Morgan Stanley Financial Services Conference

Transcription

1 Morgan Stanley Financial Services Conference Group CEO and President, Björn Wahlroos April 1 st, 2009

2 Sampo Group s History The 21st century in Sampo Group has been reflected by several structural changes. Sampo Group took its current form in February 2007, when the divestment of Sampo Bank Group to Danske Bank A/S was closed. The timeline below outline the largest changes in Sampo Group during the 21st century Sampo Insurance Company and Leonia merge into the Sampo- Leonia financial services group. The Group s business areas are longterm savings (life insurance, asset management and mutual funds), banking, investment banking, and P&C insurance. Mandatum Bank joins the Group, and the Group s name is shortened to Sampo Sampo s P&C insurance operations are merged with If. Following the transaction, Sampo owns 38 per cent of If s stock If becomes fully owned by Sampo. Following the share transaction, Sampo has three core businesses: P&C insurance, banking and longterm savings. Sampo Group divests Sampo Bank Group to Danske Bank A/S. Following the transaction, Sampo s business areas are P&C insurance and life insurance. In addition, Sampo plc has investment assets of approximately Eur 5 billion. Sampo received approval to increase its ownership in Nordea beyond 10% in February Currently, Sampo holds ca. 15% of Nordea 2

3 Sampo Group Business Mix Life insurance 16 % Profit before tax FY 2008 Holding 21 % P&C insurance 63 % Comments If P&C is the largest contributor to Group pre tax profits In 2008 the P&C insurance business generated EUR 549m in pre tax profits If is the largest P&C insurer in the Nordics with significant market shares in Norway, Sweden and Finland Mandatum Life generated 16% of Group pre tax profit Mandatum Life contributed with EUR 140m in pre tax profit in FY 2008 Mandatum Life is a leading life and pension insurer in Finland The holding company pre tax profit was EUR 180m in FY

4 Sampo Group s net asset value per share and cumulative dividends EUR / / / / /2008 4

5 Changes in Group NAV, year 2008 EURm 8,000 7,000 6,000-2,681 5, ,000 7, ,000 2,000 4,647 1,000 0 Group NAV 1 Jan 2008 Change in FVR Currency changes (SEK) Profit for the year Dividends and share buy-backs Other Group NAV 31 Dec

6 Sampo Group Investments at YE 2008 Allocation of investment assets, Sampo Group, If P&C, Mandatum Life and Sampo plc Sampo Group, EUR 16,502 million IF P&C, EUR 8,956 million Mandatum Life, EUR 4,728 million Sampo plc, EUR 2,818 million Fixed income 80.2% Equities, Nordea 9.7% Equities, other 6.7% Private equity 1.6% Real estate 1.2% Hedge funds 0.6% Fixed income 94.5% Equities 4.9% Private equity 0.2% Real estate 0.4% Fixed income 77.7% Equities 12.3% Private equity 4.7% Real estate 3.3% Hedge funds 2.0% Fixed income 39.0% Equities, Nordea 56.0% Equities, other 3.8% Private equity 0.7% Real estate 0.5% 6

7 Group economic capital and solvency 2008 According to Solvency II (99.5% percentile results) EURm 4,500 Liability side adjustments, If and Mandatum Life 4, ,000 Sampo Group 3,452 Excess capital EUR 2,128m 1, , P&C Life Holding Diversif. Group Economic Capital Adj. Group Solv. Capital 7

8 Major Nordic P&C insurance players Nordic P&C GWP 2008 If Bn SEK 39.0 TrygVesta Gjensidige Codan Länsförsäkringar Topdanmark Pohjola Folksam Tapiola Alm brand Sparebank1 Fennia Source: National insurance associations, annual reports 8

9 Nordic P&C Insurance Market is Resilient Experiences from the Swedish economic crisis in show notable P&C market resilience Despite steady annual GDP weakening in the annual GWPs increased and the risk ratio came down 30,000 25,000 20,000 15,000 24,270 24,910 25,237 25,925 25, % 67 % 61 % 60 % 61 % GWP development 1) Risk ratio development 2) 80 % 70 % 60 % 50 % 4.0 % 4.0 % -1.1 % -1.2 % -2.1 % GDP growth Sources: Swedish central bank, The Swedish Insurance Federation. 1) Gross Written Premiums (GWP) for total market GWP for motor, home and property insurance, 2) Total claims paid for motor, home and property insurance policies. 9

10 Mandatum Life Market Share and Technical Reserves Market share in Finland Technical reserves: traditional vs. unit-linked 40 % EURm 7, % 6, % 25 % 20 % 5,000 4, % 3, % 2,000 5 % 1,000 0 % All products Unit-linked Guaranteed interest rates Unit-linked In 2008 ca. 85% of new life insurance sales came from unit-linked products Falling asset values reduced the amount of unit-linked technical reserves in

11 Nordic financial groups share price development Share price development 1 April March =100,log.scale,local currency Nordea SEB Storebrand Sampo Swedbank Topdanmark Source: Reuters EcoWin Source: Reuters Ecowin 11

12 Nordea s rights offering in brief Subscription price: EUR 1.81, SEK 20.75, DKK Discount: 44% relative to theoretical ex-rights price Number of subscription rights per existing ordinary share: 11 Number of rights entitling to subscription of one new ordinary share: March 2009 First trading day ex subscription rights 17 March 2009 Record date to participate in new rights offering 20 March 31 March Trading in subscription rights (in Finland March) 20 March 3 April 2009 Subscription period Subscription rights expire without value after 3 April 8 April 2009 Announcement of preliminary outcome of rights offering 17 April 2009 Announcement of final outcome of rights offering 12

13 Sampo is one of the largest financial groups in the Nordic area measured by market cap 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 Nordea 16,172 Investor Handelsbanken Sampo S E B DnB NOR Danske Bank TrygVesta Industrivärden 7,358 7,103 6,526 5,668 4,772 4,635 2,593 2,050 Market Cap , EURm +Pref.shares Swedbank Topdanmark Storebrand Jyske Bank Pohjola Bank 1,369 1,259 1, ,059 Alm.Brand

14 Sampo A share listed for 20 years Share price and total return development 14 January March 2009 Total Return Close Price 14 14/01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/2010 Source: EcoWin, NASDAQ OMX Helsinki, Sampo EUR 14/01/ /01/1989

15 Morgan Stanley Financial Services Conference Group CEO and President, Björn Wahlroos April 4 th, 2009