Sampo Group

Annual Report 2011
Internal Capitalization Assessment
Capitalization by Regulatory Criteria

Sensitivity Analysis of the Capital Position

The total sensitivity of equity is shown in table 'Sensitivity analysis of capitalization to market risks, If P&C, Mandatum Life and Sampo plc, 31 December 2011' separately for the insurance subsidiaries together with the corresponding effect on the discounted value of liabilities and adjusted solvency capital. For example, a rise in interest rates would reduce the values of financial instruments causing a fall in the Sampo Group's equity. On the other hand, the effect on adjusted solvency capital would be positive due to the fact that value of technical provisions would fall as a result of applying a higher discount rate.

Sensitivity analysis of capitalization to market risks,
If P&C, Mandatum Life and Sampo plc, 31 December 2011

 

Interest rate Equity

Other financial investments

EURm

1% parallel shift down

1% parallel shift up

20% fall in prices

20% fall in prices

If P&C

114 -111 -236 -20

Mandatum Life

114 -107 -291 -144

Sampo plc

7 -6 -4 -4

Total effect on equity

235 -224 -530 -169
         

Change in liability side adjustment

-1,087 892 11 6

Effect on adjusted solvency capital

-853 667 -519 -163

The effects represent the instantaneous effects of a one-off change in the underlying market variable on the fair values as of 31 December, 2011. The sensitivity analysis includes the effects of derivative positions. All sensitivities are calculated before taxes. The debt issued by Sampo Group companies is not included.

Internal Capitalization Assessment
Capitalization by Regulatory Criteria