Sampo Oyj

Earnings Release • May 7, 2024

Summary	3
Group CEO's comment	4
Outlook	5
Outlook for 2024	5
The major risks and uncertainties for the Group in the near-term	5
Financial highlights	6
Business areas	8
If	8
Topdanmark	11
Hastings	12
Holding	13
Financial position	14
Group solvency	14
Financial leverage position	14
Ratings	14
Other developments	15
Shares and shareholders	15
Remuneration	15
Personnel	16
Events after the end of the reporting period	16
Tables 20
Group financial review	20
Calculation of key figures	22
Group quarterly result	25
Statement of profit and other comprehensive income	26
Consolidated balance sheet	27
Statement of changes in equity	28
Statement of cash flows	29
Notes 30
Accounting principles	30
Result by segment for three months ended 31 March 2024	31
Result by segment for three months ended 31 March 2023	32
Balance sheet by segment at 31 March 2024	33
Balance sheet by segment at 31 December 2023	34
Other notes	35
1 Insurance service result	35
2 Net investment income	36
3 Net finance income or expense from insurance contracts	37
4 Other income	37
5 Financial assets	38
6 Insurance contract liabilities	39
7 Financial liabilities	39
8 Discontinued operations	40
9 Contingent liabilities and commitments	40
10 Subsequent events after the balance sheet date	41

7 May 2024

Sampo Group's results for January-March 2024

• Sampo Group achieved top line growth of 10 per cent on a currency adjusted basis, driven by strong development in all business areas
• The underwriting result decreased to EUR 260 million (292) and the combined ratio increased to 87.1 per cent (84.0), as a result of challenging Nordic winter conditions
• The Group underlying combined ratio improved by 1.1 percentage points and the outlook for 2024 was narrowed to 83–85 per cent (below 85)
• Profit before taxes increased to EUR 465 million (359), supported by strong investment returns and slightly higher discount rates
• Operating EPS was broadly stable at EUR 0.50 (0.51) despite the lower underwriting result
• Solvency II coverage stood at 180 per cent (182), pro forma of demerger-related transactions and including dividend accrual, and financial leverage at 24.6 per cent (25.3)

EURm	1–3/2024	1–3/2023	Change, %
Profit before taxes	465	359	29
If	356	337	6
Topdanmark	63	63	—
Hastings	26	10	178
Holding	20	-45	—
Net profit for the equity holders	343	271	27
Operating result	253	262	-3
Underwriting result	260	292	-11
			Change
Earnings per share (EUR)	0.68	0.53	0.15
Operating EPS (EUR)	0.50	0.51	-0.01

Key figures

Net profit for the equity holders and earnings per share for January–March 2023 include result from life operations. The figures in this report have not been audited.

Sampo Group key financial targets for 2024–2026

Target	1-3/2024
Operating EPS growth: over 7% (period average)	-1%
Group combined ratio: below 85%	87.1%
Solvency ratio: 150-190%	180% (pro forma of demerger-related transactions and including dividend accrual)
Financial leverage: below 30%	24.6%

Financial targets for 2024–2026 announced at the Capital Markets Day on 6 March 2024.

Group CEO's comment

Group CEO's comment

The first quarter saw the most severe Nordic winter weather since 2010 and our primary focus has been on helping affected customers. Nonetheless, operational momentum was strong, with 10 per cent currency adjusted premium growth and positive underlying margin momentum. Hence, we have narrowed our combined ratio outlook for 2024 and now expect to land in the 83–85 per cent range.

At our Capital Markets Day on 6 March 2024, we outlined an agenda that puts organic growth at the heart of our ambition to grow operating EPS by more than 7 per cent per annum in 2024–2026. We have made an excellent start on this in the first quarter, with Private and the UK growing premiums by 7 per cent and 25 per cent, respectively, on a currency adjusted basis. Private benefited from investments made in digital and non-motor products, as premiums increased by 14 per cent in personal insurance and 7 per cent in property insurance. In the UK, we continued to see the effect of the significant price increases taken during the second half of 2023 and a rise in customer count, both in motor and home.

First quarter severe weather claims amounted to approximately EUR 100 million in If P&C — the highest level observed since the severe winter of 2010. An extended period of cold weather, heavy snow and icy roads in January and February adversely affected both the motor and property lines, particularly in Private. By geography, Norway and Sweden were most affected, accounting for almost 90 per cent of recorded winter claims, while Denmark was within the normal range. Partly offsetting this, large claims were around EUR 40 million below budget. Although it is clearly too early to draw any firm conclusions, I am encouraged by this as it follows a tightening in risk appetite in Industrial over 2023.

The underlying Group combined ratio improved by 1.1 percentage points year-on-year, driven by positive momentum in all segments except Topdanmark, as claims inflation remained below our prudent pricing assumptions. The adjusted risk ratio in If P&C improved by 0.3 percentage points, ex-discounting, with Private seeing the most positive momentum, and the cost ratio declined on a combination of efficiency gains and solid top line growth. We continue to cover estimated Nordic claims inflation of 4-5 per cent with price increases, even as this appears to be trending toward the lower part of the range.

In the UK, we estimate that market-wide motor claims inflation fell modestly from the 12 per cent observed over most of 2023, while the benefits of the substantial price increases taken over 2023 continued to earn into the P&L. As a result of this, our headline UK operating ratio improved by 2 percentage points to 91.4 per cent, in what is typically the seasonally most challenging quarter. Together with strong premium growth, this enabled Hastings to deliver a 71 per cent increase in underwriting profit year-on-year, adding 5 percentage points to group-level growth. UK motor pricing has stabilised during the first few months of 2024 as the market assesses the impact of the price increases taken in 2023 and shifting claims trends but we continue to be prudent in our own underwriting, as always.

In addition to a delivering on organic growth, we will continue to be disciplined in managing our capital. We are in the process of executing on capital optimisation actions worth up to EUR 700 million, as outlined at our CMD, and will provide an update on capital allocation with our First-Half 2024 results.

Torbjörn Magnusson

Group CEO

Outlook

Outlook Outlook for 2024

Following the first quarter result, Sampo has narrowed its 2024 outlook and now expects to deliver a Group combined ratio of 83–85 per cent. Previously, the outlook for the 2024 Group combined ratio was below 85 per cent, as per the stock exchange release published on 6 March 2024.

Sampo Group's combined ratio is subject to volatility driven by, among other factors, seasonal weather patterns, large claims and prior year development. The net financial result will be significantly influenced by capital markets' developments.

The major risks and uncertainties for the Group in the near-term

In its current day-to-day business activities Sampo Group is exposed to various risks and uncertainties, mainly through its major business units. Major risks affecting the Group companies' profitability and its variation are market, credit, insurance and operational risks. At the Group level, sources of risks are the same, although they are not directly additive due to the effects of diversification.

Uncertainties in the form of major unforeseen events may have an immediate impact on the Group's profitability. The identification of unforeseen events is easier than the estimation of their probabilities, timing, and potential outcomes. Macroeconomic and financial market developments affect Sampo Group primarily through the market risk exposures it carries via its insurance company investment portfolios and insurance liabilities and through strategic investments. Over time, adverse macroeconomic effects could also have an impact on Sampo's operational business, for example by reducing economic growth or increasing claims costs.

Inflation has continued to fall in 2024 with euro-area headline inflation starting to approach the central bank target. The worst of the recent inflation surge seems to be over unless geopolitical events cause new shocks to energy prices. However, the continued strength of Europe's labour market and rapid wage growth could keep price pressures elevated. This creates uncertainty on whether central banks will be keeping interest rates elevated longer than expected. This may lead to both a significant slowdown in economic growth and a deterioration in the debt service capacity of businesses, households and governments, raising the risk of abrupt asset repricing in financial markets. Furthermore, the potential escalation of wars in Ukraine and the Middle East represent a major economic risk. These developments are currently causing significant uncertainties in economic and capital market development. At the same time rapidly evolving hybrid threats create new challenges for states and businesses. There are also a number of widely identified macroeconomic, political and other sources of uncertainty which can, in various ways, affect the financial services industry in a negative manner.

Sampo Group's insurance exposures in Russia or Ukraine are limited to certain Nordic industrial line clients, with coverage subject to war exclusions. On the asset side, Sampo has no material direct investments in Russia or Ukraine. Given the limited direct exposure, the biggest risk from the war in Ukraine to Sampo relates to the second order capital markets' and macroeconomic effects outlined above.

Other sources of uncertainty are unforeseen structural changes in the business environment and already identified trends and potential wide-impact events. These external drivers may have a long-term impact on how Sampo Group's business will be conducted. Examples of identified trends are demographic changes, sustainability issues, and technological developments in areas such as artificial intelligence and digitalisation including threats posed by cybercrime.

Financial highlights

Financial highlights for January–March 2024

The start of the year 2024 brought the most challenging winter conditions seen in the Nordics since 2010, having a material impact on the Group's underwriting result. However, top line growth was strong, supported by all business areas, and underlying margin development remained positive.

Gross written premiums and brokerage income increased by 10 per cent on a currency adjusted basis and by 9 per cent on a reported basis to EUR 3,297 million (3,016). The Nordics saw first quarter currency adjusted growth of 7.6 per cent. Private GWP growth accelerated to 7.2 per cent, driven by high and stable retention of 89 per cent and strong development in personal insurance and property, while motor volumes were subdued due to continued low new car sales. UK top line growth amounted by 21.9 per cent on a local currency basis on the back of policy count growth of 6 per cent and as the large price increases made during the second half of 2023 continued to roll into the portfolio. Commercial benefited from high retention and rate increases at 1 January renewals that drove local currency premium growth to 5.1 per cent. Industrial achieved 13.1 per cent growth in GWP supported by successful 1 January renewals with material price increases but reductions to certain large property exposures led net premiums being broadly stable year-on-year.

The underlying margin trend remained positive as the Group delivered a 1.1 percentage point improvement in the underlying combined ratio, following positive momentum in both the Nordics and the UK. If reported an undiscounted adjusted risk ratio improvement of 0.3 percentage points year-on year. This was achieved by continued disciplined underwriting and pricing exceeding Nordic claims inflation, which remained stable at the lower end of the 4–5 per cent range. The UK business also saw continued positive development as Hastings reported an operating ratio of 91.4 per cent (93.3); combined with strong top line growth, this drove a 71 per cent increase in the underwriting result. UK claims inflation remained elevated but has modestly reduced from the 12 per cent observed over most of 2023.

The solid underlying development was offset by harsh Nordic winter conditions that led to 8.0 percentage points of severe weather effects on If's risk ratio. The negative effect was approximately EUR 100 million on the If's underwriting result, partly offset by large claims being approximately EUR 40 million below budget. As a result, the group underwriting result decreased by 10 per cent on a currency adjusted basis and by 11 per cent to EUR 260 million (292) on a reported basis. The Group combined ratio was 87.1 per cent (84.0). Nonetheless, given the strong momentum in Sampo's business, the Group has narrowed its combined ratio outlook for 2024 to 83–85 per cent (from below 85).

	1-3/2024	1-3/2023	Change
Combined ratio, %	87.1	84.0	3.1
Large claims, %	-2.0	-1.9	-0.1
Severe weather, %	6.0	2.0	4.1
Prior year development, risk adjustment and other technical effects, %	-1.2	-1.6	0.3
Discounting effect, current year, %	-2.9	-2.8	-0.1
Undiscounted underlying combined ratio, current year, %	87.3	88.4	-1.1

Sampo Group underlying combined ratio development for January–March 2024

Large claims measured against budget but severe weather claims are reported in full; negative figures indicate a positive outcome. Severe weather includes natural catastrophes.

Negative figures for prior year development indicate positive reserve run-off. The discounting effect represents the impact of discounting of current year claims reserves on the underlying combined ratio.

The net financial result amounted to EUR 265 million (123), driven by strong investment returns and slightly higher discount rates. Net investment income increased to EUR 295 million (253), supported by strong equity market performance and higher running yields. The Group fixed income running yield stood at 4.0 per cent and mark-tomarket yield at 4.7 per cent at the end of March 2024. Insurance finance income or expense (IFIE) amounted to

EUR -30 million (-130), including a negative effect from unwind of discounting of EUR -59 million (-60) and a positive effect of EUR 34 million (-61) from changes in discount rates.

Operating EPS stood broadly unchanged at EUR 0.50 (0.51). The negative effect from lower underwriting result was partly offset by higher investment returns and capital management actions executed in 2023. Sampo targets more than 7 per cent operating EPS growth on average over 2024–2026.

The Group pro forma Solvency II ratio, adjusted for the demerger-related transactions and including dividend accrual, stood at 180 per cent, down from 182 per cent at the end of 2023. The decrease was mainly driven by an increased SCR due to a higher symmetric adjustment. Financial leverage amounted to 24.6 per cent, down from 25.3 per cent at the end of 2023. Adjusting for the dividend for 2023, financial leverage was 26.8 per cent, down from 27.7 per cent at the 2023 year-end. Sampo targets a solvency ratio of 150–190 per cent and a financial leverage of below 30 per cent.

Sampo Group results for January–March 2024

EURm	If	Topdanmark	Hastings	Holding	Elim.	Sampo Group
GWP & brokerage income	2,095	653	560	—	-11	3,297
Insurance revenue, net (incl. brokerage)	1,290	361	369	—	—	2,020
Claims incurred and claims handling costs, net	-926	-241	-220	—	—	-1,387
Operating expenses	-193	-63	-117	—	—	-373
Underwriting result	171	58	32	—	—	260
Net investment income	213	22	11	50	-2	295
Insurance finance income or expense, net	-25	0	-5	—	—	-30
Net financial result	189	23	6	50	-2	265
Other items	-4	-18	-11	-30	2	-60
Profit before taxes	356	63	26	20	—	465
Net profit for the equity holders						343
Combined ratio, %	86.8	84.0	91.4			87.1

Sampo Group results for January–March 2023

EURm	If	Topdanmark	Hastings	Holding	Elim.	Sampo Group
GWP & brokerage income	1,966	604	445	—	—	3,016
Insurance revenue, net (incl. brokerage)	1,235	318	275	—	—	1,828
Claims incurred and claims handling costs, net	-829	-203	-163	—	—	-1,195
Operating expenses	-189	-58	-94	—	—	-342
Underwriting result	217	57	19	—	—	292
Net investment income	239	26	14	-22	-3	253
Insurance finance income or expense, net	-113	-10	-7	—	—	-130
Net financial result	126	17	6	-22	-3	123
Other items	-6	-10	-15	-23	-1	-56
Profit before taxes	337	63	10	-45	-5	359
Net profit for the equity holders						271
- of which from life operations*						28
Combined ratio, %	82.4	82.2	93.3			84.0

*) Net profit from life operations in January–March 2023 includes Mandatum's result.

Business areas

If

If P&C is the leading property and casualty insurer in the Nordic region, where it offers solutions in all major lines of business through its four business areas; Private, Commercial, Industrial and Baltic. If P&C's business model is based on high customer satisfaction, best in class underwriting and leveraging the scale benefits that its unified Nordic model offers. Excellent digital sales and service capabilities are a core part of If's strategy, particularly in the Private and SME Commercial market segments.

Results

EURm	1–3/2024	1–3/2023	Change, %
Gross written premiums	2,095	1,966	7
Insurance revenue, net	1,290	1,235	4
Claims incurred, net	-854	-759	12
Operating expenses and claims handling costs	-265	-259	2
Insurance service result / underwriting result	171	217	-21
Net investment income	213	239	-11
Insurance finance income or expense, net	-25	-113	-78
Net financial result	189	126	50
Other items	-4	-6	-37
Profit before taxes	356	337	6

Key figures	1–3/2024	1–3/2023	Change
Combined ratio, %	86.8	82.4	4.3
Cost ratio, %	20.6	21.0	-0.4
Risk ratio, %	66.2	61.5	4.7
Large claims	-2.9	-2.8	-0.1
Severe weather	8.0	1.2	6.8
Risk adjustment and other technical effects, current year %	1.8	1.5	0.3
Prior year development, %	-4.2	-2.3	-1.9
Adjusted risk ratio, current year, %	63.5	63.8	-0.3
Discounting effect, current year, %	-3.0	-3.0	-0.1
Undiscounted adjusted risk ratio, current year, %	66.5	66.8	-0.3
Loss ratio, %	71.8	67.1	4.7
Expense ratio, %	14.9	15.3	-0.4

All key figures in the table above are calculated on a net basis. Key ratios are based on SEK figures.

Large claims measured against budget but severe weather claims are reported in full; negative figures indicate a positive outcome. Severe weather includes natural catastrophes.

Negative figures for prior year development indicate positive reserve run-off. The discounting effect represents the impact of discounting of current year claims reserves on the risk ratio.

Underwriting performance

If reported an underwriting result of EUR 171 million (217) and a combined ratio of 86.8 per cent (82.4) for the first quarter of 2024. The result was negatively impacted by a high number of severe weather claims following a significantly harsher winter season than usual and the storm Ingunn, while large claims developed favourably. The underlying margin trend remained positive with an undiscounted adjusted risk ratio improvement of 0.3 percentage points and a cost ratio reduction of 0.4 percentage points year-on-year.

Premium development

If reported gross written premiums, GWP, of EUR 2,095 million (1,966) in January–March 2024. Excluding currency effects, premiums grew by 7.6 per cent year-on-year. All business areas and countries contributed to growth which was mainly driven by repricing that exceeded Nordic claims inflation, falling within the lower end of the 4–5 per cent range. The strong development also benefited from successful 1 January renewals in Industrial and Commercial.

In the first quarter of 2024 Private delivered GWP growth of 7.2 per cent driven by rate increases covering claims inflation. Growth was particularly strong in Norway. The positive development was supported by 14 per cent growth in Personal insurance, and 7 per cent growth in Property insurance. Growth in the Motor segment was dampened by low new car sales volumes and stood at 5 per cent.

Nordic new car sales declined by 10 per cent year-on-year in the first quarter of 2024, with new car sales in If's largest market Sweden down 6 per cent compared to the same period last year. Excluding the Swedish mobility business, currency adjusted GWP growth in the quarter was 8.1 per cent for Private and 8.0 per cent for If.

The retention rate in Private in the first quarter stood at 89 per cent (90) despite rate actions and a general slowdown in the Nordic economies. Private digital sales growth remains strong with an increase of 7 per cent yearon-year.

Currency adjusted GWP growth in Commercial in January–March 2024 was 5.1 per cent driven by robust growth across all countries, notably in Norway. The positive development was supported by successful 1 January renewals, rate adjustments aligned with claims inflation, and high retention. The growth benefited from strong development in personal insurance, while growth in the SME segment stood at 4 per cent. Digital sales increased by 20 per cent year-on-year, driven by an expansion of the digital offering and increased usage of self-service solutions.

The Industrial business saw a strong outcome at the 1 January renewal, driving currency adjusted GWP growth of 13.1 per cent in the first quarter of 2024. Rate increases continued in all countries, with the largest contribution coming from the property segment.

The Baltic business achieved a currency adjusted GWP growth of 8.5 per cent in January–March 2024. All three Baltic countries reported growth driven by both an increase in policy numbers and repricing initiatives to mitigate claims inflation.

Combined ratio development

If reported a combined ratio of 86.8 per cent (82.4) for January–March 2024.

In early 2024, the Nordic countries experienced a notably harsher winter than in previous years, leading to severe weather adding 8.0 percentage points (1.2) to the combined ratio. The increase in weather-related claims was driven by very low temperatures and heavy snowfall. Private was hit the hardest, with severe weather effects split roughly equally between motor and property. Geographically, Norway and Sweden were the most affected countries. The harsh winter was partly offset by large claims being 2.9 percentage points (-2.8) better than budget. If's large claims outcome is reported as a deviation against budget, while severe weather effects are disclosed in full.

Prior year gains increased to 4.2 percentage points (2.3) and the risk adjustment and other technical effects had an impact of 1.8 percentage points (1.5). The discounting effect in the first quarter of 2024 was 3.0 per cent, unchanged compared to the same period last year.

In total, the risk ratio deteriorated by 4.7 percentage points year-on-year to 66.2 per cent (61.5) in the first quarter of 2024. The undiscounted adjusted risk ratio improved by 0.3 percentage points year-on-year.

The cost ratio for January–March 2024 improved by 0.4 percentage points to 20.6 per cent (21.0). The cost ratio development compares favourably to If P&C's target for 2024–2026 of a ~20 basis point yearly cost ratio reduction. Education and development costs are included in the cost ratio.

	Combined ratio, %		Risk ratio, %
	1–3/2024	1–3/2023	Change, %	1–3/2024	1–3/2023	Change, %
Private	89.4	82.1	7.3	69.1	61.2	7.9
Commercial	83.8	83.9	-0.1	62.2	62.1	0.1
Industrial	83.5	81.1	2.4	64.8	62.9	1.9
Baltic	90.3	90.2	0.0	65.2	64.1	1.1
Sweden	89.1	80.5	8.6	70.0	61.5	8.5
Norway	88.2	86.1	2.2	68.3	65.5	2.8
Finland	85.2	78.9	6.3	63.9	57.1	6.8
Denmark	80.2	84.7	-4.6	55.5	59.8	-4.2

Net financial result

For the first quarter of 2024, If reported a net financial result of EUR 189 million (126). The mark-to-market return on investments stood at 1.9 per cent (2.2), driven by increased interest rates and positive development in equity markets.

The investment portfolio has gradually been reinvested at higher rates. At the end of March, fixed income running yield was 4.2 per cent (3.5), unchanged compared to year-end 2023.

The unwind of discounting amounted to EUR -43 million (-45) in the first quarter of 2024. Changes in discount rates had a positive effect of EUR 24 million (-64).

Topdanmark

Topdanmark is one of the largest P&C insurance companies in Denmark. It focuses on the private, agricultural, and SME markets. The company is listed on Nasdaq Copenhagen.

Results

EURm	1–3/2024	1–3/2023	Change, %
Gross written premiums	653	604	8
Insurance revenue, net	361	318	14
Claims incurred and claims handling costs, net	-241	-203	18
Operating expenses	-63	-58	7
Insurance service result / underwriting result	58	57	2
Net investment income	22	26	-15
Insurance finance income or expense, net	0	-10	—
Net financial result	23	17	38
Other items	-18	-10	75
Profit before taxes	63	63	—

Key figures	1–3/2024	1–3/2023	Change
Combined ratio, %	84.0	82.2	1.7
Loss ratio, %	66.7	63.9	2.7
Expense ratio, %	17.3	18.3	-1.0

All key figures in the table above are calculated on a net basis.

Sampo plc held 44.0 million shares in Topdanmark at 31 March 2024. The holding remains unchanged from the end of 2023 and corresponds to an ownership of 48.9 per cent of all shares and 49.6 per cent of all votes. The market value of the holding was EUR 1,741 million at 31 March 2024.

During the first quarter, there was a high frequency of weather-related events and the combined ratio for Topdanmark for January–March 2024 consequently increased to 84.0 per cent from 82.2 per cent in the comparison period. Underwriting result for January–March 2024 increased to EUR 58 million (57), including Oona Health. Topdanmark reported a profit before taxes of EUR 63 million (63) for January–March 2024 in Sampo Group's profit and loss account.

On 23 April 2024, Topdanmark's Annual General Meeting approved the proposed dividend of DKK 11.50 per share, and Sampo consequently received approximately EUR 68 million in dividends from Topdanmark after the AGM.

Further information on Topdanmark A/S and its January–March 2024 result is available at www.topdanmark.com.

Hastings

Hastings is one of the leading digital P&C insurance providers in the UK predominantly focused on serving UK car, van, bike and home insurance customers. Hastings has over 3 million customers and operates via its two main trading subsidiaries, Hastings Insurance Services Limited in the UK and Advantage Insurance Company in Gibraltar.

Results

EURm	1–3/2024	1–3/2023	Change, %
Gross written premiums	467	363	29
Brokerage revenue	93	83	13
Insurance revenue, net (incl. brokerage)	369	275	34
Claims incurred and claims handling costs, net	-220	-163	35
Operating expenses	-117	-94	24
Underwriting result	32	19	71
Net investment income	11	14	-20
Insurance finance income or expense, net	-5	-7	-24
Net financial result	6	6	-14
Other items	-11	-15	-30
Profit before taxes	26	10	178
Key figures	1–3/2024	1–3/2023	Change
Operating ratio, %	91.4	93.3	-1.9
Live customer policies (millions)	3.5	3.3	0.2

All key figures in the table above are calculated on a net basis.

Hastings' gross written premiums increased 25 per cent year-on-year on a constant currency basis to EUR 467 million (363), reflecting rate increases implemented in 2023 and an increase in live customer policies (LCP). Total LCP increased to 3.5 million, up 6 per cent year-on-year, with an increase in motor insurance policy count of 2 per cent. Home insurance policies grew 27 per cent year-on-year.

Estimated UK motor insurance market claims inflation remains elevated but has modestly reduced from the around 12 per cent observed for most of 2023. Claims frequencies were favourable during Q1, reflecting a lower risk mix and the severe weather in the prior year.

Hastings generated an underwriting result of EUR 32 million (19), with the year-on-year increase largely being due to the increase in earned premiums and retail income partially offset by the increase in claims and other operating costs, including acquisition expenses and investment in personnel. Consequently, the operating ratio for the first quarter improved to 91.4 per cent (93.3). The net financial result stood stable at EUR 6 million (6), as a result of the lower discounting impact in 2024.

Hastings' profit before taxes increased to EUR 26 million (10), driven by higher underwriting result. Included within other items is EUR 11 million (14) of non-operational amortisation related to intangible assets identified on acquisition of the Hastings Group by Sampo plc in 2020, without which profit before taxes would have been EUR 37 million (24).

Holding

Sampo plc is the parent company of Sampo Group and responsible for the Group's strategy and capital management activities. In addition to the Group's insurance subsidiaries, a small number of direct investments are held in the holding company.

Results

EURm	1–3/2024	1–3/2023	Change, %
Net investment income	50	-22	—
Other income	—	0	—
Other expenses	-13	-7	76
Finance expenses	-17	-16	9
Profit before taxes	20	-45	—

Holding segment's profit before taxes for the first quarter of 2024 increased to EUR 20 million (-45), mainly as a result of a EUR 41 million increase in the value of the Group's investment in Nexi in the quarter. Conversely, the prior year saw mark-to-market losses on holding company's financial investments.

Financial position

Financial position

Group solvency

Sampo Group's pro forma Solvency II ratio, adjusted for demerger-related transactions and including dividend accrual based on the regular dividend of EUR 1.60 per share for 2023, amounted to 180 per cent at the end of March 2024. The unadjusted, regulatory Solvency II ratio amounted to 180 per cent, or 174 per cent net of dividend accrual. Sampo targets a Solvency II ratio of 150–190 per cent.

The 2 percentage points decrease from the pro forma figure of 182 per cent at the end of 2023 was mainly driven by the increase in the SCR due to a rise in the symmetric adjustment from 1.46 per cent at year end 2023 to 5.25 per cent at the end of the first quarter.

The Group's own funds amounted to EUR 6,201 million and pro forma solvency capital requirement (SCR) to EUR 3,338 million on 31 March 2024.

Financial leverage position

Sampo Group's financial leverage is calculated as Group financial debt divided by the sum of IFRS shareholders' equity and financial debt. The Group targets financial leverage of below 30 per cent.

Sampo Group's shareholders' equity amounted to EUR 7,971 million and financial debt to EUR 2,594 million at the end of March 2024, translating into a financial leverage of 24.6 per cent. The financial leverage improved from 25.3 per cent at the 2023 year-end, driven by first quarter results increasing the shareholders' equity, while financial debt remained broadly unchanged. Adjusting for the dividend of EUR 1.80 per share for 2023, financial leverage was 26.8 per cent, down from 27.7 per cent at the end of 2023.

More information on Sampo Group's outstanding debt issues is available at www.sampo.com/debtfinancing.

Ratings

Relevant ratings for Sampo Group companies remained unchanged during the first quarter. The ratings on 31 March 2024 are presented in the table below.

Rated company	Moody's			Standard & Poor's
	Rating	Outlook	Rating	Outlook
Sampo plc – Issuer Credit Rating	A3	Positive	A	Stable
If P&C Insurance Ltd – Insurance Financial Strength Rating	A1	Positive	AA-	Stable
If P&C Insurance Holding Ltd (publ) - Issuer Credit Rating	-	-	A	Stable

On 25 April 2024, Moody's upgraded Sampo plc's Issuer Credit Rating to A2 with stable outlook and If P&C Insurance Ltd's Insurance Financial Strength Rating to Aa3 with a stable outlook.

Other developments

Shares and shareholders

Sampo's total share count amounted to 501,796,752 shares at the end of March 2024. Sampo made no repurchases of its own shares in the first quarter of 2024.

Further details on the company's share buyback programmes is available at www.sampo.com/sharebuyback.

Share count development

		of which held by
	A shares	the company	B shares	Total
2020	554,151,850		1,200,000	555,351,850
2021	554,151,850	-8,539,956	1,200,000	546,811,894
2022	516,379,512	-2,210,197	200,000	514,369,315
2023	501,596,752		200,000	501,796,752
3/2024	501,596,752		200,000	501,796,752

Repurchased own shares that were not yet cancelled at the end of each reporting period have been deducted from the total share count in the table above.

Sampo did not receive any flagging notifications of change in holding pursuant to Chapter 9, Section 5 of the Securities Markets Act in January–March 2024. The latest notifications are available at www.sampo.com/ flaggings.

Remuneration

A total of EUR 20 million (10), including social costs, was paid as short-term incentives during the first quarter of 2024. In the same period, a total of 1 million (1) was paid as long-term incentives, of which all was paid out in Topdanmark. The long-term incentive schemes in force in Sampo Group produced a negative result impact of EUR 3 million (-6). The terms of the long-term incentive schemes based on financial instruments of Sampo plc are available www.sampo.com/incentiveterms.

In March 2024, Sampo Group published its Remuneration Report for Governing Bodies 2023 at www.sampo.com/ year2023. The report has been prepared in accordance with the Corporate Governance Code 2020, issued by the Securities Market Association and effective from 1 January 2020. The remuneration of the Group Executive Committee members (excluding the Group CEO) are available at www.sampo.com/remuneration\_executive\_committee.

Personnel

Sampo Group's average number of employees (FTE) was 13,874 (13,063) in January–March 2024. On 31 March 2024, the total number of staff was 13,973 (13,166). Compared to the comparison period, first quarter of 2023, the increase of personnel was largest in Hastings and Topdanmark. Hastings is employing contingent workers while the increase in Topdanmark's employee figures is explained by Oona Health personnel.

Sampo Group personnel	Average personnel (FTE)		Average personnel (FTE)
	1–3/2024	%	1–3/2023	%
By company
If	7,942	57	7,735	59
Hastings	3,445	25	3,135	24
Topdanmark	2,428	18	2,140	16
Sampo plc	59	0.4	53	0.4
Total	13,874	100	13,063	100
By country
United Kingdom	3,420	25	3,112	24
Denmark	2,996	22	2,737	21
Sweden	2,461	18	2,427	19
Finland	1,944	14	1,895	15
Norway	1,635	12	1,588	12
Other countries	1,418	10	1,303	10
Total	13,874	100	13,063	100

Events after the end of the reporting period

Annual General Meeting

The Annual General Meeting held on 25 April 2024 decided to distribute a dividend of EUR 1.80 per share for 2023. The dividend was paid to Sampo shareholders on 7 May 2024. The estimated dividend payment date for Sampo SDR holders is 10 May 2024. The Annual General Meeting adopted the financial accounts for 2023 and discharged the Board of Directors and the CEO from liability for the financial year.

The number of Board members remained unchanged at nine members. Christian Clausen, Georg Ehrnrooth, Jannica Fagerholm, Steve Langan, Risto Murto, Antti Mäkinen, Markus Rauramo and Annica Witschard were reelected for a term continuing until the close of the next Annual General Meeting. Astrid Stange was elected as a new member to the Board.

At its organisational meeting, the Board elected Antti Mäkinen as Chair and Jannica Fagerholm as Vice Chair. Christian Clausen, Georg Ehrnrooth, Risto Murto, and Antti Mäkinen (Chair) were elected to the Nomination and Remuneration Committee. Jannica Fagerholm (Chair), Astrid Stange, Steve Langan, Markus Rauramo and Annica Witschard were elected to the Audit Committee.

All the Board members have been determined to be independent of the Company and its major shareholders under the rules of the Finnish Corporate Governance Code 2020. The CVs of the Board members are available at www.sampo.com/board.

The AGM decided on the following annual fees to the members of the Board of Directors until the close of the next Annual General Meeting:

• EUR 235,000 for the Chair of the Board (previously EUR 228,000)
• EUR 135,000 for the Vice Chair of the Board (EUR 131,000)
• EUR 104,000 for each member of the Board (EUR 101,000)
• EUR 29,000 for the Chair of the Audit Committee as an additional annual fee (EUR 28,000)
• EUR 6,600 for each member of the Audit Committee as an additional annual fee (EUR 6,400)

A Board member shall, in accordance with the resolution of the Annual General Meeting, acquire Sampo plc A shares at the price paid in public trading for 50 per cent of his/her annual fee after the deduction of taxes, payments and potential statutory social and pension costs. Notwithstanding this, a Board member is not required to purchase any additional Sampo plc A shares if the Board member owns such amount of said shares that their value is equivalent to twice the respective Board member's gross annual fee. The Company will pay any possible transfer tax related to the acquisition of the shares.

The AGM accepted Sampo plc's Remuneration Report for Governing Bodies. The resolution is advisory.

Deloitte Ltd was re-elected as Auditor of Sampo plc. Jukka Vattulainen, APA, continues act as the principally responsible auditor. Deloitte Ltd will also act as the sustainability reporting assurance provider, with Jukka Vattulainen acting as the principal Authorised Sustainability Auditor. The Company's Auditor and the sustainability reporting assurance provider will be paid compensation against invoices approved by the Company.

The AGM authorised the Board to resolve to repurchase, on one or several occasions, a maximum of 50,000,000 Sampo plc A shares on the condition that the number of own shares held by the Company at any given time may not exceed 10 per cent of all the shares in the Company. If the Board decides on share issue without consideration in proportion to shares owned, the maximum number of shares that may be repurchased will be automatically multiplied by the same ratio without any separate decision. The repurchased shares will be cancelled. The authorisation will be valid until the close of the next Annual General Meeting, however no longer than 18 months from the Annual General Meeting's decision.

The AGM authorised the Board of Directors to resolve upon a share issue without payment in proportion to shares owned by shareholders (share split) in order to enhance share liquidity and accessibility. The Board of Directors can resolve upon the timing and execution of the share issue without payment at its discretion and based on the then prevailing market conditions.

Based on the proposed authorisation, the Board of Directors can resolve to issue new shares to all shareholders without payment in proportion to their holdings so that a maximum of five (5) new A shares would be issued for each current A share and a maximum of five (5) new B shares would be issued for each current B share. Based on the current number of shares, a maximum of 2,507,983,760 new A shares and a maximum of 1,000,000 new B shares could be issued. The share issue without payment would not require any action from the shareholders nor SDR holders. The authorisation is valid until the next Annual General Meeting of Sampo plc, however at the latest until 30 June 2025.

Including proxy representatives, there were altogether 320,218,518 shares (63.8 per cent of shares) and 321,018,518 votes (63.9 per cent of all votes) in the company represented at the Annual General Meeting.

The minutes of the Annual General Meeting will be available for viewing at www.sampo.com/agm and at Sampo plc's head office at Fabianinkatu 27, Helsinki, Finland on 9 May 2024 at the latest.

Group Partial Internal Model

On 2 May 2024, Sampo Group received approval for its Group Partial Internal Model (PIM) from the Swedish FSA (Finansinspektionen). The Group PIM recognises the risk profile of Sampo's P&C operations better than the Standard Formula and as of 31 March 2024 it would have reduced the group-level solvency capital requirement (SCR) by EUR 0.3 billion. Sampo will apply the Group PIM in the second quarter and report its solvency based on this for the first time in its Half-Year Financial Report 2024.

Sale of holding in Saxo Bank

The sale of Sampo's stake in Saxo Bank to Mandatum, as agreed in connection with the demerger, has on 3 May 2024 received final regulatory approvals. The transaction is expected to complete in mid-May.

SAMPO PLC Board of Directors

Further information

Conference call

A conference call for investors and analysts will be arranged at 2:30 pm Finnish time (12:30 pm UK time). Please call tel. +1 786 697 3501, +44 (0) 33 0551 0200, +46 (0) 8 5052 0424, or +358 9 2319 5437.

Conference passcode: Sampo Q1

The conference call can also be followed live at www.sampo.com/result. A recorded version will later be available at the same address.

For more information, please contact

Knut Arne Alsaker, Group CFO, tel. +358 10 516 0010 Sami Taipalus, Head of Investor Relations, tel. +358 10 516 0030 Maria Silander, Communications Manager, Media Relations, tel. +358 10 516 0031

The Investor Presentation and a video review with Group CFO Knut Arne Alsaker are available at www.sampo.com/result.

Sampo will publish the Half-Year Financial Report on 7 August 2024.

Distribution:

Nasdaq Helsinki Nasdaq Stockholm London Stock Exchange FIN-FSA The principal media

www.sampo.com

Group financial review >

Financial highlights		1–3/2024	1–3/2023
Group
Gross written premiums & brokerage income	EURm	3,297	3,016
Insurance revenue, net	EURm	1,989	1,799
Insurance service result, net	EURm	278	298
Underwriting result	EURm	260	292
Net financial result	EURm	265	123
Profit before taxes (P&C operations)	EURm	465	359
Net profit for the equity holders	EURm	343	271
Combined ratio	%	87.1	84.0
Solvency ratio 1 2	%	186	213
Financial leverage	%	24.6	23.7
Return on own funds	%	16.8	18.0
Return on equity	%	14.0	8.6
Average number of staff		13,874	13,063
If
Gross written premiums	EURm	2,095	1,966
Insurance revenue, net	EURm	1,290	1,235
Insurance service result/underwriting result	EURm	171	217
Net financial result	EURm	189	126
Profit before taxes	EURm	356	337
Combined ratio	%	86.8	82.4
Cost ratio	%	20.6	21.0
Risk ratio	%	66.2	61.5
Adjusted risk ratio, current year, % 4	%	63.5	63.8
Undiscounted adjusted risk ratio, current year, % 5	%	66.5	66.8
Loss ratio	%	71.8	67.1
Expense ratio	%	14.9	15.3
Return on equity	%	18.2	22.5
Average number of staff		7,942	7,735
Topdanmark
Gross written premiums	EURm	653	604
Insurance revenue, net	EURm	361	318
Insurance service result/underwriting result	EURm	58	57
Net financial result	EURm	23	17
Profit before taxes	EURm	63	63
Combined ratio	%	84.0	82.2
Loss ratio	%	66.7	63.9
Expense ratio	%	17.3	18.3
Average number of staff		2,428	2,140

> Group financial review

		1–3/2024	1–3/2023
Hastings
GWP & brokerage income	EURm	560	445
Insurance revenue, net	EURm	339	246
Insurance service result, net	EURm	50	25
Underwriting result	EURm	32	19
Net financial result	EURm	6	6
Profit before taxes	EURm	26	10
Operating ratio	%	91.4	93.3
Loss ratio	%	64.9	66.1
Return on equity	%	18.5	10.9
Average number of staff		3,445	3,135
Holding
Profit before taxes	EURm	20	-45
Average number of staff		59	53
Per share key figures
Earnings per share	EUR	0.68	0.53
Earnings per share, continuing operations	EUR	0.68	0.47
Earnings per share, discontinuing operations	EUR	—	0.06
Operating result per share	EUR	0.50	0.51
Equity per share	EUR	14.99	18.91
Net asset value per share	EUR	15.50	20.24
Adjusted share price, high 3	EUR	41.80	45.21
Adjusted share price, low 3	EUR	38.04	36.98
Market capitalisation 3	EURm	19,831	20,207

¹The Group solvency is calculated according to the consolidation method defined in the Solvency II Directive (2009/138/EC).

2 The solvency ratio for Q1/2024 is a pro forma figure excluding the effect of Saxo Bank on the Group SCR.

³Share prices for Q1/2023 have been adjusted to reflect the separation of Mandatum Group in the partial demerger.

4 Adjusted risk ratio illustrates the underlying underwriting performance as it excludes certain volatile effects such as large and severe weather and prior year development on risk ratio.

⁵Undiscounted adjusted risk ratio excludes the effect from current year discounting on adjusted risk ratio and illustrates the underlying current year underwriting performance.

The number of shares used at the reporting date and as the average number during the financial period was 501,796,752.

In calculating the key figures the tax corresponding to the result for the accounting period has been taken into account.

In the net asset value per share, the Group valuation difference on the listed subsidiary Topdanmark has been taken into account.

Calculation of key figures

Return on equity, %

+	total comprehensive income attributable to owners of the parent (annualised)
+	total equity attributable to owners of the parent	x 100 %
	(average of values 1 Jan. and the end of reporting period)
	Return on Own funds, %
+	operating result (annualised)
+	SII own funds
	(average of values 1 Jan. and the end of reporting period)	x 100 %
	Financial leverage
	financial debt	x 100 %
	equity + financial debt
	Insurance revenue, net
+	insurance revenue, gross
-	reinsurers' share of insurance revenue
-	quota share premium expense (Hastings)
	insurance revenue, net
	Underwriting result
+	insurance revenue, net
+	other income (Hastings)
-	claims incurred
-	operating expenses underwriting result
	Operating result
+	P&C operations' (incl. Sampo plc) profit after tax
-	non-controlling interest in P&C operations
-	unrealised gains/losses on investments (excl. derivatives) in P&C operations
-	result effect from changes in discount rates in P&C operations
-	non-operational amortisations in P&C operations
-	non-recurring items
	operating result
	Combined ratio for P&C insurance, %
+	claims incurred
+	operating expenses
+	insurance revenue, net	x 100 %
+	other revenue (Hastings)
	Risk ratio for P&C insurance, %
+	claims incurred
–	claims settlement expenses	x 100 %
	insurance revenue, net

	Cost ratio for P&C insurance, %
+	operating expenses
+	claims settlement expenses
	insurance revenue, net	x 100 %
	Loss ratio for P&C insurance, %
	claims incurred
	insurance revenue, net	x 100 %
	Expense ratio for P&C insurance, %
	operating expenses
	insurance revenue, net	x 100 %
	Operating ratio for Hastings, %
+	claims incurred
+	acquisition costs
+	other operating expenses
+	depreciation and operational amortisation
+	insurance revenue, net	x 100 %
+	other revenue

Per share key figures

Earnings per share

profit for the financial period attributable to owners of the parent

adjusted average number of shares

Operating result per share

operating result

adjusted average number of shares

Equity per share

equity attributable to owners of the parent

adjusted number of shares at the balance sheet date

Net asset value per share

• • equity attributable to owners of the parent
• ^± valuation differences on listed Group companies

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

Exchange rates used in reporting

	1–3/2024	1–12/2023	1–9/2023	1–6/2023	1–3/2023
EURSEK
Income statement (average)	11.2814	11.4745	11.4787	11.3310	11.2050
Balance sheet (at end of period)	11.5250	11.0960	11.5325	11.8055	11.2805
DKKSEK
Income statement (average)	1.5127	1.5406	1.5411	1.5219	1.5052
Balance sheet (at end of period)	1.5453	1.4888	1.5465	1.5852	1.5145
NOKSEK
Income statement (average)	0.9880	1.0048	1.0116	1.0013	1.0194
Balance sheet (at end of period)	0.9851	0.9871	1.0248	1.0087	0.9900
EURDKK
Income statement (average)	7.4562	7.4510	7.4486	7.4464	7.4428
Balance sheet (at end of period)	7.4580	7.4529	7.4571	7.4474	7.4485
EURGBP
Income statement (average)	0.8563	0.8697	0.8707	0.8764	0.8831
Balance sheet (at end of period)	0.8551	0.8691	0.8646	0.8583	0.8792

Group quarterly result

EURm	1–3/2024	10–12/2023	7–9/2023	4–6/2023	1–3/2023
GWP & brokerage income	3,297	1,864	1,909	2,081	3,016
Insurance revenue, net (incl. brokerage)	2,020	1,939	1,911	1,857	1,828
Claims incurred, net	-1,387	-1,282	-1,278	-1,198	-1,195
Operating expenses	-373	-376	-348	-353	-342
Underwriting result	260	281	284	306	292
Net investment income	295	517	127	108	253
Insurance finance income or expense, net	-30	-342	29	-2	-130
Net financial result	265	175	156	106	123
Other items	-60	-88	-50	-50	-56
Profit before taxes	465	368	391	363	359
Income taxes	-96	-88	-79	-81	-91
Profit from the continuing operations	369	280	312	281	268
Discontinued operations, net of tax	—	111	71	41	28
Net profit	369	391	383	323	297
Other comprehensive income
Items reclassifiable to profit or loss
Exchange differences	-87	87	51	-76	-63
Cash flow hedges	1	-2	-1	2	—
Total items reclassifiable to profit or loss, net of tax	-87	85	50	-74	-63
Items not reclassifiable to profit or loss
Actuarial gains and losses from defined pension
plans	3	-25	1	18	-1
Taxes	-1	5	0	-4	0
Total items not reclassifiable to profit or loss,
net of tax	2	-20	1	14	0
Other comprehensive income total, net of tax	-84	65	51	-60	-64
Total comprehensive income	285	457	433	263	233
Profit attributable to
Owners of the parent	343	382	366	304	271
Non-controlling interests	26	9	17	18	26
Total comprehensive income attributable to
Owners of the parent	259	447	417	245	207
Non-controlling interests	26	9	17	18	26

In the comparative year 2023, Mandatum subgroup is presented as discontinued operations in one line. For further information, please see note 8.

Statement of profit and other comprehensive income

EURm	Note	1-3/2024	1-3/2023
Insurance revenue		2,278	2,022
Insurance service expenses		-1,860	-1,626
Reinsurance result		-140	-98
Insurance service result	1	278	298
Net investment income	2	295	253
Net finance income or expense from insurance contracts	3	-30	-130
Insurance finance income or expense, gross		-33	-149
Insurance finance income or expense, reinsurance		4	19
Net financial result		265	123
Other income	4	81	66
Other expenses		-134	-107
Finance expenses		-26	-21
Profit before taxes		465	359
Income taxes		-96	-91
Profit from the continuing operations		369	268
Discontinued operations, net of tax	8	—	28
Net profit		369	297
Other comprehensive income
Items reclassifiable to profit or loss
Exchange differences		-87	-63
Cash flow hedges		1	0
Total items reclassifiable to profit or loss, net of tax		-87	-63
Items not reclassifiable to profit or loss
Actuarial gains and losses from defined pension plans		3	-1
Taxes		-1	0
Total items not reclassifiable to profit or loss, net of tax		2	0
Other comprehensive income total, net of tax		-84	-64
Total comprehensive income		285	233
Profit attributable to
Owners of the parent		343	271
Non-controlling interests		26	26
Total comprehensive income attributable to
Owners of the parent		259	207
Non-controlling interests		26	26
Earnings per share (EPS), EUR		0.68	0.53
Earnings per share, continuing operations, EUR		0.68	0.47

In the comparative period 2023, Mandatum subgroup was segregated from the Group in a partial demerger and is presented as discontinued operations in one line. For further information, please see note 8.

Consolidated balance sheet

EURm Note	3/2024	12/2023
Assets
Property, plant and equipment	308	318
Intangible assets	3,623	3,637
Investments in associates	13	12
Financial assets	5 16,684	15,757
Deferred income tax	3	3
Reinsurance contract assets	2,303	2,282
Other assets	844	800
Cash and cash equivalents	1,481	1,415
Total assets	25,259	24,225
Liabilities
Insurance contract liabilities	6 12,331	11,716
Subordinated debts	7 1,640	1,645
Other financial liabilities	7 1,265	1,269
Deferred income tax	571	567
Other liabilities	1,481	1,342
Total liabilities	17,288	16,538
Equity
Share capital	98	98
Reserves	1,530	1,530
Retained earnings	6,726	6,378
Other components of equity	-830	-743
Equity attributable to owners of the parent	7,524	7,263
Non-controlling interests	447	424
Total equity	7,971	7,687
Total equity and liabilities	25,259	24,225

Statement of changes in equity

EURm	Share capital	Legal reserve	Invested unres tricted equity	Retained earnings1	Transla tion of foreign opera tions	Available for-sale financial assets	Cash flow hedges	Total	Non control ling interest	Total
Equity at 31 December 2022 (IFRS 17)	98	4	1,527	8,482	-741	248	—	9,618	560	10,178
Impact of IFRS 9 transition 1 January 2023	—	—	—	248	—	-248	—	—	—	—
Restated equity at 1 January 2023	98	4	1,527	8,730	-741	0	—	9,618	560	10,178
Changes in equity
Acquisition of own shares	—	—	—	-155	—	—	—	-155	—	-155
Other changes in equity	—	—	—	-2	—	—	—	-2	-2	-4
Profit for the reporting period	—	—	—	271	—	—	—	271	26	297
Other comprehensive income for the period	—	—	—	0	-63	0	—	-64	—	-64
Total comprehensive income	—	—	—	270	-63	0	—	207	26	233
Equity at 31 March 2023	98	4	1,527	8,844	-804	0	—	9,669	583	10,252
Equity at 1 January 2024	98	4	1,527	6,378	-742	—	-1	7,263	424	7,687
Changes in equity
Other changes in equity	—	—	—	2	—	—	—	2	-3	-1
Profit for the reporting period	—	—	—	343	—	—	—	343	26	369
Other comprehensive income for the period	—	—	—	2	-87	—	1	-84	—	-84
Total comprehensive income	—	—	—	346	-87	—	1	259	26	285
Equity at 31 March 2024	98	4	1,527	6,726	-829	—	-1	7,524	447	7,971

1 IAS 19 Pension benefits had a net effect of 2 million (0) on retained earnings.

28

Statement of cash flows

EURm	1–3/2024	1–3/2023
Operating activities
Profit before tax	465	396
Adjustments
Depreciation and amortisation	43	36
Unrealised gains and losses arising from valuation	-136	-196
Realised gains and losses on investments	-6	-119
Change in liabilities for insurance and investment contracts	834	1,095
Other adjustments	-19	188
Adjustments total	715	1,004
Change (+/-) in assets of operating activities
Investments 1	-1,067	-989
Other assets	-50	-87
Total	-1,117	-1,075
Change (+/-) in liabilities of operating activities
Financial liabilities	0	32
Other liabilities	52	-16
Paid taxes	-72	-51
Paid interest	-19	-1
Total	-38	-36
Net cash from (or used in) operating activities	26	288
Investing activities
Net investment in equipment and intangible assets	6	11
Net cash from (or used in) investing activities	6	11
Financing activities
Acquisition of own shares	—	-155
Issue of debt securities	43	62
Repayments of debt securities in issue	-2	-142
Net cash used in (or from) financing activities	41	-234
Total cash flows	73	64
Cash and cash equivalents at the beginning of reporting period	1,415	3,073
Effects of exchange rate changes	-7	-3
Cash and cash equivalents at the end of reporting period	1,481	3,134
Net change in cash and cash equivalents	73	64

1 Investments include investment property and financial assets.

In the comparative year 2023, statement of cash flows includes both continuing and discontinued operations. Profit before tax is therefore the total of Group's profit and the discontinued operations' profit before taxes. Operating activities includes EUR 240 million from the discontinued operations, investing activities EUR 0 million and financing activities EUR -179 million.

The items of the statement of cash flows cannot be directly concluded from the balance sheets due to e.g. exchange rate differences, and acquisitions and disposals of subsidiaries during the period.

Cash and cash equivalents include cash at bank and in hand EUR 1,228 (2,991) and short-term deposits (max 3 months) EUR 252 million (143).

Notes Accounting principles

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 not presented in accordance with IAS 34 standard as Sampo applies the statutes of security markets act (1278/2015), regarding the regular disclosure requirements. The same accounting principles and methods of computation are applied in this financial statement release as were applied in Sampo's consolidated financial statements 2023, with the exception of an addition to the accounting principles described below.

The financial statements 2023 are available on Sampo's website www.sampo.com/year2023.

Information presented in the Interim Statement is unaudited.

Addition to accounting principles

Investment component

During the reporting period, investment components have been identified in reinsurance contracts held for cash flows repaid to a policyholder in all circumstances, i.e. regardless of whether an insured event occurs or not. Identified amounts of investment components are excluded from recognised amounts for reinsurance result in the statement of profit and other comprehensive income.

Accounting principles requiring management judgement and key sources of estimation uncertainties

Application of new or revised IFRSs and interpretations

The Group will apply new or amended standards and interpretations related to the Group's business in the financial years when they become effective, or if the effective date is other than the beginning of the financial year, during the financial year following the effective date. The new IFRSs coming into effect in financial year 2024 will not have any significant influence on the Group's financial reporting.

Pillar II

Sampo Group is within the scope of Pillar II regulations (EU Minimum Tax Directive and OECD Safe Harbour rules). Sampo Group companies have applied a temporary mandatory relief from deferred tax accounting for any potential impacts of the top-up tax and account for it as a current tax should it occur. Sampo Group will, as of fiscal year 2024, be subject to the global minimum top-up tax rules either at the ultimate parent entity level, by Sampo plc in Finland, or domestic top-up tax in the countries where Sampo Group companies operate and where such rules are enacted. At the reporting date, Sampo Group has identified that Hastings' operations in Gibraltar are subject to the global minimum top-up tax rules.

Discontinued operations in 2023

In order to to segregate Mandatum subgroup in the demerger of Sampo plc, Mandatum's assets and liabilities were reclassified as a disposal group held for distribution to owners and related liabilities on 31 March 2023. In the statement of profit and other comprehensive income, the result of Mandatum is reported as a single line item as profit from the discontinued operations. The partial demerger was completed on 1 October 2023 and the first trading day for Mandatum on Nasdaq Helsinki was 2 October 2023. In the demerger, all the shares in Mandatum Holding Ltd (a wholly owned direct subsidiary of Sampo plc) and the related assets and liabilities were transferred without a liquidation procedure to Mandatum plc, a company incorporated in the demerger on the effective date. In addition, EUR 102 million of Sampo's general liabilities, not allocated to any specific business operations, were allocated to Mandatum plc. These liabilities cannot be legally transferred due to their nature, and therefore Sampo and Mandatum agreed on forming an equivalent debt relationship between them on 2 October 2023.

Result by segment for three months ended 31 March 2024

						Sampo
EURm	If	Topdanmark	Hastings	Holding	Elim.	Group
GWP & brokerage income	2,095	653	560	—	-11	3,297
Insurance revenue, net (incl. brokerage)	1,290	361	369	—	0	2,020
Claims incurred, net	-926	-241	-220	—	0	-1,387
Operating expenses	-193	-63	-117	—	0	-373
Underwriting result	171	58	32	—	0	260
Net investment income	213	22	11	50	-2	295
Insurance finance income or expense, net	-25	0	-5	—	—	-30
Net financial result	189	23	6	50	-2	265
Other items	-4	-18	-11	-30	2	-60
Profit before taxes	356	63	26	20	0	465
Income taxes	-74	-17	-5	0	—	-96
Profit after taxes	282	46	22	20	0	369
Other comprehensive income
Items reclassifiable to profit or loss
Exchange differences	-120	-1	34	—	—	-87
Cash flow hedges	—	—	1	—	—	1
Total items reclassifiable to profit or loss, net of tax	-120	-1	34	—	—	-87
Items not reclassifiable to profit or loss
Actuarial gains and losses from defined
pension plans	3	—	—	—	—	3
Taxes	-1	—	—	—	—	-1
Total items not reclassifiable to profit or loss, net of tax	2	—	—	—	—	2
Other comprehensive income, total net of tax						-84
Total comprehensive income	164	45	56	20	0	285
Profit attributable to
Owners of the parent						343
Non-controlling interests						26
Total comprehensive income attributable to
Owners of the parent						259
Non-controlling interests						26

Result by segment for three months ended 31 March 2023

						Sampo
EURm	If	Topdanmark	Hastings	Holding	Elim.	Group
GWP & brokerage income	1,966	604	445	—	—	3,016
Insurance revenue, net (incl. brokerage)	1,235	318	275	—	—	1,828
Claims incurred, net	-829	-203	-163	—	—	-1,195
Operating expenses	-189	-58	-94	—	—	-342
Underwriting result	217	57	19	—	—	292
Net investment income	239	26	14	-22	-3	253
Insurance finance income or expense, net	-113	-10	-7	—	—	-130
Net financial result	126	17	6	-22	-3	123
Other items	-6	-10	-15	-23	-1	-56
Profit before taxes	337	63	10	-45	-5	359
Income taxes	-74	-17	1	0	—	-91
Profit from the continuing operations	262	46	10	-45	-5	268
Discontinued operations, net of tax 1	—	—	—	—	5	28
Net profit						297
Other comprehensive income
Items reclassifiable to profit or loss
Exchange differences	-78	-2	16	—	—	-63
Cash flow hedges	—	—	0	—	—	0
Total items reclassifiable to profit or loss, net
of tax	-78	-2	16	—	—	-63
Items not reclassifiable to profit or loss
Actuarial gains and losses from defined pension plans	-1	—	—	—	—	-1
Taxes	0	—	—	—	—	0
Total items not reclassifiable to profit or loss, net of tax	0	—	—	—	—	0
Other comprehensive income, total net of tax						-64
Total comprehensive income	184	44	26	-45	-5	233
Profit attributable to
Owners of the parent						271
Non-controlling interests						26
Total comprehensive income attributable to
Owners of the parent						207
Non-controlling interests						26

In the comparison year, Mandatum segment has been presented on a single line as discontinued operation, and therefore, Group total by lines do not reconcile to the segment totals.

1 The elimination totalling EUR 5 million is related to intra-segment operations between the reportable segments and discontinued operation.

.

Balance sheet by segment at 31 March 2024

EURm		If Topdanmark	Hastings	Holding	Elim.	Sampo Group
Assets
Property, plant and equipment	167	119	18	4	—	308
Intangible assets	557	1,537	1,527	1	—	3,623
Investments in associates	4	9	—	—	—	13
Financial assets	10,973	2,403	1,622	7,799	-6,112	16,684
Deferred income tax	3	3	—	0	-4	3
Reinsurance contract assets	563	79	1,670	—	-9	2,303
Other assets	578	98	141	27	0	844
Cash and cash equivalents	528	29	382	541	—	1,481
Total assets	13,374	4,277	5,361	8,372	-6,126	25,259
Liabilities
Insurance contract liabilities	7,366	2,123	2,851	—	-9	12,331
Subordinated debts	130	147	—	1,490	-127	1,640
Other financial liabilities	11	88	188	978	—	1,265
Deferred income tax	359	137	74	—	—	571
Other liabilities	1,119	161	130	72	0	1,481
Total liabilities	8,984	2,657	3,243	2,541	-137	17,288
Equity
Share capital						98
Reserves						1,530
Retained earnings						6,726
Other components of equity						-830
Equity attributable to owners of the parent						7,524
Non-controlling interests						447
Total equity						7,971
Total equity and liabilities						25,259

Balance sheet by segment at 31 December 2023

EURm	If	Topdanmark	Hastings	Holding	Elim.	Sampo Group
Assets
Property, plant and equipment	177	117	19	4	—	318
Intangible assets	579	1,545	1,512	1	—	3,637
Investments in associates	4	8	—	—	—	12
Financial assets	10,838	2,060	1,407	7,564	-6,112	15,757
Deferred income tax	4	4	—	0	-4	3
Reinsurance contract assets	563	79	1,640	—	—	2,282
Other assets	553	89	136	23	0	800
Cash and cash equivalents	197	24	448	747	—	1,415
Total assets	12,915	3,926	5,162	8,339	-6,117	24,225
Liabilities
Insurance contract liabilities	7,134	1,855	2,726	—	—	11,716
Subordinated debts	135	148	—	1,490	-127	1,645
Other financial liabilities	58	46	186	979	—	1,269
Deferred income tax	352	139	76	—	—	567
Other liabilities	1,011	162	112	58	0	1,342
Total liabilities	8,689	2,350	3,100	2,527	-128	16,538
Equity
Share capital						98
Reserves						1,530
Retained earnings						6,378
Other components of equity						-743
Equity attributable to owners of the parent						7,263
Non-controlling interests						424
Equity						7,687
Total equity and liabilities						24,225

Other notes 1 Insurance service result

EURm	1-3/2024	1-3/2023
Insurance revenue
Insurance contracts measured under PAA
Gross written premiums	3,204	2,933
Change in liability for remaining coverage	-989	-964
Brokerage revenue	63	53
Total insurance revenue from contracts measured under PAA	2,278	2,022
Total insurance revenue	2,278	2,022
Insurance service expenses
Expenses related to claims incurred
Claims paid and benefits	-1,401	-1,359
Claims handling expenses	-127	-114
Change in liability for incurred claims	17	144
Change in risk adjustment	-27	5
Change in loss component	2	3
Insurance service expenses related to claims incurred	-1,535	-1,320
Operating expenses	-324	-306
Total insurance service expenses	-1,860	-1,626
Reinsurance result
Premiums	-214	-224
Claims recovered	74	125
Total reinsurance result	-140	-98
Total insurance service result	278	298

2 Net investment income

The net investment income consists of investment income and expenses from financial assets and liabilities held by the group companies.

EURm	1-3/2024	1-3/2023
Derivative financial instruments
Interest income	1	0
Interest expense	-1	-2
Net gains or losses	34	21
Derivative financial instruments, total	34	20
Financial assets at fair value through profit or loss
Debt securities
Interest income	123	101
Net gains or losses	-19	62
Equity securities
Dividend income	16	20
Net gains or losses	122	38
Funds
Distributions	1	1
Interest income	2	4
Net gains or losses	35	29
Financial assets at fair value through profit or loss, total	281	255
Financial assets at amortised cost	7	2
Total income or expenses from financial assets	322	277
Other
Expenses from asset management	-5	-4
Other income	10	6
Other expenses	-32	-21
Fee expenses	0	-1
Expenses from investment property	—	-4
Total other	-27	-23
Total net investment income	295	253

The amount of expected credit losses on financial assets measured at amortised cost is presented in the note 5.

3 Net finance income or expense from insurance contracts

EURm	1-3/2024	1-3/2023
Insurance contracts
Unwinding of discount rate	-79	-77
Effect of changes in interest rates and other financial assumptions	45	-72
Total finance income or expenses from insurance contracts	-33	-149
Reinsurance contracts
Unwinding of discount rate	20	17
Reinsurers' share of effect of changes in interest rates and other financial
assumptions	-16	2
Total finance income or expenses from reinsurance contracts	4	19
Net finance result insurance and reinsurance contracts	-30	-130

4 Other income

EURm	1-3/2024	1-3/2023
Other income	79	63
Income related to broker activities (IFRS 15)	3	3
Total other income	81	66

If's other operating income includes approximately EUR 44 million (38) income from insurance operations without a transfer of insurance risk. Such income is primarily attributable i.e. to sales commission and services for administration and claims settlement in insurance contracts on behalf of other parties. This operating income is accounted for under IFRS 15 Revenue from Contracts with Customers. In addition, other operating income includes income from roadside assistance services provided by If's subsidiary Viking Assistance Group AS, recognised when roadside assistance has been provided.

Hastings' operating income includes total of EUR 29 million (28) revenue recognised under IFRS 15 and consisting of fees and commission on panel providers, ancillary product income and other retail income. Income related to broker activities is also accounted for under IFRS 15, if there is no insurance risk transferred to Hastings.

5 Financial assets

EURm	3/2024	12/2023
Financial assets
Derivative financial instruments	50	38
Financial assets at fair value through profit or loss
Debt securities	13,608	12,925
Equity securities	1,647	1,640
Funds	771	662
Deposits and other	105	40
Total financial assets at fair value through profit or loss	16,132	15,267
Financial assets measured at amortised cost
Loans	502	451
Other	1	1
Total financial assets measured at amortised cost	503	452
Total financial assets	16,684	15,757

Loans measured at amortised cost include Hastings' loans to customers amounting to EUR 243 million (EUR 186 million).

The gross carrying amounts of the financial assets measured at amortised cost was EUR 518 million (EUR 468 million) and loss allowance was EUR 17 million (EUR 16 million). During the reporting period, the expected credit losses recognised in the income statement was EUR -1 million and in the comparative quarter EUR -2 million.

6 Insurance contract liabilities

Insurance liabilities reflect the liability the Group has for its insurance undertakings, in other words, the insurance contracts underwritten. The liability consists of two parts, the liability for remaining coverage and acquisition cash flow assets as well as the liability for incurred claims.

The liability for remaining coverage relates to the obligation to investigate and pay valid claims that have not yet occurred. The liability consists of the premium payments received for insurance services to be provided after the closing date, i.e. relating to the unexpired portion of the insurance coverage, and adjusted for acquisition cash flows. The liability for incurred claims relates to the obligation to investigate and pay valid claims that have occurred. The liability is designed to cover anticipated future payments for all claims incurred, including claims not yet reported.

EURm	3/2024	12/2023
Insurance contract liability - contracts measured under PAA
Liability for remaining coverage	2,342	1,709
Liability for incurred claims	9,989	10,007
Total insurance contract liabilities	12,331	11,716

7 Financial liabilities

EURm	3/2024	12/2023
Subordinated debt liabilities
Subordinated loans	1,640	1,645
Total subordinated debt liabilities	1,640	1,645
Other financial liabilities
Derivative financial instruments	72	116
Financial liabilities measured at amortised cost
Debt securities in issue	954	959
Amounts owed to credit institutions	239	194
Total financial liabilities measured at amortised cost	1,193	1,153
Total other financial liabilities	1,265	1,269
Total financial liabilities	2,905	2,914

Hastings has a revolving credit facility with a financial institution totalling EUR 99 million, of which EUR 57 million was undrawn at the end of the reporting period. The revolving credit facility is maturing on 23 November 2024, after which the contract has an extension option of one more year.

Hastings has an undrawn credit facility also with Sampo plc totalling EUR 88 million with a maturity date of 29 October 2026.

8 Discontinued operations

Mandatum Group's business

Mandatum was a wholly-owned direct subsidiary of Sampo plc until 1 October 2023 when it was separated from the Group in the partial demerger of Sampo plc. In the comparative year, Mandatum Group was presented as a discontinued operation, in accordance with IFRS 5 Non-current assets held for sale and discontinued operations, until the demerger.

Result of discontinued operations

EURm	1-3/2023
Insurance revenue	90
Insurance service expenses	-75
Reinsurance result	-1
Insurance service result	13
Net investment result	288
Net finance income or expense from insurance contracts	-143
Net result from investment contracts	-126
Net financial result	19
Other income	7
Other expenses	-1
Finance expenses	-1
Profit before taxes	37
Income taxes	-8
Discontinued operations, net of tax	28

The profit from the discontinued operations for the discontinued operations is attributable entirely to the owners of the parent company. Other comprehensive income did not include any items from the discontinued operations.

9 Contingent liabilities and commitments

Topdanmark Group

In December 2022, Sampo plc´s subsidiary Topdanmark Forsikring A/S sold Topdanmark Liv Holding A/S and all its subsidiaries to Nordea Life Holding AB.

As announced by Topdanmark in the first quarter of 2024, Nordea Group has reserved the right to raise claims against Topdanmark Forsikring A/S for certain potential losses. At present, it is not possible for Topdanmark A/S to determine the size or existence of potential losses, and thus it is not possible to assess whether they would constitute losses which Topdanmark may be held liable for under the signed Share Purchase Agreement (SPA). Based on the currently available facts and arguments brought forward, Topdanmark Forsikring A/S has not acknowledged liability for the claims.

Matters relating to the SPA may result in Topdanmark Forsikring A/S incurring costs that could affect Topdanmark A/S' result for 2024 and/or coming accounting years.

10 Subsequent events after the balance sheet date

Topdanmark Group

On 1 May 2024 Topdanmark announced that Topdanmark Forsikring A/S has entered into an agreement with Nordea regarding the process for completion of the IT separation of Topdanmark Liv Holding A/S (today Nordea Pension Holding Danmark A/S). The IT process has proven to be more comprehensive, complex and time consuming than first anticipated. It is now expected that the IT separation will be completed in the first half of 2025 instead of the second half of 2024 as first anticipated.

The agreement is expected to entail additional costs amounting to a total of approx. DKK 175-195m after tax compared to the already announced expectations. These extraordinary costs are expected to be provisioned for in the accounts for Q2 2024.

At the same time, Topdanmark Forsikring A/S has renewed the agreement with Nordea on the distribution of nonlife insurance products. The existing agreement was about to expire by the end of 2024 and has now been renewed for three years until the end of 2027 at unchanged terms. Furthermore, the agreement includes an option to further extend it by an additional two years.

Sale of holding in Saxo Bank

The sale of Sampo's holding in Saxo Bank to Mandatum, as agreed in connection with the demerger, has on 3 May 2024 received final regulatory approvals. The transaction is expected to complete in mid-May.

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