Contents. Sampo Group Interim Report January September Contents. Summary 3

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2 Contents Contents Summary 3 THIRD quarter 2013 in brief 4 Business areas 5 P&C insurance 5 Associated company Nordea Bank Ab 8 Life insurance 10 Holding 12 Other developments 13 Personnel 13 Remuneration 13 Shares and share capital 14 Internal dividends 14 Ratings 14 Group solvency 15 Debt financing 16 Outlook for the rest of Major risks and uncertainties to the Group in the near term 17 Tables 30 september Group financial review 19 Calculation of key figures 20 Group quarterly comprehensive income statement 22 Consolidated comprehensive income statement, IFRS 23 Consolidated balance sheet, IFRS 24 Statement of changes in equity, IFRS 25 Statement of cash flows, IFRS 26 Notes 27 Accounting policies 27 Comprehensive income statement by segment for nine months ended 30 September Comprehensive income statement by segment for nine months ended 30 September Consolidated balance sheet by segment at 30 September Consolidated balance sheet by segment at 31 December Other notes 32 1 Insurance premiums 32 2 Net income from investments 33 3 Claims incurred 36 4 Staff costs 37 5 Intangible assets 38 6 Financial assets 39 7 Derivative financial instruments 41 8 Determination and hierarchy of fair values 42 9 Movements in level 3 financial instruments measured at fair value Sensitivity analysis of level 3 financial instruments measured at fair value Investments related to unit-linked insurance Liabilities for insurance and investment contracts Liabilities from unit-linked insurance and investment contracts Financial liabilities Contingent liabilities and commitments Result analysis of P&C insurance business Sampo plc s income statement and balance sheet (FAS)

3 Summary SAMPO PLC INTERIM REPORT 5 November 2013 Sampo Group s results for January September 2013 Sampo Group s Interim Report for JANUARY SEPTEMBER 2013 Sampo Group s profit before taxes for January September 2013 rose to EUR 1,228 million (1,183). The total comprehensive income for the period, taking changes in the market value of assets into account, decreased to EUR 1,112 million (1,425). Earnings per share amounted to EUR 1.88 (1.81) and mark-to-market EPS was EUR 1.99 per share (2.55). The return on equity for the Group was 14.6 per cent for the period (20.6). Net asset value per share at the end of the third quarter of 2013 was EUR (17.38) and the fair value reserve after tax on the Group level strengthened to EUR 893 million (749). The combined ratio of the P&C insurance operations improved further to 88.2 per cent (88.9) for the first three quarters of The profit before taxes amounted to EUR 700 million (660). Comprehensive income for the period decreased to EUR 586 million (763) and return on equity was 26.0 per cent (38.9). Nordea is accounted for as an associated company and Sampo s share of Nordea s profit for January September 2013 amounted to EUR 477 million (466). Profit before taxes for the life insurance operations rose to EUR 103 million (98). The interest rate used to discount with profit liabilities in 2015 was lowered to 3 per cent. The discount rate used in 2013 and 2014 was already earlier lowered to 2.5 per cent. The comprehensive income decreased to EUR 137 million (218). The return on equity at market value was 15.7 per cent (29.9). KEY FIGURES EURm 1 9/ /2012 Change, % 7 9/ /2012 Change, % Profit before taxes 1,228 1, P&C insurance Associate (Nordea) Life insurance Holding (excl. Nordea) Profit for the period 1,055 1, Change Change Earnings per share, EUR EPS (incl.change in FVR), EUR NAV per share, EUR *) Average number of staff (FTE) 6,815 6, Group solvency ratio, % *) RoE, % *) comparison figure from 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 2012 unless otherwise stated. Due to the adoption of the revised accounting standard IAS 19 on Employee benefits, the comparison figures for 2012 have been restated and differ from the earlier published figures. The changes concern directly the P&C insurance segment but are consequently reflected in the consolidated items as well. The average EUR-SEK exchange rate used for income statement items for January - September 2013 is and the end of period exchange rate used for balance sheet items is

4 Third quarter 2013 in brief THIRD QUARTER 2013 IN BRIEF Sampo Group s profit before taxes for the third quarter of 2013 increased 9 per cent to EUR 403 million (370). Earnings per share amounted to EUR 0.62 (0.56). Mark-to-market earnings per share were EUR 0.95 (1.03). The net asset value per share grew in the third quarter of 2013 to EUR from EUR at the end of June Insurance technical profitability in the P&C operations was excellent and the combined ratio amounted to 87.2 per cent (89.0) for the third quarter. Profit before taxes increased to EUR 227 million (208). Share of the profits of the associated company Topdanmark amounted to EUR 8 million (8). Sampo s share of Nordea s third quarter 2013 net profit amounted to EUR 158 million (140). Nordea continued to focus on income, cost and capital initiatives. Core tier one capital ratio rose to 14.4 per cent. Profit before taxes for the life insurance operations amounted to EUR 34 million (33). Premiums written increased 29 per cent to EUR 238 million (185). The interest rate used for discounting all with profit liabilities was lowered to 3.0 per cent for The discount rate for 2013 and 2014 was already earlier lowered to 2.5 per cent

5 Business areas 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. 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 and the Baltic countries. If s operations are divided into four business areas: Private, Commercial, Industrial and Baltic. Results EURm 1 9/ /2012 Change, % 7 9/ /2012 Change, % Premiums, net 3,643 3, Net income from investments Other operating income Claims incurred -2,223-2, Change in insurance liabilities Staff costs Other operating expenses Finance costs Share of associates profit/loss Profit before taxes Key figures Change Change Combined ratio, % Risk ratio, % Cost ratio, % Expense ratio, % Return on equity, % Average number of staff (FTE) 6,215 6, Profit before taxes for P&C insurance rose to EUR 700 million (660) for January - September Combined ratio improved further and amounted to 88.2 per cent (88.9). Risk ratio decreased 0.6 percentage points as both frequency and large claims developed favorably. EUR 49 million (100) was released from technical reserves relating to prior year claims. Technical result amounted to EUR 453 million (438) and improved in all business areas except Baltic, amounting to EUR 272 million (264) for Private, EUR 122 million (119) for Commercial and EUR 33 million (19) for business area Industrial. The technical result for business area Baltic decreased slightly to EUR 12 million (14)

6 Business areas Return on equity (RoE) decreased to 26.0 per cent (38.9) due to the lower investment returns. Fair value reserve on 30 September 2013 increased from the end of 2012 to EUR 449 million (364). Topdanmark s profit contribution for January-September 2013 was EUR 42 million (36). On 30 September 2013 If P&C held altogether 31,476,920 Topdanmark shares, corresponding to over 25 per cent of all shares. The increase in the number of shares held is due to the 1:10 share split that Topdanmark conducted with effect from 13 March All Topdanmark shares held by Sampo Group have as of 18 June 2013 been concentrated in If P&C Insurance Holding Ltd (publ). Combined ratio,% Risk ratio,% 1 9/ /2012 Change 1 9/ /2012 Change Private Commercial Industrial Baltic Sweden Norway Finland Denmark Combined ratio,% Risk ratio,% 7 9/ /2012 Change 7 9/ /2012 Change Private Commercial Industrial Baltic Sweden Norway Finland Denmark Fewer large claims than at the comparison period January September 2012 and benign weather conditions largely explain good development in all business areas. Combined ratios for business areas Industrial and Baltic developed favorably in the third quarter of 2013 improving by 11.3 and 6.9 percentage points, respectively. In Denmark risk ratio improved significantly as the comparison period contains significant large claims. All in all large claims costs for the whole - 6 -

7 Business areas Investment allocation P&C insurance, 30 September 2013 TOTAL 12.0 EUR BILLION Long-term fixed income 81% Equities 11% Money market 7% Other 1% If Group were EUR 8 million higher than expected in January-September 2013, a significant decrease compared to the same period last year. Gross written premiums increased 2.8 per cent to EUR 3,845 million (3,739). Adjusted for currency, premiums rose 2.9 per cent. All business areas except business area Industrial had positive growth. Cost ratio remained stable at 22.8 per cent but expense ratio increased 0.1 percentage point to 16.8 per cent. Cost and expense ratios for comparison period have been restated due to adoption of the revised IAS 19 accounting standard regarding employee benefits. The effect of the technical adjustments reduced January September 2012 cost ratio by 0.5 percentage point. At the end of September 2013 the total investment assets of If P&C amounted to EUR 12.0 billion (11.7). Net income from investments amounted to EUR 278 million (283). Investment return mark-to-market for January-September 2013 was 3.7 per cent (5.0). Duration for interest bearing assets was 1.3 years (1.3) and average maturity 2.3 years (2.5). Fixed income running yield was 3.0 per cent (3.6). If P&C s solvency ratio as at 30 September 2013 (solvency capital in relation to net written premiums) amounted to 88 per cent (75). Solvency capital amounted to EUR 4,002 million (3,359). Reserve ratios remained sound and were 161 per cent (163) of net written premiums and 232 per cent (222) of claims paid. The cooperation between Nordea and If was launched in the summer of 2013 in Sweden and Finland. The sales results of the first few weeks look very promising. The integration of the business of the acquired Tryg branch in Finland is progressing according to plan

8 Business areas Associated company Nordea Bank Ab Nordea Bank is the largest Nordic bank and among the ten largest universal banks in Europe in terms of total market capitalization. The bank is headquartered in Stockholm, Sweden, and has around 11 million customers. The Nordea share is listed on the NASDAQ OMX Nordic Exchange in Stockholm, Helsinki and Copenhagen. Results EURm 1 9/ /2012 Change, % 7 9/ /2012 Change, % Net interest income 4,135 4, ,386 1,393-1 Total operating income 7,422 7, ,426 2,412 1 Profit before loan losses 3,665 3, ,192 1,146 4 Net loan losses Loan loss ratio (ann.), bps Operating profit 3,110 3, , Risk-adjusted profit 2,530 2, Diluted EPS, EUR Return on equity, % On 30 September 2013 Sampo plc held 860,440,497 Nordea shares corresponding to a holding of 21.2 per cent. The average price paid per share amounted to EUR 6.46 and the book value in the Group accounts was EUR 7.88 per share. The closing price as at end of September 2013 was EUR Nordea is accounted as an associated company in Sampo Group s accounts. The following text is taken from Nordea s January - September 2013 interim report published on 23 October The third quarter was characterised by improving global economic data supporting investor sentiment. The main drivers were the broad-based improvement seen in manufacturing reports and the decision by the US Federal Reserve to postpone the expected reduction of asset purchases. Total income was largely unchanged compared to the same period of Operating profit was up 3 per cent compared to the same period last year. Risk-adjusted profit increased by 3 per cent compared to the preceding year. Net interest income decreased 1 per cent compared to the same period last year. Lending volumes were down 1 per cent excluding reversed repurchase agreements in local currencies and corporate lending margins were higher, while deposit margins have fallen from Net fee and commission income increased 9 per cent and the net result from items at fair value decreased by 9 per cent compared to the same period last year

9 Business areas Total expenses were down 1 per cent compared to the same period of 2012 in local currencies when excluding performance-related salaries and profit sharing, i.e. with the cost definition for the cost target in the financial plan. Staff costs were down 1 per cent in local currencies when excluding performance-related salaries and profit sharing. Net loan loss provisions decreased to EUR 555 million for the continued operations, corresponding to a loan loss ratio of 22 basis points (26 basis points last year). Net profit for the continued operations increased 4 per cent to EUR 2,347 million. Net profit for the total operations was up 3 per cent to EUR 2,343 million. Total lending, excluding reversed repurchase agreements, amounted to EUR 306 billion, which was up somewhat compared to the previous quarter in local currencies. Overall, the credit quality of the loan portfolio remained solid in the third quarter, with a largely stable effect from migration in both the corporate and retail portfolios. The Group s core tier 1 capital ratio, excluding transition rules, was 14.4 per cent at the end of the third quarter, a strengthening of 0.4 percentage points from the end of the previous quarter. The tier 1 capital ratio excluding transition rules increased 0.5 percentage point to 15.3 per cent. The total capital ratio excluding transition rules increased 0.1 percentage point to 17.5 per cent. The increase in core tier 1 capital ratio has been achieved by strong profit generation and RWA efficiency initiatives during the quarter. The lower increase in the total capital ratio compared to the tier 1 capital ratio was due to one subordinated loan being called in the third quarter. RWA were EUR billion excluding transition rules, a decrease of EUR 2.0 billion, or 1.2 per cent, compared to the previous quarter. RWA reduction of EUR 0.7 billion has been realised in the quarter via RWA initiatives. Currency fluctuation effects also contributed to a lower RWA

10 Business areas Life insurance Mandatum Life Group consists of Mandatum Life, a wholly-owned subsidiary of Sampo plc, operating in Finland, and its subsidiary Mandatum Life Insurance Baltic SE headquartered in Estonia. It operates in the other Baltic countries through branches. Results EURm 1 9/ /2012 Change, % 7 9/ /2012 Change, % Premiums written Net income from investments Other operating income Claims incurred Change in liabilities for inv. and ins. contracts Staff costs Other operating expenses Finance costs Profit before taxes Key figures Change Change Expense ratio, % Return on equity, % Average number of staff (FTE) Profit before taxes in life insurance for January-September 2013 amounted to EUR 103 million (98). The interest rate used to discount all with profit liabilities in 2015 was lowered to 3 per cent. The discount rate for 2013 and 2014 was already earlier lowered to 2.5 per cent. All in all, Mandatum Life has increased its technical reserves with a total of EUR 134 million due to low level of interest rates. Return on equity (RoE) amounted to 15.7 per cent (29.9). The total comprehensive income for the period, taking changes in the market value of assets into account, was EUR 137 million (218). Excluding the assets of EUR 4.4 billion (3.8) covering unit-linked liabilities, Mandatum Life Group s investment assets on 30 September 2013 amounted to EUR 5.4 billion (5.5) at market values. Net income from investments, excluding income on unit-linked contracts, amounted to EUR 218 million (236). Net income from unit-linked investments decreased to EUR 169 million (218). Investment return mark-to-market during January September 2013 was 5.2 per cent (7.5). The fair value reserve increased from the end of 2012 by EUR 56 million to EUR 447 million. At the end of September 2013 the duration of fixed income assets was 1.7 years (1.8) and average maturity 2.0 years (2.4). Fixed income running yield decreased to 4.1 per cent (5.2) as a result of lower reinvestment yields

11 Business areas Investment allocation Life insurance, 30 September 2013 TOTAL 5.4 EUR BILLION Long-term fixed income 43% Equities 29% Money market 14% Other 10% Private equity 4% The various measures introduced during the last quarters to improve the cost efficiency are beginning to show, and together with the growing fee income, the expense result doubled to EUR 7 million (3). The favorable development is expected to continue in the fourth quarter. The risk result rose to EUR 17 million (14) during the first three quarters of Mandatum Life s solvency position strengthened further and Mandatum Life Group s solvency ratio as at 30 September 2013 was 28.5 (27.7). Mandatum Life s capital requirement is to a very large degree related to with profit technical reserves and the investments covering these reserves. The with profit reserves are expected to continue to annually decrease by roughly EUR 200 million for the next five years and thus release solvency capital. The unit-linked reserves reached an all-time high and amounted to EUR 4.4 billion (3.8). Their share of total technical reserves was 52 per cent (48). The with profit reserves continue to decline and their share of the total technical reserves of EUR 8.4 billion (7.9), was EUR 4.0 billion (4.1). Healthy growth continued in Mandatum Life Group s premium income as premiums on own account increased 16 per cent to EUR 788 million (678). Premium income from the Baltic countries was EUR 21 million (21). Mandatum Life s overall market share in Finland at the end of September 2013 measured by premium income was 19.6 per cent (25.4) and market share in unit-linked business was 19.7 per cent (27.3)

12 Business areas Holding Sampo plc controls its subsidiaries engaged in P&C and life insurance. In addition on 30 September 2013 Sampo plc held 21.2 per cent of the share capital of Nordea, the largest bank in the Nordic countries. Nordea is an associated company to Sampo plc. Results EURm 1 9/ /2012 Change, % 7 9/ /2012 Change, % Net investment income Other operating income Staff costs Other operating expenses Finance costs Share of associates profit Profit before taxes Key figures Change Change Average number of staff (FTE) The segment s profit before taxes amounted to EUR 428 million (426), of which EUR 477 million (466) comes from Sampo s share of Nordea s January - September 2013 profit. The segment, excluding share of Nordea s profit, reported a loss of EUR 49 million (-40). Sampo plc s holding in Nordea Bank was booked in the consolidated balance sheet at EUR 6.8 billion. The market value of the holding was EUR 7.7 billion as at 30 September In addition the assets on Sampo plc s balance sheet as at 30 September 2013 included holdings in subsidiaries for EUR 2.4 billion (2.4)

13 Other developments OTHER DEVELOPMENTS Personnel The number of full-time equivalent staff remained nearly unchanged at 6,825 employees as at 30 September 2013 compared to 6,820 employees at the end of In P&C insurance, the number of staff increased in Finland due to integration of Tryg s Finnish P&C insurance operations. In other countries, the number of staff in P&C insurance decreased. In life insurance, the number of staff reduced both in Finland and in Baltic countries. During January-September 2013, approximately 91 per cent of the staff worked in P&C insurance, 8 per cent in life insurance and less than 1 per cent in the Group s parent company Sampo plc. Geographically, 33 per cent worked in Finland, 26 per cent in Sweden, 21 per cent in Norway and 19 per cent in the Baltic and other countries. The average number of employees during January- September 2013 was 6,815. A year earlier the corresponding figure was 6,828. Remuneration Remuneration in Sampo Group is based on the Remuneration Principles which Sampo plc s Board approved on 9 November The core of the Remuneration Principles is that all remuneration systems in Sampo Group shall safeguard the financial stability of the Group and comply with regulatory and ethical standards. They shall also be designed to balance the interests of different stakeholder groups such as shareholders, employees, customers and supervisory authorities. Variable compensation is based either on the contribution to the company s profitability (e.g. short-term incentive programs) or linked to committing employees to the Group for a longer period of time (long-term incentive programs). During 2013 Sampo plc s Board has not adopted new long-term incentive schemes. In January - September 2013 EUR 27 million (17) was paid on the basis of the long-term incentive schemes. As short-term incentives EUR 34 million (28), including social costs, was paid during the same period. At the end of September 2013 Sampo Group had provisioned EUR 29 million (19) for future payments of long-term incentive schemes. The terms of the long-term incentive schemes are available at

14 Other developments Shares and share capital As at 30 September 2013, Sampo plc had 560,000,000 shares, which were divided into 558,800,000 A shares and 1,200,000 B shares. Total number of votes attached to the shares is 564,800,000. Each A share entitles the holder to one vote and each B share entitles the holder to five votes at the General Meeting of Shareholders. The Annual General Meeting of 18 April 2013 authorized the Board to acquire in one or several lots a maximum of 50,000,000 Sampo A shares. The authorization will be valid until the close of the next Annual General Meeting, nevertheless not more than 18 months after AGM s decision. Sampo plc didn t repurchase its own shares during the first three quarters of 2013 and held none of its own shares at the end of September The other Group companies held no shares in the parent company either. Internal dividends Mandatum Life paid a dividend of EUR 100 million and Nordea Bank AB a dividend of EUR 293 million to Sampo plc earlier in the year. If P&C pays its dividend normally in the last quarter of the year. Ratings All the ratings for Sampo Group companies remained unchanged in the third quarter of Rated company Moody s Standard and Poor s Rating Outlook Rating Outlook Sampo plc Baa2 Stable Not rated - If P&C Insurance Ltd (Sweden) A2 Stable A Stable If P&C Insurance Company Ltd (Finland) A2 Stable A Stable

15 Other developments Group solvency Sampo Group is regarded as a financial and insurance conglomerate according to the Act on the Supervision of Financial and Insurance Conglomerates (2004/699). Group solvency is 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 and investment. Sampo Group solvency EURm 30 September December 2012 Group capital 10,332 10,113 Sectoral items 1,274 1,285 Intangibles and other deductibles -2,951-3,274 Group's own funds, total 8,655 8,125 Minimum requirements for own funds, total 4,699 4,767 Group solvency 3,957 3,358 Group solvency ratio (Own funds % of minimum requirements) The Group s solvency ratio (own funds in relation to minimum requirements for own funds) was per cent (170.4) as at 30 September 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 required to the capital available. Capital requirement assessment is based on an economic capital 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 in addition 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 30 September 2013 was EUR 5,380 million (4,560) and adjusted solvency capital was EUR 9,391 million (8,197). The increase in the economic capital is due to Nordea recalibrating its EC calculations to reflect new increased capital targets in the first quarter of

16 Other developments Debt financing Sampo plc s debt financing on 30 September 2013 amounted to EUR 2,013 million (2,162) and interest bearing assets to EUR 514 million (1,048). Interest bearing assets include bank accounts and EUR 348 million of hybrid capital issued by the subsidiaries and associates. During the first three quarters of 2013 the net debt increased EUR 386 million to EUR 1,499 million (1,113). Gross debt to Sampo plc s equity was 32 per cent (32). As at 30 September 2013 financial liabilities in Sampo plc s balance sheet consisted of issued senior bonds and notes of EUR 1,716 million (1,710) and EUR 298 million (451) of outstanding CPs issued. The average interest on Sampo plc s debt as of 30 September 2013 was 2.28 per cent (2.33). On 28 May 2013 Sampo plc bought back SEK 3,391 million of SEK 4,000 million senior notes maturing 16 September 2013 in connection to issuing two senior unsecured floating rate notes of SEK 2,000 million maturing on 28 May 2015 and 29 May 2018, respectively. The remaining SEK 609 million of the SEK 4,000 million senior unsecured floating rate notes matured on 16 September On 26 June 2013 If P&C Insurance Company Ltd., the Finnish subsidiary of If P&C Insurance Holding Ltd (publ), issued a capital loan of EUR 90 million. The first call date for the floating rate perpetual capital loan is 26 November To balance the risks on the Group level Sampo plc s debt is tied to short-term interest rates and issued in euro or Swedish krona. Interest rate swaps are used to obtain the desired characteristics for the debt portfolio. These derivatives are valued at fair value in the profit and loss account although economically they are related the underlying bonds. As a result Sampo plc maintains the flexibility to adjust derivative position if needed but this comes at the cost of increased volatility in the Holding segment s net finance costs. The underlying objective of Sampo plc is to maintain a well-diversified debt structure, relatively low leverage and strong liquidity in order for the company to be able to arrange financing for strategic projects if needed. Strong liquidity and the ability to acquire financing are essential factors in maintaining Sampo Group s strategic flexibility. More information on Sampo Group s outstanding debt issues is available at debtfinancing

17 Outlook for the rest of 2013 OUTLOOK FOR THE REST OF 2013 Sampo Group s business areas are expected to report good operating results for However, the mark-to-market results are, particularly in life insurance, highly dependent on capital market developments. The low interest rate level also creates a challenging environment for reinvestment in fixed income assets. The P&C insurance operations are expected to reach their long-term combined ratio target of below 95 per cent in 2013 and achieve a combined ratio of per cent. Nordea s contribution to the Group s profit is expected to be significant. Major risks and uncertainties to the Group in the near term In its day-to-day business activities Sampo Group is exposed to various risks and uncertainties which it identifies and assesses regularly. The Group publishes annually an extensive risk management report as part of its annual report at Major risks affecting the Group s profitability and its variation are market, credit and insurance risks that can be quantified by financial measurement techniques. Currently their quantified contributions to the Group s Economic Capital used as an internal basis for capital needs represent normal levels of 34 per cent, 45 per cent and 11 per cent, respectively. Uncertainties in the form of major unforeseen events or abrupt structural changes in the business environment may have an immediate impact on the Group s profitability or they can affect its ability to conduct business in a longer run. Identification of uncertainties is easier than estimation of their probabilities and magnitudes of potential financial effects. Currently, one potential source of uncertainty is the continuing political crises combined with slow growth that may escalate in ways that can affect Group s activities unfavorably. SAMPO PLC Board of Directors

18 Information For more information, please contact Peter Johansson, Group CFO, tel Jarmo Salonen, Head of Investor Relations and Group Communications, tel Maria Silander, Press Officer, tel Conference call Sampo will today arrange a conference call for investors and analysts at 4 pm Finnish time (2 pm UK time). The call is held in English. Please call +44 (0) , +46 (0) , or +358 (0) Please be ready to state the conference code and title Sampo plc Q3 Release. The conference call can also be followed live at A recorded version will later be available at the same address. In addition a Supplementary Financial Information Package is available at Financial Statement Release 2013 Sampo will publish the Financial Statement Release 2013 on 12 February DISTRIBUTION: NASDAQ OMX Helsinki The principal media Financial Supervisory Authority

19 TABLES 30 SEPTEMBER 2013 Group financial review Financial highlights Group 1 9/ /2012 Profit before taxes EURm 1,228 1,183 Return on equity (at fair value) % Return on assets (at fair value) % Equity/assets ratio % Group solvency ¹) EURm 3,957 3,039 Group solvency ratio % Average number of staff 6,815 6,828 Property & casualty insurance Premiums written before reinsurers' share EURm 3,845 3,739 Premiums earned EURm 3,394 3,242 Profit before taxes EURm Return on equity (at current value) % Risk ratio ²) % Cost ratio ²) % Loss ratio, excl. unwinding of discounting ²) % Expense ratio ²) % Combined ratio, excl. unwinding of discounting % Average number of staff 6,215 6,234 Life insurance Premiums written before reinsurers' share EURm Profit before taxes EURm Return on equity (at current value) % Expense ratio % Average number of staff Holding Profit before taxes EURm Average number of staff Per share key figures Earnings per share EUR Earnings per share, incl. other comprehensive income EUR Capital and reserves per share EUR Net asset value per share EUR Adjusted share price, high EUR Adjusted share price, low EUR Market capitalisation EURm 17,786 13,558 ¹) The Group solvency is calculated according to the consolidation method defined in Chapter 3 of the Act on the Supervision of Financial and Insurance Conglomerates (2004/699). 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. The number of shares used at the balance sheet date and as the average number during the financial period was 560,000,000. The valuation differences on investment property have been taken into account in calculating 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 on assets 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 regulations and instructions of the Finance Supervisory Authority

20 Calculation of key figures Return on equity (fair values), % + total comprehensive income valuation differences on investments less deferred tax + total equity valuation differences on investments less 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 expense + calculated interest on technical provisions change in valuation differences on investments + 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) x 100 % x 100 % Equity/assets ratio (at fair values), % + total equity valuation differences on investments after deduction of deferred tax x 100 % + balance sheet total valuation differences on investments Risk ratio for P&C Insurance, % + claims incurred claims settlement expenses insurance premiums earned Cost ratio for P&C Insurance, % + operating expenses + claims settlement expenses insurance premiums earned Loss ratio for P&C Insurance, % claims incurred insurance premiums earned Expense ratio for P&C Insurance, % operating expenses insurance premiums earned x 100 % x 100 % x 100 % x 100 % 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

21 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

22 Group quarterly comprehensive income statement EURm 7 9/ / / / /2012 Insurance premiums written 1,145 1,364 1,922 1,240 1,092 Net income from investments Other operating income Claims incurred Change in liabilities for insurance and investment contracts Staff costs Other operating expenses Finance costs Share of associates' profit/loss Profit for the period before taxes Taxes Profit for the period Other comprehensive income for the period Items reclassifiable to profit or loss Exchange differences on translating foreign operations Available-for-sale financial assets Cash flow hedges Share of other comprehensive income of associates Taxes Total items reclassifiable to profit or loss, net of tax Items not reclassifiable to profit or loss Actuarial gains and losses from defined pension plans Taxes Total items not reclassifiable to profit or loss, net of tax TOTAL COMPREHENSIVE INCOME FOR THE PERIOD Profit attributable to Owners of the parent Non-controlling interests Total comprehensive income attributable to Owners of the parent Non-controlling interests

23 Consolidated comprehensive income statement, IFRS EURm Note 1 9/ /2012 Insurance premiums written 1 4,430 4,173 Net income from investments Other operating income Claims incurred 3-2,781-2,669 Change in liabilities for insurance and investment contracts Staff costs Other operating expenses Finance costs Share of associates' profit/loss Profit before taxes 1,228 1,183 Taxes Profit for the period 1,055 1,011 Other comprehensive income for the period Items reclassifiable to profit or loss Exchange differences Available-for-sale financial assets Cash flow hedges 0-1 Share of other comprehensive income of associates Taxes Total items reclassifiable to profit or loss, net of tax Items not reclassifiable to profit or loss Actuarial gains and losses from defined pension plans Taxes Total items not reclassifiable to profit or loss, net of tax TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1,112 1,425 Profit attributable to Owners of the parent 1,055 1,011 Non-controlling interests - 0 Total comprehensive income attributable to Owners of the parent 1,112 1,425 Non-controlling interests - 0 Basic earnings per share (eur)

24 Consolidated balance sheet, IFRS EURm Note 9/ /2012 Assets Property, plant and equipment Investment property Intangible assets Investments in associates 7,166 7,049 Financial assets 6, 7, 8, 9, 10 17,123 16,857 Investments related to unit-linked insurance contracts 11 4,408 3,833 Tax assets Reinsurers' share of insurance liabilities Other assets 1,814 1,729 Cash and cash equivalents 616 1,034 Total assets 32,630 32,079 Liabilities Liabilities for insurance and investment contracts 12 13,937 13,925 Liabilities for unit-linked insurance and investment contracts 13 4,384 3,832 Financial liabilities 14 2,174 2,378 Tax liabilities Provisions Employee benefits Other liabilities 1,051 1,123 Total liabilities 22,298 22,059 Equity Share capital Reserves 1,531 1,531 Retained earnings 7,786 7,494 Other components of equity Equity attributable to owners of the parent 10,332 10,020 Non-controlling interests - - Total equity 10,332 10,020 Total equity and liabilities 32,630 32,

25 Statement of changes in equity, IFRS EURm Share capital Share premium account Legal reserve Invested unrestricted equity Retained earnings Translation of foreign operations 1) Availablefor-sale financial assets 2) Cash flow hedges 3) Total Equity at 1 Jan ,527 6, ,920 Change in IAS 19 Pension benefits 4) Restated equity at 1 Jan ,527 6, ,791 Changes in equity Recognition of undrawn dividends 6 6 Dividends Share of associate's other changes in equity -8-8 Other changes in equity 9 9 Profit for the period 1,011 1,011 Other comprehensive income for the period Equity at 30 September ,527 7, ,551 Equity at 1 Jan ,527 7, ,113 Change in IAS 19 Pension benefits 4) Restated equity at 1 Jan ,527 7, ,020 Changes in equity Recognition of undrawn dividends 7 7 Dividends Share of associate s other changes in equity Profit for the period 1,055 1,055 Other comprehensive income for the period Equity at 30 September ,527 7, ,332 1) The total comprehensive income includes also the share of the associate Nordea s other comprehensive income, in accordance with the Group s share holding. The retained earnings thus include EURm 16 (-) of Nordea s actuarial gains/losses from defined pension plans. The exchange differences include the share of Nordea s exchange differences EURm -62 (15). Respectively, available-for-sale financial assets include EURm 6 (11) of Nordea s valuation differences. 2) The amount recognised in equity from available-for-sale financial assets for the period totalled EURm 146 (343). The amount transferred to p/l amounted to EURm -2 (-16). 3) The amount recognised in equity from cash flow hedges for the period totalled EURm -0 (-1). 4) IAS 19 Pension benefits had a net effect of EURm -39 (-160) on retained earnings. The amount included in the translation, available-for-sale, cash flow hedge reserves and defined benefit plans represent other comprehensive income for each component, net of tax

26 Statement of cash flows, IFRS EURm 1 9/ /2012 Cash and cash equivalent at the beginning of the period 1, Cash flow from/used in operating activities Cash flow from/used in investing activities Cash flow from/used in financing activities Dividends paid Increase of liabilities 1, Decrease of liabilities -1, Cash and cash equivalent at the end of the period 619 1,043 The cash flow statement reports cash flows during the period classified by operating, investing and financing activities. Cash flows from operating activities derive primarily from the principal revenue-producing activities. Cash flows from investments in subsidiaries and associated undertakings and those from investments in intangible assets and property, plant and equipment are presented in investing activities. Financing activities include cash flows resulting from changes in equity and borrowings in order to conduct the business. Cash and cash equivalents consist of cash at bank and in hand and short-term deposits (under 3 months)

27 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 Sampo adopted new or revised standards and interpretations at the beginning of the year These standards and interpretations are explained in Sampos accounting policies for the financial year The financial statements are available on Sampo s website at annualreport. One of the adopted changes was in IAS 19 Employee Benefits that amends all actuarial gains and losses be recognised immediately in other comprehensive income, thus the so-called corridor method is eliminated and the benefit cost is determined based on the net funding. As a result of the change, the employee benefit liability for the comparison year was increased by EURm 127 and the related deferred tax asset by EURm 34. The net effect on the equity was EURm

28 Comprehensive income statement by segment for nine months ended 30 September 2013 EURm P&C insurance Life insurance Holding Elimination Group Insurance premius written 3, ,430 Net income from investments Other operating income Claims incurred -2, ,781 Change in liabilities for insurance and investment contracts Staff costs Other operating expenses Finance costs Share of associates' profit/loss Profit before taxes ,228 Taxes Profit for the period ,055 Other comprehensive income for the period Items reclassifiable to profit or loss Exchange differences Available-for-sale financial assets Cash flow hedges Share of other comprehensive income of associates Taxes Total items reclassifiable to profit or loss, net of tax Items not reclassifiable to profit or loss Actuarial gains and losses from defined pension plans Taxes Total items not reclassifiable to profit or loss, net of tax TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ,112 Profit attributable to Owners of the parent 1,055 Non-controlling interests - Total comprehensive income attributable to Owners of the parent 1,112 Non-controlling interests

29 Comprehensive income statement by segment for nine months ended 30 September 2012 EURm P&C insurance Life insurance Holding Elimination Group Insurance premius written 3, ,173 Net income from investments Other operating income Claims incurred -2, ,669 Change in liabilities for insurance and investment contracts Staff costs Other operating expenses Finance costs Share of associates' profit/loss Profit before taxes ,183 Taxes Profit for the period ,011 Other comprehensive income for the period Items reclassifiable to profit or loss Exchange differences Available-for-sale financial assets Cash flow hedges Share of other comprehensive income of associates Taxes Total items not reclassifiable to profit or loss, net of tax Items not reclassifiable to profit or loss Actuarial gains and losses from defined pension plans Taxes Total items not reclassifiable to profit or loss, net of tax TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ,425 Profit attributable to Owners of the parent 1,011 Non-controlling interests 0 Total comprehensive income attributable to Owners of the parent 1,425 Non-controlling interests

30 Consolidated balance sheet by segment at 30 September 2013 EURm P&C insurance Life insurance Holding Elimination Group Assets Property, plant and equipment Investment property Intangible assets Investments in associates ,781-7,166 Financial assets 11,888 5,150 2,794-2,710 17,123 Investments related to unit-linked insurance contracts - 4, ,408 Tax assets Reinsurers' share of insurance liabilities Other assets 1, ,814 Cash and cash equivalents Total assets 15,428 10,144 9,792-2,734 32,630 Liabilities Liabilities for insurance and investment contracts 9,956 3, ,937 Liabilities for unit-linked insurance and investment contracts - 4, ,384 Financial liabilities , ,174 Tax liabilities Provisions Employee benefits Other liabilities ,051 Total liabilities 11,661 8,811 2, ,298 Equity Share capital 98 Reserves 1,531 Retained earnings 7,786 Other components of equity 917 Equity attributable to owners of the parent 10,332 Non-controlling interests - Total equity 10,332 Total equity and liabilities 32,

31 Consolidated balance sheet by segment at 31 December 2012 EURm P&C insurance Life insurance Holding Elimination Group Assets Property, plant and equipment Investment property Intangible assets Investments in associates ,687-7,049 Financial assets 11,200 5,269 3,028-2,641 16,857 Investments related to unit-linked insurance contracts - 3, ,833 Tax assets Reinsurers' share of insurance liabilities Other assets 1, ,729 Cash and cash equivalents ,034 Total assets 14,852 9,635 10,256-2,663 32,079 Liabilities Liabilities for insurance and investment contracts 9,854 4, ,925 Liabilities for unit-linked insurance and investment contracts - 3, ,832 Financial liabilities , ,378 Tax liabilities Provisions Employee benefits Other liabilities ,123 Total liabilities 11,671 8,340 2, ,059 Equity Share capital 98 Reserves 1,531 Retained earnings 7,494 Other components of equity 898 Equity attributable to owners of the parent 10,020 Non-controlling interests - Total equity 10,020 Total equity and liabilities 32,

32 OTHER NOTES, EURm 1 Insurance premiums P&C insurance 1 9/ /2012 Premiums from insurance contracts Premiums written, direct insurance 3,757 3,642 Premiums written, assumed reinsurance Premiums written, gross 3,845 3,739 Ceded reinsurance premiums written P&C insurance, total 3,643 3,500 Change in unearned premium provision Reinsurers' share Premiums earned for P&C insurance, total 3,394 3,242 Life insurance 1 9/ /2012 Premiums from insurance contracts Premiums from contracts with discretionary participation feature Premiums from unit-linked contracts Premiums from other contracts 1 1 Insurance contracts, total Assumed reinsurance 3 1 Premiums from investment contracts Premiums from contracts with discretionary participation feature 0 0 Premiums from unit-linked contracts Investment contracts, total Reinsurers' shares -4-5 Life insurance, total Single and regular premiums from direct insurance Regular premiums, insurance contracts Single premiums, insurance contracts Single premiums, investment contracts Total Elimination items between segments -1-5 Group, total 4,430 4,

33 2 Net income from investments > P&C insurance 1 9/ /2012 Financial assets Derivative financial instruments 1-6 Financial assets designated as at fair value through p/l Debt securities 0 6 Equity securities 6 1 Total 6 7 Loans and receivables Financial asset available-for-sale Debt securities Equity securities Total Total financial assets Fee and commission expense Expense on other than financial liabilities -3-2 Effect of discounting annuities P&C insurance, total

34 > 2 Net income from investments > Life insurance 1 9/ /2012 Financial assets Derivative financial instruments 4 29 Investments related to unit-linked contracts Debt securities Equity securities Loans and receivables 0 1 Other financial assets Total Loans and receivables -2 1 Financial asset available-for-sale Debt securities Equity securities Total Total income from financial assets Other assets 1 4 Fee and commission income, net 7 6 Life insurance, total

35 > 2 Net income from investments Holding 1 9/ /2012 Financial assets Derivative financial instruments 0 11 Loans and other receivables 0-1 Financial assets available-for-sale Debt securities Equity securities 5 5 Total Fee income, net 0 1 Holding, total Elimination items between segments Group, total

36 3 Claims incurred P&C insurance 1 9/ /2012 Claims paid -2,269-2,296 Reinsurers' share Claims paid, net -2,135-2,220 Change in provision for claims outstanding Reinsurers' share P&C insurance total -2,223-2,141 Life insurance 1 9/ /2012 Claims paid Reinsurers' share 3 4 Claims paid, net Change in provision for claims outstanding Reinsurers' share 0 0 Life insurance, total Elimination items between segments - 4 Group, total -2,781-2,

37 4 Staff costs P&C insurance 1 9/ /2012 Wages and salaries Granted cash-settled share options Pension costs Other social security costs P&C insurance, total Life insurance 1 9/ /2012 Wages and salaries Granted cash-settled share options -4-3 Pension costs -4-4 Other social security costs -2-2 Life insurance, total Holding 1 9/ /2012 Wages and salaries -7-6 Granted cash-settled share options -9-6 Pension costs -2-2 Other social security costs 0-1 Holding, total Group, total

38 5 Intangible assets P&C insurance 9/ /2012 Goodwill Other intangible assets P&C insurance, total Life insurance 9/ /2012 Goodwill Other intangible assets 9 11 Life insurance, total Group, total

39 6 Financial assets > P&C insurance 9/ /2012 Derivative financial instruments (Note 7) Financial assets designated as at fair value through p/l Debt securities 4 19 Equity securities 2 2 Total 6 22 Loans and receivables Loans Deposits with ceding undertakings 1 1 Total Financial assets available-for-sale Debt securities 10,288 9,675 Equity securities 1,344 1,370 Total 11,632 11,045 P&C insurance, total 11,888 11,200 Life insurance 9/ /2012 Derivative financial instruments (Note 7) Financial assets designated as at fair value through p/l Debt securities Equity securities 1 1 Total Loans and receivables Loans Deposits with ceding undertakings 1 1 Total Financial assets available-for-sale Debt securities 2,783 2,786 Equity securities *) 2,257 2,353 Total 5,040 5,138 Life insurance, total 5,150 5,269 *) of which investments in fixed income funds

40 > 6 Financial assets Holding 9/ /2012 Derivative financial instruments (Note 7) Loans and receivables Deposits 1 1 Financial assets available-for-sale Debt securities Equity securities Total Investments in subsidiaries 2,370 2,370 Holding, total 2,794 3,028 Elimination items between segments -2,710-2,641 Group, total 17,123 16,

41 7 Derivative financial instruments 9/ /2012 P&C insurance Fair value Fair value Fair value Fair value Contract/ notional amount Assets Liabilities Contract/ notional amount Assets Liabilities Derivatives held for trading Interest rate derivatives Foreign exchange derivatives 2, , Equity derivatives Total 3, , Derivatives held for hedging Fair value hedges P&C Insurance, total 3, , / /2012 Life insurance Fair value Fair value Fair value Fair value Contract/ notional amount Assets Liabilities Contract/ notional amount Assets Liabilities Derivatives held for trading Interest rate derivatives 5, Credit risk derivatives Foreign exchange derivatives 1, , Total 6, , Derivatives held for hedging Cash flow hedges Fair value hedges Total Life insurance, total 7, , / /2012 Holding Fair value Fair value Fair value Fair value Contract/ notional amount Assets Liabilities Contract/ notional amount Assets Liabilities Derivatives held for trading Interest rate derivatives Credit risk derivatives Foreign exchange derivatives Equity derivatives Holding, total 1, ,

42 8 Determination and hierarchy of fair values > A large majority of Sampo Group s financial assets are valued at fair value. The valuation is based on either published price quatations or valuation techniques based on market observable inputs, where available. For a limited amount of assets the value needs to be determined using other techniques. The financial instruments measured at fair value have been classified into three hierarchy levels in the notes, depending on e.g. if the market for the instrument is active, or if the inputs used in the valuation technique are observable. On level 1, the measurement of the instrument is based on quoted prices in active markets for identical assets or liabilities. On level 2, inputs for the measurement of the instrument include also other than quoted prices observable for the asset or liability, either directly or indirectly by using valuation techniques. On level 3, the measurement is based on other inputs rather than observable market data. Financial assets Level 1 Level 2 Level 3 Total Derivative financial instruments Interest rate swaps Other interest derivatives Foreign exchange derivatives Equity derivatives Total Financial assets designated at fair value through profit or loss Equity securities Debt securities Total Financial assets related to unit-linked insurance Equity securities Debt securities ,022 Mutual funds 2, ,841 Derivative financial instruments Total 2,333 1, ,201 Financial assets available-for-sale Equity securities 1, ,645 Debt securities 1,025 11, ,042 Mutual funds 1, ,030 Total 3,755 12, ,716 Total financial assests measured at fair value 6,090 14, ,

43 > 8 Determination and hierarchy of fair values > Financial liabilities Level 1 Level 2 Level 3 Total Derivative financial instruments Interest derivatives Foreign exchange derivatives Equity derivatives Total financial liabilities measured at fair value Financial assets Level 1 Level 2 Level 3 Total Derivative financial instruments Interest rate swaps Other interest derivatives Foreign exchange derivatives Equity derivatives Total Financial assets designated at fair value through profit or loss Equity securities Debt securities Total Financial assets related to unit-linked insurance Equity securities Debt securities Mutual funds 1, ,390 Derivative financial instruments Total 2,060 1, ,553 Financial assets available-for-sale *) Equity securities 1, ,603 Debt securities , ,764 Mutual funds 1, ,143 Total 2,918 12,557 1,036 16,511 Total financial assets measured at fair value 4,984 14,201 1,117 20,301 *) Debt securities EURm 7 were transferred from level 1 to level to 2 during Mutual funds EURm 34 have been transferred from level 2 to level

44 > 8 Determination and hierarchy of fair values Financial liabilities Level 1 Level 2 Level 3 Total Derivative financial instruments Interest derivatives Foreign exchange derivatives Equity derivatives Total financial liabilities measured at fair value Sensitivity analysis of fair values The sensitivity of financial assets and liabilites to changes in exchange rates is assessed on business area level due to differenct base currencies. In P&C insurance, 10 percentage point depreciation of all other currencies against SEK would result in an effect recognised in profit/loss of EURm 24 (15) and in an effect recognised directly in equity of EURm -14 (-11). In Life insurance, 10 percentage point depreciation of all other currencies against EUR would result in an effect recognised in profit/loss of EURm 20 (52) and in an effect recognised directly in equity of EURm -65 (-64). In Holding, 10 percentage point depreciation of all other currencies against EUR would have no impact in profit/loss, but an effect recognised in equity of EURm -3 (-3). The comparison figures are as of 31 Dec The sensitivity analysis of the Group s fair values of financial assets and liabilities in differenct market risk scenarios is presented below. The effects represent the instantaneous effects of a one-off change in the underlying market variable on the fair values on 30 September The sensitivity analysis includes the effects of derivative positions. All sensitivities are calculated before taxes. The debt issued by Sampo plc is not included. Interest rate 1 % parallel shift down 1 % parallel shift up Equity 20 % fall in prices Other financial assets 20 % fall in prices Effect recognised in profit/loss Effect recognised directly in equity Total effect

45 9 Movements in level 3 financial instruments measured at fair value > Financial assets At 1 Jan Total gains/ losses in income statement Total gains/ losses recorded in other comprehensive income Purchases Sales Transfers between levels 1 and 2 At 30 Sep Gains/ losses included in p/l for financial assets 30 Sep Financial assets designated at fair value through profit or loss Equity securities Debt securities Mutual funds Total Financial assets available-for-sale Equity securities Debt securities Mutual funds Total 1, Total financial assests measured at fair value 1, Realised gains 9/2013 Fair value gains and losses Total Total gains or losses included in profit or loss for the financial period Total gains or losses included in profit and loss for assets held at the end of the financial period

46 > 9 Movements in level 3 financial instruments measured at fair value Financial assets At 1 Jan Total gains/ losses in income statement Total gains/ losses recorded in other comprehensive income Purchases Sales Transfers between levels 1 and 2 At 31 Dec Gains/ losses included in p/l for financial assets 31 Dec Financial assets designated at fair value through profit or loss Equity securities Debt securities Mutual funds Total Financial assets available-for-sale Equity securities Debt securities Mutual funds Total 1, , Total financial assests measured at fair value 1, , Realised gains 12/2012 Fair value gains and losses Total Total gains or losses included in profit or loss for the financial period Total gains or losses included in profit and loss for assets held at the end of the financial period

47 10 Sensitivity analysis of level 3 financial instruments measured at fair value Carrying amount 9/ /2012 Effect of reasonably possible alternative assumptions (+ / -) Carrying amount Effect of reasonably possible alternative assumptions (+ / -) Financial assets Financial assets available-for-sale Equity securities Debt securities Mutual Funds Total , The value of financial assets regarding the debt security instruments has been tested by assuming a rise of 1 per cent unit in interest rate level in all maturities. For other financial assets, the prices were assumed to go down by 20%. Sampo Group bears no investment risks related to unit-linked insurance, so a change in assumptions regarding these assets does not affect profit or loss. On the basis of the these alternative assumptions, a possible change in interest levels at 30 September 2013 would cause descend of EURm 2 for the debt instruments, and EURm 158 valuation loss for other instruments in the Group s other comprehensive income. The reasonably possible effect, proportionate to the Group s equity, would thus be 1.5 %. At the year end 2012, the comparable figures were EURm 3 and EURm 177 and the reasonably possible effect 1.8%. 11 Investments related to unit-linked insurance Life insurance 9/ /2012 Financial assets as at fair value through p/l Debt securities 1, Equity securities 3,161 2,711 Loans and receivables Derivatives Life insurance, total 4,410 3,834 Elimination items between segments -2-1 Group, total 4,408 3,

48 12 Liabilities for insurance and investment contracts > P&C insurance 9/ /2012 Insurance contracts Provision for unearned premiums 2,336 2,107 Provision for claims outstanding 7,620 7,747 P&C insurance, total 9,956 9,854 Reinsurers' share Provision for unearned premiums Provision for claims outstanding P&C insurance, total

49 > 12 Liabilities for insurance and investment contracts Life insurance 9/ /2012 Insurance contracts Liabilities for contracts with DPF Provision for unearned premiums 1,996 2,090 Provision for claims outstanding 1,977 1,972 Total 3,973 4,062 Liabilities for contracts without DPF Provision for unearned premiums 0 0 Provision for claims outstanding 0 1 Total 1 1 Total 3,974 4,063 Assumed reinsurance Provision for unearned premiums 2 1 Provision for claims outstanding 1 1 Total 3 2 Insurance contracts, total Provision for unearned premiums 1,998 2,091 Provision for claims outstanding 1,979 1,975 Total 3,977 4,065 Investment contracts Liabilities for contracts with DPF Provision for unearned premiums 4 6 Liabilities for insurance and investment contracts, total Provision for unearned premiums 2,002 2,096 Provision for claims outstanding 1,979 1,975 Life insurance, total 3,981 4,071 Recoverable from reinsurers Provision for unearned premiums 0 0 Provision for claims outstanding 3 3 Life insurance, total 3 3 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 13,937 13,

50 13 Liabilities from unit-linked insurance and investment contracts Life insurance 9/ /2012 Unit-linked insurance contracts 2,948 2,665 Unit-linked investment contracts 1,437 1,168 Life insurance, total 4,386 3,833 Elimination items between segments -2-1 Group, total 4,384 3, Financial liabilities P&C insurance 9/ /2012 Derivative financial instruments (Note 7) Subordinated debt securities Subordinated loans P&C insurance, total Life insurance 9/ /2012 Derivative financial instruments (Note 7) 14 5 Subordinated debt securities Subordinated loans Life insurance, total Holding 9/ /2012 Derivative financial instruments (Note 7) Debt securities in issue Commercial papers Bonds 1,716 1,710 Total 2,013 2,162 Holding, total 2,031 2,181 Elimination items between segments Group, total 2,174 2,

51 15 Contingent liabilities and commitments > P&C insurance 9/ /2012 Off-balance sheet items Guarantees Other irrevocable commitments 14 6 Total Assets pledged as collateral for liabilities or contingent liabilities Assets pledged as collateral 9/2013 9/ / /2012 Assets Liabilities/ Assets Liabilities/ pledged commitments pledged commitments Cash and cash equivalents Investments - Investment securities Total Assets pledged as security for derivative contracts, carrying value 9/ /2012 Investment securities The pledged assets are included in the balance sheet item Other assets. Non-cancellable operating leases 9/ /2012 Minimum lease payments - not later than one year later than one year and not later than five years later than five years Total

52 > 15 Contingent liabilities and commitments Life insurance 9/ /2012 Off-balance sheet items Investment commitments Acquisition of IT-software 1 1 Total Assets pledged as security for derivative contracts, carrying value Cash and cash equivalents 6 6 The pledged assets are included in the balance sheet item Other assets. Non-cancellable operating leases Minimum lease payments - not later than one year later than one year and not later than five years later than five years 9 - Total 19 6 Holding 9/ /2012 Off-balance sheet items Investment commitments 1 1 Non-cancellable operating leases Minimum lease payments - not later than one year later than one year and not later than five years 2 3 Total

53 16 Result analysis of P&C insurance business 1 9/ /2012 Premiums earned 3,394 3,242 Claims incurred -2,426-2,340 Operating expenses Other technical income and expenses 1 2 Allocated investment return transferred from the non-technical account Technical result Investment result Allocated investment return transferred to the technical account Other income and expenses Operating result

54 17 Sampo plc s income statement and balance sheet (FAS) Income statement 1 9/ /2012 Other operating income Staff expenses Depreciation and impairment 0 0 Other operating expenses Operating profit Finance income and expenses Profit before appropriations and income taxes Income taxes 0 - Profit for the financial period Balance sheet 9/ /2012 ASSETS Non-current assets Intangible assets 0 0 Property, plant and equipment 4 4 Investments Shares in Group companies 2,370 2,370 Receivables from Group companies Shares in participating undertakings 5,557 5,557 Other shares and participations Other receivables Receivables Cash and cash equivalents TOTAL ASSETS 8,568 9,126 LIABILITIES Equity Share capital Fair value reserve 3 0 Invested unrestricted equity 1,527 1,527 Other reserves Retained earnings 4,146 4,158 Profit for the year Total equity 6,390 6,793 Liabilities Long-term 1,716 1,710 Short-term Total liabilities 2,178 2,333 TOTAL LIABILITIES 8,568 9,

55