Sampo Group

Annual Report 2011
Summary of Significant Accounting Policies
Notes to the Group's Financial Statements
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Segment information
               
The Group’s business segments comprise P&C insurance, Life insurance and Holding company.
               
Geographical information has been disclosed about income from external customers and non-current assets. The reported areas are Finland, Sweden, Norway, Denmark, the Baltic countries and other countries.
               
Segment information has been produced in accordance with the accounting policies adopted for preparing and presenting the consolidated financial statements.The segment revenue, expense, assets and liabilities, either directly attributable or reasonably allocable, have been allocated to the segments. Inter-segment pricing is based on market prices. The transactions, assets and liabilities between the segments are eliminated in the consolidated financial statements on a line-by-line basis.
               
Depreciation and amortisation by segment are disclosed in notes 11 - 13 and investments in associates in Note 14.
               
CONSOLIDATED INCOME STATEMENT BY BUSINESS SEGMENT FOR YEAR ENDED 31 DECEMBER 2011
               
EURm     P&C
insurance
Life
insurance
Holding Elimination Group
               
Insurance premius written     4,201 849 - - 5,050
Net income from investments     298 -41 18 -16 260
Other operating income     31 2 15 -15 32
               
Claims incurred     -2,801 -922 - - -3,723
Change in liabilities for insurance and investment contracts     -107 348 - - 241
Staff costs     -494 -38 -11 - -543
Other operating expenses     -497 -53 -13 15 -548
               
Finance costs     -2 -8 -86 14 -82
Share of associates' profit/loss     7 0 534 - 541
               
Profit before taxes     636 137 457 -3 1,228
               
Taxes     -159 -30 -1 0 -189
               
Profit for the year     478 107 456 -3 1,038
               
Other comprehensive income for the year              
Exchange differences     6 0 - - 6
Available-for-sale financial assets     -239 -304 3 20 -520
Cash flow hedges     - -2 - - -2
Share of associate's other comprehensive income     - - 23 - 23
Income tax relating to components of other comprehensive income     63 84 -1 -5 141
Other comprehensive income for the year, net of tax     -170 -222 25 15 -352
               
TOTAL COMPREHENSIVE INCOME FOR THE YEAR     308 -115 481 12 686
               
Profit attributable to              
Owners of the parent             1,038
Non-controlling interests             0
               
Total comprehensive income attributable to              
Owners of the parent             686
Non-controlling interests             0
               
               
CONSOLIDATED INCOME STATEMENT BY BUSINESS SEGMENT FOR YEAR ENDED 31 DECEMBER 2010
               
EURm     P&C
insurance
Life
insurance
Holding Elimination Group
               
Insurance premius written     3,985 1,111 - - 5,096
Net income from investments     487 645 25 -9 1,148
Other operating income     25 0 16 -15 26
               
Claims incurred     -2,689 -844 - - -3,533
Change in liabilities for insurance and investment contracts     -91 -678 - - -769
Staff costs     -479 -35 -13 - -527
Other operating expenses     -501 -49 -11 15 -547
               
Finance costs     -29 -8 -66 6 -96
Share of associates' profit/loss     0 0 523 - 523
               
Profit before taxes     707 142 474 -3 1,320
               
Taxes     -189 -37 9 0 -217
               
Profit for the year     518 105 483 -3 1,104
               
Other comprehensive income for the year              
Exchange differences     214 0 - - 214
Available-for-sale financial assets     286 315 4 1 605
Cash flow hedges     - -9 - - -9
Share of associate's other comprehensive income     - - 48 - 48
Income tax relating to components of other comprehensive income     -75 -80 -1 0 -156
Other comprehensive income for the year, net of tax     425 226 51 1 703
               
TOTAL COMPREHENSIVE INCOME FOR THE YEAR     943 332 534 -2 1,807
               
Profit attributable to              
Owners of the parent             1,104
Non-controlling interests             0
               
Total comprehensive income attributable to              
Owners of the parent             1,807
Non-controlling interests             0
               
               
CONSOLIDATED BALANCE SHEET BY BUSINESS SEGMENT AT 31 DECEMBER 2011
               
EURm     P&C
insurance
Life
insurance
Holding Elimination Group
               
Assets              
Property, plant and equipment     16 6 4 - 26
Investment property     26 92 4 -4 118
Intangible assets     580 165 0 - 745
Investments in associates     340 0 6,253 - 6,593
Financial assets     10,754 5,168 3,465 -2,642 16,745
Investments related to unit-linked insurance contracts     - 3,053 - - 3,053
Tax assets     52 - 17 -5 64
Reinsurers' share of insurance liabilities     528 3 - - 532
Other assets     1,479 133 59 -12 1,659
Cash and cash equivalents     390 93 89 - 572
Total assets     14,165 8,713 9,891 -2,662 30,107
               
Liabilities              
Liabilities for insurance and investment contracts     9,547 4,249 - - 13,796
Liabilities for unit-linked insurance and investment contracts     - 3,054 - - 3,054
Financial liabilities     528 164 2,346 -269 2,768
Tax liabilities     388 85 - - 474
Provisions     37 - - - 37
Employee benefits     98 - - - 98
Other liabilities     695 151 126 -12 960
Total liabilities     11,294 7,703 2,472 -281 21,187
               
Equity              
Share capital             98
Reserves             1,531
Retained earnings             6,844
Other components of equity             447
Equity attributable to parent company's equityholders             8,920
Non-controlling interests             0
Total equity             8,920
               
Total equity and liabilities             30,107
               
               
CONSOLIDATED BALANCE SHEET BY BUSINESS SEGMENT AT 31 DECEMBER 2010
               
EURm     P&C
insurance
Life
insurance
Holding Elimination Group
               
Assets              
Property, plant and equipment     19 5 5 - 29
Investment property     26 96 4 -4 122
Intangible assets     577 165 0 - 742
Investments in associates     11 0 5,688 - 5,699
Financial assets     11,226 5,745 3,101 -2,563 17,508
Investments related to unit-linked insurance contracts     - 3,127 - - 3,127
Tax assets     50 - 18 0 68
Reinsurers' share of insurance liabilities     510 4 - - 514
Other assets     1,363 106 66 -20 1,515
Cash and cash equivalents     319 152 56 - 527
Total assets     14,101 9,400 8,938 -2,587 29,851
               
Liabilities              
Liabilities for insurance and investment contracts     9,340 4,410 - - 13,749
Liabilities for unit-linked insurance and investment contracts     - 3,124 - - 3,124
Financial liabilities     512 126 1,741 -191 2,187
Tax liabilities     464 176 - - 640
Provisions     36 - - - 36
Employee benefits     105 - - - 105
Other liabilities     690 339 117 -22 1,124
Total liabilities     11,146 8,174 1,857 -213 20,965
               
Equity              
Share capital             98
Reserves             1,530
Retained earnings             6,459
Other components of equity             799
Equity attributable to parent company's equityholders             8,886
Non-controlling interests             0
Total equity             8,886
               
Total equity and liabilities             29,851
               
               
Geographical information
               
EURm Finland Sweden Norway Denmark Baltic Other Total
               
At 31 Dec 2011              
Revenue from external customers              
P&C insurance 862 1,245 1,497 371 111 8 4,094
Life insurance 808 - - - 41 - 849
Holding 33 - - - - - 33
Total 1,703 1,245 1,497 371 152 8 4,976
               
Non-current assets              
P&C insurance 105 828 13 5 10 2 962
Life insurance 261 - - - 1 - 262
Holding 9 6,253 - - - - 6,262
Total 375 7,081 13 5 11 2 7,486
               
At 31 Dec 2010              
Revenue from external customers              
P&C insurance 827 1,167 1,451 323 125 0 3,894
Life insurance 1,051 - - - 60 - 1,111
Holding 42 - - - - - 42
Total 1,919 1,167 1,451 323 185 0 5,046
               
Non-current assets              
P&C insurance 108 494 13 3 14 0 632
Life insurance 266 - - - 1 - 267
Holding 9 5,688 - - - - 5,697
Total 383 6,183 13 3 15 0 6,596
               
               
The revenue includes insurance premiums according to the underwriting country, consisting of premiums earned for P&C insurance and premiums written for Life insurance, and net investment income and other operating income in the Holding segment.
               
Non-current assets comprise of intangible assets, investments in associates, property, plant and equipment, and investment property.
               
Summary of Significant Accounting Policies
Notes to the Group's Financial Statements