Sampo A Ord Regulatory News (0HAG)

11 Feb 2009 06:30

Sampo / Final Results 11.02.2009 08:30 Dissemination of a UK Regulatory Announcement, transmitted byDGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.--------------------------------------------------------------------------- SAMPO PLC FINANCIAL STATEMENT RELEASE 11 February 2009, at 9.30am SAMPO GROUP'S RESULTS FOR 2008 AND DIVIDEND PROPOSAL Solid performance in P&C insurance Sampo Group's profit before taxes for 2008 amounted to EUR 870 million (3,833). The profit for the comparison year contains the sales gain of EUR 2,830 million from the Sampo Bank transaction closed on 1 February 2007. Earnings per share amounted to EUR 1.18 (6.18). The comparable earnings per share for 2007 were EUR1.25. Earnings per share, including the change in the fair value reserve, amounted to EUR -3.52 per share (5.89). - Net asset value per share amounted to EUR 8.28 (13.49). Sampo Group has not made use of any of the relaxations in the IFRS rules in the valuation of assets.The fair value reserve on the Group level decreased to EUR -2,364 million (316).Furthermore net asset value was burdened by the exceptionally weak Swedish krona. - The Board proposes to the AGM on 7 April 2009 a dividend of EUR 0.80 per shareand an authorization to repurchase at maximum 50 million Sampo A shares. - Profit before taxes in P&C insurance increased to EUR 549 million (534) and the combined ratio remained sound at 91.8 per cent (90.6). - Profit before taxes in life insurance decreased to EUR 140 million (342). - Profit before taxes for the segment 'Holding' amounted to EUR 180 million (95). - Sampo Group had on 31 December 2008 approximately EUR 2.1 billion of excess capital calculated as the difference between group equity and the economic capital required to manage the operations. --------------------------------------------------------------------------------| KEY FIGURES | | | Change | Q4 | Q4 | Change |--------------------------------------------------------------------------------| EURm | 2008 | 2007 | % | 2008 | 2007 | % |--------------------------------------------------------------------------------| Profit before taxes *) | 870 | 3,833 | -77 | 206 | 160 | 29 |--------------------------------------------------------------------------------| P&C insurance | 549 | 534 | 3 | 154 | 104 | 48 |--------------------------------------------------------------------------------| Life insurance | 140 | 342 | -59 | 26 | 44 | -40 |--------------------------------------------------------------------------------| Holding | 180 | 95 | 89 | 26 | 12 | 118 |--------------------------------------------------------------------------------| Profit for the period | 675 | 3,573 | -81 | 153 | 113 | 35 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Dividend per share, EUR | 0.80 | 1.20 | -33 | - | - | - |--------------------------------------------------------------------------------| Earnings per share, EUR | 1.18 | 1.25 | -6 | 0.27 | 0.20 | 39 |--------------------------------------------------------------------------------| EPS (incl. change in | -3.52 | 0.95 | - | -2.33 | -0.13 | - || FVR) EUR | | | | | | |--------------------------------------------------------------------------------| NAV per share, EUR | 8.28 | 13.49 | -39 | - | - | - |--------------------------------------------------------------------------------| Average number of staff | 7,145 | 6,855 | 4 | - | - | - || (FTE) | | | | | | |--------------------------------------------------------------------------------| Group solvency ratio, % | 433.6 | 774.6 | -44 | - | - | - |--------------------------------------------------------------------------------| RoE, % | -32.4 | 52.6 | - | - | - | - |-------------------------------------------------------------------------------- *) Comparison figures include 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). **) Comparison figures exclude the sales gain from Sampo Bank The figures in this report are unaudited. FOURTH QUARTER 2008 IN BRIEF Sampo Group's reported profit before taxes in the fourth quarter of 2008 grew toEUR 206 million (160). Earnings per share were EUR 0.27 (0.20) and taking the change in the fair value reserve into account earnings per share decreased to EUR -2.33 (-0.13). P&C insurance reported a profit before taxes of EUR 154 million (104) for the fourth quarter. The insurance technical result was good with the combined ratio amounting to 91.9 per cent (89.8). Weak development of Swedish and Norwegian currencies had a negative effect on premium growth reported in euros. Reported net investment income was EUR 88 million (11). The profit before taxes for life insurance operations amounted to EUR 26 million(44). Premiums written decreased to EUR 148 million (188) due to the difficult market conditions. Segment 'Holding' reported a profit before taxes of EUR 26 million in the fourthquarter (12). BUSINESS AREAS IN 2008 P&C insurance If P&C Insurance 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 InsuranceHolding Ltd, is located in Sweden, and the If subsidiaries provide insurance solutions and services in Finland, Sweden, Norway, Denmark, the Baltic countriesand Russia. If's operations are divided into four business areas: Private, Commercial, Industrial and Baltic & Russia. --------------------------------------------------------------------------------| Results | | | Change | Q4 | Q4 | Change |--------------------------------------------------------------------------------| EUR m | 2008 | 2007 | % | 2008 | 2007 | % |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Insurance premiums | 3,821 | 3,840 | 0 | 724 | 785 | -8 || earned | | | | | | |--------------------------------------------------------------------------------| Net income from | 268 | 211 | 27 | 88 | 11 | 721 || investments | | | | | | |--------------------------------------------------------------------------------| Other operating income | 26 | 29 | -10 | 6 | 10 | -38 |--------------------------------------------------------------------------------| Claims incurred | -2,59 | -2,541 | 2 | -621 | -634 | -2 || | 2 | | | | | |--------------------------------------------------------------------------------| Change in insurance | -14 | -43 | -67 | 198 | 184 | 8 || liabilities | | | | | | |--------------------------------------------------------------------------------| Staff costs | -460 | -441 | 4 | -113 | -107 | 6 |--------------------------------------------------------------------------------| Other expenses | -473 | -493 | -4 | -121 | -137 | -12 |--------------------------------------------------------------------------------| Finance costs | -29 | -29 | 0 | -7 | -8 | -11 |--------------------------------------------------------------------------------| Profit (loss) before | 549 | 534 | 3 | 154 | 104 | 48 || taxes | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Key figures | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Combined ratio, % | 91.8 | 90.6 | 1 | 91.9 | 89.8 | 2 |--------------------------------------------------------------------------------| Risk ratio, % | 68.1 | 66.9 | 2 | 67.4 | 65.4 | 3 |--------------------------------------------------------------------------------| Cost ratio, % | 23.7 | 23.7 | 0 | 24.5 | 24.3 | 1 |--------------------------------------------------------------------------------| Expense ratio, % | 17.4 | 17.2 | 1 | 18.2 | 17.2 | 6 |--------------------------------------------------------------------------------| Return on equity, % | -0.8 | 19.2 | - | - | - | - |--------------------------------------------------------------------------------| Average number of | 6,655 | 6,415 | 4 | - | - | - || staff (FTE) | | | | | | |-------------------------------------------------------------------------------- Profit before taxes for P&C insurance for the full year 2008 increased to EUR 549 million (534). Technical result was EUR 548 million (565). Of the technical result, business area Private accounted for 53 per cent, Commercial for 30 per cent, Industrial for 12 per cent and Baltic and Russia for 3 per cent. Insurancemargin (technical result in relation to net premiums earned) decreased slightly from previous year and was 14.3 per cent (14.8). Return on equity (RoE) was -0.8per cent (19.2). Fair value reserve decreased to EUR -414 million (0). Combined ratio for 2008 was significantly better than the long-term target of below 95 per cent and ended at 91.8 per cent (90.6). Combined ratios increased somewhat in both business areas Private and Commercial to 91.3 per cent (90.1) in Private and 92.4 per cent (90.8) in Commercial. The increase was mainly due to higher large claims as well as increased claims frequency cost mainly in Norway. In business area Industrial combined ratio improved to 93.4 per cent (94.1) due to more positive large claims outcome. In Baltic and Russia combined ratio increased to 92.6 per cent (90.8). The increase was mainly due to the inclusion of the Russian SOAO Region to If resulting in increased cost ratio. Gross written premiums decreased by 1 percent to EUR 4,057 million (4,085). Growth adjusted for currency was, however, 1 per cent and compared to the previous year, premiums increased in all business areas except in Industrial. The strongest growth was again seen in business area Baltic and Russia. Continued cost efficiency resulted in cost ratio remaining at the previous year's level of 23.7 per cent (23.7). The total costs remained at EUR 962 million (963). The inclusion of SOAO Region affected the cost ratio with 0.2 percentage points. Claims incurred increased to EUR 2,592 million (2,541) and risk ratio ended at 68.1 per cent (66.9) mainly due to a higher large claims cost during the first half of 2008. EUR 90 million (76) was released from the technical reserves relating to prior year claims. Reserve ratio was 177 percent (170) of net premiums written and 250 per cent (261) of claims paid. Net income from investments increased to EUR 268 million (211). Investment income includes EUR 76 million of impairment of financial assets. On 31 December2008 total investment assets amounted to EUR 9.0 billion (10.0) of which a record high 95 per cent (89) was invested in fixed income instruments, 5 per cent (10) in equity and 1 per cent (1) in other assets. Investment return for year 2008 was -3.1 per cent (2.6). Duration for interest bearing assets was 3.1 years (2.2). On 31 December 2008 solvency capital amounted to EUR 2,221 million (2,681). Solvency ratio (solvency capital in relation to net premiums written) was 66 percent (71). 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. --------------------------------------------------------------------------------| Results | | | Change | Q4 | Q4 | Change |--------------------------------------------------------------------------------| EURm | 2008 | 2007 | % | 2008 | 2007 | % |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Premiums written | 529 | 618 | -14 | 148 | 188 | -22 |--------------------------------------------------------------------------------| Net income from | -222 | 600 | - | -128 | 33 | - || investments | | | | | | |--------------------------------------------------------------------------------| Other operating | 0 | 0 | 0 | 0 | 0 | 0 || income | | | | | | |--------------------------------------------------------------------------------| Claims incurred | -763 | -653 | 17 | -140 | -155 | -10 |--------------------------------------------------------------------------------| Change in liabilities | 681 | -145 | - | 169 | -4 | - || for | | | | | | || inv. and ins. | | | | | | || contracts | | | | | | |--------------------------------------------------------------------------------| Staff costs | -23 | -20 | 17 | -6 | -5 | 20 |--------------------------------------------------------------------------------| Other operating | -51 | -50 | 2 | -15 | -12 | 18 || expenses | | | | | | |--------------------------------------------------------------------------------| Finance costs | -11 | -10 | 9 | -2 | -2 | -2 |--------------------------------------------------------------------------------| Profit before taxes | 140 | 342 | -59 | 26 | 44 | -40 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Key figures | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Expense ratio, % | 113.1 | 101.6 | 12 | - | - | - |--------------------------------------------------------------------------------| Return on equity, % | -68.8 | 9.1 | - | - | - | - |--------------------------------------------------------------------------------| Average number of | 437 | 384 | 14 | - | - | - || staff (FTE) | | | | | | |-------------------------------------------------------------------------------- Profit before taxes in life insurance for 2008 was EUR 140 million (342). Net investment income, excluding income on unit-linked contracts, amounted to EUR 263 million (543). Net income from unit-linked investments was EUR -485 million (57). The reduction in the fair value reserve from the beginning of the year wasEUR 481 million as the fair value reserve totalled at the end of December EUR -192 million. Return on equity (RoE) in life insurance fell below its target andwas -68.8 per cent (9.1). Excluding the assets of EUR 1.6 billion (2.1) covering unit-linked liabilities, Mandatum Life Group's investment assets amounted to EUR 4.7 billion (5.7) at market values on 31 December 2008. Fixed income covered 78 per cent (72), equity12 per cent (19), private equity 5 per cent (5), real estate 3 per cent (3) and other assets 2 per cent (2) of the total assets. In order to mitigate the interest rate risk, Mandatum Life has entered into interest rate swap agreements with nominal amounts of EUR 1.6 billion in 2008. Within these swaps, Mandatum Life pays short-term floating rate and receives fixed interest rate (average 4.6 per cent). The fair value of these swaps was EUR 75 million and they have a maturity of 2-10 years. Return on investments in 2008 was -7.8 per cent (5.0) due to the collapse of theequity markets. At the end of December 2008 the duration of fixed income assets was 3.6 years (1.9). Mandatum Life Group's solvency amounted EUR 384 million (846) on 31 December 2008 exceeding minimum requirements. Solvency ratio was 7.9 per cent (16.5). Total technical reserves were EUR 6.1 billion (6.7), of which unit-linked reserves accounted for 1.6 billion (2.1). The share of unit-linked reserves of total technical reserves decreased to 27 per cent (31). Investments made into new business concept and into the proprietary sales organization - some of them being one-time items - burdened the expense ratio. Mandatum Life Group's expense ratio was 113,1 per cent (101,6). The ratio does not take into account all fees intended to cover the operating expenses. If all fees are taken into account, the ratio decreases to 91.0 per cent (81.1). Mandatum Life Group's premium income on own account decreased to EUR 529 million(618). Premiums in the main focus area, unit-linked insurance, fell to EUR 287 million (404) and the share of unit-linked premiums was 54 per cent of total premiums (65). Especially unit-linked endowment policy sales lagged behind the previous year. In Finland Mandatum Life's overall market share measured by premium income was 19.3 per cent (19.8). The market share in its focus area unit-linked business was 21.5 per cent (22.4) due to difficult conditions on the market. Sampo Life Baltic's market share in the Baltics decreased to 11 per cent (15). Holding Sampo plc owns and controls its subsidiaries engaged in P&C and life insurance. In addition Sampo plc held on 31 December 2008 approximately 12 per cent of the share capital of Nordea, the largest bank in the Nordic countries, and had more than a billion euros in cash or equivalent on its balance sheet. --------------------------------------------------------------------------------| Results | | | Change | Q4 | Q4 | Change |--------------------------------------------------------------------------------| EURm | 2008 | 2007 | % | 2008 | 2007 | % |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Net investment income | 232 | 168 | 38 | 34 | 33 | 3 |--------------------------------------------------------------------------------| Other operating income | 8 | 8 | 0 | 5 | 3 | 39 |--------------------------------------------------------------------------------| Staff costs | -11 | -18 | -39 | -2 | -6 | -72 |--------------------------------------------------------------------------------| Other operating | -13 | -26 | -50 | -2 | -10 | -77 || expenses | | | | | | |--------------------------------------------------------------------------------| Finance costs | -37 | -38 | -3 | -9 | -9 | 0 |--------------------------------------------------------------------------------| Profit before taxes | 180 | 95 | 89 | 26 | 12 | 118 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Average number of | 53 | 56 | -5 | - | | - || staff (FTE) | | | | | - | |-------------------------------------------------------------------------------- The segment's profit before taxes amounted to EUR 180 million (95). The fair value reserve decreased during 2008 to EUR -1,759 million (26) as a result of the fall in Nordea's share price. The assets on Sampo plc's balance sheet on 31 December 2008 comprise investment assets of EUR 2.8 billion (4.9), of which fixed income instruments covered 39 per cent (44) and equities 61 per cent (56). On 6 February 2008 Sampo plc received a permission from the Swedish supervisory authorities to increase its holding above 10 per cent in Nordea, which is Sampo plc's largest equity holding. The market value of the holding was EUR 1.6 billion on 31 December 2008. Sampo plc held 313,202,100 Nordea shares and, in addition, Mandatum Life held 5,150,000 Nordea shares. Sampo Group's average acquisition price of Nordea share was EUR 10.60 per share. Closing price for Nordea on 30 December 2008 was EUR 5.07. Sampo plc's assets also include holdings in subsidiaries for EUR 2.4 billion (2.4). Balance sheet liabilities include a subordinated note with face value of EUR 600million which can be called in April 2009 at the earliest. DEVELOPMENTS IN THE FOURTH QUARTER OF 2008 Administration Sampo's Board of Directors nominated on 5 November Kari Stadigh as Group CEO andPresident starting on 8 April 2009. 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. Jukka Kurki was appointed as CFO and deputy for the Managing Director for Sampo plc's subsidiary Mandatum Life starting from 1 March 2009. Kurki has previously acted as Chief Actuary for Mandatum Life. Matti Rantanen, Deputy Managing Director, will retire from Mandatum Life in February 2009. Rantanen will continue as Managing Director for Mutual Insurance Company Kaleva. Kaleva cooperates closely with Mandatum Life. Staff The number of full-time equivalent staff increased in 2008 to 7,458 employees on31 December 2008 from 6,974 employees a year earlier. In P&C insurance the number of staff increased mostly in the Baltic and Russian operations. In life insurance the number of staff increased in Finland. 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. Geographically, 30 per cent worked in Finland, 25 per cent in Sweden, 22 per cent in Norway and 23 per cent in the Baltic countries and Russia, Denmark and other countries. The average number of employees during 2008 was 7,145 compared with 6,855 during 2007. Management incentive schemes The management incentive schemes in Sampo Group are of two types; long-term management incentive schemes and a share-based incentive scheme. The long-term management incentive schemes increased staff costs in the fourth quarter of 2008 by EUR 1 million (4) and on 31 December 2008 the total provisionfor the schemes was EUR 1 million (20). The 'Sampo 2006' share-based incentive scheme increased staff costs by EUR 0.4 million in the fourth quarter of 2008 (1) and on 31 December 2008 the provision for the scheme was EUR 5 million (5). Share capital 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 GlobalMarkets 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 capitalof Sampo plc. 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 corresponded to approximately 1.7 per cent of the total number of shares. Repurchases decreased 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, all in all EUR 115 million was paid for the shares. Shares were purchased from Exista hf. and its subsidiaries, because of the low transaction costs and the price lower than in public trading. At the time of thedecision the situation in the financial markets was exceptionally uncertain. In the Board's opinion the above purchase was in the interest of all shareholders. The purchase also prevented an overliquidity situation in the markets. On the basis of the above weighty financial reasons for repurchases referred to in the Companies Act existed. On 8 October 2008 Exista hf. notified Sampo in accordance with Chapter 2 Section9 of the Securities Market Act that Exista hf.'s holding in Sampo plc had fallenbelow 5 per cent of the shares and votes of Sampo plc and was 0 per cent on 7 October 2008. On 10 November 2008 the cancellation of Sampo A shares purchased from Exista's book built and the A shares purchased earlier, totalling 10,443,500 shares, was entered into the Trade Register. The shares represented 1.8 per cent of the total amount of shares and votes in the company. The cancellation reduced the number of Sampo A shares with the corresponding amount but had no effect on the share capital. On 22 October Sampo received a disclosure in accordance with Chapter 2 Section 9of the Securities Market Act regarding Sampo plc's shares. The State of Finland and the entirely state-owned Solidium Oy announced an arrangement which lead to a situation in which the holding of the State of Finland decreased below and theholding of Solidium Oy increased above the thresholds in Chapter 2, Section 9 ofthe Securities Markets Act. The transaction was completed on 11 December 2008 and Sampo plc received a disclosure, according to which the total number of Sampo A shares and related voting rights owned by the State of Finland fell on 11 December 2008 below one twentieth (1/20) and the total number of Sampo A shares and related voting rights owned by Solidium Oy rose above one tenth (1/10) of Sampo plc's entire stock and voting rights. After the transfer of the shares was completed on 11 December 2008 the State of Finland does not directly hold any Sampo shares and Solidium Oy owns 14.1 per cent of all Sampo shares and14.0 per cent of related voting rights. On 31 December 2008 Sampo plc had 561,372,390 shares, divided into 560,172,390 Ashares and 1,200,000 B shares. Sampo plc's share capital amounted to EUR 98 million (98) on 31 December 2008. At the end of the financial year, Sampo plc did not hold any of its own A sharesand the other Group companies held no shares in the parent company. Complete disclosures are available at www.sampo.com. Ratings In November 2008 Moody's changed If P&C's and Sampo plc's outlooks from positiveto stable. All the other main ratings for Sampo Group companies remained unchanged in 2008. --------------------------------------------------------------------------------| Rated company | Moody's | Standard and Poor's |--------------------------------------------------------------------------------| | Rating | Outlook | Rating | Outlook |--------------------------------------------------------------------------------| Sampo plc | Baa1 | Stable | Not rated | - |--------------------------------------------------------------------------------| If P&C Insurance | A2 | Stable | A | Stable || (Sweden) | | | | |--------------------------------------------------------------------------------| If P&C Insurance Co. | A2 | Stable | A | Stable || (Finland) | | | | |-------------------------------------------------------------------------------- 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 31 December 2008 was 433.6 per cent (774.6). --------------------------------------------------------------------------------| SAMPO GROUP SOLVENCY | 31 Dec 2008 | 31 Dec 2007 |--------------------------------------------------------------------------------| EURm | | |--------------------------------------------------------------------------------| Group capital | 4,631 | 7,733 |--------------------------------------------------------------------------------| Sectoral items | 391 | 855 |--------------------------------------------------------------------------------| Intangibles and other deductibles | -1,571 | -1,733 |--------------------------------------------------------------------------------| Group's own funds, total | 3,452 | 6,854 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Minimum requirements for own | 796 | 885 || funds, total | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Group solvency | 2,656 | 5,969 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Group solvency ratio | | |--------------------------------------------------------------------------------| (Own funds % of minimum | 433.6 | 774.6 || requirements) | | |-------------------------------------------------------------------------------- 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 timehorizon at a confidence level equalling the historic bond defaults of AA-rated issuers. The economic capital tied up in Group's operations on 31 December 2008 was EUR 2,585 million (3,395) at 99.97 per cent's confidence level. The upcoming Solvency II regulations will use a confidence level of 99.5 per cent. This wouldreduce the Economic Capital requirement in Sampo Group to EUR 1,895 million. OUTLOOK FOR 2009 2009 is likely to be a difficult year for the global economy. Due to the recessionary trends it may even turn out to be one of the weakest years for the global economy since the Second World War. Governments and central banks have set up plans to guarantee bank liabilities and injected significant amounts of capital into the financial system. It will take some time for these policies to have the desired effect. Inevitably the capital market conditions will leave their mark on Sampo Group's investment assets and the returns achieved. Sampo Group's result for 2009 will largely depend on the proceeds of the P&C insurance operation. The volatility ofcapital markets makes it impossible to estimate the return on investments at anylevel of accuracy. Profitability is expected to remain on a good level, however,because of the steady performance of the P&C insurance operations and the high yields expected on our fixed income portfolios. The macroeconomic situation will have a slight negative impact on premium growthin P&C insurance. As claims costs are also forecast to trend down, the insurancetechnical result of If P&C is not expected to suffer in 2009 from the economic downturn. If P&C is as usual expected to reach its long-term combined ratio target of below 95 per cent. Under current capital market conditions Mandatum Life Group is not expected to achieve the exceptionally high profits of the years 2006 and 2007. Sampo plc's profit will mostly consist of the dividends expected from Nordea in the second quarter of 2009. With its current asset composition Sampo plc's profit contribution will be small in the Group context. THE MOST SIGNIFICANT RISKS TO OPERATIONS Sampo as a diverse financial institution is exposed to variety of different risks, both financial and non-financial. The major risks associated with Sampo Group's activities in 2008 were insurance risks arising from P&C and Life insurance business areas, as well as market and credit risks arising from the Group's investment portfolios, including the investment assets of Sampo plc. Insurance businesses are based on the bearing of risks resulting from the randomness of insured events. Insurance risk is the risk that the cost of futureinsurance claims will be higher than anticipated. During 2008, Sampo Group's business risk profile in the insurance businesses remained relatively stable. The main risks related to Sampo Group's investment activities in 2008 were equity risk, interest rate risk and credit risk. Equity risk arises from the Group's equity portfolio amounting to EUR 2.7 billion (4.8), with a large concentration in the shares of Nordea. Interest rate risk is related to the Group's fixed income investments and insurance liabilities. The amount of the Group's fixed income investments decreased to EUR 13.2 billion (15.2) during 2008. Fixed income investments are exposed to interest rate risk as a rise in interest rates would decrease their value. On the other hand, a major interest rate risk in the life insurance business is that fixed income investments will not over a long period of time generate a return at least equal to the guaranteed return of technical provisions. This risk increases when market interest rates fall and remain at a low level. Fixed income investments also expose the Group to credit risks, the significance of which has increased duringthe year. Currency risk is the risk that Sampo Group will incur losses due to changes in foreign currency exchange rates. Market risk relating to foreign currency in Sampo plc consists of the translation risk linked to the net asset value and dividends of If P&C, and the currency risk related to Sampo plc's investment portfolio. Operational risks, such as failures in internal processes and systems, and business risks, such as changes in the economic environment or business cycle, are inherent in all business areas. The perceived risks in the businesses and operating environment did not change significantly during 2008. BOARD'S DIVIDEND PROPOSAL According to its dividend policy, Sampo plc aims to distribute an annual dividend corresponding to a dividend yield of 4-6 per cent. Dividends cannot, however, exceed reported profit after tax (excl. extraordinary items) for the calendar year for which the dividend is paid. Share buy-backs can be used to complement dividends. Parent company's distributable capital and reserves totalled EUR 3,061,299,568.16 of which profit for the financial year was EUR 554,584,670.63. The Board proposes to the Annual General Meeting a dividend of EUR 0.80 per share to company's 561,372,390 shares. The dividends to be paid are EUR 449,097,912 in total. Rest of the funds are left in the equity capital. The dividend will be paid to shareholders registered in the Register of Shareholders held by Finnish Central Securities Depository Ltd on the record date 14 April 2009. The Board proposes that the dividend will be paid on 21 April 2009. No significant changes have taken place in the company's financial position since the end of the financial year. The company's liquidity position is good and the proposed distribution does not, in the Board's view, jeopardize the company's ability to fulfil its obligations. 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 10516 0030 Maria Silander, Press Officer, +358 10 516 0031 Essi Nikitin, IR Manager, +358 10?516 0066 Sampo will arrange a Finnish language press conference on the 2008 results at The Palace, Etelaeranta 10, Sea Cabinet 10. floor, Helsinki, today at 1.30 p.m. Finnish time. An English-language telephone conference for investors and analysts will be held at 4 pm Finnish time (3 pm CET). Please call +44 (0)?20 7162 0025 (UK/European) or +1?334?323 6201 (North American). 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. In addition, a webcast of Group CEO and President Bjorn Wahlroos's review of developments in 2008 and supplementary information are available at www.sampo.com/ir. Sampo will publish the first quarter 2009 interim report on 6 May 2009 and the Annual Report 2008 in week 11. DISTRIBUTION: NASDAQ OMX Helsinki The principal media www.sampo.com Financial Supervisory Authority --------------------------------------------------------------------------------| GROUP FINANCIAL REVIEW | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| FINANCIAL HIGHLIGHTS | | 1-12/2008 | 1-12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| GROUP (1)) | | | |--------------------------------------------------------------------------------| Profit before taxes | EURm | 870 | 3 833 |--------------------------------------------------------------------------------| Return on equity (at fair value) | % | -32,4 | 52,6 |--------------------------------------------------------------------------------| Return on assets (at fair value) | % | -7,4 | 11,5 |--------------------------------------------------------------------------------| Equity/assets ratio | % | 21,9 | 30,5 |--------------------------------------------------------------------------------| Group solvency (2)) | EURm | 2 656 | 5 969 |--------------------------------------------------------------------------------| Group solvency ratio | % | 433,6 | 774,6 |--------------------------------------------------------------------------------| Average number of staff | | 7 145 | 6 855 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| PROPERTY & CASUALTY INSURANCE | | | |--------------------------------------------------------------------------------| Premiums written before reinsurers' | EURm | 4 057 | 4 085 || share | | | |--------------------------------------------------------------------------------| Premiums earned | EURm | 3 807 | 3 797 |--------------------------------------------------------------------------------| Profit before taxes | EURm | 549 | 534 |--------------------------------------------------------------------------------| Return on equity (at current value) | % | -0,8 | 19,2 |--------------------------------------------------------------------------------| Risk ratio (3)) | % | 68,1 | 66,9 |--------------------------------------------------------------------------------| Cost ratio (3)) | % | 23,7 | 23,7 |--------------------------------------------------------------------------------| Loss ratio (3)) | % | 76,0 | 74,9 |--------------------------------------------------------------------------------| Loss ratio excl. unwinding of discount | % | 74,4 | 73,4 || (3)) | | | |--------------------------------------------------------------------------------| Expense ratio (3)) | % | 17,4 | 17,2 |--------------------------------------------------------------------------------| Combined ratio | % | 93,4 | 92,1 |--------------------------------------------------------------------------------| Combined ratio excl. unwinding of | % | 91,8 | 90,6 || discount | | | |--------------------------------------------------------------------------------| Average number of staff | | 6 655 | 6 415 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| LIFE INSURANCE | | | |--------------------------------------------------------------------------------| Premiums written before reinsurers' | EURm | 536 | 622 || share | | | |--------------------------------------------------------------------------------| Profit before taxes | EURm | 140 | 342 |--------------------------------------------------------------------------------| Return on equity (at current value) | % | -68,8 | 9,1 |--------------------------------------------------------------------------------| Expense ratio | % | 113,1 | 101,6 |--------------------------------------------------------------------------------| Average number of staff | | 437 | 384 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| HOLDING | | | |--------------------------------------------------------------------------------| Profit before taxes | EURm | 180 | 95 |--------------------------------------------------------------------------------| Average number of staff | | 53 | 56 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| PER SHARE KEY FIGURES | | | |--------------------------------------------------------------------------------| Earnings per share | EUR | 1,18 | 6,18 |--------------------------------------------------------------------------------| Earnings per share, continuing | EUR | - | 1,25 || operations | | | |--------------------------------------------------------------------------------| Earnings per share, incl. change in | | | || fair value | | | |--------------------------------------------------------------------------------| reserve | EUR | -3,52 | 5,89 |--------------------------------------------------------------------------------| Earnings per share, incl. change in | | | || fair value | | | |--------------------------------------------------------------------------------| reserve, continuing operations | EUR | - | 0,95 |--------------------------------------------------------------------------------| Capital and reserves per share | EUR | 8,25 | 13,47 |--------------------------------------------------------------------------------| Net asset value per share | EUR | 8,28 | 13,49 |--------------------------------------------------------------------------------| Adjusted share price, high | EUR | 19,30 | 24,79 |--------------------------------------------------------------------------------| Adjusted share price, low | EUR | 11,42 | 17,95 |--------------------------------------------------------------------------------| Market capitalisation | EURm | 7 433 | 10 382 |-------------------------------------------------------------------------------- (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 (Financial Supervisory Authority from 1 Jan. 2009). (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 561,372,390 and the average number of shares during the period 569,442,122. The treasury shares held and cancelled by Sampo plc (17,158,500) during the financial year have been taken into account in the average number of shares. 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 assetvalue 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 regulationsand instructions of the Insurance Supervisory Authority (Financial Supervisory Authority from 1 Jan. 2009). --------------------------------------------------------------------------------| 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 | 10-12/ | 7-9/20 | 4-6/200 | 1-3/200 | 10-12/2 || | 2008 | 08 | 8 | 8 | 007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Continuing operations | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Insurance premiums written | 872 | 892 | 1 033 | 1 552 | 974 |--------------------------------------------------------------------------------| Net income from investments | -6 | 36 | 243 | 2 | 75 |--------------------------------------------------------------------------------| Other operating income | 11 | 5 | 1 | 6 | 8 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Claims incurred | -761 | -865 | -825 | -904 | -789 |--------------------------------------------------------------------------------| Change in liabilities for | 367 | 443 | 97 | -241 | 180 || insurance and investment | | | | | || contracts | | | | | |--------------------------------------------------------------------------------| Staff costs | -120 | -127 | -127 | -119 | -117 |--------------------------------------------------------------------------------| Other operating expenses | -140 | -127 | -130 | -135 | -155 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Finance costs | -16 | -16 | -12 | -22 | -17 |--------------------------------------------------------------------------------| Share of associates' | 0 | 0 | 0 | 2 | 1 || profit/loss | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit from continuing | 206 | 242 | 279 | 142 | 160 || operations before taxes | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Taxes | -53 | -67 | -39 | -37 | -46 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit from continuing | 153 | 175 | 241 | 106 | 113 || operations | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Discontinued operations | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit from discontinued | - | - | - | - | 0 || operations | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit for the period | 153 | 175 | 241 | 106 | 113 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Attributable to | | | | | |--------------------------------------------------------------------------------| Equity holders of parent | 153 | 175 | 241 | 106 | 113 || company | | | | | |--------------------------------------------------------------------------------| Minority interest | 0 | 0 | 0 | 0 | 0 |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| CONSOLIDATED INCOME STATEMENT | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| EURm | Note | 1-12/2008 | 1-12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Continuing operations | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Insurance premiums written | 1 | 4 350 | 4 458 |--------------------------------------------------------------------------------| Net income from investments | 2 | 275 | 974 |--------------------------------------------------------------------------------| Other operating income | | 23 | 25 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Claims incurred | 3 | -3 355 | -3 195 |--------------------------------------------------------------------------------| Change in liabilities for insurance and | | 667 | -188 || investment contracts | | | |--------------------------------------------------------------------------------| Staff costs | 4 | -494 | -479 |--------------------------------------------------------------------------------| Other operating expenses | | -532 | -558 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Finance costs | | -66 | -67 |--------------------------------------------------------------------------------| Share of associates' profit/loss | | 2 | 3 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit from continuing operations | | 870 | 974 || before taxes | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Taxes | | -195 | -254 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit from continuing operations | | 675 | 720 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Discontinued operations | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit from discontinued operations | | - | 2 853 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit for the period | | 675 | 3 573 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Attributable to | | | |--------------------------------------------------------------------------------| Equity holders of parent company | | 675 | 3 572 |--------------------------------------------------------------------------------| Minority interest | | 0 | 0 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Earning per share (eur) | | 1,18 | 6,18 |--------------------------------------------------------------------------------| Basic, continuing operations | | 1,18 | 1,25 |--------------------------------------------------------------------------------| Basic, discontinued operations | | - | 4,94 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| CONSOLIDATED BALANCE SHEET | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| EURm | Note | 12/2008 | 12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Assets | | | |--------------------------------------------------------------------------------| Property, plant and equipment | | 38 | 40 |--------------------------------------------------------------------------------| Investment property | | 138 | 158 |--------------------------------------------------------------------------------| Intangible assets | 5 | 663 | 718 |--------------------------------------------------------------------------------| Investments in associates | | 5 | 9 |--------------------------------------------------------------------------------| Financial assets | 6, 7 | 16 139 | 19 575 |--------------------------------------------------------------------------------| Investments related to unit-linked | 8 | 1 637 | 2 072 || insurance contracts | | | |--------------------------------------------------------------------------------| Tax assets | | 212 | 89 |--------------------------------------------------------------------------------| Reinsurers' share of insurance | | 436 | 489 || liabilities | | | |--------------------------------------------------------------------------------| Other assets | | 1 473 | 1 316 |--------------------------------------------------------------------------------| Cash and cash equivalents | | 465 | 958 |--------------------------------------------------------------------------------| Total assets | | 21 205 | 25 424 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Liabilities | | | |--------------------------------------------------------------------------------| Liabilities for insurance and | 9 | 12 375 | 13 148 || investment contracts | | | |--------------------------------------------------------------------------------| Liabilities for unit-linked insurance | 10 | 1 637 | 2 071 || and investment contracts | | | |--------------------------------------------------------------------------------| Financial liabilities | 11 | 1 269 | 1 102 |--------------------------------------------------------------------------------| Tax liabilities | | 441 | 562 |--------------------------------------------------------------------------------| Provisions | | 26 | 35 |--------------------------------------------------------------------------------| Employee benefits | | 92 | 118 |--------------------------------------------------------------------------------| Other liabilities | | 732 | 655 |--------------------------------------------------------------------------------| Total liabilities | | 16 573 | 17 691 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Equity | | | |--------------------------------------------------------------------------------| Share capital | | 98 | 98 |--------------------------------------------------------------------------------| Reserves | | -832 | 1 847 |--------------------------------------------------------------------------------| Retained earnings | | 5 365 | 5 788 |--------------------------------------------------------------------------------| Equity attributable to parent company's | | 4 631 | 7 733 || equityholders | | | |--------------------------------------------------------------------------------| Minority interest | | 0 | 0 |--------------------------------------------------------------------------------| Total equity | | 4 631 | 7 733 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Total equity and liabilities | | 21 205 | 25 424 |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| STATEMENTS OF | | | | | | | | || CHANGES IN | | | | | | | | || EQUITY, IFRS | | | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| | Equity attributable to equity holders of | Minor | || | parent company | ity | || | | inter | || | | est | |--------------------------------------------------------------------------------| EURm | Shar | Shar | Lega | Fair | Retai | Total | | Total || | e | e | l | valu | ned | | | || | capi | prem | rese | e | earni | | | || | tal | ium | rve | rese | ngs | | | || | | acco | | rve | | | | || | | unt | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Equity at 1 Jan. | 95 | 1 | 370 | 486 | 3 061 | 5 168 | 21 | 5 189 || 2007 | | 157 | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Items of equity | | 0 | 0 | 3 | -3 | -1 | -22 | -22 || of disposed | | | | | | | | || operations | | | | | | | | |--------------------------------------------------------------------------------| Financial assets | | | | | | | | || available-for-sa | | | | | | | | || le | | | | | | | | |--------------------------------------------------------------------------------| - recognised in | | | | 6 | | 6 | | 6 || equity | | | | | | | | |--------------------------------------------------------------------------------| - recognised in | | | | -238 | | -238 | | -238 || p/l | | | | | | | | |--------------------------------------------------------------------------------| Exchange rate | | | | | -74 | -74 | | -74 || translation | | | | | | | | || difference | | | | | | | | |--------------------------------------------------------------------------------| Income tax | | | | 60 | | 60 | | 60 || related to items | | | | | | | | || recognised in | | | | | | | | || equity or | | | | | | | | || transferred to | | | | | | | | || p/l | | | | | | | | |--------------------------------------------------------------------------------| Net income | - | - | - | -169 | -78 | -246 | -22 | -268 || recognised in | | | | | | | | || equity | | | | | | | | |--------------------------------------------------------------------------------| Profit for | | | | | 3 572 | 3 572 | 0 | 3 573 || period | | | | | | | | |--------------------------------------------------------------------------------| Total income and | | - | - | -169 | 3 495 | 3 326 | -21 | 3 305 || expenses | | | | | | | | || recognised for | | | | | | | | || the period | | | | | | | | |--------------------------------------------------------------------------------| Dividends | | | | | -693 | -693 | | -693 |--------------------------------------------------------------------------------| Subscription for | 3 | 4 | | | | 6 | | 6 || shares with | | | | | | | | || options | | | | | | | | |--------------------------------------------------------------------------------| Share-based | | | | | 0 | 0 | | 0 || payments | | | | | | | | |--------------------------------------------------------------------------------| Acquisition of | | | | | -81 | -81 | | -81 || treasury shares | | | | | | | | |--------------------------------------------------------------------------------| Recognition of | | | | | 6 | 6 | | 6 || undrawn | | | | | | | | || dividends | | | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Equity at 31 | 98 | 1 | 370 | 317 | 5 788 | 7 733 | 0 | 7 733 || Dec. 2007 | | 160 | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Financial assets | | | | | | | | || available-for-sa | | | | | | | | || le | | | | | | | | |--------------------------------------------------------------------------------| - recognised in | | | | -3 | | -3 | | -3 || equity | | | | 116 | | 116 | | 116 |--------------------------------------------------------------------------------| - recognised in | | | | 87 | | 87 | | 87 || p/l | | | | | | | | |--------------------------------------------------------------------------------| Cash flow hedges | | | | | | | | |--------------------------------------------------------------------------------| - recognised in | | | | 15 | | 15 | | 15 || equity | | | | | | | | |--------------------------------------------------------------------------------| - recognised in | | | | - | | - | | - || p/l | | | | | | | | |--------------------------------------------------------------------------------| Exchange rate | | 1 | | | -249 | -248 | | -248 || translation | | | | | | | | || difference | | | | | | | | |--------------------------------------------------------------------------------| Income tax | | | | 333 | | 333 | | 333 || related to items | | | | | | | | || recognised in | | | | | | | | || equity or | | | | | | | | || transferred to | | | | | | | | || p/l | | | | | | | | |--------------------------------------------------------------------------------| Net income | - | 1 | - | -2 | -249 | -2 | - | -2 || recognised in | | | | 681 | | 928 | | 928 || equity | | | | | | | | |--------------------------------------------------------------------------------| Profit for | | | | | 675 | 675 | 0 | 675 || period | | | | | | | | |--------------------------------------------------------------------------------| Total income and | - | 1 | - | -2 | 426 | -2 | 0 | -2 || expenses | | | | 681 | | 254 | | 254 || recognised for | | | | | | | | || the period | | | | | | | | |--------------------------------------------------------------------------------| Dividends | | | | | -686 | -686 | | -686 |--------------------------------------------------------------------------------| Share-based | | | | | 3 | 3 | | 3 || payments | | | | | | | | |--------------------------------------------------------------------------------| Acquisition of | | | | | -167 | -167 | | -167 || treasury shares | | | | | | | | |--------------------------------------------------------------------------------| Recognition of | | | | | 3 | 3 | | 3 || undrawn | | | | | | | | || dividends | | | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Equity at 31 | 98 | 1 | 370 | -2 | 5 365 | 4 631 | 0 | 4 631 || Dec. 2008 | | 161 | | 364 | | | | |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| STATEMENT OF CASH FLOWS | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| | 1-12/2008 | 1-12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Cash and cash equivalent at the beginning of | 971 | 2 016 || the period | | |--------------------------------------------------------------------------------| Cash flow from/used in operating activities | 790 | -235 |--------------------------------------------------------------------------------| Cash flow from/used in investing activities | -451 | 598 |--------------------------------------------------------------------------------| Cash flow from/used in financing activities | -845 | -1 421 |--------------------------------------------------------------------------------| Paid dividends | -678 | -693 |--------------------------------------------------------------------------------| Subscription for shares with options | - | 6 |--------------------------------------------------------------------------------| Acquisition of own shares | -167 | -81 |--------------------------------------------------------------------------------| Increase of liabilities | - | 742 |--------------------------------------------------------------------------------| Decrease of liabilities | - | -1 395 |--------------------------------------------------------------------------------| Cash and cash equivalent at the end of the | 465 | 958 || period | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| The net cash flows of discontinued operations | 1-12/2008 | 1-12/2007 |--------------------------------------------------------------------------------| 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 andfinancing 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 3months). 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 | | | | | || TWELVE MONTHS ENDED 31 | | | | | || DECEMBER 2008 | | | | | |--------------------------------------------------------------------------------| EURm | P&C | Life | Holding | Elimina- | Group || | insuranc | insuran | | tion | || | e | ce | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Insurance premius | 3 821 | 529 | - | - | 4 350 || written | | | | | |--------------------------------------------------------------------------------| Net income from | 268 | -222 | 232 | -3 | 275 || investments | | | | | |--------------------------------------------------------------------------------| Other operating income | 26 | 0 | 8 | -11 | 23 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Claims incurred | -2 592 | -763 | - | - | -3 355 |--------------------------------------------------------------------------------| Change in liabilities | -14 | 681 | - | - | 667 || for insurance and | | | | | || investment contracts | | | | | |--------------------------------------------------------------------------------| Staff costs | -460 | -23 | -11 | - | -494 |--------------------------------------------------------------------------------| Other operating expenses | -473 | -51 | -13 | 4 | -532 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Finance costs | -29 | -11 | -37 | 10 | -66 |--------------------------------------------------------------------------------| Share of associates' | 2 | 0 | 0 | - | 2 || profit/loss | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit before taxes | 549 | 140 | 180 | 1 | 870 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Taxes | | | | | -195 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit for the period | | | | | 675 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Attributable to | | | | | |--------------------------------------------------------------------------------| Equity holders of parent | | | | | 675 || company | | | | | |--------------------------------------------------------------------------------| Minority interest | | | | | 0 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| CONSOLIDATED INCOME | | | | | || STATEMENT BY SEGMENT FOR | | | | | || TWELVE MONTHS ENDED 31 | | | | | || DECEMBER 2007 | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| EURm | P&C | Life | Holding | Elimina- | Group || | insuranc | insuran | | tion | || | e | ce | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Insurance premius | 3 840 | 618 | - | - | 4 458 || written | | | | | |--------------------------------------------------------------------------------| Net income from | 211 | 600 | 168 | -5 | 974 || investments | | | | | |--------------------------------------------------------------------------------| Other operating income | 29 | 0 | 8 | -13 | 25 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Claims incurred | -2 541 | -653 | - | - | -3 195 |--------------------------------------------------------------------------------| Change in liabilities | -43 | -145 | - | - | -188 || for insurance and | | | | | || investment contracts | | | | | |--------------------------------------------------------------------------------| Staff costs | -441 | -20 | -18 | - | -479 |--------------------------------------------------------------------------------| Other operating expenses | -493 | -50 | -26 | 11 | -558 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Finance costs | -29 | -10 | -38 | 10 | -67 |--------------------------------------------------------------------------------| Share of associates' | 1 | 1 | 1 | - | 3 || profit/loss | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit from continuing | 534 | 342 | 95 | 3 | 974 || operations before taxes | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Taxes | | | | | -254 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit from continuing | | | | | 720 || operations | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit from discontinued | | | | | 2 853 || operations | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit for the period | | | | | 3 573 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Attributable to | | | | | |--------------------------------------------------------------------------------| Equity holders of parent | | | | | 3 572 || company | | | | | |--------------------------------------------------------------------------------| Minority interest | | | | | 0 |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| CONSOLIDATED BALANCE | | | | | || SHEET BY SEGMENT AT 31 | | | | | || DECEMBER 2008 | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| EURm | P&C | Life | Holding | Elimina- | Group || | insuran | insuranc | | tion | || | ce | e | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Assets | | | | | |--------------------------------------------------------------------------------| Property, plant and | 27 | 5 | 5 | - | 38 || equipment | | | | | |--------------------------------------------------------------------------------| Investment property | 28 | 100 | 10 | - | 138 |--------------------------------------------------------------------------------| Intangible assets | 495 | 167 | 0 | - | 663 |--------------------------------------------------------------------------------| Investments in associates | 3 | 2 | 0 | - | 5 |--------------------------------------------------------------------------------| Financial assets | 8 874 | 4 503 | 5 260 | -2 498 | 16 139 |--------------------------------------------------------------------------------| Investments related to | - | 1 637 | - | - | 1 637 || unit-linked insurance | | | | | || contracts | | | | | |--------------------------------------------------------------------------------| Tax assets | 144 | 62 | 6 | 0 | 212 |--------------------------------------------------------------------------------| Reinsurers' share of | 431 | 4 | - | - | 436 || insurance liabilities | | | | | |--------------------------------------------------------------------------------| Other assets | 1 176 | 270 | 54 | -27 | 1 473 |--------------------------------------------------------------------------------| Cash and cash equivalents | 259 | 171 | 35 | - | 465 |--------------------------------------------------------------------------------| Total assets | 11 437 | 6 922 | 5 370 | -2 525 | 21 205 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Liabilities | | | | | |--------------------------------------------------------------------------------| Liabilities for insurance | 7 889 | 4 487 | - | - | 12 375 || and investment contracts | | | | | |--------------------------------------------------------------------------------| Liabilities for | - | 1 637 | - | - | 1 637 || unit-linked insurance and | | | | | || investment contracts | | | | | |--------------------------------------------------------------------------------| Financial liabilities | 686 | 104 | 604 | -125 | 1 269 |--------------------------------------------------------------------------------| Tax liabilities | 379 | 54 | 9 | - | 441 |--------------------------------------------------------------------------------| Provisions | 26 | - | - | - | 26 |--------------------------------------------------------------------------------| Employee benefits | 92 | - | - | - | 92 |--------------------------------------------------------------------------------| Other liabilities | 444 | 242 | 73 | -27 | 732 |--------------------------------------------------------------------------------| Total liabilities | 9 516 | 6 523 | 686 | -152 | 16 573 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Equity | | | | | |--------------------------------------------------------------------------------| Share capital | | | | | 98 |--------------------------------------------------------------------------------| Reserves | | | | | -832 |--------------------------------------------------------------------------------| Retained earnings | | | | | 5 365 |--------------------------------------------------------------------------------| Equity attributable to | | | | | 4 631 || parent company's | | | | | || equityholders | | | | | |--------------------------------------------------------------------------------| Minority interest | | | | | 0 |--------------------------------------------------------------------------------| Total equity | | | | | 4 631 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Total equity and | | | | | 21 205 || 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 | | |--------------------------------------------------------------------------------| | 1-12/2008 | 1-12/2007 |--------------------------------------------------------------------------------| Premiums from insurance contracts | | |--------------------------------------------------------------------------------| Premiums written, direct insurance | 3 967 | 4 000 |--------------------------------------------------------------------------------| Premiums written, assumed reinsurance | 90 | 85 |--------------------------------------------------------------------------------| Premiums written, gross | 4 057 | 4 085 |--------------------------------------------------------------------------------| Ceded reinsurance premiums written | -236 | -245 |--------------------------------------------------------------------------------| P&C Insurance, total | 3 821 | 3 840 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Change in unearned premium provision | -12 | -43 |--------------------------------------------------------------------------------| Reinsurers' share | -2 | 0 |--------------------------------------------------------------------------------| Premiums earned for P&C Insurance, total | 3 807 | 3 797 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | | |--------------------------------------------------------------------------------| | 1-12/2008 | 1-12/2007 |--------------------------------------------------------------------------------| Premiums from insurance contracts | | |--------------------------------------------------------------------------------| Premiums from contracts with discretionary | 242 | 211 || participation feature | | |--------------------------------------------------------------------------------| Premiums from unit-linked contracts | 240 | 388 |--------------------------------------------------------------------------------| Premiums from other contracts | 5 | 7 |--------------------------------------------------------------------------------| Insurance contracts, total | 487 | 607 |--------------------------------------------------------------------------------| Assumed reinsurance | 2 | 2 |--------------------------------------------------------------------------------| Premiums from investment contracts | | |--------------------------------------------------------------------------------| Premiums from contracts with discretionary | 0 | 1 || participation feature | | |--------------------------------------------------------------------------------| Premiums from unit-linked contracts | 47 | 15 |--------------------------------------------------------------------------------| Investment contracts, total | 47 | 15 |--------------------------------------------------------------------------------| Reinsurers' shares | -7 | -6 |--------------------------------------------------------------------------------| Life insurance, total | 529 | 618 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Single and regular premiums from direct | | || insurance | | |--------------------------------------------------------------------------------| Regular premiums, insurance contracts | 365 | 404 |--------------------------------------------------------------------------------| Single premiums, insurance contracts | 121 | 202 |--------------------------------------------------------------------------------| Single premiums, investment contracts | 47 | 15 |--------------------------------------------------------------------------------| Total | 534 | 622 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Group, total | 4 350 | 4 458 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| 2 NET INCOME FROM INVESTMENTS | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C Insurance | | |--------------------------------------------------------------------------------| | 1-12/2008 | 1-12/2007 |--------------------------------------------------------------------------------| Financial assets | | |--------------------------------------------------------------------------------| Derivative financial instruments | 83 | 35 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Financial assets designated as at fair value | | || through p/l | | |--------------------------------------------------------------------------------| Debt securities | 21 | 281 |--------------------------------------------------------------------------------| Equity securities | -131 | -70 |--------------------------------------------------------------------------------| Total | -109 | 210 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Loans and receivables | 25 | 27 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Financial asset available-for-sale | | |--------------------------------------------------------------------------------| Debt securities | 345 | - |--------------------------------------------------------------------------------| Equity securities | 11 | - |--------------------------------------------------------------------------------| Total | 356 | - |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Total financial assets | 357 | 273 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Income from other assets | 1 | 5 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Fee and commission expense | -12 | -10 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Interest expense on repurchase agreements | -16 | - |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Effect of discounting annuities | -60 | -56 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance, total | 268 | 211 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | | |--------------------------------------------------------------------------------| | 1-12/2008 | 1-12/2007 |--------------------------------------------------------------------------------| Financial assets | | |--------------------------------------------------------------------------------| Derivative financial instruments | 59 | 45 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Financial assets designated as at fair value | | || through p/l | | |--------------------------------------------------------------------------------| Debt securities | -5 | 0 |--------------------------------------------------------------------------------| Equity securities | -1 | 0 |--------------------------------------------------------------------------------| Total | -6 | 0 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Investments related to unit-linked contracts | | |--------------------------------------------------------------------------------| Debt securities | 0 | -4 |--------------------------------------------------------------------------------| Equity securities | -486 | 61 |--------------------------------------------------------------------------------| Loans and receivables | 1 | - |--------------------------------------------------------------------------------| Other financial assets | 1 | - |--------------------------------------------------------------------------------| Total | -485 | 57 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Investment securities held-to-maturity | | |--------------------------------------------------------------------------------| Debt securities | 0 | 1 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Loans and receivables | -1 | 2 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Financial asset available-for-sale | | |--------------------------------------------------------------------------------| Debt securities | 103 | 116 |--------------------------------------------------------------------------------| Equity securities | 92 | 361 |--------------------------------------------------------------------------------| Total | 194 | 477 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Total income from financial assets | -239 | 583 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Other assets | 7 | 5 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Fee and commission income, net | 10 | 12 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance, total | -222 | 600 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Holding | | |--------------------------------------------------------------------------------| | 1-12/2008 | 1-12/2007 |--------------------------------------------------------------------------------| Financial assets | | |--------------------------------------------------------------------------------| Derivative financial instruments | 14 | 2 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Loans and other receivables | 6 | 3 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Financial assets available-for-sale | | |--------------------------------------------------------------------------------| Debt securities | 76 | 123 |--------------------------------------------------------------------------------| Equity securities | 137 | 42 |--------------------------------------------------------------------------------| Total | 213 | 165 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Other assets | 0 | -2 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Fee expense | -1 | 0 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Holding, total | 232 | 168 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Elimination items between segments | -3 | -5 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Group, total | 275 | 974 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| 3 CLAIMS | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance | 1-12/2008 | 1-12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Claims paid | -2 522 | -2 332 |--------------------------------------------------------------------------------| Reinsurers' share | 122 | 134 |--------------------------------------------------------------------------------| Claims paid, net | -2 400 | -2 198 |--------------------------------------------------------------------------------| Change in provision for claims outstanding | -187 | -328 |--------------------------------------------------------------------------------| Reinsurers' share | -5 | -15 |--------------------------------------------------------------------------------| P&C Insurance total | -2 592 | -2 541 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | 1-12/2008 | 1-12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Claims paid | -652 | -559 |--------------------------------------------------------------------------------| Reinsurers' share | 4 | 5 |--------------------------------------------------------------------------------| Claims paid, net | -648 | -554 |--------------------------------------------------------------------------------| Change in provision for claims outstanding | -116 | -100 |--------------------------------------------------------------------------------| Reinsurers' share | 1 | 0 |--------------------------------------------------------------------------------| Life insurance, total | -763 | -653 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Group, total | -3 355 | -3 195 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| 4 STAFF COSTS | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance | 1-12/2008 | 1-12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Wages and salaries | -328 | -311 |--------------------------------------------------------------------------------| Granted equity-settled share options | -1 | -1 |--------------------------------------------------------------------------------| Granted cash-settled share options | -1 | -1 |--------------------------------------------------------------------------------| Pension costs | -64 | -67 |--------------------------------------------------------------------------------| Other social security costs | -65 | -62 |--------------------------------------------------------------------------------| P&C insurance, total | -460 | -441 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | 1-12/2008 | 1-12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Wages and salaries | -18 | -16 |--------------------------------------------------------------------------------| Granted equity-settled share options | 0 | 0 |--------------------------------------------------------------------------------| Granted cash-settled share options | 0 | 0 |--------------------------------------------------------------------------------| Pension costs | -3 | -2 |--------------------------------------------------------------------------------| Other social security costs | -1 | -2 |--------------------------------------------------------------------------------| Life insurance, total | -23 | -20 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Holding | 1-12/2008 | 1-12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Wages and salaries | -7 | -7 |--------------------------------------------------------------------------------| Granted equity-settled share options | -2 | -5 |--------------------------------------------------------------------------------| Granted cash-settled share options | 0 | 0 |--------------------------------------------------------------------------------| Pension costs | -2 | -6 |--------------------------------------------------------------------------------| Other social security costs | -1 | -1 |--------------------------------------------------------------------------------| Holding, total | -11 | -18 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Group, total | -494 | -479 |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| 5 INTANGIBLE ASSETS | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance | 12/2008 | 12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Goodwill | 479 | 530 |--------------------------------------------------------------------------------| Customer relations | 13 | 21 |--------------------------------------------------------------------------------| Other intangible assets | 4 | 3 |--------------------------------------------------------------------------------| P&C Insurance, total | 495 | 554 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | 12/2008 | 12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Goodwill | 153 | 153 |--------------------------------------------------------------------------------| Other intangible assets | 14 | 11 |--------------------------------------------------------------------------------| Life insurance, total | 167 | 164 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Holding | 12/2008 | 12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Other intangible assets | 0 | 0 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Group, total | 663 | 718 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| 6 FINANCIAL ASSETS | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance | | |--------------------------------------------------------------------------------| | 12/2008 | 12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Derivative financial instruments (Note 7) | 362 | 182 |--------------------------------------------------------------------------------| Financial assets designated as at fair value | | || through p/l | | |--------------------------------------------------------------------------------| Debt securities | 333 | 8 272 |--------------------------------------------------------------------------------| Equity securities | 22 | 1 011 |--------------------------------------------------------------------------------| Total | 355 | 9 283 |--------------------------------------------------------------------------------| Loans and receivables | | |--------------------------------------------------------------------------------| Loans | 0 | - |--------------------------------------------------------------------------------| Deposits with ceding undertakings | 1 | 2 |--------------------------------------------------------------------------------| Total | 1 | 2 |--------------------------------------------------------------------------------| Financial assets available-for-sale | | |--------------------------------------------------------------------------------| Debt securities | 7 671 | - |--------------------------------------------------------------------------------| Equity securities | 484 | - |--------------------------------------------------------------------------------| Total | 8 155 | - |--------------------------------------------------------------------------------| P&C insurance, total | 8 874 | 9 467 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | | |--------------------------------------------------------------------------------| | 12/2008 | 12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Derivative financial instruments (Note 7) | 108 | 10 |--------------------------------------------------------------------------------| Financial assets designated as at fair value | | || through p/l | | |--------------------------------------------------------------------------------| Debt securities | 40 | 42 |--------------------------------------------------------------------------------| Equity securities | 1 | 5 |--------------------------------------------------------------------------------| Total | 41 | 47 |--------------------------------------------------------------------------------| Investments held-to-maturity | | |--------------------------------------------------------------------------------| Debt securities | 1 | 8 |--------------------------------------------------------------------------------| Loans and receivables | | |--------------------------------------------------------------------------------| Loans | 4 | - |--------------------------------------------------------------------------------| Deposits | - | 2 |--------------------------------------------------------------------------------| Deposits with ceding undertakings | 2 | 2 |--------------------------------------------------------------------------------| Total | 5 | 4 |--------------------------------------------------------------------------------| Financial assets available-for-sale | | |--------------------------------------------------------------------------------| Debt securities | 3 173 | 3 679 |--------------------------------------------------------------------------------| Equity securities *) | 1 175 | 1 707 |--------------------------------------------------------------------------------| Total | 4 348 | 5 387 |--------------------------------------------------------------------------------| Life insurance, total | 4 503 | 5 456 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| *) of which investments in interest funds | 213 | 276 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Holding | | |--------------------------------------------------------------------------------| | 12/2008 | 12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Derivative financial instruments (Note 7) | 0 | 0 |--------------------------------------------------------------------------------| Loans and receivables | | |--------------------------------------------------------------------------------| Deposits | 1 | 1 |--------------------------------------------------------------------------------| Financial assets available-for-sale | | |--------------------------------------------------------------------------------| Debt securities | 1 184 | 2 023 |--------------------------------------------------------------------------------| Equity securities | 1 705 | 2 758 |--------------------------------------------------------------------------------| Total | 2 890 | 4 781 |--------------------------------------------------------------------------------| Investments in subsidiaries | 2 370 | 2 370 |--------------------------------------------------------------------------------| Holding, total | 5 260 | 7 151 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Elimination items between segments | -2 498 | -2 499 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Group, total | 16 139 | 19 575 |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| 7 DERIVATIVE FINANCIAL | | | | | | || INSTRUMENTS | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance | | 12/20 | | | 12/200 | || | | 08 | | | 7 | |--------------------------------------------------------------------------------| | | Fair | Fair | | Fair | Fair || | | value | value | | value | value |--------------------------------------------------------------------------------| | Contr | Asset | Liabili | Contra | Assets | Liabili || | act/ | s | ties | ct/ | | ties || | notio | | | notion | | || | nal | | | al | | || | amoun | | | amount | | || | t | | | | | |--------------------------------------------------------------------------------| Derivatives held for | | | | | | || trading | | | | | | |--------------------------------------------------------------------------------| Interest rate | 78 | 19 | 4 | 6 368 | 24 | 7 || derivatives | | | | | | |--------------------------------------------------------------------------------| Foreign exchange | 4 977 | 343 | 247 | 5 963 | 159 | 82 || derivatives | | | | | | |--------------------------------------------------------------------------------| Equity derivatives | 0 | 0 | 0 | 68 | 0 | 0 |--------------------------------------------------------------------------------| P&C Insurance, total | 5 055 | 362 | 251 | 12 399 | 182 | 90 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | | 12/20 | | | 12/200 | || | | 08 | | | 7 | |--------------------------------------------------------------------------------| | | Fair | Fair | | Fair | Fair || | | value | value | | value | value |--------------------------------------------------------------------------------| | Contr | Asset | Liabili | Contra | Assets | Liabili || | act/ | s | ties | ct/ | | ties || | notio | | | notion | | || | nal | | | al | | || | amoun | | | amount | | || | t | | | | | |--------------------------------------------------------------------------------| Derivatives held for | | | | | | || trading | | | | | | |--------------------------------------------------------------------------------| Interest rate | 1 062 | 58 | 0 | 475 | 1 | 0 || derivatives | | | | | | |--------------------------------------------------------------------------------| Foreign exchange | 585 | 17 | 4 | 541 | 7 | 1 || derivatives | | | | | | |--------------------------------------------------------------------------------| Equity derivatives | 0 | 0 | 0 | 59 | 2 | 0 |--------------------------------------------------------------------------------| Total | 1 647 | 75 | 4 | 1 075 | 10 | 1 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Derivatives held for | | | | | | || hedging | | | | | | |--------------------------------------------------------------------------------| Cash flow hedges | 829 | 15 | - | - | - | - |--------------------------------------------------------------------------------| Fair value hedges | 226 | 18 | - | - | - | - |--------------------------------------------------------------------------------| Total | 1 055 | 33 | - | - | - | - |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance, total | 2 702 | 108 | 4 | 1 075 | 10 | 1 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Holding | | 12/20 | | | 12/200 | || | | 08 | | | 7 | |--------------------------------------------------------------------------------| | | Fair | Fair | | Fair | Fair || | | value | value | | value | value |--------------------------------------------------------------------------------| | Contr | Asset | Liabili | Contra | Assets | Liabili || | act/ | s | ties | ct/ | | ties || | notio | | | notion | | || | nal | | | al | | || | amoun | | | amount | | || | t | | | | | |--------------------------------------------------------------------------------| Derivatives held for | | | | | | || trading | | | | | | |--------------------------------------------------------------------------------| Equity derivatives | - | - | - | 4 | 0 | 0 |--------------------------------------------------------------------------------| Exchange derivatives | 70 | 0 | 0 | - | - | - |--------------------------------------------------------------------------------| | 70 | 0 | 0 | 4 | 0 | 0 |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| 8 INVESTMENTS RELATED TO UNIT-LINKED INSURANCE | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | | |--------------------------------------------------------------------------------| | 12/2008 | 12/2007 |--------------------------------------------------------------------------------| Financial assets as at fair value through p/l | | |--------------------------------------------------------------------------------| Debt securities | 121 | 75 |--------------------------------------------------------------------------------| Equity securities | 1 477 | 1 997 |--------------------------------------------------------------------------------| Loans and receivables | 38 | - |--------------------------------------------------------------------------------| Derivatives | 1 | - |--------------------------------------------------------------------------------| Life insurance, total | 1 637 | 2 072 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| 9 LIABILITIES FOR INSURANCE AND INVESTMENT | | || CONTRACTS | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance | | |--------------------------------------------------------------------------------| | 12/2008 | 12/2007 |--------------------------------------------------------------------------------| Insurance contracts | | |--------------------------------------------------------------------------------| Provision for unearned premiums | 1 521 | 1 691 |--------------------------------------------------------------------------------| Provision for claims outstanding | 6 367 | 6 835 |--------------------------------------------------------------------------------| P&C Insurance, total | 7 889 | 8 527 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Reinsurers' share | | |--------------------------------------------------------------------------------| Provision for unearned premiums | 54 | 55 |--------------------------------------------------------------------------------| Provision for claims outstanding | 377 | 429 |--------------------------------------------------------------------------------| P&C Insurance, total | 431 | 484 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | | |--------------------------------------------------------------------------------| | 12/2008 | 12/2007 |--------------------------------------------------------------------------------| Insurance contracts | | |--------------------------------------------------------------------------------| Liabilities for contracts with DPF | | |--------------------------------------------------------------------------------| Provision for unearned premiums | 2 629 | 2 843 |--------------------------------------------------------------------------------| Provision for claims outstanding | 1 777 | 1 664 |--------------------------------------------------------------------------------| Total | 4 406 | 4 506 |--------------------------------------------------------------------------------| Liabilities for contracts without DPF | | |--------------------------------------------------------------------------------| Provision for unearned premiums | 13 | 3 |--------------------------------------------------------------------------------| Provision for claims outstanding | 0 | 1 |--------------------------------------------------------------------------------| Total | 13 | 4 |--------------------------------------------------------------------------------| Total | 4 419 | 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 | 2 644 | 2 849 |--------------------------------------------------------------------------------| Provision for claims outstanding | 1 779 | 1 667 |--------------------------------------------------------------------------------| Total | 4 423 | 4 515 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Investment contracts | | |--------------------------------------------------------------------------------| Liabilities for contracts with DPF | | |--------------------------------------------------------------------------------| Provision for unearned premiums | 63 | 105 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Liabilities for insurance and investment | | || contracts, total | | |--------------------------------------------------------------------------------| Provision for unearned premiums | 2 707 | 2 954 |--------------------------------------------------------------------------------| Provision for claims outstanding | 1 779 | 1 667 |--------------------------------------------------------------------------------| Life insurance, total | 4 487 | 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 | 12 375 | 13 148 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| 10 LIABILITIES FROM UNIT-LINKED INSURANCE AND | | || INVESTMENT CONTRACTS | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | 12/2008 | 12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Unit-linked insurance contracts | 1 538 | 2 008 |--------------------------------------------------------------------------------| Unit-linked investment contracts | 99 | 63 |--------------------------------------------------------------------------------| Life insurance, total | 1 637 | 2 071 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| 11 FINANCIAL LIABILITIES | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance | 12/2008 | 12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Derivative financial instruments (Note 7) | 251 | 90 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Subordinated debt securities | | |--------------------------------------------------------------------------------| Subordinated loans | 435 | 440 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance, total | 686 | 530 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | 12/2008 | 12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Derivative financial instruments (Note 7) | 4 | 1 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Subordinated debt securities | | |--------------------------------------------------------------------------------| Subordinated loans | 100 | 100 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance, total | 104 | 101 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Holding | 12/2008 | 12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Derivative financial instruments (Note 7) | 0 | 0 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Subordinated debt securities | | |--------------------------------------------------------------------------------| Debentures | 597 | 589 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Other | | |--------------------------------------------------------------------------------| Other | 6 | 6 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Holding, total | 604 | 596 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Elimination items between segments | -125 | -125 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Group, total | 1 269 | 1 102 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| 12 CONTINGENT LIABILITIES AND COMMITMENTS | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance | | |--------------------------------------------------------------------------------| | 12/2008 | 12/2007 |--------------------------------------------------------------------------------| Off-balance sheet items | | |--------------------------------------------------------------------------------| Guarantees | 37 | 41 |--------------------------------------------------------------------------------| Other irrevocable commitments | 20 | 16 |--------------------------------------------------------------------------------| Total | 57 | 57 |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| Assets pledged as | | | | || collateral for liabilities | | | | || or contingent liabilities | | | | |--------------------------------------------------------------------------------| | 12/2008 | 12/2008 | 12/2007 | 12/2007 |--------------------------------------------------------------------------------| Assets pledged as | Assets | Liabilities | Assets | Liabilities || collateral | pledged | / commit- | pledged | / commit- || | | ments | | ments |--------------------------------------------------------------------------------| Cash at balances at central | 9 | 8 | 12 | 8 || banks | | | | |--------------------------------------------------------------------------------| Investments | | | | |--------------------------------------------------------------------------------| - Investment securities | 127 | 108 | 276 | 102 |--------------------------------------------------------------------------------| Total | 136 | 117 | 289 | 110 |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| Non-cancellable operating leases | 12/2008 | 12/2007 |--------------------------------------------------------------------------------| Minimum lease payments | | |--------------------------------------------------------------------------------| not later than one year | 32 | 35 |--------------------------------------------------------------------------------| later than one year and not later than five years | 89 | 101 |--------------------------------------------------------------------------------| later than five years | 90 | 99 |--------------------------------------------------------------------------------| Total | 212 | 236 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | | |--------------------------------------------------------------------------------| | 12/2008 | 12/2007 |--------------------------------------------------------------------------------| Off-balance sheet items | | |--------------------------------------------------------------------------------| Fund commitments | 302 | 273 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| | 12/2008 | 12/2007 |--------------------------------------------------------------------------------| Other commitments | | |--------------------------------------------------------------------------------| Acquisition of IT-software | 3 | 1 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Non-cancellable operating leases | 12/2008 | 12/2007 |--------------------------------------------------------------------------------| Minimum lease payments | | |--------------------------------------------------------------------------------| not later than one year | 2 | 2 |--------------------------------------------------------------------------------| later than one year and not later than five years | 7 | 6 |--------------------------------------------------------------------------------| later than five years | 3 | 4 |--------------------------------------------------------------------------------| Total | 11 | 12 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Holding | | |--------------------------------------------------------------------------------| | 12/2008 | 12/2007 |--------------------------------------------------------------------------------| Off-balance sheet items | | |--------------------------------------------------------------------------------| Fund commitments | 4 | 6 |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| Assets pledged as | | | | || collateral for liabilities | | | | || or contingent liabilities | | | | |--------------------------------------------------------------------------------| | 12/2008 | 12/2008 | 12/2007 | 12/2007 |--------------------------------------------------------------------------------| Assets pledged as | Assets | Liabilities | Assets | Liabilities || collateral | pledged | / commit- | pledged | / commit- || | | ments | | ments |--------------------------------------------------------------------------------| Investments | | | | |--------------------------------------------------------------------------------| - Mortgaged collateral | 15 | 6 | 15 | 6 || notes | | | | |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| Non-cancellable operating leases | 12/2008 | 12/2007 |--------------------------------------------------------------------------------| Minimum lease payments | | |--------------------------------------------------------------------------------| not later than one year | 3 | 2 |--------------------------------------------------------------------------------| later than one year and not later than five years | 4 | 5 |--------------------------------------------------------------------------------| later than five years | 3 | 3 |--------------------------------------------------------------------------------| Total | 9 | 11 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| 13 RESULT ANALYSIS OF P&C INSURANCE BUSINESS | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| | 1-12/2008 | 1-12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Premiums earned | 3 807 | 3 797 |--------------------------------------------------------------------------------| Claims incurred | -2 834 | -2 788 |--------------------------------------------------------------------------------| Operating expenses | -662 | -653 |--------------------------------------------------------------------------------| Other technical income and expenses | 4 | 5 |--------------------------------------------------------------------------------| Allocated investment return transferred from the | 233 | 205 || non-technical account | | |--------------------------------------------------------------------------------| Technical result | 548 | 565 |--------------------------------------------------------------------------------| Investment result | 299 | 238 |--------------------------------------------------------------------------------| Allocated investment return transferred to the | -293 | -261 || technical account | | |--------------------------------------------------------------------------------| Other income and expenses | -5 | -8 |--------------------------------------------------------------------------------| Operating result | 549 | 534 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| 14 SAMPO PLC'S INCOME STATEMENT AND BALANCE SHEET | | || (FAS) | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| INCOME STATEMENT | | |--------------------------------------------------------------------------------| | 1-12/2008 | 1-12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Other operating income | 9 | 12 |--------------------------------------------------------------------------------| Staff expenses | -9 | -18 |--------------------------------------------------------------------------------| Depreciation and impairment | -1 | -2 |--------------------------------------------------------------------------------| Other operating expenses | -13 | -31 |--------------------------------------------------------------------------------| Operating profit | -14 | -39 |--------------------------------------------------------------------------------| Finance income and expenses | 579 | 4 097 |--------------------------------------------------------------------------------| Profit before appropriations and income taxes | 566 | 4 058 |--------------------------------------------------------------------------------| Income taxes | -11 | -25 |--------------------------------------------------------------------------------| Profit for the financial period | 555 | 4 033 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| BALANCE SHEET | 12/2008 | 12/2007 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| ASSETS | | |--------------------------------------------------------------------------------| Non-current assets | | |--------------------------------------------------------------------------------| Intangible assets | 1 | 1 |--------------------------------------------------------------------------------| Property, plant and equipment | 4 | 6 |--------------------------------------------------------------------------------| Investments | | |--------------------------------------------------------------------------------| Shares in Group companies | 2 370 | 2 370 |--------------------------------------------------------------------------------| Receivables from Group companies | 122 | 128 |--------------------------------------------------------------------------------| Shares in participating undertakings | 0 | 1 |--------------------------------------------------------------------------------| Other shares and participations | 1 710 | 2 763 |--------------------------------------------------------------------------------| Other receivables | 1 062 | 1 896 |--------------------------------------------------------------------------------| Receivables | 59 | 57 |--------------------------------------------------------------------------------| Cash and cash equivalents | 35 | 228 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| TOTAL ASSETS | 5 364 | 7 450 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| LIABILITIES | | |--------------------------------------------------------------------------------| Equity | | |--------------------------------------------------------------------------------| Share capital | 98 | 98 |--------------------------------------------------------------------------------| Share premium account | 1 160 | 1 160 |--------------------------------------------------------------------------------| Legal reserve | 366 | 366 |--------------------------------------------------------------------------------| Fair value reserve | -1 759 | 26 |--------------------------------------------------------------------------------| Other reserves | 273 | 273 |--------------------------------------------------------------------------------| Retained earnings | 3 993 | 811 |--------------------------------------------------------------------------------| Profit for the year | 555 | 4 033 |--------------------------------------------------------------------------------| Total equity | 4 686 | 6 768 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Liabilities | | |--------------------------------------------------------------------------------| Long-term | 597 | 589 |--------------------------------------------------------------------------------| Short-term | 81 | 93 |--------------------------------------------------------------------------------| Total liabilities | 678 | 682 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| TOTAL LIABILITIES | 5 364 | 7 450 |-------------------------------------------------------------------------------- News Source: NASDAQ OMX 11.02.2009 DGAP's Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: EnglishCompany: Sampo FinlandPhone: Fax: E-mail: Internet: ISIN: FI0009003305Category Code: FRLSE Ticker: 0HAGSequence Number: 84Time of Receipt: Feb 11, 2009 08:30:25 End of Announcement DGAP News-Service ---------------------------------------------------------------------------

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