Non-recurring items will weaken Sampo's reported profits
(Thomson Reuters ONE) -
SAMPO PLC STOCK EXCHANGE RELEASE 19 October 2011 at 11.05 am
NON-RECURRING ITEMS WILL WEAKEN SAMPO'S REPORTED PROFITS
In Sampo Group's interim report published on 10 August 2011 the profit for 2011
was expected to be good excluding extraordinary items caused by the development
in the capital market. Two items will weaken the third quarter profits
-associated company Nordea's non-recurring cost provision and impairment losses
in the investment assets of the insurance operations.
The technical profitability of Sampo Group's insurance operations has developed
according to expectations during the third quarter of 2011.
Sampo Group's profit before taxes for the third quarter of 2011 amounts to
approximately EUR 150 million. Net asset value per share is expected to have
fallen from EUR 16.24 at the end of June 2011 to approximately EUR 13.60.
Nordea has made a provision of EUR 171 million for restructuring costs in its
interim report published today. In addition the net result from items at fair
value weakened. Sampo's share of Nordea's net profit for third quarter is EUR
80 million. In January-June 2011 Sampo's share of Nordea's profit was EUR 294
million.
As a result of the growing uncertainties in the world economy the share prices
fell strongly during the third quarter of 2011. According to the accounting
principles followed in Sampo Group, if the fair value of a listed equity or
participation decreases below the average acquisition cost by 20 per cent, an
impairment loss is recognized in the profit and loss account. On 30 June 2011
Sampo Group had equity investments of approximately EUR 2.7 billion. Impairment
losses of EUR 152 million in the P&C insurance segment and EUR 37 million in the
life insurance segment will be recognized in Sampo Group's result for July-
September 2011
Sampo Group publishes the Interim Report for January-September 2011 on Wednesday
2 November 2011.
SAMPO PLC
Peter Johansson
Group CFO
Distribution:
NASDAQ OMX Helsinki
The principal media
Financial Supervisory Authority
www.sampo.com
This announcement is distributed by Thomson Reuters on behalf of
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originality of the information contained therein.
Source: Sampo Oyj via Thomson Reuters ONE
[HUG#1555965]
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Datum: 19.10.2011 - 10:05 Uhr
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News-ID 77693
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