Sampo Group

Annual Report 2011
Life Insurance in 2011
Changes in Group Structure

Holding in 2011

Sampo plc owns and controls its subsidiaries engaged in P&C and life insurance. In addition Sampo plc held on 31 December 2011 approximately 21.3 per cent of the share capital of Nordea, the largest bank in the Nordic countries. Nordea is an associated company to Sampo plc.

Results, Holding, 2011
EURm 2011 2010 Change, %

Net investment income

18

25

-27
Other operating income 15 16 -9
Staff costs

-11

-13

-11
Other operating expenses

-13

-11

14
Finance costs

-86

-66

31

Share of associate's profit

534

523

2

Profit (loss) before taxes

457 474 -4
      Change

Average number of staff (FTE)

54 52 2

The segment’s profit before taxes amounted to EUR 457 million (474), of which EUR 534 million (523) relates to Sampo’s share of Nordea’s 2011 profit. Segment’s profit without Nordea was EUR -77 million (-48).

To balance the risks on the Group level Sampo plc‘s debt is mainly tied to short term interest rates and issued in euro or Swedish krona. The debt positions are managed with interest rate swaps and cross currency interest rate swaps. These derivatives are valued at fair value in the profit and loss account although economically they match the underlying bonds. As a result Sampo plc maintains the flexibility to adjust derivative position if needed but this comes at the cost of increased volatility in the Holding segment’s finance costs.

Sampo plc’s holding in Nordea Bank was booked in the consolidated balance sheet at EUR 6.3 billion. The market value of the holding was EUR 5.1 billion at 31 December 2011. In addition the assets on Sampo plc’s balance sheet included holdings in subsidiaries for EUR 2.4 billion (2.4).

Life Insurance in 2011
Changes in Group Structure