Supplementary Financial Information Sampo Group. January - June 2009

Transcription

1 Supplementary Financial Information Sampo Group January - June 2009

2 Sampo Group in January June 2009 Sampo Group s profit before taxes amounted to EUR 433 million (422). EPS amounted to EUR 0.61 (0.60), at market values EPS was EUR 3.33 (-0.90). Net asset value per share amounted to EUR (8.28). In P&C insurance profit before taxes amounted to EUR 308 million (182), combined ratio was 92.5 per cent (92.4). In life insurance profit before taxes decreased to EUR 52 million (91). Segment Holding reported a profit before taxes of EUR 52 million (148). 2

3 Sampo Group s results Profit before taxes and net profit EURm Profit before taxes by quarters EURm / / Q208 Q308 Q408 Q109 Q209 Pre-tax profit Net profit 3

4 Earnings per share Reported EPS and EPS incl. change in the fair value reserve Reported EPS by quarter EUR EUR /08 1-6/ Q208 Q308 Q408 Q109 Q209 EPS (reported) EPS (incl. change in FVR) 4

5 Sampo Group s net asset value per share EUR / / / /2008 6/2009 5

6 Sampo Group s net asset value, 30 June 2009 EURm 6,000 4,000 3,775 6,102 2, ,908 0 P&C insurance Life insurance Holding Sampo Group (incl. eliminations) 6

7 Sampo Group s profit before taxes, January June 2009 EURm P&C insurance Life insurance Holding Sampo Group 1-6/ /2009 7

8 P&C insurance profit before taxes, January June 2009 EURm 2,000 2,352 2,174 1, ,000 Premiums written, net Investment income, net Claims incurred and change in ins. liabilities Costs Profit before taxes -2,000-1,612-1, / /2009 8

9 Life insurance profit before taxes, January June 2009 EURm Premiums written, net 16 Investment income, net Claims incurred and change in liabilities -115 Costs Profit before taxes / /2009 9

10 Holding profit before taxes, January June 2009 EURm Investment Other operating income, net Staff costs expenses Finance costs Profit before taxes 1-6/ /

11 Sampo Group s equity, EURm 4,631 6,090 5,365 5,298 1,629 1, ,364 Fair value reserve Retained earnings Invested unrestricted equity Restricted capital 31 December June

12 Sampo Group s fair value reserve development EURm , ,800-2,400-3,000-2,364-2,560 12/06 03/07 06/07 09/07 12/07 03/08 06/08 09/08 12/08 03/09 06/09 Sampo Group fair value reserve, after tax 12

13 Fair value reserve development by segment EURm 6/ / /2007 P&C insurance Life insurance Holding , Sampo Group* , *Eliminations included and figures after tax 13

14 Fair value reserve by segment and asset class, 30 June 2009 EURm Fixed income Equity Derivatives held for hedging Deferred taxes FVR net P&C Insurance Life Insurance Holding Sampo Group* *Figures after tax 14

15 , ,173 1, ,157 1,502 1,690 1,661 1,310 1,895 1,976 2,695 2,657 3,148 3,395 Sampo Group s economic capital 12/2005-6/2009 EURm 3,000 2,000 12/ /2006*) 12/ /2008**) 3/2009 6/2009 1,000 0 P&C *)New methodology since 2008 Life Holding Sampo Group (incl. diversification effect) **) 99.5% VaR since

16 Sampo Group s economic capital split by risk type, 30 June 2009 Operational risk 6% Insurance risk 22% Credit risk 9% Market risk 63% 16

17 LOB Diversification P&C insurance economic capital split by risk type, 30 June 2009 (99.5% VaR) EURm 2,800 Subordinated loans Liability side adjustment 2, *) 2,100 1, , ,062 0 Insurance risk Market Risk Credit Risk Operational Risk Diversification Total Adjusted Solvency Capital *) Part of If s subordinated loans not included in the current regulatory capital base (but allowed for in QIS 4) 17

18 Life insurance economic capital split by risk type, 30 June 2009 (99.5% VaR) EURm Liability side adjustment Insurance risk Market Risk Credit Risk Operational Risk Diversification Total Adjusted Solvency Capital 18

19 Sampo Group Economic Capital, 30 June 2009 (99.5% VaR) EURm Market risk Credit risk Insurance risk Operational risk Diversification Total If Mandatum Sampo plc Diversification Sampo Group Life total 19

20 Group economic capital and solvency, 30 June 2009 According to Solvency II EURm 6,000 If s subloan not included in adjusted Group capital Liability side adjustments, If and Mandatum Life 6, ,500 Excess capital EUR 3.7bn 3,000 1, ,525 1, , ,062 P&C Life Holding Diversif. Group Economic Capital Adj. Group Solv. Capital 20

21 Sampo Group s solvency capital EURm 6,000 4,000 3, % of minimum requirement 5, % of minimum requirement 2, December June 2009 Group solvency capital Regulatory minimum capital requirement 21

22 Return on equity in Sampo Group s business areas P&C insurance Life insurance 100% 95.7% 75% 50% 47.0% 25% 0% Target RoE RoE 1-6/2009 (annualised) 22

23 Sampo Group's investment allocation, 30 June 2009 Total EUR 18.9 billion Real estate 1% Other 2% Other equities 7% Nordea 22% Bonds 60% Money Market 8% Investments of Sampo plc, Mandatum Life and If P&C 23

24 Fixed income allocation Sampo Group, 30 June 2009 Total EUR 13.0 billion US, 6% Other, 2% Euro money market, 11% Scandinavian money market, 4% Scandinavian, 47% Euro, 31% 24

25 Fixed Income Allocation by sector, 30 June 2009 Total EUR 13.0 billion Corporate, 22% Money market, 15% Government, 17% Banks, 24% Banks covered bonds, 22% 25

26 Equity allocation Sampo Group, 30 June 2009 Total EUR 5.5 billion North America, 2% Japan, 1% East Europe, 1% Western Europe, 2% Finland, 7% Far East, 2% Scandinavia, 10% Nordea, 76% 26

27 Sampo plc s investment allocation, 30 June 2009 Total EUR 4.2 billion Other, 1% Fixed Income, 3% Nordea, 97% 27

28 Sensitivity of Group investments to market risks on 30 June 2009 EURm If P&C Mandatum Life Sampo plc Sampo Group Equities -10% % Interest rates -100 bps bps Alternatives -10% *Eliminations included and figures after tax +10% Currency -5% -3(SEK) 8 (EUR) 197(EUR) - +5% +3(SEK) -8 (EUR) -197(EUR) - The changes of interest rates have a strong effect to the reinvestment risk of the insurance companies. The sensitivities include the effects of derivative positions, but do not capture indirect effects, like the impact of the changes of the discount rates in the value in force. All sensitivities are before taxes. The scenario definitions assume an uniform movement of the whole underlying market. 28

29 Sampo plc s ownership structure, 31 July 2009 Solidium* 14.1 % Foreign and nominee Varma Mutual registered owners Pension 8.5 % 50.9 % Ilmarinen Mutual Pension Other domestic owners % 20.2 % 3.1 % Björn Wahlroos 2.1 % Kaleva Mutual Insurance 1.1 % * Entirely owned by the Finnish State 29

30 Sampo Group staff, 30 June June December 2008 P&C INSURANCE 6,853 6,924 Finland 1,785 1,805 Sweden 1,908 1,875 Norway 1,639 1,644 Baltics, Russia, Denmark and other 1,521 1,600 LIFE INSURANCE Finland Baltics and other HOLDING Sampo plc (Finland) TOTAL SAMPO GROUP 7,361 7,458 The number of part-time employees has been changed to correspond to full-time employees according to working hours (Full-time equivalent). 30

31 P&C INSURANCE Figures in this section represent If operations as stand alone unless otherwise stated. This creates minor deviations from consolidated Sampo Group figures.

32 Breakdown of gross premiums written in If P&C, January June 2009 by business area Total EUR 2,337 million by country , Private Commercial Industrial Baltic and Russia Norway Sweden Finland Denmark Baltic and Russia 32

33 If premium change in euros and in SEK by business area, 1-6/2009 vs. 1-6/2008, % EUR 0.0 SEK fixed rates IF GROUP -8.3% IF GROUP 6.2% PRIVATE -8.5% PRIVATE % -0.1 COMMERCIAL -8.4% COMMERCIAL 6.1% -0.4 INDUSTRIAL -8.0% INDUSTRIAL 6.6% BALTIC AND RUSSIA % BALTIC AND RUSSIA 7.0% -9% -6% -3% 0% 3% 6% 9% 33

34 If P&C insurance result Profit and loss account*, EURm 1-6/ /2008 Premiums earned 1,796 1,912 Claims incurred -1,350-1,439 Operating expenses Other technical income and expenses 1 3 Allocated investment return transferred from the nontechnical account Technical result Investment result Allocated investment return transferred to the technical account Other income and expenses -3-3 Operating result *According to consolidated Sampo Group figures 34

35 If P&C s technical result by business area, January June 2009 EURm Private Commercial Industrial Baltic and Russia Other Group 35

36 If P&C s technical result by country, January June 2009 EURm Norway Sweden Finland Denmark Baltic and Russia Other Group 36

37 If P&C s combined ratio development % /08 1-6/09 Risk ratio Cost ratio 37

38 If P&C s solvency capital EURm 30 June December 2008 Shareholders equity 1,908 1,577 Subordinated notes Deferred tax assets and liabilities, net Solvency capital 2,619 2,221 38

39 Solvency capital & solvency ratio for If P&C EURm % 100 3,000 2,000 1, June 2009 Solvency capital Solvency ratio

40 135% 144% 157% 159% 170% 192% 177% 174% 245% 256% 254% 261% 250% 247% If P&C s reserve strength 225% 150% 75% 0% June 2009 Reserves/NWP Reserves/Claims paid 40

41 If P&C - key figures by quarter Q209 Q109 Q408 Q308 Q208 Q108 Q407 Q307 Q207 Premiums earned, net (EURm) Technical result (EURm) Risk ratio (%) Cost ratio (%) Expense ratio (%) Combined ratio (%) Insurance margin (%)

42 If P&C - key figures by business area Q2/2009 PRIVATE Combined ratio COMMERCIAL Combined ratio 91.4% 92.5% 89.6% 90.2% 94.1% 94.5% 92.5% 93.3% Jan-June08 Jan-June09 Q208 Q209 Jan-June08 Jan-June09 Q2/08 Q2/09 HIGHLIGHTS Premiums decreased by 8.9 per cent from Q2/2008 (in euros) Technical result decreased by 14.4% from Q2/2008 KEY FIGURES GWP: EUR 531 m (583 ) NPE: EUR 477 m (517) Technical result: EUR 71 m (83) Risk ratio: 65.8% (65.5%) Cost ratio: 24.4% (24.1%) Insurance margin: 15.0% (16.1%) HIGHLIGHTS Premiums decreased by 14.0% from Q2/2008 Technical result decreased by 14.2% from Q2/2008 KEY FIGURES GWP: EUR 186 m (217) NPE: EUR 278 m (299) Technical result: EUR 35 m (40) Risk ratio: 69.2% (68.6%) Cost ratio: 24.1% (24.0%) Insurance margin: 12.4% (13.5%) 42

43 If P&C - key figures by business area Q2/2009 INDUSTRIAL Combined ratio BALTIC AND RUSSIA Combined ratio 96.8% 96.0% 90.3% 87.7% 83.0% 89.7% 85.1% 90.3% Jan-June08 Jan-June09 Q208 Q209 Jan-June08 Jan-June09 Q208 Q209 HIGHLIGHTS Premiums decreased by 6.3% from Q2/2008 Technical result improved by 45.4% Risk ratio improved from 77.2% in Q2/2008 to 69.1% KEY FIGURES GWP: EUR 150 m (160) NPE: EUR 103 m (107) Technical result: EUR 21m (15) Risk ratio: 69.1% (77.2%) Cost ratio: 18.7% (18.8%) Insurance margin: 20.8% (13.3%) HIGHLIGHTS Premiums decreased by 12.5% from Q2/2008 Combined ratio deteriorated from 85.1% in Q2/08 to 90.3% KEY FIGURES GWP: EUR 37 m (42) NPE: EUR 39 m (38) Technical result: EUR 6 m (7) Risk ratio: 54.5% (52.6%) Cost ratio: 35.7% (32.5%) Insurance margin: 15.5% (18.6%) 43

44 FINLAND DENMARK NORWAY SWEDEN If P&C - key figures by country Q2/2009 Combined ratio 95.3% 93.7% 95.2% 87.9% 93.4% 94.1% 89.6% 92.9% Jan-June08 Jan-June09 Q208 Q209 Jan-June08 Jan-June09 Q208 Q209 GWP: EUR 328 m (369) NPE: EUR 323 m (357) Technical result: EUR 57 m (38) Risk ratio: 64.7% (72.2%) Cost ratio: 23.2% (23.0%) Insurance margin: 17.8% (10.6%) GWP: EUR 309 m (368) NPE: EUR 257 m (294) Technical result: EUR 38 m (55) Risk ratio: 71.0% (67.5%) Cost ratio: 21.9% (22.1%) Insurance margin: 14.7% (18.4%) 107.5% 86.8% 88.6% 83.9% 87.2% 95.9% 96.5% 99.2% Jan-June08 Jan-June09 Q208 Q209 GWP: EUR 162 m (157) NPE: EUR 204 m (201) Technical result: EUR 33 m (41) Risk ratio: 62.2% (58.6%) Cost ratio: 24.9% (25.4%) Insurance margin: 16.2% (20.1%) Jan-June08 Jan-June09 Q208 Q209 GWP: EUR 68m (65) NPE: EUR 74m (72) Technical result: EUR -1m (6) Risk ratio: 79.7% (73.4%) Cost ratio: 27.8% (25.9%) Insurance margin: -1.2% (7.6%) 44

45 If P&C s investment allocation, 30 June 2009 Total EUR 9.8 billion Money Market 4% Equities 7% Other 1% Bonds 88% 45

46 LIFE INSURANCE

47 Life Insurance profit by components 1-6/ /2008 Net investment income 251,3 16,1 - Transferred to expense result -5,2-8,4 - Return on unit-linked policies -117,7 177,3 - Return on with-profit policies* -76,9-99,0 INVESTMENT RESULT 51,4 86,0 EXPENSE RESULT -1,4 2,8 RISK RESULT 7,6 7,0 OTHERS -5,3-4,6 PROFIT BEFORE TAXES 52,4 91,2 Change in the market value of investments 162,0-257,9 PROFIT AT MARKET VALUES 214,4-166,7 *Includes guaranteed interest, bonuses and change in the reserves of the above items 13 July

48 Mandatum Life breakdown of premiums written & insurance savings Premiums written, EURm 1-6/2009 Insurance savings, EURm 6/ Unit-linked life Unit-linked pension Unit-linked capital redemption Unit-linked Baltic Other life 3, Other pension Other capital redemption Other Baltic 22 July

49 Mandatum Life technical reserves traditional vs. unit-linked EURm 7,000 6,000 5,000 4,000 3,000 2,000 1, /2009 Guaranteed interest rates Unit-linked 49

50 Mandatum Life s market share in Finland % Q/2009 All products Unit-linked 50

51 Solvency of Mandatum Life Group SOLVENCY CAPITAL Q2/ Capital and reserves Dividend payment 0 0 Subordinated capital Unrealised gains Deferred taxes from Fair Value Reserve Deferred taxes on profit brought forward Other items TOTAL TECHNICAL PROVISIONS Technical provisions on own account 6, 335 6,119-75% of t/p in unit linked insurance -1,427-1,227 TOTAL 4,907 4,891 SOLVENCY RATIO % OF TECHNICAL RESERVES 11,6 7,9 13 July

52 Mandatum Life s investment allocation, 30 June 2009 Total EUR 4.8 billion Equities other 14% Real Estate 3% Private Equity 4% Other 2% Money Market 20% Nordea 1% Bonds 56% 27 August,

53 OUTLOOK

54 Sampo Group s outlook for the rest of 2009(1) Conditions in the investment markets improved significantly in the second quarter of A clear change of sentiment seems to have taken place in the market as the global economy is beginning to pull out of the recession. Despite the encouraging signs, the recession is not quite over yet. Recovery will take its time, as will the build up of confidence in securities markets. As markets improve, volatility will remain high however, injecting a measure of uncertainty into any forecast for the immediate future. Sampo Group s result for 2009 will largely depend on the earnings of the P&C insurance operation, although improving asset values will reflect on valuations of Sampo Group s investment assets and the returns achieved. The reported profit is expected to remain on a good level. 54

55 Sampo Group s outlook for the rest of 2009(2) The macroeconomic situation will have a small negative impact on premium growth in P&C insurance and the insurance technical result of If P&C is not expected to suffer in 2009 from the economic downturn. If P&C is expected to reach a combined ratio of per cent, well below its long-term target of 95 per cent. Mandatum Life s reported profit is expected to remain stable. The marked-to-market result is to a very large extent dependent on investment markets and it is impossible to reliably estimate it for Holding segment s profit for full-year 2009 consists mostly of the EUR 80 million dividends received from Nordea in April With the current asset composition the Holding segment will report a loss in the second of half of 2009 due to finance and other costs but the effect will be small in the Group context. Sampo plc may increase its holding in Nordea further provided that market conditions remain favourable and start consolidating the holding with equity method once reaching 20 per cent. 55

56 Supplementary Financial Information Sampo Group January - June 2009