Supplementary Financial Information JANUARY DECEMBER 2017

Transcription

1 Supplementary Financial Information JANUARY DECEMBER

2 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

4 Key Financial Figures Sampo Group 4

5 Sampo Group results Profit before taxes and net profit Profit before taxes by quarters EURm EURm 2,500 Includes 706 EURm from valuing of Topdanmark to fair value 2,482 2,239 1,400 1,200 1,181 2,000 1,500 1,871 1, , Includes 706 EURm from valuing of Topdanmark to fair value 706 1, Profit before taxes Net profit 0 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 5

6 EURm 2,800 Sampo Group profit before taxes 2,600 2,482 2,400 2,200 2,000 Includes 706 EURm from valuing of Topdanmark to fair value 1, ,800 1,600 1,776 1,400 1,200 1, If 2016 If 2017 Topdanmark Topdanmark Mandatum Life 2016 Mandatum Life 2017 Nordea 2016 Nordea Holding* 2016 Holding* 2017 Sampo Group 2016 Sampo Group 2017 * Holding excluding Nordea 6

7 Sampo Group profit before taxes by quarter EURm

8 Profit before taxes and comprehensive income EURm Profit before taxes Comprehensive income 3,000 2,500 2,000 1,500 1, Includes 706 EURm from valuing of Topdanmark to fair value , , If Topdanmark Mandatum Life Nordea Sampo Group 8

9 Sampo Group gross written premiums 2017 If Total 4,526 EURm Topdanmark 196 Total 2,326 EURm Mandatum Life 116 Total 966 EURm Sampo Group 1, Total 7,818 EURm 4, ,217 5, Non-life Unit linked With profit Non-life Unit linked With profit Non-life Unit linked With profit Non-life Unit linked With profit 9

10 Earnings per share EPS and Comprehensive result EPS Reported EPS by quarter EUR Includes 1.26 EUR from valuing of Topdanmark to fair value EUR Includes 1.26 EUR from valuing of Topdanmark to fair value Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 EPS (reported) EPS (comp. result) 10

11 Sampo Group net asset value per share EUR

12 Net asset value per segment, 31 December 2017 EURm 20,000 18,000 16,000 14,000 12,000 Nordea book value in Group accounts 7,578 EURm + valuation difference 1,102 EURm ,000 8,000 6,000 4,000 2, ,719 1,512 1,421 8,680 If Topdanmark Mandatum Life Nordea Sampo plc & eliminations 14,089 Sampo Group 12

13 Return on equity in Sampo Group s business areas 120% 100% If Mandatum Sampo Group 80% 60% 40% 20% 53.2% 97.6% 55.7% 39.8% 36.2% 21.8% 12.4% 7.7% 36.9% 28.5% 19.9% 24.4% 18.3% 13.8% 18.1% 11.4% 10.9% 21.5% 12.7% 14.0% 25.3% 15.9% 15.0% 21.3% 13.3% 17.1% 24.7% 14.8% 17.8% 0% -20% -40% -60% -0.8% -68.8% -32.4% -11.7% -80% Average 13

14 Fair value reserve development by segment EURm 12/ / / /2014 If Mandatum Life 598.7**) 595.7**) 532.1**) Holding Sampo Group *) 1,163.4**) 1,108.1**) 931.9**) 1,016.7 *) Eliminations included and figures after tax **) Excluding the segregated portfolio 14

15 Fair value reserve by segment and asset class, 31 December 2017 EURm Fixed income Equity Deferred taxes The share transferred to the segregated portfolio FVR net If Mandatum Life Holding Sampo Group *) , ,163.4 *) Eliminations included and figures after tax 15

16 Investments Sampo Group 16

17 Investment allocation Sampo Group, 31 December 2017 By sector Total EUR 22.2 billion By company Money market 12% Public sector 5% Covered Bonds 23% Other fixed income 39% Equities 15% Private equity 1% Real estate 2% Other 3% If 52% Topdanmark (P&C) 13% Mandatum Life 28% Sampo plc 7% Investments of If, Topdanmark (excluding life insurance), Mandatum Life and Sampo plc 17

18 Fixed income investment allocation Sampo Group excluding Topdanmark, 31 December 2017 By geography Total EUR 15.4 billion By sector Europe money market 14% Scandinavia money market 2% Europe 18% Scandinavia 55% North America 11% Other 1% Money market 16% Public sector 7% Covered bonds 21% Banks 26% Corporate 30% 18

19 Fixed income investments in public sector Sampo Group excluding Topdanmark, 31 December 2017 EURm Government Government guaranteed Public sector, other Total Sweden Norway Finland Germany Japan Denmark Total ,120 19

20 Financial sector fixed income investments by country and investment class Sampo Group excluding Topdanmark, 31 December 2017 Covered bonds Money market Long-term senior debt Long-term subord. debt Total % Sweden 2, ,221 34% Finland 108 1, ,942 20% Norway ,285 13% United States % Denmark % United Kingdom % France % Netherlands % Canada % Switzerland % Australia % Other % Total 3,247 2,348 3, , % 20

21 Equity investment allocation Sampo Group excluding Topdanmark, 31 December 2017 Total EUR 3.1 billion By geography By company Scandinavia 33% Finland 19% North America 11% Western Europe 25% Emerging Markets 11% Latin America 1% If 46% Mandatum Life 50% Sampo plc 4% 21

22 Investment returns excluding Topdanmark, January December 2017 Yield, % EURm ML*) If Group ML*) If Group Fixed income 2.8% 2.2% 2.4% 110 (-3) 226 (46) 364 Equities 18.0% 9.3% 14.1% 281 (217) 137 (118) 436 Other (incl. FX net result) -1.8% % -14.4% -15 (0) Total 5.6% 2.6% 3.2% Realized sales gains and losses in parenthesis *) Including the segregated portfolio 22

23 Market risk sensitivity of Group investments excluding Topdanmark, 31 December 2017 EURm If Mandatum Life*) Sampo plc Sampo Group Equities -10% % Interest rates -100 bps bps Other -10% % Local currency -5% % The changes of interest rates have a strong effect on 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. *) Including the segregated portfolio 23

24 Capital Position Sampo Group 24

25 Group capital and minimum requirement, Solvency II applied to insurance co s, 31 December 2017 EURm Group solvency ratio 154% 14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, ,508 5,004 2,517 11,021 Group capital Intangibles and other Sectoral items Group's own funds Total capital requirement 7, ,441 1,087 1, Sampo plc Topdanmark Nordea Mandatum Life If 25

26 IF 26

27 Key Financial Figures If 27

28 If profit before taxes and comprehensive income EURm Profit before taxes Profit for the period Comprehensive income 28

29 If combined ratio development % Claims ratio Expense ratio % Risk ratio Cost ratio

30 If combined ratio development 110.0% 100.0% Combined ratio excluding the one-offs is 86.1%. Combined ratio excluding the one-offs is 86.5%. 90.0% 80.0% % 94.9 % 91.9 % 89.9 % 90.6 % 91.8 % 92.1 % 92.8 % 92.0 % 88.9 % 88.1 % 87.7 % 85.4 % 84.4 % 85.3 % 70.0% 30

31 If GWP growth by business area and by country*, 2017 vs Total 1.8% Private 2.0% Commercial 1.1% Industrial 1.6% Baltic 6.1% Sweden 4.1% Norway 2.6% Finland -3.2% Denmark 1.5% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% *excluding currency effects 31

32 If technical result by business area and by country, 2017 vs EURm By business area By country (155) 48 (43) (13) (16) (18) (13) (147) 15 (16) (247) 640 (658) (658) (431) 267 (216) 0 32

33 If results by quarter EURm Q4/17 Q3/17 Premiums earned 1,071 1,086 Claims incurred Operating expenses Other technical income and expenses -2-1 Allocated investment return transferred from the non-technical account 3 4 Technical result Investment result Allocated investment return transferred to the technical account Other income and expenses 1-1 Operating result

34 If key figures by quarter Q4/17 Q3/17 Q2/17 Q1/17 Q4/16 Risk ratio, % Cost ratio, % Expense ratio, % Combined ratio, % Insurance margin, %

35 If key figures by business area, Q4/2017 (Q4/2016) Private Commercial Industrial Baltic GWP, EURm 635 (634) 187 (185) 53 (52) 34 (31) NPE, EURm 645 (646) 290 (293) 102 (102) 35 (33) Technical result, EURm 104 (95) 45 (35) 18 (7) 4 (4) Risk ratio, % 60.2 (61.8) 62.6 (65.4) 59.8 (68.5) 56.6 (56.3) Cost ratio, % 23.6 (22.7) 22.5 (21.7) 23.3 (22.9) 31.2 (32.2) Combined ratio, % 83.8 (84.6) 85.1 (87.0) 83.1 (91.4) 87.7 (88.5) Insurance margin, % 16.4 (15.1) 15.3 (12.1) 17.3 (6.7) 12.3 (11.2) 35

36 If key figures by country, Q4/2017 (Q4/2016) Norway Sweden Finland Denmark GWP, EURm 299 (300) 359 (344) 137 (145) 81 (83) NPE, EURm 324 (340) 378 (357) 233 (246) 102 (98) Technical result, EURm 42 (70) 66 (23) 60 (41) -3 (1) Risk ratio, % 62.8 (57.3) 62.0 (71.4) 52.2 (58.0) 70.1 (69.6) Cost ratio, % 25.0 (22.8) 19.9 (20.9) 22.0 (21.6) 32.6 (28.8) Combined ratio, % 87.8 (80.1) 82.0 (92.3) 74.2 (79.7) (98.5) Insurance margin, % 13.1 (20.7) 18.0 (7.4) 25.8 (16.8) -2.7 (1.6) 36

37 Investments If 37

38 If investments, 31 December 2017 Investment allocation, Total EUR 11.5 billion AFS investments unrealized gains before taxes EURm Money market 3% Fixed income 57% Covered Bonds 27% Equities 13% Other 0.3% Duration 1.4 years Average maturity 2.7 years Fixed income running yield 1.5% -50 3/14 6/14 9/14 12/14 3/15 6/15 9/ /15 Fixed income 3/ /16 9/16 Equities 12/16 3/17 6/17 9/17 12/17 38

39 If mark-to-market investment returns Fixed income running yield Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 % % 12.0 % 12.4 % 10.0 % 8.0 % 6.0 % 4.0 % 2.0 % 7.4 % 1.8 % 6.1 % 5.0 % 4.1 % 1.5 % 2.9 % 2.6 % 0.0 % -2.0 % -4.0 % -3.1 %

40 Capital Position If 40

41 If Solvency Capital Requirement (SCR), Standard Formula (SF), 31 December 2017 EURm 4,500 4,000 Group solvency ratio 197% 3,500 3, , ,000 1, ,818 1, ,000 1, ,150 Market risk Counterparty risk Insurance risk Operational risk Diversification LAC of DT SCR SII own funds 41

42 If Solvency Capital Requirement (SCR), Partial Internal Model (PIM), 31 December 2017 EURm 4,500 4,000 Group solvency ratio 257% 3,500 3,000 2, ,000 1, ,875 1, ,404 1,510 0 IM Market risk SF Covered risk IM Insurance risk Operational risk Diversification LAC of DT SCR SII own funds 42

43 If, Solvency II stresses, test on Standard Formula Solvency II EOF ratio with transitional Equity Measures 250% 200% 197% 208% 212% 185% 179% 206% 188% 187% 193% 182% 150% 100% 50% +30% -30% +100 bps -100 bps +100 bps -100 bps 0% Solvency II ratio Q4/2017 Equity Interest rate Spread 1 in 10y run-off loss 1 in 10y Nat CAT +100 bps claims inflation 43

44 If rating capital requirement, 31 December 2017 EURm 4,000 3,500 3, ,500 1,809 2,000 1,500 3,098 3,408 1, ,535 Asset risks Liability risks Diversification Total A capital charge S&P capital base 44

45 TOPDANMARK 45

46 Key Financial Figures Topdanmark 46

47 Topdanmark combined ratio development % Combined ratio % Topdanmark part of the Sampo Group since Q4/

48 Investments Topdanmark 48

49 Topdanmark investments, 31 December 2017 Investment allocation Total EUR 2.9 bn Money Market 8% Other Fixed Income 3% Covered Bonds 64% Equities 5% Real Estate 5% Private Equity 1% Other 15% Excluding Topdanmark s Life Insurance assets. 49

50 Capital Position Topdanmark 50

51 Topdanmark Solvency Capital Requirement (SCR), Standard Formula (SF), 31 December 2017 EURm Group solvency ratio 166% 1,400 1,200 1,

52 MANDATUM LIFE 52

53 Key Financial Figures Mandatum Life 53

54 Mandatum Life profit before taxes and comprehensive income EURm Profit before taxes Profit for the period Comprehensive income 54

55 Mandatum Life Group profit by components EURm 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

56 Mandatum Life breakdown of unit-linked and with profit business Premiums written, total EURm 966 Insurance savings, total EURm 10,784 With profit EURm , , UL EURm 850 With profit EURm 3,722 2,178 UL EURm 7, ,231 Unit-linked life Unit-linked pension Unit-linked capital redemption Unit-linked Baltic Other life Other pension Other capital redemption Other Baltic Note: Excluding reserves for decreased discount rate, future bonus reserves and longevity reserve 56

57 Mandatum Life technical reserves EURm 12,000 10,000 8,000 6,000 4,000 2,000 Shares to be transferred to Danske Bank Unit-linked Segregated fund (0.5% after ) Reserve for decreased discount rate Other with-profit excl. segregated fund Guaranteed 3.5% 5,312 5,858 Guaranteed rate 4.5% 3,440 4,066 3,124 1,262 1,752 2,071 2,359 3,054 3,833 4, , ,228 1, , , ,915 2,984 2,925 2, , ,824 2,843 2, ,821 2,719 2, ,475 2,360 2,245 2,108 1, ,467 1,447 1,475 1,515 1,516 1,453 1,330 1,289 1,217 1,152 1,087 1,

58 Mandatum Life s gross written premiums by policy type in Finland EURm Unit linked With profit 58

59 Mandatum Life s new premiums written by distribution channel in Finland EURm Danske Bank Mandatum Life Other 59

60 Investments Mandatum Life 60

61 Mandatum Life investments, 31 December 2017 Investment allocation, Total EUR 5.2 billion* AFS investments unrealized gains before taxes Duration 2.0 years Average maturity 2.2 years Fixed income running yield 2.4% Money market 16% Fixed Income 40% Covered Bonds 2% Equities 28% Private equity 4% Other 9% EURm / / / / / /15 9/15 12/15 Fixed income /16 6/16 9/16 Equities 12/ / / / / * Excluding the segregated fund 61

62 Allocation of investments of the segregated assets, 31 December 2017 Investment allocation Total EUR 1.1 bn Money market 6% Fixed income 73% Covered Bonds 4% Equities 11% Private equity 2% Other 4% Duration 2.6 years Average maturity 3.3 years Fixed income running yield 2.1% 62

63 Mandatum Life mark-to-market investment returns* Fixed income running yield Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 % % 16.8% 15.0% 10.0% 11.1% 9.4% 7.1% 6.9% 7.2% 6.5% 5.0% 4.6% 0.0% -5.0% -10.0% -1.4% -7.8% * Excluding unit-linked and segregated fund assets 63

64 Capital Position Mandatum Life 64

65 Mandatum Life, Solvency II Capital Requirements with transitional measures, 31 December 2017 EURm 2,400 2,200 2,000 Group solvency ratio 182% 1,800 1,600 1, , ,000 1, ,263 1, Market risk Counterparty risk Life risk Diversification Operational risk LAC of TP LAC of DT SCR Own funds 65

66 Mandatum Life, SCR Coverage Ratio, Estimated sensitivities, 31 December % 180% 182% 175% 188% 176% 178% 160% 140% 120% 100% 80% 60% 40% 20% 0% Base case 31/12/2017 Interest rates -25 bps Interest rates +25 bps Equity -10% Credit spread +50% 66

67 HOLDING 67

68 Holding segment profit before taxes EURm Income Operating costs Finance costs Nordea Profit before taxes 68

69 Sampo plc investments, 31 December 2017 Investment allocation (unconsolidated) Total EUR 1.9 bn Money market 61% Fixed income 30% Equities 6% Other 3% Duration 0.7 years Average maturity 2.6 years Fixed income running yield 1.7% 69

70 Sampo plc balance sheet, 31 December 2017 Assets total, EURm 10,939 Liabilities total, EURm 10,939 Liquidity 1,199 CPs issued 293 Investment assets 235 LT senior debt 2,884 Real estate 2 Private placements 138 Fixed income 58 Bonds issued 2,746 Equity and private equity 175 Pension insurance loans Subordinated loans 496 Subordinated debt 0 Equity holdings 8,958 Capital 7,714 Subsidiaries (If, ML, Topdanmark) 3,401 Undistributable capital 98 Associates (Nordea) 5,557 Distributable capital 7,616 Other assets 50 Other liabilities 48 70

71 Net debt in Sampo plc EURm Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 + Gross debt 3,177 3,178 3,279 2,932 3,548 2,845 2,461 2,483 2,302 2,284 2,332 2,171 Bonds & notes 2,884 2,885 2,884 2,399 2,877 2,142 2,157 2,183 1,997 1,984 1,994 1,873 Domestic CP s Interest bearing assets Liquidity buffer + fixed income Subordinated loans 1,754 1,184 1,137 2,112 2, ,058 2,137 1, ,837 1, ,471 1, , , Net debt 1,423 1,994 2, ,443 1,853 1, ,654 1,

72 Sampo plc debt instruments, 31 December 2017 Instrument & Principal Coupon Swap Effective Rate Maturity CP s issued 293 EURm Euribor + Margin % Average 3M Senior Bond 2,000 SEKm Stibor3M % Euribor3M+1.375% % 29/05/2018 Senior Bond 500 EURm % % 24/05/2019 Senior Bond 2,000 SEKm Stibor3M % Euribor3M % % 28/05/2020 Senior Bond 1,000 SEKm % EUR 1.007% % 28/05/2020 Senior Bond 500 EURm % % 16/09/2021 Senior Bond 750 EURm % % 18/09/2023 Senior Bond 500 EURm 1.25% EUR6M % % 20/05/2025 Public debt 3,040 EURm % Private placements 138 EURm % Total 3,178 EURm % Key Credit Metrics Net debt, EURm 1,423 Equity, EURm 7,714 Gross Debt to Equity 41% Financial Leverage 29% 72

73 Dividends received by Sampo plc EURm 1,800 1,600 1,400 1,200 1, ,555 1,452 1, , *) **) If If, extra dividend Mandatum Life Nordea Topdanmark *) If made a sales gain in connection to the mandatory offer on Topdanmark shares and paid an extra SEK 2.8 billion (EUR 293 million) dividend to Sampo plc on 22 September **) Nordea Bank AB s Board of Directors proposes to the Annual General meeting to be held on 15 March 2018, a dividend of EUR 0.68 per share. With its current holding Sampo plc s share amounts to EUR 585 million. The dividend is proposed to be paid on 26 March A dividend of EUR 150 million is planned to be paid by Mandatum Life during the first quarter of If normally pays its dividend towards the end of the calendar year. 73

74 Sampo plc dividend per share EUR * * Board proposal to the Annual General Meeting to be held on 19 April

75 Sampo plc dividend yield, % 6.0% 5.0% 4.6% 5.0% 4.6% 5.4% 5.7% 4.0% 3.0% 2.0% 1.0% 0.0% Annual dividend yield, calculated using the year-end share price 75

76 NORDEA 76

77 Nordea s book value on Sampo Group s consolidated balance sheet, 31 December 2017 Nordea in Sampo Group s balance sheet EURm Acquisition price 5,557.3 Retained earnings 2,044.8 Accumulated other changes in Nordea s equity Share of Nordea s net profit Amortization Deferred tax 7.8 Dividends Share of Nordea s other comprehensive income Share of Nordea s other changes in equity 23.4 Share of Nordea s goodwill change 53.8 Total 7,578.1 Shares 860,440,

78 Nordea share price and book value EUR /31/2009 3/31/2010 6/30/2010 9/30/ /31/2010 3/31/2011 6/30/2011 9/30/ /31/2011 3/31/2012 6/30/2012 9/30/ /31/2012 3/31/2013 6/30/2013 9/30/ /31/2013 3/31/2014 6/30/2014 9/30/ /31/2014 3/31/2015 6/30/2015 9/30/ /31/2015 3/31/2016 6/30/2016 9/30/ /31/2016 3/31/2017 6/30/2017 9/30/ /31/2017 Share price, lhs Book value, lhs 78

79 Sampo s Nordea holding valuation differences EURm 3,500 3,000 2,500 2,000 1,500 1, , ,999 2,621 2,132 2,008 1,811 1,507 1,439 1,430 1, ,267 2,352 2,008 1,570 1, , /12 6/12 9/12 12/12 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 79

80 OUTLOOK 80

81 Sampo Group s outlook for 2018 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 continuing low interest rate level also creates a challenging environment for reinvestment in fixed income instruments. If P&C is expected to reach its long-term combined ratio target of below 95 per cent in 2018 by a margin. 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. 81

82 APPENDIX 82

83 Sampo Group structure Long-term investor Manager of capital structure and liquidity Pay-out ratio 50% 100% > 45% 100% 21.2% Subsidiary Subsidiary Subsidiary Associated Company 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 in Denmark One of Finland s most respected and best capitalised financial services providers to private & corporate customers The most diversified banking in the Nordics with strong capital generation Strategy Focus areas: Customer value Focused insurance expertise Nordic business platform Investment strategy with balanced risk Customer satisfaction Pricing Efficiency Digitalisation, Process optimisation, transformation Distribution efficiency Unit-linked products Wealth management Personal Risk insurance Group pension & Reward Services Transformation to be the Future Relationship Bank Efficient and scalable Fast and agile Resilient and compliant Investment assets ~ EURbn 11.5 ~ EURbn 2.9 (P&C) ~ EURbn 6.3 ~ B/S EURbn 582 ~ AuM EURbn 330 Return / profit target RoE above 17.5% CR% below 95% Profit margin of 10% CR% 91% RoE above 17.5% ROE above the Nordic peer average 83

84 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 30 Decenber Mandatum Life ends distribution agreement with Danske Bank. Sampo consolidates Topdanmark as a subsidiary as of 30 September 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 (2002). Following the transaction, Sampo owns 38 per cent of If. If becomes fully owned by Sampo (2004). Following the transaction, Sampo has three core businesses: P&C insurance, banking and long-term savings. Sampo s Nordea holding exceeds 20 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 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 41.1 per cent of Topdanmark s shares. Topdanmark now becomes Sampo s associated company. 84

85 Sampo plc s ownership structure, 31 December 2017 Solidium Oy 12.00%* Varma Mutual Pension Insurance Company 5.39 % Björn Wahlroos 1.80% The State Pension Fund 0.70% Ilmarinen Mutual Pension Insurance Company 0.67% Other domestic owners 17.03% Foreign and nominee registered owners 62.40% * Entirely owned by the Finnish state 85

86 Sampo Group staff Sampo Group staff (FTE) 31 December December 2016 If 6,451 6,200 Finland 1,777 1,663 Sweden 1,955 1,876 Norway 1,312 1,348 Denmark Baltic and other countries Topdanmark 2,405 - Denmark 2,403 - Mandatum Life Finland Baltic countries Holding Sampo Group, total 9,439 6,799 86

87 P&C insurance Market shares by country, % Norway Q3/2017 Sweden Q3/2017 Finland 2016 Gjensidige 26% If 21% Tryg 13% Sparebank1 10% DnB 5% Eika 4% RSA 3% Storebrand 3% Protector 3% Other 12% LF 31% If 18% Trygg-Hansa 15% Folksam 16% Moderna 3% Dina-gruppen 3% Gjensidige 2% Other 12% OP 32% LähiTapiola 26% If 23% Fennia 10% Other 10% Denmark 2016 Baltics 2016 Nordics 2016 Tryg 18% Alka 4% Topdanmark 17% If 6% Codan (RSA) 11% Alm.Brand 10% Gjensidige 7% Other 29% PZU 24% If 12% VIG 19% Ergo 13% Gjensidige 11% Seesam 6% Swedbank 7% Other 8% If 18% Topdanmark 5% Tryg 9% LF 10% RSA Scand. 9% Gjensidige 8% Folksam 6% OP 6% LähiTapiola 4% Other 25% 87

88 Life insurance Market shares by country, % Norway Q2/2017 Sweden Q3/2017 Finland 2016 DnB 15% Storebrand 17% KLP 35% Nordea Liv 11% Sparebank 6% Gjensidige 2% If 1% Tryg 1% Other 12% Skandia 13% SEB 8% Folksam 15% Swedbank 6% AMF Pension 9% Avanza 7% Nordea Liv 7% LF 5% Nordnet 3% Alecta 9% SHB 5% SPP 3% Danica 6% Other 2% OP Life 22% Mandatum Life (+Kaleva) 24% Nordea 31% LähiTapiola 9% Fennia 5% Aktia 3% Other 7% Denmark 2016 Baltics 2016 PFA Pension 39% Danica Pension 22% Nordea Liv & Pension 16% SEB Pension 8% Topdanmark 8% AP Pension 6% Alm.Brand 1% Other 1% Mandatum Life 7% Other 93% 88

89 Supplementary Financial Information JANUARY DECEMBER 2017 Sampo plc Fabianinkatu Helsinki, Finland Phone: Business ID: sampo-plc 89