Sampo A Ord Regulatory News (0HAG)

5 May 2010 07:30

Sampo / 1st Quarter Results 05.05.2010 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 INTERIM REPORT 5 May 2010 at 9.30 am SAMPO GROUP'S RESULTS FOR JANUARY - MARCH 2010 Strong earnings growth Sampo Group's profit before taxes for the first three months of 2010 rose to EUR287 million (169). The total comprehensive income for the period, taking changesin the market value of assets into account, amounted to EUR 596 million (-59). - Earnings per share amounted to EUR 0.44 (0.23) and marked-to-market EPS wasEUR 1.06 per share (-0.10). The return on equity for the Group rose to 30.1 percent for the period (-5.1). - Net asset value per share amounted to EUR 16.12 (14.63). The fair valuereserve after tax on the Group level increased to EUR 536 million (296).- The difficult winter conditions in the Nordic countries were reflected in the insurance technical performance of the P&C insurance operation and the combined ratio for the first quarter of 2010 rose to 98.2 per cent (94.2). The profit before taxes was EUR 125 million (144) and marked-to-market result EUR 308 million (69). Return on equity rose to 52.7 per cent (14.4). - In the life insurance operations the profit before taxes increased to EUR 36 million (27) and the marked-to-market result amounted to EUR 133 million (-32). The return on equity at market value improved significantly to 65.4 percent (-52.0). - Nordea is accounted for as an associated company. In the segment reportingshare of Nordea's net profit is included in the holding segment. The profitbefore taxes for the segment amounted to EUR 126 million (-21), of whichNordea's share was EUR 124 million. --------------------------------------------------------------------------------| KEY FIGURES | 1-3 | 1-3 | Change |--------------------------------------------------------------------------------| EURm | 2010 | 2009 | % |--------------------------------------------------------------------------------| Profit before taxes | 287 | 169 | 69 |--------------------------------------------------------------------------------| P&C insurance | 125 | 144 | -13 |--------------------------------------------------------------------------------| Life insurance | 36 | 27 | 33 |--------------------------------------------------------------------------------| Associates (Nordea) | 124 | - | - |--------------------------------------------------------------------------------| Holding excl. associates | 2 | -21 | - |--------------------------------------------------------------------------------| Profit for the period | 245 | 127 | 93 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | Change |--------------------------------------------------------------------------------| Earnings per share, EUR | 0.44 | 0.23 | 0.21 |--------------------------------------------------------------------------------| EPS, marked-to-market, EUR | 1.06 | -0.10 | 1.16 |--------------------------------------------------------------------------------| NAV per share, EUR *) | 16.12 | 14.63 | 1.49 |--------------------------------------------------------------------------------| Average number of staff (FTE) | 6,982 | 7,454 | -472 |--------------------------------------------------------------------------------| Group solvency ratio, % *) | 167.6 | 158.3 | 9.3 |--------------------------------------------------------------------------------| RoE, % | 30.1 | -5.1 | 35.2 |-------------------------------------------------------------------------------- *) comparison figure from 31.12.2009 The figures in this report are not audited. Income statement items are compared on a year-on-year basis whereas comparison figures for balance sheet items are from 31 December 2009 unless otherwise stated. BUSINESS AREAS P&C insurance If P&C is the leading property and casualty insurance company in the Nordic region, with insurance operations that also encompass the Baltic countries and Russia. The P&C insurance group's parent company, If P&C Insurance Holding Ltd, is located in Sweden, and the If subsidiaries provide insurance solutions and services in Finland, Sweden, Norway, Denmark, the Baltic countries and Russia. If's operations are divided into four business areas: Private, Commercial, Industrial and Baltic&Russia. --------------------------------------------------------------------------------| Results | 1-3 | 1-3 | Change |--------------------------------------------------------------------------------| EURm | 2010 | 2009 | % |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Premiums | 1,416 | 1,327 | 7 |--------------------------------------------------------------------------------| Net income from investments | 117 | 102 | 15 |--------------------------------------------------------------------------------| Other operating income | 5 | 5 | -6 |--------------------------------------------------------------------------------| Claims incurred | -710 | -630 | 13 |--------------------------------------------------------------------------------| Change in insurance liabilities | -467 | -435 | 7 |--------------------------------------------------------------------------------| Staff costs | -122 | -106 | 15 |--------------------------------------------------------------------------------| Other expenses | -108 | -110 | -2 |--------------------------------------------------------------------------------| Finance costs | -7 | -8 | -8 |--------------------------------------------------------------------------------| Profit before taxes | 125 | 144 | -13 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Key figures | | | |--------------------------------------------------------------------------------| | | | Change |--------------------------------------------------------------------------------| Combined ratio, % | 98.2 | 94.2 | 4.0 |--------------------------------------------------------------------------------| Risk ratio, % | 74.8 | 70.7 | 4.1 |--------------------------------------------------------------------------------| Cost ratio, % | 23.5 | 23.5 | 0.0 |--------------------------------------------------------------------------------| Expense ratio, % | 16.9 | 17.2 | -0.3 |--------------------------------------------------------------------------------| Return on equity, % | 52.7 | 14.4 | 38.3 |--------------------------------------------------------------------------------| Average number of staff (FTE) | 6,468 | 6,928 | -460 |-------------------------------------------------------------------------------- In the first quarter of 2010 If P&C's technical result suffered from the extremewinter conditions in the Nordic countries. Extraordinary winter related claims amounted to roughly EUR 70 million. Despite adverse claims development marked-to-market result grew to EUR 308 million (69), because of favorable investment environment. Profit before taxes for P&C insurance for the first three months of 2010 decreased to EUR 125 million (144). The technical result was EUR 68 million (105). The technical result for Private business area amounted to EUR 27 million(50), Commercial EUR 24 million (30), Industrial EUR 15 million (17) and Baltic and Russia EUR 1 million (6). The decrease in the technical result, particularlyin Business areas Private, Commercial and Baltics&Russia, was due to increased claims frequency in motor and property insurance caused by severe winter conditions increasing water, fire and motor claims. An exceptionally high numberof winter related claims was reported to If P&C in the first quarter of 2010. The evaluation of their impact on If's reinsurance programs is underway. The completion of the review is expected to have a minor positive impact on If's technical result. Insurance margin (technical result in relation to net premiums earned) decreasedfrom the previous year to 7.2 (11.8). Return on equity (RoE) was high at 52.7 per cent (14.4) and the fair value reserve increased to EUR 238 million (105). The combined ratio for January - March 2010 was burdened by the extraordinary winter claims and deteriorated to 98.2 per cent (94.2). EUR 40 million (20) was released from the technical reserves related to prior year claims. Business areaIndustrial accounted for EUR 13 million of the increase from last year. In the Private business area the combined ratio increased to 99.6 (94.8). Higherclaims frequency due to the severe winter conditions deteriorated the risk ratioto 75.9 per cent (71.0). In the Commercial business area risk ratio rose 2 percentage points to 73.6 per cent (71.6) and as the cost ratio remained stable the combined ratio weakened to 97.6 per cent (95.6). Large claims development in the Industrial business area was unfavorable, and despite the improvement in the cost ratio, the combined ratio rose to 94.0 per cent (92.8). In the Baltic&Russia business area the combined ratio deteriorated to 99.7 per cent (89.1) due to increased claims cost related to extraordinary winter. Norwegian and Danish operations were equally negatively hit by the severe winterand increased large claims costs. The combined ratios increased to 107.5 per cent (99.6) and to 110.2 per cent (85.6), respectively. Combined ratios for the Finnish and Swedish operations, however, improved, to 82.7 per cent (90.0) and to 94.6 per cent (95.3), respectively. Gross written premiums grew 6 per cent to EUR 1,507 million (1,422). However, adjusted for currency the premiums decreased 1.1 per cent. In the business area Private the premiums grew 3.2 per cent. In the Industrial business area the premiums were significantly affected by recessionary effects. The sharpest decrease was again felt in the business area Baltic&Russia, where the premiums dropped 21 per cent. The cost ratio was unchanged at 23.5 per cent despite the pressure on premium volume development. Adjusted for currency the costs decreased 1.1 per cent. In business areas Private and Industrial the cost ratio improved whereas in the business area Baltic&Russia it weakened. As at 31 March 2010, total investment assets amounted to EUR 11.3 billion (10.7)of which 87 per cent (89) was invested in fixed income instruments and 12 per cent (11) in equities. Net income from investments rose to EUR 117 million (102). Investment return for the first three months of 2010 was 2.8 per cent (0.5). Duration for interest bearing assets was 2.2 years (2.5). As at 31 March 2010 If P&C's solvency ratio (solvency capital in relation to netpremiums written) amounted to 83 per cent (77). The solvency capital was EUR 3,305 million (2,943) in comparison to the regulatory minimum capital requirement of EUR 668 million. Reserving position continues to be strong with reserve ratio of 173 per cent (171) of net premiums written and 239 per cent (240) of claims paid. Life insurance Mandatum Life Group consists of Mandatum Life, a wholly-owned subsidiary of Sampo plc, operating in Finland, and its subsidiary Sampo Life Insurance Baltic SE, which has the form of a European company and is headquartered in Estonia. Itoperates in the other Baltic countries through branches. --------------------------------------------------------------------------------| Results | 1-3 | 1-3 | Change |--------------------------------------------------------------------------------| EURm | 2010 | 2009 | % |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Premiums written | 348 | 144 | 142 |--------------------------------------------------------------------------------| Net income from investments | 214 | 50 | 328 |--------------------------------------------------------------------------------| Other operating income | 0 | 0 | -55 |--------------------------------------------------------------------------------| Claims incurred | -208 | -187 | 11 |--------------------------------------------------------------------------------| Change in liabilities for | -292 | 45 | - || inv. and ins. contracts | | | |--------------------------------------------------------------------------------| Staff costs | -9 | -7 | 39 |--------------------------------------------------------------------------------| Other operating expenses | -14 | -15 | -9 |--------------------------------------------------------------------------------| Finance costs | -2 | -3 | -6 |--------------------------------------------------------------------------------| Profit before taxes | 36 | 27 | 33 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Key figures | | | |--------------------------------------------------------------------------------| | | | Change |--------------------------------------------------------------------------------| Expense ratio, % | 127.8 | 131.2 | -3.4 |--------------------------------------------------------------------------------| Return on equity, % | 65.4 | -52.0 | 117.4 |--------------------------------------------------------------------------------| Average number of staff (FTE) | 461 | 471 | -10 |-------------------------------------------------------------------------------- Mandatum Life's first quarter of 2010 was successful both in terms of profitability and sales. Marked-to-market result amounted to EUR 133 million (-32) and premium income rose 142 per cent to EUR 348 million. Profit before taxes in life insurance for January-March 2010 was EUR 36 million (27). Net investment income, excluding income on unit-linked contracts, amountedto EUR 74 million (67). Meanwhile, net income from unit-linked investments was EUR 140 million (-17). The fair value reserve increased to EUR 316 million from EUR 210 million at the end of 2009. Return on equity (RoE) in life insurance surged to 65.4 per cent (-52.0). Excluding the assets of EUR 2.7 billion (2.4) covering unit-linked liabilities, Mandatum Life Group's investment assets amounted to EUR 5.7 billion (5.4) at market values as at 31 March 2010. Fixed income represented 67 per cent (68), equity 25 per cent (23), private equity 4 per cent (4), real estate 3 per cent (3) and other assets 2 per cent (2) of the total assets. Return on investments during January - March 2010 was 3.9 per cent (-0.2). At the end of March 2010 the duration of fixed income assets was 2.6 years (2.6). Mandatum Life's solvency position improved further during the first quarter of 2010. Solvency margin was 4.8 times regulatory minimum and the company also exceeds clearly internal Economic Capital requirements. The solvency ratio was 21.4 (18.5). Mandatum Life Group's total technical reserves were EUR 7.1 billion(6.8), of which unit-linked reserves accounted for 2.6 billion (2.4). The share of unit-linked reserves of total technical reserves increased to 37 per cent (35). Expense ratio in Sampo Group's life operations improved to 127.8 per cent (131.2). This ratio does not take into account all fees intended to cover the operating expenses. Mandatum Life does not defer acquisition costs, which burdens the first year's result. Mandatum Life Group's premium income on own account grew significantly and amounted to EUR 348 million (144). The growth was strongest in unit-linked premiums and their share of total premiums increased to 69 per cent (64). All sales channels improved their performance compared to 2009 with the Wealth management and investment solutions unit posting strongest results. Premium income from the Baltic countries grew 108 per cent and was EUR 12.7 million (6.1). Mandatum Life's overall market share in Finland measured by premium income rose to 25.3 per cent (21.2) and market share in unit-linked business was 32.8 per cent (27.3). Unit-linked market share in the Baltic countries amounted to 32 percent (17). The embedded value of Sampo Group's life business (excl. Baltics) grew to EUR 1,147 million (620) as at 31 December 2009. The value-in-force decreased to EUR 391 million (415) largely due to change in the tax receivables and a decrease inthe investment margin assumptions. A detailed breakdown of VIF is presented in the Supplementary Financial Information published in connection to this report at www.sampo.com/result. Holding Sampo plc controls its subsidiaries engaged in P&C and life insurance. In addition Sampo plc held on 31 March 2010 approximately 20 per cent of the share capital of Nordea, the largest bank in the Nordic countries. Nordea is an associated company to Sampo plc. --------------------------------------------------------------------------------| Results | 1-3 | 1-3 | Change |--------------------------------------------------------------------------------| EURm | 2010 | 2009 | % |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Net investment income | 25 | -6 | - |--------------------------------------------------------------------------------| Other operating income | 4 | 2 | 83 |--------------------------------------------------------------------------------| Staff costs | -4 | -2 | 78 |--------------------------------------------------------------------------------| Other operating expenses | -3 | -6 | -55 |--------------------------------------------------------------------------------| Finance costs | -20 | -9 | 123 |--------------------------------------------------------------------------------| Share of associates' profit | 124 | - | - |--------------------------------------------------------------------------------| Profit before taxes | 126 | -21 | - |--------------------------------------------------------------------------------| | | | Change |--------------------------------------------------------------------------------| Average number of staff (FTE) | 53 | 55 | -2 |-------------------------------------------------------------------------------- The segment's profit before taxes amounted to EUR 126 million (-21), of which EUR 124 million relates to Sampo's share of Nordea's first quarter 2010 profit. The segment, excluding share of Nordea's profit, reported a profit, which was based on the positive marked-to-market effect from interest rate and cross currency swaps used in managing the risk profile of the debt portfolio. The strengthening of the Swedish krona was also beneficial as Sampo had part of its liquidity in Swedish krona. Sampo plc's holding in Nordea Bank was booked in the consolidated balance sheet at EUR 5.2 billion. The market value of the holding was EUR 6.0 billion at 31 March 2010. In addition the assets on Sampo plc's balance sheet as at 31 March 2010 included holdings in subsidiaries for EUR 2.4 billion (2.4). As at 31 March 2010 Sampo plc's debt financing amounted to EUR 1,660 million, ofwhich senior bonds and notes accounted for EUR 991 million and commercial papersEUR 525 million. Gross debt to Sampo plc's equity was 24 per cent (24). Associated company Nordea Bank On March 2010 Sampo plc held 817,968,606 Nordea shares corresponding to a holding of 20.3 per cent. The average price paid per share amounted to EUR 6.39.The closing price as at 31 March 2010 was EUR 7.29. As Sampo's holding exceeds 20 per cent Nordea is accounted as an associated company in Sampo Group's accounts since 31 December 2009. Sampo's share of Nordea's net profit is shown on the face of Sampo Group's profit and loss account on the line Share of associate's profit/loss. The following text is based on Nordea's January - March 2010 interim report published on 28 April 2010. Nordea's first quarter 2010 result was significantly better than the previous quarter and also better than the strong first quarter of last year. Total incomeincreased 7 per cent and expenses decreased 5 per cent from the previous quarter. Operating profit was up 48 per cent from the previous quarter, mainly due to higher net result from items at fair value, the restructuring costs in the fourth quarter and lower net loan losses. Risk-adjusted profit increased 27 per cent compared to the previous quarter and decreased 9 per cent compared to the first quarter last year. Net interest income decreased 5 per cent from the previous quarter. Total lending increased 4 per cent in the first quarter. Household lending volumes continued to increase with increasing market shares. Also corporate lending volumes increased in the quarter. The improved business environment has contributed to a decrease of loan losses and a stabilization of the growth of impaired loans. Net loan losses in 2010 arelikely to be lower than in 2009. The loan loss ratio was 37 basis points, compared to 52 basis points in the fourth quarter. Credit quality continued to stabilize and impaired loans increased at a lower rate, 5 per cent from the fourth quarter. Net interest income held up well, due to strong customer-related performance, but is still subdued by the exceptionally low interest rates. To reach the ambitious targets for 2013, Nordea's focus is now on the prudent growth strategyand implementing the Group initiatives for growth, efficiency and a strong foundation. In its outlook for 2010, Nordea expects risk-adjusted profit to be lower in 2010than in 2009, because of lower income in Treasury and Markets. However, net loanlosses in 2010 are likely to be lower than in 2009. Credit quality continues to stabilize, in line with the macroeconomic recovery. The core tier 1 capital ratio, i.e. excluding hybrid loans, was 10.1 per cent excluding transition rules according to Basel II, the tier 1 capital ratio was 11.2 per cent and the total capital ratio was 13.6 per cent. Including transition rules, the core tier 1 capital ratio was 9.2 per cent, the tier 1 capital ratio was 10.1.per cent and the total capital ratio was 12.3 per cent. DEVELOPMENTS IN THE FIRST QUARTER OF 2010 Annual General Meeting The Annual General Meeting held on 13 April 2010 decided to distribute a dividend of EUR 1.00 per share for 2009. The record date for dividend payment was 16 April 2010 and the dividend was paid on 23 April 2010. The Annual GeneralMeeting adopted the financial accounts for 2009 and discharged the Board of Directors and the Group CEO and President from liability for the financial year. The following members were re-elected to the Board of Directors: Tom Berglund, Anne Brunila, Veli-Matti Mattila, Eira Palin-Lehtinen, Jukka Pekkarinen, Christoffer Taxell, Matti Vuoria and Bjorn Wahlroos. At its organisational meeting, the Board elected Bjorn Wahlroos as Chairman and Matti Vuoria as Vice Chairman. The following members were elected to the Nomination and Compensation Committee: Veli-Matti Mattila, Eira Palin-Lehtinen, Christoffer Taxell, Matti Vuoria, and Bjorn Wahlroos. Tom Berglund, Jukka Pekkarinen and Christoffer Taxell were elected to the Audit Committee. The Annual General Meeting decided to pay the following fees to the members of the Board of Directors until the close of the 2011 Annual General Meeting: the Chairman of the Board will be paid EUR 160,000 per year, the Vice Chairman EUR 100,000 per year and the other members EUR 80,000 per year. After deduction of taxes and similar payments, approximately 50 per cent of the Board members' annual compensation will be paid in Sampo A shares and the rest in cash. Ernst & Young Oy was elected as Auditor. The Auditor will be paid a fee determined by a reasonable invoice. Ernst & Young Oy nominated Heikki Ilkka, APA, as responsible auditor. The Annual General Meeting resolved to amend section 12 of the Articles of Association as a result of the amendments to Chapter 5, section 19 of the Finnish Limited Liability Companies Act that entered into force on 3 August 2009and 31 December 2009. Personnel The number of full-time equivalent personnel in Sampo Group remained fairly stable during the first quarter of 2010. On 31 March 2010 the number of staff was 6,975 compared to 7,087 on 31 December 2009. The average number of employeesin January - March amounted to 6,982 (7,454). Approximately 93 per cent of the Sampo Group staff - 6,454 employees - worked inP&C insurance on 31 March 2010. 1,747 employees worked in Finland; 1,845 in Sweden; 1,546 in Norway and 1,316 in Baltics and other countries. The number of personnel decreased slightly in each country due to reorganization of activities. Nearly 7 per cent of the Sampo Group staff - 469 employees - worked in life insurance. Life insurance operations had 363 employees in Finland and 106 employees in Baltics. Recruiting of new staff into the Wealth Management and Investment Solutions, Corporate Sales and IT units increased the number of staffby nearly four per cent. Approximately 1 per cent the Sampo Group staff - 52 employees - worked in the holding company Sampo plc. There were no changes in the number of staff. Management incentive schemes The management incentive schemes of Sampo Group are of two types; long-term management incentive schemes based on share appreciation rights and one share-based incentive scheme. The outcome of the long-term management incentive schemes is determined by Sampo's share-price development over a period of approximately three years starting from the issue of the respective program. The programs are subject to thresholds on share price development and company profitability, as well as ceilings for maximum bonuses. Furthermore, the programs are subject to rules requiring part of the paid bonus to be used to acquire Sampo shares, which must in turn be held for a specified period of time. In 2006, Sampo's Annual General Meeting decided on a share-based incentive scheme for the Executive Management belonging to the Group Executive Committee. Under the program, the participants are granted the right to receive up to a pre-determined number of Sampo shares, if Sampo's share price has outperformed apredefined threshold value and insurance margin targets have been exceeded. The bonus will be paid in Sampo shares, in cash or a combination thereof. Furthermore, the programs are subject to lock-up on Sampo shares received. Payments based on the long-term management incentive schemes in the first quarter of 2010 amounted to EUR 2 million (0). No payments were made on the basis of the share-based incentive scheme 2006 (0). The terms of all incentive schemes are available on Sampo's web pages at www.sampo.com/compensation. Shares and share capital As at 31 March 2010, Sampo plc had 561,372,390 shares, which were divided into 560,172,390 A shares and 1,200,000 B shares. Sampo plc held 90,000 of its own A shares corresponding to 0.02 per cent of the total number of shares and voting rights. The shares were purchased at an average price of EUR 16.53 per share and the total amount paid for the shares was EUR 1.5 million. The shares were purchased in late 2009 under the authorization received in the AGM of 2009. The other Group companies held no shares in the parent company. The Annual General Meeting of 2010 authorised the Board to acquire in one or several lots a maximum of 50,000,000 Sampo A shares. Shares can be repurchased in other proportion than the shareholders' proportional shareholdings (private repurchase). The share price will be no higher than the highest price paid for Sampo shares in public trading at the time of purchase. The authorisation will be valid until the close of the next Annual General Meeting, nevertheless not more than 18 months after AGM's decision. Internal dividends In the first quarter of 2010 no dividends were paid to Sampo plc by its insurance subsidiaries. After the end of the reporting period, Sampo plc received on 13 April 2010 a dividend of EUR 103 million (SEK 1,000 million) from If P&C Insurance Holding. In addition the associated company Nordea Bank AB paid on 8 April 2010 Sampo plca dividend amounting to EUR 204 million. Ratings All the main ratings for Sampo Group companies remained unchanged in the first quarter of 2010. --------------------------------------------------------------------------------| Rated company | Moody's | Standard and Poor's |--------------------------------------------------------------------------------| | Rating | Outlook | Rating | Outlook |--------------------------------------------------------------------------------| Sampo plc | Baa2 | Stable | Not rated | - |--------------------------------------------------------------------------------| If P&C Insurance Ltd | A2 | Stable | A | Stable || (Sweden) | | | | |--------------------------------------------------------------------------------| If P&C Insurance Company | A2 | Stable | A | Stable || Ltd | | | | || (Finland) | | | | |-------------------------------------------------------------------------------- Group solvency Sampo Group, with Nordea Bank AB (publ) as its associated company, is regarded as a financial and insurance conglomerate according to the Act on the Supervision of Financial and Insurance Conglomerates (2004/699). Group solvency has been calculated according to Chapter 3 of the Act on the Supervision of Financial and Insurance Conglomerates (2004/699). The Act is based on Directive 2002/87/EC of the European Parliament and of the Council on the supplementary supervision of credit institutions, insurance undertakings andinvestment. --------------------------------------------------------------------------------| SAMPO GROUP SOLVENCY | 31 March 2010 | 31 December 2009 |--------------------------------------------------------------------------------| EURm | | |--------------------------------------------------------------------------------| Group capital | 8,219 | 7,613 |--------------------------------------------------------------------------------| Sectoral items | 1,832 | 1,545 |--------------------------------------------------------------------------------| Intangibles and other deductibles | -2,373 | -2,314 |--------------------------------------------------------------------------------| Dividends | -702 | -561 |--------------------------------------------------------------------------------| Group's own funds, total | 6,977 | 6,283 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Minimum requirements for own | 4,162 | 3,968 || funds, total | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Group solvency | 2,815 | 2,315 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Group solvency ratio | | |--------------------------------------------------------------------------------| (Own funds % of minimum | 167.6 | 158.3 || requirements) | | |-------------------------------------------------------------------------------- The Group's solvency ratio (own funds in relation to minimum requirements for own funds) was 167.6 per cent (158.3) as at 31 March 2010. Nordea is treated as an associated company in the solvency calculation and the part of Nordea's capital requirement corresponding to Sampo's holding in Nordea is taken into account in the Group's capital requirement. In Sampo Group solvency is assessed internally by comparing the capital requiredto the capital available. Capital requirement assessment is based on an economiccapital framework, in which Group companies quantify the amount of capital required for measurable risks over a one year time horizon at 99.5 per cent's confidence level. In addition to economic capital companies are assessing their capital need related to non-measurable risks like risks in business environment. Capital available or Adjusted Solvency Capital include regulatory capital and inaddition other loss absorbing items like the effect of discounting technical reserves and other reserves excluded from regulatory capital. The economic capital tied up in Group's operations on 31 March 2010 was EUR 4,024 million (3,783) and adjusted solvency capital was EUR 7,608 million (7,077). OUTLOOK FOR THE REST OF 2010 The recovery of the global economy continued to gather pace in the first quarterof 2010. Expectations of improving corporate earnings bolstered investor confidence resulting in fairly benign capital market conditions. Sampo Group is expected to report a good result for 2010 with a continuing good profitability of its insurance operations supported by the share of Nordea's profit. If P&C is expected to reach its long-term combined ratio target of below 95 per cent in 2010 despite the difficult winter conditions in the first quarter of 2010. Profit is expected to remain on a very good level. The macro economic situation will continue to dampen the premium growth but has a limited impact onprofitability. Mandatum Life's marked-to-market profit is highly dependent on capital markets and is expected to remain good. Reported profit is foreseen to reach year 2009 level. The company seeks further growth in the unit-linked volumes. The associated company, Nordea Bank AB, is expected to contribute significantly to the Group profit in 2010. 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, tel. +358 10 516 0031 Sampo will arrange a telephone conference for investors and analysts at 4 pm Finnish time (2 pm UK time). The call is held in English. Please call +44?207 162 0025 (Europe) or +1?334?323 6201 (North America). Please be ready to state the conference ID '862905', the conference title 'Sampo plc 2010/Q1 release' andthe password 'SAMPO'. The telephone conference can also be followed from a direct transmission on the Internet at www.sampo.com/result. A recorded version will later be available at the same address. In addition, Group CEO and President Kari Stadigh's video interview and Supplementary Financial Information are available at www.sampo.com/result. Sampo will publish the second quarter 2010 interim report on 11 August 2010. DISTRIBUTION: NASDAQ OMX Helsinki The principal media Financial Supervisory Authority www.sampo.com --------------------------------------------------------------------------------| GROUP FINANCIAL REVIEW | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| FINANCIAL HIGHLIGHTS | | 1-3/2010 | 1-3/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| GROUP | | | |--------------------------------------------------------------------------------| Profit before taxes | EURm | 287 | 169 |--------------------------------------------------------------------------------| Return on equity (at fair value) | % | 30.1 | -5.1 |--------------------------------------------------------------------------------| Return on assets (at fair value) | % | 12.6 | 0.0 |--------------------------------------------------------------------------------| Equity/assets ratio | % | 28.7 | 21.0 |--------------------------------------------------------------------------------| Group solvency (1)) | EURm | 2,815 | 2,598 |--------------------------------------------------------------------------------| Group solvency ratio | % | 167.6 | 424.0 |--------------------------------------------------------------------------------| Average number of staff | | 6,982 | 7,454 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| PROPERTY & CASUALTY INSURANCE | | | |--------------------------------------------------------------------------------| Premiums written before reinsurers' | EURm | 1,507 | 1,422 || share | | | |--------------------------------------------------------------------------------| Premiums earned | EURm | 949 | 892 |--------------------------------------------------------------------------------| Profit before taxes | EURm | 125 | 144 |--------------------------------------------------------------------------------| Return on equity (at current value) | % | 52.7 | 14.4 |--------------------------------------------------------------------------------| Risk ratio (2)) | % | 74.8 | 70.7 |--------------------------------------------------------------------------------| Cost ratio (2)) | % | 23.5 | 23.5 |--------------------------------------------------------------------------------| Loss ratio (2)) | % | 82.9 | 78.7 |--------------------------------------------------------------------------------| Loss ratio excl. unwinding of discount | % | 81.3 | 77.0 || (2)) | | | |--------------------------------------------------------------------------------| Expense ratio (2)) | % | 16.9 | 17.2 |--------------------------------------------------------------------------------| Combined ratio | % | 99.8 | 95.9 |--------------------------------------------------------------------------------| Combined ratio excl. unwinding of | % | 98.2 | 94.2 || discount | | | |--------------------------------------------------------------------------------| Average number of staff | | 6,468 | 6,928 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| LIFE INSURANCE | | | |--------------------------------------------------------------------------------| Premiums written before reinsurers' | EURm | 351 | 147 || share | | | |--------------------------------------------------------------------------------| Profit before taxes | EURm | 36 | 27 |--------------------------------------------------------------------------------| Return on equity (at current value) | % | 65.4 | -52.0 |--------------------------------------------------------------------------------| Expense ratio | % | 127.8 | 131.2 |--------------------------------------------------------------------------------| Average number of staff | | 461 | 471 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| HOLDING | | | |--------------------------------------------------------------------------------| Profit before taxes | EURm | 126 | -21 |--------------------------------------------------------------------------------| Average number of staff | | 53 | 55 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| PER SHARE KEY FIGURES | | | |--------------------------------------------------------------------------------| Earnings per share | EUR | 0.44 | 0.23 |--------------------------------------------------------------------------------| Earnings per share, incl. other | | | |--------------------------------------------------------------------------------| comprehensive income | EUR | 1.06 | -0.10 |--------------------------------------------------------------------------------| Capital and reserves per share | EUR | 14.64 | 8.15 |--------------------------------------------------------------------------------| Net asset value per share | EUR | 16.12 | 8.17 |--------------------------------------------------------------------------------| Adjusted share price, high | EUR | 19.85 | 14.75 |--------------------------------------------------------------------------------| Adjusted share price, low | EUR | 16.90 | 8.63 |--------------------------------------------------------------------------------| Market capitalisation | EURm | 11,024 | 6,242 |-------------------------------------------------------------------------------- (1)) The Group solvency is calculated according to the consolidation method defined inChapter 3 of the Act on the Supervision of Financial and Insurance Conglomerates (2004/699). In the comparison year the solvency was calculated based on adjusted solvency calculations for insurance groups according to the Decree of the Ministry of Social Affairs and Health (1106/2000), determined on the basis of the Group financial statements. (2)) 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 and as the average number of shares was 561,282,390. The 90,000 treasury shares held by Sampo plc at the balance sheet date have been deducted from both numbers of shares. The valuation differences on investment property have been taken into account incalculating the return on assets, return on equity, equity/assets ratio and net asset value per share. The tax component includes the tax corresponding to the result for the period, and the deferred tax liability related to valuation differences on investment property. The total comprehensive income has been used in the calculation of the return onassets and return on equity. 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 Finance Supervisory Authority (former Insurance Supervisory Authority). --------------------------------------------------------------------------------| CALCULATION OF KEY FIGURES | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Return on equity (fair values), % | |--------------------------------------------------------------------------------| + total comprehensive income | |--------------------------------------------------------------------------------| + change in valuation differences on investments | |--------------------------------------------------------------------------------| - tax (incl. change in deferred tax relating to valuation | x 100 % || 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 | |--------------------------------------------------------------------------------| + other comprehensive income before taxes | |--------------------------------------------------------------------------------| + interest and other financial charges | |--------------------------------------------------------------------------------| + calculated interest on technical provisions | |--------------------------------------------------------------------------------| + 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 of | x 100 % || 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 | |--------------------------------------------------------------------------------| equity 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 on listed associates in the Group | |--------------------------------------------------------------------------------| + 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 | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ || | 2010 | 2009 | 2009 | 2009 | 2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Insurance premiums written | 1,764 | 1,077 | 896 | 1,036 | 1,470 |--------------------------------------------------------------------------------| Net income from investments | 354 | 259 | 348 | 384 | 165 |--------------------------------------------------------------------------------| Other operating income | 3 | 6 | 6 | 5 | 3 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Claims incurred | -918 | -792 | -767 | -729 | -818 |--------------------------------------------------------------------------------| Change in liabilities for | -759 | -61 | -17 | -165 | -390 || insurance and investment | | | | | || contracts | | | | | |--------------------------------------------------------------------------------| Staff costs | -135 | -134 | -136 | -125 | -115 |--------------------------------------------------------------------------------| Other operating expenses | -121 | -130 | -115 | -122 | -129 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Finance costs | -25 | -25 | -23 | -21 | -17 |--------------------------------------------------------------------------------| Share of associates' | 124 | 0 | 0 | 0 | 0 || profit/loss | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit for the period before | 287 | 199 | 192 | 264 | 169 || taxes | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Taxes | -41 | -51 | -44 | -46 | -42 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit for the period | 245 | 148 | 148 | 217 | 127 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Other comprehensive income | | | | | || for the period | | | | | |--------------------------------------------------------------------------------| Exchange differences on | 83 | -8 | 102 | 17 | 10 || translating foreign | | | | | || operations | | | | | |--------------------------------------------------------------------------------| Available-for-sale financial | 328 | -189 | 1,549 | 1,875 | -247 || assets | | | | | |--------------------------------------------------------------------------------| Cash flow hedges | -2 | -3 | 1 | -8 | 8 |--------------------------------------------------------------------------------| Share of other comprehensive | 27 | - | - | - | - || income of associates | | | | | |--------------------------------------------------------------------------------| Income tax relating to | -85 | -50 | -175 | -143 | 42 || components of other | | | | | || comprehensive income | | | | | |--------------------------------------------------------------------------------| Other comprehensive income | 351 | -250 | 1,477 | 1,741 | -186 || for the period, net of tax | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| TOTAL COMPREHENSIVE INCOME | 596 | -102 | 1,624 | 1,959 | -59 || FOR THE PERIOD, NET OF TAX | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit attributable to | | | | | |--------------------------------------------------------------------------------| Owners of the parent | 245 | 148 | 148 | 217 | 127 |--------------------------------------------------------------------------------| Non-controlling interests | 0 | 0 | 0 | 0 | 0 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Total comprehensive income | | | | | || attributable to | | | | | |--------------------------------------------------------------------------------| Owners of the parent | 596 | -101 | 1,625 | 1,958 | -59 |--------------------------------------------------------------------------------| Non-controlling interests | 0 | 0 | 0 | 0 | 0 |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| CONSOLIDATED COMPREHENSIVE INCOME STATEMENT | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| EURm | Note | 1-3/2010 | 1-3/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Insurance premiums written | 1 | 1,764 | 1,470 |--------------------------------------------------------------------------------| Net income from investments | 2 | 354 | 165 |--------------------------------------------------------------------------------| Other operating income | | 3 | 3 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Claims incurred | 3 | -918 | -818 |--------------------------------------------------------------------------------| Change in liabilities for insurance and | | -759 | -390 || investment contracts | | | |--------------------------------------------------------------------------------| Staff costs | 4 | -135 | -115 |--------------------------------------------------------------------------------| Other operating expenses | | -121 | -129 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Finance costs | | -25 | -17 |--------------------------------------------------------------------------------| Share of associates' profit/loss | | 124 | 0 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit before taxes | | 287 | 169 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Taxes | | -41 | -42 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit for the period | | 245 | 127 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Other comprehensive income for the | | | || period | | | |--------------------------------------------------------------------------------| Exchange differences | | 83 | 10 |--------------------------------------------------------------------------------| Available-for-sale financial assets | | 328 | -247 |--------------------------------------------------------------------------------| Cash flow hedges | | -2 | 8 |--------------------------------------------------------------------------------| Share of other comprehensive income of | | 27 | - || associates | | | |--------------------------------------------------------------------------------| Income tax relating to components of | | -85 | 42 || other comprehensive income | | | |--------------------------------------------------------------------------------| Other comprehensive income for the | | 351 | -186 || period, net of tax | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| TOTAL COMPREHENSIVE INCOME FOR THE | | 596 | -59 || PERIOD | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit attributable to | | | |--------------------------------------------------------------------------------| Owners of the parent | | 245 | 127 |--------------------------------------------------------------------------------| Non-controlling interests | | 0 | 0 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Total comprehensive income attributable | | | || to | | | |--------------------------------------------------------------------------------| Owners of the parent | | 596 | -59 |--------------------------------------------------------------------------------| Non-controlling interests | | 0 | 0 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Basic earnings per share (eur) | | 0.44 | 0.23 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| CONSOLIDATED BALANCE SHEET | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| EURm | Note | 03/2010 | 12/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Assets | | | |--------------------------------------------------------------------------------| Property, plant and equipment | | 33 | 34 |--------------------------------------------------------------------------------| Investment property | | 123 | 124 |--------------------------------------------------------------------------------| Intangible assets | 5 | 717 | 688 |--------------------------------------------------------------------------------| Investments in associates | | 5,193 | 5,172 |--------------------------------------------------------------------------------| Financial assets | 6, 7 | 16,397 | 15,479 |--------------------------------------------------------------------------------| Investments related to unit-linked | 8 | 2,656 | 2,366 || insurance contracts | | | |--------------------------------------------------------------------------------| Tax assets | | 60 | 81 |--------------------------------------------------------------------------------| Reinsurers' share of insurance | | 479 | 481 || liabilities | | | |--------------------------------------------------------------------------------| Other assets | | 2,193 | 1,439 |--------------------------------------------------------------------------------| Cash and cash equivalents | | 832 | 771 |--------------------------------------------------------------------------------| Total assets | | 28,683 | 26,635 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Liabilities | | | |--------------------------------------------------------------------------------| Liabilities for insurance and | 9 | 13,803 | 13,014 || investment contracts | | | |--------------------------------------------------------------------------------| Liabilities for unit-linked insurance | 10 | 2,645 | 2,359 || and investment contracts | | | |--------------------------------------------------------------------------------| Financial liabilities | 11 | 2,185 | 2,098 |--------------------------------------------------------------------------------| Tax liabilities | | 592 | 500 |--------------------------------------------------------------------------------| Provisions | | 33 | 35 |--------------------------------------------------------------------------------| Employee benefits | | 101 | 104 |--------------------------------------------------------------------------------| Other liabilities | | 1,104 | 912 |--------------------------------------------------------------------------------| Total liabilities | | 20,463 | 19,022 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Equity | | | |--------------------------------------------------------------------------------| Share capital | | 98 | 98 |--------------------------------------------------------------------------------| Reserves | | 1,530 | 1,530 |--------------------------------------------------------------------------------| Retained earnings | | 6,144 | 5,889 |--------------------------------------------------------------------------------| Other components of equity | | 446 | 96 |--------------------------------------------------------------------------------| Equity attributable to owners of the | | 8,219 | 7,613 || parent | | | |--------------------------------------------------------------------------------| Non-controlling interests | | 0 | 0 |--------------------------------------------------------------------------------| Total equity | | 8,219 | 7,613 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Total equity and liabilities | | 28,683 | 26,635 |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| STATE | | | | | | | | | || MENTS | | | | | | | | | || OF | | | | | | | | | || CHANG | | | | | | | | | || ES IN | | | | | | | | | || EQUIT | | | | | | | | | || Y, | | | | | | | | | || IFRS | | | | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| EURm | Shar | Shar | Lega | Inves | Retai | Trans | Avail | Cash | Total || | e | e | l | ted | ned | latio | able- | flow | || | capi | prem | rese | unres | earni | n of | for-s | hedges | || | tal | ium | rve | trict | ngs | forei | ale | **) | || | | acco | | ed | | gn | finan | | || | | unt | | equit | | opera | cial | | || | | | | y | | tions | asset | | || | | | | | | | s*) | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Equit | 98 | 1,16 | 370 | - | 5,614 | -249 | -2,37 | 11 | 4,631 || y at | | 1 | | | | | 5 | | || 1 | | | | | | | | | || Jan. | | | | | | | | | || 2009 | | | | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Chang | | | | | | | | | || es in | | | | | | | | | || equit | | | | | | | | | || y | | | | | | | | | |--------------------------------------------------------------------------------| Share | | | | | 0 | | | | 0 || -base | | | | | | | | | || d | | | | | | | | | || payme | | | | | | | | | || nts | | | | | | | | | |--------------------------------------------------------------------------------| Total | | | | 127 | 10 | -191 | -6 | -59 || comprehensiv | | | | | | | | || e income for | | | | | | | | || the period | | | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Equit | 98 | 1,16 | 370 | - | 5,742 | -238 | -2,56 | 6 | 4,573 || y at | | 1 | | | | | 6 | | || 31 | | | | | | | | | || March | | | | | | | | | || 2009 | | | | | | | | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Equit | 98 | 0 | 4 | 1,527 | 5,889 | -200 | 287 | 9 | 7,613 || y at | | | | | | | | | || 1 | | | | | | | | | || Jan. | | | | | | | | | || 2010 | | | | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Chang | | | | | | | | | || es in | | | | | | | | | || equit | | | | | | | | | || y | | | | | | | | | |--------------------------------------------------------------------------------| Share | | | | | -1 | | | | -1 || -base | | | | | | | | | || d | | | | | | | | | || payme | | | | | | | | | || nts | | | | | | | | | |--------------------------------------------------------------------------------| Other | | | | | 11 | | | | 11 || chang | | | | | | | | | || es | | | | | | | | | |--------------------------------------------------------------------------------| Total | | | | 245 | 110 | 242 | -2 | 596 || comprehensiv | | | | | | | | || e income for | | | | | | | | || the period | | | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Equit | 98 | 0 | 4 | 1,527 | 6,144 | -89 | 529 | 7 | 8,219 || y at | | | | | | | | | || 31 | | | | | | | | | || March | | | | | | | | | || 2010 | | | | | | | | | |-------------------------------------------------------------------------------- *) The amount recognised in equity from available-for-sale financial assets for the period totalled EURm 283 (-233). The amount transferred to p/l amounted to EURm -41 (42). **) The amount recognised in equity from cash flow hedges for the period totalled EURm -2 (-7). The amount transferred to p/l amounted to EURm - (1). The total comprehensive income includes also the share of the associate Nordea'sother comprehensive income,in accordance with the Group's share holding. As Nordea's other comprehensive income comprise mainly the currency hedging of net investments and exchange differences, the Group's share of Nordea's other comprehensive income EURm 27 is also included in the Group's exchange differences in the statement of changes in equity. The amount included in the translation, available-for-sale and cash flow hedge reserves represent other comprehensive income for each component, net of tax. --------------------------------------------------------------------------------| STATEMENT OF CASH FLOWS | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| | 1-3/2010 | 1-3/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Cash and cash equivalent at the beginning of | 761 | 499 || the period | | |--------------------------------------------------------------------------------| Cash flow from/used in operating activities | -27 | 928 |--------------------------------------------------------------------------------| Cash flow from/used in investing activities | 138 | -408 |--------------------------------------------------------------------------------| Cash flow from/used in financing activities | -54 | 29 |--------------------------------------------------------------------------------| Increase of liabilities | 409 | 29 |--------------------------------------------------------------------------------| Decrease of liabilities | -463 | - |--------------------------------------------------------------------------------| Cash and cash equivalent at the end of the | 819 | 1,048 || period | | |-------------------------------------------------------------------------------- The cash flow statement reports cash flows during the period classified by operating, investing and financing activities. Cash flows are reported by using the indirect method. Cash flows from operating activities derive primarily from the principal revenue-producing activities. Cash flows from investments in subsidiaries and associated undertakings and those from investments in intangible assets and property, plant and equipment are presented in investing activities. Financing activities include cash flows resulting from changes in equity and borrowings in order to conduct the business. Cash and cash equivalents consist of cash at bank and in hand and short-term deposits (under 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 2009. Sampo adopted various new or revised standards and interpretations at the beginning of the year 2010. These standards and interpretations are explained inSampos accounting policies for the financial year 2009. The financial statements are available on Sampo's website at www.sampo.com/result. The most significant of the adopted standards is the revised IFRS 3 Business combinations. The standard includes various significant changes regarding the accounting treatment of business combinations by allowing the company to measurethe non-controlling interest at fair value instead of the proportionate interestin the acquiree's net assets. The choice affects the amounts of recognised goodwill and non-controlling interest. --------------------------------------------------------------------------------| CONSOLIDATED INCOME | | | | | || STATEMENT BY SEGMENT FOR | | | | | || THREE MONTHS ENDED 31 | | | | | || MARCH 2010 | | | | | |--------------------------------------------------------------------------------| EURm | P&C | Life | Holding | Elimina- | Group || | insuran | insuran | | tion | || | ce | ce | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Insurance premius written | 1,416 | 348 | - | - | 1,764 |--------------------------------------------------------------------------------| Net income from | 117 | 214 | 25 | -2 | 354 || investments | | | | | |--------------------------------------------------------------------------------| Other operating income | 5 | 0 | 4 | -6 | 3 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Claims incurred | -710 | -208 | - | - | -918 |--------------------------------------------------------------------------------| Change in liabilities for | -467 | -292 | - | - | -759 || insurance and investment | | | | | || contracts | | | | | |--------------------------------------------------------------------------------| Staff costs | -122 | -9 | -4 | - | -135 |--------------------------------------------------------------------------------| Other operating expenses | -108 | -14 | -3 | 3 | -121 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Finance costs | -7 | -2 | -20 | 4 | -25 |--------------------------------------------------------------------------------| Share of associates' | 0 | 0 | 124 | - | 124 || profit/loss | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit before taxes | 125 | 36 | 126 | 0 | 287 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Taxes | -33 | -8 | -1 | 0 | -41 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit for the period | 92 | 27 | 126 | 0 | 245 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Other comprehensive | | | | | || income for the period | | | | | |--------------------------------------------------------------------------------| Exchange differences | 83 | 0 | - | - | 83 |--------------------------------------------------------------------------------| Available-for-sale | 181 | 145 | 2 | 0 | 328 || financial assets | | | | | |--------------------------------------------------------------------------------| Cash flow hedges | - | -2 | - | - | -2 |--------------------------------------------------------------------------------| Share of other | - | - | 27 | - | 27 || comprehensive income of | | | | | || associates | | | | | |--------------------------------------------------------------------------------| Income tax relating to | -47 | -37 | 0 | 0 | -85 || components of other | | | | | || comprehensive income | | | | | |--------------------------------------------------------------------------------| Other comprehensive | 216 | 106 | 29 | 0 | 351 || income for the period, | | | | | || net of tax | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| TOTAL COMPREHENSIVE | 308 | 133 | 154 | 0 | 596 || INCOME FOR THE PERIOD | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit attributable to | | | | | |--------------------------------------------------------------------------------| Owners of the parent | | | | | 245 |--------------------------------------------------------------------------------| Non-controlling interests | | | | | 0 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Total comprehensive | | | | | || income attributable to | | | | | |--------------------------------------------------------------------------------| Owners of the parent | | | | | 596 |--------------------------------------------------------------------------------| Non-controlling interests | | | | | 0 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| CONSOLIDATED INCOME | | | | | || STATEMENT BY SEGMENT FOR | | | | | || THREE MONTHS ENDED 31 | | | | | || MARCH 2009 | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| EURm | P&C | Life | Holding | Elimina- | Group || | insuran | insuran | | tion | || | ce | ce | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Insurance premius written | 1,327 | 144 | - | - | 1,470 |--------------------------------------------------------------------------------| Net income from | 102 | 50 | -6 | 19 | 165 || investments | | | | | |--------------------------------------------------------------------------------| Other operating income | 5 | 0 | 2 | -5 | 3 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Claims incurred | -630 | -187 | - | - | -818 |--------------------------------------------------------------------------------| Change in liabilities for | -435 | 45 | - | - | -390 || insurance and investment | | | | | || contracts | | | | | |--------------------------------------------------------------------------------| Staff costs | -106 | -7 | -2 | | -115 |--------------------------------------------------------------------------------| Other operating expenses | -110 | -15 | -6 | 3 | -129 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Finance costs | -8 | -3 | -9 | 2 | -17 |--------------------------------------------------------------------------------| Share of associates' | 0 | 0 | - | - | 0 || profit/loss | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit before taxes | 144 | 27 | -21 | 19 | 169 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Taxes | -36 | -6 | 6 | -5 | -42 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit for the period | 108 | 21 | -16 | 14 | 127 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Other comprehensive | | | | | || income for the period | | | | | |--------------------------------------------------------------------------------| Exchange differences | 10 | 0 | - | - | 10 |--------------------------------------------------------------------------------| Available-for-sale | -67 | -79 | -82 | -19 | -247 || financial assets | | | | | |--------------------------------------------------------------------------------| Cash flow hedges | - | 8 | - | - | 8 |--------------------------------------------------------------------------------| Income tax relating to | 17 | 18 | 2 | 5 | 42 || components of other | | | | | || comprehensive income | | | | | |--------------------------------------------------------------------------------| Other comprehensive | -39 | -53 | -80 | -14 | -186 || income for the period, | | | | | || net of tax | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| TOTAL COMPREHENSIVE | 69 | -32 | -96 | 0 | -59 || INCOME FOR THE PERIOD | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Profit attributable to | | | | | |--------------------------------------------------------------------------------| Owners of the parent | | | | | 127 |--------------------------------------------------------------------------------| Non-controlling interests | | | | | 0 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Total comprehensive | | | | | || income attributable to | | | | | |--------------------------------------------------------------------------------| Owners of the parent | | | | | -59 |--------------------------------------------------------------------------------| Non-controlling interests | | | | | 0 |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| CONSOLIDATED | | | | | || BALANCE SHEET BY | | | | | || SEGMENT AT 31 | | | | | || MARCH 2010 | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| EURm | P&C | Life | Holding | Elimin | Group || | insurance | insurance | | a-tion | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Assets | | | | | |--------------------------------------------------------------------------------| Property, plant | 22 | 5 | 5 | - | 33 || and equipment | | | | | |--------------------------------------------------------------------------------| Investment | 28 | 86 | 10 | - | 123 || property | | | | | |--------------------------------------------------------------------------------| Intangible assets | 550 | 167 | 0 | - | 717 |--------------------------------------------------------------------------------| Investments in | 9 | 0 | 5,184 | - | 5,193 || associates | | | | | |--------------------------------------------------------------------------------| Financial assets | 10,715 | 5,449 | 2,772 | -2,538 | 16,397 |--------------------------------------------------------------------------------| Investments | - | 2,656 | - | - | 2,656 || related to | | | | | || unit-linked | | | | | || insurance | | | | | || contracts | | | | | |--------------------------------------------------------------------------------| Tax assets | 50 | 0 | 10 | 1 | 60 |--------------------------------------------------------------------------------| Reinsurers' share | 475 | 4 | - | - | 479 || of insurance | | | | | || liabilities | | | | | |--------------------------------------------------------------------------------| Other assets | 1,710 | 177 | 332 | -26 | 2,193 |--------------------------------------------------------------------------------| Cash and cash | 550 | 99 | 183 | - | 832 || equivalents | | | | | |--------------------------------------------------------------------------------| Total assets | 14,108 | 8,643 | 8,496 | -2,564 | 28,683 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Liabilities | | | | | |--------------------------------------------------------------------------------| Liabilities for | 9,332 | 4,472 | - | - | 13,803 || insurance and | | | | | || investment | | | | | || contracts | | | | | |--------------------------------------------------------------------------------| Liabilities for | - | 2,645 | - | - | 2,645 || unit-linked | | | | | || insurance and | | | | | || investment | | | | | || contracts | | | | | |--------------------------------------------------------------------------------| Financial | 571 | 120 | 1,660 | -166 | 2,185 || liabilities | | | | | |--------------------------------------------------------------------------------| Tax liabilities | 456 | 136 | - | 0 | 592 |--------------------------------------------------------------------------------| Provisions | 33 | - | - | - | 33 |--------------------------------------------------------------------------------| Employee benefits | 101 | - | - | - | 101 |--------------------------------------------------------------------------------| Other liabilities | 748 | 244 | 138 | -26 | 1,104 |--------------------------------------------------------------------------------| Total liabilities | 11,241 | 7,616 | 1,798 | -192 | 20,463 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Equity | | | | | |--------------------------------------------------------------------------------| Share capital | | | | | 98 |--------------------------------------------------------------------------------| Reserves | | | | | 1,530 |--------------------------------------------------------------------------------| Retained earnings | | | | | 6,144 |--------------------------------------------------------------------------------| Other components | | | | | 446 || of equity | | | | | |--------------------------------------------------------------------------------| Equity | | | | | 8,219 || attributable to | | | | | || owners of the | | | | | || parent | | | | | |--------------------------------------------------------------------------------| Non-controlling | | | | | 0 || interests | | | | | |--------------------------------------------------------------------------------| Total equity | | | | | 8,219 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Total equity and | | | | | 28,683 || liabilities | | | | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| CONSOLIDATED | | | | | || BALANCE SHEET BY | | | | | || SEGMENT AT 31 | | | | | || DECEMBER 2009 | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| EURm | P&C | Life | Holding | Elimin | Group || | insurance | insurance | | a-tion | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Assets | | | | | |--------------------------------------------------------------------------------| Property, plant | 23 | 5 | 5 | - | 34 || and equipment | | | | | |--------------------------------------------------------------------------------| Investment | 28 | 87 | 10 | - | 124 || property | | | | | |--------------------------------------------------------------------------------| Intangible assets | 521 | 167 | 0 | - | 688 |--------------------------------------------------------------------------------| Investments in | 3 | 0 | 5,168 | - | 5,172 || associates | | | | | |--------------------------------------------------------------------------------| Financial assets | 10,248 | 5,216 | 2,554 | -2,538 | 15,479 |--------------------------------------------------------------------------------| Investments | - | 2,366 | - | - | 2,366 || related to | | | | | || unit-linked | | | | | || insurance | | | | | || contracts | | | | | |--------------------------------------------------------------------------------| Tax assets | 71 | - | 11 | 0 | 81 |--------------------------------------------------------------------------------| Reinsurers' share | 477 | 4 | - | - | 481 || of insurance | | | | | || liabilities | | | | | |--------------------------------------------------------------------------------| Other assets | 1,265 | 133 | 76 | -36 | 1,439 |--------------------------------------------------------------------------------| Cash and cash | 292 | 68 | 412 | - | 771 || equivalents | | | | | |--------------------------------------------------------------------------------| Total assets | 12,927 | 8,047 | 8,235 | -2,574 | 26,635 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Liabilities | | | | | |--------------------------------------------------------------------------------| Liabilities for | 8,583 | 4,431 | - | - | 13,014 || insurance and | | | | | || investment | | | | | || contracts | | | | | |--------------------------------------------------------------------------------| Liabilities for | - | 2,359 | - | - | 2,359 || unit-linked | | | | | || insurance and | | | | | || investment | | | | | || contracts | | | | | |--------------------------------------------------------------------------------| Financial | 524 | 132 | 1,609 | -166 | 2,098 || liabilities | | | | | |--------------------------------------------------------------------------------| Tax liabilities | 403 | 97 | - | - | 500 |--------------------------------------------------------------------------------| Provisions | 35 | - | - | - | 35 |--------------------------------------------------------------------------------| Employee benefits | 104 | - | - | - | 104 |--------------------------------------------------------------------------------| Other liabilities | 719 | 134 | 95 | -36 | 912 |--------------------------------------------------------------------------------| Total liabilities | 10,367 | 7,153 | 1,703 | -202 | 19,022 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Equity | | | | | |--------------------------------------------------------------------------------| Share capital | | | | | 98 |--------------------------------------------------------------------------------| Reserves | | | | | 1,530 |--------------------------------------------------------------------------------| Retained earnings | | | | | 5,889 |--------------------------------------------------------------------------------| Other components | | | | | 96 || of equity | | | | | |--------------------------------------------------------------------------------| Equity | | | | | 7,613 || attributable | | | | | || to owners of | | | | | || the parent | | | | | |--------------------------------------------------------------------------------| Non-controlli | | | | | 0 || ng interests | | | | | |--------------------------------------------------------------------------------| Total equity | | | | | 7,613 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Total equity and | | | | | 26,635 || liabilities | | | | | |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| OTHER NOTES | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| 1 INSURANCE PREMIUMS | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance | | |--------------------------------------------------------------------------------| | 1-3/2010 | 1-3/2009 |--------------------------------------------------------------------------------| Premiums from insurance contracts | | |--------------------------------------------------------------------------------| Premiums written, direct insurance | 1,487 | 1,396 |--------------------------------------------------------------------------------| Premiums written, assumed reinsurance | 20 | 26 |--------------------------------------------------------------------------------| Premiums written, gross | 1,507 | 1,422 |--------------------------------------------------------------------------------| Ceded reinsurance premiums written | -91 | -96 |--------------------------------------------------------------------------------| P&C Insurance, total | 1,416 | 1,327 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Change in unearned premium provision | -511 | -479 |--------------------------------------------------------------------------------| Reinsurers' share | 45 | 44 |--------------------------------------------------------------------------------| Premiums earned for P&C Insurance, total | 949 | 892 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | | |--------------------------------------------------------------------------------| | 1-3/2010 | 1-3/2009 |--------------------------------------------------------------------------------| Premiums from insurance contracts | | |--------------------------------------------------------------------------------| Premiums from contracts with discretionary | 111 | 54 || participation feature | | |--------------------------------------------------------------------------------| Premiums from unit-linked contracts | 101 | 50 |--------------------------------------------------------------------------------| Premiums from other contracts | 1 | 1 |--------------------------------------------------------------------------------| Insurance contracts, total | 213 | 104 |--------------------------------------------------------------------------------| Assumed reinsurance | 1 | 0 |--------------------------------------------------------------------------------| Premiums from investment contracts | | |--------------------------------------------------------------------------------| Premiums from contracts with discretionary | 0 | - || participation feature | | |--------------------------------------------------------------------------------| Premiums from unit-linked contracts | 137 | 43 |--------------------------------------------------------------------------------| Investment contracts, total | 137 | 43 |--------------------------------------------------------------------------------| Reinsurers' shares | -3 | -4 |--------------------------------------------------------------------------------| Life insurance, total | 348 | 144 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Single and regular premiums from direct | | || insurance | | |--------------------------------------------------------------------------------| Regular premiums, insurance contracts | 110 | 82 |--------------------------------------------------------------------------------| Single premiums, insurance contracts | 103 | 22 |--------------------------------------------------------------------------------| Single premiums, investment contracts | 137 | 43 |--------------------------------------------------------------------------------| Total | 350 | 147 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Group, total | 1,764 | 1,470 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| 2 NET INCOME FROM INVESTMENTS | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C Insurance | | |--------------------------------------------------------------------------------| | 1-3/2010 | 1-3/2009 |--------------------------------------------------------------------------------| Financial assets | | |--------------------------------------------------------------------------------| Derivative financial instruments | 4 | 44 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Financial assets designated as at fair value | | || through p/l | | |--------------------------------------------------------------------------------| Debt securities | 4 | 6 |--------------------------------------------------------------------------------| Equity securities | 2 | 0 |--------------------------------------------------------------------------------| Total | 6 | 6 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Loans and receivables | 3 | 5 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Financial asset available-for-sale | | |--------------------------------------------------------------------------------| Debt securities | 112 | 73 |--------------------------------------------------------------------------------| Equity securities | 9 | -9 |--------------------------------------------------------------------------------| Total | 121 | 64 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Total financial assets | 134 | 119 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Income from other assets | 0 | 0 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Fee and commission expense | -2 | -2 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Expense on other than financial liabilities | -1 | -1 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Effect of discounting annuities | -15 | -15 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance, total | 117 | 102 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | | |--------------------------------------------------------------------------------| | 1-3/2010 | 1-3/2009 |--------------------------------------------------------------------------------| Financial assets | | |--------------------------------------------------------------------------------| Derivative financial instruments | -31 | 16 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Financial assets designated as at fair value | | || through p/l | | |--------------------------------------------------------------------------------| Debt securities | 3 | 1 |--------------------------------------------------------------------------------| Equity securities | 0 | 0 |--------------------------------------------------------------------------------| Total | 3 | 1 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Investments related to unit-linked contracts | | |--------------------------------------------------------------------------------| Debt securities | 21 | 1 |--------------------------------------------------------------------------------| Equity securities | 120 | -17 |--------------------------------------------------------------------------------| Loans and receivables | 0 | 0 |--------------------------------------------------------------------------------| Other financial assets | -1 | -1 |--------------------------------------------------------------------------------| Total | 140 | -17 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Loans and receivables | 3 | 3 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Financial asset available-for-sale | | |--------------------------------------------------------------------------------| Debt securities | 58 | 56 |--------------------------------------------------------------------------------| Equity securities | 37 | -10 |--------------------------------------------------------------------------------| Total | 95 | 45 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Total income from financial assets | 211 | 48 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Other assets | 1 | 2 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Fee and commission income, net | 2 | 0 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance, total | 214 | 50 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Holding | | |--------------------------------------------------------------------------------| | 1-3/2010 | 1-3/2009 |--------------------------------------------------------------------------------| Financial assets | | |--------------------------------------------------------------------------------| Derivative financial instruments | 14 | 0 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Loans and other receivables | 9 | 1 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Financial assets available-for-sale | | |--------------------------------------------------------------------------------| Debt securities | 2 | 12 |--------------------------------------------------------------------------------| Equity securities | 0 | -18 |--------------------------------------------------------------------------------| Total | 2 | -7 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Other assets | 0 | 0 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Fee income, net | 0 | 0 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Holding, total | 25 | -6 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Elimination items between segments | -2 | 19 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Group, total | 354 | 165 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| 3 CLAIMS INCURRED | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance | 1-3/2010 | 1-3/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Claims paid | -726 | -629 |--------------------------------------------------------------------------------| Reinsurers' share | 60 | 34 |--------------------------------------------------------------------------------| Claims paid, net | -667 | -595 |--------------------------------------------------------------------------------| Change in provision for claims outstanding | 23 | -10 |--------------------------------------------------------------------------------| Reinsurers' share | -66 | -25 |--------------------------------------------------------------------------------| P&C Insurance total | -710 | -630 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | 1-3/2010 | 1-3/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Claims paid | -176 | -149 |--------------------------------------------------------------------------------| Reinsurers' share | 3 | 3 |--------------------------------------------------------------------------------| Claims paid, net | -174 | -146 |--------------------------------------------------------------------------------| Change in provision for claims outstanding | -35 | -41 |--------------------------------------------------------------------------------| Reinsurers' share | 0 | 0 |--------------------------------------------------------------------------------| Life insurance, total | -208 | -187 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Group, total | -918 | -818 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| 4 STAFF COSTS | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance | 1-3/2010 | 1-3/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Wages and salaries | -88 | -78 |--------------------------------------------------------------------------------| Granted cash-settled share options | 0 | 0 |--------------------------------------------------------------------------------| Pension costs | -15 | -15 |--------------------------------------------------------------------------------| Other social security costs | -18 | -13 |--------------------------------------------------------------------------------| P&C insurance, total | -122 | -106 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | 1-3/2010 | 1-3/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Wages and salaries | -6 | -5 |--------------------------------------------------------------------------------| Granted cash-settled share options | -1 | 0 |--------------------------------------------------------------------------------| Pension costs | -1 | -1 |--------------------------------------------------------------------------------| Other social security costs | -1 | 0 |--------------------------------------------------------------------------------| Life insurance, total | -9 | -7 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Holding | 1-3/2010 | 1-3/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Wages and salaries | -2 | -2 |--------------------------------------------------------------------------------| Granted cash-settled share options | -1 | 0 |--------------------------------------------------------------------------------| Pension costs | 0 | 0 |--------------------------------------------------------------------------------| Other social security costs | 0 | 0 |--------------------------------------------------------------------------------| Holding, total | -4 | -2 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Group, total | -135 | -115 |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| 5 INTANGIBLE ASSETS | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance | 03/2010 | 12/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Goodwill | 535 | 506 |--------------------------------------------------------------------------------| Customer relations | 5 | 6 |--------------------------------------------------------------------------------| Other intangible assets | 10 | 8 |--------------------------------------------------------------------------------| P&C Insurance, total | 550 | 521 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | 03/2010 | 12/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Goodwill | 153 | 153 |--------------------------------------------------------------------------------| Other intangible assets | 14 | 14 |--------------------------------------------------------------------------------| Life insurance, total | 167 | 167 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Holding | 03/2010 | 12/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Other intangible assets | 0 | 0 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Group, total | 717 | 688 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| 6 FINANCIAL ASSETS | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance | | |--------------------------------------------------------------------------------| | 03/2010 | 12/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Derivative financial instruments (Note 7) | 46 | 84 |--------------------------------------------------------------------------------| Financial assets designated as at fair value | | || through p/l | | |--------------------------------------------------------------------------------| Debt securities | 137 | 136 |--------------------------------------------------------------------------------| Equity securities | 21 | 27 |--------------------------------------------------------------------------------| Total | 158 | 163 |--------------------------------------------------------------------------------| Loans and receivables | | |--------------------------------------------------------------------------------| Loans | 51 | 2 |--------------------------------------------------------------------------------| Deposits with ceding undertakings | 1 | 1 |--------------------------------------------------------------------------------| Total | 52 | 3 |--------------------------------------------------------------------------------| Financial assets available-for-sale | | |--------------------------------------------------------------------------------| Debt securities | 9,030 | 8,797 |--------------------------------------------------------------------------------| Equity securities | 1,428 | 1,201 |--------------------------------------------------------------------------------| Total | 10,458 | 9,998 |--------------------------------------------------------------------------------| P&C insurance, total | 10,715 | 10,248 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | | |--------------------------------------------------------------------------------| | 03/2010 | 12/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Derivative financial instruments (Note 7) | 68 | 66 |--------------------------------------------------------------------------------| Financial assets designated as at fair value | | || through p/l | | |--------------------------------------------------------------------------------| Debt securities | 46 | 46 |--------------------------------------------------------------------------------| Equity securities | 11 | 4 |--------------------------------------------------------------------------------| Total | 58 | 50 |--------------------------------------------------------------------------------| Loans and receivables | | |--------------------------------------------------------------------------------| Loans | 26 | 24 |--------------------------------------------------------------------------------| Deposits with ceding undertakings | 2 | 2 |--------------------------------------------------------------------------------| Total | 28 | 26 |--------------------------------------------------------------------------------| Financial assets available-for-sale | | |--------------------------------------------------------------------------------| Debt securities | 3,325 | 3,289 |--------------------------------------------------------------------------------| Equity securities *) | 1,971 | 1,785 |--------------------------------------------------------------------------------| Total | 5,296 | 5,074 |--------------------------------------------------------------------------------| Life insurance, total | 5,449 | 5,216 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| *) of which investments in interest funds | 124 | 157 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Holding | | |--------------------------------------------------------------------------------| | 03/2010 | 12/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Derivative financial instruments (Note 7) | 28 | 12 |--------------------------------------------------------------------------------| Loans and receivables | | |--------------------------------------------------------------------------------| Deposits | 1 | 1 |--------------------------------------------------------------------------------| Financial assets available-for-sale | | |--------------------------------------------------------------------------------| Debt securities | 337 | 135 |--------------------------------------------------------------------------------| Equity securities | 37 | 36 |--------------------------------------------------------------------------------| Total | 374 | 172 |--------------------------------------------------------------------------------| Investments in subsidiaries | 2,370 | 2,370 |--------------------------------------------------------------------------------| Holding, total | 2,772 | 2,554 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Elimination items between segments | -2,538 | -2,538 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Group, total | 16,397 | 15,479 |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| 7 DERIVATIVE | | | | | | || FINANCIAL | | | | | | || INSTRUMENTS | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance | | 03/201 | | | 12/2009 | || | | 0 | | | | |--------------------------------------------------------------------------------| | | Fair | Fair | | Fair | Fair || | | value | value | | value | value |--------------------------------------------------------------------------------| | Contrac | Assets | Liabilit | Contrac | Assets | Liabili || | t/ | | ies | t/ | | ties || | notiona | | | notiona | | || | l | | | l | | || | amount | | | amount | | |--------------------------------------------------------------------------------| Derivatives held | | | | | | || for trading | | | | | | |--------------------------------------------------------------------------------| Interest rate | 1 208 | 15 | 2 | 849 | 22 | 0 || derivatives | | | | | | |--------------------------------------------------------------------------------| Foreign exchange | 3 856 | 30 | 133 | 3 365 | 62 | 88 || derivatives | | | | | | |--------------------------------------------------------------------------------| Equity | 64 | 1 | - | 1 | - | 0 || derivatives | | | | | | |--------------------------------------------------------------------------------| Total | 5 128 | 46 | 135 | 4 215 | 84 | 88 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Derivatives held | | | | | | || for hedging | | | | | | |--------------------------------------------------------------------------------| Fair value | 199 | 0 | 0 | 217 | 0 | 0 || hedges | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C Insurance, | 5 327 | 46 | 135 | 4 432 | 84 | 89 || total | | | | | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | | 03/201 | | | 12/2009 | || | | 0 | | | | |--------------------------------------------------------------------------------| | | Fair | Fair | | Fair | Fair || | | value | value | | value | value |--------------------------------------------------------------------------------| | Contrac | Assets | Liabilit | Contrac | Assets | Liabili || | t/ | | ies | t/ | | ties || | notiona | | | notiona | | || | l | | | l | | || | amount | | | amount | | |--------------------------------------------------------------------------------| Derivatives held | | | | | | || for trading | | | | | | |--------------------------------------------------------------------------------| Interest rate | 1 640 | 43 | 4 | 1 406 | 51 | 3 || derivatives | | | | | | |--------------------------------------------------------------------------------| Foreign exchange | 962 | 8 | 8 | 852 | 4 | 29 || derivatives | | | | | | |--------------------------------------------------------------------------------| Commodity | 89 | 6 | 4 | 14 | - | 0 || derivatives | | | | | | |--------------------------------------------------------------------------------| Total | 2 691 | 56 | 17 | 2 272 | 54 | 32 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Derivatives held | | | | | | || for hedging | | | | | | |--------------------------------------------------------------------------------| Cash flow hedges | 118 | 12 | - | 365 | 12 | - |--------------------------------------------------------------------------------| Fair value | 325 | 0 | 3 | 227 | - | - || hedges | | | | | | |--------------------------------------------------------------------------------| Total | 443 | 12 | 3 | 591 | 12 | - |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance, | 3 134 | 68 | 20 | 2 863 | 66 | 32 || total | | | | | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Holding | | 03/201 | | | 12/2009 | || | | 0 | | | | |--------------------------------------------------------------------------------| | | Fair | Fair | | Fair | Fair || | | value | value | | value | value |--------------------------------------------------------------------------------| | Contrac | Assets | Liabilit | Contrac | Assets | Liabili || | t/ | | ies | t/ | | ties || | notiona | | | notiona | | || | l | | | l | | || | amount | | | amount | | |--------------------------------------------------------------------------------| Derivatives held | | | | | | || for trading | | | | | | |--------------------------------------------------------------------------------| Interest rate | 975 | 22 | - | 975 | 7 | - || derivatives | | | | | | |--------------------------------------------------------------------------------| Exchange | 38 | 1 | 0 | 48 | 1 | 0 || derivatives | | | | | | |--------------------------------------------------------------------------------| Equity | 54 | 5 | 8 | 42 | 4 | 7 || derivatives | | | | | | |--------------------------------------------------------------------------------| Total | 1 068 | 28 | 8 | 1 065 | 12 | 7 |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| 8 INVESTMENTS RELATED TO UNIT-LINKED INSURANCE | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | | |--------------------------------------------------------------------------------| | 03/2010 | 12/2009 |--------------------------------------------------------------------------------| Financial assets as at fair value through p/l | | |--------------------------------------------------------------------------------| Debt securities | 454 | 365 |--------------------------------------------------------------------------------| Equity securities | 2,103 | 1,923 |--------------------------------------------------------------------------------| Loans and receivables | 85 | 70 |--------------------------------------------------------------------------------| Derivatives | 12 | 8 |--------------------------------------------------------------------------------| Life insurance, total | 2,656 | 2,366 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| 9 LIABILITIES FOR INSURANCE AND INVESTMENT | | || CONTRACTS | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance | | |--------------------------------------------------------------------------------| | 03/2010 | 12/2009 |--------------------------------------------------------------------------------| Insurance contracts | | |--------------------------------------------------------------------------------| Provision for unearned premiums | 2,224 | 1,668 |--------------------------------------------------------------------------------| Provision for claims outstanding | 7,108 | 6,915 |--------------------------------------------------------------------------------| P&C Insurance, total | 9,332 | 8,583 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Reinsurers' share | | |--------------------------------------------------------------------------------| Provision for unearned premiums | 96 | 49 |--------------------------------------------------------------------------------| Provision for claims outstanding | 379 | 428 |--------------------------------------------------------------------------------| P&C Insurance, total | 475 | 477 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | | |--------------------------------------------------------------------------------| | 03/2010 | 12/2009 |--------------------------------------------------------------------------------| Insurance contracts | | |--------------------------------------------------------------------------------| Liabilities for contracts with DPF | | |--------------------------------------------------------------------------------| Provision for unearned premiums | 2,527 | 2,513 |--------------------------------------------------------------------------------| Provision for claims outstanding | 1,877 | 1,844 |--------------------------------------------------------------------------------| Total | 4,404 | 4,358 |--------------------------------------------------------------------------------| Liabilities for contracts without DPF | | |--------------------------------------------------------------------------------| Provision for unearned premiums | 13 | 13 |--------------------------------------------------------------------------------| Provision for claims outstanding | 0 | 0 |--------------------------------------------------------------------------------| Total | 14 | 13 |--------------------------------------------------------------------------------| Total | 4,418 | 4,371 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Assumed reinsurance | | |--------------------------------------------------------------------------------| Provision for unearned premiums | 1 | 1 |--------------------------------------------------------------------------------| Provision for claims outstanding | 2 | 2 |--------------------------------------------------------------------------------| Total | 3 | 3 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Insurance contracts, total | | |--------------------------------------------------------------------------------| Provision for unearned premiums | 2,541 | 2,528 |--------------------------------------------------------------------------------| Provision for claims outstanding | 1,879 | 1,846 |--------------------------------------------------------------------------------| Total | 4,421 | 4,374 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Investment contracts | | |--------------------------------------------------------------------------------| Liabilities for contracts with DPF | | |--------------------------------------------------------------------------------| Provision for unearned premiums | 51 | 57 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Liabilities for insurance and investment | | || contracts, total | | |--------------------------------------------------------------------------------| Provision for unearned premiums | 2,592 | 2,585 |--------------------------------------------------------------------------------| Provision for claims outstanding | 1,879 | 1,846 |--------------------------------------------------------------------------------| Life insurance, total | 4,472 | 4,431 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Recoverable from reinsurers | | |--------------------------------------------------------------------------------| Provision for unearned premiums | 0 | 0 |--------------------------------------------------------------------------------| Provision for claims outstanding | 4 | 4 |--------------------------------------------------------------------------------| Life insurance, total | 4 | 4 |-------------------------------------------------------------------------------- Investment contracts do not include a provision for claims outstanding. Liability adequacy test does not give rise to supplementary claims. Exemption allowed in IFRS 4 Insurance contracts has been applied to investment contracts with DPF or contracts with a right to trade-off for an investment contract with DPF. These investment contracts have been valued like insurance contracts. --------------------------------------------------------------------------------| Group, total | 13,803 | 13,014 |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| 10 LIABILITIES FROM UNIT-LINKED INSURANCE AND | | || INVESTMENT CONTRACTS | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | 03/2010 | 12/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Unit-linked insurance contracts | 2,123 | 1,961 |--------------------------------------------------------------------------------| Unit-linked investment contracts | 522 | 398 |--------------------------------------------------------------------------------| Life insurance, total | 2,645 | 2,359 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| 11 FINANCIAL LIABILITIES | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance | 03/2010 | 12/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Derivative financial instruments (Note 7) | 135 | 89 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Subordinated debt securities | | |--------------------------------------------------------------------------------| Subordinated loans | 436 | 435 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance, total | 571 | 524 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | 03/2010 | 12/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Derivative financial instruments (Note 7) | 20 | 32 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Subordinated debt securities | | |--------------------------------------------------------------------------------| Subordinated loans | 100 | 100 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance, total | 120 | 132 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Holding | 03/2010 | 12/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Derivative financial instruments (Note 7) | 8 | 7 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Debt securities in issue | | |--------------------------------------------------------------------------------| Commercial papers | 525 | 466 |--------------------------------------------------------------------------------| Bonds | 991 | 962 |--------------------------------------------------------------------------------| Total | 1,516 | 1,429 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Subordinated debt securities | | |--------------------------------------------------------------------------------| Debentures | - | 37 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Other | | |--------------------------------------------------------------------------------| Pension loan | 130 | 130 |--------------------------------------------------------------------------------| Other | 6 | 6 |--------------------------------------------------------------------------------| Total | 136 | 136 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Holding, total | 1,660 | 1,609 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Elimination items between segments | -166 | -166 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Group, total | 2,185 | 2,098 |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| 12 CONTINGENT LIABILITIES | | | | || AND COMMITMENTS | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| P&C insurance | | | | |--------------------------------------------------------------------------------| | 03/2010 | 12/2009 | | |--------------------------------------------------------------------------------| Off-balance sheet items | | | | |--------------------------------------------------------------------------------| Guarantees | 18 | 19 | | |--------------------------------------------------------------------------------| Other irrevocable | 57 | 69 | | || commitments | | | | |--------------------------------------------------------------------------------| Total | 75 | 88 | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Assets pledged as | | | | || collateral for liabilities | | | | || or contingent liabilities | | | | |--------------------------------------------------------------------------------| | 03/2010 | 03/2010 | 12/2009 | 12/2009 |--------------------------------------------------------------------------------| Assets pledged as | Assets | Liabilities | Assets | Liabilities/ || collateral | pledged | / commit- | pledged | commit- || | | ments | | ments |--------------------------------------------------------------------------------| Cash at balances at | 9 | 7 | 9 | 7 || central banks | | | | |--------------------------------------------------------------------------------| Investments | | | | |--------------------------------------------------------------------------------| - Investment securities | 134 | 110 | 124 | 101 |--------------------------------------------------------------------------------| Total | 143 | 117 | 133 | 108 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Non-cancellable operating | 03/2010 | 12/2009 | | || leases | | | | |--------------------------------------------------------------------------------| Minimum lease payments | | | | |--------------------------------------------------------------------------------| not later than one year | 32 | 32 | | |--------------------------------------------------------------------------------| later than one year and | 80 | 82 | | || not later than five years | | | | |--------------------------------------------------------------------------------| later than five years | 105 | 106 | | |--------------------------------------------------------------------------------| Total | 218 | 220 | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Life insurance | | | | |--------------------------------------------------------------------------------| | 03/2010 | 12/2009 | | |--------------------------------------------------------------------------------| Off-balance sheet items | | | | |--------------------------------------------------------------------------------| Fund commitments | 431 | 357 | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| | 03/2010 | 12/2009 | | |--------------------------------------------------------------------------------| Other commitments | | | | |--------------------------------------------------------------------------------| Acquisition of IT-software | 0 | 0 | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Non-cancellable operating | 03/2010 | 12/2009 | | || leases | | | | |--------------------------------------------------------------------------------| Minimum lease payments | | | | |--------------------------------------------------------------------------------| not later than one year | 2 | 2 | | |--------------------------------------------------------------------------------| later than one year and | 7 | 7 | | || not later than five years | | | | |--------------------------------------------------------------------------------| later than five years | 0 | 1 | | |--------------------------------------------------------------------------------| Total | 9 | 10 | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| Holding | | | | |--------------------------------------------------------------------------------| | 03/2010 | 12/2009 | | |--------------------------------------------------------------------------------| Off-balance sheet items | | | | |--------------------------------------------------------------------------------| Fund commitments | 3 | 3 | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Assets pledged as | | | | || collateral for liabilities | | | | || or contingent liabilities | | | | |--------------------------------------------------------------------------------| | 03/2010 | 03/2010 | 12/2009 | 12/2009 |--------------------------------------------------------------------------------| 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 | 03/2010 | 12/2009 | | || leases | | | | |--------------------------------------------------------------------------------| Minimum lease payments | | | | |--------------------------------------------------------------------------------| not later than one year | 1 | 1 | | |--------------------------------------------------------------------------------| later than one year and | 3 | 3 | | || not later than five years | | | | |--------------------------------------------------------------------------------| later than five years | 2 | 2 | | |--------------------------------------------------------------------------------| Total | 6 | 7 | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| 13 RESULT ANALYSIS OF P&C | | | | || INSURANCE BUSINESS | | | | |--------------------------------------------------------------------------------| | | | | |--------------------------------------------------------------------------------| | 1-3/201 | 1-3/2009 | | || | 0 | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Premiums earned | 949 | 892 | | |--------------------------------------------------------------------------------| Claims incurred | -772 | -687 | | |--------------------------------------------------------------------------------| Operating expenses | -160 | -153 | | |--------------------------------------------------------------------------------| Other technical income and | 0 | 0 | | || expenses | | | | |--------------------------------------------------------------------------------| Allocated investment | 51 | 53 | | || return transferred from | | | | || the non-technical account | | | | |--------------------------------------------------------------------------------| Technical result | 68 | 105 | | |--------------------------------------------------------------------------------| Investment result | 125 | 109 | | |--------------------------------------------------------------------------------| Allocated investment | -66 | -68 | | || return transferred to the | | | | || technical account | | | | |--------------------------------------------------------------------------------| Other income and expenses | -2 | -2 | | |--------------------------------------------------------------------------------| Operating result | 125 | 144 | | |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------| 14 SAMPO PLC'S INCOME STATEMENT AND BALANCE SHEET | | || (FAS) | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| INCOME STATEMENT | | |--------------------------------------------------------------------------------| | 1-3/2010 | 1-3/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Other operating income | 4 | 3 |--------------------------------------------------------------------------------| Staff expenses | -4 | -2 |--------------------------------------------------------------------------------| Depreciation and impairment | 0 | 0 |--------------------------------------------------------------------------------| Other operating expenses | -3 | -6 |--------------------------------------------------------------------------------| Operating profit | -3 | -5 |--------------------------------------------------------------------------------| Finance income and expenses | 209 | -15 |--------------------------------------------------------------------------------| Profit before appropriations and income taxes | 206 | -21 |--------------------------------------------------------------------------------| Income taxes | -1 | 6 |--------------------------------------------------------------------------------| Profit for the financial period | 206 | -15 |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| BALANCE SHEET | 03/2010 | 12/2009 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| ASSETS | | |--------------------------------------------------------------------------------| Non-current assets | | |--------------------------------------------------------------------------------| Intangible assets | 1 | 1 |--------------------------------------------------------------------------------| Property, plant and equipment | 4 | 4 |--------------------------------------------------------------------------------| Investments | | |--------------------------------------------------------------------------------| Shares in Group companies | 2,370 | 2,370 |--------------------------------------------------------------------------------| Receivables from Group companies | 122 | 122 |--------------------------------------------------------------------------------| Shares in participating undertakings | 5,226 | 5,168 |--------------------------------------------------------------------------------| Receivables from participating undertakings | 50 | - |--------------------------------------------------------------------------------| Other shares and participations | 42 | 14 |--------------------------------------------------------------------------------| Other receivables | 165 | 41 |--------------------------------------------------------------------------------| Receivables | 368 | 98 |--------------------------------------------------------------------------------| Cash and cash equivalents | 183 | 412 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| TOTAL ASSETS | 8,531 | 8,229 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| LIABILITIES | | |--------------------------------------------------------------------------------| Equity | | |--------------------------------------------------------------------------------| Share capital | 98 | 98 |--------------------------------------------------------------------------------| Fair value reserve | -2 | -3 |--------------------------------------------------------------------------------| Invested unrestricted equity | 1,527 | 1,527 |--------------------------------------------------------------------------------| Other reserves | 273 | 273 |--------------------------------------------------------------------------------| Retained earnings | 4,640 | 4,108 |--------------------------------------------------------------------------------| Profit for the year | 206 | 531 |--------------------------------------------------------------------------------| Total equity | 6,741 | 6,534 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| Liabilities | | |--------------------------------------------------------------------------------| Long-term | 1,121 | 1,129 |--------------------------------------------------------------------------------| Short-term | 669 | 567 |--------------------------------------------------------------------------------| Total liabilities | 1,790 | 1,696 |----------------------------------------------------------------------------------------------------------------------------------------------------------------| TOTAL LIABILITIES | 8,531 | 8,229 |-------------------------------------------------------------------------------- News Source: NASDAQ OMX 05.05.2010 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: QRFLSE Ticker: 0HAGSequence Number: 474Time of Receipt: May 05, 2010 08:30:03 End of Announcement DGAP News-Service ---------------------------------------------------------------------------

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