Keefe, Bruyette & Woods 211 UK Day and European Financials Conference Group CFO Peter Johansson 2 September 211
Structure Sampo plc Parent company for the Group Market Cap ~ EUR 11 bn* 21.3% Over 2% Nordea Mandatum Life MARKET POSITION The largest Nordic P&C insurer, second largest in the Baltics The largest pan Nordic Financial Services group Leading life & pension insurer in Finland, with Baltic operations STRATEGY Underwriting focus Pan Nordic synergies Profit oriented Cost, Risk & Capital Unit linked products & Wealth Management INVESTMENT ASSETS ~ EUR 11. bn ~ EUR 593 bn B/S ~ EUR 56bn 5.6 RETURN TARGET RoE above 17.5% CoR below 95% TSR in the top of quartile of European peer group Risk adjusted profit to double in 26 213 RoE above 15% RoE above 17.5% * August 16, 211 2
History Sampo Group has gone through several structural changes in its history. The timeline below outlines the major changes in Sampo Group during the 21st century. 2 21 22 23 24 25 26 27 29 21 211 Sampo Insurance Mandatum Company and Bank joins Leonia merge into the Group, the Sampo Leonia and financial services the Group s group. The Group s name is business areas are shortened long term savings to Sampo. (life insurance, asset management and mutual funds), banking, investment banking, and P&C insurance. 22 Sampo s P&C insurance operations are merged with If. Following the transaction, Sampo owns 38 per cent of If. 24 If becomes fully owned by Sampo. Following the share transaction, Sampo has three core businesses: P&C insurance, banking and long term savings. Sampo Group divests Sampo Bank Group to Danske Bank A/S. Following the transaction, Sampo s business areas are P&C insurance and life insurance. In addition, Sampo plc has investment assets of approximately Eur 5 billion. Kari Stadigh succeeds Björn Wahlroos as a new Group CEO Sampo s Nordea Sampo Group s holding exceeds (If P&C s) 2% and Nordea TopDanmark becomes an holding associated exceeds 2% and company. Topdanmark becomes If s associated company. Group s holding of Nordea is 21.28%, 28% 3
Nordic financial groups market cap and main owners Sept 5, 211, EURm Nordea DnB NOR Handelsbanken Swedbank Danske Bank S E B Gjensidige Tryg Storebrand Pohjola Bank Topdanmark 4, 8, 12, 16, 2, 24, 28, 8) 1) 11) 4) 9) 6) 3) 7) 5) 2) 1) Sampo market cap Highlights A dominant owner in most groups % of votes Sampo 21.3 Norwegian government 34 Oktogonen 1.5 Industrivärden 11.7 Folksam 9.4 Møller Maersk Group and Foundation o 22.8 Fonden Realdania 1.1 Investor 2.9 Wallenberg Foundation 1.3 Gjensidigestiftelsen 63.5 Tryghedsgruppen 6 Gjensidige 24.3 Central Cooperative 61 Member co ops banks 13 Sampo 23.2 Jyske Bank Nykredit 7.2 Alm.Brand Major shareholder(s) Next largest shareholder Other shareholders Alm.Brand af 1792 fmba 58.1 1)Swedish State 13.5%, 2)Savings Bank Foundation 1.1%, 3)Robur Fonder 3.1%, 4) Sparbank Gruppen Members 7.2%, 5)Norges Bank 1.4%, 6)Trygg Foundation 8.2%, 7) Folketrygdfondet 2.8%, 8) Jp Morgan Chase Bank 5.4 %,9)Ilmarinen 5,4%, 1)ATP,AES 6.3% %, 11)Baillie Gifford 5.1% 4
Sampo Group results EURm 8 6 4 Profit before taxes and net profit 621 518 756 634 EURm 45 4 35 3 25 2 15 2 1 264 192 199 Profit before taxes by quarters 287 334 338 361 387 369 H1/21 H1/211 Pre tax profit Net profit 5 5
Sampo Group profit before taxes EURm 7 H1/21 H1/211 621 756 5 422 3 333 231 294 1 69 84 1 8 42 If P&C Mandatum Life Nordea Holding*) Sampo Group *) excl. Nordea 6
Sampo Group results EURm 8 6 4 Profit before taxes and net profit 621 518 756 634 EURm 45 4 35 3 25 2 15 2 1 264 192 199 Profit before taxes by quarters 287 334 338 361 387 369 H1/21 H1/211 Pre tax profit Net profit 5 7
Fair value reserve development by segment and asset class, 3 June 211 EURm Fixed income Equity Derivat. held for trading Deferred taxes FVR net P&C insurance 17.6 112.8 57.9 162.5 Life insurance 125.2 364.3 2. 127.8 363.7 Holding 1. 1.4.1.3 Sampo Group*) 234.5 474.7 2. 185.3 525.8 *) Eliminations included and figures after tax 8
Fixed income investments in governments Total EUR 1.1 billion Netherlands Other 3 % 3 % Germany 7 % Norway 8 % Sweden 4 % United States 12 % France 12 % Finland 17 % 9
Fixed income investments in banking sector Covered bonds Money market Long term senior debt Long term subord. debt Total % Sweden 3,298 24 1,69 311 4 918 58 % Finland 62 887 187 121 1 256 15 % Norway 278 43 255 964 11 % Denmark 75 171 132 378 4 % France 77 171 16 265 3 % United dstates 15 1 16 2% Germany 56 81 137 2 % Switzerland 94 94 1 % Estonia 69 69 1 % Netherlands 69 69 1 % United Kingdom 4 17 57 1 % Austria 31 1 32 % Luxembourg 1 1 % Belgium 5 5 1 % Ireland 4 4 % Latvia 1 1 % Grand Total 3,888 1,197 2,474 867 8,426 1 % 1
If P&C Business in a nutshell Geographical presence Facts about If 21 (29) If P&C provides insurance If generated EUR 77m (611m) in pre tax profits solutions and services in: Excellent combined ratio of 92.8% (92.1%) Finland Sweden Risk ratio 69.1% (68%) Denmark Cost ratio 23.7% (24.1%) Norway Baltics (and Russia) Expense ratio 17.2% (17.6%) Business model resilient over the cycle H1/11 H1/1 Pre tax profit, EURm 422 333 CR,% 92.7 94.1 Risk ratio,% 69.4 7.6 Cost ratio,% 23.4 23.5 by business area Gross premiums written by If 21 by country 122 591 Private Norway 374 122 Commercial Sweden 886 Industrial Finland 2,239 1,24 Baltic and Russia Denmark Baltic and Russia 1,314 1,496 11
Largest Nordic P&C insurer with synergies Market shares, % Norway 21 GWP EUR 5.4 bn Gjensidige 28% Finland 21 If 26% GWP EUR 3.4 bn Tryg 17% Pohjola 28% Sparebank 1 1% If 25% Sweden 21 GWP EUR 6.4 bn LF 29% If 19% Tapiola 19% Fennia 1% RSA (T H) 16% Folksam 15% Baltics 21 GWP EUR.9 bn Denmark 29 RSA 21% GWP EUR 6.2 bn If 15% Tryg 21% BTA 15% Topdanmark 19% Ergo 13% Codan (RSA) 14% Gjensidige 7% Alm. Brand 1% Nordics* Zurich Nordic market shares of total GWP EUR 2bn Other 32% Pohjola 5% LF 8% If Generali RSA 9% If 19% Topdanmark 6% Tryg 12% Gjensidige 9% Expenseratios 21,% Allianz 28 % If 5% Aviva 32 % AXA RSA 17 % 19 % 27 % 28 % 28 % 28 % * Weighted average of leading P&C companies in the Nordics 12 Source: AXCO, National insurance associations, company reports
A well diversified Nordic P&C insurer Combined Ratio Development Geographical Diversification in CR % 1 1.9 92.6 9.5 89.9 9.6 91.8 92.1 92.8 94.1 92.7 8 26.6 25.6 24.3 24. 23.7 23.7 24.1 23.7 23.5 23.4 Cost 6 ratio 4 Risk 74.3 67. 66.2 65.9 66.9 68.1 68. 69.1 7.6 69.4 ratio 2 If- Total If Sweden If Norway If Finland If Denmark Combined Ratio Average & Standard Deviation Q1/25 Q4/21 If Gjensidige Pohjola Topdanmark Tryg 91.3 94.7 91.5 88 9.3 2.6 5.3 5.6 5.6 5.7 About Diversification ifi Sources Retail business Geographics/ Lines of Businesses Large Claims Weather Effects / Events 13
12 11 1 9 8 7 6 5 Nordic P&C insurance companies 1 6/211 CR, claims and expense ratios,,% 89.8 91.6 91.6 92.3 92.7 93.7 94 12 13 13.7 18.5 11.1 119.6 14 12 1 8 6 4 2 Expense ratio Claims ratio Ceded reins. 95.6 81. 83. 81.5 82.6 84.1 69.2 7.1 75.4 75.7 68.9 74.3 75. 16 21.5 16.3 16.9 17 16.8 19 21 2 22.2 25.9 26 24 Reported ceded reinsurance may cause variations between companies CR% and its parts. G=Gross CR; N=Net CR, O=Operating CR 14
Mandatum Life Business in a nutshell Geographical presence Facts about Mandatum 21 (29) Mandatum Life provides life and pension insurance services in: Finland Baltics Mandatum Life is a leading life and pension insurer in Finland Mandatum has a strong market position in Finland with ca. 25% of the market Mandatum contributed with EUR 142m (121) in pre tax profit to the Group EURm H1/11 H1/1 Pre tax profit 84 69 66 58 Premiums written 21, EURm 3 22 197 135 Unit-linked life Unit-linked pension Unit-linked capital redemption Unit-linked Baltic Other life Other pension 454 Other capital redemption Other Baltic Insurance savings 21, EURm 21 19 1,173 1,7 3,793 729 334 146 15
Life insurance Market shares by country, % Norway Q1/211 Storebrand Livforsikring 28% Sweden 21 Topdanmark, 4% *Exposed to competition Denmark* 21 Other, 32 SEB, 5% Sampension, 9% PFA Pension, 23% Danica Pension, 17% (Danske) Nordea Pension, 1% SPP Gjensidige 4% If Other (Storebrand) Other Forsikring Danica 5% % 9% Länsförsäk Skandia 4% 4% (Danske) ringar 13% Sparebank1 Vital 7% Swedbank Försäkring Livforsikring Forsikring Nordea Liv 11% 31% 7% Nordea Liv (DnB) Avanza SEB Trygg 8% Liv KLP 8% 11% 15% Handelsbanken 9% Folksam 11% AMF Pension 1% Total Fennia 3% Tapiola 9% Nordea 27% Baltics Q2/211 Finland H1/211 Aktia 3% Other 8% Mandatum Life 23% Mandatum Life 19% Mandatum Life 32% Unit linked OP Life 27% 16
Life insurance companies in Finland EURm 7 6 5 4 3 2 1 Premiums written 1 6/1 473 473 Premiums written 1 6/11 42 158 185 59 3 4 9.1 57 52 69 5 12 29 ML Nordea OP Life Aktia Tapiola Fennia Other 45 EURm 9 8 7 6 5 4 3 2 1 84 Profit before taxes 1 6/1 Profit before taxes 1 6/11 52 3.4 69 2 4.3 4.9 15.1 8.3 6.9 ML OP Life Aktia Tapiola Fennia Rm EU 3 25 2 15 1 5 5 245 13 Investment income, net 1 6/1 Investment income, net, 1 6/11 152 1 15.4 14.2 23 2.1 25. 2. 15. 1. 5.. Solvency ratio 6/1 Solvency ratio 6/11 23.2 18. 18.1 15.8 15.9 13.6 2.7 15.9 16.1 18.9 17. 1.4 ML OP Life Aktia Tapiola Fennia Nordea ML OP Life Aktia Fennia 17
Life insurance companies in Finland return on investment assets 2 15 1 26 27 28 29 21 H1/211 Threats concerning with profit business: Higher capital requirements under Solvency 2 Prolonged low interest rate environment 5 5 9.4 5 7.8 16.8 11.1 1.3 4.9 3.7 6.1 4.3 4.8 2.3 4 2.6 12 8.8 9.5.9 1 4.9 4.6 4.4 4 1.7 7.2 6.5 4 1.1 1 7 4.9 1.5 11.3 6.2 9.5 5.6 5.2 1.2 9.8 4.1 1.8 17.9 12.3 2 1 15 Mandatum Nordea Life OP Life Fennia Life Tapiola Life Aktia Kaleva P.a. Life Finland 26 6/211 6.2% 2.4% 2.2% 4.3% 4.1% 3.4% 6.% 18
Sampo s Nordea ownership ll 2% 19.8% 2.1% 2.3% 2.5% 2.5% 2.5% 21.3% 1, million shares 34 8 89 818 83 83 83 86 18. 7 8 9 73 %.3%.3% 1.1% 12.2% 15.5% 4 5 6 96 25 267 267 288 318 42 4% 7% 3.1% 3.7% 7.6% 9.6% 1. 1. 11 1 1 2 3 4 44 81 97 19.4 1. 3 1 19
Nordea Nordic champion Quarterly Operating Profit & Loan Losses Highlights EURm 1,5 1,2 9 6 Operating profit Loan losses Write backs 356 425 358 21 36 32 89 347 261 245 166 242 27 118 895 978 932 1,78 885 883 847 781 833 818 832 59 92 878 73 96 1,71 1,3 949 Nordea s operating profit has remained stable throughout the financial crisis Nordea has excellent earnings quality, a diversified loan book and a limited exposure to Baltic countries and other Eastern Europe Similar to If P&C, Nordea has strong retail franchise thus creating diversification ifi i benefits to Sampo s business portfolio Nordea has maintained a solid AA rating and access to capital 3 markets throughout h t the financial i crisis and its capital base was strengthened through a rights issue in 29 Strong Impact of rising i interest t rates on Net Interest Income 2
Sampo plc s Balance Sheet Balance Sheet Assets m 8,363 Liabilities m 8,363 Liquidityidit 186 CPs Issued 549 Investments 38 LT Senior Debt 1,341 Real Estate 4 Private Placements 125 Private Equity 14 Bonds Issued 1,216 Other 2 Pension Comp. Loans Hybrid Loans 114 Hybrid Debt Equity Holdings 7,928 Capital 6,379 Subsidiaries 2,37 Undistributable 98 Associated 5,557 Distributable 6,281 Other Assets 98 Other Liabilities 95 21
Sampo plc s debt Debt Instruments 31.7.11 Swap Coupon Net Margin Current Maturity Senior Bond 75 m EUR3M + 4,565% 6,339 % 4,565 % 5,6395 % 12.4.12 Senior Bond SEK 1,75m EUR3M + 1,7638% STIBOR3M 1,7638 % 3,24 % 16.9.11 Senior Bond 3 m EUR3M + 1,486% 4,25% 1,486% 2,973 % 22.2.216 CP s issued 549 m EURIBOR,4% 1,7 % Public Debt 1,765 m 3,718 % Private Placements 125 m 3,386% Total SampoPlc, 1,89 m 3,6731 % 22
Sampo is a dividend stock % 7 6 5 4 3 2 1 Dividend yield, year end share price, % 66 6.6 5.9 6. 5.9 5.7 26 27 28 29 21 23
Keefe, Bruyette & Woods 211 UK Day and European Financials Conference Group CFO Peter Johansson 2 September 211