Sampo Group's results for January - June 2007

SAMPO PLC STOCK EXCHANGE RELEASE 8 August 2007 Sampo GroupÂ´s results for January - June 2007 STRONG PROFITABILITY - STABLE OUTLOOK Sampo Group's profit before taxes in January-June 2007 amounted to EUR 3,418 million (558). The profit contains the sales gain of EUR 2,830 million from Sampo Bank transaction closed in the first quarter. Earnings per share rose to EUR 5.66 (0.71) and, including the change in the fair value reserve, to EUR 5.68 per share (0.56). Earnings per share from the continuing operations rose to EUR 0.72 (0.49). Net asset value per share was EUR 13.38 (9.21). - In P&C insurance the favourable claims development continued and the combined ratio was 92.0 per cent (91.7). Profit before taxes amounted to EUR 311 million (186) supported by strong investment income of EUR 180 million (53). The annualised RoE amounted to 21.7 per cent (11.3). - In life insurance the annualised RoE was 31.8 per cent (17.3) and profit before taxes amounted to EUR 187 million (216). - Profit before taxes for the segment 'Holding' amounted to EUR 61 million (-34). - Sampo Group's total investment assets at the end of the reporting period amounted to EUR 21 billion, of which 80 per cent was invested in fixed income instruments. Investment income was EUR 682 million (375). -------------------------------------------------------------------------------- | KEY FIGURES | 1-6 | 1-6 | Change | Q2 | Q2 | Change | -------------------------------------------------------------------------------- | EURm | 2007 | 2006 | % | 2007 | 2006 | % | -------------------------------------------------------------------------------- | Profit before taxes *) | 3,418 | 558 | 513 | 289 | 219 | 32 | -------------------------------------------------------------------------------- | P&C insurance | 311 | 186 | 67 | 142 | 53 | 168 | -------------------------------------------------------------------------------- | Life insurance | 187 | 216 | -13 | 87 | 88 | -1 | -------------------------------------------------------------------------------- | Holding | 61 | -34 | - | 60 | -15 | - | -------------------------------------------------------------------------------- | Profit for the period | 3,269 | 414 | 690 | 214 | 156 | 37 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, EUR | 5.66 | 0.71 | 697 | 0.36 | 0.27 | 33 | -------------------------------------------------------------------------------- | EPS(incl. change in FVR) | 5.68 | 0.56 | 914 | 0.30 | 0.04 | 650 | | EUR | | | | | | | -------------------------------------------------------------------------------- | EPS, continuing | 0.72 | 0.49 | 47 | 0.37 | 0.16 | 131 | | operations EUR | | | | | | | -------------------------------------------------------------------------------- | EPS, continuing | 0.74 | 0.33 | 124 | 0.31 | -0.08 | 288 | | operations (incl. change | | | | | | | | in FVR) EUR | | | | | | | -------------------------------------------------------------------------------- | NAV per share, EUR ** ) | 13.38 | 7.64 | 75 | - | - | - | -------------------------------------------------------------------------------- | Average number of staff | 6,803 | 11,592 | -41 | - | - | - | | (FTE) | | | | | | | -------------------------------------------------------------------------------- | Group solvency ratio, % | 856.9 | 203.6 | 321 | - | - | - | -------------------------------------------------------------------------------- | RoE, % ***) | 50.7 | 15.2 | 234 | - | - | - | -------------------------------------------------------------------------------- *) The sales gain of EUR 2,830 million and Sampo Bank Group's January 2007 profit of EUR 29 million (pre-tax) are reported under 'Discontinued operations'. **) Less full deferred tax. ***) 1-6/2007 figure is not annualised. The figures in this report are unaudited. Income statement items are compared on a year-on-year basis whereas comparison figures for balance sheet items are from 31 December, 2006 unless otherwise stated. Second quarter 2007 in brief Sampo Group's profit before taxes for the second quarter of 2007 was EUR 289 million (219) and earnings per share amounted to EUR 0.36 (0.27). Taking the change in the fair value reserve into account, the earnings per share were EUR 0.30 (0.04). In the second quarter of 2007 Sampo plc paid dividends of EUR 1.20 per share and at the end of the quarter net asset value per share was EUR 13.38. Profit before taxes in P&C insurance for the second quarter was EUR 142 million (53). Net investment income grew to EUR 61 million (-39) as the equity market developed favorably. The insurance technical result amounted to 139 million (146) and the combined ratio was 90.3 per cent (89.2). Life operations made a profit before taxes of EUR 87 million (88). Premiums written were EUR 142 million compared with EUR 129 million a year earlier. The segment 'Holding' increased its profit before taxes to EUR 60 million in the second quarter (-15). Profits contain dividends of EUR 35 million from Sampo plc's Nordea holding. Business areas P&C insurance If is the leading property and casualty insurance company in the Nordic region with operations that also encompass the Baltic countries and Russia. If P&C Insurance Holding Ltd, headquartered in Sweden, is the parent company for property and casualty insurance within the Sampo Group. -------------------------------------------------------------------------------- | Results | 1-6 | 1-6 | Change | Q2 | Q2 | Change | -------------------------------------------------------------------------------- | EURm | 2007 | 2006 | % | 2007 | 2006 | % | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Premium income | 2,288 | 2,288 | 0 | 904 | 912 | -1 | -------------------------------------------------------------------------------- | Net income from | 180 | 53 | 240 | 61 | -39 | - | | investments | | | | | | | -------------------------------------------------------------------------------- | Other operating | 13 | 11 | 18 | 6 | 6 | 0 | | income | | | | | | | -------------------------------------------------------------------------------- | Claims incurred | -1,272 | -1,270 | 0 | -622 | -622 | 0 | -------------------------------------------------------------------------------- | Change in liabilities | -425 | -420 | 1 | 31 | 36 | -14 | | for | | | | | | | | insurance contracts | | | | | | | -------------------------------------------------------------------------------- | Staff costs | -222 | -203 | 9 | -107 | -100 | 7 | -------------------------------------------------------------------------------- | Other expenses | -238 | -256 | -7 | -124 | -132 | -6 | -------------------------------------------------------------------------------- | Finance costs | -14 | -16 | -13 | -7 | -7 | 0 | -------------------------------------------------------------------------------- | Profit before taxes | 311 | 186 | 67 | 142 | 53 | 168 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Key figures | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Combined ratio, % | 92.0 | 91.7 | 0.3 | 90.3 | 89.2 | 1.2 | -------------------------------------------------------------------------------- | Risk ratio, % | 68.2 | 68.0 | 0.3 | 66.5 | 65.5 | 1.5 | -------------------------------------------------------------------------------- | Cost ratio, % | 23.8 | 23.7 | 0.4 | 23.8 | 23.7 | 0.4 | -------------------------------------------------------------------------------- | Expense ratio, % | 17.2 | 17.3 | -0.6 | 17.3 | 17.1 | 1.2 | -------------------------------------------------------------------------------- | Return on equity, % | 21.7 | 11.3 | 91.2 | - | - | - | -------------------------------------------------------------------------------- | Average number of | 6,375 | 6,457 | -1 | - | - | - | | staff (FTE) | | | | | | | -------------------------------------------------------------------------------- Profit before taxes in P&C insurance increased by 67 per cent to EUR 311 million (186). The technical result remained good and was EUR 244 million (239). The insurance margin - technical result in relation to net premiums earned - amounted to 13.0 per cent (12.9). The combined ratio remained on the same level as a year before and was 92.0 per cent (91.7). Business area Private accounted for 56 per cent, Commercial for 28 per cent, Industrial for 11 per cent and Baltics and Russia for 3 per cent of the technical result. EUR 39 million was released from technical reserves relating to prior year claims (39). The annualised RoE exceeded the target of 17.5 per cent and was 21.7 per cent (11.3). In business area Private the combined ratio deteriorated slightly and was 91.1 per cent (90.0). In business area Commercial the combined ratio decreased to 93.1 per cent (93.3). Business area Industrial incurred more large claims than a year earlier and the combined ratio rose to 95.2 per cent (94.6). Technical result in business area Baltics and Russia improved significantly from last year's first half, and the combined ratio decreased to 90.8 per cent (98.9). The comparison figure was exceptionally high due to a couple of large claims. The Russian operation was included in business area Baltics in the beginning of 2007 and had a small impact on business area's figures in the first half. In Finland and Sweden the combined ratios improved to 87.6 per cent (96.2) and to 88.4 per cent (91.5), respectively. Both risk ratio and cost ratio improved in Finland. In Sweden the improvement is based on lower risk ratio than a year earlier. In Norway the combined ratio rose to 91.2 per cent (88.8). In Denmark profitability suffered from adverse large claims development, and the combined ratio increased to 127.2 per cent (92.8). Total costs amounted to EUR 460 million (459) and the cost ratio remained stable at 23.8 per cent (23.7). Gross premiums written were almost unchanged and amounted to EUR 2,483 million (2,475). Strong growth in Baltics and Russia continued as premiums grew by over 22 per cent. No significant changes took place in the competitive environment. The claims development overall remained fairly favourable, although the number of large claims increased. The total investment assets of If on 30 June 2007 amounted to EUR 10.3 billion (10.1), of which 88 per cent was invested in fixed income instruments (88), 12 per cent in equity (11) and 1 per cent in other assets (1). Net investment income for the first half of 2007 rose to EUR 180 million (53), mainly boosted by strong equity markets. The return on investments was 2.0 per cent (0.7). At end of June the duration for interest-bearing assets equalled 2.8 years (3.2). If's capital position continues to be firm. It's solvency capital amounted to EUR 2,843 million on 30 June 2007 (2,841), although it paid a dividend of SEK 2,140 million (EUR 227 million) to Sampo plc in June 2007. The solvency ratio - solvency capital in relation to net premiums written - was 76 per cent (74). If's reserve ratio increased further and were 168 per cent (159) of net premiums written and 263 per cent of claims paid (254). Life insurance Sampo Life Group consists of Sampo Life, a wholly-owned subsidiary of Sampo plc operating in Finland, and of its subsidiary Sampo Life Insurance Baltic SE. The latter has the form of a European company headquartered in Estonia. It operates in the other Baltic countries through branches. Sampo Life also has a subsidiary in Sweden to complement the product offering of If P&C. -------------------------------------------------------------------------------- | Results | 1-6 | 1-6 | Change | Q2 | Q2 | Change | -------------------------------------------------------------------------------- | EURm | 2007 | 2006 | % | 2007 | 2006 | % | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Premiums | 310 | 303 | 2 | 142 | 129 | 10 | -------------------------------------------------------------------------------- | Net income from | 407 | 303 | 34 | 227 | 54 | 320 | | investments | | | | | | | -------------------------------------------------------------------------------- | Claims incurred | -353 | -267 | 32 | -148 | -124 | 19 | -------------------------------------------------------------------------------- | Change in liabilities | -137 | -89 | 54 | -115 | 46 | - | | for | | | | | | | | inv. and ins. | | | | | | | | contracts | | | | | | | -------------------------------------------------------------------------------- | Staff costs | -10 | -10 | 0 | -4 | -4 | 0 | -------------------------------------------------------------------------------- | Other operating | -25 | -20 | 25 | -13 | -11 | 18 | | expenses | | | | | | | -------------------------------------------------------------------------------- | Finance costs | -5 | -5 | 0 | -2 | -2 | 0 | -------------------------------------------------------------------------------- | Profit before taxes | 187 | 216 | -13 | 87 | 88 | -1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Key figures | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Expense ratio, % | 110.0 | 107.5 | 2 | - | - | - | -------------------------------------------------------------------------------- | Return on equity, % | 31.8 | 17.3 | 84 | - | - | - | -------------------------------------------------------------------------------- | Average number of | 370 | 359 | 3 | - | - | - | | staff (FTE) | | | | | | | -------------------------------------------------------------------------------- Profit before taxes in life insurance for the first half of 2007 amounted to EUR 187 million (216). Net investment income, excluding income on unit-linked contracts, was EUR 291 million (300). Net income from unit-linked investments was EUR 116 million (3). The change in the fair value reserve from the beginning of the year was EUR 5 million (after tax). Life insurance operations clearly exceeded its RoE target of 17.5 per cent with the annualised RoE reaching 31.8 per cent (17.3). Sampo Life Group's investment assets, excluding the assets of EUR 2.0 billion (1.8) covering unit-linked liabilities, amounted to EUR 5.8 billion (5.9) at market values on 30 June 2007. Fixed income represented 70 per cent (66), equity 28 per cent (31) and real estate 2 per cent (2) of the total assets. Equity investments include direct equity holdings, equity funds and private equity. The return on investments for the first half of 2007 was 5.2 per cent (3.2). The duration of fixed income assets at the end of June 2007 was 2.0 years (2.8). On 30 June 2007 Sampo Life Group's solvency capital amounted to EUR 1,174 million (1,032), despite the EUR 200 million dividend paid to the parent company in June 2007. Solvency ratio was 22.9 per cent (20.1). Total technical reserves were EUR 6.6 billion (6.4), of which unit-linked reserves accounted for 30 per cent (27). Premium income on own account for the first six months was EUR 310 million (303). Premiums in the focus area, unit-linked insurance, amounted to EUR 213 million (214) and the share of unit-linked premiums was 67 per cent of the total premiums (70). The modest development of unit-linked premiums was mainly due to exceptional amount of large single premium contracts in the comparison period. Favourable trend in unit-linked individual pension insurance continued with a premium growth of 19 per cent. Development in corporate pension policies was particularly good. The premium income from the Baltic subsidiary operations increased by 62 per cent to EUR 28 million (17). Sampo Life's Swedish subsidiary If Liv had premium income of EUR 3 million. If Liv focuses on risk policies in cooperation with If P&C. In Finland Sampo Life's overall market share measured by premium income was 19.2 per cent (18.9) and its market share in unit-linked premiums was 22.2 per cent (23.6). Holding Sampo plc manages investment assets of approximately EUR 5 billion and, in addition, owns and controls its subsidiaries engaged in P&C and life insurance. -------------------------------------------------------------------------------- | Results | 1-6 | 1-6 | Change | Q2 | Q2 | -------------------------------------------------------------------------------- | EURm | 2007 | 2006 | % | 2007 | 2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net investment income | 99 | 17 | 482 | 74 | 5 | -------------------------------------------------------------------------------- | Other operating income | 3 | 30 | -90 | 2 | 14 | -------------------------------------------------------------------------------- | Staff costs | -9 | -20 | -55 | -4 | -10 | -------------------------------------------------------------------------------- | Other operating expenses | -13 | -31 | -58 | -3 | -13 | -------------------------------------------------------------------------------- | Financing costs | -20 | -30 | -33 | -9 | -12 | -------------------------------------------------------------------------------- | Profit before taxes | 61 | -34 | - | 60 | -15 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Average number of staff | 58 | 436 | -87 | | | | (FTE) | | | | | | -------------------------------------------------------------------------------- The segment's profit before taxes amounted to EUR 61 million (-34). A dividend of EUR 35 million received from Sampo plc's Nordea holding is included in the investment income. The assets on Sampo plc's balance sheet on 30 June 2007 comprise investment assets of EUR 4.6 billion, of which fixed income instruments covered EUR 3.6 billion and equities EUR 1.0 billion. Sampo plc's largest equity holding is Nordea, the market value of which was EUR 1,003 million on 30 June 2007. Sampo plc held 86,437,400 Nordea shares and, in addition, Sampo Life held 10,800,000 Nordea shares. Sampo Group's average acquisition price of Nordea share was EUR 10.89 per share. Sampo plc's assets also include holdings in insurance subsidiaries for EUR 2.4 billion (3.2). Balance sheet liabilities include a subordinated note with face value of EUR 600 million. Developments in the second quarter of 2007 Changes in Group structure Sampo Group divested Sampo Bank Group to Danske Bank A/S on 1 February 2007. Thereby the second quarter of 2007 was the first whole quarter in the current Group structure. Sampo Group comprises If, a P&C insurance group, Sampo Life, a life insurance group, and Sampo plc, a holding company with investment assets of close to EUR 5 billion. The sales gain of EUR 2,830 million from the Sampo Bank transaction is reported under 'Discontinued operations'. Administration The Annual General Meeting of Sampo plc held on 12 April 2007 adopted the financial accounts and discharged those accountable from liability. Ernst & Young Oy was re-elected as Auditor. The Annual General Meeting re-elected the earlier Board of Directors. Georg Ehrnrooth continues his duties as Chairman of the Board and Matti Vuoria serves as Vice Chairman. Other members of the Board are Tom Berglund, Anne Brunila, Jussi Pesonen, Jukka Pekkarinen, Christoffer Taxell, and BjÃ¶rn Wahlroos. The Annual General Meeting approved the proposed amendments to the Articles of Association. The most significant changes were the deletion of provisions concerning the amount of share capital and the number of shares and the addition of a new provision that the company shall have one Auditor, which must be a firm of Authorised Public Accountants. Amendments were entered into the Trade Register on 21 May 2007. The Annual General Meeting decided to distribute a dividend of EUR 1.20 per share for year 2006. Shares and share capital Sampo Uudet (Sampo New) share category was combined to Sampo A share category after the close of the trading day on Monday 21 May 2007. Sampo Uudet share category was introduced at the beginning of January 2007 to technically facilitate the payment of dividends to Sampo A shares subscribed for with warrants of the Sampo 2000 option programme. The subscription period for the programme ended on 31 January 2007. The Annual General Meeting of 12 April 2007 authorised the Board of Directors to repurchase Sampo shares. The authorisation is valid until the close of the next Annual General Meeting. Sampo A shares can be repurchased in one or more lots to a total of up to 10 per cent of all the company's shares. Sampo shares may be repurchased in other proportion than the shareholders' proportional shareholdings. During the first half of 2007 Sampo plc did not acquire its own shares and did not possess any on 30 June 2007. On 30 June 2007 Sampo plc's share capital amounted to EUR 98 million (95), and the number of A shares was 577,330,890. The total number of shares of the company, including 1,200,000 B shares, was 578,530,890. On 5 April 2007 Sampo received a disclosure under chapter 2, section 9 of the Securities Markets Act, according to which Morgan Stanley & Co International Limited's holding in Sampo plc had decreased below 5 per cent of the total amount of Sampo's shares and voting rights. The holding amounted to 0.67 per cent of all shares and 0.66 per cent of voting rights. On 11 April 2007 Sampo received a disclosure under chapter 2, section 9 of the Securities Markets Act, regarding Exista hf.'s and its subsidiaries' holding in Sampo shares and voting rights. According to the disclosure Exista held 9.57 per cent of Sampo's shares and 9.50 per cent of the voting rights and had entered into agreements, which enable the company to acquire an additional 6 percent of shares. Further disclosures are presented under 'Developments after the end of the reporting period'. Staff Sampo Group's full-time equivalent staff on 30 June 2007 amounted to 6,906 employees compared to 11,763 employees on 31 December 2006. The number of staff in the comparison period includes the staff of Sampo Bank Group. Sampo Bank Group was divested from Sampo Group on 1 February 2007. In the end of June approximately 94 per cent of the staff worked in P&C insurance, nearly 6 per cent in life insurance and 1 per cent in the holding company. Geographical division of the staff was the following: 31 per cent worked in Finland, 26 per cent in Sweden, 24 per cent in Norway and 19 per cent in the Baltic and other countries. The average number of employees during the first half of 2007 was 6,803 compared to 11,592 employees during the first half of 2006. The comparison figure includes 4,340 employees of Sampo Bank Group and 348 employees of Primasoft. Management long-term incentive schemes The payout on Sampo Group's long-term management incentive schemes is dependent on Sampo's financial and share price performance. The incentive schemes 2004I - 2006II extend to 2010. The incentive schemes increased staff costs in the second quarter of 2007 by EUR 3 million (-12) and on 30 June 2007 the total provision for the schemes was EUR 25 million (53). The comparison figure contains EUR 18 million of provisions in the banking and investment services companies. The "Sampo 2006" share-based incentive increased staff costs by EUR 1 million in the second quarter of 2007. Ratings All the main ratings for Sampo Group companies remained unchanged in the second quarter of 2007. -------------------------------------------------------------------------------- | Rated company | Moody's | Standard and Poor's | -------------------------------------------------------------------------------- | | Rating | Outlook | Rating | Outlook | -------------------------------------------------------------------------------- | Sampo plc | Baa1 | Positive | Not rated | - | -------------------------------------------------------------------------------- | If P&C Insurance | A2 | Positive | A | Stable | | (Sweden) | | | | | -------------------------------------------------------------------------------- | If P&C Insurance Co. | A2 | Positive | A | Stable | | (Finland) | | | | | -------------------------------------------------------------------------------- Internal dividends In June 2007 If P&C Insurance Holding Ltd paid a dividend of SEK 2,140 million (EUR 227 million) and Sampo Life Insurance Company Limited a dividend of EUR 200 million to the parent company Sampo plc. Group solvency As a result of the disposal of Sampo Bank plc and other banking and investment service companies, the Group solvency for 2007 is based on adjusted solvency calculations for insurance groups according to the Decree of the Ministry of Social Affairs and Health (1106/2000), Chapter 7.1 Â§. The adjusted solvency is determined on the basis of the Group financial statements as permitted by the Insurance Supervisory Authority. In the comparative period, the Group solvency is calculated according to the consolidation method defined in Chapter 3 of the Act on the Supervision of Financial and Insurance Conglomerates, entered into force on 1 January 2005. The Group's solvency ratio (own funds in relation to minimum requirements for own funds) on 30 June 2007 was 856.9 per cent (202.7). -------------------------------------------------------------------------------- | SAMPO GROUP SOLVENCY | 30.6.2007 | 31.12.2006 | -------------------------------------------------------------------------------- | EURm | | | -------------------------------------------------------------------------------- | Group capital | 7,726 | 5,190 | -------------------------------------------------------------------------------- | Sectoral items | 942 | 3,134 | -------------------------------------------------------------------------------- | Intangibles and sectoral | -1,064 | -3,503 | | deductibles | | | -------------------------------------------------------------------------------- | Group's own funds, total | 7,604 | 4,821 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Minimum requirements for own | 887 | 2,378 | | funds, total | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Group solvency | 6,716 | 2,443 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Group solvency ratio | | | -------------------------------------------------------------------------------- | (Own funds % of minimum | 856.9 | 202.7 | | requirements) | | | -------------------------------------------------------------------------------- In Sampo Group, and in its insurance subsidiaries, risks are measured and aggregated internally using an economic capital framework, which quantifies the amount of capital required to protect the economic solvency over a one year time horizon at a confidence level equalling the historic bond defaults of AA-rated issuers. The economic capital tied up in the Group's operations on 30 June 2007 was EUR 2,910 million compared to pro forma EUR 2,695 million at 31 December 2006 excluding Sampo Bank Group. Developments after the end of the reporting period On 25 July 2007 Sampo received a disclosure under chapter 2, section 9 of the Securities Markets Act, regarding Exista hf.'s and its subsidiaries' holding in Sampo shares and voting rights. According to the disclosure Exista holds 15.58 per cent of Sampo's shares and 15.45 per cent of the voting rights and had entered into agreements, which enable the company to acquire an additional 4.35 percent of shares and 4.32 per cent of the voting rights. Morgan Stanley & Co International Limited's notified Sampo that its holding in Sampo plc had, as a result of share transaction concluded on 24 July 2007, risen to 5.33 per cent of the total amount of Sampo's shares and 5.29 per cent of the voting rights. According to the disclosure the holding had, as a result of share transaction concluded on 25 July 2007, decreased to 1.55 per cent of the total amount of Sampo's shares and 1.54 per cent of the voting rights. Complete disclosures are available at www.sampo.com. Outlook for the rest of 2007 Sampo Group's result for 2007 is expected to remain good, mainly because of the strong operating profitability of P&C and life insurance operations of the Group. In the second half of 2007 the favourable development is expected to continue in P&C insurance. Therefore, If P&C is expected to reach a combined ratio of 90-93 per cent for the full year 2007. It is foreseen to achieve its RoE target of 17.5 per cent with prevailing investment market conditions. If reports its investments at market value through the income statement, whereby changes in share prices or interest rates are directly reflected in its result. Sampo Life Group's full-year 2007 result is expected to be good. The RoE target of 17.5 per cent is foreseen to be achieved unless equity market performance significantly weakens. The focus of the operations continues to be on unit-linked insurance and risk policies both in Finland and the Baltics. Segment 'Holding' has investment assets of close to EUR 5 billion which are invested in cash or equivalents and in shares of Nordic financial services companies. Sampo Group remains committed to provide investors with a more detailed vision of how its assets will be invested in connection with full-year 2007 result release. Excluding extraordinary items, the segment is expected to report a pre-tax profit of EUR 25-30 million per quarter in 2007. The biggest risk for the outlook is a severe weakening of equity markets. However, in life insurance and Sampo plc equity losses would in all likelihood be absorbed by the fair value reserve and would not affect reported profits. If, on the other hand, has a fairly limited equity exposure. A sudden rise in interest rates would in the short term cause losses by lowering the value of bond portfolios, but in the longer run it would enhance fixed income yields. SAMPO PLC Board of Directors For more information, please contact: Peter Johansson, Group CFO, tel. +358 10 516 0010 Jarmo Salonen, Head of Investor Relations and Group Communications, tel. +358 10 516 0030 Maria Silander, Press Officer, +358 10 516 0031 Sampo will arrange a press conference at 1.30 pm (Savoy, EtelÃ¤esplanadi 14, Helsinki) and an English-language telephone conference for investors and analysts on the second quarter results at 4 p.m. (2 p.m. UK-time). Please call +44 20 7162 0025 (UK/Europe) or +1 334 323 6201 (North America). Password: SAMPO. The telephone conference can also be followed from a direct transmission on the Internet at www.sampo.com/ir A recorded version will later be available at the same address. Sampo will publish the third quarter 2007 interim report on 7 November 2007. DISTRIBUTION: The Helsinki Stock Exchange The principal media www.sampo.com Financial Supervisory Authority Insurance Supervisory Authority -------------------------------------------------------------------------------- | GROUP FINANCIAL REVIEW | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | FINANCIAL HIGHLIGHTS | | 1-6/2007 | 1-6/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GROUP Â¹) | | | | -------------------------------------------------------------------------------- | Profit before taxes | EURm | 3,418 | 558 | -------------------------------------------------------------------------------- | Return on equity (at fair value) | % | 50.7 | 15.2 | -------------------------------------------------------------------------------- | Return on assets (at fair value) | % | 10.4 | 2.8 | -------------------------------------------------------------------------------- | Equity/assets ratio | % | 30.4 | 9.4 | -------------------------------------------------------------------------------- | Group solvency Â²) | EURm | 6,716 | 2,417 | -------------------------------------------------------------------------------- | Group solvency ratio | % | 856.9 | 203.6 | -------------------------------------------------------------------------------- | Average number of staff 4) | | 6,803 | 11,592 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | PROPERTY & CASUALTY INSURANCE | | | | -------------------------------------------------------------------------------- | Premiums written before reinsurers' | EURm | 2,483 | 2,475 | | share | | | | -------------------------------------------------------------------------------- | Premiums earned | EURm | 1,863 | 1,868 | -------------------------------------------------------------------------------- | Profit before taxes | EURm | 311 | 186 | -------------------------------------------------------------------------------- | Return on equity (at current value) | % | 21.7 | 11.3 | -------------------------------------------------------------------------------- | Risk ratio Â³) | % | 68.2 | 68 | -------------------------------------------------------------------------------- | Cost ratio Â³) | % | 23.8 | 23.7 | -------------------------------------------------------------------------------- | Loss ratio Â³) | % | 75.6 | 75.9 | -------------------------------------------------------------------------------- | Loss ratio before unwinding of | % | 74.8 | 74.4 | | discount Â³) | | | | -------------------------------------------------------------------------------- | Expense ratio Â³) | % | 17.2 | 17.3 | -------------------------------------------------------------------------------- | Combined ratio | % | 92.8 | 93.1 | -------------------------------------------------------------------------------- | Combined ratio before unwinding of | % | 92.0 | 91.7 | | discount | | | | -------------------------------------------------------------------------------- | Average number of staff | | 6,375 | 6,457 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIFE INSURANCE | | | | -------------------------------------------------------------------------------- | Premiums written before reinsurers' | EURm | 314 | 309 | | share | | | | -------------------------------------------------------------------------------- | Profit before taxes | EURm | 187 | 216 | -------------------------------------------------------------------------------- | Return on equity (at current value) | % | 31.8 | 17.3 | -------------------------------------------------------------------------------- | Expense ratio | % | 110.0 | 107.5 | -------------------------------------------------------------------------------- | Average number of staff | | 370 | 359 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | HOLDING | | | | -------------------------------------------------------------------------------- | Profit before taxes | EURm | 61 | -34 | -------------------------------------------------------------------------------- | Average number of staff 4) | | 58 | 436 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | PER SHARE KEY FIGURES | | | | -------------------------------------------------------------------------------- | Earnings per share | EUR | 5.66 | 0.71 | -------------------------------------------------------------------------------- | Earnings per share, continuing | EUR | 0.72 | 0.49 | | operations | | | | -------------------------------------------------------------------------------- | Earnings per share, incl. change in | | | | | fair value | | | | -------------------------------------------------------------------------------- | reserve | EUR | 5.68 | 0.56 | -------------------------------------------------------------------------------- | Earnings per share, incl. change in | | | | | fair value | | | | -------------------------------------------------------------------------------- | reserve, continuing operations | | 0.74 | 0.33 | -------------------------------------------------------------------------------- | Diluted earnings per share | EUR | - | 0.70 | -------------------------------------------------------------------------------- | Diluted earnings per share, | EUR | - | 0.48 | | continuing operations | | | | -------------------------------------------------------------------------------- | Capital and reserves per share | EUR | 13.35 | 7.61 | -------------------------------------------------------------------------------- | Net asset value per share | EUR | 13.38 | 7.64 | -------------------------------------------------------------------------------- | Adjusted share price, high | EUR | 24.38 | 17.99 | -------------------------------------------------------------------------------- | Adjusted share price, low | EUR | 19.88 | 13.84 | -------------------------------------------------------------------------------- | Market capitalisation | EURm | 12,357 | 8,431 | -------------------------------------------------------------------------------- 'Â¹) Sampo plc's sales gain (EURm 2,830) arising from the disposal of the share stock of Sampo Bank plc to Danske Bank A/S is included in the Group key figures. Due to the one-off nature of the sales gain, the key figures return on equity and return on assets have not been annualised. 'Â²) As a result of the disposal of Sampo Bank plc and other banking and investment service companies, the Group solvency for 2007 is based on adjusted solvency calculations for insurance groups according to the Decree of the Ministry of Social Affairs and Health (1106/2000), Chapter 7.1 Â§. The adjusted solvency is determined on the basis of the Group financial statements as permitted by the Insurance Supervisory Authority. In the comparative period, the Group solvency is calculated according to the consolidation method defined in Chapter 3 of the Act on the Supervision of Financial and Insurance Conglomerates, entered into force on 1 Jan. 2005. Â³) The key figures for P&C Insurance are based on activity based costs and cannot, therefore, be calculated directly from the consolidated income statement. The result analysis of P&C insurance is presented in note 13. 4) The comparative Group number includes the number for banking and investment services (4,340). The comparative parent number includes staff for Primasoft Oy (348), fully consolidated in the financial statements for the year 2006. In calculating the per share key figures, the number of shares used at the balance sheet date was 578,530,890 and the average number of shares during the period 577,545,085. The 4,827,500 own shares held by Sampo plc and cancelled at 13 Feb. 2007 have been deducted from the average number of shares (1,146,865). In calculating the key figures, the tax corresponding to the result for the accounting period has been taken into account. The valuation differences of investment property and held-to-maturity debt securities have been taken into account in return on assets, return on equity, equity/assets ratio and net asset value per share. Additionally, the change in fair value reserve has been taken into account in return on assets and return on equity. A deferred tax liability has been deducted from the valuation differences. The key figures for the insurance business have been calculated according to the decree of the Ministry of Finance and the specifying instruction 11/002/2006 of the Insurance Supervisory Authority. -------------------------------------------------------------------------------- | CALCULATION OF KEY FIGURES | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Return on equity (fair values), % | | -------------------------------------------------------------------------------- | + profit before taxes | | -------------------------------------------------------------------------------- | + change in fair value reserve | | -------------------------------------------------------------------------------- | + change in valuation differences on investments | | -------------------------------------------------------------------------------- | - tax (incl. change in deferred tax relating to valuation | x 100 % | | differences on investments) | | -------------------------------------------------------------------------------- | + total equity | | -------------------------------------------------------------------------------- | + valuation differences on investments after deduction of | | | deferred tax | | -------------------------------------------------------------------------------- | (average of values 1 Jan. and the end of reporting period) | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Return on assets (at fair values), % | | -------------------------------------------------------------------------------- | + operating profit | | -------------------------------------------------------------------------------- | + interest and other financial charges | | -------------------------------------------------------------------------------- | + calculated interest on technical provisions | | -------------------------------------------------------------------------------- | + change in fair value reserve | | -------------------------------------------------------------------------------- | + change in valuation differences on investments | x 100 % | -------------------------------------------------------------------------------- | + balance sheet total | | -------------------------------------------------------------------------------- | - technical provisions relating to unit-linked insurance | | -------------------------------------------------------------------------------- | + valuation differences on investments | | -------------------------------------------------------------------------------- | (average of values on 1 Jan. and the end of the reporting | | | period) | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity/assets ratio (at fair values), % | | -------------------------------------------------------------------------------- | + total equity | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | + valuation differences on investments after deduction of | x 100 % | | deferred tax | | -------------------------------------------------------------------------------- | + balance sheet total | | -------------------------------------------------------------------------------- | + valuation differences on investments | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Risk ratio for P&C Insurance, % | | -------------------------------------------------------------------------------- | + claims incurred | | -------------------------------------------------------------------------------- | - claims settlement expenses | x 100 % | -------------------------------------------------------------------------------- | insurance premiums earned | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cost ratio for P&C Insurance, % | | -------------------------------------------------------------------------------- | + operating expenses | | -------------------------------------------------------------------------------- | + claims settlement expenses | | -------------------------------------------------------------------------------- | insurance premiums earned | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Loss ratio for P&C Insurance, % | | -------------------------------------------------------------------------------- | claims incurred | x 100 % | -------------------------------------------------------------------------------- | insurance premiums earned | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Expense ratio for P&C Insurance, % | | -------------------------------------------------------------------------------- | operating expenses | x 100 % | -------------------------------------------------------------------------------- | insurance premiums earned | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Combined ratio for P&C Insurance, % | | -------------------------------------------------------------------------------- | Loss ratio + expense ratio | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Expense ratio for life insurance, % | | -------------------------------------------------------------------------------- | + operating expenses before change in deferred acquisition | | | costs | | -------------------------------------------------------------------------------- | + claims settlement expenses | x 100 % | -------------------------------------------------------------------------------- | expense charges | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Per share key figures | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share | | -------------------------------------------------------------------------------- | Profit for the financial period attributable to the parent | | -------------------------------------------------------------------------------- | company's equity holders | | -------------------------------------------------------------------------------- | adjusted average number of shares | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity per share | | -------------------------------------------------------------------------------- | Profit for the financial period attributable to the parent | | -------------------------------------------------------------------------------- | company's equity holders | | -------------------------------------------------------------------------------- | adjusted number of shares at the balance sheet date | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net asset value per share | | -------------------------------------------------------------------------------- | + equity attributable to the parent company's equity holders | | -------------------------------------------------------------------------------- | + valuation differences after the deduction of deferred taxes | | -------------------------------------------------------------------------------- | adjusted number of shares at balance sheet date | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Market capitalisation | | -------------------------------------------------------------------------------- | number of shares at the balance sheet date | | -------------------------------------------------------------------------------- | x closing share price at the balance sheet date | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GROUP QUARTERLY INCOME | | | | | | | STATEMENT | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EURm | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | | | 2007 | 2007 | 2006 | 2006 | 2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Continuing operations | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Insurance premiums | 1,046 | 1,552 | 1,001 | 841 | 1,041 | | written | | | | | | -------------------------------------------------------------------------------- | Net income from | 360 | 322 | 335 | 298 | 20 | | investments | | | | | | -------------------------------------------------------------------------------- | Other operating income | 6 | 5 | 10 | 41 | 7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Claims incurred | -769 | -855 | -752 | -742 | -746 | -------------------------------------------------------------------------------- | Change in liabilities | -84 | -477 | -12 | 168 | 81 | | for insurance and | | | | | | | investment contracts | | | | | | -------------------------------------------------------------------------------- | Staff costs | -116 | -126 | -133 | -120 | -113 | -------------------------------------------------------------------------------- | Other operating | -139 | -132 | -175 | -107 | -147 | | expenses | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Finance costs | -16 | -19 | -17 | -21 | -19 | -------------------------------------------------------------------------------- | Share of associates' | 1 | 1 | 0 | 0 | 0 | | profit/loss | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit from continuing | 289 | 270 | 258 | 359 | 125 | | operations before | | | | | | | taxes | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Taxes | -75 | -68 | -75 | -104 | -43 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit from continuing | 214 | 202 | 183 | 255 | 82 | | operations | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Discontinued | | | | | | | operations | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit from | 0 | 2,853 | 57 | 82 | 73 | | discontinued | | | | | | | operations | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit for the period | 214 | 3,055 | 241 | 337 | 156 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to | | | | | | -------------------------------------------------------------------------------- | Equity holders of | 214 | 3,054 | 239 | 335 | 154 | | parent company | | | | | | -------------------------------------------------------------------------------- | Minority interest | 0 | 0 | 2 | 2 | 2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED INCOME STATEMENT | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EURm | Note | 1-6/2007 | 1-6/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Continuing operations | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Insurance premiums written | 1 | 2,598 | 2,591 | -------------------------------------------------------------------------------- | Net income from investments | 2 | 682 | 375 | -------------------------------------------------------------------------------- | Other operating income | | 11 | 13 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Claims incurred | 3 | -1,625 | -1,536 | -------------------------------------------------------------------------------- | Change in liabilities for insurance | | -562 | -509 | | and investment contracts | | | | -------------------------------------------------------------------------------- | Staff costs | 4 | -241 | -230 | -------------------------------------------------------------------------------- | Other operating expenses | | -271 | -290 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Finance costs | | -35 | -47 | -------------------------------------------------------------------------------- | Share of associates' profit/loss | | 1 | 1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit from continuing operations | | 559 | 367 | | before taxes | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Taxes | | -143 | -103 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit from continuing operations | | 416 | 265 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Discontinued operations | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit from discontinued operations | | 2,853 | 149 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit for the period | | 3,269 | 414 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to | | | | -------------------------------------------------------------------------------- | Equity holders of parent company | | 3,269 | 403 | -------------------------------------------------------------------------------- | Minority interest | | 0 | 11 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earning per share (eur) | | | | -------------------------------------------------------------------------------- | Basic, continuing operations | | 0.72 | 0.49 | -------------------------------------------------------------------------------- | Basic, discontinued operations | | 4.94 | 0.22 | -------------------------------------------------------------------------------- | Total | | 5.66 | 0.71 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Diluted, continuing operations | | - | 0.48 | -------------------------------------------------------------------------------- | Diluted, discontinued operations | | - | 0.22 | -------------------------------------------------------------------------------- | Total | | - | 0.70 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE SHEET | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EURm | Note | 6/2007 | 12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assets | | | | -------------------------------------------------------------------------------- | Property, plant and equipment | | 38 | 51 | -------------------------------------------------------------------------------- | Investment property | | 159 | 170 | -------------------------------------------------------------------------------- | Intangible assets | 5 | 741 | 782 | -------------------------------------------------------------------------------- | Investments in associates | | 7 | 5 | -------------------------------------------------------------------------------- | Financial assets | 6, 7 | 19,964 | 15,921 | -------------------------------------------------------------------------------- | Investments related to unit-linked | 8 | 2,022 | 1,753 | | insurance | | | | -------------------------------------------------------------------------------- | Tax assets | | 117 | 149 | -------------------------------------------------------------------------------- | Reinsurers' share of insurance | | 610 | 525 | | liabilities | | | | -------------------------------------------------------------------------------- | Other assets | | 1,510 | 1,638 | -------------------------------------------------------------------------------- | Cash and cash equivalents | | 909 | 41 | -------------------------------------------------------------------------------- | Non-current assets classified as held | | - | 26,585 | | for sale | | | | -------------------------------------------------------------------------------- | Total assets | | 26,078 | 47,620 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities | | | | -------------------------------------------------------------------------------- | Liabilities for insurance and | 9 | 13,562 | 12,942 | | investment contracts | | | | -------------------------------------------------------------------------------- | Liabilities for unit-linked insurance | 10 | 2,017 | 1,752 | | and investment contracts | | | | -------------------------------------------------------------------------------- | Financial liabilities | 11, 12 | 1,146 | 1,396 | -------------------------------------------------------------------------------- | Tax liabilities | | 651 | 607 | -------------------------------------------------------------------------------- | Provisions | | 35 | 53 | -------------------------------------------------------------------------------- | Employee benefits | | 114 | 97 | -------------------------------------------------------------------------------- | Other liabilities | | 827 | 1,064 | -------------------------------------------------------------------------------- | Liabilities directly associated with | | - | 24,520 | | non-current assets classified as held | | | | | for sale | | | | -------------------------------------------------------------------------------- | Total liabilities | | 18,352 | 42,431 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity | | | | -------------------------------------------------------------------------------- | Share capital | | 98 | 95 | -------------------------------------------------------------------------------- | Reserves | | 2,027 | 2,012 | -------------------------------------------------------------------------------- | Retained earnings | | 5,601 | 3,061 | -------------------------------------------------------------------------------- | Equity attributable to parent | | 7,725 | 5,168 | | company's equityholders | | | | -------------------------------------------------------------------------------- | Minority interest | | 0 | 21 | -------------------------------------------------------------------------------- | Total equity | | 7,726 | 5,189 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total equity and liabilities | | 26,078 | 47,620 | -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN EQUITY, IFRS -------------------------------------------------------------------------------- | EURm | Share | Share | Legal | Fair | Retain | Total | Minor | Total | | | capit | premi | reser | value | ed | | ity | | | | al | um | ve | reserv | earnin | | inter | | | | | accou | | e | gs | | est | | | | | nt | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity at | 96 | 1,048 | 370 | 396 | 2,412 | 4,322 | 26 | 4,348 | | 1 Jan. | | | | | | | | | | 2006 | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow | | | | | | | | | | hedges: | | | | | | | | | -------------------------------------------------------------------------------- | - | | | | 0 | | 0 | | 0 | | recognised | | | | | | | | | | in equity | | | | | | | | | | during the | | | | | | | | | | financial | | | | | | | | | | year | | | | | | | | | -------------------------------------------------------------------------------- | - | | | | -1 | | -1 | | -1 | | recognised | | | | | | | | | | in p/l | | | | | | | | | -------------------------------------------------------------------------------- | Financial | | | | | | | | | | assets | | | | | | | | | | available- | | | | | | | | | | for-sale | | | | | | | | | -------------------------------------------------------------------------------- | - change | | | | 36 | | 36 | | 36 | | in fair | | | | | | | | | | value | | | | | | | | | -------------------------------------------------------------------------------- | - | | | | -121 | | -121 | | -121 | | recognised | | | | | | | | | | in p/l | | | | | | | | | -------------------------------------------------------------------------------- | Exchange | | | | | 34 | 34 | | 34 | | rate | | | | | | | | | | translatio | | | | | | | | | | n | | | | | | | | | | difference | | | | | | | | | -------------------------------------------------------------------------------- | Profit for | | | | | 403 | 403 | 11 | 414 | | the period | | | | | | | | | -------------------------------------------------------------------------------- | Total | | | | -85 | 436 | 351 | 11 | 362 | | income and | | | | | | | | | | expenses | | | | | | | | | | recognised | | | | | | | | | | for the | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Subscripti | 0 | 2 | | | | 2 | | 2 | | on for | | | | | | | | | | shares | | | | | | | | | | with | | | | | | | | | | options | | | | | | | | | -------------------------------------------------------------------------------- | Acquisitio | -1 | 1 | | | -50 | -48 | | -48 | | n of own | | | | | | | | | | shares | | | | | | | | | -------------------------------------------------------------------------------- | Recognitio | | | | | 13 | 13 | | 13 | | n of | | | | | | | | | | undrawn | | | | | | | | | | dividends | | | | | | | | | -------------------------------------------------------------------------------- | Dividends | | | | | -339 | -339 | -15 | -354 | -------------------------------------------------------------------------------- | Equity at | 95 | 1,051 | 370 | 311 | 2,473 | 4,301 | 22 | 4,323 | | 30 June | | | | | | | | | | 2006 | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity at | 95 | 1,157 | 370 | 486 | 3,061 | 5,168 | 21 | 5,189 | | 1 Jan. | | | | | | | | | | 2007 | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Items of | | 0 | 0 | 3 | -3 | -1 | -21 | -22 | | equity of | | | | | | | | | | disposed | | | | | | | | | | operations | | | | | | | | | -------------------------------------------------------------------------------- | Financial | | | | | | | | | | assets | | | | | | | | | | available- | | | | | | | | | | for-sale | | | | | | | | | -------------------------------------------------------------------------------- | - change | | | | 104 | | 104 | | 104 | | in fair | | | | | | | | | | value | | | | | | | | | -------------------------------------------------------------------------------- | - | | | | -96 | | -96 | | -96 | | recognised | | | | | | | | | | in p/l | | | | | | | | | -------------------------------------------------------------------------------- | Exchange | 0 | 0 | 0 | | -37 | -37 | | -37 | | rate | | | | | | | | | | translatio | | | | | | | | | | n | | | | | | | | | | difference | | | | | | | | | -------------------------------------------------------------------------------- | Profit for | | | | | 3,269 | 3,269 | 0 | 3,269 | | period | | | | | | | | | -------------------------------------------------------------------------------- | Total | 0 | 0 | 0 | 11 | 3,228 | 3,239 | -21 | 3,218 | | income and | | | | | | | | | | expenses | | | | | | | | | | recognised | | | | | | | | | | for the | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Subscripti | 3 | 4 | | | | 6 | | 6 | | on for | | | | | | | | | | shares | | | | | | | | | | with | | | | | | | | | | options | | | | | | | | | -------------------------------------------------------------------------------- | Share-base | | | | | -1 | -1 | | -1 | | d payments | | | | | | | | | -------------------------------------------------------------------------------- | Recognitio | | | | | 6 | 6 | | 6 | | n of | | | | | | | | | | undrawn | | | | | | | | | | dividends | | | | | | | | | -------------------------------------------------------------------------------- | Dividends | | | | | -693 | -693 | | -693 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity at | 98 | 1,160 | 370 | 497 | 5,601 | 7,725 | 0 | 7,726 | | 30 June | | | | | | | | | | 2007 | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | STATEMENT OF CASH FLOWS | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 1-6/2007 | 1-6/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash and cash equivalent at the beginning of | 2,016 | 1,787 | | the period | | | -------------------------------------------------------------------------------- | Cash flows from/used in operating activities | -2,435 | -1,042 | -------------------------------------------------------------------------------- | Cash flows from/used in investing activities | 2,662 | -19 | -------------------------------------------------------------------------------- | Cash flows from/used in financing activities | -1,332 | 1,294 | -------------------------------------------------------------------------------- | Paid dividends | -690 | -354 | -------------------------------------------------------------------------------- | Subscription for shares with options | 6 | 2 | -------------------------------------------------------------------------------- | Acquisition of own shares | - | -48 | -------------------------------------------------------------------------------- | Increase of liabilities | 742 | 6,301 | -------------------------------------------------------------------------------- | Decrease of liabilities | -1,390 | -4,607 | -------------------------------------------------------------------------------- | Cash and cash equivalent at the end of the | 911 | 2,020 | | period | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | The net cash flows of discontinued operations | 1-6/2007 | 1-6/2006 | -------------------------------------------------------------------------------- | Cash flows used in operating activities | -712 | -837 | -------------------------------------------------------------------------------- | Cash flows from/used in investing activities | 3,224 | -26 | -------------------------------------------------------------------------------- | Cash flows from/used in financing activities | -299 | 1,241 | -------------------------------------------------------------------------------- | Net cash flows total | 2,214 | 378 | -------------------------------------------------------------------------------- In the statements, the net cash derived from the disposal of Banking and investment services, is included in the cash flows from investing activities. The cash flow statement reports cash flows during the period classified by operating, investing and financing activities. Cash flows are reported by using the indirect method. Cash flows from operating activities derive primarily from the principal revenue-producing activities. Cash flows from investments in subsidiaries and associated undertakings and those from investments in intangible assets and property, plant and equipment are presented in investing activities. Financing activities include cash flows resulting from changes in equity and borrowings in order to conduct the business. Cash and cash equivalents consist of cash at bank and in hand and short-term deposits (under 3 months). NOTES ACCOUNTING POLICIES Sampo Group's consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS) adopted by the EU. The interim financial statements are presented in accordance with IAS 34 Interim Financial Reporting. In preparing the interim financial statements, the same accounting policies and methods of computation are applied as in the financial statements for 2006. Sampo has in 2007 adopted the following interpretations: IFRIC 8 Scope of IFRS 2, IFRIC 9 Reassesment of embedded derivatives, IFRIC 10 Interim Financial Reporting and impairment, and IFRIC 11 IFRS 2 - Group and treasury share transactions. The adoption of interpretations has not had an effect on the Group consolidated financial statements, per share key figures or accounting policies. The financial statements for 2006 are available on Sampo's website at the address www.sampo.com/ir. -------------------------------------------------------------------------------- | CONSOLIDATED INCOME | | | | | | | STATEMENT BY SEGMENT FOR | | | | | | | SIX MONTHS ENDED 30 JUNE | | | | | | | 2007 | | | | | | -------------------------------------------------------------------------------- | EURm | P&C | Life | Holding | Elimina- | Group | | | insuranc | insuran | | tion | | | | e | ce | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Insurance premius | 2,288 | 310 | - | - | 2,598 | | written | | | | | | -------------------------------------------------------------------------------- | Net income from | 180 | 407 | 99 | -4 | 682 | | investments | | | | | | -------------------------------------------------------------------------------- | Other operating income | 13 | 0 | 3 | -5 | 11 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Claims incurred | -1,272 | -353 | - | - | -1,625 | -------------------------------------------------------------------------------- | Change in liabilities | -425 | -137 | - | - | -562 | | for insurance and | | | | | | | investment contracts | | | | | | -------------------------------------------------------------------------------- | Staff costs | -222 | -10 | -9 | - | -241 | -------------------------------------------------------------------------------- | Other operating expenses | -238 | -25 | -13 | 5 | -271 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Finance costs | -14 | -5 | -20 | 4 | -35 | -------------------------------------------------------------------------------- | Share of associates' | 0 | 0 | 0 | - | 1 | | profit/loss | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit from continuing | 311 | 187 | 61 | 0 | 559 | | operations before taxes | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Taxes | | | | | -143 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit from continuing | | | | | 416 | | operations | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit from discontinued | | | | | 2,853 | | operations | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit for the period | | | | | 3,269 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to | | | | | 3,269 | -------------------------------------------------------------------------------- | Equity holders of parent | | | | | 0 | | company | | | | | | -------------------------------------------------------------------------------- | Minority interest | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED INCOME | | | | | | | STATEMENT BY SEGMENT FOR | | | | | | | SIX MONTHS ENDED 30 JUNE | | | | | | | 2006 | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EURm | P&C | Life | Holding | Elimina- | Group | | | insuranc | insuran | | tion | | | | e | ce | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Insurance premius | 2,288 | 303 | - | - | 2,591 | | written | | | | | | -------------------------------------------------------------------------------- | Net income from | 53 | 303 | 17 | 3 | 375 | | investments | | | | | | -------------------------------------------------------------------------------- | Other operating income | 11 | 0 | 30 | -28 | 13 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Claims incurred | -1,270 | -267 | - | - | -1,536 | -------------------------------------------------------------------------------- | Change in liabilities | -420 | -89 | - | - | -509 | | for insurance and | | | | | | | investment contracts | | | | | | -------------------------------------------------------------------------------- | Staff costs | -203 | -10 | -20 | 3 | -230 | -------------------------------------------------------------------------------- | Other operating expenses | -256 | -20 | -31 | 17 | -290 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Finance costs | -16 | -5 | -30 | 4 | -47 | -------------------------------------------------------------------------------- | Share of associates' | 0 | 1 | 0 | - | 1 | | profit/loss | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit from continuing | 186 | 216 | -34 | -1 | 367 | | operations before taxes | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Taxes | | | | | -103 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit from continuing | | | | | 265 | | operations | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit from discontinued | | | | | 137 | | operations | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Intra-segment | | | | | 13 | | elimination items | | | | | | | attributable to | | | | | | | discontinued operations | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit for the period | | | | | 414 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to | | | | | | -------------------------------------------------------------------------------- | Equity holders of parent | | | | | 403 | | company | | | | | | -------------------------------------------------------------------------------- | Minority interest | | | | | 11 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE | | | | | | | SHEET BY SEGMENT AT 30 | | | | | | | JUNE 2007 | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EURm | P&C | Life | Holdin | Elimina | Group | | | insuranc | insuranc | g | -tion | | | | e | e | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assets | | | | | | -------------------------------------------------------------------------------- | Property, plant and | 28 | 5 | 5 | - | 38 | | equipment | | | | | | -------------------------------------------------------------------------------- | Investment property | 38 | 108 | 13 | - | 159 | -------------------------------------------------------------------------------- | Intangible assets | 580 | 161 | 0 | - | 741 | -------------------------------------------------------------------------------- | Investments in associates | 4 | 1 | 2 | - | 7 | -------------------------------------------------------------------------------- | Financial assets | 9,910 | 5,561 | 6,993 | -2,499 | 19,964 | -------------------------------------------------------------------------------- | Investments related to | - | 2,022 | - | - | 2,022 | | unit-linked insurance | | | | | | -------------------------------------------------------------------------------- | Tax assets | 103 | 1 | 12 | 1 | 117 | -------------------------------------------------------------------------------- | Reinsurers' share of | 605 | 5 | - | - | 610 | | insurance liabilities | | | | | | -------------------------------------------------------------------------------- | Other assets | 1,416 | 62 | 54 | -22 | 1,510 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 547 | 156 | 206 | - | 909 | -------------------------------------------------------------------------------- | Total assets | 13,230 | 8,083 | 7,285 | -2,520 | 26,078 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities | | | | | | -------------------------------------------------------------------------------- | Liabilities for insurance | 8,935 | 4,627 | - | - | 13,562 | | and investment contracts | | | | | | -------------------------------------------------------------------------------- | Liabilities for | - | 2,017 | - | - | 2,017 | | unit-linked insurance and | | | | | | | investment contracts | | | | | | -------------------------------------------------------------------------------- | Financial liabilities | 552 | 109 | 610 | -125 | 1,146 | -------------------------------------------------------------------------------- | Tax liabilities | 421 | 217 | 13 | - | 651 | -------------------------------------------------------------------------------- | Provisions | 35 | 0 | 0 | - | 35 | -------------------------------------------------------------------------------- | Employee benefits | 114 | - | - | - | 114 | -------------------------------------------------------------------------------- | Other liabilities | 642 | 73 | 133 | -22 | 827 | -------------------------------------------------------------------------------- | Total liabilities | 10,700 | 7,043 | 756 | -146 | 18,352 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity | | | | | | -------------------------------------------------------------------------------- | Share capital | | | | | 98 | -------------------------------------------------------------------------------- | Reserves | | | | | 2,027 | -------------------------------------------------------------------------------- | Retained earnings | | | | | 5,601 | -------------------------------------------------------------------------------- | Equity attributable to | | | | | 7,725 | | parent company's | | | | | | | equityholders | | | | | | -------------------------------------------------------------------------------- | Minority interest | | | | | 0 | -------------------------------------------------------------------------------- | Total equity | | | | | 7,726 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total equity and | | | | | 26,078 | | liabilities | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE | | | | | | | SHEET BY SEGMENT AT 31 | | | | | | | DECEMBER 2006 | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EURm | P&C | Life | Holdin | Elimina | Group | | | insuranc | insuranc | g | -tion | | | | e | e | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assets | | | | | | -------------------------------------------------------------------------------- | Property, plant and | 28 | 5 | 18 | - | 51 | | equipment | | | | | | -------------------------------------------------------------------------------- | Investment property | 41 | 110 | 19 | - | 170 | -------------------------------------------------------------------------------- | Intangible assets | 599 | 159 | 23 | - | 782 | -------------------------------------------------------------------------------- | Investments in associates | 4 | 1 | 0 | - | 5 | -------------------------------------------------------------------------------- | Financial assets | 9,821 | 5,657 | 4,043 | -3,598 | 15,921 | -------------------------------------------------------------------------------- | Investments related to | - | 1,753 | - | - | 1,753 | | unit-linked insurance | | | | | | -------------------------------------------------------------------------------- | Tax assets | 113 | 13 | 22 | 1 | 149 | -------------------------------------------------------------------------------- | Reinsurers' share of | 521 | 4 | - | - | 525 | | insurance liabilities | | | | | | -------------------------------------------------------------------------------- | Other assets | 1,475 | 121 | 78 | -36 | 1,638 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 230 | 58 | 336 | -582 | 41 | -------------------------------------------------------------------------------- | Non-current assets | - | - | - | - | 26,585 | | classified as held for | | | | | | | sale | | | | | | -------------------------------------------------------------------------------- | Total assets | 12,831 | 7,882 | 4,538 | -4,216 | 47,620 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities | | | | | | -------------------------------------------------------------------------------- | Liabilities for insurance | 8,247 | 4,695 | - | - | 12,942 | | and investment contracts | | | | | | -------------------------------------------------------------------------------- | Liabilities for | - | 1,752 | - | - | 1,752 | | unit-linked insurance and | | | | | | | investment contracts | | | | | | -------------------------------------------------------------------------------- | Financial liabilities | 499 | 112 | 930 | -146 | 1,395 | -------------------------------------------------------------------------------- | Tax liabilities | 407 | 189 | 11 | - | 607 | -------------------------------------------------------------------------------- | Provisions | 42 | - | - | - | 42 | -------------------------------------------------------------------------------- | Employee benefits | 109 | - | - | - | 109 | -------------------------------------------------------------------------------- | Other liabilities | 961 | 39 | 98 | -32 | 1,065 | -------------------------------------------------------------------------------- | Liabilities directly | - | - | - | - | 24,520 | | associated with | | | | | | | non-current assets | | | | | | | classified as held for | | | | | | | sale | | | | | | -------------------------------------------------------------------------------- | Total liabilities | 10,264 | 6,787 | 1,039 | -179 | 42,431 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity | | | | | | -------------------------------------------------------------------------------- | Share capital | | | | | 95 | -------------------------------------------------------------------------------- | Reserves | | | | | 2,012 | -------------------------------------------------------------------------------- | Retained earnings | | | | | 3,061 | -------------------------------------------------------------------------------- | Equity attributable to | | | | | 5,168 | | parent company's | | | | | | | equityholders | | | | | | -------------------------------------------------------------------------------- | Minority interest | | | | | 21 | -------------------------------------------------------------------------------- | Total equity | | | | | 5,189 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total equity and | | | | | 47,620 | | liabilities | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | OTHER NOTES | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1 INSURANCE PREMIUMS | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | P&C insurance | | | -------------------------------------------------------------------------------- | | 1-6/2007 | 1-6/2006 | -------------------------------------------------------------------------------- | Premiums from insurance contracts | | | -------------------------------------------------------------------------------- | Premiums written, direct insurance | 2,424 | 2,412 | -------------------------------------------------------------------------------- | Premiums written, assumed reinsurance | 60 | 63 | -------------------------------------------------------------------------------- | Premiums written, gross | 2,483 | 2,475 | -------------------------------------------------------------------------------- | Ceded reinsurance premiums written | -195 | -187 | -------------------------------------------------------------------------------- | Premiums written, net | 2,288 | 2,288 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in unearned premium provision | -494 | -490 | -------------------------------------------------------------------------------- | Reinsurers' share | 69 | 71 | -------------------------------------------------------------------------------- | Insurance premiums earned, net | 1,863 | 1,868 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Life insurance | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Premiums from insurance contracts | | | -------------------------------------------------------------------------------- | Premiums from contracts with discretionary | 97 | 87 | | participation feature | | | -------------------------------------------------------------------------------- | Premiums from unit-linked contracts | 200 | 186 | -------------------------------------------------------------------------------- | Premiums from other contracts | 3 | 2 | -------------------------------------------------------------------------------- | Insurance contracts, total | 300 | 275 | -------------------------------------------------------------------------------- | Assumed reinsurance | 0 | 2 | -------------------------------------------------------------------------------- | Premiums from investment contracts | | | -------------------------------------------------------------------------------- | Premiums from contracts with discretionary | 1 | 3 | | participation feature | | | -------------------------------------------------------------------------------- | Premiums from unit-linked contracts | 13 | 28 | -------------------------------------------------------------------------------- | Investment contracts, total | 14 | 31 | -------------------------------------------------------------------------------- | Reinsurers' shares | -5 | -6 | -------------------------------------------------------------------------------- | Premiums written, total | 310 | 303 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Single and regular premiums from direct | | | | insurance | | | -------------------------------------------------------------------------------- | Regular premiums, insurance contracts | 190 | 149 | -------------------------------------------------------------------------------- | Single premiums, insurance contracts | 110 | 126 | -------------------------------------------------------------------------------- | Single premiums, investment contracts | 14 | 31 | -------------------------------------------------------------------------------- | Total | 314 | 306 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Group, total | 2,598 | 2,591 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 2 NET INCOME FROM INVESTMENTS | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | P&C Insurance | | | -------------------------------------------------------------------------------- | | 1-6/2007 | 1-6/2006 | -------------------------------------------------------------------------------- | Financial assets | | | -------------------------------------------------------------------------------- | Derivative financial instruments | 19 | 13 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial assets designated as at fair value | | | | through p/l | | | -------------------------------------------------------------------------------- | Debt securities | 50 | -13 | -------------------------------------------------------------------------------- | Equity securities | 131 | 78 | -------------------------------------------------------------------------------- | Total | 182 | 65 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Loans and receivables | 12 | 5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total financial assets | 212 | 83 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Income from other assets | 0 | 2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Fee and commission expense | -4 | -4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Expense on other than financial liabilities | -1 | -1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Effect of discounting annuities | -28 | -27 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | P&C insurance, total | 180 | 53 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Life insurance | | | -------------------------------------------------------------------------------- | | 1-6/2007 | 1-6/2006 | -------------------------------------------------------------------------------- | Financial assets | | | -------------------------------------------------------------------------------- | Derivative financial instruments | 22 | 19 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Investments related to unit-linked contracts | | | -------------------------------------------------------------------------------- | Debt securities | -3 | 0 | -------------------------------------------------------------------------------- | Equity securities | 119 | 3 | -------------------------------------------------------------------------------- | Total | 116 | 3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Investment securities held-to-maturity | | | -------------------------------------------------------------------------------- | Debt securities | 0 | 0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Loans and receivables | 3 | 1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial asset available-for-sale | | | -------------------------------------------------------------------------------- | Debt securities | 46 | 47 | -------------------------------------------------------------------------------- | Equity securities | 213 | 223 | -------------------------------------------------------------------------------- | Total | 259 | 270 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total income from financial assets | 400 | 292 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other assets | 1 | 3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Fee and commission income, net | 6 | 7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Life insurance, total | 407 | 303 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Holding | | | -------------------------------------------------------------------------------- | | 1-6/2007 | 1-6/2006 | -------------------------------------------------------------------------------- | Financial assets | | | -------------------------------------------------------------------------------- | Derivative financial instruments | 0 | 1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Loans and other receivables | -1 | 5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial assets available-for-sale | | | -------------------------------------------------------------------------------- | Debt securities | 61 | 4 | -------------------------------------------------------------------------------- | Equity securities | 40 | 2 | -------------------------------------------------------------------------------- | Total | 101 | 6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other assets | -1 | 5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Holding, total | 99 | 17 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Elimination items between segments | -4 | 3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Group, total | 682 | 375 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 3 CLAIMS | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | P&C insurance | 1-6/2007 | 1-6/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Claims paid | -1,157 | -1,164 | -------------------------------------------------------------------------------- | Reinsurers' share | 54 | 81 | -------------------------------------------------------------------------------- | Claims paid, net | -1,104 | -1,083 | -------------------------------------------------------------------------------- | Change in provision for claims outstanding | -180 | -163 | -------------------------------------------------------------------------------- | Reinsurers' share | 12 | -23 | -------------------------------------------------------------------------------- | Claims incurred, net | -1,272 | -1,270 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Life insurance | 1-6/2007 | 1-6/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Claims paid | -297 | -211 | -------------------------------------------------------------------------------- | Reinsurers' share | 4 | 4 | -------------------------------------------------------------------------------- | Claims paid, net | -293 | -207 | -------------------------------------------------------------------------------- | Change in provision for claims outstanding | -60 | -59 | -------------------------------------------------------------------------------- | Reinsurers' share | 0 | 0 | -------------------------------------------------------------------------------- | Claims incurred, net | -353 | -267 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Group, total | -1,625 | -1,536 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 4 STAFF COSTS | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | P&C insurance | 1-6/2007 | 1-6/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Wages and salaries | -151 | -143 | -------------------------------------------------------------------------------- | Granted equity-settled share options | 0 | - | -------------------------------------------------------------------------------- | Granted cash-settled share options | -5 | -2 | -------------------------------------------------------------------------------- | Pension costs | -34 | -32 | -------------------------------------------------------------------------------- | Other social security costs | -31 | -26 | -------------------------------------------------------------------------------- | P&C insurance, total | -222 | -203 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Life insurance | 1-6/2007 | 1-6/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Wages and salaries | -8 | -7 | -------------------------------------------------------------------------------- | Granted equity-settled share options | 0 | - | -------------------------------------------------------------------------------- | Granted cash-settled share options | 0 | 0 | -------------------------------------------------------------------------------- | Pension costs | -1 | -1 | -------------------------------------------------------------------------------- | Other social security costs | -1 | -1 | -------------------------------------------------------------------------------- | Life insurance, total | -10 | -10 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Holding | 1-6/2007 | 1-6/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Wages and salaries | -4 | -15 | -------------------------------------------------------------------------------- | Granted equity-settled share options | -1 | - | -------------------------------------------------------------------------------- | Granted cash-settled share options | -3 | -1 | -------------------------------------------------------------------------------- | Pension costs | -1 | -3 | -------------------------------------------------------------------------------- | Other social security costs | 0 | -1 | -------------------------------------------------------------------------------- | Holding, total | -9 | -20 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Elimination items between segments | - | 3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Group, total | -241 | -230 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 5 INTANGIBLE ASSETS | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | P&C insurance | 6/2007 | 12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Goodwill | 542 | 557 | -------------------------------------------------------------------------------- | Customer relations | 25 | 29 | -------------------------------------------------------------------------------- | Other intangible assets | 12 | 13 | -------------------------------------------------------------------------------- | Total | 580 | 599 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Life insurance | 6/2007 | 12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Goodwill | 153 | 153 | -------------------------------------------------------------------------------- | Other intangible assets | 8 | 6 | -------------------------------------------------------------------------------- | Total | 161 | 159 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Holding | 6/2007 | 12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other intangible assets | 0 | 23 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Group, total | 741 | 782 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 6 FINANCIAL ASSETS | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | P&C insurance | | | -------------------------------------------------------------------------------- | | 6/2007 | 12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Derivative financial instruments (Note 7) | 174 | 87 | -------------------------------------------------------------------------------- | Financial assets designated as at fair value | | | | through p/l | | | -------------------------------------------------------------------------------- | Debt securities | 8,601 | 8,690 | -------------------------------------------------------------------------------- | Equity securities | 1,132 | 1,041 | -------------------------------------------------------------------------------- | Total | 9,733 | 9,732 | -------------------------------------------------------------------------------- | Loans and receivables | | | -------------------------------------------------------------------------------- | Deposits with ceding undertakings | 2 | 2 | -------------------------------------------------------------------------------- | P&C insurance, total | 9,910 | 9,821 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Life insurance | | | -------------------------------------------------------------------------------- | | 6/2007 | 12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Derivative financial instruments (Note 7) | 16 | 16 | -------------------------------------------------------------------------------- | Financial assets designated as at fair value | | | | through p/l | | | -------------------------------------------------------------------------------- | Debt securities | 38 | 70 | -------------------------------------------------------------------------------- | Equity securities | 3 | 5 | -------------------------------------------------------------------------------- | Total | 41 | 75 | -------------------------------------------------------------------------------- | Investments held-to-maturity | | | -------------------------------------------------------------------------------- | Debt securities | 8 | 10 | -------------------------------------------------------------------------------- | Loans and receivables | | | -------------------------------------------------------------------------------- | Deposits | 2 | 4 | -------------------------------------------------------------------------------- | Deposits with ceding undertakings | 2 | 2 | -------------------------------------------------------------------------------- | Total | 4 | 6 | -------------------------------------------------------------------------------- | Financial assets available-for-sale | | | -------------------------------------------------------------------------------- | Debt securities | 3,572 | 3,440 | -------------------------------------------------------------------------------- | Equity securities | 1,920 | 2,110 | -------------------------------------------------------------------------------- | Total | 5,492 | 5,550 | -------------------------------------------------------------------------------- | Life insurance, total | 5,561 | 5,657 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Holding | | | -------------------------------------------------------------------------------- | | 6/2007 | 12/2006 | -------------------------------------------------------------------------------- | Loans and receivables | | | -------------------------------------------------------------------------------- | Deposits | 0 | 291 | -------------------------------------------------------------------------------- | Financial assets available-for-sale | | | -------------------------------------------------------------------------------- | Debt securities | 3,575 | 140 | -------------------------------------------------------------------------------- | Equity securities | 1,048 | 454 | -------------------------------------------------------------------------------- | Total | 4,623 | 595 | -------------------------------------------------------------------------------- | Investments in subsidiaries | 2,370 | 3,157 | -------------------------------------------------------------------------------- | Holding, total | 6,993 | 4,043 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Elimination items between segments | -2,499 | -3,598 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Group, total | 19,964 | 15,921 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 7 DERIVATIVE | | | | | | | | FINANCIAL | | | | | | | | INSTRUMENTS | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | P&C insurance | | 6/2007 | | | 12/2006 | | -------------------------------------------------------------------------------- | | | Fair | Fair | | Fair | Fair | | | | value | value | | value | value | -------------------------------------------------------------------------------- | | Contrac | Assets | Liabili | Contract | Assets | Liabili | | | t/ | | ties | / | | ties | | | notiona | | | notional | | | | | l | | | amount | | | | | amount | | | | | | -------------------------------------------------------------------------------- | Derivatives held | | | | | | | | for trading | | | | | | | -------------------------------------------------------------------------------- | Interest rate | 8,462 | 4 | 3 | 1,668 | 4 | 2 | | derivatives | | | | | | | -------------------------------------------------------------------------------- | Foreign exchange | 8,027 | 170 | 108 | 4,548 | 73 | 55 | | derivatives | | | | | | | -------------------------------------------------------------------------------- | Equity | 104 | 0 | 0 | 15 | 10 | 0 | | derivatives | | | | | | | -------------------------------------------------------------------------------- | Total derivative | 16,594 | 174 | 112 | 6,232 | 87 | 57 | | assets/(liabilit | | | | | | | | ies) held for | | | | | | | | trading | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Life insurance | | 6/2007 | | | 12/2006 | | -------------------------------------------------------------------------------- | | | Fair | Fair | | Fair | Fair | | | | value | value | | value | value | -------------------------------------------------------------------------------- | | Contrac | Assets | Liabili | Contract | Assets | Liabili | | | t/ | | ties | / | | ties | | | notiona | | | notional | | | | | l | | | amount | | | | | amount | | | | | | -------------------------------------------------------------------------------- | Derivatives held | | | | | | | | for trading | | | | | | | -------------------------------------------------------------------------------- | Interest rate | 1,907 | 9 | 6 | 754 | 8 | 9 | | derivatives | | | | | | | -------------------------------------------------------------------------------- | Foreign exchange | 648 | 6 | 2 | 676 | 7 | 3 | | derivatives | | | | | | | -------------------------------------------------------------------------------- | Equity | 67 | 1 | 0 | 0 | 0 | 0 | | derivatives | | | | | | | -------------------------------------------------------------------------------- | Commodity | 0 | 0 | 0 | 76 | 1 | 1 | | derivatives | | | | | | | -------------------------------------------------------------------------------- | Total derivative | 2,622 | 16 | 9 | 1,506 | 16 | 12 | | assets/(liabilit | | | | | | | | ies) | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Holding | | 6/2007 | | | 12/2006 | | -------------------------------------------------------------------------------- | | | Fair | Fair | | Fair | Fair | | | | value | value | | value | value | -------------------------------------------------------------------------------- | | Contrac | Assets | Liabili | Contract | Assets | Liabili | | | t/ | | ties | / | | ties | | | notiona | | | notional | | | | | l | | | amount | | | | | amount | | | | | | -------------------------------------------------------------------------------- | Derivatives held | | | | | | | | for hedging | | | | | | | -------------------------------------------------------------------------------- | Derivatives | 600 | - | 15 | 628 | - | 12 | | designated as | | | | | | | | fair value | | | | | | | | hedges | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total derivative | 600 | - | 15 | 628 | - | 12 | | assets/(liabilit | | | | | | | | ies) | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 8 INVESTMENTS RELATED TO UNIT-LINKED | | | | INSURANCE | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Life insurance | | | -------------------------------------------------------------------------------- | | 6/2007 | 12/2006 | -------------------------------------------------------------------------------- | Financial assets as at fair value through p/l | | | -------------------------------------------------------------------------------- | Debt securities | 71 | 58 | -------------------------------------------------------------------------------- | Equity securities | 1,951 | 1,695 | -------------------------------------------------------------------------------- | Financial assets as at fair value through p/l | 2,022 | 1,753 | | total | | | -------------------------------------------------------------------------------- | Other | 0 | 0 | -------------------------------------------------------------------------------- | Life insurance, total | 2,022 | 1,753 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 9 LIABILITIES FOR INSURANCE AND INVESTMENT | | | | CONTRACTS | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | P&C insurance | | | -------------------------------------------------------------------------------- | | 6/2007 | 12/2006 | -------------------------------------------------------------------------------- | Insurance contracts | | | -------------------------------------------------------------------------------- | Provision for unearned premiums | 2,153 | 1,640 | -------------------------------------------------------------------------------- | Provision for claims outstanding | 6,782 | 6,606 | -------------------------------------------------------------------------------- | Total insurance liabilities for P&C insurance | 8,935 | 8,247 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Reinsurers' share | | | -------------------------------------------------------------------------------- | Provision for unearned premiums | 125 | 56 | -------------------------------------------------------------------------------- | Provision for claims outstanding | 480 | 465 | -------------------------------------------------------------------------------- | Total reinsurers' share | 605 | 521 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Life insurance | | | -------------------------------------------------------------------------------- | | 6/2007 | 12/2006 | -------------------------------------------------------------------------------- | Insurance contracts | | | -------------------------------------------------------------------------------- | Liabilities for contracts with DPF | | | -------------------------------------------------------------------------------- | Provision for unearned premiums | 2,879 | 2,979 | -------------------------------------------------------------------------------- | Provision for claims outstanding | 1,625 | 1,565 | -------------------------------------------------------------------------------- | Total | 4,505 | 4,544 | -------------------------------------------------------------------------------- | Liabilities for contracts without DPF | | | -------------------------------------------------------------------------------- | Provision for unearned premiums | 6 | 6 | -------------------------------------------------------------------------------- | Provision for claims outstanding | 0 | 0 | -------------------------------------------------------------------------------- | Total | 6 | 6 | -------------------------------------------------------------------------------- | Total | 4,511 | 4,550 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assumed reinsurance | | | -------------------------------------------------------------------------------- | Provision for unearned premiums | 4 | 4 | -------------------------------------------------------------------------------- | Provision for claims outstanding | 2 | 3 | -------------------------------------------------------------------------------- | Total | 6 | 7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Insurance contracts, total | | | -------------------------------------------------------------------------------- | Provision for unearned premiums | 2,889 | 2,989 | -------------------------------------------------------------------------------- | Provision for claims outstanding | 1,628 | 1,568 | -------------------------------------------------------------------------------- | | 4,518 | 4,557 | -------------------------------------------------------------------------------- | Investment contracts | | | -------------------------------------------------------------------------------- | Liabilities for contracts with DPF | | | -------------------------------------------------------------------------------- | Provision for unearned premiums | 110 | 138 | -------------------------------------------------------------------------------- | Investment contracts, total | 110 | 138 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities for insurance and investment | | | | contracts, total | | | -------------------------------------------------------------------------------- | Provision for unearned premiums | 2,999 | 3,127 | -------------------------------------------------------------------------------- | Provision for claims outstanding | 1,628 | 1,568 | -------------------------------------------------------------------------------- | Life insurance, total | 4,627 | 4,695 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Recoverable from reinsurers | | | -------------------------------------------------------------------------------- | Provision for unearned premiums | 1 | 0 | -------------------------------------------------------------------------------- | Provision for claims outstanding | 4 | 4 | -------------------------------------------------------------------------------- | Total | 5 | 4 | -------------------------------------------------------------------------------- Investment contracts do not include a provision for claims outstanding. Liability adequacy test does not give rise to supplementary claims. Exemption allowed in IFRS 4 Insurance contracts has been applied to investment contracts with DPF or contracts with a right to trade-off for an investment contract with DPF. These investment contracts have been valued like insurance contracts. -------------------------------------------------------------------------------- | Group, total | 13,562 | 12,942 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 10 LIABILITIES FROM UNIT-LINKED INSURANCE AND | | | | INVESTMENT CONTRACTS | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Life insurance | 6/2007 | 12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Unit-linked insurance contracts | 1,947 | 1,690 | -------------------------------------------------------------------------------- | Unit-linked investment contracts | 70 | 62 | -------------------------------------------------------------------------------- | Total | 2,017 | 1,752 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 11 FINANCIAL LIABILITIES | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | P&C insurance | 6/2007 | 12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Derivative financial instruments (Note 7) | 112 | 57 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Subordinated debt securities | | | -------------------------------------------------------------------------------- | Subordinated loans | 441 | 441 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | P&C insurance, total | 552 | 499 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Life insurance | 6/2007 | 12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Derivative financial instruments (Note 7) | 9 | 12 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Subordinated debt securities | | | -------------------------------------------------------------------------------- | Subordinated loans | 100 | 100 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Life insurance, total | 109 | 112 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Holding | 6/2007 | 12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Derivative financial instruments (Note 7) | 15 | 12 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Debt securities in issue | | | -------------------------------------------------------------------------------- | Certificates of deposit | 5 | 50 | -------------------------------------------------------------------------------- | Bonds and notes | - | 191 | -------------------------------------------------------------------------------- | Total | 5 | 241 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Subordinated debt securities | | | -------------------------------------------------------------------------------- | Debentures | 583 | 586 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other | | | -------------------------------------------------------------------------------- | Pension loan | - | 85 | -------------------------------------------------------------------------------- | Other | 6 | 6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Holding, total | 610 | 930 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Elimination items between segments | -125 | -146 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Group, total | 1,146 | 1,395 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 12 CONTINGENT LIABILITIES AND COMMITMENTS | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | P&C insurance | | | -------------------------------------------------------------------------------- | | 6/2007 | 12/2006 | -------------------------------------------------------------------------------- | Off-balance sheet items | | | -------------------------------------------------------------------------------- | Guarantees | 42 | 48 | -------------------------------------------------------------------------------- | Other irrevocable commitments | 17 | 19 | -------------------------------------------------------------------------------- | Total | 60 | 67 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other | | | -------------------------------------------------------------------------------- | Assets covered by policyholders' beneficiary | 336 | 326 | | rights | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assets pledged as collateral | | | | | | for liabilities or | | | | | | contingent liabilities | | | | | -------------------------------------------------------------------------------- | | 6/2007 | 6/2007 | 12/2006 | 12/2006 | -------------------------------------------------------------------------------- | Assets pledged as collateral | Assets | Liabilitie | Assets | Liabilities | | | pledged | s/ commit- | pledged | / commit- | | | | ments | | ments | -------------------------------------------------------------------------------- | Cash at balances at central | 18 | 9 | 18 | 9 | | banks | | | | | -------------------------------------------------------------------------------- | Investments | | | | | -------------------------------------------------------------------------------- | - Investment securities | 279 | 111 | 250 | 114 | -------------------------------------------------------------------------------- | Total | 297 | 120 | 268 | 123 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-cancellable operating | 6/2007 | 12/2006 | | leases | | | -------------------------------------------------------------------------------- | Minimum lease payments under | | | | non-cancellable operating | | | | leases | | | -------------------------------------------------------------------------------- | not later than one year | 34 | 33 | -------------------------------------------------------------------------------- | later than one year and not | 89 | 92 | | later than five years | | | -------------------------------------------------------------------------------- | later than five years | 76 | 75 | -------------------------------------------------------------------------------- | Total | 199 | 201 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Life insurance | | | -------------------------------------------------------------------------------- | | 6/2007 | 12/2006 | -------------------------------------------------------------------------------- | Off-balance sheet items | | | -------------------------------------------------------------------------------- | Fund commitments | 251 | 178 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assets pledged as | | | | | | collateral for liabilities | | | | | | or contingent liabilities | | | | | -------------------------------------------------------------------------------- | | 6/2007 | 6/2007 | 12/2006 | 12/2006 | -------------------------------------------------------------------------------- | Assets pledged as | Assets | Liabilities | Assets | Liabilities | | collateral | pledged | / | pledged | / commit- | | | | commitments | | ments | -------------------------------------------------------------------------------- | Investments | | | | | -------------------------------------------------------------------------------- | - Investment securities | 1 | 1 | 4 | 0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 6/2007 | 12/2006 | -------------------------------------------------------------------------------- | Other commitments | | | -------------------------------------------------------------------------------- | Acquisition of IT-software | 1 | 1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-cancellable operating leases | 6/2007 | 12/2006 | -------------------------------------------------------------------------------- | Minimum lease payments under | | | | non-cancellable operating leases | | | -------------------------------------------------------------------------------- | not later than one year | 2 | 2 | -------------------------------------------------------------------------------- | later than one year and not later than | 6 | 6 | | five years | | | -------------------------------------------------------------------------------- | later than five years | 5 | 5 | -------------------------------------------------------------------------------- | Total | 13 | 13 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 13 RESULT ANALYSIS OF P&C INSURANCE | | | | BUSINESS | | | -------------------------------------------------------------------------------- | | 1-6/2007 | 1-6/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Premiums earned | 1,863 | 1,868 | -------------------------------------------------------------------------------- | Claims incurred | -1,395 | -1,390 | -------------------------------------------------------------------------------- | Operating expenses | -320 | -323 | -------------------------------------------------------------------------------- | Other technical income and expenses | 1 | -1 | -------------------------------------------------------------------------------- | Allocated investment return | 95 | 85 | | transferred from the non-technical | | | | account | | | -------------------------------------------------------------------------------- | Technical result | 244 | 239 | -------------------------------------------------------------------------------- | Investment result | 194 | 63 | -------------------------------------------------------------------------------- | Allocated investment return | -123 | -112 | | transferred to the technical account | | | -------------------------------------------------------------------------------- | Other income and expenses | -4 | -4 | -------------------------------------------------------------------------------- | Operating result | 311 | 186 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 14 SAMPO PLC'S INCOME STATEMENT AND | | | | BALANCE SHEET (FAS) | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | INCOME STATEMENT | | | -------------------------------------------------------------------------------- | | 1-6/2007 | 1-6/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other operating income | 7 | 7 | -------------------------------------------------------------------------------- | Staff expenses | -10 | -9 | -------------------------------------------------------------------------------- | Depreciation and impairment | -1 | -4 | -------------------------------------------------------------------------------- | Other operating expenses | -16 | -14 | -------------------------------------------------------------------------------- | Operating profit | -21 | -20 | -------------------------------------------------------------------------------- | Finance income and expenses | 3,753 | 921 | -------------------------------------------------------------------------------- | Profit before appropriations and | 3,732 | 901 | | income taxes | | | -------------------------------------------------------------------------------- | Income taxes | -15 | 7 | -------------------------------------------------------------------------------- | Profit for the financial period | 3,717 | 907 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | BALANCE SHEET | 6/2007 | 12/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | -------------------------------------------------------------------------------- | Non-current assets | | | -------------------------------------------------------------------------------- | Intangible assets | 0 | 23 | -------------------------------------------------------------------------------- | Property, plant and equipment | 5 | 5 | -------------------------------------------------------------------------------- | Investments | | | -------------------------------------------------------------------------------- | Shares and participations in Group | 2,370 | 3,157 | | companies | | | -------------------------------------------------------------------------------- | Other shares and participations | 1,049 | 456 | -------------------------------------------------------------------------------- | Other receivables and investments | 3,583 | 158 | -------------------------------------------------------------------------------- | Receivables | 64 | 94 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 206 | 623 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | TOTAL ASSETS | 7,278 | 4,516 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIABILITIES | | | -------------------------------------------------------------------------------- | Equity | | | -------------------------------------------------------------------------------- | Share capital | 98 | 95 | -------------------------------------------------------------------------------- | Share premium account | 1,160 | 1,157 | -------------------------------------------------------------------------------- | Legal reserve | 366 | 366 | -------------------------------------------------------------------------------- | Fair value reserve | 24 | 20 | -------------------------------------------------------------------------------- | Other reserves | 273 | 273 | -------------------------------------------------------------------------------- | Retained earnings | 892 | 261 | -------------------------------------------------------------------------------- | Treasury shares | - | -73 | -------------------------------------------------------------------------------- | Profit for the year | 3,717 | 1,391 | -------------------------------------------------------------------------------- | Total equity | 6,531 | 3,490 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liabilities | | | -------------------------------------------------------------------------------- | Long-term | 583 | 671 | -------------------------------------------------------------------------------- | Short-term | 164 | 355 | -------------------------------------------------------------------------------- | Total liabilities | 747 | 1,026 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | TOTAL LIABILITIES | 7,278 | 4,516 | -------------------------------------------------------------------------------- www.sampo.com/ir/02q2007/2q2007eng.pdf

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