Sampo Group

Annual Report 2011
Board of Directors' Report
Business Areas in 2011

Sampo Group in 2011

Sampo Group’s profit before taxes for 2011 amounted to EUR 1,228 million (1,320). Total comprehensive income for the period, taking changes in the market value of assets into account, decreased to EUR 686 million (1,807).

Earnings per share were EUR 1.85 (1.97). Mark-to-market earnings per share amounted to EUR 1.22 (3.22) and return on equity for the Group decreased to 7.7 per cent for 2011 (21.8).

The Board proposes to the Annual General Meeting to be held on 12 April 2012 a dividend of EUR 1.20 per share (1.15) and an authorization to repurchase a maximum of 50 million Sampo A shares.

Net asset value per share on 31 December 2011 was EUR 14.05 (17.79). Fair value reserve on the Group level amounted to EUR 355 million (736).

Profit before taxes in the P&C insurance segment amounted to EUR 636 million (707). Combined ratio improved to 92.0 per cent for the full year 2011 (92.8). Return on equity was 12.4 per cent (39.8) and fair value reserve decreased to EUR 139 million (315).

Sampo’s share of Nordea’s net profit in 2011 rose to EUR 534 million (523). In segment reporting the share of Nordea’s profit is included in the segment ‘Holding’.

Life insurance segment’s profit before taxes remained stable at EUR 137 million (142). Fair value reserve decreased to EUR 214 million as at 31 December 2011 (436). Return on equity was -11.7 per cent (36.2).

Sampo Group’s total investment assets at the end of 2011 amounted to EUR 17.6 billion (18.3), of which 80 per cent was invested in fixed income instruments (78), 15 per cent in equities (18) and 5 per cent in other assets (4). Mark-to-market investment return remained positive despite the sharp fall in the equity markets. Reported investment income decreased to EUR 260 million (1,148).

The Group’s equity as at 31 December 2011 amounted to EUR 8,920 million (8,886). Equity was strengthened mainly by the comprehensive result for the year of EUR 686 million and reduced by the EUR 645 million of dividends paid.

Sampo Group’s own funds exceeded the minimum solvency requirements at the end of 2011 by EUR 1,892 million (3,038) and solvency ratio stood at 138.6 per cent (167.1).

Results, Sampo Group, 2011
EURm 2011 2010 Change, %
Profit before taxes 1,228 1,320 -7
P&C insurance 636 707 -10
Associate (Nordea) 534 523 2
Life insurance 137 142 -3
Holding (excl. Nordea) -77 -48 60
Profit for the period 1,038 1,104 -6
      Change
Earnings per share, EUR 1.85 1.97 -0.12
EPS (incl. change in FVR), EUR 1.22 3.22 -2.00
NAV per share, EUR 14.05 17.79 -3.74
Average number of staff (FTE) 6,874 6,914 -40
Group solvency ratio, % 138.6 167.1 -28.5
RoE, % 7.7 21.8 -14.1

Board of Directors' Report
Business Areas in 2011