 1 |
| exchange | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Equity | 0 | 0 | 0 | 59 | 2 | 0 |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Commodity | 0 | 0 | 0 | 0 | 0 | 0 |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Total | 1,234 | 4 | 15 | 1,075 | 10 | 1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivatives | | | | | | |
| held for | | | | | | |
| hedging | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | 301 | 2 | - | - | - | - |
| hedges | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life | 1,535 | 6 | 15 | 1,075 | 10 | 1 |
| insurance, | | | | | | |
| total | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding | | 9/2008 | | | 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 | 253 | 0 | 15 | 4 | 0 | 0 |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 8 INVESTMENTS RELATED TO UNIT-LINKED INSURANCE | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | | |
--------------------------------------------------------------------------------
| | 9/2008 | 12/2007 |
--------------------------------------------------------------------------------
| Financial assets as at fair value through p/l | | |
--------------------------------------------------------------------------------
| Debt securities | 111 | 75 |
--------------------------------------------------------------------------------
| Equity securities | 1,652 | 1,997 |
--------------------------------------------------------------------------------
| Financial assets as at fair value through p/l | 1,763 | 2,072 |
| total | | |
--------------------------------------------------------------------------------
| Other | 23 | 0 |
--------------------------------------------------------------------------------
| Life insurance, total | 1,785 | 2,072 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 9 LIABILITIES FOR INSURANCE AND INVESTMENT | | |
| CONTRACTS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | | |
--------------------------------------------------------------------------------
| | 9/2008 | 12/2007 |
--------------------------------------------------------------------------------
| Insurance contracts | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 1,890 | 1,691 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 6,864 | 6,835 |
--------------------------------------------------------------------------------
| P&C Insurance, total | 8,754 | 8,527 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Reinsurers' share | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 94 | 55 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 429 | 429 |
--------------------------------------------------------------------------------
| P&C Insurance, total | 523 | 484 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | | |
--------------------------------------------------------------------------------
| | 9/2008 | 12/2007 |
--------------------------------------------------------------------------------
| Insurance contracts | | |
--------------------------------------------------------------------------------
| Liabilities for contracts with DPF | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 2,590 | 2,843 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 1,809 | 1,664 |
--------------------------------------------------------------------------------
| Total | 4,399 | 4,506 |
--------------------------------------------------------------------------------
| Liabilities for contracts without DPF | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 13 | 3 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 1 | 1 |
--------------------------------------------------------------------------------
| Total | 13 | 4 |
--------------------------------------------------------------------------------
| Total | 4,412 | 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 | 2,604 | 2,849 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 1,812 | 1,667 |
--------------------------------------------------------------------------------
| Total | 4,416 | 4,515 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investment contracts | | |
--------------------------------------------------------------------------------
| Liabilities for contracts with DPF | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 126 | 105 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities for insurance and investment | | |
| contracts, total | | |
--------------------------------------------------------------------------------
| Provision for unearned premiums | 2,730 | 2,954 |
--------------------------------------------------------------------------------
| Provision for claims outstanding | 1,812 | 1,667 |
--------------------------------------------------------------------------------
| Life insurance, total | 4,542 | 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.
--------------------------------------------------------------------------------
| Group, total | 13,295 | 13,148 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 10 LIABILITIES FROM UNIT-LINKED INSURANCE AND | | |
| INVESTMENT CONTRACTS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | 9/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Unit-linked insurance contracts | 1,698 | 2,008 |
--------------------------------------------------------------------------------
| Unit-linked investment contracts | 85 | 63 |
--------------------------------------------------------------------------------
| Life insurance, total | 1,783 | 2,071 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 11 FINANCIAL LIABILITIES | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | 9/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative financial instruments (Note 7) | 122 | 90 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Subordinated debt securities | | |
--------------------------------------------------------------------------------
| Subordinated loans | 438 | 440 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | | |
--------------------------------------------------------------------------------
| Repurchase agreement for bonds | 1,069 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance, total | 1,628 | 530 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | 9/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative financial instruments (Note 7) | 15 | 1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Subordinated debt securities | | |
--------------------------------------------------------------------------------
| Subordinated loans | 100 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance, total | 116 | 101 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding | 9/2008 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative financial instruments (Note 7) | 15 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Subordinated debt securities | | |
--------------------------------------------------------------------------------
| Debentures | 595 | 589 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | | |
--------------------------------------------------------------------------------
| Other | 6 | 6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding, total | 616 | 596 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Elimination items between segments | -125 | -125 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group, total | 2,236 | 1,102 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 12 CONTINGENT LIABILITIES AND | | | | |
| COMMITMENTS | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| P&C insurance | | | | |
--------------------------------------------------------------------------------
| | 9/2008 | 12/2007 | | |
--------------------------------------------------------------------------------
| Off-balance sheet items | | | | |
--------------------------------------------------------------------------------
| Guarantees | 37 | 41 | | |
--------------------------------------------------------------------------------
| Other irrevocable commitments | 24 | 16 | | |
--------------------------------------------------------------------------------
| Total | 61 | 57 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | | | | |
--------------------------------------------------------------------------------
| Assets covered by | 350 | 340 | | |
| policyholders' beneficiary | | | | |
| rights | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets pledged as collateral | | | | |
| for liabilities or contingent | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| | 9/2008 | 9/2008 | 12/2007 | 12/2007 |
--------------------------------------------------------------------------------
| Assets pledged as collateral | Assets | Liabilitie | Assets | Liabilitie |
| | pledged | s/ commit- | pledged | s/ commit- |
| | | ments | | ments |
--------------------------------------------------------------------------------
| Cash at balances at central | 9 | 8 | 12 | 8 |
| banks | | | | |
--------------------------------------------------------------------------------
| Investments | | | | |
--------------------------------------------------------------------------------
| - Investment securities | 152 | 105 | 276 | 102 |
--------------------------------------------------------------------------------
| Total | 161 | 113 | 289 | 110 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-cancellable operating | 9/2008 | 12/2007 | | |
| leases | | | | |
--------------------------------------------------------------------------------
| Minimum lease payments | | | | |
--------------------------------------------------------------------------------
| not later than one year | 31 | 35 | | |
--------------------------------------------------------------------------------
| later than one year and not | 84 | 101 | | |
| later than five years | | | | |
--------------------------------------------------------------------------------
| later than five years | 93 | 99 | | |
--------------------------------------------------------------------------------
| Total | 208 | 236 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life insurance | | | | |
--------------------------------------------------------------------------------
| | 9/2008 | 12/2007 | | |
--------------------------------------------------------------------------------
| Off-balance sheet items | | | | |
--------------------------------------------------------------------------------
| Fund commitments | 338 | 273 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 9/2008 | 12/2007 | | |
--------------------------------------------------------------------------------
| Other commitments | | | | |
--------------------------------------------------------------------------------
| Acquisition of IT-software | 0 | 1 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-cancellable operating | 9/2008 | 12/2007 | | |
| leases | | | | |
--------------------------------------------------------------------------------
| Minimum lease payments | | | | |
--------------------------------------------------------------------------------
| not later than one year | 2 | 2 | | |
--------------------------------------------------------------------------------
| later than one year and not | 7 | 6 | | |
| later than five years | | | | |
--------------------------------------------------------------------------------
| later than five years | 3 | 4 | | |
--------------------------------------------------------------------------------
| Total | 11 | 12 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Holding | | | | |
--------------------------------------------------------------------------------
| | 9/2008 | 12/2007 | | |
--------------------------------------------------------------------------------
| Off-balance sheet items | | | | |
--------------------------------------------------------------------------------
| Fund commitments | 16 | 6 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets pledged as collateral | | | | |
| for liabilities or contingent | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| | 9/2008 | 9/2008 | 12/2007 | 12/2007 |
--------------------------------------------------------------------------------
| Assets pledged as collateral | Assets | Liabilitie | Assets | Liabilitie |
| | pledged | s/ commit- | pledged | s/ commit- |
| | | ments | | ments |
--------------------------------------------------------------------------------
| Investments | | | | |
--------------------------------------------------------------------------------
| - Mortgaged collateral notes | 15 | 6 | 15 | 6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-cancellable operating | 9/2008 | 12/2007 | | |
| leases | | | | |
--------------------------------------------------------------------------------
| Minimum lease payments | | | | |
--------------------------------------------------------------------------------
| not later than one year | 3 | 2 | | |
--------------------------------------------------------------------------------
| later than one year and not | 4 | 5 | | |
| later than five years | | | | |
--------------------------------------------------------------------------------
| later than five years | 3 | 3 | | |
--------------------------------------------------------------------------------
| Total | 10 | 11 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 13 RESULT ANALYSIS OF P&C INSURANCE BUSINESS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 1-9/2008 | 1-9/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Premiums earned | 2,884 | 2,828 |
--------------------------------------------------------------------------------
| Claims incurred | -2,154 | -2,088 |
--------------------------------------------------------------------------------
| Operating expenses | -494 | -484 |
--------------------------------------------------------------------------------
| Other technical income and expenses | 4 | 1 |
--------------------------------------------------------------------------------
| Allocated investment return transferred from the | 178 | 148 |
| non-technical account | | |
--------------------------------------------------------------------------------
| Technical result | 419 | 405 |
--------------------------------------------------------------------------------
| Investment result | 204 | 222 |
--------------------------------------------------------------------------------
| Allocated investment return transferred to the | -224 | -190 |
| technical account | | |
--------------------------------------------------------------------------------
| Other income and expenses | -4 | -6 |
--------------------------------------------------------------------------------
| Operating result | 395 | 430 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 14 SAMPO PLC'S INCOME STATEMENT AND BALANCE SHEET | | |
| (FAS) | | |
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| INCOME STATEMENT | | |
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| | 1-9/2008 | 1-9/2007 |
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| Other operating income | 5 | 9 |
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| Staff expenses | -8 | -13 |
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| Depreciation and impairment | -1 | -2 |
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| Other operating expenses | -10 | -20 |
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| Operating profit | -14 | -27 |
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| Finance income and expenses | 371 | 3,781 |
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| Profit before appropriations and income taxes | 357 | 3,755 |
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| Income taxes | -7 | -21 |
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| Profit for the financial period | 350 | 3,733 |
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| BALANCE SHEET | 9/2008 | 12/2007 |
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| ASSETS | | |
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| Non-current assets | | |
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| Intangible assets | 1 | 1 |
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| Property, plant and equipment | 4 | 6 |
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| Investments | | |
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| Shares in Group companies | 2,370 | 2,370 |
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| Receivables from Group companies | 126 | 128 |
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| Shares in participating undertakings | - | 1 |
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| Other shares and participations | 2,464 | 2,763 |
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| Other receivables | 1,211 | 1,896 |
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| Receivables | 251 | 57 |
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| Cash and cash equivalents | 48 | 228 |
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| TOTAL ASSETS | 6,476 | 7,450 |
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| LIABILITIES | | |
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| Equity | | |
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| Share capital | 98 | 98 |
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| Share premium account | 1,160 | 1,160 |
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| Legal reserve | 366 | 366 |
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| Fair value reserve | -567 | 26 |
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| Other reserves | 273 | 273 |
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| Retained earnings | 4,109 | 811 |
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| Profit for the year | 350 | 4,033 |
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| Total equity | 5,789 | 6,768 |
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| Liabilities | | |
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| Long-term | 595 | 589 |
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| Short-term | 92 | 93 |
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| Total liabilities | 688 | 682 |
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| TOTAL LIABILITIES | 6,476 | 7,450 |
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