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.
