Changes in Group Structure
On 16 May 2011 Sampo Group's ownership in the Danish insurance company Topdanmark A/S exceeded 20 per cent of the total shares and voting rights of the company. On 31 December 2011 the total number of Topdanmark shares owned by Sampo Group was 3,147,692. Shares are held by Sampo’s P&C insurance operation If P&C which has reported Topdanmark as an associate company as of 16 May 2011.
In connection with the change in accounting treatment the carrying value of the Topdanmark shares held by If and valued at fair value, was reinstated at acquisition cost of EUR 324 million. The ensuing reduction of the fair value reserve decreased Sampo Group’s equity by EUR 51 million. The equity accounting of Topdanmark has, however, no effect on Sampo Group’s net asset value because in the NAV calculation Topdanmark is valued at fair value.
The purchase price in excess of the carrying amount of the net assets of Topdanmark was EUR 204 million. Based on the purchase price allocation EUR 85 million was allocated to customer related intangibles. The annual amortization will be EUR 8 million during eight years.
As of 16 May 2011 Sampo’s share of Topdanmark’s net profit has been shown on the face of Sampo Group’s profit and loss account on the line Share of associate´s profit/loss. In segment reporting Topdanmark holding is included in the P&C insurance segment. Due to the late publication of financial reports by Topdanmark, consensus estimate for the company’s net result is used for this purpose and any deviations in relation to subsequently published amounts will be included in the next quarterly report.