Mandatum Life to receive Suomi Mutual's group pension insurance portfolio

| Source: Sampo
SAMPO PLC               STOCK EXCHANGE RELEASE         19 March 2014 at 8.55 am

Mandatum Life to receive Suomi Mutual's group pension insurance portfolio

Sampo's subsidiary Mandatum Life Insurance Company (Mandatum Life) and Suomi
Mutual Life Assurance Company (Suomi Mutual) have agreed on the transfer of
Suomi Mutual's with-profit group pension portfolio to Mandatum Life. The
portfolio transfer is scheduled to take place on 30 December 2014. The portfolio
transfer requires the approval of both companies' Annual General Meetings and
the consent of the Financial Supervisory Authority. The Annual General Meetings
of Mandatum Life and Suomi Mutual will be held on 7 May 2014.

Suomi Mutual's group pension portfolio comprises approximately 2,300 policies
and 34,000 members. The insurance portfolio is closed, so no new members can be
included in the existing insurance contracts.

Corporate customers and entrepreneurs are among Mandatum Life's focus areas, and
the company is the market leader in group pension insurance. The portfolio
transfer will enable more efficient services and cost savings as Mandatum Life
continues to develop its operations as a provider of insurance services for
corporates and entrepreneurs.

In the portfolio transfer, assets corresponding to the proportion of the group
pension portfolio of Suomi Mutual's total assets will be transferred from Suomi
Mutual. The final amount of the transferred assets will be established in
connection with the portfolio transfer, but it is estimated to have been around
EUR 1.3 billion on 31 December 2013. The amount corresponding to the transferred
assets will be appropriated in its entirety to Mandatum Life's technical
provisions at the time of the portfolio transfer. The transferred amount is
expected to enable a decrease in the discount rate in technical provisions to
1.5 per cent, as well as mortality and expense supplements and substantial
provisions for future client bonuses.

A separate profit distribution policy has been agreed on for the insurance
portfolio, stating that Mandatum Life will carry the insurance and expense risks
inherent in the insurance portfolio in the future. As regards the investment
assets covering the insurance portfolio, it has been agreed that the first 1.5
per cent will be used for the benefit of the insurance portfolio, and of any
excess returns, 65 per cent will be allocated to the insurance portfolio and 35
per cent to Mandatum Life. In the event of investment returns remaining below
1.5 per cent, the liability for future bonuses in technical provisions will be
decreased first, after which Mandatum Life will bear the cost. No separate
consideration will be paid for the transferred portfolio.

The transferred insurance portfolio and the covering assets will be segregated
from the rest of Mandatum Life's insurance portfolio and reported as a separate
segment in Mandatum Life's IFRS financial statements. Mandatum Life and Suomi
Mutual have agreed on the establishment of a special monitoring group as part of
the implementation of the insurance portfolio transfer. The key task of the
monitoring group will be to oversee the execution of the profit distribution
policy concerning the transferred insurance portfolio. The group is not a
decision-making body and therefore cannot make decisions that are binding on the
parties. Its members will be representatives of Suomi Mutual and the

The portfolio transfer is expected to have a positive impact on Mandatum Life's
risk and expense results. The investment result is strongly tied to the
development of the capital markets. All in all the portfolio transfer is
expected to have a positive, albeit relatively minor impact on Sampo Group's


Jarmo Salonen

Head of Investor Relations and Group Communications

Tel. + 358 10 516 0030

For more information, please contact:

Jarmo Salonen

Head of Investor Relations and Group Communications

Tel. +358 10 516 0030

Maria Silander

Press Officer

Tel. +358 010 516 0031

Jukka Kurki

Chief Financial Officer, Mandatum Life Insurance Company

Tel. +358 10 516 7203

Niina Riihelä

Vice President, Marketing and Communications, Mandatum Life Insurance Company

Tel. +358 40 728 1548

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