Debt Investor Presentation

Transcription

1 Debt Investor Presentation JANUARY MARCH 218 PREPARED May 17, 218 FIGURES January-March, 218

2 DEBT INVESTOR CONTACTS Markku Pehkonen, CRO tel markku.pehkonen@sampo.fi Peter Johansson, CFO tel peter.johansson@sampo.fi Jarmo Salonen, Head of Investor Relations and Group Communications tel jarmo.salonen@sampo.fi FINANCIAL CALENDAR 218 7/2/218 Financial Statement Release for 217 Silent period 8/1/218-7/2/218 Week 11 Annual Report /4/218 AGM 9/5/218 Interim Statement Q1/218 Silent period 9/4/218-9/5/218 8/8/218 Half-Year Financial Report 218 Silent period 9/7/218-8/8/218 7/11/218 Interim Statement Q3/218 Silent period 8/1/218-7/11/218 Issuer Rating Moody's Standard and Poor's Rating Outlook Rating Outlook Sampo plc Baa1 Stable A- Stable If P&C Insurance (Sweden) A1 Stable A+ Stable Disclaimer This presentation may contain forward-looking statements that reflect management s current views with respect to certain future events and potential financial performance. Although Sampo believes that the expectations reflected in such forward looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors. Important factors that may cause such a difference for Sampo include, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate and (iii) developments in capital markets. This presentation does not imply that Sampo has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided. 2

3 Sampo Group 3-15 Subsidiaries and Associated companies If P&C Topdanmark Mandatum Life Nordea Bank Sampo plc Appendix

4 Sampo Group Nordic Financial Group with Strong Brands Value Creation in the Nordic Financials as Group Strategy LONG-TERM VALUE CREATION CONSERVATIVE PARENT WITH PROFIT FOCUS OPERATIONAL EXCELLENCE IN SUBSIDIARIES CENTRALIZED INVESTMENT MANAGEMENT GROUP LEVEL PORTFOLIO BENEFITS Value creation through investments in Nordic financials based on knowledge of Nordic markets, Nordic financial institutions & Nordic people. Commitment to the long-term development of affiliated companies. Conservative capital structure, low leverage and strong liquidity. Parent company steers subsidiaries through Boards by approving (in Topdanmark, Nordea and Nordax by contributing to) strategies, guiding principles and ROE targets. Continuous development of services => excellence in underwriting and risks. Economies of scale and high retail/consumer content. Pan-Nordic diversification & operational excellence facilitate low volatility. Company specific liabilities and solvency driving risk profiles, supported by a Group-wide investment philosophy. Common investment infrastructure facilitates effective monitoring and fast actions, also at the Group level. Profitable companies, mostly with the lowest volatility in the peer group. Profits of affiliated companies have low correlation creating diversification benefits at the Group level. LONG-TERM VALUE FOR SHAREHOLDERS & BONDHOLDERS 4

5 Sampo Group Nordic Financial Group with Strong Brands Sampo Group Nordic Financial Group with Strong Brands Long-term investor Manager of capital structure and liquidity Pay-out ratio 5% 1% > 45% 1% Subsidiary Subsidiary Subsidiary 21.2% Associated Company 36.2% Associated Company NDX Intressenter Market position The leading P&C insurer in the Nordic region with full service offering and a strong European presence The second largest P&C insurer and the sixth largest Life insurer in Denmark One of Finland s most respected and best capitalised financial services providers to private & corporate customers The leading and most diversified, bank group in the Nordics with strong capital generation Strategy Safety and Stability: Focus on Customer value Focus on insurance expertise Stable profitability through underwriting excellence and operational efficiency Profitable Business in DK: Digitalisation: Self-service, Online purchase Efficiency: Process optimisation and Automation Transformation: Cultur, Digital readiness An expert in Money and Life: Unit-linked insurance Group pension insurance Risk insurance Insurance for Corporate customers and entrepreneurs Wealth management Transformation to be the Future Relationship Bank Investm. in Compliance and RM Technology Investm., the core banking platform Digital Platform investments Cost efficiency New legal structure and domicile Investment assets ~ EURbn 11.6 ~ EURbn 3.1 (P&C) ~ EURbn 6. ~ B/S EURbn 58 ~ AuM EURbn 32 Return / profit target RoE above 17.5% CR% below 95% Profit margin of 1% CR% 91% RoE above 17.5% ROE above the Nordic peer average 5

6 Sampo Group Nordic Financial Group with Strong Brands Efficient and Stable Operations as Basis for Value A Mixed Financial Conglomerate Market cap May 3, 218, EURbn Strong relative performance 1Y Total Shareholder Return Nordea 33.6 Danske 26. DNB 25.7 >21% Sampo 24.5 Swedbank 19.9 SHB 17.7 SEB 17. Investor 16.3 Gjensidige Tryg Industrivärden Jyske Topdanmark Storebrand Alm.Brand Protector Source: Thomson Reuters Bank Insurance Sampo ownership structure Investment company Foreign and Nominee registered 66.14% >45% In total over 1, owners Solidium 1.9%* Varma Mutual Pension Ins.Co. 5.39% Ilmarinen Mutual Pension Ins.Co..75% The State Pension Fund.7 Kaleva Mutual Insurance Company.48% Other domestic owners 16.44% *1% owned by the Republic of Finland;

7 Sampo Group Nordic Financial Group with Strong Brands If P&C A Diversified Nordic P&C Insurer Diversified and profitable subsidiary Provides insurance solutions and services in the Nordic and Baltic regions as well as to Nordic customers with international operations Operated on a pan-nordic basis leveraging both scale and capabilities across all areas in If The business is divided into customer segments Private, Commercial and Industrial The Baltic countries comprise a separate business area More than 3.7 million customers Employees ~6,4 Leading Nordic insurer with a Nordic market share of 17%, 22% with Topdanmark EURm 1,2 1, Strong & Stable Annual Profit Development , Profit before tax Comprehensive income 1-3/218 Result Pre-tax profit EURm 193 (18) Comprehensive income EURm -6 (246) Excellent combined ratio of 86.5% (87.4) Risk ratio 64.7% (65.4); Cost ratio 21.8% (22.) Claims ratio 7.3% (71.1); Expense ratio 16.2% (16.3) ROE%: -.9% (217:21.3%) % Combined Ratio Development Cost ratio Risk ratio Target CR 7

8 Sampo Group Nordic Financial Group with Strong Brands Topdanmark A Danish Non-life and Life Insurer 1-3/218 Result (Contribution to Sampo Group Profit) Pre-tax profit EURm 6 (21) Comprehensive income EURm 45 (21) Combined ratio 85.2% (85.8) A profitable subisdiary with robust business model Carries out Danish non-life insurance, life insurance and pension fund business Non-life business is divided to Personal segment (~5,) SME & Agricultural segment (~1.) Life insurance customers (~14 ) Employees ~2,4 Market shares in Denmark: P&C insurance 17%, life insurance 8% Strategic focus to be Denmark s best-run insurance company to combine new technology, digitalization and automation with competent experience in insurance and risk management to utilize the economies of scale between life and non-life insurance business in Denmark declining expense ratio, good risk management and strong sales power Sampo s ownership of shares 46.7% and of votes 49.3% Claims ratio 67.9% (68.5); Expense ratio 17.3% (17.3) Topdanmark book value in Group accounts EURm 1,397 (+ positive valuation difference EURm 26) DKKm % Non-life insurance Life insurance Parent companyt etc Profit before taxes Combined Ratio Development Expense ratio Claims ratio Target CR 8 218

9 Sampo Group Nordic Financial Group with Strong Brands Mandatum Life A Finnish Financial Service Company Provides a comprehensive range of wealth managment and health and life risk services in Finland and the Baltics for private and corporate customers Services provided Tailored unit-linked investments and the related wealth management Personal risk insurance Pension and reward services Customers ~275, (Finland) Employees ~52 A leading life and pension insurer in Finland with ca 2% market share EURm Profit Development Profit before taxes Comprehensive income 1-3/218 Result Pre-tax profit EURm 73 (54) Comprehensive income EURm -19 (85) ROE%: -5.8% (217:13.3%) Finnish Profit sharing mechanism principle of fairness facilitates active investment strategies and risk taking. Profit sharing mechanism has benefited both policyholders and shareholders over the years. Smoothened bonuses and dividends over time. EURm 6, 5, 4, 3, 2, 1, With-Profit Technical Provisions Forecast Current Other WP-liabilities Segregated Group Pension WP-liabilities (3.5% guarantee) WP-liabilities (4.5% guarantee) Unit-linked Technical Provisions EUR 7,66m 9

10 Sampo Group Nordic Financial Group with Strong Brands Nordea A Nordic Banking Group 1-3/218 Result The largest financial services group in the Nordic region and one of the largest banks in Europe Diversified and stable returns Global presence, local expertise: a full-service universal bank Business areas: Personal Banking, Commercial and Business Banking, Wholesale Banking and Wealth Management Present in 17 countries incl. four Nordic home markets: Denmark, Finland, Norway and Sweden Customers: households 1 million corporates and institutionals.7 million Employees ~3, Sampo s ownership of shares and votes 21.2% Nordea s contribution to the Group Pre-tax profit EURm 165 (171) Comprehensive income EURm 145 (198) Excellent C/I ratio of 52% (51) Common Tier1 ratio 19.8% (18.8) ROE%: 1.% (216:1.3) Nordea book value in Group accounts EURm 7,9 (+positive valuation difference EURm 363) EURm 1,6 1,4 1,2 1, Low Quarterly Result Volatility Restructuring/ impairment charges/gains Loan losses Operating profit 1 Source:Nordea

11 Sampo Group Nordic Financial Group with Strong Brands Diversified Companies & Diversified Portfolio* P/L CONTRIBUTIONS* LOW VOLATILITY EARNINGS LOW VOLATILITY C/R FOCUS ON U-L & WM LOW VOLATILITY C/R PBT Geographical diversification Geographical diversification Finland & Baltics Denmark IF 45% ML 1% Nordea 45% Strong Retail Banking Franchise Diversified earnings base: Banking (Retail, Wholesale) Wealth Management (Asset Management, Private Banking, Life & Pensions) Low earnings volatility & stable ROE over the cycle Strong Retail P&C Franchise Several Lines of Businesses Motor, Cargo Workersʼ compensation Liability Accident Property Low C/R volatility and Conservative Investments Strong Finnish Position Product areas Wealth Management Unit-linked Business With-profit Business Remuneration services Risk insurance Dependency on Capital Markets Second largest insurance company Nation-wide businesses Non-life insurance Life insurance Pension fund Stable insurance risk and low C/R volatility * Correlations of quarterly Reported Profits Q1/25 Q1/218 11

12 Sampo Group Nordic Financial Group with Strong Brands Steady Development of Profit before Taxes EURm 2,6 If P&C Mandatum Life Nordea / Investment If P&C Topdanmark / Associated Mandatum Life Nordea / Associated If P&C Topdanmark Mandatum Life Nordea / Associated 2,482 ** 2,2 1,8 1,4 1,32 1,228 1,616 1,668 1,759 1,888 1,871 Q1/218 Q1/217 If P&C Topdanmark 6 21 ML Nordea Holding Group , Holding Banking Life Topdanmark If P&C ** Includes 76 EURm from valuing of Topdanmark to fair value (with share price DKK 247.7) 12

13 Sampo Group Nordic Financial Group with Strong Brands Investment Allocation Total Group (MEUR) 26,524 25,286 27,111 14, 12, 12,192 11,459 11,647 1, 8, 6, 5,816 6,582 5,944 6,263 6,991 6,8 4, 2, 1,933 1,62 2,465 If P&C Topdanmark Mandatum Life Sampo Plc If P&C Topdanmark Mandatum Life Sampo Plc If P&C Topdanmark Mandatum Life Sampo Plc 12/16 12/17 3/18 Money Market 8% 4% 13% 75% 3% 4% 14% 74% 7% 1% 13% 78% Long-Term Fixed Income 79% 67% 47% 2% 84% 68% 49% 18% 82% 64% 5% 9% Equity 13% 12% 26% 5% 13% 1% 25% 7% 11% 9% 26% 3% Private Equity % 1% 4% % % 3% 3% % % 3% 4% 9% Other % 16% 1% 1% % 15% 8% 1% % 14% 8% 1% 13

14 Sampo Group Nordic Financial Group with Strong Brands Sampo Group s FICO Solvency March 31, 218 Group solvency ratio 146% EURm 12, 1, 8, 6, 3,71 1,842 4, 2, 1,895 If P&C* 1,47 Mandatum Life** Topdanmark* Sampo plc* Sampo plc's share of Nordea 7,443 Total minimum requirement for Own Funds Group s Own Funds *) Standard formula **) Standard formula + transition measures 14

15 Sampo Group Nordic Financial Group with Strong Brands Sampo Group Solvency by Solvency II Rules March 31, 218 Ratio of eligible Own Funds to Group SCR 146% EURm 12, 1, 8, 6, 4, 3,72 7,394 1,763 2, 3,692 Consolidated Group SCR* Nordea and Other financial sector Group SCR Group s own funds *) Standard formula 15

16 If P&C A Pan-Nordic Diversified P&C Insurer 16

17 If P&C Diversified Nordic P&C Insurer Diversified Client Base 1-3/218 By Business Area By Country Gross Written Premiums EURm 1,621 17% 39% 3% 41% Private Commercial Industrial Baltic 1% 3% Norway 29% 29% 29% Sweden Finland Denmark Baltic Technical Results EURm % 6% 3% 3% 67% Private Commercial Industrial Baltic Other 2%3% 3% Norway 26% 22% 44% Sweden Finland Denmark Baltic Other 17

18 If P&C Diversified Nordic P&C Insurer Disciplined Underwriting and Diversification CR % Standard deviation Q1/28-Q1/ % 1 If P&C and BA Combined Ratios and deviation Norway Baltic Private If P&C Finland Sweden Commercial Industrial Denmark Average CR% Q1/28-Q1/ If P&C and Nordic Weighted Average CR% If P&C Nordic Market (excl.if) 87.6 Topdanmark If P&C Nordic market excl. If (-16) RSA Scandinavia Direct Line AXA Generali Allianz ZFS Aviva Expense ratio 217, % Standard deviation % 3.9% 3.9% 4.8% 4.3% 18

19 If P&C Diversified Nordic P&C Insurer Conservative Investment Portfolio Private Equity.2 % Equities 11% Covered Bonds 25% Investment Allocation Total EURbn 11.6 Real Estate.2 % Other. % Duration 1.4 years Average Maturity 2.6 years Fixed Income Running Yield 1.5% Money Market 7% Other Fixed Income 47% Public Sector 9% 8% 6% 4% 2% % EURm 1, % Mark-to-Market Investment Return 1.8% 6.1% 5.% 4.1% 1.5% 2.9% 2.6% Mark-to-Market Investment Return Q1/218 Q1/217 % Q1/218 Q1/217 EURm

20 If P&C Diversified Nordic P&C Insurer Seasonality in Quarterly Results and CR% EURm Investment result Technical result Operating result Q4 Q3 Q2 Q1 Average Quarterly CR%, Year 217 CR% Year 218 CR%

21 If P&C Diversified Nordic P&C Insurer If P&C Solvency March 31, 218 Standard Formula Solvency Ratio 214% Internally assessed Solvency ratio 293% EURm 4, EURm 4, 3,5 3, S&P TTC for A rating 3,46 EURm 3,5 3, S&P TTC for A rating 3,46 EURm 2,5 2, 1,5 1, 5 1,32 1, ,895 4,63 2,5 2, 1,5 1, , ,387 4,63 LAC = Loss Absorbing Capacity, DT = Deferred Taxes, SCR= Solvency Capital Requirement 21

22 Topdanmark A Danish Non-life and Life Insurer 22

23 Topdanmark Danish P&C and Life Insurer Diversified business model 1-3/218 Pre-tax profit, DKKm 344 Premiums earned, DKKm 4,682 13% 3% Non-life insurance Life insurance 32% 27% Non-life insurance, Personal Non-life insurance, SME 84% Parent company 19% 22% Life insurance, regular Life insurance, single Trend in technical result % Distribution channels Non-life Life Head office and life sales Others (banks etc.) Danica Pension Danske Bank Car dealers and Home Brokers Telephone sales etc. 23 Insurance sales reps.

24 Topdanmark Danish P&C and Life Insurer Non-life insurance Technical result by Business Line, DKKm % 51% Personal SME Combined Ratio by Business Line, % % Personal SME Real Estate 5% Equities 4% Money Market 17% Private Equity % Investment Allocation Other Fixed Income 1% Total EURbn 3.1 Other 15% Public Sector 1% Covered Bonds 57% 6% 4% 2% % 4.1% 3.4% 1.% Investment Return 4.4% Claims ratio Q1/218 Q1/217 % -.1.7% 2.1% DKKm Expense ratio Q1/218 Q1/217 DKKm

25 Topdanmark Danish P&C and Life Insurer Life insurance Result by components, DKKm 44 Gross Premiums (Regular and Single), DKKm 2,49 DKKm 5 Regular premiums,dkkm 881 Single premiums DKKm 1,528 Individual policies, single % 11% 21% 3% Individual policies, regular Policies, part of a tenure single 24-7 Policies, part of a tenure, regular Inv.return on shareholders equity (Life Holding) Sales and Insurance administration risk Risk return on shareholders equity Profit on life insurance 43% Group life, regular 25

26 Topdanmark Danish P&C and Life insurer Topdanmark Solvency March 31, 218 EURm 1, Partial Internal Model Solvency ratio 24% as reported by Topdanmark, Net figures EURm 1,5 1, 5 EURm 1,5 1, Standard Model Solvency ratio 168% used in Sampo Group SCR calculations Partial Internal Model Solvency ratio 24% Gross figures LAC = Loss Absorbing Capacity, DT = Deferred Taxes, SCR= Solvency Capital Requirement 26

27 Mandatum Life A Finnish Financial Services Company 27

28 Mandatum Life - A Finnish Financial Services Company Mandatum Life Business Volumes 1-3/218 Technical Provisions, EURm 11,398 With-Profit EURm 38 Premiums Written EURm 244 With-Profit EURm 3,65 Insurance Savings EURm 1, , , ,377 2,156 U-L EURm 26 U-L EURm 6,896 EURm 12, 1, 8, 6, 4, 2, Unit-linked Guaranteed interest rates 1,637 2,359 3,124 3,54 3,833 4,616 5,312 5,858 6,44 7,66 6,97 4,487 4,431 4,41 4,249 4,71 3,927 5,65 5,14 4,821 4,572 4,491 Note: Excluding reserves for decreased discount rate, future bonus reserves and longevity reserve Unit-linked life Unit-linked capital redemption Other life Other capital redemption Unit-linked pension Unit-linked Baltic Other pension Other Baltic 28

29 Mandatum Life - A Finnish Financial Services Company Investment Portfolio covering With-Profit liabilities Unlisted Equity % Investment Allocation Asset Allocation , 6 8 EURm Private Equity 4 % Real Estate 4% Listed Equity 25 % Commodities Other Biometric % Alternative,2% 4 % Trading Derivatives % Duration 2.3 years Average Maturity 2.6 years Fixed Income Running Yield 2.5% Money Market Securities and Cash 13 % Government Bonds 1 % Credit Bonds, Funds and Loans 49% 15% 1% 5% % -5% EURm % -1.4% 9.4% 7.1% 4.6% 6.9% 6.7% 5.6% Mark-to-Market Investment Return Mark-to-Market Investment Return Q1/218 Q1/217 % Q1/218 Q1/217 EURm

30 Mandatum Life - A Finnish Financial Services Company Mandatum Life Profit by Components EURm 1-3/ /217 Net investment income Transferred to expense result Return on Unit-linked policies Return on With-profit policies* INVESTMENT RESULT EXPENSE RESULT** RISK RESULT OTHERS PROFIT BEFORE TAXES Change in the market value of investments PROFIT AT MARKET VALUES Mandatum Life Group, expense ratio Total expense ratio, % Incl. kick backs, % * Includes guaranteed interest, bonuses and change in the reserves of the above items ** Result of Unit-linked business EURm 7.3 3

31 Mandatum Life - A Finnish Financial Services Company Mandatum Life Solvency with transitional measures, March 31, 218 EURm SF with transitional measures Solvency ratio 186% 2,5 2, 1,5 1, ,947 * 5 1,239 1, * Own Funds without transitional measures EUR 1,555m LAC = Loss Absorbing Capacity, TP = Technical Provision, DT = Deferred Taxes 31

32 Nordea Bank The Largest Nordic Financial Services Group 32

33 Nordea - The most diversified Nordic bank Nordea 1-3/218 EURm EURm 3, 2,315 2, , 454 2, 441 1,25 1, , 2, , 536 1,53 1, Operating Income Group Functions & Other Russia, % Sweden, 29% Norway, 19% Operating profit breakdown The well-diversified credit portfolio, EUR 288bn Outside Nordic, 2% Denmark, 29% Finland, 21% Other fin. inst. 3% Shipp. & offshore 3% Retail trade 3% Cons. staples 4% Ind. com. services 4% Other 13% Real estate 15% Public sector 1% Household 54% Wholesale Banking Personal Banking 17.5 CET1 Requirement Diversified sources of Profit 19.8 Nordea CET1 ratio Operating Profit Wealth Management Commercial & Business Banking Nordea estimated CET1 and Own Funds requirement Q1/218,% 22.5 Own Funds requirement 1, Nordea Own Funds 33

34 Sampo plc Parent Company with Capacity to Generate Funds 34

35 Sampo plc - Parent Company with Capacity to Generate Funds Simple Cash Flows, low leverage and adequate liquidity Flow of Funds Balance Sheet, EURm Dividends If P&C Mandatum Life Nordea Topdanmark Income Interest on Liquidity Income from other investments Assets 12,91 Liabilities 12,91 Liquidity 1,922 CPs Issued 232 Investment assets 369 LT Senior Debt 3,359 - Real Estate 2 - Private Placements Fixed Income 22 - Bonds Issued 3,22 Sampo plc Internal Administration Costs Discretionary Dividends for Shareholders Interest Expenses for Bondholders - Equity & Private Equity Pension Insurance loans Subordinated Loans 485 Subordinated Debt Equity Holdings 9,197 Capital 8,392 - Subsidiaries 3,41 - Undistributable 98 - Associated 5,796 - Distributable Other Assets 118 Other Liabilities 18 Key Credit Metrics well in Single A range Sampo plc Gross Debt, EURm 3,591 Gross Debt to Equity 43% Financial Leverage 3% (= Debt/(Debt+Equity) Sampo Group, EURm Q1/218 Shareholders' Equity 13,571 Hybrid Bonds 464 Senior Debt 3,591 Financial leverage 25.6% 35

36 Sampo plc - Parent Company with Capacity to Generate Funds Cash and tradable financial investments million Instrument Market Value/ Nominal Cash EUR 1,922 Investment Assets EUR 369 Running Yield,% Sub-Ordinated Loans EUR Call Date - Mandatum Life T1 Perpetual EUR Annual - IF T2 3NC1 EUR Nordea AT1 PerpNC5 USD Nordea AT1 PerpNC5 USD Topdanmark T2 PerpNC5 DKK Topdanmark T2 PerpNC5.5 DKK Total EUR 2,776 In case subordinated loans are sold, both liquidity and Own Funds at Group level are generated This buffer of liquidity and Own Funds come with positive interest margin 36

37 Sampo plc - Parent Company with Capacity to Generate Funds Sampo plc Sources and Uses of Funds / Until year end 218 EURm Cash balance (as of ) 1,922 EURm Sources Uses SEK Bond Issuance 19 SEK Bond repayment 19 Sampo dividend 1,444 If dividends 6 Saxo Bank 265 Repayment of CPs 232 Total Sources 2,712 Total Uses 2,131 Cash balance (as of Dec 218)

38 Sampo plc - Parent Company with Capacity to Generate Funds Sampo Group Conservative Leverage EURm 16, 14, 12, 1, 8, Sampo plc Net debt Group NAV Group Equity 4% 35% 3% 25% Net debt/nav 6, 2% 4, 2, -2, 15% 1% 5% -4, % Q1/5 Q1/6 Q1/7 Q1/8 Q1/9 Q1/1 Q1/11 Q1/12 Q1/13 Q1/14 Q1/15 Q1/16 Q1/17 Q1/18 Q1/5 Q1/6 Q1/7 Q1/8 Q1/9 Q1/1 Q1/11 Q1/12 Q1/13 Q1/14 Q1/15 Q1/16 Q1/17 Q1/18 Loan-To-Values based on above figures is low Parent Companyʼs Financial Leverage is 3% => Sampoʼs position to refinance its debt is strong 38

39 Sampo plc - Parent Company with Capacity to Generate Funds Dividends Received by Payment Year EURm 1,6 1,4 1,2 1, Topdanmark Nordea Mandatum Life If P&C Extra Dividend If P&C ,555 1,452 1, , * *) Extra dividend 39

40 Sampo plc - Parent Company with Capacity to Generate Funds Reported Profit facilitates Debt Servicing EURm Q1/218 Dividend income* Operating expenses Net financial result ,69 1,226 1,567 1, * Profit before taxes ,5 1,229 1,567 1, *Parent Company is not equal to Holding Segment; Dividend Income includes also dividends from Private Equity investments 4

41 Sampo plc - Parent Company with Capacity to Generate Funds Issued Debt Instruments Instrument & Principal Coupon Swap Effective Rate Maturity CPs issued EURm 232 Euribor + Margin.25% Average 3M Senior Bond SEKm 2, (EMTN) Stibor3M % Euribor3M+1.375% 1.47% Senior Bond EURm 5 (EMTN) 1.125% % Senior Bond SEKm 2, (EMTN) Stibor3M +.77% Euribor3M %.2581% Senior Bond SEKm 1, (EMTN) 1.25% EUR 1.7% 1.7% Senior Bond EURm 5 (EMTN) 1.5% % Senior Bond EURm 75 (EMTN) 1.% % Senior Bond EURm % EUR6M +.735%.461% Senior Bond EURm % EUR6M+.562%.288% Public debt EURm 3, % Private placements EURm % Total EURm 3, % EURm 1, 5 CP s Senior under EMTN Senior Retail Private

42 Appendix Separate Supplementary Information 42

43 Appendix Separate Supplementary Information Sampo Group s Outlook for the rest of 218 Sampo Group s business areas are expected to report good operating results for 218. However, the mark-to-market results are, particularly in life insurance, highly dependent on capital market developments. The continuing low interest rate level also creates a challenging environment for reinvestment in fixed income instruments. If P&C is expected to reach a combined ratio target of per cent for the full-year 218. With regard to Topdanmark, reference is made to the profit forecast model that the company publishes quarterly. Nordea s contribution to the Group s profit is expected to be significant. 43

44 Appendix Separate Supplementary Information Sampo Group Steering Model and Principles Four separate and independent business areas and Sampo plc an active owner General Principles of Business activities Straightforward and transparent legal structure combined with limited intragroup exposures Clear responsibilities Simple and flat operational structures Personnel incentivized to increase shareholder value and guard profitability Parent company gives guidance to the subsidiaries by setting/contributing Strategy Targets for their capitalization and return on equity (RoE) Group-wide principles for Risk Management, Remuneration, Compliance, Code of Conduct and HR framework Subsidiaries organize underwriting activities independently taking into account The specific characteristics of their operations The above guidance from the parent company The stakeholders expectations and external regulations 44

45 Appendix Separate Supplementary Information Calculation Principles of Sampo Group Solvency Group Solvency Capital Under FICOD rules, capital is Group equity with some additional items added or deducted (subordinated loans, deferred tax assets, planned dividends ) Under SII rules capital referred to as Own funds (OF) consists mainly of excess of assets over liabilities Under normal circumstances Group OF by Solvency II and FICOD rules are close to each other SCR by Financial Conglomerate Rules The Group s SCR is the sum of the separate sub-groups requirements (sectoral rules) Banking rules are applied for the parent company No diversification effect between the companies SCR by Solvency II rules One capital requirement is calculated for the insurance group including the parent company Sampo plc, If P&C, Topdanmark and Mandatum Life. This includes diversification effects and also capital requirement for the translation risk related to SEK denominated equity of If P&C and DKK nominated equity of Topdanmark. Nordea s capital requirements are added to the requirement The SII SCR takes into account diversification only within the insurance group => Sampo Group Solvency Ratios are not comparable with most Insurance Groupsʼ solvency ratios 45

46 Appendix Separate Supplementary Information Structural changes of Sampo Group to the position as the leading Nordic financial group Mandatum Bank joins the Group, and the Group s name is shortened to Sampo. 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. Sampo Group s (If P&C s) Topdanmark holding exceeds 23 per cent and Topdanmark becomes If s associated company. Sampo Group (Mandatum Life) acquires Suomi Mutual s with-profit group pension portfolio. The portfolio transfer takes place on 3 Decenber 214. Mandatum Life ends distribution agreement with Danske Bank. Sampo s ownership exceeds 36% and Nordax becomes Sampo s accociated company. Sampo Insurance Company and Leonia merge into the Sampo-Leonia financial services group. The Group s business areas are long-term savings (life insurance, asset management and mutual funds), banking, investment banking, and P&C insurance. Sampo s P&C insurance operations are merged with If (22). Following the transaction, Sampo owns 38 per cent of If. If becomes fully owned by Sampo (24). Following the transaction, Sampo has three core businesses: P&C insurance, banking and long-term savings. Sampo s Nordea holding exceeds 2 per cent and Nordea becomes an associated company. Sampo Group (If P&C) acquires Tryg s Finnish Business and the acquisition was closed in May 213. If P&C signs a partnership agreement with Nordea. Sampo plc s ownership of Topdanmark exceeds per cent after the acquisition of shares from If P&C and in the market and hence Sampo is obliged to make a mandatory offer for the shareholders of Topdanmark. As a result Sampo plc owns 46.7 per cent of Topdanmark s shares and 49.3 per cent of votes. Topdanmark now becomes Sampo s associated company. Topdanmark becomes Sampo plc s subsidiary as of 3 Sept

47 Appendix Separate Supplementary Information If P&C Reinsurance Programmes If is using reinsurance to Utilize its own capital base efficiently and reduce cost of capital Limit large fluctuations of underwriting results Get access to reinsurers competence base If has the following Reinsurance Programmes in place In Million Catastrophe/ Event Property/ Risk Casualty Personal Accident Motor TPL Cargo Reporter Capacity SEK 6,3 SEK 2,5/4,75 SEK 5/ 5/$5 SEK 1,1 Unlimited SEK 1, Retention SEK 25 SEK 25 SEK 1/ 1/$15 SEK 1 SEK 1 SEK 1 In Million Marine Hull Reporter Small Vessels Clash Cover Marine Hull I.V. Reporter Marine Hull War Risk Reporter US Terrorism Risk Capacity SEK 55 SEK 25 SEK 31 SEK 6 USD 25 Retention SEK 1 SEK 1 SEK 1 SEK 2.5 USD 25 Casualty/ Cyber Event SEK 4/ 4/$5 SEK 2/ 2/$25 Largest & most diversified portfolio in the Nordics Focus purely on underwriting Specialised Reinsurance Unit Reinsurance partners having reinsurance as core business Diversified financially strong panel of reinsurers Stable reinsurance program Efficient pricing and broad terms Additional reinsurance purchased for risks with property value accumulations according to Solvency II requirements. 47

48 Appendix Separate Supplementary Information Nordic P&C Insurance Market Nordic Market Shares, % If P&C and Topdanmark P&C Market Shares by Country, % Other 25% LähiTapiola 4% OP 6% Folksam 6% Gjensidige 8% If 18% Codan 9% Total premiums EUR 26 bn If + Topdanmark 23% Topdanmark 5% Tryg 9% LF 1% If Finland If Norway If Sweden If Denmark + Topdanmark If Baltics Consolidated markets Loyal clients Direct sales dominates the market Various other distribution channels Low expense ratios Good profitability 48 Latest available data

49 Appendix Separate Supplementary Information Life insurance Market Finland Market Shares, % Mandatum Life and Topdanmark Life Market Shares by Country, % Sp- Henkivakuutus 3% Fennia 5% LähiTapiola 9% Aktia 2% Other 4% Nordea 31% Baltics/ Mandatum Life Danmark/ Topdanmark Life 7 9 OP Life 22% Total premiums EUR 4.5 bn Mandatum Life 24% Various distribution channels Bankassurance Unit-linked products Markets sensitive for regulation, tax changes, interest rate movements 49 Latest available data

50 Appendix Separate Supplementary Information Sampo Group Legal Supervision Structure SAMPO FICO GROUP SAMPO SII GROUP Sampo plc (FI) IF INSURANCE GROUP If P&C Insurance Holding Ltd (SE) MANDATUM INSURANCE GROUP Mandatum Life Ltd (FI) TOPDANMARK INSURANCE GROUP Topdanmark A/S (DK) 49.3% NORDEA BANKING GROUP Nordea Bank AB (SE) 21.3% IF P&C Insurance Ltd (SE) IF Livförsäkring AB (SE) Estonia Topdanmark Forsikring A/S (DK) Topdanmark Kapitalforvaltning A/S (DK) Various subsidiaries Autovahinkokeskus Oy (FI) 33.5% Finland Norway Denmark Urzus Group AS (NO) 3% IF P&C Insurance AS (EE) Latvia Lithuania If IT Services A/S (DK) Svithun Assurance AS (NO) 33% CAB Group AB (SE) 22% Latvia Lithuania Mandatum Life Services Oy (FI) Mandatum Life Investment Services Ltd (FI) Mandatum Life Fund Manag. Services Ltd (LU) Danske Forsikring A/S (DK) Topdanmark Liv Holding A/S (DK) Topdanmark Livforsikring A/S (DK) Nykredit Livforsikring A/S (DK) Topdanmark Invest A/S (DK) Topdanmark Ejendom A/S (DK) NORDEA INSURANCE GROUP Nordea Life Holding AB (SE) Various subsidiaries Source: FSA Finland, February 218 FICO GROUP Insurance SII GROUP Investment Services INSURANCE GROUP Banking BANKING GROUP Other Branch Subsidiary Associated Company Branch 49

51 Debt Investor Presentation JANUARY MARCH 218