Sampo Group´s results for January - March 2010
(Thomson Reuters ONE) -
SAMPO PLC INTERIM REPORT 5 May 2010 at 9.30 am
SAMPO GROUP´S RESULTS FOR JANUARY - MARCH 2010
Strong earnings growth
Sampo Group's profit before taxes for the first three months of 2010 rose to EUR
287 million (169). The total comprehensive income for the period, taking changes
in the market value of assets into account, amounted to EUR 596 million (-59).
* Earnings per share amounted to EUR 0.44 (0.23) and marked-to-market EPS was
EUR 1.06 per share (-0.10). The return on equity for the Group rose to 30.1
per cent for the period (-5.1).
* Net asset value per share amounted to EUR 16.12 (14.63). The fair value
reserve after tax on the Group level increased to EUR 536 million (296).
* The difficult winter conditions in the Nordic countries were reflected in
the insurance technical performance of the P&C insurance operation and the
combined ratio for the first quarter of 2010 rose to 98.2 per cent (94.2).
The profit before taxes was EUR 125 million (144) and marked-to-market
result EUR 308 million (69). Return on equity rose to 52.7 per cent (14.4).
* In the life insurance operations the profit before taxes increased to EUR
36 million (27) and the marked-to-market result amounted to EUR 133 million
(-32). The return on equity at market value improved significantly to 65.4
per cent (-52.0).
* Nordea is accounted for as an associated company. In the segment reporting
share of Nordea's net profit is included in the holding segment. The profit
before taxes for the segment amounted to EUR 126 million (-21), of which
Nordea's share was EUR 124 million.
KEY FIGURES 1-3 1-3 Change
EURm 2010 2009 %
Profit before taxes 287 169 69
P&C insurance 125 144 -13
Life insurance 36 27 33
Associates (Nordea) 124 - -
Holding excl. associates 2 -21 -
Profit for the period 245 127 93
Change
Earnings per share, EUR 0.44 0.23 0.21
EPS, marked-to-market, EUR 1.06 -0.10 1.16
NAV per share, EUR *) 16.12 14.63 1.49
Average number of staff (FTE) 6,982 7,454 -472
Group solvency ratio, % *) 167.6 158.3 9.3
RoE, % 30.1 -5.1 35.2
*) comparison figure from 31.12.2009
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 2009 unless otherwise stated.
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 and
Russia. 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, the Baltic countries and Russia.
If's operations are divided into four business areas: Private, Commercial,
Industrial and Baltic&Russia.
Results 1-3 1-3 Change
EURm 2010 2009 %
Premiums 1,416 1,327 7
Net income from investments 117 102 15
Other operating income 5 5 -6
Claims incurred -710 -630 13
Change in insurance liabilities -467 -435 7
Staff costs -122 -106 15
Other expenses -108 -110 -2
Finance costs -7 -8 -8
Profit before taxes 125 144 -13
Key figures
Change
Combined ratio, % 98.2 94.2 4.0
Risk ratio, % 74.8 70.7 4.1
Cost ratio, % 23.5 23.5 0.0
Expense ratio, % 16.9 17.2 -0.3
Return on equity, % 52.7 14.4 38.3
Average number of staff (FTE) 6,468 6,928 -460
In the first quarter of 2010 If P&C's technical result suffered from the extreme
winter conditions in the Nordic countries. Extraordinary winter related claims
amounted to roughly EUR 70 million. Despite adverse claims development
marked-to-market result grew to EUR 308 million (69), because of favorable
investment environment.
Profit before taxes for P&C insurance for the first three months of 2010
decreased to EUR 125 million (144). The technical result was EUR 68 million
(105). The technical result for Private business area amounted to EUR 27 million
(50), Commercial EUR 24 million (30), Industrial EUR 15 million (17) and Baltic
and Russia EUR 1 million (6). The decrease in the technical result, particularly
in Business areas Private, Commercial and Baltics&Russia, was due to increased
claims frequency in motor and property insurance caused by severe winter
conditions increasing water, fire and motor claims. An exceptionally high number
of winter related claims was reported to If P&C in the first quarter of 2010.
The evaluation of their impact on If's reinsurance programs is underway. The
completion of the review is expected to have a minor positive impact on If's
technical result.
Insurance margin (technical result in relation to net premiums earned)
decreased from the previous year to 7.2 (11.8). Return on equity (RoE) was high
at 52.7 per cent (14.4) and the fair value reserve increased to EUR 238 million
(105).
The combined ratio for January - March 2010 was burdened by the extraordinary
winter claims and deteriorated to 98.2 per cent (94.2). EUR 40 million (20) was
released from the technical reserves related to prior year claims. Business area
Industrial accounted for EUR 13 million of the increase from last year.
In the Private business area the combined ratio increased to 99.6 (94.8). Higher
claims frequency due to the severe winter conditions deteriorated the risk ratio
to 75.9 per cent (71.0). In the Commercial business area risk ratio rose 2
percentage points to 73.6 per cent (71.6) and as the cost ratio remained stable
the combined ratio weakened to 97.6 per cent (95.6).
Large claims development in the Industrial business area was unfavorable, and
despite the improvement in the cost ratio, the combined ratio rose to 94.0 per
cent (92.8). In the Baltic&Russia business area the combined ratio deteriorated
to 99.7 per cent (89.1) due to increased claims cost related to extraordinary
winter.
Norwegian and Danish operations were equally negatively hit by the severe winter
and increased large claims costs. The combined ratios increased to 107.5 per
cent (99.6) and to 110.2 per cent (85.6), respectively. Combined ratios for the
Finnish and Swedish operations, however, improved, to 82.7 per cent (90.0) and
to 94.6 per cent (95.3), respectively.
Gross written premiums grew 6 per cent to EUR 1,507 million (1,422). However,
adjusted for currency the premiums decreased 1.1 per cent. In the business area
Private the premiums grew 3.2 per cent. In the Industrial business area the
premiums were significantly affected by recessionary effects. The sharpest
decrease was again felt in the business area Baltic&Russia, where the premiums
dropped 21 per cent.
The cost ratio was unchanged at 23.5 per cent despite the pressure on premium
volume development. Adjusted for currency the costs decreased 1.1 per cent. In
business areas Private and Industrial the cost ratio improved whereas in the
business area Baltic&Russia it weakened.
As at 31 March 2010, total investment assets amounted to EUR 11.3 billion (10.7)
of which 87 per cent (89) was invested in fixed income instruments and 12 per
cent (11) in equities. Net income from investments rose to EUR 117 million
(102). Investment return for the first three months of 2010 was 2.8 per cent
(0.5). Duration for interest bearing assets was 2.2 years (2.5).
As at 31 March 2010 If P&C's solvency ratio (solvency capital in relation to net
premiums written) amounted to 83 per cent (77). The solvency capital was EUR
3,305 million (2,943) in comparison to the regulatory minimum capital
requirement of EUR 668 million. Reserving position continues to be strong with
reserve ratio of 173 per cent (171) of net premiums written and 239 per cent
(240) of claims paid.
Life insurance
Mandatum Life Group consists of Mandatum Life, a wholly-owned subsidiary of
Sampo plc, operating in Finland, and its subsidiary Sampo Life Insurance Baltic
SE, which has the form of a European company and is headquartered in Estonia. It
operates in the other Baltic countries through branches.
Results 1-3 1-3 Change
EURm 2010 2009 %
Premiums written 348 144 142
Net income from investments 214 50 328
Other operating income 0 0 -55
Claims incurred -208 -187 11
Change in liabilities for
inv. and ins. contracts -292 45 -
Staff costs -9 -7 39
Other operating expenses -14 -15 -9
Finance costs -2 -3 -6
Profit before taxes 36 27 33
Key figures
Change
Expense ratio, % 127.8 131.2 -3.4
Return on equity, % 65.4 -52.0 117.4
Average number of staff (FTE) 461 471 -10
Mandatum Life's first quarter of 2010 was successful both in terms of
profitability and sales. Marked-to-market result amounted to EUR 133 million
(-32) and premium income rose 142 per cent to EUR 348 million.
Profit before taxes in life insurance for January-March 2010 was EUR 36 million
(27). Net investment income, excluding income on unit-linked contracts, amounted
to EUR 74 million (67). Meanwhile, net income from unit-linked investments was
EUR 140 million (-17). The fair value reserve increased to EUR 316 million from
EUR 210 million at the end of 2009. Return on equity (RoE) in life insurance
surged to 65.4 per cent (-52.0).
Excluding the assets of EUR 2.7 billion (2.4) covering unit-linked liabilities,
Mandatum Life Group's investment assets amounted to EUR 5.7 billion (5.4) at
market values as at 31 March 2010. Fixed income represented 67 per cent (68),
equity 25 per cent (23), private equity 4 per cent (4), real estate 3 per cent
(3) and other assets 2 per cent (2) of the total assets.
Return on investments during January - March 2010 was 3.9 per cent (-0.2). At
the end of March 2010 the duration of fixed income assets was 2.6 years (2.6).
Mandatum Life's solvency position improved further during the first quarter of
2010. Solvency margin was 4.8 times regulatory minimum and the company also
exceeds clearly internal Economic Capital requirements. The solvency ratio was
21.4 (18.5). Mandatum Life Group's total technical reserves were EUR 7.1 billion
(6.8), of which unit-linked reserves accounted for 2.6 billion (2.4). The share
of unit-linked reserves of total technical reserves increased to 37 per cent
(35).
Expense ratio in Sampo Group's life operations improved to 127.8 per cent
(131.2). This ratio does not take into account all fees intended to cover the
operating expenses. Mandatum Life does not defer acquisition costs, which
burdens the first year's result.
Mandatum Life Group's premium income on own account grew significantly and
amounted to EUR 348 million (144). The growth was strongest in unit-linked
premiums and their share of total premiums increased to 69 per cent (64). All
sales channels improved their performance compared to 2009 with the Wealth
management and investment solutions unit posting strongest results. Premium
income from the Baltic countries grew 108 per cent and was EUR 12.7 million
(6.1).
Mandatum Life's overall market share in Finland measured by premium income rose
to 25.3 per cent (21.2) and market share in unit-linked business was 32.8 per
cent (27.3). Unit-linked market share in the Baltic countries amounted to 32 per
cent (17).
The embedded value of Sampo Group's life business (excl. Baltics) grew to EUR
1,147 million (620) as at 31 December 2009. The value-in-force decreased to EUR
391 million (415) largely due to change in the tax receivables and a decrease in
the investment margin assumptions. A detailed breakdown of VIF is presented in
the Supplementary Financial Information published in connection to this report
at www.sampo.com/result.
Holding
Sampo plc controls its subsidiaries engaged in P&C and life insurance. In
addition Sampo plc held on 31 March 2010 approximately 20 per cent of the share
capital of Nordea, the largest bank in the Nordic countries. Nordea is an
associated company to Sampo plc.
Results 1-3 1-3 Change
EURm 2010 2009 %
Net investment income 25 -6 -
Other operating income 4 2 83
Staff costs -4 -2 78
Other operating expenses -3 -6 -55
Finance costs -20 -9 123
Share of associates' profit 124 - -
Profit before taxes 126 -21 -
Change
Average number of staff (FTE) 53 55 -2
The segment's profit before taxes amounted to EUR 126 million (-21), of which
EUR 124 million relates to Sampo's share of Nordea's first quarter 2010 profit.
The segment, excluding share of Nordea's profit, reported a profit, which was
based on the positive marked-to-market effect from interest rate and cross
currency swaps used in managing the risk profile of the debt portfolio. The
strengthening of the Swedish krona was also beneficial as Sampo had part of its
liquidity in Swedish krona.
Sampo plc's holding in Nordea Bank was booked in the consolidated balance sheet
at EUR 5.2 billion. The market value of the holding was EUR 6.0 billion at 31
March 2010. In addition the assets on Sampo plc's balance sheet as at 31 March
2010 included holdings in subsidiaries for EUR 2.4 billion (2.4).
As at 31 March 2010 Sampo plc´s debt financing amounted to EUR 1,660 million, of
which senior bonds and notes accounted for EUR 991 million and commercial papers
EUR 525 million. Gross debt to Sampo plc's equity was 24 per cent (24).
Associated company Nordea Bank
On March 2010 Sampo plc held 817,968,606 Nordea shares corresponding to a
holding of 20.3 per cent. The average price paid per share amounted to EUR
6.39. The closing price as at 31 March 2010 was EUR 7.29.
As Sampo's holding exceeds 20 per cent Nordea is accounted as an associated
company in Sampo Group's accounts since 31 December 2009. Sampo's share of
Nordea's net profit is shown on the face of Sampo Group's profit and loss
account on the line Share of associate´s profit/loss.
The following text is based on Nordea's January - March 2010 interim report
published on 28 April 2010.
Nordea's first quarter 2010 result was significantly better than the previous
quarter and also better than the strong first quarter of last year. Total income
increased 7 per cent and expenses decreased 5 per cent from the previous
quarter. Operating profit was up 48 per cent from the previous quarter, mainly
due to higher net result from items at fair value, the restructuring costs in
the fourth quarter and lower net loan losses. Risk-adjusted profit increased 27
per cent compared to the previous quarter and decreased 9 per cent compared to
the first quarter last year.
Net interest income decreased 5 per cent from the previous quarter. Total
lending increased 4 per cent in the first quarter. Household lending volumes
continued to increase with increasing market shares. Also corporate lending
volumes increased in the quarter.
The improved business environment has contributed to a decrease of loan losses
and a stabilization of the growth of impaired loans. Net loan losses in 2010 are
likely to be lower than in 2009. The loan loss ratio was 37 basis points,
compared to 52 basis points in the fourth quarter. Credit quality continued to
stabilize and impaired loans increased at a lower rate, 5 per cent from the
fourth quarter.
Net interest income held up well, due to strong customer-related performance,
but is still subdued by the exceptionally low interest rates. To reach the
ambitious targets for 2013, Nordea's focus is now on the prudent growth strategy
and implementing the Group initiatives for growth, efficiency and a strong
foundation.
In its outlook for 2010, Nordea expects risk-adjusted profit to be lower in
2010 than in 2009, because of lower income in Treasury and Markets. However, net
loan losses in 2010 are likely to be lower than in 2009. Credit quality
continues to stabilize, in line with the macroeconomic recovery.
The core tier 1 capital ratio, i.e. excluding hybrid loans, was 10.1 per cent
excluding transition rules according to Basel II, the tier 1 capital ratio was
11.2 per cent and the total capital ratio was 13.6 per cent. Including
transition rules, the core tier 1 capital ratio was 9.2 per cent, the tier 1
capital ratio was 10.1.per cent and the total capital ratio was 12.3 per cent.
DEVELOPMENTS IN THE FIRST QUARTER OF 2010
Annual General Meeting
The Annual General Meeting held on 13 April 2010 decided to distribute a
dividend of EUR 1.00 per share for 2009. The record date for dividend payment
was 16 April 2010 and the dividend was paid on 23 April 2010. The Annual General
Meeting adopted the financial accounts for 2009 and discharged the Board of
Directors and the Group CEO and President from liability for the financial year.
The following members were re-elected to the Board of Directors: Tom Berglund,
Anne Brunila, Veli-Matti Mattila, Eira Palin-Lehtinen, Jukka Pekkarinen,
Christoffer Taxell, Matti Vuoria and Björn Wahlroos. At its organisational
meeting, the Board elected Björn Wahlroos as Chairman and Matti Vuoria as Vice
Chairman. The following members were elected to the Nomination and Compensation
Committee: Veli-Matti Mattila, Eira Palin-Lehtinen, Christoffer Taxell, Matti
Vuoria, and Björn Wahlroos. Tom Berglund, Jukka Pekkarinen and Christoffer
Taxell were elected to the Audit Committee.
The Annual General Meeting decided to pay the following fees to the members of
the Board of Directors until the close of the 2011 Annual General Meeting: the
Chairman of the Board will be paid EUR 160,000 per year, the Vice Chairman EUR
100,000 per year and the other members EUR 80,000 per year. After deduction of
taxes and similar payments, approximately 50 per cent of the Board members'
annual compensation will be paid in Sampo A shares and the rest in cash.
The Annual General Meeting resolved to amend section 12 of the Articles of
Association as a result of the amendments to Chapter 5, section 19 of the
Finnish Limited Liability Companies Act that entered into force on 3 August
2009 and 31 December 2009.
Personnel
The number of full-time equivalent personnel in Sampo Group remained fairly
stable during the first quarter of 2010. On 31 March 2010 the number of staff
was 6,975 compared to 7,087 on 31 December 2009. The average number of employees
in January - March amounted to 6,982 (7,454).
Approximately 93 per cent of the Sampo Group staff - 6,454 employees - worked in
P&C insurance on 31 March 2010. 1,747 employees worked in Finland; 1,845 in
Sweden; 1,546 in Norway and 1,316 in Baltics and other countries. The number of
personnel decreased slightly in each country due to reorganization of
activities.
Nearly 7 per cent of the Sampo Group staff - 469 employees - worked in life
insurance. Life insurance operations had 363 employees in Finland and 106
employees in Baltics. Recruiting of new staff into the Wealth Management and
Investment Solutions, Corporate Sales and IT units increased the number of staff
by nearly four per cent.
Approximately 1 per cent the Sampo Group staff - 52 employees - worked in the
holding company Sampo plc. There were no changes in the number of staff.
Management incentive schemes
The management incentive schemes of Sampo Group are of two types; long-term
management incentive schemes based on share appreciation rights and one
share-based incentive scheme.
The outcome of the long-term management incentive schemes is determined by
Sampo's share-price development over a period of approximately three years
starting from the issue of the respective program. The programs are subject to
thresholds on share price development and company profitability, as well as
ceilings for maximum bonuses. Furthermore, the programs are subject to rules
requiring part of the paid bonus to be used to acquire Sampo shares, which must
in turn be held for a specified period of time.
In 2006, Sampo's Annual General Meeting decided on a share-based incentive
scheme for the Executive Management belonging to the Group Executive Committee.
Under the program, the participants are granted the right to receive up to a
pre-determined number of Sampo shares, if Sampo's share price has outperformed a
predefined threshold value and insurance margin targets have been exceeded. The
bonus will be paid in Sampo shares, in cash or a combination thereof.
Furthermore, the programs are subject to lock-up on Sampo shares received.
Payments based on the long-term management incentive schemes in the first
quarter of 2010 amounted to EUR 2 million (0). No payments were made on the
basis of the share-based incentive scheme 2006 (0).
The terms of all incentive schemes are available on Sampo's web pages at
www.sampo.com/compensation.
Shares and share capital
As at 31 March 2010, Sampo plc had 561,372,390 shares, which were divided into
560,172,390 A shares and 1,200,000 B shares.
Sampo plc held 90,000 of its own A shares corresponding to 0.02 per cent of the
total number of shares and voting rights. The shares were purchased at an
average price of EUR 16.53 per share and the total amount paid for the shares
was EUR 1.5 million. The shares were purchased in late 2009 under the
authorization received in the AGM of 2009. The other Group companies held no
shares in the parent company.
The Annual General Meeting of 2010 authorised the Board to acquire in one or
several lots a maximum of 50,000,000 Sampo A shares. Shares can be repurchased
in other proportion than the shareholders' proportional shareholdings (private
repurchase). The share price will be no higher than the highest price paid for
Sampo shares in public trading at the time of purchase. The authorisation will
be valid until the close of the next Annual General Meeting, nevertheless not
more than 18 months after AGM's decision.
Internal dividends
In the first quarter of 2010 no dividends were paid to Sampo plc by its
insurance subsidiaries.
After the end of the reporting period, Sampo plc received on 13 April 2010 a
dividend of EUR 103 million (SEK 1,000 million) from If P&C Insurance Holding.
In addition the associated company Nordea Bank AB paid on 8 April 2010 Sampo plc
a dividend amounting to EUR 204 million.
Ratings
All the main ratings for Sampo Group companies remained unchanged in the first
quarter of 2010.
+------------------------------+------------------+---------------------+
| 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 |
+------------------------------+--------+---------+-----------+---------+
Group solvency
Sampo Group, with Nordea Bank AB (publ) as its associated company, is regarded
as a financial and insurance conglomerate according to the Act on the
Supervision of Financial and Insurance Conglomerates (2004/699).
Group solvency has been 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 31 March 2010 31 December 2009
EURm
Group capital 8,219 7,613
Sectoral items 1,832 1,545
Intangibles and other deductibles -2,373 -2,314
Dividends -702 -561
Group's own funds, total 6,977 6,283
Minimum requirements for own funds, total 4,162 3,968
Group solvency 2,815 2,315
Group solvency ratio
(Own funds % of minimum requirements) 167.6 158.3
The Group's solvency ratio (own funds in relation to minimum requirements for
own funds) was 167.6 per cent (158.3) as at 31 March 2010. 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 31 March 2010 was EUR
4,024 million (3,783) and adjusted solvency capital was EUR 7,608 million
(7,077).
OUTLOOK FOR THE REST OF 2010
The recovery of the global economy continued to gather pace in the first quarter
of 2010. Expectations of improving corporate earnings bolstered investor
confidence resulting in fairly benign capital market conditions.
Sampo Group is expected to report a good result for 2010 with a continuing good
profitability of its insurance operations supported by the share of Nordea's
profit.
If P&C is expected to reach its long-term combined ratio target of below 95 per
cent in 2010 despite the difficult winter conditions in the first quarter of
2010. Profit is expected to remain on a very good level. The macro economic
situation will continue to dampen the premium growth but has a limited impact on
profitability.
Mandatum Life's marked-to-market profit is highly dependent on capital markets
and is expected to remain good. Reported profit is foreseen to reach year 2009
level. The company seeks further growth in the unit-linked volumes.
The associated company, Nordea Bank AB, is expected to contribute significantly
to the Group profit in 2010.
SAMPO PLC
Board of Directors
For more information, please contact:
Peter Johansson, Group CFO, tel. +358 10 516 0010
Jarmo Salonen, Head of Investor Relations and Group Communications, tel. +358
10 516 0030
Maria Silander, Press Officer, tel. +358 10 516 0031
Sampo will arrange a telephone conference for investors and analysts at 4 pm
Finnish time (2 pm UK time). The call is held in English. Please call +44 207
162 0025 (Europe) or +1 334 323 6201 (North America). Please be ready to state
the conference ID '862905', the conference title 'Sampo plc 2010/Q1 release' and
the password 'SAMPO'.
The telephone conference can also be followed from a direct transmission on the
Internet at www.sampo.com/result. A recorded version will later be available at
the same address.
In addition, Group CEO and President Kari Stadigh's video interview and
Supplementary Financial Information are available at www.sampo.com/result.
Sampo will publish the second quarter 2010 interim report on 11 August 2010.
DISTRIBUTION:
NASDAQ OMX Helsinki
The principal media
Financial Supervisory Authority
www.sampo.com
GROUP FINANCIAL REVIEW
FINANCIAL HIGHLIGHTS 1-3/2010 1-3/2009
GROUP
Profit before taxes EURm 287 169
Return on equity (at fair value) % 30.1 -5.1
Return on assets (at fair value) % 12.6 0.0
Equity/assets ratio % 28.7 21.0
Group solvency ¹) EURm 2,815 2,598
Group solvency ratio % 167.6 424.0
Average number of staff 6,982 7,454
PROPERTY & CASUALTY INSURANCE
Premiums written before reinsurers' share EURm 1,507 1,422
Premiums earned EURm 949 892
Profit before taxes EURm 125 144
Return on equity (at current value) % 52.7 14.4
Risk ratio ²) % 74.8 70.7
Cost ratio ²) % 23.5 23.5
Loss ratio ²) % 82.9 78.7
Loss ratio excl. unwinding of discount ²) % 81.3 77.0
Expense ratio ²) % 16.9 17.2
Combined ratio % 99.8 95.9
Combined ratio excl. unwinding of discount % 98.2 94.2
Average number of staff 6,468 6,928
LIFE INSURANCE
Premiums written before reinsurers' share EURm 351 147
Profit before taxes EURm 36 27
Return on equity (at current value) % 65.4 -52.0
Expense ratio % 127.8 131.2
Average number of staff 461 471
HOLDING
Profit before taxes EURm 126 -21
Average number of staff 53 55
PER SHARE KEY FIGURES
Earnings per share EUR 0.44 0.23
Earnings per share, incl. other
comprehensive income EUR 1.06 -0.10
Capital and reserves per share EUR 14.64 8.15
Net asset value per share EUR 16.12 8.17
Adjusted share price, high EUR 19.85 14.75
Adjusted share price, low EUR 16.90 8.63
Market capitalisation EURm 11,024 6,242
¹) The Group solvency is calculated according to the consolidation method
defined inChapter 3 of the Act on the Supervision of Financial and Insurance
Conglomerates (2004/699). In the comparison year the solvency was calculated
based on adjusted solvency calculations for insurance groups according to the
Decree of the Ministry of Social Affairs and Health (1106/2000), determined on
the basis of the Group financial statements.
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.
In calculating the per share key figures, the number of shares used at the
balance sheet date and as the average number of shares was 561,282,390. The
90,000 treasury shares held by Sampo plc at the balance sheet date have been
deducted from both numbers of shares.
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 (former Insurance
Supervisory Authority).
CALCULATION OF KEY FIGURES
Return on equity (fair values), %
+ total comprehensive income
+ change in valuation differences on investments
- tax (incl. change in deferred tax relating to valuation differences on
investments) x 100 %
+ total equity
+ valuation differences on investments after deduction of 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 charges
+ calculated interest on technical provisions
+ change in valuation differences on investments x 100 %
-------------------------------------------------------------------------
+ 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)
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 x 100 %
-------------------------------------------------------------------------
insurance premiums earned
Cost ratio for P&C Insurance, %
+ operating expenses
+ claims settlement expenses x 100 %
-------------------------------------------------------------------------
insurance premiums earned
Loss ratio for P&C Insurance, %
claims incurred x 100 %
-------------------------------------------------------------------------
insurance premiums earned
Expense ratio for P&C Insurance, %
operating expenses x 100 %
-------------------------------------------------------------------------
insurance premiums earned
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
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
GROUP QUARTERLY INCOME STATEMENT
1-3/ 10-12/ 7-9/ 4-6/ 1-3/
EURm 2010 2009 2009 2009 2009
Insurance premiums written 1,764 1,077 896 1,036 1,470
Net income from investments 354 259 348 384 165
Other operating income 3 6 6 5 3
Claims incurred -918 -792 -767 -729 -818
Change in liabilities for insurance and
investment contracts -759 -61 -17 -165 -390
Staff costs -135 -134 -136 -125 -115
Other operating expenses -121 -130 -115 -122 -129
Finance costs -25 -25 -23 -21 -17
Share of associates' profit/loss 124 0 0 0 0
Profit for the period before taxes 287 199 192 264 169
Taxes -41 -51 -44 -46 -42
Profit for the period 245 148 148 217 127
Other comprehensive income for the period
Exchange differences on translating foreign
operations 83 -8 102 17 10
Available-for-sale financial assets 328 -189 1,549 1,875 -247
Cash flow hedges -2 -3 1 -8 8
Share of other comprehensive income of associates 27 - - - -
Income tax relating to components of other
comprehensive income -85 -50 -175 -143 42
Other comprehensive income for the period, net of
tax 351 -250 1,477 1,741 -186
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD, NET OF
TAX 596 -102 1,624 1,959 -59
Profit attributable to
Owners of the parent 245 148 148 217 127
Non-controlling interests 0 0 0 0 0
Total comprehensive income attributable to
Owners of the parent 596 -101 1,625 1,958 -59
Non-controlling interests 0 0 0 0 0
CONSOLIDATED COMPREHENSIVE INCOME STATEMENT
EURm Note 1-3/2010 1-3/2009
Insurance premiums written 1 1,764 1,470
Net income from investments 2 354 165
Other operating income 3 3
Claims incurred 3 -918 -818
Change in liabilities for insurance and investment
contracts -759 -390
Staff costs 4 -135 -115
Other operating expenses -121 -129
Finance costs -25 -17
Share of associates' profit/loss 124 0
Profit before taxes 287 169
Taxes -41 -42
Profit for the period 245 127
Other comprehensive income for the period
Exchange differences 83 10
Available-for-sale financial assets 328 -247
Cash flow hedges -2 8
Share of other comprehensive income of associates 27 -
Income tax relating to components of other comprehensive
income -85 42
Other comprehensive income for the period, net of tax 351 -186
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 596 -59
Profit attributable to
Owners of the parent 245 127
Non-controlling interests 0 0
Total comprehensive income attributable to
Owners of the parent 596 -59
Non-controlling interests 0 0
Basic earnings per share (eur) 0.44 0.23
CONSOLIDATED BALANCE SHEET
EURm Note 03/2010 12/2009
Assets
Property, plant and equipment 33 34
Investment property 123 124
Intangible assets 5 717 688
Investments in associates 5,193 5,172
Financial assets 6, 7 16,397 15,479
Investments related to unit-linked insurance contracts 8 2,656 2,366
Tax assets 60 81
Reinsurers' share of insurance liabilities 479 481
Other assets 2,193 1,439
Cash and cash equivalents 832 771
Total assets 28,683 26,635
Liabilities
Liabilities for insurance and investment contracts 9 13,803 13,014
Liabilities for unit-linked insurance and investment
contracts 10 2,645 2,359
Financial liabilities 11 2,185 2,098
Tax liabilities 592 500
Provisions 33 35
Employee benefits 101 104
Other liabilities 1,104 912
Total liabilities 20,463 19,022
Equity
Share capital 98 98
Reserves 1,530 1,530
Retained earnings 6,144 5,889
Other components of equity 446 96
Equity attributable to owners of the parent 8,219 7,613
Non-controlling interests 0 0
Total equity 8,219 7,613
Total equity and liabilities 28,683 26,635
STATEMENTS OF CHANGES IN EQUITY, IFRS
Share Invested Translation
Share premium Legal unrestricted Retained of foreign Available-for-sale Cash flow
EURm capital account reserve equity earnings operations financial assets*) hedges**) Total
Equity at
1 Jan. 2009 98 1,161 370 - 5,614 -249 -2,375 11 4,631
Changes in
equity
Share-based
payments 0 0
Total comprehensive
income for the
period 127 10 -191 -6 -59
Equity at
31 March
2009 98 1,161 370 - 5,742 -238 -2,566 6 4,573
Equity at
1 Jan. 2010 98 0 4 1,527 5,889 -200 287 9 7,613
Changes in
equity
Share-based
payments -1 -1
Other
changes 11 11
Total comprehensive
income for the
period 245 110 242 -2 596
Equity at
31 March
2010 98 0 4 1,527 6,144 -89 529 7 8,219
*) The amount recognised in equity from available-for-sale financial assets for
the period totalled EURm 283 (-233). The amount transferred to p/l amounted to
EURm -41 (42).
**) The amount recognised in equity from cash flow hedges for the period
totalled EURm -2 (-7). The amount transferred to p/l amounted to EURm - (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. As
Nordea's other comprehensive income comprise mainly the currency hedging of net
investments and exchange differences, the Group's share of Nordea's other
comprehensive income EURm 27 is also included in the Group's exchange
differences in the statement of changes in equity.
The amount included in the translation, available-for-sale and cash flow hedge
reserves represent other comprehensive income for each component, net of tax.
STATEMENT OF CASH FLOWS
1-3/2010 1-3/2009
Cash and cash equivalent at the beginning of the period 761 499
Cash flow from/used in operating activities -27 928
Cash flow from/used in investing activities 138 -408
Cash flow from/used in financing activities -54 29
Increase of liabilities 409 29
Decrease of liabilities -463 -
Cash and cash equivalent at the end of the period 819 1,048
The cash flow statement reports cash flows during the period classified by
operating, investing and financing activities. Cash flows are reported by using
the indirect method. 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).
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 2009.
Sampo adopted various new or revised standards and interpretations at the
beginning of the year 2010. These standards and interpretations are explained in
Sampos accounting policies for the financial year 2009.
The financial statements are available on Sampo's website at
www.sampo.com/result.
The most significant of the adopted standards is the revised IFRS 3 Business
combinations. The standard includes various significant changes regarding the
accounting treatment of business combinations by allowing the company to measure
the non-controlling interest at fair value instead of the proportionate interest
in the acquiree's net assets. The choice affects the amounts of recognised
goodwill and non-controlling interest.
CONSOLIDATED INCOME STATEMENT BY SEGMENT FOR THREE MONTHS
ENDED 31 MARCH 2010
EURm P&C insurance Life insurance Holding Elimina-tion Group
Insurance premius
written 1,416 348 - - 1,764
Net income from
investments 117 214 25 -2 354
Other operating income 5 0 4 -6 3
Claims incurred -710 -208 - - -918
Change in liabilities
for insurance and
investment contracts -467 -292 - - -759
Staff costs -122 -9 -4 - -135
Other operating expenses -108 -14 -3 3 -121
Finance costs -7 -2 -20 4 -25
Share of associates'
profit/loss 0 0 124 - 124
Profit before taxes 125 36 126 0 287
Taxes -33 -8 -1 0 -41
Profit for the period 92 27 126 0 245
Other comprehensive
income for the period
Exchange differences 83 0 - - 83
Available-for-sale
financial assets 181 145 2 0 328
Cash flow hedges - -2 - - -2
Share of other
comprehensive income of
associates - - 27 - 27
Income tax relating to
components of other
comprehensive income -47 -37 0 0 -85
Other comprehensive
income for the period,
net of tax 216 106 29 0 351
TOTAL COMPREHENSIVE
INCOME FOR THE PERIOD 308 133 154 0 596
Profit attributable to
Owners of the parent 245
Non-controlling
interests 0
Total comprehensive
income attributable to
Owners of the parent 596
Non-controlling
interests 0
CONSOLIDATED INCOME STATEMENT BY SEGMENT FOR THREE MONTHS
ENDED 31 MARCH 2009
EURm P&C insurance Life insurance Holding Elimina-tion Group
Insurance premius
written 1,327 144 - - 1,470
Net income from
investments 102 50 -6 19 165
Other operating income 5 0 2 -5 3
Claims incurred -630 -187 - - -818
Change in liabilities
for insurance and
investment contracts -435 45 - - -390
Staff costs -106 -7 -2 -115
Other operating expenses -110 -15 -6 3 -129
Finance costs -8 -3 -9 2 -17
Share of associates'
profit/loss 0 0 - - 0
Profit before taxes 144 27 -21 19 169
Taxes -36 -6 6 -5 -42
Profit for the period 108 21 -16 14 127
Other comprehensive
income for the period
Exchange differences 10 0 - - 10
Available-for-sale
financial assets -67 -79 -82 -19 -247
Cash flow hedges - 8 - - 8
Income tax relating to
components of other
comprehensive income 17 18 2 5 42
Other comprehensive
income for the period,
net of tax -39 -53 -80 -14 -186
TOTAL COMPREHENSIVE
INCOME FOR THE PERIOD 69 -32 -96 0 -59
Profit attributable to
Owners of the parent 127
Non-controlling
interests 0
Total comprehensive
income attributable to
Owners of the parent -59
Non-controlling
interests 0
CONSOLIDATED BALANCE SHEET BY SEGMENT AT 31 MARCH 2010
Life
EURm P&C insurance insurance Holding Elimina-tion Group
Assets
Property, plant and
equipment 22 5 5 - 33
Investment property 28 86 10 - 123
Intangible assets 550 167 0 - 717
Investments in associates 9 0 5,184 - 5,193
Financial assets 10,715 5,449 2,772 -2,538 16,397
Investments related to
unit-linked insurance
contracts - 2,656 - - 2,656
Tax assets 50 0 10 1 60
Reinsurers' share of
insurance liabilities 475 4 - - 479
Other assets 1,710 177 332 -26 2,193
Cash and cash equivalents 550 99 183 - 832
Total assets 14,108 8,643 8,496 -2,564 28,683
Liabilities
Liabilities for insurance
and investment contracts 9,332 4,472 - - 13,803
Liabilities for
unit-linked insurance and
investment contracts - 2,645 - - 2,645
Financial liabilities 571 120 1,660 -166 2,185
Tax liabilities 456 136 - 0 592
Provisions 33 - - - 33
Employee benefits 101 - - - 101
Other liabilities 748 244 138 -26 1,104
Total liabilities 1
Unternehmensinformation / Kurzprofil:
Datum: 05.05.2010 - 08:32 Uhr
Sprache: Deutsch
News-ID 20295
Anzahl Zeichen: 0
contact information:
Town:
Helsinki
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 221 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Sampo Group´s results for January - March 2010"
steht unter der journalistisch-redaktionellen Verantwortung von
Sampo Oyj (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
