Annual Report 2010

Sampo Group

3 CEO's Review
4 2010 in Figures
6 Strategy
8 Group Structure
9 Organisation
10 Business Areas
11 P&C Insurance
12 Life Insurance
13 Holding
14 Personnel
17 Corporate Responsibility

CEO's Review: A Year of Successful Decisions

The fact that the globa nancial crisis turned into a sovereign debt crisis presented signi cant challenges to our industry in 2010. However, despite the turbulence, our results proved to be excellent.

2010 was an outstanding year for Sampo. Our P&C insurance's long-term investments in underwriting excellence paid o nd our lead over Nordic competitors grew considerably. Furthermore, we succeeded in assessing the risks properly and our combined ratio fared well despite the di cult weather conditions. And for the seventh successive year, If P&C Insurance exceeded its target of achieving a combined ratio of below 95 per cent. Overall, the company's results for the year were good.

If's customer satisfaction improved in line with expectations and especially those customers who had a claim and consequently had to use the company's claims handling organization were particularly pleased with If's service. In addition, we have correctly anticipated the wishes of our customers, who clearly prefer to settle claims on the Internet. Thanks not least to our online services, already approximately 60 per cent of our Private customers' claims are settled within just 24 hours of submitting a claim.

Increased customer satisfaction can also be seen in the development of the gross written premiums in P&C insurance. The premiums written remained stable during th nancial crisis, while 2010 saw a growth in gross written premiums, which reached an all time high of EUR 4.2 billion.

Nordea Lives up to Expectations

The development during 2010 of Nordea Bank, our associated company, met with our expectations. The company's operating pro t increased by almost 20 per cent and credit losses decreased. In addition, the bank's customer base grew rapidly and customer satisfaction rose to its highest ever level. The company's governance was further improved due to changes in both the top management and the board. All of this was re ected in the company's share price. At the end of December, the market value of our holding in Nordea amounted to EUR 6.8 billion. The valuation di erence of Nordea's shares has already increased signi cantly from the original purchase price of EUR 5.3 billion.

Life insurance operations had major successes as well. As Finland's leading expert in corporate bene ts, Mandatum Life was able to provide enterprises with solutions for retaining employees, and largely speaking, the traditional area of life insurance sales also proceeded well. Furthermore, the Wealth Management Unit of Mandatum Life performed extremely well and experienced strong growth during 2010. Also of signi cance was Sampo Bank, our partner, producing an exceptionally good sales performance and in doing so returning to the pre nancial crisis level. This was an outstanding achievement from Sampo Bank as our main distribution channel for consumers. Thanks to these achievements, Mandatum Life's results rose and premiums written climbed to an all time high and reached a value of over EUR 1.1 billion.

The European Sovereign Debt Crisis Did Not Take Us by Surprise

Our investment decisions proved to be sound: we predicted the globa nancial crisis would be followed by a European public secto scal crisis. Consequently, our investment portfolio does not contain any sovereign debt of the so called PIIGS countries. Moreover, the general weight of sovereign debt in our investment portfolio remains exceptionally low. In addition, we predicted the positive developments of the Scandinavian economies and elected to increase the Nordic equity weight in our portfolio at the right moment.

The success we achieved in 2010 clearly demonstrates that we listen to our customers' needs. To this end, I would like to extend my sincere thanks not only to our customers, but also to all of the parties in our group who have contributed to making so many successful decisions throughout the year. I would also particularly like to express my thanks to the Board and the Chairman of the Board.

Finally, I would like to say a well deserved thank you to all of our shareholders. Our ownership base has grown steadily and at the end of 2010, the number of shareholders had risen to more than 86,000. In my opinion this demonstrates that our owners have placed considerable trust in us to make the correct decisions. I also believe that the owners will welcome the Board's proposal for a dividend of EUR 1.15 per share.

Despite the good year we must be humble as we face future challenges. Our work continues and many new decisions that will need to be made lie ahead of us in 2011.

Kari Stadigh Group CEO and President

2010 in Figures

Key figures, Sampo Group, 2010

EURm	2010	2009	Change, %
Profit before taxes	1,320	825	60
P&C insurance	707	644	10
Associate (Nordea)	523	-	-
Life insurance	142	121	17
Holding (excl. Nordea)	-48	36	-
Profit for the period	1,104	641	72

			Change
Earnings per share, EUR	1.97	1.14	0.83
EPS (incl. change in FVR), EUR	3.22	5.88	-2.66
NAV per share, EUR	17.79	14.63	3.16
Average number of staff (FTE)	6,914	7,311	-397
Group solvency ratio, %	167.1	158.3	8.8

Share Main Facts

All the B shares are held by Kaleva Mutual Insurance Company. B shares can be converted into A shares at the request of the holder.

A Shares		B Shares
Market	Nasdaq OMX Helsinki	ISIN Code	FI0009006613
List	OMXH Large Caps	Number of Shares (unlisted)	1,200,000
Business Sector	Financials	Votes/share	5/share
Listed	01/14/1988
Trading Code	SAMAS (OMX)
Bloomberg	SAMAS FH
Reuters	SAMAS.HE
ISIN Code	FI000903305
Number of Shares	560,172,390
Votes/share	1/share

Strategy

Sampo Group aims to create value for its shareholders. Value is created through efficient and highly profitable operating units and by investments in situations offering significant upside potential with manageable downside risk. Shareholders benefit from the value creation through a high and stable dividend yield.

Sampo Group's business areas are P&C insurance and life insurance under If and Mandatum Life brands, respectively. The Group is also the largest shareholder in Nordea Bank, the leading Nordic banking franchise. On a Group level Sampo has no stated strategy but the business areas have well-defined strategies based on return on equity targets.

	Target	Performance
	RoE 17.5%	RoE 39.8%
Focus on underwriting	Combined ratio < 95%	Combined ratio 92.8%
Sampo plc	Target	,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Performance
Shareholder value creation	Pay-out ratio * > 50%	Pay-out ratio * 58% **
) MANDATUM LIFE	Target	Performance
Focus on unit-linked	RoE 17.5%	RoE 36.2%

If P&C Insurance - Security and Stability

If's mission is to offer attractively priced insurance solutions that provide customers security and stability in their business operations, housing and daily life. The company's vision is to be the leading property and casualty insurance company in the Nordic and Baltic regions with the most satisfied customers, leading edge insurance expertise and superior profitability.

If's strategic goal is to establish better profitability and customer satisfaction in the long run than competitors, coupled with high creditworthiness. The financial targets are to achieve a combined ratio of less than 95 per cent and a return on equity (RoE) of at least 17.5 per cent.

If's long-term priorities to ensure a strong and stable profitability development are based on a sound operating platform, leading cost position, most satisfied customers, leading edge insurance expertise and an investment strategy based on balanced risk. The following four areas constitute the key elements in If's strategic direction:

Customer value If will exceed customer expectations through superior insurance solutions, fast and accurate claims management and sympathetic behavior.
Focused Insurance Expertise If will purposefully strengthen the organisation's skills in developing, pricing and distributing insurance products, as well as in the areas of liability loss prevention and claims management.
Nordic Business Platform If will create competitive advantage through economies of scale and know-how transfer through an integrated Nordic and Baltic platform
Investment Strategy with Balanced Risk If has adopted a low risk strategy in investments by maintaining a balance between insurance commitments and investment assets in terms of currency and duration. Surplus capital is invested to enhance total returns.

Mandatum Life - the leading life insurance provider in Finland and the Baltics

Mandatum Life aims to be the leading life insurance provider in Finland and the Baltics. During the last few years the company has made substantial investments in the development of sales and customer service. Mandatum Life's core product areas will continue to be unitlinked policies, risk products and voluntary corporate pension schemes.

In Finland Mandatum Life relies mainly on three sales channels - in-house corporate sales teams, wealth management focusing on HNWIs and Sampo Bank's network.

The company believes in the increased role of voluntary corporate pension schemes in complementing the statutory pension scheme. In addition it is seen that companies create significant value by covering the person risks of their employees through voluntary insurance covers.

Mandatum Life started its own wealth management and investment solutions activities in 2008. The focus is on wealthy private individuals and institutions.

Sampo Bank's network is Mandatum Life's main channel in the private segment. Sampo Bank's clientele has also got a lot of potential in the corporate customer segment, which is expected to lead to an increase in the sales of life insurance products to corporations. Due to the changes in legislation related to pension insurance Mandatum Life decided a year ago not to continue sales of its pension insurances for private individuals.

The result of Mandatum Life consists of three components - investment result, risk result and expense result. The strategy in investment management is to maintain adequate solvency in relation to market risks in the balance sheet. This enables the company to strive for a return that is higher than the risk free return. In expense and risk result Mandatum Life seeks growth, even if in the short-term the expense result will suffer from the substantial investments in sales channels. Mandatum Life's financial target is to produce a RoE of at least 17.5 per cent.

Dividend Policy

Sampo plc, the listed parent company of Sampo Group, is a good dividend payer. Sampo aims to pay at least 50 per cent of its net profit as dividend. Share buy-backs can be used to complement the dividend. The Board proposes to the AGM a dividend of EUR 1.15 per share for the year 2010. The proposed dividend corresponds to a pay-out ratio of 58 per cent.

Group Structure

Organisation

Business Areas

Sampo Group has two business areas - P&C insurance and life insurance. In addition the parent company Sampo plc owned in February 2011 approximately 21.3 per cent of Nordea Bank AB, the largest bank in the Nordic region. As of 31 December 2009 Nordea has been accounted for as an associated company.

If

If P&C Insurance is the leading property and casualty insurer in the Nordic region, with operations in Finland, Sweden, Norway, Denmark, the Baltic countries and Russia.

Mandatum Life

Mandatum Life, with operations in Finland and the Baltic countries, is responsible for Sampo Group's life insurance operations and offers asset management services under an insurance wrapper.

Sampo plc

The parent company owns and administres the insurance subsidiaries and is the largest shareholder in the leading Nordic bank, Nordea Bank AB, with 21.3 percent of the shares in February 2011.

If P&C Insurance

Year 2010 kicked off with an intense winter in many of the countries where If does business. The year continued with a scorching summer riddled with storms and heavy downpours, and finished off with a few grim months of premature but abundant snowfall.

For If, the dramatic weather meant a flood of insurance claims and the extensive workload that comes with them. The severe cold caused, among other things, water damage to both private residences and businesses, and the extensive snowfall led to traffic accidents both minor and major. The result was a rush of phone calls and emails – and an opportunity for If to show its customers that they had indeed chosen the right insurance company. Surveys conducted among those affected returned very good results – nine out of ten responded that If's handling of their insurance claims was good or very good. To coin the phrase of the marketing campaign If launched in 2010: claims handling the way it should be.

Despite the extra burden of weather-related damages, 2010 was another solid year for If financially. Combined ratio was 92.8 per cent, exceeding the long-term goal and equaling the result in 2009. The technical result was EUR 449 million (EUR 488 million in 2009) and profit before taxes came to EUR 707 million (EUR 644 million).

In addition to the dramatic weather, 2010 was characterised by a number of important deals. In many ways, 2010 was a breakthrough year for If in the health sector, with new initiatives and a series of new accounts. In Denmark, If came to an agreement that resulted in over 100,000 ihi Bupa health insurance customers in the Nordic countries receiving recommendations to transfer their business to If. In the car insurance sector, which is an important part of If's business, the joint venture with Volvo Cars that offers Volvia brand insurance in the Nordic countries was extended by another five-years. Volvia premiums are worth approximately EUR 200 million. Ford and Mazda also extended their five year branded insurance arrangements in the Nordic region. A key business focus in 2010 was the successful implementation of the 2009 partnership agreements with universities in Finland, the Volkswagen Group in Sweden, and Unionen, a Swedish union for white collar workers. It should also be noted that If established a social media presence through Facebook and Twitter accounts over the course of the year. If was the first insurance company in the Nordic countries to release its own application for mobile devices.

Internally, If continued efforts to streamline its operations while continuing to offer customers improved service. If's increasing range of Internet-based services, which have been well received by customers, are an example of this process. In 2010, 25 per cent of insurance claims in the private market were filed over the Internet. The figure was 40 per cent for the corporate market. Another innovation introduced over the course of the year was a new technology that fully automates the processing of various simple claims. For customers, the service literally takes a mere second. For If, it frees up resources for processing more complex claims. In the corporate sector, an entirely new insurance system has been deployed in Norway and other areas. The system is expected to yield significant benefits both by appealing directly to customers and by giving If a competitive edge.

If is continuing its successful efforts towards creating a cleaner environment. If has now joined the UN's Clean Development Mechanism (CDM) program in 2010, and will become climate neutral over the course of 2011. An ambitious environmental awareness program was implemented internally in 2010, covering 100 areas in need of improvement. One of the focus points of the program is unnecessary travel, which has now dropped almost 33 per cent over the past three years. This has been accomplished through a conscious move towards video and web meetings, among other solutions. In fact, video meetings have more than doubled during this period.

Mandatum Life

Mandatum Life's premiums written and balance sheet reached a record high in 2010. The strong growth in premiums written was a result of investments set in motion in 2008, which aimed at strengthening the wealth management and in-house corporate sales organisations, combined with the recovery of Sampo Bank sales to the previous years' level.

Despite the good return on investment activities, the year was a very challenging one in the investment market. Recuperation from the financial crisis that started in 2007 left behind a legacy of concern about the future of the eurozone. The long-term interest rates of AAArated eurozone countries fell during the year and as a consequence Mandatum Life strengthened its balance sheet by supplementing technical provisions to adapt to the low interest rates. The profit was used to raise the company's equity, thus further strengthening its solvency. As far as investment activities are concerned, year 2011 also involves a number of uncertanties. However, the company's strong solvency position together with the increase in technical provisions made possible by the low interest rates creates a good basis for operations in 2011.

In terms of wealth management, Mandatum Life's philosophy of absolute return aroused clients' interest during 2010, proving its viability. The international economy and investment market were unsettled and unpredictable and subject to rapid changes. It was therefore challenging to analyse the situations and draw definite conclusions. In this demanding market situation the investment philosophy of absolute return and active investment operations proved their worth. Coupled with increasingly active wealth management sales this created the foundation for growth in 2010 and helps to create growth expectations for 2011.

In addition to wealth management, corporate sales is another focal area in the development of Mandatum Life's in-house distribution channels. The employer's need to win the commitment of employees and provide incentives for them, combined with the employees' need to prepare for retirement will help to sustain the conditions for growth expectations in the company. There is also an equal need for risk insurance, both for enterprises and for employees, and as a result the company developed its offer of risk insurance products during the year under review.

In corporate business, unit-linked premiums written continued to grow. For both corporate sales and wealth management sales, cooperation between the distribution channels is of primary importance. This cooperation was successfully set in motion during 2010, and it also explains a significant part of the growth in premiums written during the past year. During the year 2010 a record number of pension funds were transferred to life insurance companies. All these transfers are with profit policies with guaranteed interest. As the guaranteed interest rate is relatively high compared to the market interest rates Mandatum Life has not been active in this sector.

A new drive was found in the cooperation between Mandatum Life and Sampo Bank and as a result the premium income generated by the Bank grew strongly in 2010. Especially pleasing, in addition to private customers' business, was the strong recovery of private bank and corporate business. The growth in this sector is based on a common intent and confidence in strategic cooperation between Sampo Bank and Mandatum Life.

In 2010 the Baltic subsidiary changed its name from Sampo Life to Mandatum Life, a move which has further reinforced the principle of "one company, one strategy", while at the same time cooperation with the parent company has become considerably closer. This cooperation was most clearly evident during the year under review in the smooth cooperation between the wealth management service launched in the Baltic countries and the parent company's wealth management operations. Wealth management services played a key role in the growth of Baltic sales.

The company's growth, integration of new operations into the traditional life insurance business and improvement of the quality of customer service calls for new working methods and competencies from the personnel. For this reason a substantial investment has been made in personnel development, with the focus on internal cooperation, improving the quality of customer service and developing leadership. During the year under review, the insurance and claim services were also re-organised, motivated by the aim to improve customer service while giving attention to the needs of each customer segment.

Sampo plc

Sampo plc's A shares have been quoted on the main list of the NASDAQ OMX Helsinki since 1988. The company acts as Sampo Group's parent company with its two main subsidiaries engaged in P&C and life insurance, If P&C and Mandatum Life respectively. In addition Sampo plc held on in February 2011 approximately 21.3 per cent of the share capital of Nordea, the largest bank in the Nordic countries. Nordea is an associated company to Sampo plc.

Sampo plc employed on average 52 persons in 2010. The company coordinates investment operations, capital allocation, risk management, Group accounts, investor relations as well as legal and fiscal matters in the Group.

Sampo plc's holding in Nordea exceeded 20 per cent in late 2009. The year 2010 was the first year when Nordea was accounted as an associated company in Sampo Group's accounts. Nordea's net profit is shown on the face of Sampo Group's profit and loss account on a separate line. Nordea holding's impact on the growth of Group's profit in 2010 was significant.

During 2010 Sampo plc increased its holding in Nordea only marginally by approximately 20 million shares which amounts to an increase of 0.4 per cent in the holding.

In February 2011 Sampo plc bought additional 30 million shares in an auction organized by the Swedish state. This transaction increased Sampo plc´s holding to 21.3 per cent.

Personnel

P&C insurance is Sampo Group's largest business area and in 2010 it employed approximately 92 per cent of the personnel, while life insurance had 7 per cent of the work force. Less than one per cent worked for the parent company, Sampo plc.

The average number of Sampo Group's employees in 2010 amounted to 6,914 (7,311). In geographical terms Finland had 31 per cent of the personnel, Sweden 27 per cent and Norway 22 per cent. The share of Baltic countries, Russia, Denmark and other countries was 20 per cent.

As HR activities and needs vary significantly between the two business areas, the developments in 2010 are described separately for both of them.

P&C insurance

In 2010 emphasis was continuously put on creating a competence based culture focused on the customer and idea creation.

Initiatives'. The aim of the initiative is to forcefully influence the culture of the company to even more emphasize competence building, innovation and customer focus, the pillars of the company's value creation.

To kick start the initiative, 'Skills and Initiatives' was the theme for If's annual top management conference involving If's 170 most senior leaders. In interactive workshops led by the Head of P&C insurance, and several other management team members various aspects of competence and innovation culture were discussed and action plans were formulated.

Several major initiatives have also been launched to support 'Skills and Initiatives':

1. Launching the 'Business Initiatives' process widely across If

For several years, parts of the If organization have run a structured and very ambitious process for involving all employees in idea creation and innovation. The process is called 'Business Initiatives'. As a part of the 'Skills and Initiatives' theme, it has been decided to launch this process widely across the whole company. The launch has been started, and within a few years most If employees will be covered.

2. Training program for senior managers

Recognizing the importance of undivided top management support to achieve success in 'Skills and Initiatives', If has created a management training program for the 100 most senior leaders. The training program is a mandatory 2 -week course hosted by a renowned business school in which the leaders will discuss value building dynamics in a world dominated by intangible assets. The first group of leaders began the course in the latter part of 2010.

3. Increasing focus on 'Skills and Initiatives' in all leader development activities.

Increased emphasis on competence building, innovation and customer focus are also being introduced into the other leadership development activities offered by the in house competence centre - If Academy.

4. Leadership evaluation

To support the efforts on boosting 'Skills and Initiatives', If has also performed two companywide 'bottom up' leader evaluation processes with good results.

5. Digital learning

To further strengthen 'Skills and Initiatives' in light of If's geographical diversification, investments have increasingly been made to IT based learning. This involves eLearning, eTests, eSeminars and solutions for sharing knowledge.

Life insurance

Building Mandatum Life's working culture and focusing on cooperation, customer skills and high quality leadership were the main areas for Mandatum Life's HR policy in 2010.

Mandatum Life restructured its service development and customer service units to better serve the clients and the strategy of the company. Restructuring was done in an open way to demonstrate the culture of transparency and cooperation and to promote career opportunities within the company. All employees were invited to contribute to the company culture building and defining the Mandatum Life leadership qualities in a one-day workshop.

Four new employee development programs were launched targeted at building the core business and leadership skills. The programs continue during 2011, aiming to ensure the development of skills and talent necessary for the company's future.

In 'Great Place to Work' employee satisfaction survey the trust index indicating employee satisfaction rate improved from 70 per cent in 2009 to 73 per cent in 2010. In the latest survey 81 per cent of the employees stated that the company is a great place to work for.

Corporate Responsibility

Sampo Group's companies follow the common values of ethicality, loyalty, transparency and enterprise in their business operations and contacts with all stakeholders. Insurance is a business where responsibility and trust are inherent in daily customer contacts. Social responsibility is high on the agenda in the Group. If P&C, the largest P&C insurer in the Nordic countries, represents 92 per cent of the Group's personnel and is a natural focal point for Corporate responsibility activities in Sampo Group.

If's guiding principle as a company is to contribute to a society where everyone has the opportunity to live a safe and comfortable life. The insurance company is, in fact, one of the most important contributors to our daily sense of security - together with law enforcement, emergency rescue, and other public authorities. In 2010 alone, If processed 1.4 million insurance claims ranging from individual consumers injured on the open road to companies that saw their production facilities go up in smoke. All in all, If paid out close to EUR 3 billion in claims over the past year.

As the leading insurance company in the Nordic region, If takes on a social responsibility heavier than that brought on by business alone. If uses its unique knowledge of risk management to help build a safe environment in the areas where it does business. Its goal is to always act in ways that meet, or preferably exceed, the ethical, legal, and commercial requirements placed upon the company.

As an example, If has taken an intensive interest in environmental issues over the past few years, and all the company's actions are guided by a strict environmental policy. The fundamental thought behind the policy is that If should always seek out the most environmentally viable solution for the company itself, its customers, suppliers and partners. If has joined the UN's Clean Development Mechanism (CDM) program in year 2010, and will become climate neutral over the course of 2011.

The year 2010 saw a long line of concrete actions:

If introduced a selection of environmentally conscious insurance products. Among others, the coverage of damages to the environment has been increased in Finnish home insurance policies; customized insurance for electrically powered cars has been developed in several countries of business; and there is an on-going effort to increase corporate awareness of the need for environmental liability insurance.
An ambitious, company-internal awareness program was implemented. The program contains 100 areas in need of improved environmental awareness. One of these focus points is unnecessary travel, which has now dropped almost 33 per cent over the past three years. This has been accomplished, among other solutions, through a conscious move towards video and web meetings. Video meetings have, in fact, more than doubled during this timeframe.
Since If handles over 300,000 damaged motor vehicles annually, and outsources reparations to housing and commercial facilities to the degree of several million Swedish krona per year, the company is in the position to continue to place climate-friendly demands on its suppliers and their selections of transport, materials, work methods, and emission and waste level control. In 2010, for example, the total amount saved by If's multi-year investment into developing new work methods passed EUR 10 million - auto-repair shops can now fix damaged plastic parts instead of replacing them with new ones.

If has an extensive program for supporting a wide range of safety advances. In Sweden, If is an avid supporter of the Rädda Barnen (Save the Children) organization's work against Internet bullying, and cooperates with both the national Directorate for Civil Protection and Emergency Planning (Direktoratet for samfunnssikkerhet og beredskap) and the Fire Protection Association in Norway (Norsk Brannvernforening). In Finland, the company keeps first graders safe with fluorescent yellow caps that ensure the children stand out in traffic on their way to school.

Additionally, If puts great effort into helping customers prevent accidents on their own. This is done on a smaller scale by offering safetyincreasing products to consumers, and on a larger scale by supporting commercial customers through systematic risk analyses.

Naturally, If also tries to convince politicians and other decision makers to come to sensible and far-sighted decisions. In Sweden, for example, If has alerted zoning officials to the risks of raised water levels in hopes that they will weigh the risks before taking a stand on any new waterfront housing. If's researchers also analyze the company's extensive statistics on motor vehicle accidents with the aim that the information will be used to improve road safety. One of many results of this work is a report on which traffic situations are most dangerous for pedestrians.

Corporate Governance

20 Corporate Governance Statement

21 Board of Directors

24 Board of Directors' Duties
25 Election and Terms of Board Members

26 Board-Appointed Committees

27 Audit Committee
28 Nomination and Compensation Committee

29 Group Executive Committee

33 Group Executive Committee's Duties
34 Group CEO and President
35 Compensation
36 Internal Audit
37 Insider Administration
38 External Auditor

Corporate Governance Statement

Sampo complies in full with the Finnish Corporate Governance Code issued by the Securities Market Association, e ective from 1 October 2010, replacing the earlier Code from 2008.

Acting in compliance with Recommendation 54 of the Corporate Governance Code, Sampo has published a separate Corporate Governance Statement on its website in ful llment of the requirement referred to in the Finnish Securities Markets Act, chapter 2, section 6, subsection 3.

Sampo's Corporate Governance Statement (www.sampo.com/cg)

Board of Directors

Sampo plc's Board of Directors, elected annually by the AGM of Sampo plc, uses the highest decision making power in Sampo Group between the AGMs. Sampo's Board of Directors is responsible for the management of the company in compliance with the law, the regulations of the authorities, Sampo's Articles of Association and the decisions of Shareholders Meetings.

Following persons served on Sampo plc's Board of Directors in 2010:

Björn Wahlroos (born 1952)

Chairman

Positions of Trust:

UPM-Kymmene Corporation, Chairman of the Board; Nordea Bank AB (publ), Vice Chairman of the Board; Hanken School of Economics, Chairman of the Board; Finnish Business and Policy Forum EVA, Member of the Board;

Matti Vuoria (born 1951)

Vice Chairman CEO, President of Varma Mutual Pension Insurance Company

Positions of Trust:

Wärtsilä Corporation, Vice Chairman of the Board; Stora Enso Oyj, Member of the Board; Securities Market Association, Chairman of the Association's Board; Federation of Finnish Financial Services,

Tom Berglund (born 1951)

Professor of Hanken School of Economics

Positions of Trust:

The European Shadow Financial Regulatory Committee, Member; Federal Reserve Bank of Atlanta's Center for Financial Innovation and Financial Stability, Advisory Committee, Member; The Nordic Corporate Governance Network, Chairman

The Research Institute of the Finnish Economy ETLA, Member of the Board

Wahlroos was appointed to the Board of Directors of Sampo plc on 5 April 2001.
Wahlroos holds 11,856,737 Sampo plc shares directly or through a controlled company.

Anne Brunila (born 1957)

Executive Vice President of Fortum Corporation

Positions of Trust:

Board

Kone Corporation, Member of the Board; The Research Institute of the Finnish Economy ETLA, Member of the Board; Finnish Business and Policy Forum EVA, Member of the Board; Aalto University Foundation, Member of the Board; Aalto-yliopistokiinteistöt Oy, Member of the Board; International Chamber of Commerce, Finland, Member of the Board; Finnish Energy Industries, Member of the

• Member of the Board of Directors of Sampo plc since 9 April 2003.

• Brunila holds 6,306 Sampo plc shares directly or through a controlled company.

Member of the Board; The Finnish Pension Alliance TELA, Member of the Board; Finnish-Russian Chamber of Commerce, Chairman

Member of the Board of Directors of Sampo plc since 7 April 2004.
Vuoria holds 32,698 Sampo plc shares directly or through a controlled company.
Member of the Board of Directors of Sampo plc since 25 May 2000.
Berglund holds 6,615 Sampo plc shares directly or through a controlled company.

Veli-Matti Mattila (born 1961)

President and CEO of Elisa Corporation

Positions of Trust:

Central Chamber of Commerce, Member of the Board; The Finnish Fair Association, Member of the Supervisory Board; Confederation of Finnish Industries EK, Member of Representative Assembly

Member of the Board of Directors of Sampo plc since 7 April 2009.
Mattila holds 2,250 Sampo plc shares directly or through a controlled company.

Eira Palin-Lehtinen (born 1950)

Positions of Trust:

Elisa Corporation, Member of the Board; Sigrid Juselius Foundation, Deputy Board Member and Member of Finance Committee; Nordea Funds (Nordea Alternative Investment, Nordea Funds of Funds, Nordea I Sicav), Luxembourg, Member of the Board; Svenska konstsamfundet, Member of

Investment Committee

Member of the Board of Directors of Sampo plc since 15 April 2008.
Palin-Lehtinen holds 4,363 Sampo plc shares directly or through a controlled company.

Jukka Pekkarinen (born 1947)

State Under-Secretary, Economi airs

Positions of Trust:

Economic Council of Finland, Secretary General; Advisory Board to the Government Institute for Economic Research, Chairman

Member of the Board of Directors of Sampo plc since 5 April 2006.
Pekkarinen holds 6,409 Sampo plc shares directly or through a controlled company.

Christo er Taxell (born 1948)

Positions of Trust:

Sti elsen för Åbo Akademi, Chairman of the Board; Finnair plc, Chairman of the Board;

Stockmann plc, Chairman of the Board; Föreningen Konstsamfundet, Chairman of the Board; Society of Swedish Literature in Finland, Member of Investment Committee; Nordkalk Oy Ab, Member of the Board; Luvata Oy, Member of the Board

Taxell was transferred to the Board of Directors of Sampo plc from the Supervisory Board on 1 January 1998.
Taxell holds 7,006 Sampo plc shares directly or through a controlled company.

Following Board members are independent of the company and its major shareholders: Tom Berglund, Veli-Matti Mattila, Eira Palin-Lehtinen, Jukka Pekkarinen and Christo er Taxell.

Information as on 31 December 2010. The entire CVs of members of the Board of Directors can be viewed at www.sampo.com/board.

Board Of Directors' Duties

The operating procedures and main duties of the Board of Directors have been defined in the Board's Charter.

The Board of Directors decides on Sampo Group's business strategy, approves the budget and the principles governing the Group's risk management and internal control, takes responsibility for the proper organisation of the Group's operations, and decides, within the framework of the company's business area, on other exceptional and far-reaching matters with respect to the scope and nature of Sampo Group.

In addition, the Board regularly evaluates its own activities and cooperation with the management.

The Board elects the Group CEO and President, the members of the Group Executive Committee and the Group Chief Audit Executive, and releases them from their duties. The Board also decides on the terms and conditions of their employment and on other compensation. In addition, the Board confirms the Group's staff planning targets and monitors their fulfillment, determines the grounds for the Group's compensation system and decides on other far-reaching matters concerning the staff.

In order to secure the proper running of operations, Sampo's Board of Directors has approved internal rules concerning corporate governance, risk management, internal control and reporting in Sampo Group.

Election and Terms of Office of Board Members

According to Sampo's Articles of Association, the company's Board of Directors comprises no fewer than three and no more than ten members elected by shareholders at the Annual General Meeting.

The Annual General Meeting of 2010 decided that the Board would consist of eight members until the close of the Annual General Meeting to be held in 2011. The term of office of the Board members ends at the close of the Annual General Meeting that first follows their election. The members of the Board elect a Chairman and Vice Chairman from among their members at their first meeting following the Annual General Meeting.

The Board convened 10 times in 2010. The average attendance of Board members at meetings was 98.8 per cent.

Board-Appointed Committees

The Board may appoint committees, executive committees and other permanent or fixedterm bodies for duties assigned by the Board. The Board confirms the Charter of Sampo's committees and Group Executive Committee, and also the guidelines and authorisations given to other bodies appointed by the Board.

The Board has an Audit Committee and a Nomination and Compensation Committee, whose members it appoints from its midst in accordance with the charters of the respective committees.

Audit Committee

The main duties of the Audit Committee have been defined in the Committee's Rules of Procedure approved by the Board of Directors.

The Audit Committee is responsible for monitoring the statutory auditing and reporting process of the financial statements and consolidated financial statements, and for overseeing the veracity of Sampo Group's financial statements and the financial reporting process.

Furthermore, the Audit Committee is responsible for evaluating the auditors' and auditing firm's professional competence and independence and particularly their provision of related services to Sampo Group, and for preparing proposals to the Annual General Meeting concerning the auditors' election and their fees. The Committee also oversees the actions of the auditors under the laws of Finland, monitors the auditors' invoicing for audit and non-audit services as deemed appropriate, monitors the efficiency of the Group's internal control, internal audit and risk management systems, and monitors the Group's risks and the quality and scope of risk management. In addition, the Committee approves the internal audit action plan, monitors the internal audit's reporting, monitors the fulfillment of risk policies, the use of limits and the development of profit in various business areas, oversees the preparation of and compliance with risk management policies and other related guidelines, and reviews the description of the main features of the internal control and risk management systems pertaining to the financial reporting process, which is included in the company's Corporate Governance Statement. The Committee also evaluates the compliance with laws and regulations in Sampo Group and executes any other duties that may be bestowed upon it by the Board.

The Committee comprises at least three members elected from among those Board members who do not hold executive positions in Sampo and are independent of the company. Also participating in the meetings of the Committee are the Responsible Auditor, Group CEO, Group CFO, Group Chief Counsel, Group Chief Audit Executive, the member of the Group Executive Committee responsible for risk control and Group Chief Risk Officer.

In 2010, the Chairman of the Audit Committee was Christoffer Taxell, and the other members were Tom Berglund and Jukka Pekkarinen. Also participating in the meetings were the Auditor's representative, Group CEO, Group CFO, Group Chief Risk Officer, Group Chief Audit Executive, and the Group Chief Counsel, who also served as secretary to the Committee.

The Audit Committee convened four times in 2010, with no absentees.

Nomination and Compensation Committee

The main duties of the Nomination and Compensation Committee have been defined in the Committee's Rules of Procedure approved by the Board of Directors.

The Nomination and Compensation Committee is entrusted to prepare proposals for Sampo's Annual General Meeting on the composition of the Board, the compensation of Board members and the principles on which this compensation is determined. The Committee consults the largest shareholders in these matters.

The Committee is also responsible for preparing proposals for Sampo's Board on the composition and chairmen of the Board's committees, on the appointment of Sampo Group CEO and President and the composition of Sampo Group's Executive Committee, the composition of the Group MD Committee, and on the principles by which the members of the Group Executive Committee are to be compensated and their compensation. As authorised by the Board of Directors, the Committee also decides on the compensation of the members of the Group Executive Committee, excluding the Group CEO and Deputy CEO.

Furthermore, the Committee prepares a proposal for the Board on the appointment, employment conditions and other compensation of Sampo Group's Chief Audit Executive, and on the principles by which Sampo Group's staff are to be compensated. In addition, the Committee is responsible for preparing proposals for the Board on issues relating to the development of good corporate governance and confirming the criteria and processes used for the Board's self-evaluation.

In 2010, the Nomination and Compensation Committee comprised the Chairman of the Board (who acted as the Committee's Chairman), the Vice Chairman of the Board and three members elected from among the members of the Board.

The Chairman of the Nomination and Compensation Committee is Björn Wahlroos, and the other members are Veli-Matti Mattila, Eira Palin-Lehtinen, Matti Vuoria and Christoffer Taxell.

The Committee convened six times in 2010, with no absentees.

Group Executive Committee

The Board of Directors has appointed the Sampo Group Executive Committee and a Group MD Committee to the Group Executive Committee, which supports the Group CEO in preparing matters to be handled by the Group Executive Committee.

The following persons served on the Group Executive Committee in 2010:

Kari Stadigh (born 1955)

Group CEO and President, MD of Sampo plc

Positions of Trust:

Nordea Bank AB (publ), Member of the Board; Alma Media Corporation, Chairman of the Board (2005–2011), Vice Chairman (2001–2005); Confederation of Finnish Industries EK, Vice Chairman (2011–); The Federation of Finnish Financial Services, Member of the Board; Varma Mutual Pension Insurance Company, Member of the Board;

Ilona Ervasti-Vaintola (born 1951)

Group Chief Counsel, Principal Attorney

Positions of Trust:

Fortum Corporation, Member of the Board; Fiskars Corporation, Member of the Board (2004-2010); Central Chamber of Commerce of Finland, Legal Committee, Chairman (2005-2010), Member (2002-2005); Finnish Literature Society, Board Member

Line Hestvik (born 1969)

Head of Business Area Private, If P&C Insurance

Positions of Trust:

FNH (the organisation for the Financial Sector in Norway), Member of the Board

• Member of Sampo Group Executive Committee since 2005.

If P&C Insurance Holding Ltd (publ), Sweden, Chairman of the Board; Mandatum Life Insurance Company Limited, Chairman of the Board; Kaleva Mutual Insurance Company, Chairman of the Board

Member of Sampo Group Executive Committee since 2001.
Stadigh holds 244,589 Sampo plc shares directly or through controlled companies.
Member of Sampo Group Executive Committee and Secretary of the Board of Directors of Sampo plc since 2001.
Ervasti-Vaintola holds 283,151 Sampo plc shares directly or through controlled companies.
Hestvik holds 19,844 Sampo plc shares directly or through controlled companies.

Peter Johansson (born 1957)

Group CFO

Positions of Trust:

If P&C Insurance Holding Ltd, Sweden, Member of the Board; Mandatum Life Insurance Company Limited, Vice Chairman of the Board

Member of Sampo Group Executive Committee since 2001.
Johansson holds 50,388 Sampo plc shares directly or through controlled companies.

Patrick Lapveteläinen (born 1966)

Group CIO

Positions of Trust:

If P&C Insurance Holding Ltd, Sweden, Member of the Board; Mandatum Life Insurance Company Limited, Member of the Board

Member of Sampo Group Executive Committee since 2001.
Lapveteläinen holds 229,129 Sampo plc shares directly or through controlled companies or persons closely associated with the Insider.

Torbjörn Magnusson (born 1963)

Managing Director of If P&C Insurance Holding Ltd

Positions of Trust:

If P&C Insurance Ltd, Sweden, Chairman of the Board; If P&C Insurance Company Ltd, Finland, Chairman of the Board; Swedish Insurance Federation, Member; Swedish Insurance Employer Association, Member

Member of Sampo Group Executive Committee since 2004.
Magnusson holds 30,167 Sampo plc shares directly or through controlled companies.

Ivar Martinsen (born 1961)

Head of Business Area Commercial, If P&C Insurance

Positions of Trust:

FNH (the organisation for the Financial Sector in Norway), Executive Committee of P&C Insurance, Chairman

Member of Sampo Group Executive Committee since 2005.
Martinsen holds 18,563 Sampo plc shares directly or through controlled companies.

Petri Niemisvirta (born 1970)

Managing Director of Mandatum Life Insurance Company Limited

Positions of Trust:

Amanda Capital Plc, Member of the Board; Federation of Finnish Financial Services, Life Insurance Executive Committee, Chairman (2007-2010), Member (2011-); Silta Oy, Member of the Board; BenCo Insurance Holding B.V., Netherlands, Member of the Board; Euroben Life and Pension Limited, Ireland, Member of the Board

Member of Sampo Group Executive Committee since 2001.
Niemisvirta holds 43,455 Sampo plc shares directly or through controlled companies.

Morten Thorsrud (born 1971)

Head of Business Area Industrial, If P&C Insurance

Positions of Trust:

Forsikring & Pension, Denmark, Member of the Board; CJSC If Insurance, Russia, Member of the Board; IPSC Region, Russia, Member of the Board

Member of Sampo Group Executive Committee since 2006.
Thorsrud holds 15,525 Sampo plc shares directly or through controlled companies.

Timo Vuorinen (born 1964)

Head of Business Area Baltic and Russia, If P&C Insurance; Managing Director of If P&C Insurance Company Ltd

Positions of Trust:

CJSC If Insurance, Russia, Chairman of the Board; IPSC Region, Russia, Chairman of the Board The Finnish Center for Salvaged Vehicles, Member of the Board; If P&C Insurance AS, Estonia, Chairman of the Board;

Member of Sampo Group Executive Committee since 2009.
Vuorinen holds 7,176 Sampo plc shares directly or through controlled companies or persons closely associated with the Insider.

Ricard Wennerklint (born 1969)

Deputy MD, If P&C Insurance Holding Ltd

Positions of Trust:

IPSC Region, Russia, Member of the Board; SOS International a/s, Denmark, Member of the Board If P&C Insurance Company Ltd, Finland, Member of the Board; If P&C Insurance AS, Estonia, Member of the Board; CJSC If Insurance, Russia, Member of the Board;

Member of Sampo Group Executive Committee since 2005.
Wennerklint holds 18,362 Sampo plc shares directly or through controlled companies.

Personal information as on 31 December 2010. The entire CVs of the members of Sampo Group Executive Committee can be viewed at www.sampo.com/management.

Group Executive Committee's Duties

Sampo Group Executive Committee supports the Group CEO in the preparation of strategic issues relating to Sampo Group, in the handling of operative matters that are significant or involve questions of principle, and in ensuring a good internal flow of information.

The Group Executive Committee addresses especially the following: Sampo Group's strategy, profit development, large purchases and projects, the Group's structure and organisation, as well as key strategic issues pertaining to administration and personnel.

The Group MD Committee comprised Kari Stadigh (Chairman), Ilona Ervasti-Vaintola, Peter Johansson, Patrick Lapveteläinen, Torbjörn Magnusson, Petri Niemisvirta and Ricard Wennerklint.

In 2010, the Group Executive Committee convened five times at the request of Group CEO and President. The Group MD Committee, which assists the Group Executive Committee, met 13 times.

Group CEO and President

The company has a Managing Director who is simultaneously Group CEO and President of Sampo Group.

The Board of Directors elects and releases the Group CEO, and decides on the terms of employment and other compensation. The Managing Director of the company and the Group CEO and President of Sampo Group is Mr. Kari Stadigh, M.Sc. (Eng.), BBA (Econ.).

The Group CEO is in charge of the daily management of Sampo, subject to the instructions and control of the Board of Directors. The Group CEO is empowered to take extraordinary and broad-ranging actions, taking into account the scope and nature of Sampo's operations, only upon authorisation by the Board of Directors. The Group CEO ensures the legal compliance of Sampo's accounting and the trustworthy organisation of asset management.

Under the terms of the Group CEO contract, the notice period for the Group CEO is six months. In addition to receiving salary for the period of notice, the Group CEO is entitled to severance compensation of 18 months' full salary, provided that the service contract has been terminated by Sampo.

Compensation

Sampo aims to o er a competitive compensation package both for the management and other employees. Compensation is also a signi cant factor when Sampo competes on competent employees. Sampo's compensation strategy is responsible both towards the employees and the shareholders and, consequently, long-ter nancial stability together with Sampo Group's value development guides the design of compensation schemes.

Salary and Remuneration Report

Sampo has published a Salary and remuneration report on its website in accordance with section 7 (Remuneration) of the Corporate Governance Code at www.sampo.com/compensation .

Compensation of the Members of the Board of Directors

According to Sampo's Articles of Association, the Annual General Meeting decides on the compensation of the members of the Board of Directors.

In accordance with the decision of the Annual General Meeting in 2010, the following annual fees will be paid to the members of the Board of Directors for their Board and committee work up to the close of the Annual General Meeting in 2011: EUR 160,000 to the Chairman, EUR 100,000 to the Vice Chairman, and EUR 80,000 to the other members of the Board, with 50 per cent of each Board member's fee being paid, a er taxes and corresponding charges, in Sampo A shares and the rest in cash. Board members employed by the company will not receive separate compensation for Board work during the validity of the employment or service relationship.

Members of the Board of Directors have not received any other bene ts, nor do they participate in Sampo's incentive systems.

Compensation of the Managing Director and Other Executives

The Board of Directors decides on the terms of employment and compensation of the Group CEO and other executives on the Sampo Group Executive Committee, on the basis of a proposal by the Nomination and Compensation Committee. However, the Nomination and Compensation Committee can decide, upon authorisation by the Board of Directors, on the salaries of the members of the Group Executive Committee, excluding the Group CEO and Deputy CEO.

Principles of the Compensation System

In addition to receiving monthly salaries, executives who are members of the Group Executive Committee are participants in the Group's short-term variable compensation system which is decided upon separately each year. The short-term variable compensation is determined on the basis of the Group result, the business area result and individual performance. The maximum amount that can be paid for 2010 to members of the Executive Committee is an amount corresponding to nine month xed salary.

The members of the Group Executive Committee are also participants in the long-term incentive systems 2008 II and 2009 I for Sampo's management and in the long-term share-based incentive scheme 'Sampo 2006' for the Group's key management (scheme 'Sampo 2006' expired during 2010). The terms of the incentive systems are available on Sampo's website at www.sampo.com/compensation .

Based on his employment contract, the Group CEO will be pai xed monthly salary and a yearly short-term variable compensation, which may be no more than an amount corresponding to nine month xed salary. The Group CEO is also a participant in the long term incentive system 2009 I for Sampo's management and in the long-term share-based incentive scheme 'Sampo 2006' for the Group's key management.

Mr. Kari Stadigh is Sampo Group's CEO. For year 2010 the Group CEO was paid EUR 667,412 i xed salary and EUR 400,000 in short term variable compensation and EUR 1,295,863 in long-term variable compensation, together totalling EUR 2,363,275.

The members of the Group Executive Committee are each covered by the employment pension system of their country of residence. Under the terms of their employment contracts, the majority of them are also covered by supplementary pension schemes. The retirement age for the Committee's members as set out in their contracts is 60, 65 or the age laid down in the employment pension system of their country of residence.

More detailed information on compensation in Sampo Group during 2010 is available at the Salary and remuneration report published by Sampo.

Internal Audit

Sampo's Internal Audit is a function independent of business operations which evaluates the sufficiency and effectiveness of the internal control system and the quality with which tasks are performed in Sampo Group. The Internal Audit reports to the Group CEO. The Internal Audit has been organised to correspond with the business organisation.

The Audit Committee of Sampo's Board of Directors annually approves the Internal Audit's operating plan. The Internal Audit reports on the audits performed to the Group CEO and the Audit Committee. Company-specific audit observations are reported to the respective companies' governing bodies and management.

In its auditing work, the Internal Audit complies with, in addition to the Internal Audit Charter approved by Sampo's Board of Directors, the international professional standards approved by the IIA (the Institute of Internal Auditors).

Insider Administration

Given the nature of Sampo's business areas, especially bearing in mind their extensive investment activities, Sampo's Board of Directors has approved a separate Group Guideline for Insiders. These comply, as required by the Corporate Governance Code, with NASDAQ OMX Helsinki Ltd's Guidelines for Insiders and the Standards of the Financial Supervisory Authority.

Sampo Group's Guidelines for Insiders are stricter than the above-mentioned norms on matters that concern the Group Executive Committee, other corporate executives and other speci cally named persons, as these persons must obtain a separate written permission in advance for each share related securities transaction they make.

Sampo plc's insider guidelines and register may be viewed on Sampo's website.

Sampo plc's insider register (www.sampo.com/insiders)

External Auditor

Ernst & Young Oy Authorised Public Accountant

Responsible auditor Heikki Ilkka, APA

The total fees paid to the auditor for services rendered and invoiced were EUR 2,206,734. In addition, Ernst & Young Oy were paid fees for non-audit services rendered and invoiced totalling EUR 196,862.

Board of Director's Report

40 42	Sampo Group in 2010 Business Areas in 2010
43 45	P&C Insurance in 2010 Life Insurance in 2010	47 48	Associated Company Nordea Bank Ab Holding in 2010
49 50	Changes in Group Structure Administration
51 52 53	Annual General Meeting Governance in 2010 Corporate Responsibility in 2010	54 55 56	Personnel in 2010 Management Incentive Schemes Risk Management in 2010
57	Shares, Share Capital and Shareholders
58 59	Shares and Share Capital Authorizations Granted to the Board	60	Shareholders
64	Financial Standing
65 66	Internal Dividends Ratings	67 68	Group Solvency Debt Financing
69 70 71 72 73 76	Events the End of the Reporting Year Outlook for 2011 The Most Risks to Operations Dividend Proposal Key Figures 2010 Calculation of the Key Figures
77 79	Group Key Figures P&C Insurance Key Figures	81 82	Life Insurance Key Figures Per Share Key Figures

Sampo Group in 2010

Sampo Group's pro t before taxes for 2010 grew strongly and amounted to EUR 1,320 million (825). Total comprehensive income for the period, taking changes in the market value of assets into account, was EUR 1,807 million (3,423).

Earnings per share rose to EUR 1.97 (1.14). Mark-to-market earnings per share were EUR 3.22 (5.88) and return on equity for the Group was 21.8 per cent for 2010 (55.7).

The Board proposes to the Annual General Meeting to be held on 14 April 2011 a dividend of EUR 1.15 per share (1.00) and an authorization to repurchase a maximum of 50 million Sampo A shares.

Net asset value per share increased by more than EUR 3 during 2010 and on 31 December 2010 amounted to EUR 17.79 (14.63). Fair value reserve on the Group level increased to EUR 736 million (296).

If P&C, Sampo Group's P&C insurance operation, sustained a high insurance technical pro tability in 2010 despite the di cult winter. Combined ratio was 92.8 per cent for the full year 2010 (92.1). Pro t before taxes rose to EUR 707 million (644). Return on equity was 39.8 per cent (53.2) and fair value reserve increased to EUR 315 million (105).

Sampo's share of Nordea's net pro t amounted to EUR 523 million. Year 2010 was th rst year when Nordea was accounted for as an associated company. In segment reporting the share of Nordea's pro t is included in the segment 'Holding'.

Pro t before taxes for Mandatum Life, Sampo Group's life insurance operation, increased to EUR 142 million (121). Fair value reserve increased to EUR 436 million as at 31 December 2010 (210). Return on equity was 36.2 per cent (97.6). Premiums grew almost 40 per cent and exceeded one billion euro for th rst time ever.

Sampo Group's total investment assets at the end of 2010 amounted to EUR 18.3 billion (16), of which 78 per cent was invested i xed income instruments (82), 18 per cent in equities (14) and 4 per cent in other assets (3). Reported investment income amounted to EUR 1,183 million (1,155).

The Group's equity as at 31 December 2010 amounted to EUR 8,886 million (7,613). Equity was strengthened mainly by the pro t for the year of EUR 1,104 million and change in the fair value reserve of EUR 447 million. The largest reduction was the dividends of EUR 561 million.

Sampo Group's own funds exceeded the minimum solvency requirements at the end of 2010 by EUR 3,038 million (2,315) and solvency ratio stood at 167.1 per cent (158.3).

Results, Sampo Group, 2010

EURm	2010	2009	Change %
Pro t before taxes	1,320	825	60
P&C insurance	707	644	10
Associate (Nordea)	523	-	-
Life insurance	142	121	17
Holding (excl. Nordea)	-48	36	-
Pro t for the period	1,104	641	72
			Change
Earnings per share, EUR	1.97	1.14	0.83
EPS (incl. change in FVR), EUR	3.22	5.88	-2.66
NAV per share, EUR	17.79	14.63	3.16
Average number of sta TE)	6,914	7,311	-397
Group solvency ratio, %	167.1	158.3	8.8
RoE, %	21.8	55.7	-33.9

Business Areas in 2010

If P&C is the leading property and casualty insurance company in the Nordic region, with insurance operations that also encompass the Baltic countries and Russia.

Mandatum Life Group consists of Mandatum Life, a wholly-owned subsidiary of Sampo plc, operating in Finland, and its subsidiary Mandatum Life Insurance Baltic SE, which has the form of a European company and is headquartered in Estonia.

Sampo plc controls its subsidiaries engaged in P&C and life insurance.

In addition, on 31 December 2010 Sampo plc held 830,440,497 Nordea shares corresponding to a holding of 20.5 per cent.

P&C Insurance in 2010

If P&C is the leading property and casualty insurance company in the Nordic region, with insurance operations that also encompass the Baltic countries and Russia. The P&C insurance group's parent company, If P&C Insurance Holding Ltd, is domiciled in Sweden, and the If subsidiaries provide insurance solutions and services in Finland, Sweden, Norway, Denmark, the Baltic countries and Russia. If's operations are divided into four business areas: Private, Commercial, Industrial and Baltic & Russia.

EURm	2010	2009	Change %
Premiums, net	3,985	3,677	8
Net income from investments	487	394	24
Other operating income	25	23	9
Claims incurred	-2,689	-2,477	9
Change in insurance liabilities	-91	-33	176
Staff costs	-479	-470	2
Other expenses	-501	-439	14
Finance costs	-29	-30	-4
Profit (loss) before taxes	707	644	10
	2010	2009	Change
Combined ratio, %	92.8	92.1	0.7
Risk ratio, %	69.1	68.0	1.1
Cost ratio, %	23.7	24.1	-0.4
Expense ratio, %	17.2	17.6	-0.4
Return on equity, %	39.8	53.2	-13.4
Average number of staff (FTE)	6,392	6,807	-415

Results, P&C Insurance, 2010

Year 2010 was characterized by exceptional weather conditions in most of the countries where If operates: extreme winter, scorching summer riddled with storms and heavy downpours, and in the fourth quarter weeks of premature but abundant snowfall.

Another exceptional development in 2010 reflected in consolidated P&C insurance result is the significant strengthening of Swedish krona.

Despite the challenging weather conditions, profit before taxes for P&C insurance for the year 2010 rose 10 per cent to EUR 707 million (644) and combined ratio was again on a stable level in 2010 at 92.8 per cent (92.1) being clearly better than the long-term target of below 95 per cent.

Technical result was EUR 449 million (488), of which the Private business area accounted for 53 per cent, Commercial 28 per cent, Industrial 15 per cent and Baltic and Russia 3 per cent.

Insurance margin (technical result in relation to net premiums earned) decreased from the previous year to 11.5 per cent (13.4). Return on equity (RoE) remained good and was 39.8 per cent (53.2) while the fair value reserve increased to EUR 315 million (105).

In business area Private risk ratio increased to 68.9 per cent (68.0) affected by the exceptional weather conditions. Helped by the improved cost ratio, combined ratio increased slightly to 93.0 (92.5). Also in Commercial cost ratio improved compared to last year but the weakened risk ratio of 69.8 per cent (68.3) drove the combined ratio slightly up to 93.5 per cent (92.6).

In business area Industrial combined ratio improved to 90.6 per cent (90.7) helped by the favorable development in nominal costs. Risk ratio was at previous year's level at 71.9 percent (71.6). In Baltic and Russia both risk ratio and combined ratio increased compared to previous year, and were 56.4 per cent (55.7) and 93.4 per cent (91.7), respectively.

Risk ratio weakened due to extraordinary weather conditions during year 2010 in all countries excluding Sweden, where despite the severe winter both risk ratio and combined ratio improved to 70.2 per cent (72.4) and 93.3 per cent (95.2), respectively. In Norway risk ratio increased to 69.6 per cent (68.8) but due to improved cost ratio in all business areas, combined ratio was at previous year's level at 92.1 per cent (92.0). Also in Finland cost ratio improved in all business areas, but the increase in risk ratio to 67.0 per cent (64.0) lead to a higher combined ratio of 90.4 per cent (88.5). In Denmark risk ratio increased to 72.8 per cent (66.1) and combined ratio to 101.4 per cent (93.7).

Gross written premiums increased 8 per cent to EUR 4,189 million (3,888). Adjusted for currency, premiums increased 1.3 per cent.

Cost ratio improved by 0.4 percentage points to 23.7 per cent compared to a year earlier as a result of continuous efforts put on streamlining the operations. The amount of total costs increased to EUR 1,009 million (939), mainly due to the strengthening of the Swedish krona.

Other operating expenses increased EUR 25 million due to dissolving the collective guarantee provision in the Finnish workers' compensation insurance.

Claims incurred increased to EUR 2,689 million (2,477) and risk ratio deteriorated to 69.1 per cent (68.0), affected by the weather. EUR 113 million (87) was released from technical reserves, which related to prior year claims. Reserve ratio was 173 per cent (172) of net premiums written and 236 per cent (240) of claims paid.

Investment market remained positive during the year and net income from investments increased to EUR 487 million (394). As at 31 December 2010, total investment assets amounted to EUR 11.7 billion (10.7) of which 85 per cent (89) was invested in fixed income instruments and 14 per cent (11) in equities. Investment return for 2010 mark-to-market was 7.4 per cent (12.4). Duration for interest bearing assets was 1.7 years (2.5).

As at 31 December 2010 If P&C had a solvency ratio (solvency capital in relation to net premiums written) of 79 per cent (77). Despite the EUR 540 million paid to Sampo plc in dividends during 2010, solvency capital amounted to EUR 3,373 million (2,943) in comparison to the regulatory minimum capital requirement of EUR 735 million.

On 1 January 2011 a new five-year cooperation agreement was announced between If P&C and Volvo Cars regarding Volvia brand insurance. The agreement offers Volvo owners a brand profiled insurance and a 3-year car warranty period. If has more than 443,000 Volviainsurances in its portfolio, of which 400,000 in Sweden, which means that 40 percent of all Volvo cars in Sweden are insured by Volvia. The deal with Volvo is worth approximately 2 billion Swedish krona in premiums earned for If annually.

Life Insurance in 2010

Results, Life Insurance, 2010

EURm	2010	2009	Change %
Premiums written	1,111	803	38
Net income from investments	645	629	3
Other operating income	0	0	-94
Claims incurred	-844	-628	34
Change in liabilities for inv. and ins. contracts	-678	-600	13
Staff costs	-35	-29	23
Other operating expenses	-49	-46	7
Finance costs	-8	-8	0
Profit before taxes	142	121	17
	2010	2009	Change
Expense ratio, %	112.1	111.0	1.1
Return on equity, %	36.2	97.6	-61.4
Average number of staff (FTE)	470	450	20

Sampo Group's life insurance operations continued their fast growth in 2010 with premium income growing almost 40 per cent. Profitability was also good and profit before taxes grew 17 per cent to EUR 142 million (121).

Net investment income, excluding income on unit-linked contracts, amounted to EUR 312 million (270). Net income from unit-linked investments was EUR 333 million (359). During 2010 fair value reserve increased EUR 75 million amounting to EUR 436 million. Return on equity (RoE) in life insurance was 36.2 per cent (97.6).

Mandatum Life Group's investment assets, excluding the assets of EUR 3.1 billion (2.4) covering unit-linked liabilities, amounted to EUR 6.0 billion (5.4) at market values as at 31 December 2010. Fixed income represented 61 per cent (68), equity 28 per cent (23), private equity 4 per cent (4), real estate 3 per cent (3) and other assets 3 per cent (2) of the total assets. Return on investments in 2010 was 11.1 per cent (16.8). At the end of December 2010 duration of fixed income assets was 2.7 years (2.6).

Mandatum Life Group's solvency position is strong. Solvency margin grew to EUR 1,339 million (930) as at 31 December 2010. Mandatum Life's solvency ratio was 25.7 (18.6). Total technical reserves were EUR 7.5 billion (6.8). Unit-linked reserves continued their strong growth and accounted for 3.1 billion (2.4). The share of unit-linked reserves of total technical reserves increased to 41 per cent (35).

In the Finnish operations, the total return for policyholders on with-profit technical provisions in 2010 was 3.0-4.5 per cent, depending on the class of insurance. This means that in addition to the guaranteed interest customer bonuses varying from 0 to 1.1 per cent, depending on the guaranteed interest on policies, were paid.

Majority of Mandatum Life's traditional policies carry a guaranteed interest of 3.5 per cent. Individual policies sold in Finland before 1999 carry a guaranteed interest of 4.5 per cent. The discount rate for these policies has been lowered to 3.5 per cent and subsequently technical reserves have been supplemented with EUR 86 million (95). In addition, EUR 61 million has been reserved to lower the interest rate of all with-profit liabilities to 2.5 per cent in 2011 and to 3.0 per cent in 2012. This supplement decreases the minimum requirement for

investment yield to 2.5 per cent and 3.0 per cent for 2011 and 2012, respectively. All in all, Mandatum Life has increased its technical reserves with EUR 147 million due to low level of interest rates.

Life operation's expense ratio remained on previous year's level and was 112.1 per cent (111.0). This ratio does not take into account all fees intended to cover the operating expenses. Assuming all fees were to be taken into account, Mandatum Life Group's expense ratio would have been 90.1 per cent (91.8). Mandatum Life does not defer acquisition costs.

Mandatum Life Group's premium income on own account exceeded for the first time billion euro and amounted to EUR 1,111 million (803). Premiums in the main focus area of unit-linked insurance increased to EUR 843 million (551) and the share of unit-linked premiums was 76 per cent (68) of total premiums. The good sales performance was due to all sales channels working well. Particularly the successful cooperation between the wealth management unit and the proprietary corporate sales force produced excellent results.

A new name was adopted for the Baltic subsidiary in 2010. The company is now called Mandatum Life Insurance Baltic SE. Premium income from the Baltic countries grew by 42 per cent and amounted to EUR 60 million (42).

Mandatum Life's market share in its focus area, unit-linked business, rose to 28.2 per cent (27.8). The company's overall market share in Finland was 22.0 per cent (24.8) and market share in the Baltic countries was 19 per cent (16).

Tax treatment of private persons' savings for old age changed in Finland as of 1 January 2010 with the introduction of a new Act extending the tax deductibility previously enjoyed only by individual pension premiums to a new set of savings products. Mandatum Life decided a year ago to cease actively offering new individual pension products to private persons as the main distributor Sampo Bank focused its efforts on selling the PS accounts created under the new Act. The influence to Mandatum Life's result is minor.

Associated Company Nordea Bank Ab

On 31 December 2010 Sampo plc held 830,440,497 Nordea shares corresponding to a holding of 20.5 per cent. The average price paid per share amounted to EUR 6.39 and the book value in the Group accounts was EUR 6.85 per share. The closing price as at 31 December 2010 was EUR 8.16.

As Sampo's holding exceeds 20 per cent, Nordea is accounted as an associated company in Sampo Group's accounts since 31 December 2009. Sampo's share of Nordea's net profit is shown on the face of Sampo Group's profit and loss account on the line Share of associate´s profit/loss.

The following text is based on Nordea's full-year 2010 result release published on 2 February 2011.

2010 showed record-high total income, up 3 per cent compared to last year. Operating profit increased 18 per cent, due to higher income and lower net loan losses. Risk-adjusted profit decreased by 6 per cent compared to the same period last year.

Net interest income decreased 2 per cent compared to last year as a result of lower deposit income and higher funding costs. The combined negative effect is more than EUR 400 million. This income drop was successfully compensated through strong growth in both lending and deposits as well as higher lending margins. Lending increased 11 per cent and deposit volumes 15 per cent. Corporate lending margins were higher, while deposit margins were largely unchanged compared to last year.

Net fee and commission income has recovered strongly and increased 27 per cent. Asset management commission income is up 42 per cent driven by assets under management, which are up 21 per cent in the last 12 months and a more attractive product mix.

Net result from items at fair value decreased by 6 per cent compared to very high levels last year. The customer driven capital markets operations continued to be strong with increasing volumes. The income drop in Group Treasury and Capital Markets unallocated income was approximately EUR 450 million and almost compensated by higher income in the customer areas. Premium income in Life &Pensions was at an all-time-high. Income under equity method was EUR 66 million and other income was EUR 116 million.

Total expenses increased 7 per cent compared to last year. Staff costs increased 2 per cent. In local currencies, total expenses increased 2 per cent and staff costs decreased 2 per cent. Excluding the adjustment of pension plans in Norway, total expenses increased 3 per cent and staff costs were down 1 per cent in local currencies.

Net loan losses decreased 41 per cent to EUR 879 million, compared to last year, corresponding to a loan loss ratio of 31 basis points (56 basis points). Net profit increased 15 per cent to EUR 2,663 million, due to lower net loan losses.

Risk-adjusted profit decreased 6 per cent compared to last year to EUR 2,622 million, mainly due to the exceptionally strong results in Treasury and Markets in 2009.

Activities related to the Group initiatives launched in early 2010 are on track in all areas. In 2010, the initiatives have generated more than EUR 300 million in additional income, i.e. above the target for the year. The efficiency gains amounted to approximately EUR 70 million, in line with earlier expectations. During the fourth quarter, total investments amounted to EUR 77 million, of which EUR 22 million were accounted for as expenses in the income statement. In the full year 2010, total investments amounted to approximately EUR 200 million, of which EUR 74 million were accounted for as expenses in the income statement. The investments are expected to be somewhat higher in 2011.

For more information on Nordea Bank Ab, see www.nordea.com.

Holding in 2010

Sampo plc controls its subsidiaries engaged in P&C and life insurance. In addition Sampo plc held on 31 December 2010 approximately 20.5 per cent of the share capital of Nordea, the largest bank in the Nordic countries. Nordea is an associated company to Sampo plc.

Results, Holding, 2010

EURm	2010	2009	Change %
Net investment income	60	109	-45
Other operating income	16	13	29
Staff costs	-13	-11	18
Other operating expenses	-11	-17	-34
Finance costs	-100	-58	73
Share of associate's profit	523	-	-
Profit (loss) before taxes	474	36	1,217
			Change
Average number of staff (FTE)	52	54	-2

The segment's profit before taxes amounted to EUR 474 million (36), of which EUR 523 million relates to Sampo's share of Nordea's 2010 profit. Segment's profit without Nordea was EUR -48 million.

Sampo plc's holding in Nordea Bank was booked in the consolidated balance sheet at EUR 5.7 billion. The market value of the holding was EUR 6.8 billion at 31 December 2010. In addition the assets on Sampo plc's balance sheet included holdings in subsidiaries for EUR 2.4 billion (2.4).

Changes in Group Structure

During 2010 no changes took place in the Group structure.

Administration

Sampo Group complies in full with the Finnish Corporate Governance Code published by the Securities Market Association on 15 June 2010 replacing the earlier Code from 2008.

Annual General Meeting

The Annual General Meeting held on 13 April 2010 decided to distribute a dividend of EUR 1.00 per share for 2009. The record date for dividend payment was 16 April 2010 and the dividend was paid on 23 April 2010. The Annual General Meeting adopted the financial accounts for 2009 and discharged the Board of Directors and the Group CEO and President from liability for the financial year.

The following members were re-elected to the Board of Directors: Tom Berglund, Anne Brunila, Veli-Matti Mattila, Eira Palin-Lehtinen, Jukka Pekkarinen, Christoffer Taxell, Matti Vuoria and Björn Wahlroos. At its organisational meeting, the Board elected Björn Wahlroos as Chairman and Matti Vuoria as Vice Chairman. The following members were elected to the Nomination and Compensation Committee: Veli-Matti Mattila, Eira Palin-Lehtinen, Christoffer Taxell, Matti Vuoria and Björn Wahlroos. Tom Berglund, Jukka Pekkarinen and Christoffer Taxell were elected to the Audit Committee.

The Annual General Meeting decided to pay the following fees to the members of the Board of Directors until the close of the 2011 Annual General Meeting: the Chairman of the Board will be paid EUR 160,000 per year, the Vice Chairman EUR 100,000 per year and the other members EUR 80,000 per year. After deduction of taxes and similar payments, approximately 50 per cent of the Board members' annual compensation will be paid in Sampo A shares and the rest in cash.

Ernst & Young Oy was elected as Auditor. The Auditor will be paid a fee determined by a reasonable invoice. Ernst & Young Oy nominated Heikki Ilkka, APA, as responsible auditor.

The Annual General Meeting resolved to amend section 12 of the Articles of Association as a result of the amendments to Chapter 5, section 19 of the Finnish Limited Liability Companies Act that entered into force on 3 August 2009 and 31 December 2009.

Governance in 2010

Sampo Group complies in full with the Finnish Corporate Governance Code published by the Securities Market Association on 15 June 2010 replacing the earlier Code from 2008. The new Code entered into force on 1 October 2010.

The annual Corporate Governance Statement will be published in connection to the Annual Report 2010 in March and will be available at www.sampo.com/cg. The Annual Report 2010 also contains a more detailed description of the Group's governance systems.

Sampo Group will also publish a Salary and Remuneration Report in March 2011. The report has been drawn up in accordance with section 7 ("Remuneration") of the Corporate Governance Code. The report is available at www.sampo.com/compensation.

Corporate Responsibility in 2010

As a listed company, Sampo plc has the responsibility of acting in the best interests of its shareholders, in compliance with legislation and in accordance with sound business practices. Sampo Group shares the values of ethicality, loyalty, transparency and entrepreneurship and aims at following these values in all of its business operations and with all of its stakeholders.

The management of Sampo Group is based on healthy and sound business principles. It aims at anticipating changes in society and the capital market, and adapting its operations accordingly to these changes. Sampo Group also aims at providing a non-discriminative, pleasant and open work environment. Through its services, Sampo Group aims to contribute towards the wellbeing and safety of society. Sampo Group is aware of its corporate responsibility and is committed to developing its operations to further economic, social and environmental sustainability.

If P&C represents 92 per cent of the Group's personnel and is a natural focal point for CSR activities in Sampo Group. As the leading insurance company in the Nordic region, If takes on social responsibility heavier than what is brought on by business alone. If uses its unique knowledge of risk management to help build a safe environment in the areas where it does business. Its goal is to always act in ways that meet, or preferably exceed, the ethical, legal, and commercial requirements placed upon the company.

If has taken an intensive interest in environmental issues over the past few years, and all the company's actions are guided by a strict environmental policy. If has joined the UN's Clean Development Mechanism (CDM) program in year 2010.

More information regarding corporate responsibility in Sampo Group is available in the Corporate Responsibility section.

Personnel in 2010

The number of full-time equivalent staff decreased to 6,844 employees (7,087) as at 31 December 2010. In P&C insurance, the number of staff mainly decreased in the Baltic and Russian operations and in Norway. In life insurance, the number of staff increased slightly both in Finland and the Baltics.

During 2010, approximately 92 per cent of the staff worked in P&C insurance, 7 per cent in life insurance and 1 per cent in the parent company Sampo plc.

Geographically, 31 per cent worked in Finland, 27 per cent in Sweden, 22 per cent in Norway and 20 per cent in the Baltic countries, Russia, Denmark and other countries. The average number of employees during 2010 was 6,914, which compares to an average of 7,311 during 2009.

During the last few years, a constant theme in If P&C has been to strengthen the competence of its employees and to increase employee engagement and commitment. To accelerate this work even more If P&C launched during 2010 a strategic theme called 'Skills and Initiatives'. The aim of the initiative is to influence the culture of the company to even more emphasize competence building, innovation and customer focus, the pillars of the company´s value creation.

In Mandatum Life, the main areas for HR policy in 2010 were building the company's working culture and focusing on cooperation, customer skills and high quality leadership.

Further information on staff in Sampo Group is available in the Personnel section of the Annual Report..

Management Incentive Schemes

On 8 June 2010 Sampo's Board approved a Compensation Code which applies to all Group companies. The Boards of these companies have adopted company-level policies based on the Code.

The Code lays down the principles for e.g. management incentives and can be viewed at www.sampo.com/compensation.

The variable compensation in Sampo Group is divided into short term and long term compensation. The short term compensation is based on annual performance whilst the long term compensation is carried out through the management incentive schemes. For the short term variable compensation systems decided after 1 January 2011, at least 50.1 per cent of significant pay-outs will be deferred for at least three years. In Sweden different national rules are applied and at least 60 per cent of pay-out for persons in risk-taking positions will be deferred.

The management incentive schemes of Sampo Group were in 2010 of two types; long-term management incentive schemes based on share appreciation rights and one share-based incentive scheme.

The outcome of the long-term management incentive schemes is determined by Sampo's share-price development over a period of approximately three years starting from the issue of the respective program. The programs are subject to thresholds on share price development and company profitability, as well as ceilings for maximum bonuses. Furthermore, the programs are subject to rules requiring part of the paid bonus to be used to acquire Sampo shares, which must in turn be held for a specified period of time.

In 2006, Sampo's Annual General Meeting decided on a share-based incentive scheme for the Executive Management belonging to the Group Executive Committee. Under the program, the participants are granted the right to receive up to a pre-determined number of Sampo shares, if Sampo's share price has outperformed a predefined threshold value and insurance margin targets have been exceeded. The reward will be paid in Sampo shares, in cash or a combination thereof. Furthermore, the programs are subject to lock-up on Sampo shares received. The scheme ended during 2010.

In 2010 EUR 10 million (0) was paid out based on the long-term management incentive schemes and EUR 4 million (2) was paid out based on the share-based incentive scheme.

The terms of all incentive schemes are available on Sampo's website at www.sampo.com/compensation.

Risk Management in 2010

Sampo considers that a high quality risk management process is a prerequisite for business operations.

The key objectives of risk management are:

to ensure that risks affecting our profitability and other material risks are identified, assessed and analyzed;
to ensure that capitalization in the form of capital and foreseeable profitability of businesses is adequate in terms of current risks inherent in business activities and existing business environment;
to ensure that risk bearing capacity is allocated into different business-areas according to chosen strategies and that risks are properly priced;
to limit and mitigate fluctuations in the economic values of group companies; and
to ensure the overall efficiency, security and continuity of operations.

Sampo Group's major risks, excluding Nordea, arise from the insurance activities and investment portfolios. Risk management related to these areas is seen as core competence and is therefore under constant development. Like all companies Sampo Group is exposed to operational risks and risks related to business environment. Sampo Group is continuously working at improving internal control, core processes and systems, business continuity planning, as well as monitoring and analyzing impacts from changes in the Group's external operating environment to reduce the impact of operational and business risks.

A more detailed description of Sampo Group's risk management organization and activities is available in the Risk Management section.

Shares, Share Capital and Shareholders

As at 31 December 2010, Sampo plc had 561,282,390 shares, which were divided into 560,082,390 A shares and 1,200,000 B shares.

As at 31 December 2010, Sampo plc had 86,294 shareholders, representing an increase of more than 9 per cent from the previous year.

Shares and Share Capital

As at 31 December 2010, Sampo plc had 561,282,390 shares, which were divided into 560,082,390 A shares and 1,200,000 B shares.

According to the company's Articles of Association, A Shares must number at least 179,000,000 and no more than 711,200,000. Meanwhile, B shares must number at least zero and no more than 4,800,000. Each A share entitles the holder to one vote and each B share entitles the holder t ve votes at the General Meeting of Shareholders. As at 31 December 2010 Sampo plc's share capital amounted to EUR 98 million (98).

Sampo A shares have been quoted on the main list of the NASDAQ OMX Helsinki since 1988 and all of the B shares are held by Kaleva Mutual Insurance Company. B shares can be converted into A shares at the request of the holder.

At the end of th nancial year, Sampo plc didn't hold any of its own A shares. Neither did the other Group companies hold any shares in the parent company.

Authorizations Granted to the Board

The Annual General Meeting of 2010 authorised the Board to acquire in one or several lots a maximum of 50,000,000 Sampo A shares.

Shares can be repurchased in other proportion than the shareholders' proportional shareholdings (private repurchase). The share price will be no higher than the highest price paid for Sampo shares in public trading at the time of purchase. The authorisation will be valid until the close of the next Annual General Meeting, nevertheless not more than 18 months after AGM's decision. The shares were to be acquired through public trading on the NASDAQ OMX Helsinki at the market price prevailing at the time of repurchase.

Sampo plc made no repurchases during 2010. On 8 June 2010 the Sampo Board decided to cancel the 90,000 Sampo A shares purchased during 2009. The shares corresponded to 0.02 per cent of the total number of shares and voting rights. The average purchase price was EUR 16.53 per share and the total amount paid EUR 1.5 million. The cancellation, which was entered into the trade register on 13 July 2010, reduced the number of Sampo A shares with the corresponding amount but had no effect on the share capital.

Shareholders

As at 31 December 2010, Sampo plc had 86,294 shareholders, representing an increase of more than 9 per cent from the previous year. 1.3 per cent of shares had not been transferred to the book-entry system. The holdings of nominee-registered and foreign shareholders decreased to 48.5 per cent (49.0) of the shares and 48.1 per cent of the votes (48.6).

At the end of 2010, the members of Sampo plc's Board of Directors and their close family members owned either directly or indirectly 11,856,737 Sampo A shares. Their combined holdings constituted 2.1 per cent of the share capital and related votes. The members of the Group Executive Committee and their close family members owned either directly or indirectly 960,349 Sampo A shares representing 0.2 per cent of the share capital and related votes.

During 2010, Sampo received the following noti cation of change in holdings pursuant to Chapter 2, Section 9 of the Securities Markets Act:

On 13 October 2010, Sampo plc received a disclosure according to which Capital Research and Management Company's holding in Sampo plc had on 11 October 2010 fallen below one twentieth (1/20) of Sampo plc's entire stock and voting rights. According to the noti cation Capital Research held 4.95 per cent of Sampo's total share capital and 4.91 per cent of related votes.

The complete disclosure is available at www.sampo.co aggings.

Shareholders by sector, Sampo plc, 31 December 2010 (A and B shares)

Sector	Number of shares	%
Foreign ownership and nominee registered	272,067,381	48.47
Corporations	95,683,073	17.05
Public institutions	75,526,243	13.46
Households	70,216,907	12.51
Financial institutions and insurance corporations	26,106,257	4.65
Non-pro t institution	14,419,949	2.57
On joint account	7,262,580	1.29
Total	561,282,390	100.00

Shareholders by number of shares owned, Sampo plc, 31 December 2010

Number of shares	Shareholders number	Shareholders %	Shares number	Shares %	Votes number	Votes %
1-100	23,347	27.06	1,474,231	0.26	1,474,231	0.26
101-500	38,352	44.44	10,249,676	1.83	10,249,676	1.81
501-1,000	11,644	13.49	9,057,835	1.61	9,057,835	1.60
1,001-5,000	10,605	12.29	22,737,366	4.05	22,737,366	4.02
5,001-10,000	1,257	1.46	9,025,947	1.61	9,025,947	1.59
10,001-50,000	874	1.01	18,083,374	3.22	18,083,374	3.19
50,001-100,000	90	0.10	6,572,858	1.17	6,572,858	1.16
100,001-500,000	83	0.10	16,629,873	2.96	16,629,873	2.94
500,001-9999999999	42	0.05	460,188,650	81.99	464,988,650	82.14
Total	86,294	100.00	554,019,810	98.71	558,819,810	98.72
Nominee registered	20		265,440,880	47.29	265,440,880	46.89
On waiting list, total	0		0	0.00	0	0.00
On joint account			7,262,580	1.29	7,262,580	1.28
Total			0	0.00	0	0.00
Total shares issued			561,282,390	100.00	566,082,390	100.00

Shareholders, Sampo plc, 31 December 2010

A and B shares	Number of shares	% of share capital	% of votes
Solidium Oy	79,280,080	14.12	14.01
Varma Mutual Pension Insurance Company	47,709,421	8.50	8.43
Ilmarinen Mutual Pension Insurance Company	14,103,068	2.51	2.49
Wahlroos Björn	11,756,737	2.09	2.08
Kaleva Mutual Insurance Company *	6,127,855	1.09	1.93
State Pension Fund	4,960,000	0.88	0.88
OP-Delta Mutual Fund	3,250,000	0.58	0.57
Etera Mutual Pension Insurance Company	2,429,335	0.43	0.43
Eläke-Fennia Mutual Insurance Company	1,850,000	0.33	0.33
Svenska Litteratursällskapet i Finland	1,609,600	0.29	0.28
Folketrygdfondet	1,521,311	0.27	0.27
OP-Suomi Mutual Fund	1,460,000	0.26	0.26
Odin Norden C/O Odin Forvaltning AS	1,441,251	0.26	0.25
Local Government Pension Institution	1,359,805	0.24	0.24
Nordea Suomi Mutual Fund	1,351,096	0.24	0.24
Svenska Handelsbanken AB (Publ), Filialverksamheten i Finland	1,205,440	0.21	0.21
Gyllenberg Finlandia Mutual Fund	1,202,500	0.21	0.21
SR Danske Invest Finland	917,382	0.16	0.16
SR Danske Invest Suomi Osake	863,945	0.15	0.15
Juselius Sigrid Sti else	846,400	0.15	0.15
Nominee registered total	265,440,880	47.29	46.89
Others total	110,596,284	19.70	19.54
Total	561,282,390	100.00	100.00

* 4,927,855 A shares and 1,200,000 B shares.

Development of the number of shares, Sampo plc, 2006-2010

				Change
Year	A shares	B shares	Total	during year	Reason for change
1 Jan 2006	570,118,315	1,200,000	571,318,315	+382,200	Option conversion (A share)
				-7,000,000	Cancellation of shares bought back (A share)
				+2,917,630	Option conversion (A share)
1 Jan 2007	566,418,145	1,200,000	567,618,145	+15,740,245	Option conversion (A share)
				-4,827,500	Cancellation of shares bought back (A share)
1 Jan 2008	577,330,890	1,200,000	578,530,890	-17,158,500	Cancellation of shares bought back (A share)
1 Jan 2009	560,172,390	1,200,000	561,372,390	no change
1 Jan 2010	560,172,390	1,200,000	561,372,390	-90,000	Cancellation of shares bought back (A share)
1 Jan 2011	560,082,390	1,200,000	561,282,390	no changes

Financial Standing

The Group's solvency ratio (own funds in relation to minimum requirements for own funds) was 167.1 per cent (158.3) as at 31 December 2010. The part of Nordea's capital requirement corresponding to Sampo's holding in Nordea is taken into account in the Group's capital requirement.

Internal Dividends

In 2010, Sampo plc received a total of EUR 540 million (SEK 5,000 million) in dividends from If P&C Insurance Holding AB: in April a dividend of EUR 103 million (SEK 1,000 million) and in December a dividend of EUR 437 million (SEK 4,000 million) was paid.

Mandatum Life paid no dividends to Sampo plc during 2010.

In addition the associated company Nordea Bank AB paid on 8 April 2010 Sampo plc a dividend amounting to EUR 204 million.

Ratings

All the main ratings for Sampo Group companies remained unchanged in 2010.

Ratings, Sampo Group, 31 December 2010

		Moody's	Standard and Poor's
Rated company	Rating	Outlook	Rating	Outlook
Sampo plc	Baa2	Stable	Not rated	-
If P&C Insurance Ltd (Sweden)	A2	Stable	A	Stable
If P&C Insurance Company Ltd (Finland)	A2	Stable	A	Stable

Group Solvency

With Nordea Bank AB (publ) as its associated company as of 31 December 2009 Sampo Group became a financial and insurance conglomerate according to the Act on the Supervision of Financial and Insurance Conglomerates (2004/699).

Group solvency has in 2010 been calculated according to Chapter 3 of the Act on the Supervision of Financial and Insurance Conglomerates (2004/699). The Act is based on Directive 2002/87/EC of the European Parliament and of the Council on the supplementary supervision of credit institutions, insurance undertakings and investment.

EURm	31 December 2010	31 December 2009
Group capital	8,886	7,613
Sectoral items	1,711	1,545
Intangibles and other deductibles	-2,388	-2,314
Dividends for the current period	-646	-561
Group's own funds, total	7,564	6,283
Minimum requirements for own funds, total	4,526	3,968
Group solvency	3,038	2,315
Group solvency ratio (Own funds % of minimum requirements)	167.1	158.3

Solvency, Sampo Group, 31 December 2010

In Sampo Group solvency is assessed internally by comparing the capital required to the capital available. Capital requirement assessment is based on an economic capital framework, in which Group companies quantify the amount of capital required for measurable risks over a one year time horizon at 99.5 per cent´s confidence level. In addition to economic capital companies are assessing their capital need related to non-measurable risks like risks in business environment.

Capital available or Adjusted Solvency Capital include regulatory capital and in addition other loss absorbing items like the effect of discounting technical reserves and other reserves excluded from regulatory capital.

The economic capital tied up in Group's operations on 31 December 2010 was EUR 4,281 million (3,783) and adjusted solvency capital was EUR 8,521 million (7,077).

Debt Financing

Sampo plc´s debt financing at the end of 2010 was EUR 1,731 million and interest bearing assets including bank accounts were of EUR 715 million. During the year the net debt decreased marginally by EUR 32 million to EUR 1,016 million (1,048). Gross debt to Sampo plc's equity was 26 per cent (24).

As at 31 December 2010 financial liabilities in Sampo plc's balance sheet consisted of issued senior bonds and notes of EUR 1,026 million, EUR 576 million of outstanding CPs issued and a TYEL-pension loan of EUR 130 million. The average interest on Sampo plc's debt as of 31.12.2010 was 3.36 per cent.

Events after the End of the Reporting Year

Sampo plc increased its stake in Nordea Bank AB (publ) with 0.7 percentage points by buying 30 million shares in an auction organized by the Swedish state on 4 February 2011. SEK 2,235 million was paid for the shares. After the purchase, Sampo holds 860,440,497 Nordea shares corresponding to 21.3 per cent of all shares in Nordea.

Outlook for 2011

Growth in the global economy is expected to pick up momentum and deleveraging to continue as markets prove their resilience and adaptiveness. The European debt crisis, if properly managed, is expected to abate gradually. All in all the economic landscape in 2011 is expected to be fairly benign.

Sampo Group is expected to report a good result for 2011. P&C and life insurance operations are expected to report good and stable results and the contribution to profit of associated company Nordea Bank is anticipated to remain strong. The continuing rise of short term interest rates will also further strengthen Sampo Group's profits.

If P&C is expected to reach its long-term combined ratio target of below 95 per cent in 2011. Profit is expected to remain very good.

Nordea's contribution to the Group's profit is expected to be significant.

Mandatum Life's profitability is expected to remain good although it is highly dependent on capital market developments.

The Most Significant Risks to Operations

As a diverse financial institution, Sampo Group is exposed to a variety of different risks, both financial and non-financial. The major risks associated with Sampo Group's activities during 2010 were insurance risks arising from P&C and Life insurance business areas, as well as market and credit risks emanating from the Group's investment portfolios and the debt financing of Sampo plc.

During 2010, Sampo Group's insurance risk profile remained relatively stable. In Mandatum Life longevity risk is still the most material biometric risk and most of it arises from the group pension portfolio. In If P&C the most material insurance risk is reserve risk, which to a large extent is driven by long-tailed business such as workers' compensation and motor third party liability.

The main market risks of Sampo Group during 2010 were equity risk, interest rate risk and credit risk. Equity risk arises from the Group's equity portfolio amounting to EUR 3.4 billion (2.4). Interest rate risk is related to the Group's fixed income investments and insurance liabilities. In the short run, rising interest rates would decrease the valuation of fixed income assets. However, over a long period the risk that interest rates fall and remain at a low level is economically more remarkable, because Group´s liabilities have as an average longer duration than assets. Fixed income investments also expose the Group to credit risks, the significance of which has increased during the year. The amount of the Group's fixed income investments increased to EUR 14.2 billion (13.2) during 2010.

Currency risk is the risk that Sampo Group will incur losses due to changes in foreign currency exchange rates. If P&C and Mandatum Life are mainly exposed to currency risk via their net currency exposures stemming from business activities. In Sampo plc transaction risk relates mainly to dividends paid by If P&C. At Group level changes in foreign currency exchange rates can change group equity.

Operational risks, such as failures in internal processes and systems, and business risks, such as changes in the economic environment or business cycle, are inherent throughout all business areas. The perceived risks in the businesses and operating environment did not change significantly during 2010.

Dividend Proposal

On 11 February 2010 the Board adopted a new dividend policy. According to the policy total annual dividends paid will be higher than 50 per cent of Group's net profit for the year (excluding extraordinary items). In addition share buy-backs can be used to complement the cash dividend.

The parent company's distributable capital and reserves totaled EUR 6,597,907,788.86, of which profit for the financial year was EUR 710,467,413.51.

The Board proposes to the Annual General Meeting a dividend of EUR 1.15 per share to company's 561,282,390 shares. The dividends to be paid are EUR 645,474,748.50 in total. Rest of funds are left in the equity capital.

The dividend will be paid to shareholders registered in the Register of Shareholders held by Euroclear Finland Ltd as at the record date of 19 April 2011. The Board proposes that the dividend be paid on 28 April 2011.

No significant changes have taken place in the company's financial position since the end of the financial year. The company's liquidity position is good and in the view of the Board, the proposed distribution does not jeopardize the company's ability to fulfill its obligations.

Sampo plc Board of Directors

Key Figures

Group ke gures		2010	2009	2008	2007	2006
Pro t before taxes	EURm	1,320	825	870	3,833	1,353
Return on equity (at fair values)	%	21,8	55,7	-32,4	52,6	22.6
Return on assets (at fair values)	%	10,0	18,6	-7,4	11,5	4.0
Equity/assets ratio	%	29,8	28,6	21,9	30,5	10,9
Group solvency 2)	EURm	3,038	2,315	2,656	5,969	2,443
Group solvency ratio 2)	%	167,1	158,3	433,6	774,6	202,7
Average number of sta		6,914	7,311	7,145	6,855	11,657

Property & casualty insurance
Premiums written before reinsurers' share	EURm	4,189	3,888	4,057	4,085	4,019
Premiums earned	EURm	3,894	3,643	3,807	3,797	3,765
Pro t before taxes	EURm	707	644	549	534	730
Return on equity (at fair values)	%	39,8	53,2	-0,8	19,2	22.0
Risk ratio 3)	%	69,1	68,0	68,1	66,9	65.9
Cost ratio 3)	%	23,7	24,1	23,7	23,7	24.0
Loss ratio 3)	%	77,1	76,2	76,0	74,9	73.9
Loss ratio excl. unwinding of discount 3)	%	75,6	74,6	74,4	73,4	72.5
Expense ratio 3)	%	17,2	17,6	17,4	17,2	17.4
Combined ratio	%	94,3	93,8	93,4	92,1	91.3
Combined ratio excl. unwinding of discount	%	92,8	92,1	91,8	90,6	89.9
Solvency capital **)	EURm	3,373	2,943	2,221	2,681	2,841
% of technical provisions *)	%	38,2	36,3	29,8	33,3	36,8
Solvency ratio *)	%	79,5	77,3	65,7	71,3	73,6
Average number of sta		6,392	6,807	6,655	6,415	6,428

*) Based on th nancial statements of If Group.

Life insurance

Premiums written before reinsurers' share	EURm	1,117	809	536	622	662
Pro t before taxes	EURm	142	121	140	342	295
Return on equity (at fair values)	%	36,2	97,6	-68,8	9,1	30,0
Expense ratio	%	112,1	111,0	113,1	101,6	101,9
Solvency capital (IFRS)	EURm	1,335	927	382	844	1,031
% of technical provisions (IFRS)	%	25,7	18,5	7,8	16,4	20,1
Average number of sta		470	450	437	384	365
Holding 4)
Pro t before taxes	EURm	474	36	180	95	-27
Average number of sta		52	54	53	56	435
Per share ke gures		2010	2009	2008	2007	2006
Earnings per share	EUR	1,97	1,14	1,18	6.18	1,73
Earnings per share, continuing operations	EUR	-	-	-	1.25	1.27
Options diluted earnings per share	EUR	-	-	-	-	1,69
Options diluted earnings per share, continuing operations	EUR	-	-	-	-	1.24
Earnings per share, incl. change in fair value reserve	EUR	3.22	5,88	-3,52	5.89	1,89
Earnings per share, incl. change in fair value reserve, continuing operations	EUR	-	-	-	0.95	1.44
Capital and reserves per share	EUR	15.83	13,56	8,25	13,47	9,18
Net asset value per share	EUR	17.79	14.63	8,28	13,49	9,21
Dividend per share 5)	EUR	1.15	1	0.8	1.2	1.2
Dividend per earnings	%	58,4	87,7	67,8	19,4	69,4
E ective dividend yield	%	5,7	5,9	6,0	6,6	5,9
Price/earnings ratio		10,2	14,9	11,2	2,9	11,7
Adjusted number of shares at 31 Dec. 6)	1,000	561,282	561,282	561,372	574,209	562,791
Average adjusted number of shares 6)	1,000	561,321	561,370	569,442	577,802	563,092
Weighted average number of shares, incl. dilutive potential shares 6)	1,000	561,321	561,370	569,442	577,802	576,341
Market capitalisation	EURm	11,254	9,553	7,433	10,382	11,413

A shares

Adjusted number of shares at 31 Dec. 6)	1,000	560,082	560,082	560,172	573,009	561,591
Average adjusted number of shares 6)	1,000	560,121	560,170	568,242	576,602	561,892
Weighted average number of shares, incl. dilutive potential shares 6)	1,000	560,121	560,170	568,242	576,602	575,141
Weighted average share price	EUR	18,47	13,84	15,96	21,43	16,78
Adjusted share price, high	EUR	20,71	17,72	19.3	24.79	20,74
Adjusted share price, low	EUR	16,13	8,63	11,42	17.95	13,58
Adjusted closing price	EUR	20,05	17,02	13,24	18.08	20,28
Share trading volume during accounting period	1,000	564,338	452,367	650,816	750,748	592,839
Relative share trading volume	%	100,8	80,8	114,5	130,2	105,5
B shares
Adjusted number of shares at 31 Dec.	1 000 kpl	1,200	1,200	1,200	1,200	1,200
Average adjusted number of shares	1 000 kpl	1,200	1,200	1,200	1,200	1,200

¹) 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 ke gures for the year 2007. The comparison average numbers of sta etween the year 2006 include the average sta umber of the Banking and investment services (discontinued operations).

2) On 31 Dec. 2009 Nordea was consolidated as an associate to Sampo and Sampo becam nancial and insurance conglomerate, in accordance with the Act on Supervision on Financial and Insurance Conglomerates (2004/699). In 2010 and 2009, the group solvency was calculated according to Chapter 3. In 2007 and 2008 the group solvency was based on adjusted solvency calculations for insurance groups according to the Decree of the Ministry of Socia airs and Health (1106/2000). The adjusted solvency wass determined on the basis of the Grou nancial statements as permitted by the Financial Supervisory Authority (former Insurance Supervisory Authority). In 2006, the solvency was calculated according to the consolidation method de ned in Chapter 3 of the Act on the Supervision of Financial and Insurance Conglomerates.

3) Ke gures for P&C Insurance are based on activity based costs and cannot, therefore, be calculated directly from the consolidated income statement.

4) The comparison average numbers of sta or the year 2006 include the sta f Primaso y, then consolidated as a subsidiary.

5) The Board of Director's proposal to the Annual General Meeting for the accounting period 2010.

6) In calculating the per share ke gures, the number of shares used at the balance sheet dateand as the average number of shares was 561,282,390.

In calculating the ke gures the tax corresponding to the result for the accounting period has been taken into account. The valuation di erences, adjusted with deferred tax liability, on 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, other comprehensive income have been taken into account in return on assets and return on equity. In net asset value per share, the Group valuation di erence on associate Nordea has also been taken into account.

Calculation of the Key Figures

The key figures have been calculated in accordance with the decree issued by the Ministry of Finance and the specifying regulations and instructions of the Financial Supervisory Authority. The Group solvency has been calculated according to the consolidation method defined in Chapter 3 of the Act on the Supervision of Financial and Insurance Conglomerates.

Group Key Figures

Profit before taxes

Property & casualty insurance profit before taxes + life insurance profit before taxes

holding business profit before taxes + Group elimination items with result impact

Property & casualty and life insurance

- insurance premiums written
- net income from investments
- other operating income
claims incurred
change in liabilities for investment and insurance contracts
staff costs
other operating expenses
finance costs
± share of associates' profit/lo

Holding

- net income from investments
- other operating income
staff costs
other operating expenses
finance costs
± share of associates' profit/loss

Return on equity (at fair values), %

- total comprehensive income
- change in valuation differences on investments less deferred tax
total equity

_________________________________________________________________________________________ x 100 %

valuation differences on investments less deferred tax

(average of values on 1 Jan. and 31 Dec.)

Return on assets (at fair values), %

- operating profit
- other comprehensive income before taxes
- interest and other financial expense
- calculated interest on technical provisions
- change in valuation differences on investments
total balance sheet

_________________________________________________________________________________________ x 100 %

technical provisions relating to unit-linked insurance
valuation differences on investments

(average of values on 1 Jan. and 31 Dec.)

Equity/assets ratio (at fair values), %

+ total equity

valuation differences on investments less deferred tax

_________________________________________________________________________________________ x 100 %

balance sheet total
valuation differences on investments

Group solvency

total equity + sectoral items - intangible assets and sectoral deductibles own funds, total - minimum requirements for own funds, total group solvency

Group solvency ratio, %

own funds

_________________________________________________________________________________________ x 100 %

minimum requirements for own funds

Average number of staff

Average of month-end figures, adjusted for part-time staff

Property & Casualty Insurance Key Figures

Profit before taxes

Formula shown in connection with the Group key figures.

Return on equity (at fair values), %

Formula shown in connection with the Group key figures.

Risk ratio, %

claims incurred - claims settlement expenses

_________________________________________________________________________________________ x 100 % premiums earned

Cost ratio, %

operating expenses
claims settlement expenses

premiums earned

Loss ratio, %

claims incurred

_________________________________________________________________________________________ x 100 %

premiums earned

Loss ratio excl. unwinding of discount, %

claims incurred before unwinding of discount

premiums earned

Expense ratio, %

operating expenses

_________________________________________________________________________________________ x 100 %

premiums earned

Combined ratio, %

Loss ratio + expense ratio

Combined ratio excl. unwinding of discount, %

Loss ratio before unwinding of discount + expense ratio

Solvency capital (IFRS)

- equity after proposed profit distribution
± valuation differences on investment
intangible assets
- subordinated loans
deferred tax liability probably realised in near future
- other required items (Ministry of Finance decree)

Solvency capital, % of technical provision (IFRS)

solvency capital

_________________________________________________________________________________________ x 100 %

liabilities for insurance and investment contracts
reinsurers' share of insurance liabilities

Solvency ratio (IFRS), %

solvency capital

_________________________________________________________________________________________ x 100 %

premiums earned from 12 months

Life Insurance Key Figures

Profit before taxes

Formula shown in connection with the Group key figures.

Return on equity (at fair values), %

Formula shown in connection with the Group key figures.

Expense ratio

- operating expenses before change in deferred acquisition costs
- claims settlement expenses

_________________________________________________________________________________________ x 100 %

expense charges

Solvency capital (IFRS)

equity after proposed profit distribution
± valuation differences on investment
intangible assets
- subordinated loans
deferred tax liability probably realised in near future
(incl. deferred tax from fair value reserve and profit)
- other required items (Ministry of Finance decree)

Solvency ratio, % of technical provision, IFRS

solvency capital

_________________________________________________________________________________________ x 100 %

liabilities for insurance and investment contracts
reinsurers' share of insurance liabilities
75 % x technical provisions relating to unit-linked insurance

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

Earnings per share, incl. change in fair value reserve

_________________________________________________________________________________________

total comprehensive income for the financial period attributable to the parent company's equity holders

adjusted average number of shares

Equity per share

equity attributable to the parent company 's equity holders adjusted number of shares at balance sheet date

Net asset value per share

equity attributable to the parent company's equity holders

_________________________________________________________________________________________

- valuation differences on listed associate in the Group
- valuation differences on investments less deferred tax

adjusted number of shares at balance sheet date

Dividend per share, %

dividend for the accounting period

_________________________________________________________________________________________ x 100 %

adjusted number of shares at balance sheet date

Dividend per earnings, %

dividend per share

_________________________________________________________________________________________ x 100 %

earnings per share

Effective dividend yield, %

dividend per share

_________________________________________________________________________________________ x 100 %

adjusted closing share price at 31 Dec.

Price/earnings ratio

adjusted closing share price at 31 Dec. earnings per share

Market capitalisation

number of shares at 31 Dec. x closing share price at 31 Dec.

Relative share trading volume, %

number of shares traded through the Helsinki Exchanges

_________________________________________________________________________________________ x 100 %

adjusted average number of shares

Risk Management

85 Earnings Logic and Risks

89	Risk Management Process
90	Risk Governance Framework	93	Capital Management Process
95	P&C Insurance Risks
96	Premium and Catastrophe Risks	98	Reserve Risk
101	Life Insurance Risks
102 103	Biometric Risks Discount Rate Risk in Technical Provisions	107 108	Other Life Insurance Risks Life Insurance Risk Management
109	Market Risks
110	ALM risks	112	Investment Portfolio Risks
122	Credit Risks
123	Credit Risk Management	124	Credit Risks Related to Reinsurance Counterparties
125	Liquidity Risks
127	Operational Risks
128 129	Risk Management in Sampo Group Risk Management in P&C Insurance	130	Risk Management in Life Insurance
131	Group Level Risks
134	Capitalization
137 141	Internal Capital Measures Sensitivity Analysis	142 144	Regulatory Criteria Rating Agency Criteria

145 Risk Management Outlook

Earnings Logic and Risks

Sampo Group has three business areas: P&C insurance (If P&C) and life insurance (Mandatum Life) are wholly owned by the holding company (Sampo plc) and in addition to the insurance subsidiaries, Sampo plc also holds 20,54 per cent in Nordea AB (publ) at December 31, 2010. Nordea is an associated company affecting Sampo Group´s profits and risks substantially. Nordea is an independent company whose risk management is not covered in Sampo Group´s annual report.

Sampo plc as a parent company does not have any own business operations. Sampo plc guides the activities of subsidiaries by setting financial and capitalisation targets for the subsidiaries and defining the group level risk management principles. The subsidiaries independently organize their operations and risk management according to these principles, taking into account the special characteristics that arise from the company specific earnings logic and risks.

Sampo plc also aims to ensure that the activities of the subsidiaries do not lead to unwanted risk concentrations. Thus, the concentrations are first pro-actively prevented by careful division of risk-taking between subsidiaries, and the rest of the concentrations are monitored and the risk profiles are changed if needed.

As a pan-Nordic insurance group If P&C underwrites policies that cover various risks of individuals and corporations on a geographically diverse area. If P&C mainly underwrites insurance risks in the Nordic and Baltic countries, as well as policies for Nordic clients with operations outside the Nordic countries. The business written is well-diversified over insurance classes, client segments and geographical areas. Mandatum Life operates in Finland and Baltic countries and offers savings insurance and pension policies as well as policies covering only insurance risks.

If P&C and Mandatum Life are exposed to various risks, which are selected carefully and priced reflecting the risks. Reinsurance is used to handle low frequency, but high impact events. A critical success factor is also the companies´ ability to maximise investment returns while taking into account all investment risks as well as the features of technical provisions, solvency, regulatory asset coverage rules and rating requirements. The core competence in Sampo Group's businesses is the pricing of risks and the proper management of the arising risk exposures.

Sampo Group's main risks are illustrated in figure "Classification of risks in Sampo Group". The risk classification is based on the major risk factors that affect Sampo Group. Moreover, risks such as ALM risk, concentration risk and reputation risk are by their nature linked to various risk factors.

Classification of Risks in Sampo Group

P&C Insurance	Life Insurance	Market	Credit	Liquidity	Operational Other
Premium Risk	Biometric Risks	Interest Rate Risk	Issuer Risk of Investments	Refinancing Risk	Processes	Business Risk
Reserve Risk	Surrender and Lapse Risks	Equity Risk	Counterparty Risk of Reinsurance	Market Liquidity Risk	Personnel	Compliance Risk
Catastrophe Risk	Expense Risk	Currency Risk	Counterparty Risk of Derivatives		Systems
		Credit Spread Risk			External Events
					Legal Risk

P&C Insurance risk

Premium risk is the risk that the claims cost for future claims exceeds the expected level. This could be due to e.g. inadequate pricing, risk concentration, improper reinsurance coverage or due to unexpected deviations in the frequency of claims (i.e. the number of claims incurred during the period being higher than expected) and / or in the size of claims (i.e. claims when they occur being larger than anticipated).

Reserve risk is the risk that technical provisions are not sufficient to cover the cost for already incurred claims and results from fluctuations in the timing and amount of claim settlements.

Catastrophe risk is the risk of low frequency, high severity events, such as natural catastrophes, that are not captured adequately by the premium risk or reserve risk.

Life Insurance risk

Biometric risks in life insurance refer to the risk that the company has to pay larger mortality, disability or morbidity benefits than expected or the company has to keep paying pension payments to the pension policy holder for a longer time (longevity risk) than expected when pricing the policies. The uncertainty in the amount of the future benefit payments relates also to the adequacy of technical provisions. The discount rate risk, however, is a more significant factor for the adequacy of technical provisions than the risk described above.

Other risks in life insurance arise from the uncertainty related to the behaviour of the policyholders. The policyholders have the right to cease paying premiums (lapse risk) and the possibility to interrupt their policies (surrender risk).

Market risk

Market risks refer to fluctuations in the financial results and capital caused by changes in market values of financial assets and liabilities as well as technical provisions. Market values change together with underlying tradable market risk variables of which the following ones are currently the most important for Sampo Group: interest rates, inflation, credit spreads, foreign exchange rates, share prices and their volatilities.

Credit risk

Credit risk (default) refers to the negative impact in the financial results arising from defaults of debtors (issuer risk) or other counterparties (counterparty risk in derivatives and reinsurance contracts). Credit risk may realize when the cash flows agreed with the debtor or counterparty fail to materialize. In the case of issuer risk the final loss depends on the company's holding in the security and the recovery rate. In the case of counterparty risk, final loss depends on potential positive mark-to-market value at the time of default together with recovery rate.

Liquidity risk

Liquidity risk is the risk that insurance undertakings are unable to conduct their regular business activities in accordance with the strategy, or in extreme cases, are unable to settle their financial obligations when they fall due. Liquidity risk deals with potential illiquidity of investments and non-renewal of insurance policies. Also the availability and price of refinance and financial derivatives affect the company´s ability to carry out regular business.

Operational risk

Operational risk refers to the risk of loss resulting from inadequate or failed processes or systems, from personnel and systems or from external events. This definition includes legal risk but excludes risks resulting from strategic decisions.

Other risk

Business risk is the risk of losses due to changes in the competitive environment or internal flexibility. Unexpected changes in general business environment can cause bigger than expected fluctuations in financial results. Such changes include the general economic development, changes in the institutional environment, technological innovations and competitive factors such as new competitors and changes in margins and volumes.

Compliance risk is the risk of legal or regulatory sanctions, material financial loss or loss of reputation an undertaking may suffer as a result of not complying with laws, regulations and administrative provisions as applicable to its activities. A compliance risk is often the consequence of a legal or operational risk.

ALM risk

The company is exposed to ALM risk when changes in different market risk variables (e.g. interest rates, inflation, foreign exchange rates, equity prices) cause a change in the value of investment assets that is of different size than the respective change in the economic value of technical provisions. In addition, the cash flows of technical provisions are modelled estimates and therefore uncertain in relation to both their timing and amount. ALM risk also includes this component of uncertainty.

Reputational risk

Reputational risk, which is not categorized as an operational or a compliance risk, is the risk of reputational damage due to an action or event.

Concentration risk

Concentration risk arises when the company´s risks are not diversified enough and as a result of this an individual claim or market event could threaten the solvency or the financial position of the company.

An illustrative picture of the most significant risks in Sampo Group is presented in figure "Key risks in Sampo Group". The most significant risks when Nordea´s figures are included are credit risk, market risk, insurance risk and operational risk. The figure is for illustrative purposes only.

The most significant risk arising from the operations of the insurance subsidiaries is market risk. On the Group level, the most significant risks are market risk and credit risk. This is due to Sampo plc´s holding in Nordea whose business activities in banking results in credit risk being the key risk.

Risk Management Process

The core competences of Sampo Group´s business are skillful pricing of risks, selection of risks and proper risk management. A high quality risk management process is a necessary prerequisite for successful business.

In Sampo Group, the key objectives for risk management are:

to ensure that all the risks a ecting the pro tability and other material risks are identi ed, assessed and analyzed;
to ensure that capitalization in the form of capital and foreseeable pro tability of businesses is adequate in terms of current risks inherent in business activities and existing business environment;
to ensure that risk bearing capacity is allocated into di erent business areas according to chosen strategies and that risks are properly priced;
to limit and mitigat uctuations in the economic values of group companies; and
to ensure the overall e ciency, security and continuity of operations.

To meet these objectives Sampo Group's risk management process includes following tasks:

	Clear definition and division of responsibilities	Prerequisite for the efficient, high-quality operations is that authorisations and responsibilities of different companies, business areas, centralized units and administrative bodies are clearly defined.
	Identification of risks	The risks involved in business operations and business environment are identified and monitored continuously. Particularly, when new services are launched, or when business environment is changing, risks are thoroughly analysed.
	Determination of size of capital	The need of capital to cover measurable risks and risk buffers, i.e. the difference between actual level of capitalisation and internally assessed economic capital, are assessed and analysed regularly.
Reporting	Pricing of risks	Sound pricing of customer transactions and a careful risk-return consideration of investments are prerequisites for achieving the targeted financial performance and profitability over time. In general, starting points of insurance policy pricing and investment decisions are (i) adequate expected return on allocated capital and (ii) operating costs.
	Managing risk exposures	Liability and investment risks are constantly adjusted to maintain a sound risk to return ratio and return on capital. Management 's responsibilities and authorisations are defined in separate documents, e.g. underwriting and investment policies. Companies can use derivatives approved by them to manage their risk exposures.
	Measurement and reporting of risks	Results, risks, capital need and profitability are measured, analyzed and reported by Finance and Risk Management units, which are independent from business activities.

In Sampo Group, the common Risk Management Principles are followed when organizing the activities in general and risk management in particular.

Risk Governance Framework

This section describes Sampo Group's governance framework regarding risk control. The reporting segments of Sampo Group are P&C insurance, Life insurance and Holding. These segments correspond to the legal entities of If P&C, Mandatum Life and Sampo plc respectively.

If P&C and Mandatum Life organise their activities autonomously but in accordance with the Group level risk management principles. The Board of Directors of the parent company defines return and capitalisation targets of the subsidiaries. The risk exposure and capitalisation reports of the subsidiaries are consolidated on Group level on a quarterly basis and reported to the Board and Audit Committee of Sampo plc. Sampo Group's overall corporate governance and system of internal control is described in the Corporate Governance section.

The roles and responsibilities of different governing bodies in Sampo Group and individual subsidiaries are described in more detail in figure "Risk management governance framework in Sampo Group".

Group Risk Governance

The Board of Directors of Sampo plc is responsible for ensuring that the Group's risks are properly managed and controlled.

The Audit Committee (AC) is responsible, on behalf of the Board of Directors, for the preparation of Sampo Group's risk management principles and other related guidelines. The AC shall ensure that the operations are in compliance with these, control Sampo Group's risks and risk concentrations as well as control the quality and scope of risk management in each company. The committee shall also monitor the implementation of risk policies, capitalization and the development of risks and profit. At least three members of the AC must be elected from those members of the Board, who do not hold management positions in Sampo Group and are independent of the company. The AC meets on a quarterly basis.

The Group Chief Risk Officer (CRO) is responsible for the appropriateness of risk management on Sampo Group level. The CRO´s responsibility is to monitor Sampo Group's aggregated risk exposure as a whole and coordinate and monitor company specific and group level risk management.

The Boards of Directors in each insurance subsidiary have the overall responsibility for the risk management process and they are the ultimate decision making bodies at If P&C and Mandatum Life respectively. The Boards ensure that the management and monitoring of the risks are satisfactory, and approves the risk management plan. The Boards of Directors of If P&C and Mandatum Life appoint the individual risk management committees within each legal entity and are also responsible for identifying needs for changing policies, guidelines and instructions related to risk management.

Risk Governance in If P&C

If's Risk Control Committee (IRCC) assists the CEO and the Board of Directors of If P&C in fulfilling their responsibilities relating to the risk management process. IRCC monitors reports from the relevant committees and functions as well as the risk position of If P&C in relation to restrictions and limits given by the Board and in comparison to the capital position. The Risk Management department is the responsible function for coordinating the risk management work on behalf of the IRCC.

The Investment Control Committee (ICC) is responsible for the control of investment activities in If P&C by ensuring compliance with the principles and limits specified in the Investment Policy. ICC reports to the Board and IRCC, and meets at minimum once a month.

The separate risk committees in If P&C which report to the IRCC are Underwriting Committee (UWC), Actuarial Committee (AC), Reinsurance Committee (RC), and Operational Risk Committee (ORC). UWC is responsible for maintaining the Underwriting Policy and for reporting all deviations from the Underwriting Policy to IRCC. AC monitors the technical provisions and technical calculations and reports on reserve risk to the IRCC on a quarterly basis. RC is responsible for approving deviations from the Reinsurance Security Policy and for reporting all deviations to IRCC. ORC considers various policies and recommendations concerning operational risk management within If P&C and monitors deviations from these policies. Moreover, the committee is responsible for follow-up of operational risks identified in the operational risk assessment process.

Risk Governance in Mandatum Life

In Mandatum Life the Board of Directors is responsible for risk management and adequacy of internal control. The Board annually approves the Risk Management Plan, Investment Policy and other risk management and internal control instructions.

The Managing Director has the overall responsibility for the risk management according to Board of Directors' instructions.

The Risk Management Committee (RMC) coordinates and monitors all risks in Mandatum Life. The committee is chaired by the Managing Director. Risks are divided into main groups which are insurance risks, market risks, operational risks, legal and compliance as well as business and reputation risks. Risks related to the Baltic subsidiary are also included. Each risk area has a responsible person in the committee.

Mandatum Life's Asset and Liability Committee (ALCO) controls that the investment activities are conducted within the limits defined in the Investment Policy approved by the Board and monitors the adequacy of capital in relation to the market risks in the balance sheet. ALCO reports to the Board and meets at a minimum on a monthly basis.

The Insurance Risk Committee is responsible for maintaining the Underwriting Policy and monitoring the functioning of the risk selection and claims processes. The committee also reports all deviations from the Underwriting Policy to RMC. The Insurance Risk Committee is chaired by the Chief Actuary who is responsible for ensuring that the principles for pricing policies and for the calculation of technical provisions are adequate and in line with the risk selection and claims processes. The Board approves the tariffs and prices and the central principles for the calculation of technical provisions. In addition, the Board defines the maximum amount of risk to be retained on the company's own account and approves the Reinsurance Policy annually.

Operational Risk Committee (ORC) analyses and handles operational risks, e.g. in relation to new products and services, changes in processes and risks as well as realised operational risk incidents. These are reported to the Risk Management Committee and to the Board of Directors quarterly. ORC is also responsible for maintaining and updating the continuity and preparedness plans.

The Baltic subsidiary has its own risk management system. All major incidents are also reported to Mandatum Life's Risk Management Committee.

Internal audit ensures with its audit recommendations that adequate internal controls are in place.

Capital Management Process

In Sampo Group, capital management is about ensuring the adequacy of the available capital in relation to risks arising from the company's activities and business environment.

Capital management activities are conducted continuously in various parts of the organization. Figure "Capital management process in Sampo Group" depicts the capital management actions in Sampo Group on a general level.

Capital Adequacy Assessment

In addition to the statutory financial statements and solvency figures, Sampo Group also uses internal performance, risk and capital measures which are based on fair values of assets and liabilities. Also the methods used by rating agencies are followed closely. All methods - regulatory, rating agency and internal ones - include the assessment of capital required to cover different risks and the amount of capital available.

Sampo Group considers that there is a need for internal assessments of capitalization because regulatory and rating agency models cannot take the specific features of different companies accurately enough into account.

The current capital adequacy is assessed internally by comparing the amount of available capital to the amount of capital required to bear the risks arising from the current business activities. Internally, the assessment of capital has three phases. First, economic capital is used to assess the capital required by the current activities. Second, the less quantifiable, low probability and high impact risks as well as uncertainties related to the business environment are considered and this may affect Sampo Group´s understanding of capital need. Thirdly, when assessing the capital available, expected profitability is taken into account in addition to other capital components, because earnings are seen as the first buffer against potential losses.

What is economic capital in Sampo Group?

Sampo Group uses economic capital as an internal measure of capital required for risks the Group is exposed to. Sampo Group defines economic capital as the amount of capital required to protect the solvency over a one year time horizon with a probability of 99.5 per cent.

Economic capital accounts for market, credit, insurance and operational risks, as well as the diversification effect between these risks. Economic capital is calculated using a set of calculation methods, which have been developed for the specific needs of each business area. When assessing the economic capital need arising from Nordea, Sampo plc uses the economic capital calculated by Nordea multiplied by the proportion of Sampo plc's share in Nordea (20.54 per cent at year end).

In Sampo Group, economic capital is considered to be a good estimate of the capital required to cover risks that can be measured in a reliable way and within a normal business environment. In the assessment of the adequacy of capital the effects of potential changes in the business environment as well as the effects of low probability risks are taken into account.

The economic capital and adjusted solvency capital as well as the regulatory capital measures are disclosed quarterly. Rating agency capital measures are also calculated regularly, but they are not disclosed.

What is adjusted solvency capital in Sampo Group?

Different stakeholders have different views when assessing the available capital. Regulators have defined which items can be included into the solvency capital and rating agencies have their own definitions for capital. As an internal measure of available capital, Sampo Group uses adjusted solvency capital. The basis for adjusted solvency capital is capital items included in regulatory solvency capital. On top of those, other risk absorbing items such as the difference between the book value and market value (including a risk margin) of technical provisions are added.

Capital Planning

When assessing the future capital requirement, the views of the management and different stakeholders - regulators and supervisors, rating agencies, debt investors, policyholders and shareholders - are considered. Managements' views and plans regarding the future development of the business and investment activities are used when analysing the future capital requirement. Within the planning process it is considered how changes either in business volumes and business mix or changes in existing risk factors may affect profitability, risks and capital needs. The results of these considerations are reflected in risk management and capitalization recommendations to the business management and the Board of Directors. The recommendations are also affected by the external stakeholders' views on the capitalization of Sampo Group.

Capital Management Actions

A prudent assessment of capital adequacy and a careful capital planning are important phases when creating an understanding of the actions that maintain a proper balance between capital and risks. In Sampo Group, the proactive management of risks and capitalization are seen as the most important phase in the risk and capital management process. Risk limits and decision making authorizations are set up in a way that they, together with profitability targets, facilitate business and investment units to take well considered risks. The limits reflect the capital adequacy targets and risk appetite in general.

P&C Insurance Risks

P&C insurance activities are subject to If P&C´s main underwriting principles; the company should always have the necessary knowledge, expertise and data to understand and quantify the risks.

P&C insurance risks can be split into three components:

Premium risk is the risk that the claims cost for future claims exceeds the expected level. This could be due to e.g. inadequate pricing, risk concentration, improper reinsurance coverage or due to unexpected deviations in the frequency of claims (i.e. the number of claims incurred during the period being higher than expected) and / or in the size of claims (i.e. claims when they occur being larger than anticipated).
Reserve risk is the risk that technical provisions are not sufficient to cover the cost for already incurred claims and results from fluctuations in the timing and amount of claim settlements.
Catastrophe risk is the risk of low frequency, high severity events, such as natural catastrophes, that are not captured adequately by the premium risk or reserve risk.

This section presents the development of P&C insurance risks during 2010. In addition, the P&C insurance risk management principles are presented.

Premium and Catastrophe Risks

P&C insurance undertakes the obligation to indemnify the insured in case of claims, and in exchange, the insured pays a premium. A crucial factor contributing to the profitability of P&C insurance operations is the ability to accurately estimate claims and administrative costs and thereby correctly price the insurance contracts correspondingly.

Given the inherent uncertainty of P&C insurance there is a risk that the future claims are unexpectedly frequent and/or high. Examples include large fires, natural catastrophes such as severe windstorms and unforeseen increases in the frequency or the average size of small and medium-sized claims. Such deviations can be purely random, i.e. an effect of the inherent uncertainty of the claims cost. The deviations can also be the result of more systematic and permanent changes in e.g. inflation, legislation or exposures. Random deviations are significant in the Industrial insurance business, where claims could potentially be very large, e.g. a fire in a large factory. Systematic deviations to a larger degree affect the Private business line, which is characterised by a large number of small claims and consequently a lower degree of random variation.

Premium and Catastrophe Risk Management

The Underwriting Committee is responsible for the monitoring of compliance of the underwriting principles as defined by the Underwriting Policy (UW Policy). The UW Policy is the principal document for underwriting activities. It sets general principles, restrictions, limits and directions for the underwriting activities. The Board of Directors of If P&C approves the UW Policy at least annually.

The UW Policy is supplemented with detailed underwriting guidelines which outline how to conduct underwriting within each business area. These guidelines cover, among other things, tariff and rating models for pricing, guidelines in respect of standard conditions and manuscript wordings, as well as underwriting authorities, underwriting limits such as sums insured and lists risks that are not acceptable to undertake.

The business units manage underwriting risk on a day-to-day basis. Separate underwriting and pricing units are responsible for the tariffs and pricing of products related to the business area Private and smaller risks in the business area Commercial. In the business area Industrial and for more complex risks in the business area Commercial, the underwriting is based more on general principles and individual underwriting than strict tariffs. In general, pricing is based on statistical analyses of historical claims data and assessments of future developments of for instance claims inflation and claims frequency.

Given the large number of customers in P&C insurance and the fact that business is underwritten in different geographical areas and across several classes of insurance, the portfolio is well diversified. The degree of diversification is shown in the figure "Breakdown of gross premiums by business area and country, If P&C, 31 Dec 2010" and in the table "Technical provisions per product and country, If P&C, 31 Dec 2010".

Over 80 per cent of the premium income is related to the business areas Private and Commercial which are characterised by a large number of small claims and consequently a lower degree of random variation.

Despite the large degree of diversification, underwriting risk concentrations may still arise through for example exposures to natural disasters, such as winter storms and floods. The most exposed geographical areas to such disasters are Denmark, Norway and Sweden. In addition, single large claims can potentially have a significant impact on the result. The risk of severe outcomes is mitigated by purchasing reinsurance. Since 2003, a Nordic-wide reinsurance program has been in place in If P&C. In 2010 the retentions levels for different classes of insurance were between SEK 100 million (approximately EUR 11.2 million) and SEK 200 million (approximately EUR 22.3 million) per risk and SEK 200 million per event.

Guidelines for the purchase of reinsurance are stipulated in If P&C's Reinsurance Policy. The need and optimal choice of reinsurance is evaluated by use of the internal model and the cost of reinsurance should be favourable compared to the cost of capital. Other factors taken into account when purchasing reinsurance are result volatility and the impact on capital requirements (regulatory, economic and rating).

Reserve Risk

Defining the technical provisions in P&C insurance always includes an element of uncertainty as the final number and sizes of incurred claims are not known. Claims are usually reported to If P&C with some delay and in many cases it takes additional time to determine the final indemnity.

The uncertainty of technical provisions is normally larger for new portfolios for which complete run-off statistics are not yet available and for portfolios that include long-tailed business. Examples of portfolios that include long-tailed business are Workers' Compensation (WC), Motor Third Part Liability (MTPL), Personal Accident, and Liability insurance.

What are technical provisions in P&C insurance?

Technical provisions are divided into provisions for unearned premiums and provisions for claims outstanding in the company's balance sheet. Provisions for unearned premiums are recognised in the balance sheet at the time contracts are incepting. These are intended to cover anticipated claims costs and operating expenses during the remaining time of insurance contracts in force. Provisions for claims outstanding on the other hand, are intended to cover the anticipated future payments of all claims incurred, including claims not yet reported to the company.

The book value of technical provisions and the duration broken down by product and country is shown in table "Technical provisions per product and country, If P&C, 31 Dec 2010".

		Sweden		Norway		Finland		Denmark	Total
	EURm	Duration	EURm	Duration	EURm	Duration	EURm	Duration	EURm	Duration
Motor	2,447	8.0	850	3.3	824	9.6	127	2.7	4,249	7.2
Workers' compensation	0	0.0	416	6.2	997	10.2	264	6.1	1,677	8.7
Liability	326	6.0	161	3.5	131	3.3	80	2.6	698	4.4
Accident	221	5.3	292	2.7	92	1.9	59	2.7	664	3.3
Property	399	1.3	586	1.1	183	0.9	117	0.8	1,285	1.1
Cargo	34	1.3	29	0.8	34	0.8	21	0.8	118	1.0
Total	3,426	6.7	2,334	3.1	2,262	8.4	670	3.7	8,691	5.9

Technical provisions per product and country, If P&C, 31 Dec 2010

In product lines such as MTPL and WC, legislation and hence the product features and risks, differ significantly between countries. For instance, some of the Finnish, Swedish and Danish provisions for these lines include annuities which are sensitive to changes in mortality assumptions and discount rates. The proportion of the technical provisions related to MTPL and WC is 59 per cent.

The technical provisions for many lines of business are sensitive to changes in inflation. Inflation risk refers to the risk that technical provisions have to be increased due to higher inflation than originally expected. The anticipated inflation trend is observed in all provisions, but is of highest importance for claims settled over a long period of time. For long-tailed business, such as MTPL and WC, assessments are made regarding the expected claims inflation. These are based on external assessments of the inflation trend (e.g. consumer price index and wage index) combined with If P&C's own evaluation of cost increases for various types of claims. Inflation risk in the technical provisions is taken into account in the investment strategy of If P&C. The sensitivity towards inflation differs between countries due to the different national rules.

The sensitivity of If´s technical provisions to an increase in inflation, an increase in life expectancy and a decrease in the discount rate is presented in the table "Sensitivities of technical provisions, If P&C, 2010".

Sensitivities of technical provisions, If P&C, 2010

Technical provision item	Risk factor	Change in risk parameter	Country	E ect EURm
Nominal reserves	In ation increase	Increase by 1%-point	Sweden	250.2
			Denmark	16.0
			Norway	87,8
			Finland	25.4
Discounted reserves (annuities and part of Finnish IBNR)	Decrease in discount rate	Decrease by 1%-point	Sweden	56.9
			Denmark	8.4
			Finland	153.7
Annuities	Decrease in mortality	Life expectancy increase by 1 year	Sweden	10.4
			Denmark	0.4
			Finland	29.0

If P&C's technical provisions are further analysed by claims year before and a er reinsurance in the claims cost trend tables. These are disclosed in the Note 27 to the Financial Statements.

Reserve Risk Management

The Board of Directors of If P&C approves guidelines governing the calculation of technical provisions. If P&C's Chief Actuary is responsible for developing and implementing guidelines on the calculation of technical provisions and for assessing whether the overall level of provisions is su cient. The Chief Actuary issues a report on the adequacy of technical provisions at least quarterly, which is submitted to the Board of Directors, If's Risk Control Committee and If P&C's CEO.

The Actuarial Committee is a preparatory and advisory board for If P&C's Chief Actuary. The committee makes recommendations on policies and guidelines for technical calculations. It also monitors technical provisions and gives advice to If P&C's Chief Actuary regarding their adequacy.

Analyses of the adequacy of technical provisions are made by If P&C's actuaries. The actuaries monitor the levels of technical provisions on a continuous basis in order to ensure that they comply with the established guidelines. The actuaries also develop methods and systems to support these processes.

Actuarial estimates are based on historical claims data and any other information that is available at the closing date. Factors that are monitored are e.g. loss development trends, the level of unpaid claims, changes in legislation, legal cases and economic conditions. The methods used in calculating technical provisions include the Chain Ladder and the Bornhuetter-Fergusson methods combined with projections of number of claims and average claim costs.

Sensitivity of underwriting result and hence underwriting risk is presented by changes in certain ke gures in the table "Sensitivity test of underwriting result, If P&C, 31 Dec 2010 and 31 Dec 2009".

Sensitivity test of underwriting result, If P&C, 31 Dec 2010 and 31 Dec 2009

Ke gure	Current level (2010)	Change in current level	2010	2009
Combined ratio, business area Private	93.0%	+/- 1 percentage point	+/- 21	+/- 20
Combined ratio, business area Commercial	93.5%	+/- 1 percentage point	+/- 12	+/- 11
Combined ratio, business area Industrial	90.6%	+/- 1 percentage point	+/- 4	+/- 4
Combined ratio, business area Baltics	93.4%	+/- 1 percentage point	+/- 1	+/- 2
Premium level	3,894	+/- 1%	+/- 39	+/- 36
Claims frequency	2,943	+/- 1%	+/- 29	+/- 27
Ceded reinsurance premium	202	+/- 10%	+/- 20	+/- 22

E ect on pretax pro t, EURm

Life Insurance Risks

Insurance risks in the life insurance business encompass biometric risks, discount rate risk in technical provisions and other life insurance risks, that is, surrender risk, lapse risk and expense risk.

This section presents the development of these life insurance risks during 2010. In addition, the life insurance risk management principles are presented.

Biometric Risks

Biometric risks in life insurance refer mainly to the risk that the company has to pay larger mortality, disability or morbidity bene ts to insured or that the company is obliged to pay pensions to the policyholder for a longer time (longevity risk) than the company has anticipated when pricing the policies.

Because Mandatum Life's right to increase tari s or change terms and conditions is restricted, longer maturities of policies increase the biometric risks. If the premiums turn out to be inaccurate and pricing cannot be changed a erwards, technical provisions have to be supplemented with an amount corresponding to the expected losses.

Table "Claim ratios a er reinsurance, Mandatum Life, 2010 and 2009" shows the insurance risk result in Mandatum Life's Finnish life insurance policies. The ratio of the actual claims costs to the assumed was 78 per cent in 2010 (87 per cent in 2009). Year 2010 risk result includes a one-o tem of EUR 4.7 million which is due to a change in technical basis of claims reserve.

Sensitivity of the insurance risk result can also be assessed on the basis of the information in the table. For instance an increase of mortality by 100 per cent would increase the amount of bene t payments from EUR 14 million to EUR 28 million.

Claim ratios a er reinsurance, Mandatum Life, 2010 and 2009

		2010		2009
EURm	Risk income	Claim expense	Claim ratio	Risk income	Claim expense	Claim ratio
Life insurance	37.9	21.7	57%	40.5	24.8	61%
Mortality	23.4	14.2	61%	26,8	15.4	57%
Morbidity	14.5	7.5	52%	13.7	9.4	69%
Pension	61.0	55.5	91%	49.9	53.9	108%
Individual pension	9.5	10.0	106%	9.9	10.4	105%
Group pension	51.5	45.5	88%	40.0	43.5	109%
Mortality	46.2	42.3	92%	34.9	39.4	113%
Disability	5.3	3.2	60%	5.1	4.1	80%
Mandatum Life	98.9	77.2	78%	90.4	78.7	87%

Longevity risk is the most critical biometric risk in Mandatum Life. Most of the longevity risk arises from the Group pension portfolio. The main mortality uncertainties in the Group pension portfolio are related to the socio-economic structure of the insured and the future mortality trend among the relatively old insured. In the individual pension portfolio the longevity risk is less signi cant because most individual pension policies ar xed term annuities including death cover compensating the longevity risk.

The annual longevity risk result and longevity trend is analysed regularly. The longevity risk result of group pension for the year 2010 was EUR 3.9 million, but last two years' total longevity result is slightly negative. The assumed life expectancy related to the technical provisions for group pensions was revised in 2002 and additional changes were made 2007.

Mortality risk result is positive and the mortality trend has been favourable to the company. Possible pandemics are seen as the most signi cant risk that could adversely a ect the mortality risk result.

The insurance risk result of other biometric risks has been pro table in total, although the di erent risk results di er considerably. In a longer term, disability and morbidity risks are mitigated by the company's right to raise insurance premiums for existing policies in case the claims experience deteriorates.

The insurance portfolio of Mandatum Life is well-diversi ed and does not include major concentration risks. To further mitigate the e ects of possible risk concentrations, Mandatum Life has the catastrophe reinsurance in place.

In addition to the biometric risks, Mandatum Life is exposed to other risks such as discount rate risk, lapse risk and surrender risk.

Discount Rate Risk in Technical Provisions

Discount rate risk in technical provisions is the main risk a ecting the adequacy of technical provisions. The guaranteed interest rate in policies i xed for the whole policy period. Thus, if market interest rates and expected investment returns fall, technical provisions may have to be supplemented.

In most with-pro t policies, the guaranteed interest rate is 3.5 per cent. In individual policies sold in Finland before 1999, the guaranteed interest rate is 4.5 per cent, which is also the statutory maximum discount rate of these policies. With respect to these policies, the maximum discount rate used when discounting technical provisions has been decreased to 3.5 per cent. As a result, technical provisions have been supplemented with EUR 86 million (EUR 95 million in year 2009). In addition, EUR 61 million has been reserved to lower the interest rate of with-pro t liabilities to 2.5 per cent in 2011 and to 3.0 per cent in 2012. So due to relatively low market interest rates, Mandatum Life has increased liabilities in total by EUR 147 million.

The provisions related to each product type and guaranteed interest rates are shown in table "Analysis of the change in provisions before reinsurance, Mandatum Life, 2010". The table also shows the change in each category during 2010.

Analysis of the change in provisions before reinsurance, Mandatum Life, 2010

EURm	Liability 2009	Premiums	Claims paid	Expense charges	Guaran teed interest	Bonuses	Other	Liability 2010	Share %
Mandatum Life parent company
Unit-linked total	2,258	786	-320	-36	0	0	288	2,977	40%
Individual pension insurance	646	93	-7	-12	0	0	109	829	11%
Individual life	1,032	197	-129	-11	0	0	89	1,178	16%
Capital redemption operations	398	454	-181	-9	0	0	66	729	10%
Group pension	183	42	-3	-4	0	0	23	241	3%
With-pro t and others total	4,413	271	-436	-36	158	1	21	4,391	58%
Group pension	2,456	169	-186	-8	84	1	-15	2,500	33%
Guaranteed rate 3.5%	2,419	159	-184	-7	83	0	-12	2,458	33%
Guaranteed rate 2.5% or 0.0%	37	10	-2	-1	1	0	-3	42	1%
Individual pension insurance	1,383	34	-145	-8	61	0	-4	1,322	18%
Guaranteed rate 4.5%	1,202	24	-126	-7	55	0	-14	1,134	15%
Guaranteed rate 3.5%	150	7	-15	-1	5	0	8	154	2%
Guaranteed rate 2.5% or 0.0%	32	4	-4	0	1	0	2	34	0%
Individual life insurance	351	36	-53	-10	12	0	-2	335	4%
Guaranteed rate 4.5%	87	6	-10	-2	4	0	-2	83	1%
Guaranteed rate 3.5%	214	13	-34	-4	7	0	-1	195	3%
Guaranteed rate 2.5% or 0.0%	51	17	-9	-4	1	0	1	57	1%
Capital redemption operations	57	1	-37	0	1	0	0	21	0%
Guaranteed rate 3.5%	49	0	-34	0	1	0	0	15	0%
Guaranteed rate 2.5% or 0.0%	8	1	-3	0	0	0	0	6	0%
Future bonus reserves	18	0	0	0	0	0	-18	0	0%
Reserve for decreased discount rate	95	0	0	0	0	0	52	147	2%
Assumed reinsurance	3	2	-1	0	0	0	-1	3	0%
Other liabilities	49	30	-14	-11	1	0	9	64	1%
Mandatum Life parent company total	6,671	1,057	-756	-72	158	1	309	7,369	98%
Subsidiary SE Sampo Life Insurance Baltic	119	60	-26	-3	1	0	15	165	2 %
Unit-linked	100	58	-24	-3	0	0	15	147	2 %
Others	18	3	-2	-1	1	0	-1	18	0 %
Mandatum Life group total	6,790	1,117	-782	-75	159	1	323	7,534	100

Technical provisions related to with-pro t policies still constitute a larger part of the total technical provisions compared to unit-linked policies. However, the amount of unit-linked technical provisions has been increasing whereas the amount of technical provisions related to with-pro t policies has remained stable during the past years. Thus, the proportion of unit-linked technical provisions of total technical provisions is increasing. The development of the structure and amount of Mandatum Life's technical provisions is shown in th gure "Development of with-pro t and unit-linked technical provisions, Mandatum Life, 2002-2010".

Table "Expected maturity of insurance and investment contracts before reinsurance, Mandatum Life, 31 Dec 2010" shows the expected maturity and duration of insurance and investment contracts of Mandatum Life. The sensitivity of technical provisions to changes in discount rates can be assessed on the basis of the durations shown in the table.

Expected maturity of insurance and investment contracts before reinsurance, Mandatum Life, 31 Dec 2010

EURm	Duration	2011-2012	2013-2014	2015-2019	2020-2024	2025-2029	2030-2034	2035-
Mandatum Life parent company
Unit-linked total	8.1	555	424	800	522	375	257	363
Individual pension insurance	11.5	41	73	195	182	154	113	142
Individual life	5.2	363	216	322	145	81	47	39
Capital redemption operations	8.1	141	118	225	135	89	60	109
Group pension	13.1	10	18	58	61	50	37	72
With-pro t and others total	8.6	1,129	868	1,644	1,156	833	582	946
Group pension	10.3	496	467	1,025	827	638	479	833
Guaranteed rate 3.5%	10.3	483	458	1,012	817	631	474	819
Guaranteed rate 2.5% or 0.0%	8.9	13	9	13	9	7	5	14
Individual pension insurance	6.4	334	323	498	274	160	81	82
Guaranteed rate 4.5%	6.4	290	283	435	238	135	66	66
Guaranteed rate 3.5%	7.0	35	33	53	30	21	13	12
Guaranteed rate 2.5% or 0.0%	6.9	8	7	9	6	4	2	4
Individual life insurance	5.3	143	58	92	41	27	17	28
Guaranteed rate 4,5 %	7.4	24	18	29	13	11	7	15
Guaranteed rate 3.5%	4.2	105	29	42	19	11	7	10
Guaranteed rate 2.5% or 0.0%	5.9	14	11	21	9	4	3	3
Capital redemption operations	2.7	16	1	2	1	1	2	0
Guaranteed rate 3.5%	0.5	15	0	0	0	0	0	0
Guaranteed rate 2.5% or 0.0%	8.9	1	1	2	1	1	2	0
Future bonus reserves	1.0	0	0	0	0	0	0	0
Reserve for decreased discount rate	3.7	77	17	25	14	7	3	4
Assumed reinsurance	0.5	3	0	0	0	0	0	0
Other liabilities	0.8	60	2	2	0	0	0	0
Mandatum Life parent company total	8.4	1,684	1292	2,444	1,678	1,208	839	1,309
Subsidiary SE Sampo Life Insurance Baltic		35	15	41	29	12	19	33
Unit-linked		31	13	35	24	10	19	32
Other		4	2	6	5	2	1	1
Mandatum Life group total		1,720	1,306	2,485	1,707	1,220	859	1,342

Other Life Insurance Risks

The most significant other insurance risks arise from the uncertainty related to the behaviour of the policyholders.

The policyholders have the right to cease paying premiums (lapse risk) and the possibility to interrupt their policies (surrender risk). Being able to keep lapse and surrender rates in a low level are crucial success factors especially for the expense result of unit-linked business. From ALM point of view surrender and lapse risks are immaterial because in Mandatum Life, approximately 90 per cent of with-profit policies are pension policies in which surrender is possible only in exceptional cases. For ALM risk, surrender risk is therefore only relevant in individual life and capital redemption policies. In these policies, the risk is reduced by the relatively short maturity of the contracts. Furthermore, the supplements to liabilities are not paid out at surrender which also reduces the surrender risk related to the with-profit policies.

Surrender and lapse risks are taken into account when the company is analysing its ALM risk. This is described in more detail in the Market risks section.

The company is also exposed to expense risk because expense charges may not be enough to cover the realised expenses.

Life Insurance Risk Management

Biometric risks are managed by careful risk selection, by pricing that reflects the risks and costs, by setting upper limits for the protection granted and by use of reinsurance.

Reinsurance is used to limit the amount of individual mortality and disability risks. The Board of Directors annually determines the maximum amount of risk to be retained for the company's own account, which for Mandatum Life is EUR 0.5 million per insured. To mitigate the effects of possible catastrophes, Mandatum Life participates in the catastrophe reinsurance bought jointly by Finnish life insurance companies.

Risk selection is part of the day-to-day business routines in Mandatum Life. Mandatum Life's Underwriting Policy sets principles for risk selection and limits for sums insured. Compliance with the principles and limits set in the Underwriting Policy is monitored continuously.

The risk result is followed actively and analysed thoroughly annually. Mandatum Life measures the efficiency of risk selection and adequacy of tariffs by collecting information about the actual claims expenditure for each product line and each type of risk and comparing it to the claims expenditure assumed in insurance premiums of every risk cover. Also administration and acquisition expenses are monitored annually.

Technical provisions are analyzed and the possible supplement needs are assessed regularly. Assumptions related to the technical provisions are reviewed annually. Adequacy of technical provisions is tested quarterly. Tariffs for new policies are set, the Underwriting Policy and assumption used in calculating technical provisions are updated based on adequacy tests and risk result analysis. Tariffs and prices, as well as the reinsurance principles and reserving principles are reviewed and approved annually by the Board of Directors of Mandatum Life.

Market Risks

Market risks refer to fluctuations in the financial results and capital caused by changes in market values of financial assets and liabilities as well as technical provisions.

In Sampo Group, market risks are examined both from an ALM and an investment portfolio risks perspective and both angles are taken into account when risks are managed within the investment portfolio management framework.

ALM Risks

In Sampo Group, ALM risks are managed as a part of managing the investment portfolios. ALM risks are analyzed regularly and these analyses together with actual capitalization, regulatory requirements and rating targets are taken into account when defining the Group companies' investment policies.

The asset and liability management process applied in Sampo Group is illustrated in the figure "Asset and liability management process in Sampo Group".

If P&C and Mandatum Life may apply slightly different approaches which are based on the specific characteristics of their businesses.

Asset and Liability Management in If P&C

If P&C´s approach in asset and liability management is defined in accordance with the above described group wide principles.

Most of the technical provisions in If P&C are stated in the balance sheet in nominal terms. The provisions for annuities are discounted, and potential changes in the discount rates will affect the level of technical provisions in the company's balance sheet. The discount rates vary between countries mainly due to differences in legislation but they are at least indirectly impacted by the prevailing market interest rate

environment. Hence, from an accounting perspective, the company is mainly exposed to changes in expected future claims inflation and in the regulatory discount rate. The economic value of these reserves, i.e. the present value of future claims payments, is however exposed to changes in market interest rates.

When deciding the investment allocation the first step is to derive a replicating portfolio based on the cash flow of technical provisions and their sensitivities, in economic value, to changes in inflation, currencies and yield curves. Thereafter the investment allocation and limits for surplus capital, and thereby the total investment allocation, is derived by taking risk-bearing capacities, regulatory requirements, rating targets and risk tolerance into account.

In order to enhance returns with acceptable risks, the portfolio may also contain equities in addition to fixed income investments. Within the limits set in the Investment Policy, investments are managed actively by utilising market views.

Asset and Liability Management in Mandatum Life

In Mandatum Life, the approach to ALM risk management is also based on an analysis of technical provisions. A common feature for all with-profit technical provisions is the guaranteed rate and bonuses based on principle of fairness. The cash flows of Mandatum Life´s technical provisions are relatively well predictable because in most of the company's with-profit products, surrenders and extra-investments are not possible. The company's estimates for claims costs do not contain any significant element of inflation risk and thus the inflation risk in Mandatum Life is mainly related to administrative expenses.

The most significant interest rate risk in the life insurance business is that fixed income investments will not over a long period of time generate a return at least equal to the guaranteed interest rate of technical provisions. This risk is managed through constant monitoring of the duration gap between technical provisions and fixed income investments, and the adequacy of capital is managed by the use of internal models in different market situations.

Mandatum Life has prepared for low interest rates on the liability side by e.g. reducing the minimum guaranteed interest rate in new contracts and by supplementing the technical provisions by applying a lower discount rate. In addition, existing contracts have been changed to accommodate improved management of reinvestment risk.

The long-term target for investments is to provide sufficient return to cover the guaranteed interest rate plus bonuses based on principle of fairness as well as the shareholder's return requirement with acceptable level of risk. The company manages its investment portfolio actively.

The Board approves the Investment Policy annually, which sets principles and limits for investment activities. The Investment Policy also includes measures and limits for maximum acceptable market risk. These measures and limits are based on both Solvency I and Solvency II type of approaches. When it comes to the Solvency I type of approach, limits are defined for the regulatory solvency capital in relation to the regulatory capital requirement using a VAR-analysis of the investment assets. In the Solvency II type of approach, limits are set based on different confidence levels in addition to the 99.5 per cent level used in Sampo Group. ALCO reports limit breaches to the Board who makes the decisions related to the capitalization and the market risks in the balance sheet. The general objective is to maintain the required solvency and to ensure that investments are sufficient and eligible for covering technical provisions.

Sampo plc's investment organization makes the day-to-day investment decisions based on principles set in Mandatum Life's Investment Policy. However, the most significant investment decisions are made by the Board. The ALCO regularly controls that limits and principles defined in the Investment Policy are followed.

Investment Portfolio Risks

Investments are managed according to the subsidiaries' investment policies. The most significant risks are equity risk, interest rate risk, credit spread risk and currency risks. Market risks also arise from real estate, private equity and hedge fund investments.

Sampo plc's Chief Investment Officer is responsible for all investments within the limitations of the companies' Investment Policies. The insurance subsidiaries and the parent company have a common Group-wide infrastructure for investment management as well as performance and risk reporting.

Market risk control is separated from portfolio management activities. Middle-office functions measure risks and performance and control limits on a daily basis. Market risks and limits are controlled by the ICC in If P&C and ALCO in Mandatum Life at least on a monthly basis. These committees are responsible for the control of investment activities within the respective legal entity. The aggregated market risks and concentrations on Sampo Group level are controlled by the Group's Audit Committee at least quarterly.

Sampo Group has a thorough understanding of Nordic markets and issuers and consequently Sampo Group's direct investments are mainly made into Nordic securities. When investing in non-Nordic securities, fund investments are mainly used. These funds are primarily used as a tool in tactical asset allocation when seeking return and secondarily in order to increase diversification.

Asset Allocations and Investment Returns

The total amount of Sampo Group´s investment assets in 2010 was EUR 18,301 million (16,593 million in 2009). The composition of the investment portfolios in If P&C, Mandatum Life and Sampo plc at year end and in comparison to year end 2009 is shown in figure "Development of investment portfolios, If P&C, Mandatum Life and Sampo plc, 31 Dec 2010 and 31 December 2009".

The composition of the investment portfolios is reported on the basis of fair values of investments. These fair values are determined either on the basis of direct market quotes or by using various valuation models. More information on the valuation methods of the investment assets is presented in note 17 in the financial statements.

At year-end, the strong solvency position of If P&C and Mandatum Life allowed the companies to aim for higher expected returns by deviating from the portfolio replicating the cash flows of technical provisions.

Sampo plc's own market risks are limited. Interest rate risk arising from the company's gross debt and the liquidity reserve invested into short-term money market securities is the company's most significant market risk together with the refinancing risk related to gross debt. Most of Sampo plc's debt is tied to short-term reference rates. This mitigates the Group-level interest rate risk because, while lower interest rates would reduce subsidiaries' investment returns in the long-term, the interest expense in Sampo plc would be lower.

Mandatum Life and If P&C have somewhat differing investment policies, because Mandatum Life is able to aim for higher returns than If P&C due to the different structures of technical provisions. Figures "Annual investment returns at fair values, If P&C, 2001-2010" and "Annual investment returns at fair values, Mandatum Life, 2001-2010" present the historical development of investment returns. Mandatum Life has had higher average return with higher volatility.

The total average investment return of the Group's combined investment portfolios (including Sampo plc) in 2010 was 8.7 per cent (13.5 per cent in 2009).

In order to examine potential concentrations and risks on a more detailed level a more comprehensive breakdown of the composition of investment assets is shown in the tables "Investment allocation according to asset classes, sectors and fixed income investments according to rating, If P&C, 31 Dec 2010", "Investment allocation according to asset classes, sectors and fixed income investments according to rating, Mandatum Life, 31 Dec 2010" and "Investment allocation according to asset classes, sectors an xed income investments according to rating, Sampo Group, 31 Dec 2010". Due to di erences in the treatment of derivatives, th gures in these tables are not fully comparable with other tables in this annual report.

Investment allocation according to asset classes, sectors an xed income investments according to rating, If P&C, 31 Dec 2010

		AA+ -	A+ -	BBB+ -	BB+ -		Not	Fixed income	Equi		Deriva tives (counter		Change 31 Dec
EURm	AAA	AA	A	BBB	C	D	rated	total	ties	Other	party risk)	Total	2009
Asset-backed Securities	0	0	0	0	0	0	0	0	0	0	0	0	0
Basic Industry	0	0	0	44	128	0	152	324	46	0	0	370	-37
Capital Goods	0	0	18	18	8	0	27	70	498	0	0	568	202
Consumer Products	0	5	0	248	15	0	84	352	308	0	0	660	172
Covered Bonds	3,515	52	0	1	0	0	0	3,567	0	0	0	3,567	716
Energy	0	7	0	4	0	0	498	509	36	0	0	545	112
Financial Institutions	2	726	1,744	230	86	0	19	2,807	0	0	9	2,817	3
Governments	738	12	4	17	0	0	52	823	0	0	0	823	-230
Index-linked Bonds	42	9	146	64	27	0	11	299	0	0	0	299	-445
Insurance	0	0	0	6	0	0	0	6	200	0	0	206	9
Media	0	0	0	0	8	0	28	36	0	0	0	36	27
Municipalities	312	0	0	0	1	0	0	313	0	0	0	313	247
Real Estate	0	0	0	0	0	0	13	13	0	78	0	91	23
Services	0	0	0	22	18	0	11	51	1	0	0	52	1
Technology and Electronic	0	0	0	0	0	0	0	0	3	0	0	3	-22
Telecommunications	0	0	45	39	20	0	0	103	48	0	0	151	10
Transportation	0	0	0	1	0	0	190	191	10	0	0	201	-28
Utilities	0	0	236	26	0	0	25	287	1	0	0	288	72
Others	0	26	0	0	0	0	34	60	23	0	0	83	26
Funds	0	0	0	0	98	0	25	122	475	28	0	625	145
Total	4,607	838	2,193	720	408	0	1,168	9,934	1,648	106	9	11,697	1,002
Change 31 Dec 2009	-110	96	263	17	39	-2	218	520	512	-19	-10	1 002

Investment allocation according to asset classes, sectors an xed income investment according to rating, Mandatum Life, 31 Dec 2010

			A+		BB+						Deriva tives		Change 31
		AA+ -	-	BBB+ -	-		Not	Fixed income	Equi		(counter		Dec
EURm	AAA	AA	A	BBB	C	D	rated	total	ties	Other	party risk)	Total	2009
Asset-backed Securities	0	0	4	3	0	0	12	18	0	0	0	18	2
Basic Industry	0	0	4	50	278	0	126	458	169	4	0	631	117
Capital Goods	0	3	121	61	0	0	7	192	155	0	0	347	22
Consumer Products	0	0	28	66	3	0	65	162	53	7	0	221	46
Covered Bonds	90	42	0	0	0	0	0	133	0	0	0	133	-4
Energy	0	0	15	0	0	0	48	63	19	0	0	82	43
Financial Institutions	0	694	813	93	71	0	20	1,691	19	23	26	1,759	-219
Governments	107	0	0	0	0	0	0	107	0	0	0	107	73
Index-linked Bond	0	0	0	0	0	0	0	0	0	0	0	0	0
Insurance	0	0	28	20	0	0	25	73	17	0	0	89	4
Media	0	0	0	0	0	0	0	0	59	0	0	59	-3
Municipalities	0	0	0	0	0	0	0	0	0	0	0	0	0
Real Estate	0	0	0	0	0	0	0	0	0	143	0	143	-13
Services	0	0	0	7	17	0	0	24	50	9	0	83	18
Technology and Electronic	0	0	0	18	0	0	14	31	83	0	0	115	6
Telecommunications	0	0	52	90	0	0	0	142	24	0	0	167	14
Transportation	0	0	0	0	0	0	32	32	6	0	0	38	-7
Utilities	0	13	167	67	0	0	0	248	54	0	0	302	2
Other	0	0	7	0	0	0	24	31	2	0	0	33	-15
Funds	0	0	0	0	210	0	13	223	976	438	0	1,638	452
Total	198	753	1,239	474	580	0	384	3,627	1,686	624	26	5,963	538
Change 31 Dec 2009	98	-36	-288	23	-56	0	213	-48	451	153	-18	538

Investment allocation according to asset classes, sectors an xed income investments according to rating, Sampo Group, 31 Dec 2010

		AA+ -	A+ -	BBB+ -	BB+ -		Not	Fixed income	Equi		Deriva tives (counter		Change 31 Dec
EURm	AAA	AA	A	BBB	C	D	rated	total	ties	Other	party risk)	Total	2009
Asset-backed Securities	0	0	4	3	0	0	12	18	0	0	0	18	2
Basic Industry	0	0	4	94	405	0	278	781	215	4	0	1 000	80
Capital Goods	0	3	139	79	8	0	34	262	653	0	0	915	224
Consumer Products	0	5	28	314	18	0	149	514	361	7	0	882	218
Covered Bonds	3,605	94	0	1	0	0	0	3,700	0	0	0	3,700	712
Energy	0	7	15	4	0	0	546	572	56	0	0	627	155
Financial Institutions	2	1,929	2,629	323	158	0	44	5,085	19	23	54	5,180	-53
Governments	845	12	4	17	0	0	52	930	0	0	0	930	-157
Index-linked Bonds	42	9	146	64	27	0	11	299	0	0	0	299	-445
Insurance	0	0	28	26	0	0	25	79	234	0	0	312	13
Media	0	0	0	0	8	0	28	36	59	0	0	95	24
Municipalities	312	0	0	0	1	0	0	313	0	0	0	313	247
Real Estate	0	0	0	0	0	0	13	13	0	227	0	240	3
Services	0	0	0	29	35	0	11	75	51	9	0	134	19
Technology and Electronics	0	0	0	18	0	0	14	31	86	0	0	117	-16
Telecommunications	0	0	97	129	20	0	0	246	72	0	0	318	24
Transportation	0	0	0	1	0	0	222	222	16	0	0	239	-35
Utilities	0	13	403	93	0	0	25	535	55	0	0	590	74
Other	0	26	7	0	0	0	58	91	27	1	0	119	12
Funds	0	0	0	0	308	0	37	346	1,451	482	0	2,279	595
Total	4,805	2,099	3,504	1,193	987	0	1,558	14,147	3,353	753	54	18,307	1,696
Change 31 Dec 2009	-13	558	-382	40	-17	-2	433	617	965	124	-10	1,696

The weights of covered bonds, non-rated bonds and fund investments in the portfolio were actively increased, whereas the weights of indexlinked bonds and government bonds were reduced. The total exposure and especially the equity investments increased in value.

Fixed Income Investments

Table "Fixed income investments by type of instrument excluding derivatives, If P&C, Mandatum Life and Sampo Group , 31 Dec 2010" presents the amount and average maturity o xed income investments of Sampo Group by type of instrument. Sampo Group has a considerable amount of credit risk investments and is exposed to credit spread risk that is measured and managed as a part of the investment portfolio management. The limit setting is described in detail in the Credit risks section.

The average maturity o xed income investments that a ects the size of credit risk was 2.9 years in If P&C and 3.5 years in Mandatum Life. When it comes to interest rate sensitivity, the average duration o xed income investments including derivatives in If P&C was 1.7 years and in Mandatum Life 2.7 years.

During 2010, the proportion of money market securities and cash decreased from 14 per cent to 13 per cent. The proportion of high yield bonds increased to 15 per cent (14 per cent in 2009).

		If P&C			Mandatum	Life		Sampo	Group
	EURm	% o xed income portfolio	Average maturity (years)	EURm	% o xed income portfolio	Average maturity (years)	EURm	% o xed income portfolio	Average maturity (years)
Money market and cash	581	6%	0.2	613	17%	0.2	1,774	13%	0.2
Government bonds	1,134	11%	3.7	108	3%	27.5	1,242	9%	5.7
Covered bonds	3,567	36%	3.2	133	4%	5.0	3,700	26%	3.3
Investment grade bonds	2,271	23%	2.8	1,388	38%	2.8	3,659	26%	2.8
High-yield bonds	1,354	14%	2.8	795	22%	4.0	2,155	15%	3.3
Asset-backed securities	0	0%	0.0	18	1%	4.0	18	0%	4.0
Sub-ordinated loans	693	7%	2.2	531	15%	3.0	1,223	9%	2.6
Policy loans	0	0%	0.0	25	1%	3.8	25	0%	3.8
Swedish index linked bonds	299	3%	4.8	0	0%	0.0	299	2%	4.8
Total	9,899	100%	2.9	3,611	100%	3.5	14,096	100%	3.0

Fixed income investments by type of instrument excluding derivatives, If P&C, Mandatum Life and Sampo Group, 31 Dec 2010

Equity Investments

The equity investments of Sampo Group totalled EUR 3,353 million at year end 2010 (2,389 million in 2009). The equity portfolios of both If P&C and Mandatum Life have long-term investment horizons. During 2010, the increase in the proportion of equity investments was due to the rise in equity prices as well as net purchases in both companies.

At year end 2010 the exposure of If P&C was EUR 1,648 million (1,136 million in 2009). The proportion of equities in If P&C's investment portfolio was 14.1 per cent at year-end. The equity portfolio consists of listed shares of Nordic companies as well as a global fund portfolio. Mandates for investments are given in the Investment Policy.

At year end 2010 the exposure of Mandatum Life was EUR 1,686 million (1,235 million in 2009). The Nordic equity portfolio is managed by Sampo Group's Investment Management unit while the equity investments outside the Nordic area are mainly managed through funds or external asset managers.

The breakdown of the equity exposures of Sampo Group by geographical regions are shown i gures "Breakdown of equity investments by geographical regions, Sampo Group, 31 Dec 2010", "Breakdown of equity investments by geographical regions, If P&C, 31 Dec 2010" and "Breakdown of equity investments by geographical regions, Mandatum Life, 31 Dec 2010".

The geographical emphasis in Sampo Group's equity investments is in Nordic companies. The proportion of Nordic companies' equities corresponds to 57 per cent of the total equity portfolio. This is in line with Sampo Group's Nordic focus and the fact that technical provisions relate to the Nordic currencies.

The sector allocation of direct equity investments in Sampo Group is shown in table "Investment allocation according to asset classes, sectors and fixed income investments according to rating, Sampo Group, 31 Dec 2010". The largest sectors are capital goods, consumer products, insurance due to the Topdanmark holding and basic industry. Equity investments made through investment funds accounted for 43 per cent of the entire equity portfolio.

Sampo Group's largest equity holdings are disclosed in the Notes to the Financial Statements (note 40).

Currency risks

Currency risk in general can be divided into transaction risk and translation risk. Transaction risk refers to the currency risk arising from contractual cash flows related to the insurance or investment operations or from hedges related to these cash flows. Translation risk refers to the currency risk that arises when consolidating the financial statements of subsidiaries that have a different base currency than the parent company.

In Sampo Group, the open transaction risk positions are considered and measured separately. The net position in each currency is the net of assets, liabilities and foreign exchange transactions denominated in the particular currency.

If P&C writes insurance policies that are mostly denominated in Scandinavian currencies and in euro. The currency transaction risk is reduced by matching technical provisions with investments in the corresponding currencies or by using derivatives. The open currency position is actively managed to enhance returns.

In Mandatum Life, currency transaction risk mainly arises from investments in other currencies than euro because the company's technical provisions are almost completely denominated in euro. Mandatum Life's currency strategy is based on active management of the currency position. The objective is to achieve positive return relative to a situation where the open currency risk exposure is fully hedged.

The currency transaction risk positions of If P&C and Mandatum Life against their home currency are shown in tables "Transaction risk position, If P&C, 31 Dec 2010" and "Transaction risk position, Mandatum Life, 31 Dec 2010". The tables show the net transaction risk exposures and the changes in the value of positions given a 10 % decrease in the value of the home currency.

Base currency: SEK	EUR	USD	JPY	GBP	SEK	NOK	CHF	DKK	LTL	LVL	Other	Net total
Insurance operations	-440	-165	0	-17	-80	-2,901	-1	-755	-1	-1	-11	-4,372
Investments	25	1,299	34	0	261	1,795	0	208	0	0	0	3,622
Derivatives	408	-1,112	-35	17	-186	1,062	0	537	0	0	7	698
Total transaction risk, net position	-7	22	-1	0	-5	-44	-1	-10	-1	-1	-4	-52
Sensitivity: SEK -10 %	-1	2	0	0	0	-4	0	-1	0	0	0	-5

Transaction risk position, If P&C, 31 Dec 2010

Options are included according to their delta-values.

Transaction risk position, Mandatum Life, 31 Dec 2010

Base currency: EUR	USD	JPY	GBP	SEK	NOK	CHF	DKK	EEK	LTL	LVL	Other	Net total
Technical provisions	0	0	0	-2	0	0	0	0	0	0	0	-2
Investments	1,084	22	171	16	31	16	5	17	5	1	271	1,639
Derivatives	-675	-41	-144	54	56	-16	0	0	0	0	-30	-797
Total transaction risk, net position	409	-19	27	68	87	0	5	17	5	1	241	840
Sensitivity: EUR -10 %	41	-2	3	7	9	0	0	2	1	0	24	84

Options are included according to their delta-values.

Sampo plc´s transaction risk position is related to SEK-denominated dividends paid by If P&C and to debt instruments issued in other currencies than euro.

In addition to transaction risk, Sampo Group and its insurance subsidiaries are also exposed to translation risk. Sampo Group´s consolidated financial statements are denominated in euro. Translation risk arises when entities with another base currency are consolidated into the Group financial statements. The effect of changes in foreign exchange rates result in translation differences which are recognised in the consolidated comprehensive income statement. Translation risks arise also within If P&C and to a lesser extent within Mandatum Life from their subsidiaries whose base currency is different from that of the respective parent company.

Real-estate, private equity and hedge fund investments

If P&C and especially Mandatum Life have real estate, private equity and hedge fund investments. The Investment Policies set limits for maximum allocations into these markets and products. On 31 December 2010, the combined share of the above mentioned investments was 4.1 per cent of the total investment portfolio. In If P&C the proportion was 0.9 per cent and in Mandatum Life it was 10.5 per cent.

Private equity and hedge funds are managed by external asset managers. The private equity portfolio is diversified both according to fund type and geographical areas. Hedge fund investments are diversified between underlying asset classes, fund types and investment styles. The real estate portfolio in Mandatum Life is managed by Sampo Group's real estate management unit. The portfolio includes direct investments in properties as well as indirect investments in real estate funds and shares and debt instruments in real estate companies. The main risks related to property investments are limited by diversifying holdings both geographically and by type of property.

Credit Risks

Credit risks in Sampo Group mainly consist of the issuer risk related to investment assets, and counterparty risk related to derivatives and reinsurance transactions.

The essential difference in terms of risk is that in the case of issuer risk, the entire market value of the instrument is at risk, whereas in the case of counterparty risk, it is only the possible positive market value of the contract that is at risk. Credit risk related to reinsurers arises through reinsurance receivables and through the reinsurers' portion of outstanding claims. Credit risk related to reinsurance mainly concerns If P&C, as the use of reinsurance in Mandatum Life is relatively limited.

In addition, credit risk arises from receivables from policyholders and other receivables related to commercial transactions. Credit risk exposure towards policyholders is very limited, because non-payment of premiums generally results in cancellation of the insurance policies. Also the credit risk exposures arising from other receivables related to commercial transactions are minor in Sampo Group.

This chapter describes the principles of credit risk management in general and the credit risk exposures related to reinsurance counterparties. Credit risk exposures related to the investments are presented in tables "Investment allocation according to asset classes, sectors and fixed income investments according to rating, If P&C, 31 Dec 2010", "Investment allocation according to asset classes, sectors and fixed income investments according to rating, Mandatum Life, 31 Dec 2010", "Investment allocation according to asset classes, sectors and fixed income investments according to rating, Sampo Group, 31 Dec 2010", and "Fixed income investments by type of instrument excluding derivatives, If P&C, Mandatum Life and Sampo Group, 31 Dec 2010" in the Market risks section.

Credit Risk Management

Credit risk is managed by specific limits given in the Investment Policies of If P&C and Mandatum Life. Limits and restrictions are assigned to maximum exposures towards single issuers and derivative counterparties that are mainly based on rating class and an internal assessment.

Before an investment in a new security or a transaction with a new counterparty, the credit standing of the issuer or counterparty is thoroughly assessed. Credit ratings mainly from Standard & Poor's, Moody's and Fitch are used to support the assessment of the creditworthiness of issuers and counterparties. The portfolio development and the counterparties' credit standings are monitored continuously.

Credit risks are monitored at business area level and reported to the Investment Control Committee of If P&C and to the ALCO of Mandatum Life. The decision making in each business area shall follow the limits defined in the respective Investment Policy. Credit risk reporting is based primarily on the ratings of the issuer and instrument and on the industry sectors of issuers and counterparties.

If P&C uses for example ISDA agreements to manage the counterparty risk of derivatives. Also Mandatum Life uses these agreements in addition to Credit Support Annexes.

In order to limit and control credit risk associated with reinsurance, If P&C has a Reinsurance Security Policy, which sets requirements for the reinsurers' minimum credit ratings and the maximum exposure to individual reinsurers. Similar to credit risk in investment assets, credit ratings from rating agencies are used to support the assessment of the creditworthiness of reinsurance companies.

The amount of ceded treaty and facultative premiums was EUR 62 million. Of this amount 99.9% was related to reinsurance counterparties with a credit rating of A- or higher.

Credit Risks Related to Reinsurance Counterparties

The distribution of reinsurance receivables and reinsurers' portion of outstanding claims in If P&C on 31 December, 2010 per rating category is presented in table "Reinsurance receivables and reinsurers' portion of outstanding claims per rating category, If P&C, 31 Dec 2010 and 31 Dec 2009". In the table, EUR 120 million (EUR 120 million in 2009) are excluded, which mainly relates to captives and statutory pool solutions.

Reinsurance receivables and reinsurers' portion of outstanding claims per rating category, If P&C, 31 Dec 2010 and 31 Dec 2009

	31 Dec 2010	31 Dec 2009
Rating	Total EURm	%	Total EURm	%
AAA	0	0%	6	2%
AA+ - A-	354	96%	336	91%
BBB+ - BBB-	1	0%	1	0%
BB+ - C	0	0%	0	0%
D	0	0%	0	0%
Not rated	13	3%	13	3%
Total	368	100%	356	97%

The proportion of reinsurance recoverables related to the ten largest individual reinsurance counterparties amounts to EUR 344 million, which is 68.8 per cent of total recoverables. The largest individual reinsurance counterparty is Munich Re (AA-rating) which accounts for 30.5 per cent of total recoverables.

In Mandatum Life, the amount of reinsurance agreements is small and the credit risk related to reinsurance counterparties in Mandatum Life is immaterial. At inception of reinsurance, the accepted credit risk of the reinsurer is considered and the credit risks of reinsurance assets are followed.

Liquidity Risks

Liquidity risk is the risk that insurance undertakings are unable to conduct their regular business activities in accordance with the de ned strategy, or in extreme cases, are unable to settle thei nancial obligations when they fall due. Major sources of liquidity risk in Sampo Group are market illiquidity risk of investments, non-renewal of insurance policies and re nancing risk of debt. Also the availability and price of re nance and nancial derivatives a ect the company´s ability to conduct regular business.

Liquidity risk is relatively immaterial in Sampo Group's businesses. The market illiquidity risk is rather limited because a major share of the investment assets are in readily marketable investment-grade securities and in short-term money market instruments.

In P&C insurance, liquidity risk is limited because premiums are collected in advance and large claims payments are usually known a long time before they fall due. In P&C insurance some pressure on the liquidity situation could arise from a large scale of policies not being renewed. It is however highly unlikely that the number of non-renewals could reach such a magnitude that the readily marketable assets will not be su cient to prevent any illiquidity issues. In life insurance, a large change in surrender rates could in uence the liquidity situation. However, only a relatively small part of insurance policies can be surrendered and it is therefore possible to forecast short-term cas ows related to claims payments with a very high accuracy.

Sampo Group has a relatively low amount o nancial liabilities and thus the Group's respective re nancing risk is relatively minor.

Sampo Group companies have business relationships with several creditworthy counterparties which mitigates the risk that Sampo Group will not be able to enter into reinsurance or derivative transactions when needed.

In Sampo Group, liquidity risks are managed by the legal entities, which are responsible for liquidity planning. Liquidity risk is monitored based on the expected cas ows resulting from assets, liabilities and other business. At year-end, the liquidity position in each legal entity was in accordance with the internal requirements.

The maturities of technical provisions an nancial assets and liabilities are presented in table "Cas ows according to contractual maturity, P&C insurance, Life insurance and Holding, 31 Dec 2010". The table shows th nancing requirements resulting from expected cash in ows and out ows arising fro nancial assets and liabilities as well as technical provisions.

		Carrying amount total					Cas ows
EURm	Carrying amount total	Carrying amount without contractual maturity	Carrying amount with contractual maturity	2011	2012	2013	2014	2015	2016-2025	2026-
P&C insurance
Financial assets	12,781	2,126	10,655	1,762	1,940	2,033	2,438	1,583	989	31
of which interest rate swaps	70	0	70	4	3	0	0	0	1	0
Financial liabilities	1,033	0	1,033	-228	-13	-78	-7	-157	0	0
of which interest rate swaps	0	0	0	0	0	0	0	0	0	0
Net technical provisions	8,829	0	8,829	-2,739	-855	-623	-514	-445	-2,609	- 1,995
Life insurance
			3,545
Financial assets	5,902	2,357		1,178	466	562	727	249	589	159
of which interest rate swaps	32	0	32	26	7	4	0	0	0	0
Financial liabilities	193	0	193	-30	-5	-105	0	0	0	0
of which interest rate swaps	0	0	0	0	0	0	0	0	0	0
Net technical provisions	4,262	0	4,262	-566	-490	-444	-409	-375	-2,585	-2,161
Holding
Financial assets	803	36	767	583	34	106	1	16	0	0
of which interest rate swaps	36	0	36	28	28	0	0	0	0	0
Financial liabilities	1,741	0	1,741	-853	-817	-6	-153	-25	0	0
of which interest rate swaps	0	0	0	0	0	0	0	0	0	0

Cas ows according to contractual maturity, P&C insurance, Life insurance and Holding, 31 Dec 2010

In the tabl nancial assets and liabilities are divided into contracts that have an exact contractual maturity pro le, and other contracts. Only the carrying amount is shown for the other contracts. In addition, the table shows expected cas ows for net technical provisions, which by nature, are associated with a certain degree of uncertainty.

In the investment assets of life insurance, the investments of the Baltic subsidiary are included in the carrying amount but excluded from the cas ows.

Operational Risks

Operational risks may realize as a consequence of:

internal misconduct;
external misconduct;
insufficient human resources management;
insufficiencies in operating policies as far as customers, products or business activities are concerned;
damage to physical property;
interruption of activities and system failures; and
defects in the operating process.

Operational risk may materialize as additional expenses, compensations for caused damages, loss of reputation, false information on risk position and consecutive losses, and interruption of business activities.

Operational Risk Management in Sampo Group

The goals of Operational Risk Management are:

to ensure simultaneously the efficiency and quality of operations;
to ensure that operations are compliant with laws and regulations; and
to ensure the continuity of business operations in exceptional circumstances.

Each company is responsible for arranging its operational risk management to align with the goals above, taking also into account the specific features of its business activities.

The central tools in operational risk management are (i) the identification of risks and (ii) proper preventive actions at all levels of operations. To ensure the use of these tools, responsibilities in the following areas are set clearly:

drafting and enforcement of adequate operational risk policies and continuity plans;
legal and financial compliance of operations;
continuous development of human resources (knowledge and skills) and work processes;
day-to-day management; and
reporting and controlling.

Operational Risk Management in P&C Insurance

The continuity of operational risk management is secured through the Operational Risk Committee (ORC). ORC handles policies and recommendations concerning operational risk management within If P&C as well as contingency plans, follow-up of risks identified in the Operational Risk Assessment (ORA) process, occurred incidents and other reports related to operational risks.

The business areas have the ultimate responsibility for identifying, assessing, monitoring and managing operational risks within different units.

Identification and Management

In If P&C, operational risk is categorized as follows: process execution failures, business disruptions and system failures, customer, product and business practices, employment practices, and internal and external fraud.

If P&C identifies operational risks through several different processes. The main processes are the environmental and macro analysis, the operational risk assessment process and incident reporting.

Environmental and macro analysis is conducted by the Corporate Strategy unit on an annual basis, where the key trends affecting the insurance industry are identified and their implications to If P&C are assessed. On this basis, the main opportunities and threats are identified and prioritized. These assessments outline the most important external operational and business risks.
Operational risk assessment (ORA) is a quarterly process where operational risks are identified and assessed in the different business units through interviews and workshops. After quarterly ORA follow-up meetings, the operational risks are reported to ORC. In addition, legal risks and some business risks are captured in the ORA process. The quarterly reporting is used as a basis for an overall risk assessment of an annual cycle, where the identified risks are analyzed and prioritized in all of If P&C's business areas and corporate functions as a part of the annual business planning process.
Incident reporting and analysis is arranged in different ways depending on the type of the incident. Some incidents are collected through a separate incident database and others are collected through controls and investigations.

In order to manage operational risks, If P&C has approved a number of policies including Contingency Plans, Security Policies, Outsourcing Policy, Complaints Handling Policy, Claims Handling Policy and other policies related to different aspects of the business. The different policies are reviewed regularly and updated as needed. In addition, If P&C has thorough processes and guidelines to handle external and internal fraud cases should they arise. Furthermore, much effort is put into internal education regarding ethic rules.

Operational Risk Management in Life Insurance

The objective of operational risk management in Mandatum Life is to enhance the efficiency of internal processes and decrease negative impact on Mandatum Life. The aim is to minimize operational risks subject to cost-benefit considerations.

Business units are responsible for the identification, assessment and management of own operational risks, including organizing adequate internal control. Operational Risk Committee (ORC) monitors and coordinates risk management issues regarding operational risks within Mandatum Life, such as policies and recommendations concerning operational risk management. The committee ensures that risks are identified and business units have organized internal control and risk management in a proper way. The committee also analyzes deviations from operational risk management policies and monitors operational risks identified in the self-assessments as well as the occurred incidents. The committee meets at least four times a year. Reports on operational risks are submitted to the Risk Management Committee and Board of Directors on a quarterly basis.

Identification and Management

Operational risks are identified through several different sources and methods:

Macro analysis is conducted prior to the annual strategy process where the key trends in Mandatum Life's business environment are identified, including a macro level business analysis of operational risks. External events are monitored continuously and the company reacts to those as soon as possible.
Self-assessment process is used to map and evaluate the major operational risks and their probabilities and significance, including an evaluation of internal controls and sufficiency of instructions. Self-assessment is conducted annually.
Analysis of incidents. Realised operational risks and near misses reported by the business units are collected and analyzed by ORC. Each business unit is responsible for ensuring that the occurred incidents and near misses are reported to the ORC.
Internal audits

The most significant operational risks for Mandatum Life identified in the operational risk self-assessment process include the following: changes in the external operating environment, IT, especially ageing IT systems, manual phases in processes, loss of key personnel, missselling and false information to customers.

In order to limit operational risks, Mandatum Life has approved a number of policies including e.g. Security Policies, Continuity and Preparedness Plans, Outsourcing Policy, Complaints Handling Policy and a number of other policies related to ongoing operative activities. Deviations from different policies are followed up independently in each business unit and reported to ORC.

Internal control system in processes prevents negative incidents. However, would there be an operational risk event or a near miss, this must be reported to ORC.

Group Level Risks

As a general principle, the subsidiary companies are managed independently from each other. However, it has been deemed pertinent to asses certain risk issues also on Group level, i.e. concentration risks, liquidity management, capitalization and group structure.

With respect to the underwriting businesses carried out in the subsidiary companies, it has been established that the direct business related correlations between If P&C's non-life business and Mandatum Life's life business are negligible and, consequently, business lines as such are contributing diversi cation bene ts rather than concentration risks.

On the other hand, both subsidiaries have signi cant investment portfolios and, thus, are potentially threatened with investment related concentration risks (i.e. large combined exposures). On the group level, eventual large exposures are monitored and managed in several ways. Firstly, concentration risk is mitigated through e ective di erentiation in asset allocation. Mandatum Life's direct investments are mainly denominated in euro and in companies geographically located in Finland, whereas If P&C has the majority of its direct investments in Scandinavian currencies and in the respective countries. Fund investments, on their behalf, are selected for both companies by the same investment team. Consequently, the risk of unidenti ed or unwanted concentrations is relatively easy to negotiate by appropriate limit setting and by applying su cient level of control over the activity itself. Secondly, concentrations are actively monitored and, if deemed necessary, further managed by deploying group level exposure restrictions for instance by industries or individual issuers.

On the subsidiary level, investment risk concentrations are monitored and controlled by the ICC in If P&C and ALCO in Mandatum Life, which have been established as parties independent from investment operations. Total group exposures are monitored and controlled by Sampo's Chief Investment O cer, Sampo's Chief Risk O cer and Sampo's Audit Committee.

The largest market and credit risk concentrations related to individual counterparties are presented in table "Concentration of market and credit risks in individual counterparties by asset class, Sampo Group, 31 Dec 2010".

assets

Concentration of market and credit risks in individual counterparties by asset class, Sampo Group, 31 Dec 2010

EURm Counterparty (per business area)	Total fair value	% of total investment asssets	Cash & short ter xed income	Long-term xed income, total	Long-term xed income: Government guaranteed	Long-ter xed income: Covered bonds	Long-ter xed income: Senior bonds	Long-term xed income: Tier 1 and Tier 2	Equities	Uncolla teralized deri vatives
Svenska Handelsbanken	1,617	9%	495	1,115	0	804	136	175	0	7
Nordea Bank	1,589	9%	562	1,014	0	765	108	140	0	14
Swedbank	918	5%	9	907	43	694	58	112	0	2
Skandinaviska Enskilda Banken	867	5%	149	717	0	426	184	107	0	0
SBAB	744	4%	0	744	57	344	300	43	0	0
Den Danske Bank	569	3%	105	451	0	75	237	139	0	13
DnB NOR Bank	565	3%	0	565	0	104	301	160	0	0
Pohjola Bank	489	3%	306	183	0	0	69	114	0	0
Sweden	281	2%	0	281	0	0	281	0	0	0
UPM-Kymmene	227	1%	0	188	0	0	188	0	39	0
Total top 10 exposures	7,866	43%	1,626	6,165	100	3,212	1,862	991	39	35
Other	10,435	57%
Total investment	18,301	100%

The concentrations by asset class, ratings and industry sectors are shown in tables "Investment allocation according to asset classes, sectors an xed income investments according to rating, If P&C, 31 Dec 2010", "Investment allocation according to asset classes, sectors an xed income investments according to rating, Mandatum Life, 31 Dec 2010" and "Investment allocation according to asset classes, sectors and xed income investments according to rating, Sampo Group, 31 Dec 2010". The most signi cant concentrations on Sampo Group level are in the Nordi nancials within which the largest positions relate to short-term instruments and covered bonds.

Furthermore, concentrations of direct equity as well as high-yield and non-rate xed income investments are broken down in tables "Ten largest direct equity investments, Sampo Group, 31 Dec 2010" and "Ten largest direct high-yield and non-rate xed income investments, Sampo Group, 31 Dec 2010".

Ten largest direct equity investments, Sampo Group, 31 Dec 2010

		% of total direct equity
Top 10 equity investments	Total fair value, EURm	investments
Topdanmark	198	10%
Cardo	126	7%
Nobia	98	5%
YIT	97	5%
Veidekke	79	4%
Alma Media	55	3%
Atlas Copco	53	3%
Fortum	52	3%
Sandvik	52	3%
Volvo	51	3%
Total top 10 exposures	862	45%
Other direct equity investments	1,041	55%
Total direct equity investments	1,903	100%

Ten largest direct high-yield and non-rate xed income investments, Sampo Group, 31 Dec 2010

Largest direct high-yield and non-rate xed income			% of total direc xed
investments	Rating	Total fair value, EURm	income investments
UPM-Kymmene	BB	188	1%
Stora Enso	BB	135	1%
A P Moller - Maersk	NR	68	0%
DNO International	NR	67	0%
HeidelbergCement	BB-	65	0%
Boliden	NR	63	0%
Wilh. Wilhelmsen	NR	62	0%
Color Group	NR	53	0%
Outokumpu	NR	52	0%
Finnvera	NR	52	0%
Total top 10 exposures		805	6%
Other direc xed income investments		12,996	94%
Total direc xed income investments		13,801	100%

As discussed above, direct concentration risks may arise due to large exposures in investment assets. A more general group level concentration risk arises when the group companies' pro tability and/or capital positions react similarly to general economic development, i.e. the correlation between general economic development and the pro tability of di erent subsidiaries is more or less analogous. This type of concentration risk can be analyzed indirectly based on reported pro ts. From that perspective, especially Nordea's, which is Sampo plc's associate company, result is creating clear diversi cation bene ts, in particular when analyzed vis á vis If P&C. The historical correlation between If P&C´s and Nordea's quarterly reported pro ts since 2005 is almost zero.

Liquidity risk is managed at company level, and in normal course of business, subsidiary companies do not invest in Sampo plc´s debt instruments, and very seldom the companies sell their assets to each other. However, a general prohibition to intra-group asset transactions has not been deemed necessary and, thus, subsidiaries are allowed to invest in the parent company's debt instruments and sell assets to each other at market prices, especially when this is reasoned by business opportunities. Thus, during possible market stresses these options are available to certain extent as well.

The structure of Sampo' nancial conglomerate, both legal and reporting structure - parent company, two subsidiaries and one associated company - is simple, straightforward and transparent. The structure as such e ectively mitigates any risks related to complex structures. Structural simplicity and transparency together with a limited amount of exposures within the conglomerate (i.e. direct and/or indirect claims between di erent companies excluding normal course of business transactions with Nordea) and diligently managed capitalization of subsidiaries also e ectively protect group companies from contagion risks.

Capitalization

This section presents the capitalization of Sampo Group in 2010 and the changes that took place during the year.

Risks and the respective capital requirements in Sampo Group are assessed internally, as well as according to the methods defined by the regulators and rating agencies. The amount of adjusted solvency capital is compared to economic capital and regulatory solvency capital is compared to the regulatory capital requirement. Furthermore, rating agency capital targets for different ratings are compared to the respective rating agency measures of available capital.

The solvency of Sampo Group's insurance subsidiaries improved during the year due to good results. The development of capitalization in Sampo Group within the internal and regulatory perspectives during the year 2010 is shown in the figures "Development of capitalization, If P&C, 31 Dec 2009 - 31 Dec 2010", "Development of capitalization, Mandatum Life, 31 Dec 2009 - 31 Dec 2010" and "Development of capitalization, Sampo Group, 31 Dec 2009 - 31 Dec 2010".

Updates and refinements are frequently done to the models used for calculating the economic capital. Thus, the economic capital figures may not be fully comparable between years.

Capitalization by Internal Measures

Figure "Breakdown of economic capital by business areas and adjusted solvency capital, Sampo Group, 31 Dec 2010" shows the contributions of the different business areas to Sampo Group´s total economic capital as well as the diversification effect included in the calculation of Group´s economic capital. The figure also shows the amount of adjusted solvency capital on Group level.

Sampo Group´s economic capital increased during the year and amounted to EUR 4,281 million in the end of 2010 (EUR 3,783 million in 2009). The increase is mainly due to an increase in market risk driven by a higher equity exposure.

Nordea is included in the calculation of Sampo Group´s economic capital by adding Sampo Group's share of the economic capital reported by Nordea, converted into the 99.5 % confidence level. At year end, the risks arising from Nordea constitute the largest single component in Sampo Group´s economic capital. The correlations between risk types and business areas, and thereby indirectly the amount of diversification, are defined by Sampo on a Sampo Group level.

The amount of adjusted solvency capital on the Group level increased during the year to EUR 8,521 million (EUR 7,076 million in 2009) due to a good investment return and insurance result, and to some extent due to an increase in the liability side adjustment. The increase in the liability side adjustment is mainly due to a lower risk margin, as the QIS5 methodology, where diversification is accounted for between lines of business, is now applied. Thus, the adjusted solvency capital exceeded the economic capital by EUR 4,240 million (EUR 3,294 million in 2009).

Figure "Breakdown of economic capital by risk type, Sampo Group, 31 Dec 2010" presents the split of economic capital by the different risks.

The most significant risk areas for Sampo Group in terms of economic capital in 2010 were credit risk and market risk. The largest change has taken place in the proportion of market risk of the total economic capital. The increase is mainly the result of an increased equity exposure. Another reason is that If P&C have done changes in the risk classification where interest rate risk related to the insurance operations has been moved from insurance risk to market risk, and spread risk has been moved from credit risk to market risk.

The split of economic capital by risk type and the adjusted solvency capital in If P&C and Mandatum Life is depicted in the figures "Breakdown of economic capital by risk type and adjusted solvency capital, If P&C, 31 Dec 2010" and "Breakdown of economic capital by risk type and adjusted solvency capital, Mandatum Life, 31 Dec 2010".

In If P&C, economic capital increased to EUR 1,381million (EUR 1,185 million in the end of 2009) meanwhile in Mandatum Life, economic capital increased to EUR 1,119 million (EUR 930 million at the end of 2009). The main reason for the increases is increased market risk due to increased equity exposures. For If P&C the increase in market risk is also due to the move of spread risk from credit risk to market risk. Market risk is now the most significant risk for both If P&C and Mandatum Life. Another change for If P&C is that the interest rate risk

related to the insurance operations has been moved from insurance risk to market risk, which explains the decrease in insurance risk now being EUR 583 million (EUR 683 million in the end of 2009). The insurance risk is, however, expected to increase going forward, as the correlations used when calculating the insurance risk most likely has to be increased for regulatory approval of the internal model.

The amount of adjusted solvency capital exceeded the economic capital in both If P&C and Mandatum Life. During the year, the amount of adjusted solvency capital in If P&C increased to EUR 3,670 million (EUR 2,861 million in the end of 2009), whereas in Mandatum Life, adjusted solvency capital increased to EUR 1,589 million (EUR 1,294 million in the end of 2009).

Sensitivity Analysis of the Capital Position

The total sensitivity of equity is shown in table "Sensitivity analysis of capitalization to market risks, P&C insurance, Life insurance and Holding, 31 Dec 2010" separately for the insurance subsidiaries together with the corresponding effect on the discounted value of liabilities and adjusted solvency capital. For example a rise in interest rates would reduce the values of financial instruments causing a fall in the Sampo Group's equity. On the other hand, the effect on adjusted solvency capital would be positive due to the fact that value of technical provisions would fall as a result of applying a higher discount rate.

Sensitivity analysis of capitalization to market risks, P&C insurance, Life insurance and Holding, 31 Dec 2010

	Interest rate		Equity	Other financial investments
EURm	1% parallel shift down	1% parallel shift up	20% fall in prices	20% fall in prices
P&C insurance	170	-162	-330	-21
Life insurance	115	-113	-337	-125
Holding	2	-2	-4	-5
Total effect on equity	287	-277	-671	-151
Change in liability side adjustment	-875	622	22	8
Effect on adjusted solvency capital	-589	346	-649	-143

The effects represent the instantaneous effects of an one-off change in the underlying market variable on the fair values as of 31 December 2010. The sensitivity analysis includes the effects of derivative positions. All sensitivities are calculated before taxes. The debt issued by Sampo Group companies is not included.

Capitalization by Regulatory Criteria

Sampo Group reports its group solvency quarterly to the Finnish supervisory authorities monitoring Sampo Group. Subsidiaries' solvency is reported to the local supervisors.

The regulatory capital requirements and the regulatory solvency capital of If P&C and Mandatum Life are presented i gure "Regulatory capital measures, If P&C and Mandatum Life, 31 Dec 2010 and 31 Dec 2009". All companies ful lled their regulatory capital requirement during the year 2010. Regulatory solvency capital, which is used to assess the solvency of an insurance company, is not calculated for the parent company Sampo plc.

Regulatory solvency capital of If P&C increased to EUR 2,956 million (EUR 2,427 million) while the regulatory capital requirement was EUR 735 million (EUR 634 million). Regulatory solvency capital in Mandatum Life Group increased to EUR 1,324 million (EUR 926 million) while the regulatory capital requirement was EUR 231 million (EUR 226 million). Also Sampo Group's consolidated capital position was very strong. The Group solvency ratio was 167 per cent (158 per cent).

The calculation of group solvency according to the Act on the Supervision of Financial and Insurance Conglomerates (1193/2004) is broken down in table "Group solvency, 31 Dec 2010 and 31 Dec 2009". The group solvency ratio on 31 December 2010 was 167 per cent (158 per cent).

Group solvency, 31 Dec 2010 and 31 Dec 2009

EURm	31 Dec 2010	31 Dec 2009
Group capital	8,886	7,613
Sectoral items	1,711	1,545
Valuation di erences and deferred taxes	508	369
Subordinated loans	289	287
Share of Nordea's capital not included in Group capital	915	889
Intangibles and other deductables	-3,033	-2,875
Intangibles (insurance companies)	-742	-688
Intangibles (Nordea)	-1,218	-1,179
Equalisation provision (Finland)	-361	-348
Contingency reserve (Finland)	0	-33
Other	-67	-66
Planned dividends for the current period	-645	-561
Solvency capital, total	7,564	6,283
Minimum requirements for solvency capital, total	4,526	3,968
Group solvency	3,038	2,315
Group solvency ratio (solvency capital % of minimum requirement)	167%	158%

Capitalization by Rating Agency Criteria

If P&C Insurance Ltd. (publ) (Sweden) and If P&C Insurance Company Ltd. (Finland) are rated by Moody's and Standard & Poor's and Sampo plc by Moody's. The Group's main rating objective is to retain at least a single A rating for If P&C. The S&P rating model in If P&C is updated regularly. Sampo Group has a continuous dialogue with the rating agencies.

Risk Management Outlook

Sampo Group continuously develops its risk management framework and systems. Hence, as in 2010, also in 2011 the Group's and the subsidiaries´ economic capital framework, additional stress tests and scenario analysis methods will be further developed.

During 2010 If P&C has developed and started to use both a new internal model for the calculation of economic capital as well as a supplementary model to generate economic scenarios for the internal model. During 2011 and 2012 the model will be further developed with the goal of having the internal model approved for calculating the capital requirement under Solvency II. Early in 2011, If P&C entered the internal model pre-application process. Also Mandatum Life further develops its corresponding models.

During 2010 If P&C and Mandatum Life have made extensive efforts in monitoring, evaluating the effects and commenting to the authorities and industry interest groups on the draft Solvency II implementing measures. The work will continue during 2011.

Technical preparedness for Solvency II has been built in the Group during the last few years and the anticipated Solvency II requirements for risk management practices have been taken into account in the risk management development activities of Group companies. These actions have been initiated to secure full compliance with Solvency II by the end of 2012.

If P&C and Mandatum Life participated in the fifth Quantitative Impact Study (QIS5). The results of both companies were in line with the expectations.

Financial Statements

147 Group's IFRS Financial Statements

147	Consolidated Comprehensive Income		Notes to the Accounts
	Statement	155	Summary of Accounting Policies
148	Consolidated Balance Sheet	170	Segment Information
150	Statement of Changes in Equity	176	Notes to the Income Statement
152	Statement of Cash Flows	199	Notes to the Balance Sheet

276 Sampo plc Financial Statements

276	Parent Company Income Statement
277	Parent Company Balance Sheet
279	Parent Company Statement of Cash Flows

281 Notes to the Financial Statements
291 Approval
292 Auditor's Report

Consolidated Comprehensive Income Statement, IFRS

EURm	12/2010	12/2009
Insurance premiums written	5,096	4,479
Net income from investments	1,183	1,155
Other operating income	26	20
Claims incurred	-3,533	-3,105
Change in liabilities for insurance and investment contracts	-769	-633
Sta osts	-527	-510
Other operating expenses	-547	-495
Finance costs	-131	-87
Share of associates' pro t/loss	523	1
Pro t before taxes	1,320	825
Taxes	-217	-184
Pro t for the period	1,104	641
Other comprehensive income for the period
Exchange di erences	214	123
Available-for-sal nancial assets	605	2,989
Cas ow hedges	-9	-3
Share of associate's other comprehensive income	48	-
Income tax relating to components of other comprehensive income	-156	-326
Other comprehensive income for the period, net of tax	703	2,782
Total comprehensive income for the year	1,807	3,423
Pro t attributable to
Owners of the parent	1,104	641
Non-controlling interests	0	0
Total comprehensive income attributable to
Owners of the parent	1,807	3,423
Non-controlling interests	0	0
Earnings per share (eur)	1.97	1.14

Consolidated Balance Sheet, IFRS

EURm	12/2010	12/2009
Assets
Property, plant and equipment	29	34
Investment property	122	124
Intangible assets	742	688
Investments in associates	5,699	5,172
Financial assets	17,508	15,479
Investments related to unit-linked insurance contracts	3,127	2,366
Tax assets	68	81
Reinsurers' share of insurance liabilities	514	481
Other assets	1,515	1,439
Cash and cash equivalents	527	771
Total assets	29,851	26,635
Liabilities
Liabilities for insurance and investment contracts	13,749	13,014
Liabilities for unit-linked insurance and investment contracts	3,124	2,359
Financial liabilities	2,187	2,098
Tax liabilities	640	500
Provisions	36	35
Employee bene ts	105	104
Other liabilities	1,124	912
Total liabilities	20,965	19,022
Equity
Share capital	98	98
Reserves	1,530	1,530
Retained earnings	6,459	5,889
Other components of equity	799	96
Equity attributable to owners of the parent	8,886	7,613

Non-controlling interests	0	0
Total equity	8,886	7,613
Total equity and liabilities	29,851	26,635

Statement of Changes in Equity

EURm	Share capital	Share premium account	Legal reserve	Invested unrestricted equity	Retained earnings	Translation of foreign operations *)	Available for-sale nancial assets**)	Cas ow hedges***)	Total
Equity at 1 Jan. 2009	98	1,161	370	-	5,688	-323	-2,375	11	4,631
Changes in equity
Transfers between equity		-1,161	-366	1,527		1			0
Share-based payments					-1				-1
Acquisition of treasury shares					-1				-1
Recognition of undrawn dividends					11				11
Dividends					-449				-449
Total comprehensive income for the period					641	122	2,662	-2	3,422
Equity at 31 Dec. 2009	98	0	4	1,527	5,889	-200	287	9	7,613
Changes in equity
Share-based payments					-1				-1
Recognition of undrawn dividends					10				10
Dividends					-561				-561
Share of associate's other changes in equity					19				19

Total comprehensive income for the period					1,104	262	447	-6 1,807
Equity at 31 Dec. 2010	98	0	4	1,527	6,459	62	734	3 8,886

*) The total comprehensive income includes also the share of the associate Nordea's other comprehensive income, in accordance with the Group's share holding. As Nordea's other comprehensive income comprise mainly the currency hedging of net investments and exchange di erences, the Group's share of Nordea's other comprehensive income EURm 48 is also included in the Group's exchange di erences in the statement of changes in equity.

**) The amount recognised in equity from available-for-sal nancial assets for the period totalled EURm 615 (2,626). The amount transferred to p/l amounted to EURm -168 (35).

***) The amount recognised in equity from cas ow hedges for the period totalled EURm -6 (-2) .

The amount included in the translation, available-for-sale and cas ow hedge reserves represent other comprehensive income for each component, net of tax.

Statement of Cash Flows

Operating activities	2010	2009
Pro t before taxes	1,320	825
Adjustments:
Depreciation and amortisation	29	26
Unrealised gains and losses arising from valuation	-458	51
Realised gains and losses on investments	-279	-215
Change in liabilities for insurance and investment contracts	331	859
Other adjustments	-515	-14
Adjustments total	-892	706
Change (+/-) in assets of operating activities
Investments *)	74	337
Other assets	73	-30
Total	148	307
Change (+/-) in liabilities of operating activities
Financial liabilities	-9	-165
Other liabilities	-132	87
Paid taxes	-288	-275
Total	-429	-354
Net cash from operating activities	147	1,484
Investing activities
Investments in group and associated undertakings	62	-1,758
Net investment in equipment and intangible assets	5	-13
Net cash from investing activities	67	-1,771
Financing activities
Acquisition of own shares	-	-1
Dividends paid	-554	-444
Issue of debt securities	1,954	2,002
Repayments of debt securities in issue	-1,848	-1,008
Net cash used i nancing activities	-448	549
Total cas ows	-234	262

Cash and cash equivalents at 1 January	793	471
E ects of exchange rate changes	-32	28
Cash and cash equivalents at 31 December	527	761
Net increase in cash and cash equivalents	-234	262
Additional information to the statement of cas ows:	2010	2009
Interest income received	655	551
Interest expense paid	-187	-136
Dividend income received	64	123

*) Investments include investment propert nancial assets and investments related to unit-linked insurance contracts.

The items of the statement of cas ows cannot be directly concluded from the balance sheets due to e.g. exchange rate di erences, and acquisitions and disposals of subsidiaries during the period.

Cash and cash equivalents include cash at bank and in hand and short-term deposits (max. 3 months).

Notes to the Accounts

155 Summary of Accounting Policies

170 Segment Information
176 Notes to the Income Statement

176	1 Insurance premiums written	191	6 Other operating expenses
178	2 Net income from investments	193	7 Result analysis of P&C insurance
183	3 Claims incurred	194	8 Performance analysis per class of
188	4 Change in liabilities for insurance and		P&C insurance
	investment contracts	196	9 Eearnings per share
190	5 costs	197	10 Financial assets and liabilities

199 Notes to the Balance Sheet

199	11 Property, plant and equipment	235	25 Other assets
201	12 Investment property	237	26 Cash and cash equivalents
205	13 Intangible assets	238	27 Liabilities from insurance and
209	14 Investments in associates		investment contracts
211	15 Financial assets	244	28 Liabilities from unit-linked insurance
220	16 Fair values		and investment contracts
221	17 Determination and hierarchy of	245	29 Financial liabilities
	fair values	247	30 Provisions
225	18 Movements in level 3	248	31 Employee
	instruments measured at fair value	252	32 Other liabilities
228	19 Sensitivity analysis of level 3	254	33 Contingent liabilities and commitments
	instruments measured at fair value	258	34 Equity and reserves
229	20 Investments related to unit-linked	260	35 Related party disclosures
	insurance contracts	261	36 Incentive schemes
230	21 Deferred tax assets and liabilities	264	37 Auditors' fees
232	22 Taxes	265	38 Legal proceeding
233	23 Components of other comprehensive	266	39 Investments in subsidiaries
	income	267	40 Investments in shares and participations
234	24 Tax relating to components of		other than subsidiaries and associates
	other comprehensive income	275	41 Events the balance sheet date

Notes to the Accounts

Summary of Significant Accounting Policies

Sampo Group has prepared the consolidated financial statements for 2010 in compliance with the International Financial Reporting Standards (IFRSs). In preparing the financial statements, Sampo has applied all the standards and interpretations relating to its business, adopted by the commission of the EU and effective at 31 December, 2010.

During the financial year 2010 Sampo adopted the following new or amended standards or interpretations relating to its business.

The revised IFRS 3 Business combinations includes significant changes regarding the accounting treatment of business combinations. The revised standard allows the entity to measure non-controlling interest, in accordance with the prevailing principle, at its proportionate interest in the acquiree's net assets or at its fair value. The choice is acquisition-specific and affects the amounts of recognised goodwill and non-controlling interest. During the financial year, Sampo made no such acquisitions where the standard should have been applied, so the adoption of the revised standard did not have an effect on Sampo's financial statements reporting.

The revised IAS 27 Consolidated and Separate Financial Statements requires, e.g. that changes in the ownership interest of subsidiary are accounted for as equity transactions, if the control of a subsidiary is not lost. On loss of control, any retained interest will be measured at fair value through p/l. The adoption of the revised standard had no effect on Sampo's financial statements.

IAS 39 Financial Instruments: Recognition and Measurement clarified the hedging of one-sided risk of hedged items and inflation, in the case of financial assets or liabilities. The change had no significant effect on Sampo's financial statements reporting.

IFRIC 17 Distributions of Non-cash Assets to Owners clarified the recognition and measurement of assets other than cash paid in dividends. The adoption of the interpretation had no effect on Sampo's financial statements reporting.

Improvements to IFRSs 2009 - various minor changes made to different standards at the same time. The changes were not material to Sampo's financial statements reporting.

In preparing the notes to the consolidated financial statements, attention has also been paid to the Finnish accounting and company legislation and applicable regulatory requirements. Some of the risk management disclosures are presented in the Group's financial statements' Risk Management section.

The financial statements have been prepared under the historical cost convention, with the exception of financial assets and liabilities at fair value through p/l, financial assets available-for-sale, hedged items in fair value hedges and share-based payments settled in equity instruments measured at fair value.

The consolidated financial statements are presented in euro (EUR), rounded to the nearest million, unless otherwise stated.

The Board of Directors of Sampo plc accepted the financial statements for issue on 9 February 2011.

Consolidation

Subsidiaries

The consolidated financial statements combine the financial statements of Sampo plc and all its subsidiaries. Entities qualify as subsidiaries if the Group has the controlling power. The Group exercises control if its shareholding is more than 50 per cent of the voting rights or it otherwise has the power to exercise control over the financial and operating policies of the entity. Subsidiaries are consolidated from the date on which control is transferred to the Group, and cease to be consolidated from the date that control ceases.

The acquisition method of accounting is used for the purchase of subsidiaries. The cost of an acquisition is allocated to the identifiable assets, liabilities and contingent liabilities, which are measured at the fair value of the date of the acquisition. Possible non-controlling interest of the acquired entity is measured either at fair value or at proportionate interest in the acquiree's net assets. The acquisitionspecific choice affects both the amount of recognised goodwill and non-controlling interest. The excess of the aggregate of consideration transferred, non-controlling interest and possibly previously held equity interest in the acquiree, over the Group's share of the fair value of the identifiable net assets acquired, is recognised as goodwill.

The accounting policies used throughout the Group for the purposes of consolidation are consistent with respect to similar business activities and other events taking place in similar conditions. All intra-group transactions and balances are eliminated upon consolidation.

Associates

Associates are entities in which the Group has significant influence, but no control over the financial management and operating policy decisions. Unless otherwise demonstrated, this is generally presumed when the Group holds in excess of 20 per cent, but no more than 50 per cent, of the voting rights of an entity. Investments in associates are treated by the equity method of accounting, in which the investment is initially recorded at cost and increased (or decreased) each year by the Group's share of the post-acquisition net income (or loss), or other movements reflected directly in the equity of the associate. If the Group's share of the associate's loss exceeds the carrying amount of the investment, the investment is carried at zero value, and the loss in excess is consolidated only if the Group is committed to fulfilling the obligations of the associate. Goodwill arising on the acquisition is included in the cost of the investment. Unrealised gains (losses) on transactions are eliminated to the extent of the Group's interest in the entity.

The share of associates' profit or loss, equivalent to the Group's holding, is presented as a separate line in the income statement.

If there is any indication that the value of the investment may be impaired, the carrying amount is tested by comparing it with its recoverable amount. The recoverable amount is the higher of its value in use or its fair value less costs to sell. If the recoverable amount is less than its carrying amount, the carrying amount is reduced to its recoverable amount by recognizing an impairment loss in the profit/ loss. If the recoverable amount later increases and is greater than the carrying amount, the impairment loss is reversed through profit and loss.

Foreign currency translation

The consolidated financial statements are presented in euro, which is the functional and reporting currency of the Group and the parent company. Items included in the financial statements of each of the Group entities are measured using their functional currency, being the currency of the primary economic environment in which the entity operates. Foreign currency transactions are translated into the appropriate functional currency using the exchange rates prevailing at the dates of transactions or the average rate for a month. Monetary balance sheet items denominated in foreign currencies are translated into the functional currency at the rate prevailing at the balance sheet date. Non-monetary balance sheet items measured at historical cost are presented in the balance sheet using the historical rate existing at the date of the transaction.

Exchange differences arising from translation of transactions and monetary balance sheet items denominated in foreign currencies into functional currency are recognised as translation gains and losses in profit or loss. Exchange differences arising from equities classified as available-for-sale financial assets are included directly in the fair value reserve in equity.

The income statements of Group entities whose functional currency is other than euro are translated into euro at the average rate for the period, and the balance sheets at the rates prevailing at the balance sheet date. The resulting exchange differences are included in equity, and their change in other comprehensive income. When a subsidiary is divested entirely or partially, the cumulative exchange differences are included in the income statement under sales gains or losses.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as if they were assets and liabilities of the foreign entity. Exchange differences resulting from the translation of these items at the exchange rate of the balance sheet date are included in equity, and their change in other comprehensive income

Exchange differences that existed at the Group's IFRS transition date, 1 January 2004, are deemed to be zero, in accordance with the exemption permitted by IFRS 1.

The following exchange rates have been applied in the consolidated financial statements:

Currency	Balance sheet date 1 euro (EUR) =	Average exchange rate 1 euro (EUR) =
Swedish krona (SEK)	8,9655	9,5465
Estonian kroon (EEK)	15,6466	15,6466

Segment reporting

The Group's segmentation is based on business areas whose risks and performance bases as well as regulatory environment differ from each other. The control and management of business and management reporting is organised in accordance with the business segments. The Group's business segments are P&C insurance, life insurance and holding business.

Geographical information has been given on income from external customers and non-current assets.. The reported segments are Finland, Sweden, Norway, Denmark, the Baltic countries and other countries.

In the inter-segment and inter-company pricing, for both domestic and cross border transactions, market-based prices are applied. The pricing is based on the Code of conduct on Transfer Pricing Documentation in the EU and OECD guidelines.

Inter-segment transactions, assets and liabilities are eliminated in the consolidated financial statements on a line-by-line basis.

Interest and dividends

Interest income and expenses are recognised in the income statement using the effective interest rate method. This method recognises income and expenses on the instrument evenly in proportion to the amount outstanding over the period to maturity.

Dividends on equity securities are recognised as revenue when the right to receive payment is established.

Fees and commissions

The fees and transaction costs of financial instruments measured at fair value through profit or loss are recognised in profit or loss when the instrument is initially recognised.

The costs of acquiring new and renewed insurance business are treated as deferred acquisition costs in the P&C insurance. In the life insurance business the acquisition costs are treated as fee and commission expense under 'Other operating expenses'.

Other fees and commissions paid for investment activities are included in 'Net income from investments'.

Insurance premiums

Insurance premiums in the income statement consist of premiums written for P&C insurance and life insurance.

P&C insurance contracts are primarily of short duration (1 year), so that premiums written are recognised as earned on a pro rata basis, adjusting them by a change in the provision for unearned premiums i.e. by the proportion of the insurance premium income that, based on the period covered by the insurance contract, belongs to the following financial year,.

In the life insurance business, liabilities arising from insurance and investment contracts count as long-term liabilities. Therefore the insurance premium and related claims are usually not recognised in the same accounting period. Depending on the type of insurance, premiums are primarily recognised in premiums written when the premium has been paid. In group pension insurance, a part of the premiums is recognised already when charged.

The change in the provisions for unearned premiums is presented as an expense under 'Change in insurance and investment contract liabilities'.

Financial assets and liabilities

Based on the measurement practice, financial assets and liabilities are classified in the following categories upon the initial recognition: financial assets at fair value through profit or loss, loans and receivables, available-for-sale financial assets, financial liabilities at fair value through profit or loss, and other liabilities.

According to the Group's risk management policy, investments are managed at fair value in order to have the most realistic and real-time picture of investments, and they are reported to the Group key management at fair value. Investments comprise debt and equity securities. They are mainly classified as financial assets available-for-sale.

In the P&C insurance, the fair value option permitted by IAS 39 has been applied in the earlier years. The remaining assets acquired before the year 2008 are still measured at fair value through p/l. Furthermore, the fair value option is applied in some minor P&C companies.

In the life insurance business, IFRS 4 Insurance Contracts provides that insurance contracts with a discretionary participation feature are measured in accordance with national valuation principles (except for the equalisation reserve) rather than at fair value. These contracts

and investments made to cover shareholders' equity are managed in their entirety and are classified mainly as available-for-sale financial assets.

Financial assets designated as at fair value through profit or loss in the life insurance business are investments related to unit-linked insurance, presented separately in the balance sheet. The corresponding liabilities are also presented separately. In addition, in the life insurance business, investments classified as the financial assets of foreign subsidiaries, and financial instruments in which embedded derivatives have not been separated from the host contract have been designated as at fair value through profit or loss.

In the Holding business, investments are primarily classified as financial assets available-for-sale.

Recognition and derecognition

Purchases and sales of financial assets at fair value through profit or loss, held-to-maturity investments and available-for-sale financial assets are recognised and derecognised on the trade date, which is the date on which the Group commits to purchase or sell the asset. Loans and receivables are recognised when cash is advanced.

Financial assets and liabilities are offset and the net amount is presented in the balance sheet only when the Group has a legally enforceable right to set off the recognised amounts and it intends to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when the contractual rights to receive cash flows have expired or the Group has transferred substantially all the risks and rewards of ownership. Financial liabilities are derecognised when the obligation specified in the contract is discharged or cancelled or expire.

In some limited circumstances, the amendments permit reclassifications of certain financial assets measured at fair value, after the initial recognition.

Financial assets and financial liabilities at fair value through profit or loss

In Sampo Group, financial assets and liabilities at fair value through profit of loss comprise derivatives held for trading, and financial assets designated as at fair value through profit or loss.

Financial derivative instruments held for trading

Derivative instruments that are not designated as hedges and do not meet the requirements for hedge accounting are classified as derivatives for trading purposes.

Financial derivatives held for trading are initially recognised at fair value. Derivative instruments are carried as assets when the fair value is positive and as liabilities when the fair value is negative. Derivative instruments are recognised at fair value, and gains and losses arising from changes in fair value together with realised gains and losses are recognised in the income statement.

Financial assets designated as at fair value through profit or loss

Financial assets designated as at fair value through profit or loss are assets which, at inception, are irrevocably designated as such. They are initially recognised at their fair value. Gains and losses arising from changes in fair value, or realised on disposal, together with the related interest income and dividends, are recognised in the income statement.

Loans and receivables

Loans and receivables comprise non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and that the Group does not intend to sell immediately or in the short term. The category also comprises cash and balances with central banks.

Loans and receivables are initially recognised at their fair value, added by transaction costs directly attributable to the acquisition of the asset. Loans and receivables are subsequently measured at amortised cost using the effective interest rate method.

Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial investments that are designated as available for sale and or are not categorised into any other category. Available-for-sale financial assets comprise debt and equity securities.

Available-for-sale financial assets are initially recognised fair value, including direct and incremental transaction costs. They are subsequently remeasured at fair value, and the changes in fair value are recorded in other comprehensive income and presented in the fair value reserve, taking the tax effect into account. Interest income and dividends are recognised in profit or loss. When the available-for-sale assets are sold, the cumulative change in the fair value is transferred from equity and recognised together with realised gains or losses in profit or loss. The cumulative change in the fair value is also transferred to profit or loss when the assets are impaired and the impairment loss is recognised. Exchange differences due to available-for-sale monetary balance sheet items are always recognised directly in profit or loss.

Other financial liabilities

Other financial liabilities comprise debt securities in issue and other financial liabilities.

Other financial liabilities are recognised when the consideration is received and measured to amortised cost, using the effective interest rate method.

If debt securities issued are redeemed before maturity, they are derecognised and the difference between the carrying amount and the consideration paid at redemption is recognised in profit or loss.

Fair value

The fair value of financial instruments is determined primarily by using quoted prices in active markets. Instruments are measured either at the bid price or at the last trade price, if the instrument is a share listed at NASDAQ OMX. The financial derivatives are also measured at the last trade price. If the financial instrument has a counter-item that will offset its market risk, the mid-price may be used to that extent. If a published price quotation does not exist for a financial instrument in its entirety, but active markets exist for its component parts, the fair value is determined on the basis of the relevant market prices of the component parts.

If a market for a financial instrument is not active, or the instrument is not quoted, the fair value is established by using generally accepted valuation techniques including recent arm's length market transactions between knowledgeable, willing parties, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models.

If the fair value of a financial asset cannot be determined, historical cost is deemed to be a sufficient approximation of fair value. The amount of such assets in the Group balance sheet is immaterial.

Impairment of financial assets

Sampo assesses at the end of each reporting period whether there is any objective evidence that a financial asset, other than those at fair value through p/l, may be impaired. A financial asset is impaired and impairment losses are incurred, if there is objective evidence of impairment as a result of one or more loss events that occurred after the initial recognition of the asset, and if that event has an impact, that can be reliably estimated, on the estimated future cash flows of the financial asset.

Financial assets carried at amortised costs

There is objective evidence of impairment, if an issuer or debtor e.g. encounters significant financial difficulties that will lead to insolvency and to estimation that the customer will probably not be able to meet the obligations to the Group. Objective evidence is first assessed for financial assets that are individually significant, and individually and collectively for financial assets not individually significant.

When there is objective evidence of impairment of a financial asset carried at amortised cost, the amount of the loss is measured as the difference between the receivable's carrying amount and the present value of estimated future cash flows discounted at the receivable's original effective interest rate. The difference is recognised as an impairment loss in profit or loss. The impairment is assessed individually.

If, in a subsequent period, the amount of the impairment loss decreases, and the decease can objectively be related to an event occurring after the impairment was recognised (e.g. the default status is removed), the previously recognised impairment loss shall be reversed through profit or loss.

Available-for-sale financial assets

Whether there is objective evidence of an impairment of available-for-sale financial assets, is evaluated in a separate assessment, which is done if the credit rating of an issuer has declined or the entity is placed on watchlist, or there is a significant or prolonged decline in the fair value of an equity instrument below its original acquisition cost.

The decision on whether the impairment is significant or prolonged requires an assessment of the management. The assessment is done case by case and with consideration paid not only to qualitative criteria but also historical changes in the value of an equity as well as time period during which the fair value of an equity security has been lower than the acquisition cost. In Sampo Group, the impairment is

normally assessed to be significant, if the fair value of a listed equity or participation decreases below the average acquisition cost by 20 per cent and prolonged, when the fair value has been lower than the acquisition cost for over 12 months.

As there are no quoted prices available in active markets for unquoted equities and participations, the aim is to determine their fair value with the help of generally accepted valuation techniques available in the markets. The most significant share of unquoted equities and participations comprise the private equity and venture capital investments. They are measured in accordance with the generally accepted common practice, International Private Equity and Venture Capital Guidelines (IPEV).

The significance and prolongation of the impairment in the last-mentioned cases is assessed case by case, taking into consideration special factors and circumstances related to the investment. Sampo invests in private equity and venture capital in order to keep them to the end of their life cycle, so the typical lifetime is 10 - 12 years. In general, a justifiable assessment of a potential impairment may only be done towards the end of the life cycle. However, if additionally there is a well-founded reason to believe that an amount equivalent to the acquisition cost will not be recovered when selling the investment, an impairment loss is recognised.

In the case of debt securities, the amount of the impairment loss is assessed as the difference between the acquisition cost, adjusted with capital amortisations and accruals, and the fair value at the review time, reduced by previously in profit or loss recognised impairment losses.

When assessed that there is objective evidence of impairment in debt or equity securities classified as financial assets available-for-sale, the cumulative loss recognised in other comprehensive income is transferred from equity and recognised in profit or loss as an impairment loss.

If, in a subsequent period, the fair value of a debt security increases and the increase can objectively be related to an event occurring after the impairment loss was recognised in profit or loss, the impairment loss shall be reversed by recognising the amount in profit or loss.

If the fair value of an equity security increases after the impairment loss was recognised in profit or loss, the increase shall be recognised in other comprehensive income. If the value keeps decreasing below the acquisition cost, an impairment loss is recognised through profit or loss.

Derivative financial instruments and hedge accounting

Derivative financial instruments are classified as those held for trading and those held for hedging, including interest rate derivatives, foreign exchange derivatives, equity derivatives and commodity derivatives. Derivative instruments are measured initially at fair value. All derivatives are carried as assets when fair value is positive and as liabilities when fair value is negative.

Derivatives held for trading

Derivative instruments that are not designated as hedges and embedded derivatives separated from a host contract are treated as held for trading. They are measured at fair value and the change in fair value, together with realised gains and losses and interest income and expenses, is recognised in profit or loss. If derivatives are used for hedging, but they do not qualify for hedge accounting as required by IAS 39, they are treated as held for trading.

Hedge accounting

The Sampo Group may hedge its operations against interest rate risks, currency risks and price risks through fair value hedging and cash flow hedging. Cash flow hedging is used as a protection against the variability of the future cash flows, while fair value hedging is used to protect against changes in the fair value of recognised assets or liabilities.

Hedge accounting applies to hedges that are effective in relation to the hedged risk and meet the hedge accounting requirements of IAS 39. The hedging relationship between the hedging instrument and the hedged item, as well as the risk management objective and strategy for undertaking the hedge, are documented at the inception of the hedge. In addition, the effectiveness of a hedge is assessed both at inception and on an ongoing basis, to ensure that it is highly effective throughout the period for which it was designated. Hedges are regarded as highly effective in offsetting changes in fair value or the cash flows attributable to a hedged risk within a range of 80-125 per cent.

During the financial year, fair value hedges have been used in P&C insurance. Both fair value and cash flow hedging have been applied in life insurance.

Cash flow hedging

Cash flow hedging is used to hedge the interest cash flows of individual floating rate debt securities or other floating rate assets or liabilities. The hedging instruments used include interest rate swaps, interest rate and cross currency swaps and interest rate options. Derivative instruments which are designated as hedges and are effective as such are measured at fair value. The effective part of the change in fair value is recognised in other comprehensive income. The remaining ineffective part is recognised in profit or loss.

The cumulative change in fair value is transferred from equity and recognised in profit or loss in the same period that the hedged cash flows affect profit or loss.

When a hedging instrument expires, is sold, terminated, or the hedge no longer meets the criteria for hedge accounting, the cumulative change in fair value remains in equity until the hedged cash flows affect profit or loss.

Fair value hedging

In accordance with the Group's risk management principles, fair value hedging is used to hedge changes in fair values resulting from changes in price, interest rate or exchange rate levels. The hedging instruments used include foreign exchange forwards, interest rate swaps, interest rate and cross currency swaps and options, approved by the managements of the Group companies.

Changes in the fair value of derivative instruments that are documented as fair value hedges and are effective in relation to the hedged risk are recognised in profit or loss. In addition, the hedged assets and liabilities are measured at fair value during the period for which the hedge was designated, with changes in fair value recognised in profit or loss.

Securities lending

Securities lent to counterparties are retained in the balance sheet. Conversely, securities borrowed are not recognised in the balance sheet, unless these are sold to third parties, in which case the purchase is recorded as a trading asset and the obligation to return the securities as a trading liability at fair value through profit or loss.

Leases

Group as lessee

Finance leases

Leases of assets in which substantially all the risks and rewards of ownership are transferred to the Group are classified as finance leases. Finance leases are recognised at the lease's inception at the lower of the fair value of the leased asset and the present value of the minimum lease payments. The corresponding obligation is included in 'Other liabilities' in the balance sheet. The assets acquired under finance leases are amortised or depreciated over the shorter of the asset's useful life and the lease term. Each lease payment is allocated between the liability and the interest expense. The interest expense is amortised over the lease period to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Operating leases

Assets in which the lessor retains substantially all the risks and rewards of ownership are classified as operating leases and they are included in the lessor's balance sheet. Payments made on operating leases are recognised on a straight-line basis over the lease term as rental expenses in profit or loss.

Group as lessor

Operating leases

Leases in which assets are leased out and the Group retains substantially all the risks and rewards of ownership are classified as operating leases. They are included in 'Investment property' in the balance sheet. They are depreciated over their expected useful lives on a basis consistent with similar owned property, plant and equipment, and the impairment losses are recognised on the same basis as for these items. Rental income on assets held as operating leases is recognised on a straight-line basis over the lease term in profit or loss.

Intangible assets

Goodwill

Goodwill represents the excess of the cost of an acquisition (made after 1 January 2004) over the fair value of the Group's share of the net identifiable assets, liabilities and contingent liabilities of the acquired entity at the date of acquisition. Goodwill on acquisitions before 1 January 2004 is accounted for in accordance with the previous accounting standards and the carrying amount is used as the deemed cost in accordance with the IFRS.

Goodwill is measured at historical cost less accumulated impairment losses. Goodwill is not amortised.

Other intangible assets

IT software and other intangible assets, whether procured externally or internally generated, are recognised in the balance sheet as intangible assets with finite useful lives, if it is probable that the expected future economic benefits that are attributable to the assets will flow to the Group and the cost of the assets can be measured reliably. The cost of internally generated intangible assets is determined as the sum of all costs directly attributable to the assets. Research costs are recognised as expenses in profit or loss as they are incurred. Costs arising from development of new IT software or from significant improvement of existing software are recognised only to the extent they meet the above-mentioned requirements for being recognised as assets in the balance sheet.

Customer relationships based on insurance contracts and identifiable in conjunction with the merger of the P&C insurance business are also recognised as other intangible assets. Customer relationships were measured at fair value at the acquisition. Measurement of the present value of all future cash flows from an asset takes into consideration insurance premium revisions, cross-sales and general economic forecasts. The average validity period of insurance contracts, 6 years, is deemed as the asset's useful life, during which time it is amortised on a straight-line basis. When necessary, customer relationships are tested for impairment.

Intangible assets with finite useful lives are measured at historical cost less accumulated amortisation and impairment losses. Intangible assets are amortised on a straight-line basis over the estimated useful life of the asset. The estimated useful lives by asset class are as follows:

IT software	4 - 10 years
Other intangible assets	3 - 10 years

Property, plant and equipment

Property, plant and equipment comprise properties occupied for Sampo's own activities, office equipment, fixtures and fittings, and furniture. Classification of properties as those occupied for own activities and those for investment activities is based on the square metres in use. If the proportion of a property in Sampo's use is no more than 10 per cent, the property is classified as an investment property.

Property, plant and equipment are measured at historical cost less accumulated depreciation and impairment losses. Improvement costs are added to the carrying amount of a property when it is probable that the future economic benefits that are attributable to the asset will flow to the entity. Costs for repairs and maintenance are recognised as expenses in the period in which they were incurred.

Items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful life. In most cases, the residual value is estimated at zero. Land is not depreciated. Estimates of useful life are reviewed at financial year-ends and the useful life is adjusted if the estimates change significantly. The estimated useful lives by asset class are as follows:

Residential, business premises and offices	20 - 60 years
Industrial buildings and warehouses	30 - 60 years
Components of buildings	10 - 15 years
IT equipment and motor vehicles	3 - 5 years
Other equipment	3 - 10 years

Depreciation of property, plant or equipment will be discontinued, if the asset in question is classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.

Impairment of intangible assets and property, plant and equipment

At each reporting date the Group assesses whether there is any indication that an intangible asset or an item of property, plant or equipment may be impaired. If any such indication exists, the Group will estimate the recoverable amount of the asset. In addition, goodwill, intangible assets not yet available for use and intangible assets with an indefinite useful life will be tested for impairment annually, independent of any indication of impairment. For impairment testing the goodwill is allocated to the cash-generating units of the Group from the date of acquisition. In the test the carrying amount of the cash-generating unit, including the goodwill, is compared with its recoverable amount.

The recoverable amount is the higher of an asset's fair value less costs to sell and its value in use. The value in use is calculated by estimating future net cash flows expected to be derived from an asset or a cash-generating unit, and by discounting them to their present value using a pre-tax discount rate. If the carrying amount of an asset is higher than its recoverable amount, an impairment loss is recognised in profit or loss. In conjunction with this, the impaired asset's useful life will be re-determined.

If there is any indication that an impairment loss recognised for an asset in prior periods may no longer exist or may have decreased, the recoverable amount of the asset will be estimated. If the recoverable amount of the asset exceeds the carrying amount, the impairment loss is reversed, but no more than to the carrying amount which it would have been without recognition of the impairment loss. Impairment losses recognised for goodwill are not reversed.

Investment property

Investment property is held to earn rentals and for capital appreciation. The Group applies the cost model to investment property in the same way as it applies to property, plant and equipment. The depreciation periods and methods and the impairment principles are also the same as those applied to corresponding property occupied for own activities. In the Holding segment, the investment property of the associate Nordea is measured at fair value in item Investments in associates.

The fair value of investment property is estimated using a method based on estimates of future cash flows and a comparison method based on information from actual sales in the market. The fair value of investment property is presented in the Notes.

The valuation takes into account the characteristics of the property with respect to location, condition, lease situation and comparable market information regarding rents, yield requirements and unit prices. During the financial year, the valuations were conducted by the Group's internal resources.

Provisions

A provision is recognised when the Group has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the Group can reliably estimate the amount of the obligation. If it is expected that some or all of the expenditure required to settle the provision will be reimbursed by another party, the reimbursement will be treated as a separate asset only when it is virtually certain that the Group will receive it.

Insurance and investment contracts

Insurance contracts are treated, in accordance with IFRS 4, either as insurance or investment contracts. Under the standard, insurance contracts are classified as insurance contracts if significant insurance risk is transferred between the policyholder and the insurer. If the risk transferred on the basis of the contract is essentially financial risk rather than significant insurance risk, the contract is classified as an investment contract. Classification of a contract as an insurance contract or investment contract determines the measurement principle applied to it.

Sampo treats the liabilities arising from contracts in the first phase of the standard according to national accounting standards, except for the equalisation reserve and the provision for collective guarantee item and their changes which are reported in equity and profit or loss, in accordance with the IFRS.

The risks involved in insurance and investment contracts are widely elaborated in the Group's financial statements' Risk Management section.

Reinsurance contracts

A reinsurance contract is a contract which meets the IFRS 4 requirements for insurance contracts and on the basis of which the Sampo Group (the cedant) may receive compensation from another insurer (the reinsurer), if it becomes liable for paying compensation based on other insurance contracts it has issued. Such compensation received on the basis of reinsurance contracts is included in the balance sheet under 'Reinsurers' share of insurance liabilities' and 'Other assets'. The former item includes the reinsurers' share of the provisions for unearned premiums and claims outstanding in the Group's reinsured insurance contracts, while the latter includes short-term receivables from reinsurers.

When the Group itself has to pay compensation to another insurer on the basis of a reinsurance contract, the liability is recognised in the item 'Other liabilities'.

Receivables and liabilities related to reinsurance are measured uniformly with the cedant's receivables and liabilities. Reinsurance receivables are tested annually for impairment. Impairment losses are recognised through profit or loss, if there is objective evidence indicating that the Group (as the cedant) will not receive all amounts of money it is entitled to on a contractual basis.

P&C insurance business

Classification of insurance contracts

In classifying insurance contracts and examining their related risks, embedded contracts are interpreted as one contract.

Other than insurance contracts, i.e. contracts where the risk is not transferred, include Captive contracts in which an insurance company underwrites a company's direct business and reinsures the same risk in an insurance company in the same group as the policyholder. There are also contracts in P&C insurance (Reverse Flow Fronting contracts) in which the insurance company grants insurance and then transfers the insurance risk to the final insurer. For both the above types of contract, only the net effect of the contract relationship is recognised in the income statement and balance sheet (instead of the gross treatment, as previously). The prerequisite for net treatment is that the net retention recognised on the contract is zero.

There are also contracts in P&C insurance in which the insurance risk is eliminated by a retrospective insurance premium, i.e. the difference between forecast and actual losses is evened out by an additional premium directly or in connection with the annual renewal of the insurance. The net cash flow from these contracts is recognised directly in the balance sheet, without recognising it first in the income statement as premiums written and claims incurred.

Insurance liabilities

Insurance liabilities are the net contractual obligations which the insurer has on the basis of insurance contracts. Insurance liabilities, consisting of the provisions for unearned premiums and unexpired risks and for claims outstanding, correspond to the obligations under insurance contracts.

The provision for unearned premiums is intended to cover anticipated claims costs and operating expenses during the remaining term of insurance contracts in force. In P&C insurance and reinsurance, the provision for unearned premiums is normally calculated on a strictly proportional basis over time, i.e. on a pro rata temporis basis. In the event that premiums are judged to be insufficient to cover anticipated claims costs and operating expenses, the provision for unearned premiums must be augmented by a provision for unexpired risks. Calculation of the provision for unexpired risks must also take into account instalment premiums not yet due.

The provision for claims outstanding is intended to cover the anticipated future payments of all claims incurred, including claims not yet reported to the company; i.e. the IBNR (incurred but not reported) provision. The provision for claims outstanding includes claims payments plus all estimated costs of claim settlements.

The provision for claims outstanding in direct P&C insurance and reinsurance may be calculated by statistical methods or through individual assessments of individual claims. Often a combination of the two methods is used, meaning large claims are assessed individually while small claims and claims incurred but not reported (the IBNR provision) are calculated using statistical methods. The provision for claims outstanding is not discounted, with the exception of provisions for vested annuities, which are discounted to present value using standard actuarial methods, taking anticipated inflation and mortality into account.

Premiums written for P&C insurance and reinsurance are recognised in the income statement when the annual insurance premium is due for payment.

Liability adequacy test

A liability adequacy test is performed separately for both the provision for claims outstanding and the provision for unearned premiums. The provision for claims outstanding is based on estimates of future cash flows. The estimates are made by using well-established actuarial methods.

The provision for unearned premiums is, for the most part, calculated on a strictly proportional basis over time (so called pro rata temporis principle). The adequacy of the provision for unearned premiums is tested by calculating a provision for unexpired risks for each company per business area and line of business. If the provisions are judged to be insufficient, the provision for unearned premiums is augmented by recognising a provision for unexpired risks.

Provision for a collective guarantee

The provision for a collective guarantee has been regulated by Finland's Traffic and Accident Insurance Act and has been collected by insurers. Its purpose has been to guarantee the payment of claims to customers in the event that any insurers are put into liquidation or bankruptcy. Previously in the Sampo Group, the provision for a collective guarantee has been recognised in undistributable equity, in accordance with the Framework of the IFRS, until it has become probable that the obligation will be settled. Due to the legislative changes the provision for a collective guarantee was dissolved on 31 Dec. 2010. The funds related to the Workers' compensation were transferred to the pay-as-you-go system where they will be returned to policyholders over the next 3 years.

Pay-as-you-go system for P&C insurance

Pensions and compensation for healthcare or medical rehabilitation paid on the basis of Finland's statutory P&C insurance (accident, motor third party liability and patient insurance) are raised annually by the TEL (Employee Pensions Act) index in order to maintain the real value of the pensions. The index raises are not the responsibility of the insurance companies, but are funded by the so-called pay-as-you-go principle, i.e. each year premiums written include index raises to the same amount that is paid out in that year. In practice, the P&C insurance companies collect a so-called expense loading along with their premiums written, which is then forwarded to the central organisation for the particular insurance line. The central organisation distributes the pay-as-you-go contributions collected so that the company undertaking the type of insurance in question receives an amount equal to the compensation falling under the pay-as-you-go system it has paid that year. The insurer's participation in the payment is proportional to the insurer's market share in the insurance line in question.

The pay-as-you-go system related to pension index raises is not treated as an insurance activity under IFRS 4 and does not generate any risk for the insurance company. Thus, the pay-as-you-go contribution collected together with the insurance premium is not deemed to be premium income, and the pension index raise paid out is not deemed to be claims incurred. Because the collected index raise corresponds in amount to the paid out pension index raise, the said items are set-off in the Income Statement item 'Other expenses from operations'. The share of a balancing figure not yet received from, or not paid by, a central organisation is presented as current receivables or liabilities in the balance sheet items 'Other assets' or 'Other liabilities'.

Deferred acquisition costs

In the P&C insurance business, acquisition costs clearly relating to the writing of insurance contracts and extending beyond the financial year are recognised as assets in the balance sheet. Acquisition costs include operating expenses directly or indirectly attributable to writing insurance contracts, fees and commissions, marketing expenses and the salaries and overheads of sales staff. Acquisition costs are amortised in the same way as provisions for unearned premiums, usually in 12 months at the maximum.

Life insurance business

Classification of insurance contracts

Policies issued by the life insurance business are classified as either insurance contracts or investment contracts. Insurance contracts are contracts that carry significant insurance risk or contracts in which the policyholder has the right to change the contract by increasing the risk. As capital redemption contracts do not carry insurance risk, these contracts are classified as investment contracts.

The discretionary participation feature (DPF) of a contract is a contractual right held by a policyholder to receive additional benefits, as a supplement to the guaranteed minimum benefits. The supplements are bonuses based on the reserves of policies credited to the policy reserve, additional benefits in the case of death, or lowering of insurance premiums. In Mandatum Life, the principle of fairness specifies the application of this feature. In unit-linked contracts the policyholder carries the investment risk by choosing the investment funds linked to the contracts.

Measurement of insurance and investment contracts

National accounting standards are applied to all insurance contracts and to investment contracts with DPF, with the exception of the equalisation provision and changes in it.

All contracts, except unit-linked contracts and the assumed reinsurance, include DPF. In those unit-linked contracts which are not insurance contracts, the policyholder has the possibility to transfer the return on savings from unit-linked schemes to guaranteed interest with DPF. Thus, these contracts are also measured as contracts with DPF.

The surrender right, guaranteed interest and the unbundling of the insurance component from the deposit component and similar features are not separated and measured separately.

Insurance and investment contract liabilities and reinsurance assets

Liabilities arising from insurance and investment contracts consist of provisions for unearned premiums and outstanding claims. In the life insurance business, various methods are applied in calculating liabilities which involve assumptions on matters such as mortality, morbidity, the yield level of investments, future operating expenses and the settlement of claims.

Changes in the liabilities of reinsurance have been calculated at variable rates of exchange. In direct insurance, the insurance liability is calculated by policy, while in reinsurance it is calculated on the basis of the reports of the ceding company or the company's own bases of calculation.

The interest rate used in discounting liabilities is, at most, the maximum rate accepted by the authorities in each country. The guaranteed interest used in the direct insurance premium basis varies on the basis of the starting date of the insurance from zero to 4.5 per cent. The interest rate used in discounting liabilities is the same or lower than that used in premium calculation. Most of the liabilities of the accrued benefits of pension business with DPF are discounted by an interest rate of 3.5 per cent, also being the highest discount rate used. The highest discount rate used for accrued benefits is 3.5 per cent. In addition, Mandatum Life has for the year 2011 lowered the maximum rate to 2.5 % and for the year 2011 to 3.0 %.

Due to the difference in the discount rate of liabilities and the guaranteed interest of 4.5 %, supplementary provisions for guaranteed interest have been added to technical provisions. In the subsidiary, Mandatum Life Insurance Baltic, the discount rate varies by country between 2.5 - 4.0 per cent and the average guaranteed interest rate between 2.5 - 4.0 per cent.

Mortality assumptions have an essential effect on the amount of liability, particularly in group pension insurance, the liability of which accounts for about 37 per cent of the technical provisions of the Finnish life company. A so-called cohort mortality model is used in calculating the group pension insurance liability since 2002, incorporating the insured person's birth year in addition to his or her age and sex. The cohort mortality model assumes that life expectancy increases by one year over a ten-year period.

For unit-linked contracts, all the liabilities and the assets covering the unit-linked insurance are matched. Both the liabilities and the assets have been presented in the Notes to the financial statements. In calculating the provision for claims outstanding of direct insurance, discounting is applied only in connection with the liabilities of pensions whose payment has commenced. The liabilities of assumed reinsurance are based on the reports of the ceding company and on an estimate of claims which have not yet been settled.

The provision for claims outstanding is intended to cover the anticipated future payments of all claims incurred, including claims not yet reported to the company (the "IBNR" provision). The provision for claims outstanding includes claim payments plus all costs of claim settlements.

The amounts of short- and long-term liabilities in technical provisions are determined annually. The Group's financial statements' Risk Management section elaborates on the change of technical provisions and their forecast annual maturities.

Liability adequacy test

A liability adequacy test is applied to all portfolios, company by company, and the need for augmentation is checked, company by company, on the basis of the adequacy of the whole technical provisions. The test includes all the expected contractual cash flows for non-unit-linked liabilities. The expected contractual cash flows include expected premiums, claims, bonuses and expenses. The claims have been estimated including surrenders and other insurance transactions based on historical data. The amounts of claims include the guaranteed interest and an estimation of future bonuses. The present values of the cash flows have been discounted to the balance sheet date by using a swap rate curve.

For the unit-linked business, the present values of the insurance risk and expense results are calculated correspondingly. If the aggregate amount of the liability for the unit-linked and other business presumes an augmentation, the liability is increased by the amount shown by the test and recognised in profit or loss.

Principle of fairness

According to Chapter 13, Section 2 of the Finnish Insurance Companies' Act, the Principle of Fairness must be observed in life insurance and investment contracts with a discretionary participation feature. If the solvency requirements do not prevent it, a reasonable part of the surplus has to be returned to these policies as bonuses.

Mandatum Life aims at giving a total return before charges and taxes on policyholders' savings in contracts with DPF that is at least the yield of a Finnish government long-term bond. The total return consists of the guaranteed interest rate and bonuses determined annually. Continuity is pursued in the level of bonuses. The aim is to maintain the company's solvency status on such a level that it neither limits the giving of bonuses to policyholders nor the distribution of profit to shareholders. The principle is explained in detail on the company's website.

The legislation of Estonia, Latvia and Lithuania respectively does not contain provisions corresponding to the Principle of Fairness.

Employee benefits

Post-employment benefits

Post-employment benefits include pensions and life insurance.

Sampo has defined benefit plans in Sweden and Norway, and defined contribution plans in other countries. The most significant defined contribution plan is that arranged through the Employees' Pensions Act (TEL) in Finland.

In defined contribution plans, the Group pays fixed contributions to a pension insurance company and has no legal or constructive obligation to pay further contributions. The obligations arising from a defined contribution plan are recognised as an expense in the period that the obligation relates to.

In defined benefit plans, the company still has obligations after paying the contributions for the financial period and bears their actuarial and/or investment risk. The obligation is calculated separately for each plan using the projected unit credit method. In calculating the amount of the obligation, actuarial assumptions are used. The pension costs are recognised as an expense for the service period of employees.

Defined benefit plans are both funded and unfunded. The amounts reported as pension costs during a financial year consist of 1) the actuarially calculated earnings of old-age pensions during the year, calculated straight-line, based on pensionable income at the time of retirement, and 2) calculated effects in the form of interest expense for crediting/appreciating the preceding years' established pension obligations less 3) revenues from the assets covered by the plan. The calculation of pension costs during the financial year starts at the beginning of the year and is based on assumptions about such factors as salary growth and price inflation throughout the duration of the obligation and on the anticipated/expected return on the plan's assets and the market interest rate on the obligation during the financial year.

When reporting defined benefit plans in the balance sheet, the so-called corridor method is used. According to this model, accrued actuarial gains and losses resulting from differences between calculated assumptions and the actual outcome are not reported in the income statement unless the accumulated difference exceeds 10 per cent of the present value of the future obligations or the fair value of the plan's assets, whichever is higher. Accumulated differences that exceed the 10 per cent limit are accrued in the income statement as pension costs throughout the duration of the obligation. The accumulated accrued actuarial gains and losses calculated in this way that are not reported in the income statement are reported in the balance sheet as a net asset/net liability.

The Group also has certain voluntary defined benefit plans. These are intra-Group, included in the insurance liabilities of Mandatum Life and have no material significance.

Termination benefits

An obligation based on termination of employment is recognised as a liability when the Group is verifiably committed to terminate the employment of one or more persons before the normal retirement date or to grant benefits payable upon termination as a result of an offer to promote voluntary redundancy. As no economic benefit is expected to flow to the employer from these benefits in the future, they are recognised immediately as an expense. Obligations maturing more than 12 months later than the balance sheet date are discounted. The benefits payable upon termination at Sampo are the monetary and pension packages related to redundancy.

Share-based payments

During the financial year, Sampo had valid share-based incentive schemes settled either in cash (the long-term incentive schemes 2006 II, 2008 I, 2008 II and 2009 I for executives and specialists) or cash or equity instruments (Sampo 2006). Schemes have been measured at fair value at the grant date and those settled in cash also at every reporting date thereafter.

In the schemes settled in cash, the valuation is recognised as a liability and changes recognised through profit or loss. In the schemes with equity instrument payments, valuation is recognised as an expense and as an increase in equity on a straight-line basis during the vesting period.

The fair value of schemes has been determined using the Black-Scholes-pricing model. The fair value of the market-based part of the incentive takes into consideration the model's forecast concerning the number of shares to be paid as an incentive. The effects of nonmarket based terms are not included in the fair value of the incentive; instead, they are taken into account in the number of those share options that are expected to be exercised during the vesting period. In this respect, the Group will update the assumption on the estimated final number of shares at every interim or annual balance sheet date.

Income taxes

Item Tax expenses in the income statement comprise current and deferred tax. Tax expenses are recognised through profit or loss, except for items recognised directly in equity or other comprehensive income, in which case the tax effect will also be recognised those items. Current tax is calculated based on the valid tax rate of each country. Tax is adjusted by any tax related to previous periods.

Deferred tax is calculated on all temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. Deferred tax is not recognised on non-deductible goodwill impairment, and nor is it recognised on the undistributed profits of subsidiaries to the extent that it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax is calculated by using the enacted tax rates prior to the balance sheet date.

A deferred tax asset is recognised to the extent that it is probable that future taxable income will be available against which a temporary difference can be utilised.

Share capital

The incremental costs directly attributable to the issue of new shares or options or to the acquisition of a business are included in equity as a deduction, net of tax, from the proceeds.

Dividends are recognised in equity in the period when they are approved by the Annual General Meeting.

When the parent company or other Group companies purchase the parent company's equity shares, the consideration paid is deducted from the share capital as treasury shares until they are cancelled. If such shares are subsequently sold or reissued, any consideration received is included in equity.

Cash and cash equivalents

Cash and cash equivalents comprise cash and short-term deposits (3 months).

Sampo presents cash flows from operating activities using the indirect method in which the profit (loss) before taxation is adjusted for the effects of transactions of a non-cash nature, deferrals and accruals, and income and expense associated with investing or financing cash flows.

In the cash flow statement, interest received and paid is presented in cash flows from operating activities. In addition, the dividends received are included in cash flows from operating activities. Dividends paid are presented in cash flows from financing.

Accounting policies requiring management judgement and key sources of estimation uncertainties

Preparation of the accounts in accordance with the IFRS requires management estimates and assumptions that affect the revenue, expenses, assets, liabilities and contingent liabilities presented in the financial statements. Judgement is needed also in the application of accounting policies. The estimates made are based on the best information available at the balance sheet date. The estimation is based on historical experiences and most probable assumptions concerning the future at the balance sheet date. The actual outcome may deviate from results based on estimates and assumptions. Any changes in the estimates will be recognised in the financial year during which the estimate is reviewed and in all subsequent periods.

Sampo's main assumptions concerning the future and the key uncertainties related to balance sheet estimates are related, for example, to assumptions used in actuarial calculations, determination of fair values of non-quoted financial assets and liabilities and investment property and determination of the impairment of financial assets and intangible assets. From Sampo's perspective, accounting policies concerning these areas require most significant use of estimates and assumptions.

Actuarial assumptions

Evaluation of insurance liabilities always involves uncertainty, as technical provisions are based on estimates and assumptions concerning future claims costs. The estimates are based on statistics on historical claims available to the Group on the balance sheet date. The uncertainty related to the estimates is generally greater when estimating new insurance portfolios or portfolios where clarification of a loss takes a long time because complete claims statistics are not yet available. In addition to the historical data, estimates of insurance liabilities take into consideration other matters such as claims development, the amount of unpaid claims, legislative changes, court rulings and the general economic situation.

A substantial part of the Group's P&C insurance liabilities concerns statutory accident and traffic insurance. The most significant uncertainties related to the evaluation of these liabilities are assumptions about inflation, mortality, discount rates and the effects of legislative revisions and legal practices.

The actuarial assumptions applied to life insurance liabilities are discussed in more detail under 'Insurance and investment contract liabilities and reinsurance assets'.

Defined benefit plans as intended in IAS 19 are also estimated in accordance with actuarial principles. As the calculation of a pension plan reserve is based on expected future pensions, assumptions must be made not only of discount rates, but also of matters such as mortality, employee turnover, price inflation and future salaries.

Determination of fair value

The fair value of any non-quoted financial assets is determined using valuation methods that are generally accepted in the market. These methods are discussed in more detail above under 'Fair value'.

Fair values of investment property have been determined internally during the financial year on the basis of comparative information derived from the market. They include management assumptions concerning market return requirements and the discount rate applied.

Impairment tests

Goodwill, intangible assets not yet available for use, and intangible assets with an indefinite useful life are tested for impairment at least annually. The recoverable amounts from cash-generating units have mainly been determined using calculations based on value in use. These require management estimates on matters such as future cash flows, the discount rate, and general economic growth and inflation.

Application of new or revised IFRSs and interpretations

Applications in 2011

In 2011, the Group will apply the following new or amended standards and interpretations related to the Group's business, if approved by the EU. If not stated otherwise, the following standards or interpretations or their amendments have already been approved by the EU at the balance sheet date.

The amendment to IAS 32 Financial Instruments: Presentation - Classification of Rights Issues (effective for annual periods beginning on 1 Feb. 2010 or after) addresses the accounting for rights, options or warrants that are denominated in a currency other than the functional currency of the issuer. The Group estimates that the change will have no influence on the Group's financial statements reporting.

The revised IAS 24 Related Party Disclosure (effective for annual periods beginning on 1 Jan. 2011 or after) clarifies the concept of related parties. The Group estimates that the revision will have no influence on the Group's financial statements reporting.

IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments (effective for annual periods beginning on 1 July 2010 or after) clarifies the accounting by the entity that, after renegotiations, issues equity instruments to its creditor in order to settle all or part of its financial liability. The Group estimates that the interpretation will have no influence on the Group's financial statements reporting.

Amended IFRIC 14 Prepayments of a Minimum Funding Requirement (effective for annual periods beginning on 1 Jan. 2011 or after) permits an entity to treat the benefit of certain early payments as assets. The Group estimates that the interpretation will have no influence on the Group's financial statements reporting.

Notes to the Accounts

Segment Information

The Group's business segments comprise P&C insurance, Life insurance and Holding company.

Geographical information has been disclosed about income from external customers and non-current assets. The reported areas are Finland, Sweden, Norway, Denmark, the Baltic countries and other countries.

Segment information has been produced in accordance with the accounting policies adopted for preparing and presenting the consolidated nancial statements.The segment revenue, expense, assets and liabilities, either directly attributable or reasonably allocable, have been allocated to the segments. Inter-segment pricing is based on market prices. The transactions, assets and liabilities between the segments are eliminated in the consolidated nancial statements on a line-by-line basis.

Depreciation and amortisation by segment are disclosed in notes 11 - 13 and investments in associates in note 14.

	P&C	Life		Elimina
EURm	insurance	insurance	Holding	tion	Group
Insurance premius written	3,985	1,111	-	-	5,096
Net income from investments	487	645	60	-9	1,183
Other operating income	25	0	16	-15	26
Claims incurred	-2,689	-844	-	-	-3,533
Change in liabilities for insurance and investment contracts	-91	-678	-	-	-769
Sta osts	-479	-35	-13	-	-527
Other operating expenses	-501	-49	-11	15	-547
Finance costs	-29	-8	-100	6	-131
Share of associates' pro t/loss	0	0	523	-	523
Pro t before taxes	707	142	474	-3	1,320
Taxes	-189	-37	9	0	-217

Consolidated income statement by business segment for year ended 31 December 2010

Profit for the year	518	105	483	-3	1,104
Other comprehensive income for the year
Exchange differences	214	0	-	-	214
Available-for-sale financial assets	286	315	4	1	605
Cash flow hedges	-	-9	-	-	-9
Share of associate's other comprehensive income	-	-	48	-	48
Income tax relating to components of other comprehensive income	-75	-80	-1	0	-156
Other comprehensive income for the year, net of tax	425	226	51	1	703
Total comprehensive income for the year	943	332	534	-2	1,807
Profit attributable to
Owners of the parent					1,104
Non-controlling interests					0
Total comprehensive income attributable to
Owners of the parent					1,807
Non-controlling interests					0

Consolidated income statement by business segment for year ended 31 December 2009

EURm	P&C insurance	Life insurance	Holding	Elimina tion	Group
Insurance premius written	3,677	803	-	-	4,479
Net income from investments	394	629	109	24	1,155
Other operating income	23	0	13	-16	20
Claims incurred	-2,477	-628	-	-	-3,105
Change in liabilities for insurance and investment contracts	-33	-600	-	-	-633
Staff costs	-470	-29	-11	-	-510
Other operating expenses	-439	-46	-17	7	-495

Finance costs	-30	-8	-58	9	-87
Share of associates' pro t/loss	0	0	-	-	1

Pro t before taxes	644	121	36	23	825

Taxes	-159	-28	9	-6	-184
Pro t for the year	485	93	45	17	641
Other comprehensive income for the year
Exchange di erences	123	0	-	-	123
Available-for-sal nancial assets	709	546	1,756	-23	2,989
Cas ow hedges	-	-3	-	-	-3
Income tax relating to components of other comprehensive income	-191	-141	0	6	-326
Other comprehensive income for the year, net of tax	641	402	1,756	-17	2,782
Total comprehensive income for the year	1,127	495	1,801	0	3,423
Pro t attributable to
Owners of the parent					641
Non-controlling interests					0
Total comprehensive income attributable to
Owners of the parent					3,423
Non-controlling interests					0

Consolidated balance sheet by business segment at 31 December 2010

	P&C	Life		Elimina
EURm	insurance	insurance	Holding	tion	Group
Assets
Property, plant and equipment	19	5	5	-	29
Investment property	26	96	4	-4	122
Intangible assets	577	165	1	-	743
Investments in associates	11	0	5,688	-	5,699

Financial assets	11,226	5,745	3,101	-2,563	17,508
Investments related to unit-linked insurance contracts	-	3,127	-	-	3,127
Tax assets	50	-	18	0	68
Reinsurers' share of insurance liabilities	510	4	-	-	514
Other assets	1,363	106	66	-20	1,515
Cash and cash equivalents	319	152	56	-	527
Total assets	14,101	9,400	8,939	-2,587	29,852
Liabilities
Liabilities for insurance and investment contracts	9,340	4,410	-	-	13,749
Liabilities for unit-linked insurance and investment contracts	-	3,124	-	-	3,124
Financial liabilities	512	126	1,741	-191	2,187
Tax liabilities	464	176	-	-	640
Provisions	36	-	-	-	36
Employee bene ts	105	-	-	-	105
Other liabilities	690	339	117	-22	1,124
Total liabilities	11,146	8,174	1,857	-213	20,965
Equity
Share capital					98
Reserves					1,530
Retained earnings					6,459
Other components of equity					799
Equity attributable to parent company's equityholders					8,886
Non-controlling interests					0
Total equity					8,886
Total equity and liabilities					29,851

Consolidated balance sheet by business segment at 31 December 2009

	P&C	Life		Elimina
EURm	insurance	insurance	Holding	tion	Group

Assets

Property, plant and equipment	23	5	5	-	34
Investment property	28	87	10	-	124
Intangible assets	521	167	0	-	688
Investments in associates	3	0	5,168	-	5,172
Financial assets	10,248	5,216	2,554	-2,538	15,479
Investments related to unit-linked insurance contracts	-	2,366	-	-	2,366
Tax assets	71	-	11	0	81
Reinsurers' share of insurance liabilities	477	4	-	-	481
Other assets	1,265	133	76	-36	1,439
Cash and cash equivalents	292	68	412	-	771
Total assets	12,927	8,047	8,235	-2,574	26,635
Liabilities
Liabilities for insurance and investment contracts	8,583	4,431	-	-	13,014
Liabilities for unit-linked insurance and investment contracts	-	2,359	-	-	2,359
Financial liabilities	524	132	1609	-166	2,098
Tax liabilities	403	97	-	-	500
Provisions	35	-	-	-	35
Employee bene ts	104	-	-	-	104
Other liabilities	719	134	95	-36	912
Total liabilities	10,367	7,153	1,703	-202	19,022
Equity
Share capital					98

Total equity and liabilities	26,635
Total equity	7,613
Non-controlling interests	0
Equity attributable to parent company's equityholders	7,613
Other components of equity	96
Retained earnings	5,889
Reserves	1,530

Geographical information

EURm	Finland	Sweden	Norway	Denmark	Baltic	Other	Total
At 31 Dec. 2010
Revenue from external customers
P&C insurance	827	1,167	1,451	323	125	0	3,894
Life insurance	1,051	-		- -	60	-	1,111
Holding	76	-		- -	-	-	76
Total	1,954	1,167	1,451	323	185	0	5,081
Non-current assets
P&C insurance	108	494	13	3	14	0	632
Life insurance	266	-		- -	1	-	267
Holding	9	5,688		- -	-	-	5,697
Total	383	6,183	13	3	15	-	6,596
At 31 Dec. 2009
Revenue from external customers
P&C insurance	811	1,051	1,329	298	154	0	3,643
Life insurance	760	-		- -	42	-	803
Holding	42	80		- -	-	-	122
Total	1,614	1,130	1,329	298	197	0	4,568
Non-current assets
P&C insurance	102	432	10	3	27	-	575
Life insurance	259	-		- -	1	-	260
Holding	15	5,168		- -	-	-	5,183
Total	376	5,600	10	3	28	0	6,017

The revenue includes insurance premiums according to the underwriting country, consisting of premiums earned for P&C insurance and premiums written for Life insurance, and net investment income and other operating income in the Holding segment.

Non-current assets comprise of intangible assets, investments in associates, property, plant and equipment, and investment property.

1 Insurance Premiums Written

P&C insurance

EURm	2010	2009
Premiums from insurance contracts
Premiums written, direct insurance	4,105	3,770
Premiums written, assumed reinsurance	84	118
Premiums written, gross	4,189	3,888
Reinsurers' share of premiums written	-204	-211
Premiums written, net	3,985	3,677
Change in unearned premium provision	-94	-28
Reinsurers' share	2	-5
Change in unearned premium provision, net	-91	-33
Premiums earned, total	3,894	3,643
Life insurance
EURm	2010	2009
Vakuutussopimuksista
Premiums written, direct insurance	648	508
Premiums written, assumed reinsurance	2	2
Insurance contracts total, gross	649	510
Premium revenue ceded to reinsurers on insurance contracts issued	-6	-6
Insurance contracts total, net	643	504
Investment contracts	468	299
Premiums written, net ¹)	1,111	803
Group, total	5,096	4,479

¹) The change in unearned premiums is presented in note 4 " The change in insurance and investment liabilities".

Speci cation of premiums written in Life insurance

EURm	2010	2009
Premiums from insurance contracts
Premiums from contracts with discretionary participation feature	271	231
Premiums from unit-linked contracts	376	273
Premiums from other contracts	1	4
Total	648	508
Assumed reinsurance	2	2
Premiums from investment contracts
Premiums from contracts with discretionary participation feature	1	20
Premiums from unit-linked contracts	467	279
Total	468	299
Insurance and investment contracts, total	1,117	809
Reinsurers' share	-6	-6
Premiums written, total	1,111	803
Single and regular premiums from direct insurance
Regular premiums, insurance contracts	392	381
Single premiums, insurance contracts	256	127
Single premiums, investment contracts	468	299
Total	1,115	807

2 Net Income from Investments

P&C insurance

EURm	2010	2009
Financial assets
Derivativ nancial instruments
Gains/losses	28	55

Financial assets designated as at fair value through p/l
Debt securities
Interest income	4	9
Gains/losses	2	19
Equity securities
Gains/losses	2	10
Dividend income	1	0
Total	9	38

Loans and receivables
Interest income	13	13

Financial assets available-for-sale
Debt securities
Interest income	358	366
Impairment losses	-3	1
Gains/losses	91	44
Equity securities
Gains/losses	66	18
Impairment losses	-19	-86
Dividend income	27	14
Total	519	357
Total fro nancial assets	569	463
Other assets
Investment properties

Gains/losses	-1	0
Other	-1	-1
Total from other assets	-2	0

Expense on other tha nancial liabilities	-16	-3
E ect of discounting annuities	-58	-59
Fee and commission expenses
Asset management	-8	-6
P&C insurance, total	487	394
Net income from investments includes exchange di erences
Arising from insurance business	-4	13
Arising from investments	29	-16

Included in gains/losses fro nancial assets available-for-sale is a net gain of EURm -143 (26) transferred from the fair value reserve.

Life insurance

EURm	2010	2009
Financial assets
Derivativ nancial instruments
Gains/losses	-7	50

Financial assets designated as at fair value through p/l
Debt securities
Interest income	3	3
Gains/losses	2	2
Equity securities
Gains/losses	0	0
Dividend income	0	0
Total	6	6

Investments related to unit-linked contracts
Debt securities

Interest income	27	13
Gains/losses	21	30
Equity securities
Gains/losses	281	314
Dividend income	2	0
Loans and receivables
Interest income	-1	0
Other financial assets
Gains/losses	2	2
Total	333	359
Loans and receivables
Interest income	4	4
Gains/losses	0	0
Total	4	4
Financial assets available-for-sale
Debt securities
Interest income	151	184
Gains/losses	38	5
Equity securities
Gains/losses	72	109
Impairment losses	-7	-140
Dividend income	42	27
Total	297	184
Total financial assets	631	604
Other assets
Investment properties
Gains/losses	0	15
Impairment losses	0	0
Other	5	6
Total other assets	5	20
Net fee income
Asset management	-15	-13

Fee income	23	17
Total	8	5

Life insurance, total	645	629

Net income from investments includes exchange differences
Arising from investments	9	1

Included in gains/losses from financial assets available-for-sale is a net gain of EURm 86 (-21) transferred from the fair value reserve.

Holding

Financial assets Derivative financial instruments Gains/losses 26 Loans and receivables Interest income 1 Gains/losses 20 Total 21 Financial assets available-for-sale Debt securities Interest income 9 Gains/losses 1 Equity securities Gains/losses 0 Impairment losses -1 Dividend income 2 Total 11 Total financial assets 58	EURm	2010	2009


			15


			1
			7
			8



			19
			-4

			-19
			-1
			81
			77

			100

Other assets

Investment properties
Gains/losses	2	1
Other	0	0
Total other assets	2	1
Net fee income	1	8
Holding, total	60	109

Included in gains/losses fro nancial assets available-for-sale is a net gain of EURm 1 (23) transferred from the fair value reserve.

Group, total 1,183	1,155

The changes in the fair value reserve are disclosed in the Statement of changes in equity.

Other income and expenses comprise rental income, maintenance expenses and depreciation of investment property.

All the income and expenses arising from investments are included in Net income from investments. Gains/losses include realised gains/losses on sales, unrealised and realised changes in fair values and exchange di erences. Unrealised fair value changes fo nancial assets available-for-sale are recorded in other comprehensive income and presented in the fair value reserve in equity.

The e ect of discounting annuities in P&C insurance is disclosed separately. The provision for annuities is calculated in accordance with actuarial principles taking anticipated in ation and mortality into consideration, and discounted to take the anticipated future return on investments into account. To cover the costs for upward adjustment of annuity provisions required for the gradual reversal of such discounting, an anticipated return on investments is added to annuity results.

3 Claims Incurred

P&C insurance

		2010			2009
EURm	Gross	Ceded	Net	Gross	Ceded	Net
P&C insurance
Claims cost attributable to current-year operations
Claims paid	-1,555	20	-1,534	-1,345	23	-1,321
Claims portfolio	14	-	14	-	-	-
Change in provision for claims outstanding (incurred and reported losses)	-782	110	-672	-674	67	-607
Change in provision for claims outstanding (incurred but not reported losses, IBNR)	-605	17	-588	-631	18	-613
Claims-adjustment costs	-13	-	-13	-8	-	-8
Change in claims provision for annuities	-9	-	-9	-15	-	-15
Total claims cost attributable to current-year operations	-2,950	147	-2,803	-2,673	108	-2,564
Claims costs attributable to prior-year operations
Claims paid	-1,149	96	-1,053	-1,103	66	-1,037
Annuities paid	-28	-	-28	-25	-	-25
Claims portfolio	-5	-	-5	-14	14	0
Change in provision for claims outstanding (incurred and reported losses)	743	-103	640	703	-36	667
Change in provision for claims outstanding (incurred but not reported losses, IBNR)	592	-33	559	513	-31	482
Total claims cost attributable to prior-year operations	154	-40	113	74	13	87
Insurance claims paid
Claims paid	-2,704	116	-2,588	-2,448	89	-2,358
Annuities paid	-39	-	-39	-34	-	-34
Claims portfolio	9	-	9	-14	14	0
Total claims paid	-2,734	116	-2,618	-2,496	103	-2,393

P&C insurance, total	-2,796	107	-2,689	-2,598	121	-2,477
Total change in provision for claims outstanding	-62	-9	-71	-103	18	-85
Claims-adjustment costs	-13	-	-13	-15	0	-15
Change in claims provision for annuities	3	-	3	-8	0	-8
Change in provision for claims outstanding (incurred but not reported losses, IBNR)	-13	-16	-29	-109	-13	-122
Change in provision for claims outstanding (incurred and reported losses)	-39	7	-32	29	31	61
Change in provision for claims outstanding

The provision for annuities is valued in accordance with normal actuarial principles taking anticipated in ation and mortality into consideration, and discounted to take the anticipated future investment return into account. To cover costs for the costs for the upward adjustment of annuity provisions required for the gradual reversal of such discounting, an anticipated return is added to the annuity results. Provisions for incurred but not reported losses pertaining to annuities in Finland are discounted. The provisions in 2010 amounted to EURm 281 (290). The nondiscounted value was EURm 472 (444). The change is partly due to foreign exchange e ects and partly to porlonged estimated payment pattern.

Interest rate used in calculating the technical provisions of annuities (%)

	2010	2009
Sweden	1.3 %	1.5 %
Finland	3.1 %	3.2 %
Denmark	2.0 %	2.0 %

Life insurance

	Provision fo r claims
	Claims paid		outstanding			Claims incurred
EURm	2010	2009	2010	2009	2010	2009
Insurance contracts
Life insurance
Contracts with discretionary participation feature (DPF)	-68	-76	1	-2	-67	-78
Other contracts	0	-2	0	0	0	-2
Unit-linked contracts	-153	-121	-2	1	-155	-120
Total	-222	-199	-1	-1	-223	-200
Pension insurance

Contracts with discretionary participation feature (DPF)	-331	-306	-64	-65	-395	-371
Unit-linked contracts	-10	-6	-1	-1	-11	-7
Total	-342	-312	-65	-66	-407	-378
Assumed reinsurance	-1	0	0	0	-1	0
Insurance contracts total, gross	-564	-511	-66	-67	-629	-577
Reinsurers´ share	4	4	0	0	4	4
Insurance contracts total, net	-560	-507	-66	-67	-626	-574
Investment contracts
Capital redemption policies
Contracts with discretionary participation feature (DPF)	-37	-27	-	-	-37	-27
Unit-linked contracts	-181	-27	-	-	-181	-27
Investment contracts, total	-218	-53	-	-	-218	-53
Life insurance, total	-778	-560	-66	-67	-844	-628
Claims paid by type of benefit
EURm					2010	2009
Insurance contracts
Life insurance
Surrender benefits					-9	-15
Death benefits					-26	-24
Maturity benefits					-26	-32
Loss adjustment expenses			0	0
Other			-8	-8
Total				-69	-78
Life insurance, unit-linked
Surrender benefits					-90	-71
Death benefits					-23	-21

Maturity bene ts	-40	-29
Loss adjustment expenses	-	0
Other	-	0
Total	-153	-121

Pension insurance
Pension payments	-303	-291
Surrender bene ts	-24	-9
Death bene ts	-4	-7
Loss adjustment expenses	0	0
Other	-	0
Total	-331	-306

Pension insurance, unit-linked
Pension payments	-2	-1
Surrender bene ts	-7	-3
Death bene ts	-2	-1
Other	0	0
Total	-10	-6
Assumed reinsurance	-1	0

Insurance contracts total, gross	-564	-511

Reinsurers´ share	4	4

Insurance contracts total, net	-560	-507
Investment contracts
Capital redemption policy, with-pro t
Surrender bene ts	-23	-1
Loss adjustment expenses	-14	-26
Other	-	0
Total	-37	-27

Investment contracts
Capital redemption policy, unit-linked
Surrender bene ts	-178	-25
Loss adjustment expenses		-2 -2
Total	-181	-27

Investment contracts total, gross	-218	-53

Claims paid total, gross	-782	-564
Claims paid total, net	-778	-560

Group, total	-3,533	-3,105

4 Change in Liabilities for Insurance and Investment Contracts

P&C Insurance

EURm	2010	2009
Change in unearned premium provision	-94	-28
Reinsurers' share	2	-5
Change in unearned premium provision, net	-91	-33

Life insurance

EURm	2010	2009
Insurance contracts
Life-insurance
Contracts with discretionary participation feature (DPF)	16	19
Other contracts	0	-1
Unit-linked contracts	-177	-138
Total	-161	-119
Pension insurance
Contracts with discretionary participation feature (DPF)	32	96
Other contracts		0
Unit-linked contracts	-240	-285
Total	-208	-189
Assumed reinsurance	0	1
Insurance contracts total, gross	-369	-307
Reinsurers´ share	0	0
Insurance contracts total, net	-369	-307

Investment contracts
Capital redemption policy
Contracts with discretionary participation feature (DPF)	35	6
Unit-linked contracts	-345	-299
Investment contracts, total	-309	-292
Change in liabilities for insurance and investment contracts in total, gross	-678	-600
Change in liabilities for insurance and investment contracts in total, net	-678	-600
Group, total	-769	-633

5 Sta osts

P&C insurance

EURm	2010	2009
Sta osts
Wages and salaries	-340	-330
Cash-settled share-based payments	-9	-4
Pension costs
- de ned contribution plans	-41	-49
- de ned bene t plans (Note 31)	-22	-26
Other social security costs	-68	-62
P&C insurance, total	-479	-470

Life insurance

EURm	2010	2009
Sta osts
Wages and salaries	-27	-23
Cash-settled share-based payments	-2	-1
Pension costs - de ned contribution plans	-4	-3
Other social security costs	-3	-2
Life insurance, total	-35	-29

Holding

EURm	2010	2009
Sta osts
Wages and salaries	-7	-7
Cash-settled share-based payments	-4	-1
Pension costs - de ned contribution plans	-1	-2
Other social security costs	-1	-1
Holding, total	-13	-11

Group, total	-527	-510

More information on share-based payments in note 37 Incentive schemes.

6 Other Operating Expenses

P&C insurance

EURm	2010	2009
IT costs	-97	-93
Other sta osts	-16	-16
Marketing expenses	-44	-39
Depreciation and amortisation	-19	-20
Rental expenses	-50	-46
Change in deferred acquisition costs	8	13
Direct insurance comissions	-151	-139
Commissions on reinsurance ceded	16	18
Other	-149	-117
P&C insurance, total	-501	-439

Life insurance

EURm	2010	2009
IT costs	-11	-11
Other sta osts	-1	-1
Marketing expenses	-4	-4
Depreciation and amortisation	-5	-3
Rental expenses	-3	-3
Direct insurance comissions	-5	-4
Comissions of reinsurance assumed	-1	-2
Commissions on reinsurance ceded	2	1
Other	-20	-19
Life insurance, total	-49	-46

Item Other for P&C and Life Insurance includes e.g. expenses related to communication, external services and other administrative expenses.

In 2010, item Other for P&C Insurance includes also the e ect of dissolvement of the collective guarantee item EURm 25.

Holding

EURm	2010	2009
IT costs	-1	-1
Other sta osts	0	0
Marketing expenses	-1	-1
Depreciation and amortisation	0	0
Rental expenses	-1	-3
Other	-8	-12
Holding, total	-11	-17
Item Other includes e.g. consultancy fees and rental and other administrative expenses.
Elimination items between segments	15	7

Group, total -547 -495

7 Result Analysis of P&C Insurance

EURm	2010	2009
Insurance premiums earned	3,894	3,643
Claims incurred	-2,943	-2,717
Operating expenses	-671	-640
Other insurance technical income and expense	0	0
Allocated investment return transferred from the non-technical account	168	201
Technical result	449	488
Net investment income	516	423
Allocated investment return transferred to the technical account	-226	-261
Other income and expense	-32	-6
Operating result	707	644

Speci cation of activity-based operating expenses included in the income statement

EURm	2010	2009
Claims-adjustment expenses (Claims paid)	-253	-239
Acquisition expenses (Operating expenses)	-452	-432
Joint administrative expenses for insurance business (Operating expenses)	-243	-239
Administrative expenses pertaining to other technical operations (Operating expenses)	-24	-22
Asset management costs (Investment expenses)	-8	-7
Total	-980	-939

8 Performance Analysis per Class of P&C Insurance

EURm	Accident and health	Motor, third party liability	Motor, other classes	Marine, air and transport	Fire and other damage to property	Third party liability	Credit insurance
Premiums written, gross
2010	621	662	1,106	131	1,261	180	6
2009	565	637	994	128	1,157	168	4
Premiums earned, gross
2010	597	666	1,075	129	1,226	179	5
2009	555	640	1,018	128	1,142	165	3
Claims incurred, gross 1)
2010	-401	-541	-799	-98	-918	-105	0
2009	-419	-545	-722	-64	-798	-100	-1
Operating expenses, gross 2)
2010	-106	-128	-169	-25	-186	-29	0
2009	-108	-128	-166	-25	-185	-27	0
Pro t/loss from ceded reinsurance
2010	-11	0	-2	-2	-31	-30	0
2009	0	0	-1	-20	-64	-2	0
Technical result before investment return
2010	79	-4	106	4	90	15	4
2009	28	-32	130	18	94	37	2

EURm	Legal expenses	Other	Total direct insurance	Reinsurance assumed	Elimination	Total
Premiums written, gross
2010	29	113	4,109	84	-4	4,189
2009	23	102	3,776	117	-6	3,888
Premiums earned, gross
2010	27	108	4,012	88	-4	4,095
2009	19	97	3,767	98	-6	3,860
Claims incurred, gross 1)
2010	-16	-99	-2,977	-70	-2	-3,049
2009	-12	-77	-2,738	-103	3	-2,838
Operating expenses, gross 2)
2010	-5	-27	-676	-10	0	-686
2009	-4	-6	-649	-10	1	-658
Pro t/loss from ceded reinsurance
2010	0	-19	-95	13	3	-80
2009	0	3	-83	3	2	-77
Technical result before investment return
2010	5	-37	264	20	-3	281
2009	4	18	297	-11	1	287

1) Activity-based operating costs EURm 253 (239) have been allocated to claims incurred.

2) Includes other technical income EURm 25 (23) and other technical expenses EURm 24 (22).

9 Earnings per Share

EURm	2010	2009
Earnings per share
Pro t or loss attributable to the equity holders of the parent company	1,104	641
Weighted average number of shares outstanding during the period	561	561
Earnings per share (EUR per share)	1.97	1.14

10 Financial Assets and Liabilities

Financial assets and liabilities have been categorised in accordance with IAS 39.9. In the table are also included interest income and expenses, realised and unrealised gains and losses recognised in P/L, impairment losses and dividend income arising from those assets and liabilities. Th nancial assets in the table include balance sheet items Financial assets, Investments related to unit-linked contracts and Cash and cash equivalents.

			2010
EURm	Carrying amount	Interest inc./ exp.	Gains/ losses	Impairment	Dividend

Financial assets
Financial assets at fair value through p/l
Derivativ nancial instruments	157	74	-27	-	-
Financial assets designated as at fair value through p/l	3,280	34	311	-	3
Loans and receivables	626	17	20	-	-
Financial assets available-for-sale	17,097	509	267	-29	72
Financial assets, group total	21,161	634	571	-29	75
Financial liabilities
Financial liabilities at fair value through p/l
Derivativ nancial instruments	111	-	-
Othe nancial liabilities	2,077	-106	-25
Financial liabilities, group total	2,187	-106	-25

			2009
EURm	Carrying amount	Interest inc./ exp.	Gains/ losses	Impairment	Dividend
Financial assets
Financial assets at fair value through p/l
Derivativ nancial instruments	162	46	74	-	-
Financial assets designated as at fair value through p/l	2,579	25	377	-	1
Investments held-to-maturity	-	0	-	-	-
Loans and receivables	801	18	7	-	-
Financial assets available-for-sale	15,075	569	178	-227	122
Financial assets, group total	18,616	658	637	-227	123
Financial liabilities
Financial liabilities at fair value through p/l
Derivativ nancial instruments	127	-
Othe nancial liabilities	1,971	-87
Financial liabilities, group total	2,098	-87

11 Property, Plant and Equipment

P&C insurance

	2010	2009
EURm	Equipment	Equipment
At 1 Jan.
Cost	134	126
Accumulated depreciation	-111	-100
Net carrying amount	23	27
Opening net carrying amount	23	27
Additions	6	8
Disposals	-1	-1
Depreciation	-11	-11
Exchange di erences	1	1
Closing net carrying amount	19	23
At 31 Dec.
Cost	140	134
Accumulated depreciation	-122	-111
Net carrying amount	19	23

Life insurance

		2010			2009
EURm	Land and buildings	Equipment	Total	Land and buildings	Equipment	Total
At 1 Jan.
Cost	4	6	10	4	6	10
Accumulated depreciation	0	-5	-5	0	-4	-5
Net carrying amount	4	1	5	4	1	5

Opening net carrying amount	4	1	5	4	1	5
Additions	-	1	1	-	0	0
Depreciation	0	0	0	0	0	0
Closing net carrying amount	4	2	5	4	1	5
At 31 Dec.
Cost	4	7	11	4	6	10
Accumulated depreciation	0	-5	-5	0	-5	-5
Net carrying amount	4	2	5	4	1	5

Holding

EURm At 1 Jan. Cost Accumulated depreciation Net carrying amount Opening net carrying
	Land and buildings	Equipment	Total	Land and buildings	Equipment	Total

	2	5	7	2	5	7
	-1	-1	-2	-1	-1	-2
	1	4	5	1	4	5
amount	1	4	5	1	4	5
Additions	0	0	0	-	0	0
Depreciation	0	-1	-1	0	0	0
Closing net carrying amount	1	4	5	1	4	5
At 31 Dec.
Cost	2	5	7	2	5	7
Accumulated depreciation	-1	-1	-2	-1	-1	-2
Net carrying amount	1	4	5	1	4	5
EURm					2010	2009
Group, total					29	34

Equipment in di erent segments comprise IT equipment and furniture.

12 Investment Property

P&C insurance

EURm	2010	2009
At 1 Jan.
Cost	34	33
Accumulated depreciation	-5	-5
Accumulated impairment losses	-1	-1
Net carrying amount	28	28
Opening net carrying amount	28	28
Additions	0	0
Disposals	0	0
Depreciation	-1	-1
Impairment losses	-2	0
Reversal of impairment losses	0	0
Exchange di erences	0	0
Closing net carrying amount	26	28
At 31 Dec.
Cost	34	34
Accumulated depreciation	-6	-5
Accumulated impairment losses	-2	-1
Net carrying amount	26	28
Rental income from investment property	3	3
Property rented out under operating lease
Non-cancellable minimum rental
- not later than one year	1	1
- later than one year and not later tha ve years	1	0
- later tha ve years	-	0
Total	2	1

Expenses arising from investment property
- direct operating expenses arising from investment property generating rental income during the period	-2	-2
- direct operating expenses arising from investment property not generating rental income during the period	-1	-1
Total	-3	-3
Fair value of investment property at 31 Dec.	24	24

Life insurance

EURm	2010	2009
At 1 Jan.
Cost	139	154
Accumulated depreciation	-37	-38
Accumulated impairment losses	-16	-16
Net carrying amount	87	100
Opening net carrying amount	87	100
Additions	13	1
Disposals	-1	-11
Depreciation	-3	-3
Impairment losses	0	0
Closing net carrying amount	96	87
At 31 Dec.
Cost	152	139
Accumulated depreciation	-39	-37
Accumulated impairment losses	-16	-16
Net carrying amount	96	87
Rental income from investment property	15	16
Property rented out under operating lease
Non-cancellable minimum rental
- not later than one year	8	5
- later than one year and not later tha ve years	9	7
- later tha ve years	7	7
Total	24	19

Total rental recognised as income during the nancial period	0	0

Expenses arising from investment property
- direct operating expenses arising from investment property generating rental income during the period	-7	-7
- direct operating expenses arising from investment property not generating rental income during the
period	-1	0
Total	-8	-7
Fair value of investment property at 31 Dec.	111	100

Holding

EURm	2010	2009
At 1 Jan.
Cost	27	27
Accumulated depreciation	0	0
Accumulated impairment losses	-17	-17
Net carrying amount	10	10
Opening net carrying amount	10	10
Disposals	-6	-
Depreciation	0	0
Closing net carrying amount	4	10
At 31 Dec.
Cost	4	27
Accumulated depreciation	0	0
Accumulated impairment losses	0	-17
Net carrying amount	4	10
Rental income from investment property	0	2

Fair value of investment property at 31 Dec.	7	14
Elimination items	-4	-
Group, total	122	124

Fair values for the Group's investment property are entirely determined by the Group based on the market evidence.

The premises in investment property for different segments are leased on market-based, irrevocable contracts. The lengths of the contracts vary from those for the time being to those for several years.

13 Intangible Assets

P&C insurance

		2010
EURm	Goodwill	Customer relations	Other intangible assets	Total
At 1 Jan.
Cost	506	47	107	660
Accumulated amortisation	-	-41	-99	-140
Net carrying amount	506	6	8	521
Opening net carrying amount	506	6	8	521
Exchange di erences	71	0	0	72
Additions
Acquired separately	-	-	6	6
Disposals	-13	-	-	-13
Amortisation	-	-7	-1	-8
Closing net carrying amount	564	0	13	577
At 31 Dec.
Cost	564	47	113	725
Accumulated amortisation	-	-47	-100	-148
Net carrying amount	564	0	13	577

		2009
EURm	Goodwill	Customer relations	Other intangible assets	Total
At 1 Jan.
Cost	479	47	101	627
Accumulated amortisation	-	-34	-98	-132
Net carrying amount	479	13	3	495

Opening net carrying amount	479	13	3	495

Exchange differences	27	1	0	28
Additions
Acquired separately	-	-	5	5
Disposals	-	-	0	0
Amortisation	-	-7	-1	-8
Closing net carrying amount	506	6	8	520

At 31 Dec.
Cost	506	47	107	660
Accumulated amortisation	-	-41	-99	-140

The intangible asset allocated to customer relations arose from the acquisition of If in 2004, as a part of the acquisition cost allocated to the insurance contracts of the If Group. The item was amortised on a straight-line basis in 6 years.

Life insurance

	Other
Goodwill	intangible assets	Total	Goodwill	Other intangible assets	Total

153	34	188	153	32	185
-	-20	-20	-	-18	-18
153	14	167	153	14	167
153	14	167	153	14	167
-	2	2	-	3	3
-	-4	-4	-	-3	-3

Closing net carrying amount	153	12	165	153	14	167
At 31 Dec.
Cost	153	36	190	153	34	188
Accumulated amortisation	-	-25	-25	-	-20	-20
Net carrying amount	153	12	165	153	14	167

Holding

	2010	2009
EURm	Other intangible assets	Other intangible assets
At 1 Jan.
Cost	30	30
Accumulated amortisation	-20	-20
Accumulated impairment losses	-9	-9
Net carrying amount	0	0
Opening net carrying amount	0	0
Amortisation	0	0
Closing net carrying amount	0	0
At 31 Dec.
Cost	6	30
Accumulated amortisation	-5	-20
Accumulated impairment losses	0	-9
Net carrying amount	1	0
	2010	2009
Group, total	743	688

Other intangible assets in all segments comprise mainly IT software.

Depreciation and impairment losses are included in the income statement item Other operating expenses.

Testing goodwill for impairment

Goodwill is tested for impairment in accordance with IAS 36 Impairment of assets. No impairment losses have been recognised based on these tests.

For the purpose of testing goodwill for impairment, Sampo determines the recoverable amount of its cashgenerating units, to which goodwill has been allocated, on the basis of value in use. Sampo has defined these cashgenerating units as If Group and Mandatum Life.

The recoverable amounts for If have been determined by using a discounted cash flow model. The model is based on Sampo's management's best estimates of both historical evidence and economic conditions such as volumes, margins, income and cost development. The value in use model for Mandatum Life has been fundamentally based on the embedded value model where the cash flow estimates for existing policies are based on budgets approved by the management and on historical evidence in terms of policy surrendering, death and accident frequencies etc. The derived cash flows for If were discounted at the pre-tax rates of 11.2 per cent. For Mandatum Life, the weighted average cost of capital of 10.4 per cent has been used for the discounting.

Forecasts for If, approved by the management, cover years 2011 – 2013. The cash flows beyond that have been extrapolated using a 2 % growth rate. A 2 % growth rate for years beyond 2010 has been used for the markets where Mandatum Life operates.

Management believes that any reasonably possible change in any of these key assumptions would not cause the aggregate carrying amount to exceed the aggregate recoverable amount.

14 Investments in Associates

Associates that have been accounted for by the equity method at 31 Dec. 2010

EURm Name	Carrying amount	Fair value*)	Interest held %	Assets/ liabilities	Revenue	Pro t/ loss
Nordea Bank Abp	5,688	6,776	20.54	580 689 / 556 151	9,334	2,663
Autovahinkokeskus Oy	3		35,54	8 / 1	7	1

Associates not accounted for by the equity method at 31 Dec. 2010 )**

EURm Name	Assets/ liabilities	Revenue	Pro t/ loss
Consulting AB Lennemark & Andersson	10 / 6	13	1
Urzus Group AS	1 / 1	3	0
Besure Forsikring Skandinavia AS	-	-	-

Associates that have been accounted for by the equity method at 31 Dec. 2009

EURm Name	Carrying amount	Fair value*)	Interest held %	Assets/ liabilities	Revenue	Pro t/ loss
Nordea Bank Abp	5,168	5,756	20,05	507 544/ 485 124	9,073	2,318
Autovahinkokeskus Oy	2		35,54	7 / 1	7	1

Associates not accounted for by the equity method at 31 Dec. 2009 )**

EURm Name	Assets/ liabilities	Revenue	Pro t/ loss
Consulting AB Lennemark & Andersson	9 / 6	11	1
Euro-Center Holding A/S	6 / 4	9	1

*) Published price quatation

**) Excluded from accounting for by the equity method because of their immaterial e ect on consolidate gures.

Changes in investments in associates

EURm	2010	2009
At beginning of year	5,172	5
Share of loss/pro t	522	0
Additions	238	5,168
Disposals	-233	-2
Exchange di erences	1	0
At end of year	5,699	5,172

At 31 Dec. 2010, the carrying amount of investments in associates included goodwill EURm 909 (866), including goodwill from the Nordea acquisition EURm 905 (866). The share of loss/pro t for 2009 does not include Nordea, as it was consolidated as an associate only at 31 Dec. 2009.

Sampo's holding in Nordea

Nordea is an universal bank with positions within corporate merchant banking as well as retail banking and private banking. With approximately 1,400 branches, call centers in all Nordic countries and an e-bank, Nordea also has a large distribution network for customers in the Nordic and Baltic sea region, including more than 260 branches i ve new European markets, Russia, Poland, Lithuania, Latvia and Estonia.

Nordea wa rst conslidated as an associate company from 31 Dec. 2009 with Sampo's holding of 20.05 %. During th nancial year, Sampo's holding rose to 20.54 %. Due to the additional acquisition, the goodwill increased to EURm 905.

Sampo´s share of Nordea's loss/pro t consists of the following as of 31 Dec. 2010:

EURm	2010
Share of loss/pro t of the associate	547
Amortisation of the customer relations	-33
Change in deferred tax	9
Share of the loss/pro t of an associate	523

15 Financial Assets

Group's nancial assets comprise investments in derivatives, nancial assets designated as at fair value through p/l, loans and receivables, available-for-sale nancial assets and investments in subsidiaries. The Holding segment includes also investments in subsidiaries.

The Group uses derivative instruments for trading and for hedging purposes. The derivatives used are foreign exchange, interest rate and equity derivatives. In P&C insurance business, fair value hedging has been applied during th nancial year. In Life insurance, both fair value and cas ow hedging have been applied.

P&C insurance

EURm	2010	2009
Derivativ nancial instruments	63	84
Financial assets designated as at fair value through p/l	90	163
Loans and receivables	73	3
Financial assets available for-sale	10,999	9,998
P&C insurance, total	11,226	10,248

Life insurance

EURm	2010	2009
Derivativ nancial instruments	58	66
Financial assets designated as at fair value through p/l	61	50
Loans and receivables	26	26
Financial assets available for-sale	5,598	5,074
Life insurance, total	5,745	5,216

Holding

EURm	2010	2009
Derivativ nancial instruments	36	12
Loans and receivables	1	1

Financial assets available for-sale	695	172
Investments in subsidiaries	2,370	2,370
Holding, total	3,101	2,554
Elimination items between segments	-2,563	-2,538
Group, total	17,508	15,479

P&C Insurance

Derivative financial instruments

		2010			2009
		Fair value			Fair value
EURm	Contract/ notional amount	Assets	Liabilities	Contract/ notional amount	Assets	Liabilities
Derivatives held for trading
Interest rate derivatives
OTC derivatives
Intrerest rate swaps	162	5	-	435	18	0
Exchange traded derivatives
Interest rate futures	809	3	0	308	4	0
Interest rate options, bought and sold				106	0	0
Total interest rate derivatives	970	8	0	849	22	0
Foreign exchange derivatives
OTC derivatives
Currency forwards	3,963	54	75	3,335	62	88
Currency options, bought and sold	-	-	-	30	0	0
Total foreign exchange derivatives	3,963	54	75	3,365	62	88

Equity derivatives
OTC derivatives
Equity and equity index options	2	1	-	1	0	0

Total derivatives held for trading	4,935	63	75	4,215	84	88
Derivatives held for hedging
Fair value hedges
Currency forwards	189	0	0	217	-	0
Total derivatives	5,124	63	75	4,432	84	89

Other financial assets

EURm	2010	2009
Financial assets designated as at fair value through p/l
Debt securities
Issued by public bodies	70	66
Government bonds	69	65
Other	1	1
Certificates of deposit issued by banks	3	25
Other debt securities	17	45
Total debt securities	90	136
Listed debt securities EURm 90 (134).
Equity securities
Listed	0	25
Unlisted	-	0
Total	0	25
Total financial assets designated as at fair value through p/l	90	161

Loans and receivables
Deposits with ceding undertakings	0	1
Other	73	2
Total loans and receivables	73	3
Financial assets available for-sale
Debt securities
Issued by public bodies	427	1,566
Government bonds	346	1,493
Other	81	73
Certi cates of deposit issued by banks	1,859	1,931
Other debt securities	6,939	5,300
Total debt securities	9,226	8,797
Listed debt securities EURm 8,247 (8,311).
Equity securities
Listed	1,637	1,166
Unlisted	137	36
Total	1,774	1,202
Tota nancial assets available-for-sale	10,999	10,000

Financial assets available-for-sale for P&C insurance include impairment losses EURm 179 (170).

P&C Insurance, tota nancial assets 11,226 10,248

Life insurance

Derivativ nancial instruments

	2010
	Fair value		Fair value
	Contract/		Contract/ notional
EURm	notional amount Assets	Liabilities	amount	Assets	Liabilities

Derivatives held for trading
Interest rate derivatives
OTC derivatives
Interest rate swaps	760	28	-	766	41	-
Credit risk swaps	117	0	0	-	-	-
Total	877	28	0	766	41	-
Exchange traded derivatives
Interest futures	100	-	1	340	7	-
Interest options, bought and sold	300	1	1	300	4	3
Total	400	1	3	640	10	3
Total interest rate derivatives	1,277	30	3	1,406	51	3
Foreign exchange derivatives
OTC derivatives
Currency forwards	1,754	24	8	724	3	18
Currency options, bought and sold	120	1	1	128	1	1
Total foreign exchange derivatives	1,874	25	9	852	4	19
Commodity derivatives
OTC derivatives
Commodity swaps	-	-	-	14	-	0
Total derivatives held for trading	3,151	54	12	2,272	54	22
Derivatives held for hedging
Fair value hedges
Currency forwards	461	-	14	227	-	10
Interest rate swaps	33	1	-	-	-	-
Total	494	1	14	227	0	10

Cash flow hedges
Interest rate swaps	88	3	-	365	12	-

Total derivatives held for hedging	582	4	14	591	12	10
Total derivatives	3,733	58	26	2,863	66	32

Fair value hedges

Fair value hedging is used to hedge a proportion of foreign exchange and interest risk in available-for-sale financial assets. The interest elements of forward contracts have been excluded from hedging relationships in foreign exchange hedges, as well as the share of credit risk in interest risk hedges.

Net gains from exchange derivatives designated as fair value hedges amounted to EURm 4 (-9). Net losses from hedged risks in fair value hedges of available for sale financial assets amounted to EURm 3 (9).

Net gains from interest rate swaps designated as fair value hedges amounted to EURm 1 (-) milj. euroa. Net losses from hedged risks in fair value hedges of available for sale financial assets amounted to EURm -1 (-).

Cash flow hedges

Cash flow hedges have been used to hedge future interest payments resulting from floating rate interest-bearing assets. The hedged items designated are interest payments from EUR denominated bonds.The effectiveness of the hedging relationships is assessed prospectively using the critical terms match method. An effectiveness test is carried out retrospectively using the hypothetical swap method.

At 31 Dec. 2010 he total amount of gains recognised in equity from the changes in the fair values of hedging instruments was EURm 12 (15). These gains are recognised in the income statement at the time when the hedged items affect profit or loss. The table below the periods when the cash flows are expected to occur and when they are expected to affect profit or loss.

EURm	Total	Up to 1 year	1 - 2 years	2 - 3 years
From hedging instruments
Receivable cash flows (forecast)	6	3	2	0
Payable cash flows (forecast)	-2	-1	-1	0
Net	4	2	1	0

Most of the cash flows are forecast to occur during the first two years.

Othe nancial assets

EURm	2010	2009
Financial assets designated as at fair value through p/l
Debt securities
Issued by public bodies	19	9
Government bonds	19	9
Other	0	0
Certi cates of deposit issued by banks	24	21
Other debt securities	18	15
Total debt securities	61	46
Listed debt securities EURm 20 (7).
Equity securities
Listed	0	1
Unlisted	-	3
Total	0	4
Tota nancial assets designated as at fair value through p/l	61	50
Loans and receivables
Deposits with ceding undertakings	1	2
Loans	25	24
Total loans and receivables	26	26
Financial assets available for-sale
Debt securities
Issued by public bodies	107	34
Government bonds	107	34
Other
Issued by banks	1,480	1,736
Other debt securities	1,655	1,520
Total debt securities	3,242	3,289

Listed debt securities EURm 3,155 (3,249).

Equity securities
Listed	1,738	1,360
Unlisted	619	425
Total	2,357	1,785
Tota nancial assets available-for-sale	5,598	5,074

Financial assets available-for-sale for life insurance include impairment losses EURm 131 (183).

Life insurance, tota nancial assets	5,745	5,216

Financial assets available for sale / debt securities: Debt securities available for sale include EURm 2,709 (2,500) investments in bonds and EURm 533 (789) investments in money market instruments.

Financial assets available for sale /shares and participations: Listed equity securities include EURm 674 (554) quoted shares. Unlisted equity securities include EURm 551 (359) investments in capital trusts.

Holding

Derivativ nancial instruments

		2010 2009
		Fair value			Fair value
EURm	Contract/ notional amount	Assets	Liabilities	Contract/ notional amount	Assets	Liabilities
Derivatives held for trading
Interest derivatives
OTC-derivatives
Interest rate swaps	1,075	29	-	975	7	-
Equity derivatives
Exchange traded derivatives
Equity options	95	7	10	42	4	7

Exchange derivatives
OTC-derivatives
Currency forwards	-	-	-	48	1	0

Total derivatives	1,170	36	10	1,065	12	7
Othe nancial assets
EURm					2010	2009
Loans and receivables
Deposits					1	1
Financial assets available for-sale
Debt securities
Certi cates of deposit issued by banks					509	11
Other debt securities					151	125
Total debt securities					659	135
Listed debt securities EURm 553 (32).
Equity securities
Listed					-	0
Unlisted					36	36
Total					36	36
Tota nancial assets available-for-sale					695	172
Financial assets available-for-sale for Holding business include impairment losses EURm 2 (2).
Investments in subsidiaries					2,370	2,370

Holding, tota nancial assets					3,101	2,554
Elimination items between segments					-2,563	-2,538
Group, total					17,508	15,479

16 Fair Values

	2010		2009
EURm	Fair value	Carrying amount	Fair value	Carrying amount
Financial assets, Group
Financial assets	17,508	17,508	15,479	15,479
Investments related to unit-linked contracts	3,127	3,127	2,366	2,366
Other assets	23	23	57	57
Cash and cash equivalents	515	527	771	771
Total	21,173	21,184	18,674	18,674
Financial liablities, Group
Financial liabilities	2,214	2,187	2,107	2,098
Other liabilities	67	67	7	7
Total	2,281	2,254	2,114	2,105

In the table above are presented fair values and carrying amounts o nancial assets and liabilities. The detailed measurement bases o nancial assets and liabilities are disclosed in Group Accounting policies.

The fair value of investment securities is assessed using quoted prices in active markets. If published price quotations are not available, the fair value is assessed using discounting method. Values for the discount rates are taken from the market's yield curve.

The fair value of the derivative instruments is assessed using quoted market prices in active markets, discounting method or option pricing models.

The fair value of loans and othe nancial instruments which have no quoted price in active markets is based on discounted cas ows, using quoted market rates. The market's yield curve is adjusted by other components of the instrument, e.g. by credit risk.

The fair value for short-term non-interest-bearing receivables and payables is their carrying amount.

Disclosed fair values are "clean" fair values, i.e. less interest accruals.

17 Determination and Hierarchy of Fair Values

A large majority of Sampo Group' nancial assets are valued at fair value. The valuation is based on either published price quatations or valuation techniques based on market observable inputs, where available. For a limited amount of assets the value needs to be determined using other techniques.

Th nancial instruments measured at fair value have been classi ed into three hierarchy levels in the notes, depending on e.g. if the market for the instrument is active, or if the inputs used in the valuation technique are observable.

On level 1, the measurement of the instrument is based on quoted prices in active markets for identical assets or liabilities.

On level 2, inputs for the measurement of the instrument include also other than quoted prices observable for the asset or liability, either directly or indirectly by using valuation techniques.

In level 3, the measurement is based on other inputs rather than observable market data.

EURm	Level 1	Level 2	Level 3	Total
Financial assets 31.12.2010
Derivativ nancial instruments
Interest rate swaps	-	66	-	66
Other interest rate derivatives	4	1	-	5
Foreign exchange derivatives	-	79	-	79
Equity derivatives	-	8	-	8
	4	153	-	158
Financial assets designated at fair value through pro t or loss
Equity securities	0	-	-	0
Debt securities	78	56	18	151
	78	56	18	151
Financial assets related to unit linked insurance
Equity securities	152	6	0	159
Debt securities	31	519	0	551
Derivativ nancial instruments	0	14	-	14
Mutual funds	1,602	612	57	2,271
	1,785	1,151	58	2,994

Financial assets available-for-sale
Equity securities	1,837	-	77	1,914
Debt securities	602	12,220	86	12,908
Mutual funds	1,252	259	767	2,278
	3,691	12,479	930	17,099
Tota nancial assests measured at fair value	5,557	13,839	1,005	20,402
Financial liabilities 31.12.2010
Derivativ nancial instruments
Interest rate derivatives	-3	0	-	-3
Foreign exchange derivatives	-	-23	-	-23
Equity derivatives	-	-75	-	-75
Other derivatives	-	-10	-	-10
Tota nancial liabilities measured at fair value	-3	-108	-	-111

EURm	Level 1	Level 2	Level 3	Total
Financial assets 31.12.2009
Derivativ nancial instruments
Interest rate swaps	0	77	-	77

	3	158	-	161
Equity derivatives	-	4	-	4
Foreign exchange derivatives	-	67	-	67
Other interest rate derivatives	3	11	-	14
Interest rate swaps	0	77	-	77

Financial assets designated at fair value through pro t or loss
Equity securities		1	4	-	5
Debt securities		63	102	16	182
Mutual funds		-	23	1	24
		64	130	17	211
Financial assets related to unit linked insurance
Equity securities		27	101	-	128
Debt securities		16	349	1	365
Derivativ nancial instruments		-	8	-	8
Mutual funds	*)	1,532	231	54	1,817
		1,576	688	54	2,318
Financial assets available-for-sale
Equity securities		1,313	0	74	1,387
Debt securities		1,522	10,437	93	12,053
Mutual funds	*)	875	261	501	1,637
		3,710	10,698	668	15,077
Tota nancial assests measured at fair value		5,353	11,675	740	17,768

*) Mutual funds di er from those disclosed in the Annual Report 2009 due to the de ned classi cations.

Financial liabilities 31.12.2009
Derivativ nancial instruments
Interest rate derivatives	-	3	-	3
Foreign exchange derivatives	-	117	-	117
Equity derivatives	-	7	-	7
Other derivatives	-	0	-	0
Tota nancial liabilities measured at fair value	-	127	-	127

Sensitivity analysis of fair values

The sensitivity o nancial assets and liabilites to changes in exchange rates is assessed on business area level due to di erenct base currencies. In P&C insurance, 10 percentage point depreciation of all other currencies against SEK would have resulted in an e ect reognised in pro t/loss of EURm 14 and in an e ect recognised directly in equity of EURm -10. In Life insurance, 10 percentage point depreciation of all other currencies against EUR would have resulted in an e ect recognised in pro t/loss of EURm -12 and in an e ect recognised directly in equity of EURm -72. In holding, 10 percentage point depreciation of all other currencies against EUR would have resulted in an e ect recognised in pro t/loss of EURm -2 and in an e ect recognised idredctly in equity of EURm -2.

The sensitivity analysis of the Group's fair values o nancial assets and liabilities in di erenct market risk scenarios is presented below. The e ects represent the instantaneous e ects of a one-o hange in the underlying market variable on the fair values on 31 Dec. 2010.

The sensitivity analysis includes the e ects of derivative positions. All sensitivities are calculated before taxes. The debt issued by is not included.Sampo plc

	Interest rate		Equity	Othe nancial investments
	1 % parallel shi own	1 % parallel shi p	20 % fall in prices	20 % fall in prices
E ect recognised in pro t/loss	5	-10	0	-4
E ect recognised directly in equity	281	-266	-671	-146
Total e ect	286	-276	-671	-151

18 Movements in Level 3 Financial Instruments Measured at Fair Value

EURm	At Jan. 2010	Total gains/ losses in income statement	Total gains/ losses recorded in other comprehensive income	Purchases	Sales	Transfers between levels 1 and 2	At 31 Dec. 2010	Gains/losses included in p/l for nancial assets 31 Dec. 2010
Financial assets 2010
Financial assets designated at fair value through pro t or loss
Equity securities							0	-
Debt securities	16	3	-	0	-2	-	18	2
Mutual funds	1	-	-	-	-1	-	0	-
	17	3	-	-	-3	0	18	2
Financial assets related to unit-linked insurance
Equity securities	-	0	-	0	0	-	0	-
Debt securities	1	-1	-	-	-	-	0	2
Mutual funds	54	2	-	26	-24	-	57	-
	54	2	-	26	-24	-	57	2
Financial assets available-for-sale
Equity securities	75	0	0	5	-3	-	77	-1
Debt securities	93	-20	39	51	-81	3	86	-2
Mutual funds	501	6	45	293	-78	-	767	8
	669	-14	84	350	-161	3	930	5

Total financial assests measured at fair value	740	-9	84	376	-189	3 1,005	9
Financial liabilities 2010	-	-	-	-	-	- -	-

		2010
EURm	Realised gains	Fair value gains and losses	Total
Total gains or losses included in profir or loss for the financial year	-24	14	-9
Total gains or losses included in profit and loss for assets held at the end of the
financial year	-4	13	9

EURm	At Jan. 2009	Total gains/ losses in income statement	Total gains/ losses recorded in other comprehensive income	Purchases	Sales	Transfers between levels 1 and 2	At 31 Dec. 2009	Gains/losses included in p/l for financial assets 31 Dec. 2009
Financial assets 2009
Financial assets designated at fair value through profit or loss
Equity securities	1	-	-	-	-1	-	0	-
Debt securities	20	-1	-	-	-	-3	16	0
Mutual funds	-	-	-	-	-	1	1	-
	21	-1	-	-	-1	-2	17	0

Financial assets related to unit-linked insurance
Debt securities	1	0	-	-	-	-	1	0
Mutual funds	55	2	-	12	-16	-	54	2
	56	2	-	12	-16	0	54	2
Financial assets available-for-sale
Equity securities	60	-5	11	7	-5	7	75	-7
Debt securities	24	0	-1	26	-7	52	93	-1
Mutual funds	398	-26	-7	115	-70	90	501	-28
	482	-31	4	148	-83	149	669	-37
Total financial assests measured at fair value	559	-30	4	160	-100	147	740	-34
Financial liabilities 2009	-	-	-	-	-	-	-	-

		2009
EURm	Realised gains	Fair value gains and losses	Total
Total gains or losses included in profir or loss for the financial year	4	-32	-29
Total gains or losses included in profit and loss for assets held at the end of the financial year	-1	-33	-34

19 Sensitivity Analysis of Level 3 Financial Instruments Measured at Fair Value

	2010			2009
EURm	Carrying amount	E ect of reasonably possible alternative assumptions (+ / -)	Carrying amount	E ect of reasonably possible alternative assumptions (+ / -)
Financial assets
Financial assets designated at fair value through pro t or loss
Debt securities	18	0	16	0
Mutual funds	-	-	1	0
Total	18	0	17	0
Financial assets related to unit-linked insurance
Debt securities	0	0	1	0
Mutual funds	57	-11	54	-11
Total	58	-11	54	-11
Financial assets available-for-sale
Equity securities	77	-15	74	-15
Debt securities	86	0	93	-3
Mutual funds	767	-128	501	-90
Total	930	-144	668	-109
Tota nancial assests measured at fair value	1,005	-155	740	-119

The value o nancial assets regarding the debt security instruments has been tested by assuming a rise of 1 per cent unit in interest rate level in all maturities. For othe nancial assets, the prices were assumed to go down by 20 %. The Sampo Group bears no investment risks relat4ed to unit-linked insurance, so a change in assumptions regarding these assets does not a ect pro t or loss. On the basis of the these alternative assumptions, a possible change in interest levels would cause descent of EURm 0 for the debt instruments, and EURm 143 valuation loss for other instruments in the Group's other comprehensive income. The reasonably possible e ect, proportionate to the Group's equity, would thus be 1.6 %.

20 Investments Related to Unit-Linked Insurance Contracts

Life insurance

EURm	2010	2009
Financial assets designated at fair value through p/l
Debt securities
Issued by public bodies	44	27
Government bonds	44	27
Other
Certi cates of deposit issued by banks	137	125
Other debt securities	370	214
Total	551	365
Listed debt securities EURm 412 (365).
Equity securities
- Listed	2,426	1,922
- Unlisted	4	1
Total	2,430	1,923
Tota nancial assets designated at fair value through p/l	131	70
Other	15	8
Investment related to unit-linked contracts, total	3,127	2,366

The historical cost of the equity securities related to unit-linked contracts was EURm 2,096 (1,814) and that of the debt securities EURm 530 (347).

21 Deferred Tax Assets and Liabilities

Changes in deferred tax during th nancial period 2010

		Recognised in comprehensive
		income	Recognised	Exchange
EURm	1.1.	statement	in equity	di erences	31.12.
Deferred tax assets
Tax losses carried forward	5	15	0	0	20
Changes in fair values	1	0	-1	0	0
Employee bene ts	34	1	0	4	38
Other deductible temporary di erences	51	-18	6	-1	37
Total	91	-3	5	2	95
Netting of deferred taxes					-28
Deferred tax assets in the balance sheet					68
Deferred tax liabilities
Depreciation di erences and untaxed reserves	360	-5	0	22	377
Changes in fair values	121	4	125	0	249
Other taxable temporary di erences	29	11	0	1	41
Total	510	10	125	23	667
Netting of deferred taxes					-28
Total deferred tax liabilities in the balance sheet					640

Changes in deferred tax during th nancial period 2009

		Recognised in comprehensive
EURm	1.1.	income statement	Recognised in equity	Exchange di erences	31.12.
Deferred tax assets
Tax losses carried forward	63	-58	0	0	5
Changes in fair values	1	0	0	0	1
Employee bene ts	32	-1	0	3	34
Other deductible temporary di erences	116	6	0	3	125
Total	212	-53	0	6	165
Netting of deferred taxes					-84
Deferred tax assets in the balance sheet					81
Deferred tax liabilities
Depreciation di erences and untaxed reserves	334	6	0	20	360
Changes in fair values	-8	-109	243	-5	121
Other taxable temporary di erences	109	-8	0	1	103
Total	435	-111	243	17	584
Netting of deferred taxes					-84
Total deferred tax liabilities in the balance sheet					500

In P&C insurance, EURm 1 of deferred tax asset has not been recognised on unused tax losses and temporary di erences.

22 Taxes

EURm	2010	2009
Pro t before tax	1,320	825

Tax calculated at parent company's tax rate	-343	-214
Di erent tax rates on overseas earnings	0	1
Income not subject to tax	55	29
Expenses not allowable for tax purposes	-7	-4
Consolidation procedures and eliminations	83	0
Tax losses for which no deferred tax asset has been recognised	-1	-1
Changes in tax rates	-	0
Share of associate's other comprehensive income
Tax from previous years	-3	5
Total	-217	-184

23 Components of Other Comprehensive Income

EURm	2010	2009
Other comprehensive income:
Exchange di erences	214	123
Available-for-sal nancial assets
Gains/losses arising during the year	832	2,918
Reclassi cation adjustments	-227	71
Cas ow hedges
Gains/losses arising during the year	-9	-3
Share of associate's other comprehensive income	48	-
Income tax relating to components of other comprehensive income	-156	-326
Total	703	2,782

24 Tax E ects Relating to Components of Other Comprehensive Income

EURm		2010			2009
	Before-tax amount	Tax	Net-of-tax amount	Before-tax amount	Tax	Net-of-tax amount
Exchange di erences	214	-	214	123	-	123
Available-for-sale nancial assets	605	-158	447	2,989	-327	2,662
Cas ow hedges	-9	2	-6	-3	1	-2
Total	811	-156	655	3,108	-326	2,782

25 Other Assets

P&C insurance

EURm	2010	2009
Interests	140	147
Assets arising from direct insurance operations	939	830
Assets arising from reinsurance operations	42	47
Settlement receivables	2	3
Deferred acquisition costs	139	122
Assets related to Patient Insurance Pool	55	59
Other	46	56
P&C insurance, total	1,363	1,265

Other assets include non-current assets EURm 47 (50).

Item Other comprise rental deposits, salary and travel advancements and assets held for resale.

1) Change in deferred acquisition costs in the period

EURm	2010	2009
At 1 Jan.	122	99
Net change in the period	9	13
Exchange di erences	8	10
At 31 Dec.	139	122

Life insurance

EURm	2010	2009
Interests	60	61
Receivables from policyholders	6	6
Assets arising from reinsurance operations	0	1
Settlement receivables	6	38
Other	34	27
Life insurance, total	106	133

Item Other comprise e.g. receivables from the employees' group life insurance pool, pensions paid in advance and receivables from co-operations companies.

Holding

EURm	2010	2009
Interests	43	53
Other	22	23
Holding, total	66	76
Item Other includes e.g. asset management fee receivables.
Elimination items between segments	-20	-36
Group, total	1,515	1,439

26 Cash and Cash Equivalents

P&C insurance

EURm	2010	2009
Cash at bank and in hand	200	153
Short-term deposits (max 3 months)	119	138
P&C insurance, total	319	292

Life insurance

EURm	2010	2009
Cash at bank and in hand	86	57
Short-term deposits (max 3 months)	66	11
P&C insurance, total	152	68

Holding

EURm	2010	2009
Cash	56	22
Short-term deposits (max 3 months)	0	390
Holding, total	56	412

Group, total	527	771

27 Liabilities from Insurance and Investment Contracts

P&C insurance

Change in insurance liabilities

		2010
EURm	Gross	Ceded	Net	Gross	Ceded	Net
Provision for unearned premiums
At 1 Jan.	1,668	49	1,619	1,521	54	1,467
Exchange di erences	83	2	85	119	0	119
Change in provision	94	2	96	28	-5	33
At 31 Dec.	1,845	53	1,792	1,668	49	1,619

		2010
EURm	Gross	Ceded	Net	Gross	Ceded	Net
Provision for claims outstanding
At 1 Jan.	6,915	428	6,486	6,367	377	5,990
Unwinding of discount	61	-	61	-	-	-
Insurance holdings sold	-	-	-	-14	-	-
Exchange di erences	457	38	418	386	33	353
Change in provision	62	-9	71	176	18	158
At 31 Dec.	7,494	457	7,037	6,915	428	6,486

Liabilities from insurance contracts

EURm	2010	2009
Provision for unearned premiums	1,845	1,668
Provision for claims outstanding	7,495	6,915
Incurred and reported losses	2,026	1,854
Incurred but not reported losses (IBNR)	3,555	3,284
Provisions for claims-adjustment costs	271	241
Provisions for annuities and sickness bene ts	1,643	1,535
P&C insurance total	9,340	8,583

Reinsurers' share
Provision for unearned premiums	53	49
Provision for claims outstanding	457	428
Incurred and reported losses	303	268
Incurred but not reported losses (IBNR)	154	160
Total reinsurers' share	510	477

As the P&C Insurance is exposed to various exchange rates, comparing the balance sheet data from year to year can be misleading. The strengthening of the Swedish krone had a signi cant e ect on the technical provisions for own account. The exchange e ect on SEK-nominated technical provisions for own account amounted to net decrease of EURm 535 during th nancial year.

Claims cost trend of P&C Insurance

The tables below show the cost trend for the claims for di erent years. The upper part of the tables shows how an estimate of the total claims costs per claims year evolves annually. The lower section shows how large a share of this is presented in the balance sheet.

More information on P&C Insurance's insurance liabilities in the Risk Management section of the Annual accounts.

Claims costs before reinsurance

Estimated claims cost

EURm	< 2002	2003	2004	2005	2006	2007	2008	2009	2010
At the close of the claims year	5,027	2,572	2,515	2,677	2,691	2,756	2,908	2,916	3,036
One year later	5,253	2,531	2,479	2,620	2,675	2,753	2,861	2,865
Two years later	5,349	2,450	2,415	2,566	2,646	2,717	2,800
Three years later	5,429	2,441	2,409	2,538	2,643	2,684
Four years later	5,523	2,421	2,393	2,504	2,601
Five years later	5,563	2,403	2,365	2,468
Six years later	5,563	2,390	2,324
Seven years later	5,650	2,402
Eight years later	5,723
Current estimate of total claims costs	5,723	2,402	2,324	2,468	2,601	2,684	2,800	2,865	3,036

Total disbursed	3,261	2,093	1,971	2,068	2,164	2,186	2,207	2,118	1,616

Provision reported in the balance
sheet	2,462	309	353	401	437	497	593	746	1,420	7,219
of which established vested
annuities	1,223	66	52	65	67	67	58	36	9	1,643
Other provision										5
Provision for claims-adjustment
costs										271
Total provision reported in the BS										7,494

Claims costs after reinsurance

Estimated claims cost

EURm	< 2002	2003	2004	2005	2006	2007	2008	2009	2010
At the close of the claims year	4,418	2,451	2,443	2,530	2,581	2,656	2,784	2,796	2,884
One year later	4,633	2,401	2,406	2,467	2,555	2,646	2,751	2,762
Two years later	4,735	2,326	2,344	2,412	2,525	2,619	2,694
Three years later	4,795	2,316	2,337	2,391	2,528	2,586
Four years later	4,873	2,296	2,323	2,359	2,490
Five years later	4,905	2,278	2,296	2,324
Six years later	4,903	2,266	2,254
Seven years later	4,939	2,279
Eight years later	5,030
Current estimate of total claims costs	5,030	2,279	2,254	2,324	2,490	2,586	2,694	2,762	2,884
Total disbursed	2,670	1,994	1,920	1,960	2,075	2,114	2,138	2,072	1,597

Provision reported in the balance
sheet	2,360	284	334	364	415	472	555	690	1,287	6,761

of which established vested
annuities	1,223	66	52	65	67	67	58	36	9	420
Other provision										5
Provision for claims-adjustment costs										271
Total provision reported in the BS										7,037

Life insurance

Change in liabilities arising from other than unit-linked insurance and investment contracts

EURm	Insurance contracts	Investment contracts	Total
At 1 Jan. 2010	4,374	57	4,431
Premiums	273	1	274
Claims paid	-401	-37	-438
Expense charge	-37	0	-37
Guaranteed interest	158	1	159
Bonuses	1	0	1
Other	20	0	20
At 31 Dec. 2010	4,388	22	4,410
Reinsurers' share	-4		-4
Net liability at 31 Dec. 2010	4,385	22	4,406

EURm	Insurance contracts	Investment contracts	Total
At 1 Jan. 2009	4,423	63	4,487
Premiums	238	20	258
Claims paid	-385	-27	-411

Expense charge	-39	0	-39
Guaranteed interest	157	2	159
Bonuses	18	0	18
Other	-38	-1	-40
At 31 Dec. 2009	4,374	57	4,431
Reinsurers' share	-4	0	-4
Net liability at 31
Dec. 2009	4,370	57	4,427

Change in liabilities arising from unit-linked insurance and investment contracts

EURm	Insurance contracts	Investment contracts	Total
At 1 Jan. 2010	1,961	398	2,359
Premiums	376	467	843
Claims paid	-163	-181	-344
Expense charge	-30	-9	-38
Other	236	68	304
At 31 Dec. 2010	2,381	743	3,124

At 1 Jan. 2009	1,538	99	1,637
Premiums	273	279	551
Claims paid	-126	-27	-153
Expense charge	-25	-2	-26
Other	302	49	351
At 31 Dec. 2009	1,961	398	2,359

The liabilities at 1 Jan. and at 31 Dec. include the future bonus reserves and the effect of the reserve for the decreased discount rate. The calculation is based on items before reinsurers' share. A more detailed specification of changes in insurance liabilities is presented in Group's Risk Management.

EURm	2010	2009
Insurance contracts
Liabilities for contracts with discretionary participation feature (DPF)
Provision for unearned premiums	2,465	2,513
Provision for claims outstanding	1,907	1,844
Liabilities for contracts without discretionary participation feature (DPF)

Provision for unearned premiums	14	13
Provision for claims outstanding	0	0
Total	4,386	4,371
Assumed reinsurance
Provision for unearned premiums	1	1
Provision for claims outstanding	2	2
Total	3	3
Insurance contracts total
Provision for unearned premiums	2,479	2,528
Provision for claims outstanding	1,909	1,846
Total	4,388	4,374
Investment contracts
Liabilities for contracts with discretionary participation feature (DPF)
Provision for unearned premiums	22	57
Liabilities for insurance and investment contracts total
Provision for unearned premiums	2,501	2,585
Provision for claims outstanding	1,909	1,846
Life insurance total	4,410	4,431
Reinsurers' share
Provision for unearned premiums	0	0
Provision for claims outstanding	-4	-4
Total	-4	-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-o or an investment contract with DPF. These investment contracts have been valued like insurance contracts.

Group, total 13,750 13,014

28 Liabilities From Unit-linked Insurance and Investment Contracts

Life insurance

EURm	2010	2009
Unit-linked insurance contracts	2,381	1,961
Unit-linked investment contracts	743	398
Total	3,124	2,359

29 Financial Liabilities

Financial liabilities in the segments include liabilities from derivatives, debt securities in issue and other nancial liabilities.

P&C insurance

EURm	2010	2009
Derivativ nancial instruments (note 15)	75	89
Subordinated debt
securities
Subordinated loans
Euro-denominated loans
Preferred capital note, 2001	217	216
Preferred capital note, 2002	71	70
Preferred capital note, 2005	149	149
Total subordinated debt securities	437	435
P&C insurance, total nancial liabilities	512	524

If P&C Insurance Ltd issued in 2001 EURm 200 preferred capital note. The loan pay xed interest rate for th rst ten years an oating rate interest a er that. The loan falls due at the latest March 2021. The loan is listed on the Luxembourg Exchange.

If P&C Insurance Company Ltd issued in 2002 EURm 65 preferred capital note. The loan was wholly subscribed by If Group's owners of that moment. The loan has a maturity of 20 years. It pay xed interest rate for th rst 10 years and the last 10 year oating rate interest. The loan is not listed.

If P&C Insurance issued in June 2005 EURm 150 preferred capital note. The loan is perpetual and pay xed interest rate for th rst ten years. The loan is listed on the Luxembourg Exchange.

Life insurance

EURm	2010	2009
Derivativ nancial instruments (note 15)	26	32
Subordinated debt securities
Subordinated loans	100	100
Life insurance, total	126	132

Mandatum Life issued in 2002 EURm 100 Capital Notes. The loan is perpetual and pay oating rate interest. The interest is payable only from distributable capital. The loan is repayable only with the consent of the Insurance Supervisory Authority and at the earliest on 2012 or any interest payment date a er that. The loans is wholly subscribed by Sampo Plc.

Holding

EURm	2010	2009
Derivativ nancial instruments (note 15)	10	7
Debt securities in issue
Commercial papers	575	466
Bonds	1,026	962
Total	1,601	1,429
Subordinated debt securities
Debentures	-	37

Othe nancial liabilities
Pension loans	130	130
Other liabilities	-	6
Total	130	136
Holding, total	1,741	1,609
Elimination items
between segments	-191	-166

Group, total	2,187	2,098

30 Provisions

P&C insurance

EURm	2010
At 1 Jan 2010	35
Exchange rate di erences	3
Additions	11
Amounts used during the period	-12
Unused amounts reversed during the period	-2
At 31 Dec. 2010	36

Current (less than 1 year)	20
Non-current (more than 1 year)	16
Total	36

The development of e cient administrative and claims-adjustment processes and structural changes in distribution channels result in organisational changes that a ect all business areas. The provision consists mainly of assets reserved for future expenses attributable to previously implemented or planned future organisational changes.

31 Employee Bene ts

Employee bene ts

Sampo has de ned bene t plans in P&C insurance business in Sweden and Norway.

In addition to statutory retirement pension insurance, the Group has certain voluntary de ned bene t plans. The voluntary de ned bene t plans are intra-Group and included in the insurance liabilities of Mandatum Life. The amount is negligible and they have no material impact on the Group pro t or loss or equity.

Employee bene t obligations of P&C Insurance 31 Dec.

EURm	2010	2009
Present value of estimated pension obligation	458	424
Fair value of plan assets	326	272
Net obligation/ liability	132	152
Net cumulative unrecognised
actuarial gains/losses	-46	-67
Net pension obligation recognised in the balance sheet	85	85
Provision for social security	20	19
Provision for pensions 31 Dec.	105	104

IAS 19 Employee bene ts is applied in the accounting for the de ned bene t plans from the beginning of the nancial year 2005.

Pension obligations, and the pension cost accrued during th scal period, are calculated using actuarial methods. Earned pension rights are calculated on a straight-line basis during the employment period. The calculation of pension obligations is based on anticipated future pension payments and includes assumptions regarding mortality, employee turnover and salary growth. The nominally calculated liability is discounted to present value using an interest rate based on the current market rate and adjusted to take into account the duration of the company's pension obligation er deducting plan assets, a net asset or liability is entered in the balance sheet. The net obligation reported in the closing balance pertained to de ned-bene t pension plans for employees in Sweden and Norway. The pension bene ts arising in the other countries covered by the Group's operations have been classi ed as de ned contribution plans.

The following actuarial assumptions have been used for the calculation of de ned bene t pension plans in Sweden and Norway:

	Sweden	Sweden	Norway	Norway
	31.12.2010	31.12.2009	31.12.2010	31.12.2009
Discount interest rate	5.00 %	4.00 %	4.00 %	4.50 %
Anticipated return	4.50 %	4.50 %	4.75 %	5.00 %
Future pay increases	3.25 %	3.25 %	3.75 %	4.00 %
Price in ation	2.00 %	2.00 %	2.25 %	2.50 %

The expected rate of return on the plan assets has been calculated based on the following division of investment assets:

Debt instruments	42 %	43 %	65 %	66 %
Equity instruments	39 %	42 %	16 %	9 %
Property	10 %	10 %	16 %	17 %
Other	9 %	5 %	3 %	8 %

Analysis of the employee bene t obligation

		2010		2009
EURm	Funded plans	Unfunded plans	Total	Funded plans	Unfunded plans	Total
Present value of estimated pension obligation	395	63	458	367	56	424
Fair value of plan assets	326	-	326	272	-	272
Net obligation/ liability	69	63	132	95	56	152
Net cumulative unrecognised
actuarial gains/losses	-41	-5	-46	-64	-2	-67
Net pension obligation recognised in the balance sheet	27	58	85	31	54	85

Recognised in Income Statement EURm 2010 2009 Current service cost 14 15 Interest cost 19 17

Expected rate of return on plan assets at the begninning of the year	-14	-13
Actuarial gains (-) or losses (+) recognised during the nancial year	2	5
Losses (+) or gains (-) on curtailments and settlements	0	1
Pension costs	22	26

Analysis of the change in net liability recognised in the balance sheet

EURm	2010	2009
Pension obligations:
At the beginning of the year	424	390
Earned during th nancial year	14	14
Interest cost	19	17
Actuarial gains or losses	-19	-42
Losses or gains on curtailments	0	1

and settlements
Exchange differences on foreign plans	35	32
Benefits paid	-16	11
Defined benefit plans at 31 Dec.	458	424
Reconciliation of plan assets:
At the beginning of the year	272	220
Expected return on assets	15	13
Actuarial gains or losses	2	-7
Contributions	24	23
Exchange differences on foreign plans	23	32
Benefits paid	-11	-9
Plan assets at 31 Dec.	326	272

Other short-term employee benefits

There are other short-term staff incentive schemes in the Group, the terms of which vary according to country, business area or company. Benefits are recognised in the profit or loss for the year they arise from. An estimated amount of these profit-sharing bonuses, social security costs included, for 2010 is EURm 38.

32 Other Liabilities

P&C Insurance

EURm	2010	2009
Liabilities arising out of direct insurance operations	136	104
Liabilities arising out of reinsurance operations	45	47
Settlement liabilities	-	1
Liabilities related to Patient Insurance Pool	54	57
Tax liabilities	140	240
Prepayments and accrued income	178	158
Other	137	113
P&C insurance, total	690	719

The non-current share of other liabilities is EURm 61 (48).

Item Other includes e.g. witholding taxes, social expenses related to Workers Compensation insurance policies and employee bene ts, unpaid premium taxes and other accruals.

Life insurance

EURm	2010	2009
Interests	8	18
Tax liabilities	36	-
Liabilities arising out of direct insurance operations	4	2
Liabilities arising out of reinsurance operations	5	5
Settlement liabilities	67	6
Guarantees received	176	11
Other liabilities	42	91
Life insurance, total	339	134

Item Guarantees received comprise assets accepted as guarantees required in derivative trading and securities lending.

Item Other includes e.g. liabilities arising from withholding taxes and social security costs, liabilities to creditors and insurance premium advances.

Holding

EURm	2010	2009
Interests	47	47
Guarantees for trading in derivatives	36	-
Liability for dividend distribution	26	29
Other	8	19
Holding, total	117	95
Item Other includes e.g. liabilities arising from intra-group management fees and unredeemed dividends.
Elimination items between segments	-22	-36
Group, total	1,124	912

33 Contingent Liabilities and Commitments

P&C insurance

EURm	2010	2009
O -balance sheet items
Guarantees	57	19
Other irrevocable commitments	27	69
Total	84	88

Assets pledged as collateral for liabilities or contingent liabilities

	2010		2009
EURm	Assets pledged	Liabilities/ commitments	Assets pledged	Liabilities/ commitments
Assets pledged as collateral
Cash at balances at central banks	10	8	9	7
Investments
Investment securities	133	111	124	101
Commitments for non-cancellable
operating leases			2010	2009
Minimum lease payments
not later than one year			32	32
later than one year and not later than ve years			78	82
later tha ve years			101	106
Total			212	220
Lease and sublease payments recognised as an expense in the period
minimum lease payments			-34	-34
sublease payments			0	0
Total			-34	-34

The subsidiaries If P&C Insurance Ltd and If P&C Insurance Company Ltd provide insurance with mutual undertakings within the Nordic Nuclear Insurance Pool and within the Norwegian Natural Perils' Pool.

In connection with the transfer of property and casualty insurance business from the Skandia group to the If Group as of March 1, 1999, If P&C Holding Ltd and If P&C Insurance Ltd issued a guarantee for the benefit of Försäkringsaktiebolaget Skandia (publ.) whereby the aforementioned companies in the If Group mutually guarantee that companies in the Skandia group will be indemnified against any claims or actions due to guarantees or similar commitments made by companies in the Skandia group within the property and casualty insurance business transferred to the If Group.

With respect to certain IT systems that If and Sampo use jointly, If has undertaken to indemnify Sampo for any costs that Sampo may incur in relation to the owner of the systems.

If P&C Holding Ltd and If P&C Insurance Ltd have separately entered into contracts with Försäkringsaktiebolaget Skandia (publ.) and Tryg-Baltica Forsikrings AS whereby Skandia and Tryg-Baltica will be indemnified against any claims attributable to guarantees issued by Försäkringsaktiebolaget Skandia (publ.) and Vesta Forsikring AS, on behalf of Skandia Marine Insurance Company (U.K.) Ltd. (now Marlon Insurance Company Ltd.) in favor of the Institute of London Underwriters. Marlon Insurance Company Ltd. was disposed during 2007, and the purchaser issued a guarantee in favour of If for the full amount that If may be required to pay under these guarantees.

If P&C Holding Ltd has issued a guarantee to the benefit of TietoEnator Corporation whereby If Holdings guarantees the commitments incurred by the If Group company If It Services A/S with TietoEnator based on an agreement covering ITservices. The guarantee will indemnify TietoEnator if If IT Services A/S is declared bankrupt, suspends payments in general, seeks a composition of creditors or in any other way is deemed to be insolvent.

If P&C Holding Ltd has issued a guarantee to the benefit of Svenska Handelsbanken Ab (publ) whereby If Holdings guarantees the commitments incurred by the If P&C Insurance Ltd deriving from short term credits up to an amount of EURm 56 and for commitments deriving from derivates transaction and - on behalf of - If P&C Insurance Ltd, If P&C Insurance Company Ltd and Capital Assurance Company for those companies commitments relating to Letters of Credits issued on behalf of their insurance operations. Capital Assurance Company Inc was sold during 2008, and the purchaser issued a guarantee in favor of If for the amount that If may be required to pay under the standby letters of credit pertaining to Capital Assurance Company Inc.

If P&C Insurance Company Ltd has outstanding commitments to private equity funds totalling EURm 43, which is the maximum amount that the company has committed to invest in the funds. Capital will be called to these funds over several years as the funds make investments.

If P&C Insurance Ltd has according to a shareholders' agreement between the shareholders in Hemfosa Fastigheter AB committed to up until 30 June 2014 supply the company with a subordinated loan (shareholders' loan) up to a maximum amount of EURm 11.

Life insurance

EURm	2010	2009
Off-balance sheet items
Fund commitments	348	357
Other commitments
Acquisition of IT-software	2	0

Lended securities
Domestic shares
Number of shares	9,990,868	837,000
Remaining acquisition cost	112	10
Fair value	145	11

Security lendings can be interrupted at any time and they are secured.

EURm	2010	2009
Commitments for non-cancellable operating leases
Minimum lease payments
not later than one year	2	2
later than one year and not later than ve years	6	7
later tha ve years	-	1
Total	8	10
Total of sublease payments expected to be received under non-cancellable operating sub-leases at 31 Dec.	0	0
Lease and sublease payments recognised as an expense in the period
minimum lease payments	-3	-2
sublease payments	0	0
Total	-3	-2

Holding

EURm	2010	2009
O -balance sheet items
Subscription liabilities	1	3

Assets pledged as collateral for liabilities or contingent liabilities

	2010		2009
EURm	Assets pledged	Liabilities/ commitments	Assets pledged	Liabilities/ commitments
Assets pledged as collateral
Investments
Mortgaged collateral notes	-	-	15	6
EURm			2010	2009
Commitments for non-cancellable operating leases
Minimum lease payments
not later than one year			1	1
later than one year and not later than ve years			3	3
later tha ve years			1	2
Total			5	7

The Group had at the end of 2009 premises a total of 188,589 m2 (180,872) taken as a lessee. The contracts have been made mainly for 3 to 10 years.

34 Equity and Reserves

Equity

There was no change in the company's share capital of EURm 98 during th nancial year. The 90,000 treasury shares acquired during 2009 were cancelled on 8 June, 2010 a er which the number of shares is 561,282,390.

At the end of th nancial year 2010, the mother company or other Group companies held no shares in the parent company.

Reserves and retained earnings

Share premium reserve

The reserve included investments of equity nature and the issue price of shares to an extent it was not recorded in share capital by an express decision. During th nancial year 2009, EURm 1,161 was transferred to the reserve for invested unrestricted equity from the share premium reserve.

Legal reserve

The legal reserve comprises the amounts to be transferred from the distributable equity according to the articles of association or on the basis of the decision of the AGM. During th nancial year 2009, EURm 366 was transferred to the reserve for invested unrestricted equity from the legal reserve.

Invested unrestricted equity

The reserve includes other investments of equity nature, as well as issue price of shares to an extent it is not recorded in share capital by an express decision. During th nancial year 2009, EURm 1,161 was transferred to this reserve from the share premium reserve and EURm 366 from the legal reserve.

Other components of equity

Other components of equity include fair value changes o nancial assets available for sale and derivatives used in cas ow hedges, and exchange di erences.

Changes in the reserves and retained earnings are presented in the Group's statement of changes in equity.

Shares and votes

The number of Sampo plc's shares at 31 Dec. 2010 was 561,282,390, of which 560,082,390 were A-shares and 1,200,000 B-shares. Each A share has 1 vote and each B-share has 5 votes at General Meetings. All the B-shares are owned by the Kaleva Mutual Insurance Company. B-shares can be converted into A-shares at the request of the holder of B-shares. Sampo's A-shares are quoted on the Helsinki Stock Exchange (currently NASDAQ OMX Helsinki). On 13 April, 2010, the Annual General Meeting granted the Board of Directors authorisation to buy back Sampo's shares, valid until the close of the next AGM, nevertheless not more than 18 months after the AGM's decision. The maximum amount of A-shares that 50,000,000 can be bought back is shares in either one or various set. Shares may be acquired otherwise than inproportion to the shareholders' holdings through public trading at a market price prevailing at the time of purchase.

35 Related Party Disclosures

Key management personnel

The key management personnel in Sampo Group consists of the members of the Board of Directors of Sampo plc and Sampo Group's Executive Committee.

Key management compensation

EURm	2010	2009
Short-term employee bene ts	7	6
Post employment bene ts	1	2
Other long-term bene ts	8	2
Total	16	10

Short-term employee bene ts comprise salaries and other short-terms bene ts, including pro t-sharing bonuses accounted for for the year, and social security costs.

Post employment bene ts include pension bene ts under the Employees' Pensions Act (TEL) in Finland and voluntary supplementary pension bene ts.

Other long-term bene ts consist of the bene ts under long-term incentive schemes accounted for for the year (see Note 36).

Related party transactions of the key management

The key management does not have any loans from the Group companies.

Associates

Outstanding balances with related parties/Associate Nordea

EURm	2010	2009
Assets	1,673	1,718
Liabilities	56	35

The Group's receivables from Nordea coprise mainly long-term investments in bonds and deposits. In addition, the Group has several on-going derivative contracts related to the Group's risk management of investments and liabilities.

36 Incentive Schemes

Long-term incentive schemes 2006 II - 2009 I

The Board of Directors for Sampo plc has decided on the long-term incentive schemes 2006 II - 2009 I for the management and experts of the Sampo Group. The Board has authorised the Nomination and Compensation Committee of the Board, or the CEO, to decide who will be included in the scheme, as well as the number of calculated bonus units granted for each individual used in determining the amount of the performance-related bonus. In the schemes, the number of calculated bonus units granted for the members of the Group's Executive Committee is decided by the Board of Directors. Over 100 persons were included in the schemes at the end of year 2010.

The amount of the performance-related bonus is based on the value performance of Sampo's A share and on the insurance margin (IM) and, regarding already terminated schemes, also on Sampo's return on the risk adjusted capital (RORAC). The value of one calculated bonus unit is the tradeweighted average price of Sampo's A-share at the time period speci ed in the terms of the scheme, and reduced by the starting price adjusted with the dividends per share distributed up to the payment date. The pre-dividend starting prices vary between eur 8.88 - 20.17. The maximum value of one bonus unit varies between eur 19 - 30, reduced by the dividend-adjusted starting price. The IM criteria in the schemes has three levels. If the insurance margin reaches 4 per cent or more, the bonus is paid in its entirety. If the insurance margin is between 2 - 3.99 per cent, the payout is 50 per cent. In the case of insurance margin staying below these benchmarks, no bonus will be paid out.

Each plan has three performance periods and bonuses are settled in cash in three installments. In the schemes 2008 I, 2008 II and 2009 I when the bonus is paid, the employee shall buy Sampo's Ashares at th rst possible opportunity, taking into account the provisions on insiders, with 30 per cent of the amount of the bonus a er taxes and other comparable charges, and in schemes 2008 I and 2008 II to keep the shares in his/her possession for one year and in the scheme 2009 I for 2 years. A premature payment of the bonuses may occur in the event of changes in the group structure or in the case of employment termination on speci cally determined bases. The fair value of the incentive schemes is estimated by using the Black-Scholes princing model.

	2006 II	2008 I	2008 II	2009 I
Terms approved *)	21/12/2006	16/01/2008	07/05/2008	27/08/2009
Granted (1,000) 31 Dec. 2007	180	-	-	-
Granted (1,000) 31 Dec. 2008	112	3,961	95	-
Granted (1,000) 31 Dec. 2009	47	2,723	63	4,392
Granted (1,000) 31 Dec. 2010	-	-	32	4,369

End of performance period I 30 %	Q3-2008	Q1-2009	Q3-2009	Q2-2011

End of performance period II 35 %	Q1-2009	Q3-2009	Q1-2010	Q2-2012
End of performance period III 35 %	Q3-2009	Q2-2010	Q4-2010	Q2-2013
Payment I 30 %	12-2008	6-2009	12-2009	9-2011
Payment II 35 %	6-2009	1-2010	6-2010	9-2012
Payment III 35 %	1-2010	9-2010	3-2011	9-2013

Price of Sampo A at terms approval date *)	20.25	18.23	18.02	16.74
Starting price **)	20.17	17.26	18.44	16.49
Dividend-adjusted starting price at 31 Dec. 2010	16.97	14.26	16.64	15.49
Sampo A - closing price 31 Dec. 2010	20,05

Total intrinsic value, meur	0	0	0	10
Total debt	10
Total cost for the financial period, meur (incl. social costs)	13

*) Grant dates vary

**) Trade-weighted average for ten trading days from the approval of terms

Sampo 2006 share-based incentive programme

On 5 April 2006, the Annual General Meeting of Sampo plc agreed on the "Sampo 2006" share-based incentive programme. The programme applies to senior executive management of Sampo plc and its subsidiaries, and to Sampo's president and CEO. On 11 May 2006, the Board of Directors of Sampo plc allocated 1,300,000 shares of the maximum of 1,500,000 shares of the programme. The programme ended in 2010.

50 per cent of the amount of the reward eventually payable was based on the price performance of Sampo's A-share, and the other 50 per cent was based on the development of insurance margin (IM). The programme had three performance periods that covered the years 2006 – 2010. Each installment corresponded, at the maximum, to one third of the total amount of shares. The terms of the programme included a limitation according to which the amount of the reward payable was decreased, if Sampo's share price increased by more than 160 per cent during an individual performance period. The shares to be distributed as a reward were partly subject to a two-year lockup.

In accordance with the programme, the reward was paid in three installments. The last installment (EUR 3,571,863) was paid in December 2010. The reward was paid in cash so that the employee was obliged to buy Sampo's A-shares at Helsinki Stock Exchange at the least with 50 percent of the amount of the bonus a er taxes and other comparable charges.

Performance Periods	Period I	Period II	Period III
Share price *)	5 2006 - Q3 2008	Q4 2006 - Q3 2009	Q4 2007 - Q3 2010
Insurance margin	1/2006 - 9/2008	1/2007 - 9/2009	1/2008 - 9/2010

Increase of dividend adjusted share price Performance conditions for periods	Insurance margin
Minimum payout requirement 26 %	5 %
Maximum payout requirement 64 %	10.5 %
Payout of the total maximum reward if the minimum is achieved 20 %	40 %

The cost from the incentive scheme during the reporting period 2010 was EURm 0.4.

37 Auditors' Fees

EURm	2010	2009
Auditing fees	2	2
Other fees	0	0
Total	2	2

38 Legal Proceeding

There are a number of legal proceedings against the Group companies outstanding on 31 Dec. 2010, arising in the ordinary course of business. The companies estimate it unlikely that any signi cant loss will arise from these proceedings.

39 Investments in Subsidiaries

Name EURm	Group holding %	Carrying amount
P&C insurance
If P&C Insurance Holding Ltd	100	1,886
If P&C Insurance Ltd	100	1,347
If P&C Insurance Company Ltd	100	495
If P&C Insurance AS	100	49
CJSC If Insurance	100	10
SOAO Region	100	13
If Livförsäkring Ab	100	8
Life insurance
Mandatum Life Insurance Company Ltd	100	484
Mandatum Life Insurance Baltic SE	100	11
Other business
Oy Finnish Captive & Risk Services Ltd	100	0
If IT Services A/S	100	0
Riskienhallinta Oy	100	0
Barn i Bil	100	0
Sampo Capital Oy	100	1

The table excludes property and housing companies accounted for in the consolidated accounts.

40 Investments in Shares and Participations Other Than Subsidiaries and Associates

P&C Insurance

Listed companies

EURm	Country	No. of shares	Holding %	Carrying amount/ Fair value
A P Moller - Maersk B	Denmark	1,500	0.07 %	10
Eitzen Maritime Services	Norway	13,126,590	2.43 %	1
Equinox O shore Accommodation Ltd	Singapore	2,610,000	4.97 %	1
Reservoir Exploration Technology	Norway	7,263,260	8.16 %	3
StatoilHydro ASA	Norway	1,823,700	0.06 %	32
Veidekke ASA	Norway	11,793,485	8.67 %	79
Yara International ASA	Norway	217,150	0.08 %	9
ABB Ltd (SEK)	Switzerland	2,675,989	0.12 %	45
Astra Zeneca Plc	Great Britain	524,500	0.04 %	18
Atlas Copco AB B	Sweden	3,094,241	0.25 %	52
B&B Tools B	Sweden	264,500	0.93 %	3
BE Group AB	Sweden	3,258,852	6.52 %	16
Cardo AB	Sweden	2,700,893	10.00 %	126
Clas Ohlson AB B	Sweden	2,742,908	4.18 %	34
CTT Systems AB	Sweden	511,200	4.71 %	1
G & L Beijer B	Sweden	100,000	0.47 %	3
Gunnebo AB	Sweden	8,036,166	10.59 %	48
Hennes & Mauritz Ab B	Sweden	1,990,192	0.12 %	50
Husqvarna AB A+B	Sweden	6,773,059	1.01 %	42
Lindab International AB	Sweden	3,322,316	4.22 %	33
Nederman Holding AB	Sweden	1,160,400	9.90 %	13
Nobia AB	Sweden	14,632,850	8.35 %	98
Nolato Ab B	Sweden	312,349	1.19 %	3
Sandvik AB	Sweden	3,530,780	0.30 %	52
Scania AB B	Sweden	2,159,397	0.27 %	37
Sectra AB B	Sweden	4,356,300	11.82 %	17

SSAB Svenskt Stål AB serie A+B	Sweden	1,723,475	0.22 %	20
Svedbergs i Dalstorp AB B	Sweden	2,325,600	10.97 %	13
TeliaSonera AB	Sweden	7,940,000	0.18 %	47
VBG AB B	Sweden	524,200	3.83 %	6
Volvo Ab A+B	Sweden	3,918,572	0.06 %	51
Topdanmark A/S	Denmark	1,998,668	11.70 %	198

Total listed companies 1,163

Other 12

Unit trusts

EURm	Country	No. of shares	Carrying amount/ Fair value
SAMPO JAPAN OSAKE K JPY	Finland	315,965,078	34
ABERDEEN GL ASIA PACIFIC	Luxemburg	940,169	49
MAND NORTH AM ENHANCED IND USD	Finland	26,369,493	32
MAND US SMALL CAP VALUE K USD	Finland	26,386,762	43
ISHARES SP500 INDEX FUND	United States	595,000	56
SPDR SP500 ETF	United States	190,000	18
Gartmore Latin America A	Luxemburg	1,845,097	38
Danske Invest Emerging Asia Kasvu	Luxemburg	2,210,726	77
Danske Invest Europe Enhanced Index Kasvu	Finland	37,941,655	60
db x-trackers DAX ETF	Luxemburg	200,000	14
IShares DJ Euro Stoxx 50 ETF	Ireland	752,200	21
The Lyxor DJ Eurostoxx 50 ETF	France	220,000	6
Lyxor ETF DJ Stoxx 600 Telecommunications	France	1,000,000	27
PMI Venture Fund L.P. (CIM Venture Fund for Creative Industries L.P.)	Finland	6,000	0
EQT IV (No. 1) Limited Partnership	Finland	974,149	7

EQT III UK No 1 L.P. (EQT Northern Europe UK No. I L.P.)	Finland	855,817	5
Goldman Sachs Loan Partners I, L.P. Debt EUR	Cayman islands	2,082,716	21
Mandatum Pääomarahasto I Ky	Finland	737,995	8
Mandatum Pääomarahasto II Ky EUR	Finland	148,000	1
Private Energy Market Fund L.P.	Finland	310,300	3
Goldman Sachs Loan Partners I, L.P.	United States	1,237,422	12
Goldman Sachs Loan Partners I, L.P. Debt USD	United States	8,848,184	65
Mandatum Pääomarahasto II Ky USD	United States	516,000	4
WD Power Investment USD	United States	10,237	0

Total unit trusts 599

Total shares and participations 1,774

Life insurance

Listed companies

EURm	Country	No. of shares	Holding %	Carrying amount/ Fair value
Alma Media Plc	Finland	6,655,512	8.87	55
Amanda Capital Plc	Finland	2,053,296	9.02	4
Amer Sports Plc	Finland	2,226,302	1.83	23
Basware Plc	Finland	550,000	4.7	14
Comptel Oyj	Finland	19,569,925	18.28	14
Elisa Corporation	Finland	1,500,000	0.9	24
F-Secure Plc	Finland	3,416,481	2.17	7
Finnlines Plc	Finland	773,500	1.65	6
Fortum Plc	Finland	2,315,886	0.26	52
Kemira Plc	Finland	2,617,736	1.69	31
Konecranes Plc	Finland	350,814	0.57	11

Danske Invest High Yield

Danske Invest Japani Osake

Danske Invest Emerging Asia
EURm	Country	No. of shares	Holding %	Carrying amount/ Fair value
Unit trusts
Metsä Tissue Plc	Finland	553,407	6.07	11
Other companies

Listed companies in total				676
Other listed companies				11
Total				665

YIT Plc	Finland	5,207,865	4.09	97
Vaisala Plc	Finland	766,650	4.21	16
Uponor Plc	Finland	800,000	1.09	11
UPM-Kymmene Plc	Finland	2,965,474	0.57	39
Tikkurila Plc	Finland	1,354,434	3.07	22
Teleste Plc	Finland	1,679,200	9.23	7
Stora Enso Plc	Finland	2,775,000	0.35	21
Salcomp Plc	Finland	3,724,000	9.46	7
Rautaruukki Plc	Finland	890,194	0.63	16
Pöyry Plc	Finland	1,745,287	2.94	16
Outotec Plc	Finland	350,000	0.76	16
Outokumpu Plc	Finland	900,000	0.49	12
Oriola KD Plc	Finland	3,315,778	2.19	11
Norvestia Plc	Finland	1,789,538	11.68	15
Nokian Renkaat Plc	Finland	692,344	0.54	19
Nokia Plc	Finland	1,500,000	0.04	12
Metso Plc Neste Oil Plc	Finland	1,596,000	0.62	19
	Finland	849,483	0.57	36

Growth Finland 2,172,875 75

Growth Finland 46,267,742 61

Growth Finland 203,618,921 22

Total			222
Taaleritehdas Lyydian Leijona Osake	Finland	62,638	10
Fourton Odysseus Growth	Finland	161,188	36
DCF Fund II- Baltic States	Finland	8,314	13
Danske Invest Trans-Balkan Growth	Finland	465,974	6

Capital trusts

EURm	Country	Carrying amount/ Fair value
Amanda III Eastern Private Equity Ky	Finland	10
Amanda IV West Ky	Finland	5
CapMan Real Estate I Ky	Finland	12
CapMan Real Estate II Ky	Finland	5
MB Equity Fund III Ky	Finland	6
Mandatum Pääomarahasto I Ky	Finland	13
Total		50
Other shares and participations		29
Domestic shares and participations in total		990

Other companies

EURm	Country	No. of shares	Holding %	Carrying amount/ Fair value
EQT IV ISS Co-investment Limited Partnership	Guernsey	872610	12.52	9
BenCo Insurance Holding B.V.	Netherlands	389,329	6.49	7
Total				16

Foreign unit trusts

EURm	Country	No. of shares	Carrying amount/ Fair value
Aberdeen Global Asia Paci c Equity Fund	Great Britain	1,689,572	87
Allianz RCM Europe Equity Growth W	Luxemburg	28,649	39
Brevan Howard Fund B	Cayman islands	817,500	6
Comac Global Macro Fund	Cayman islands	1,000,000	8
Comgest Panda	Luxemburg	19,776	42
Danske Invest High Dividend I	Luxemburg	3,120,908	29
db x-trackers DAX ETF	Luxemburg	1,220,000	84
db x-trackers DJ STOXX 600 Telecommunications	Luxemburg	1,000,000	49
GAM Global Rates Hedge Fund	Great Britain	50,300	8
Gartmore Latin America A	Great Britain	3,798,776	78
Goldman Sachs Asset Management Liquidity Partners 2007	United States	397,734	22
GSAMI China Funds X EUR Accumulation Class Shares	United States	700,000	8
IShares S&P 500 Index Fund ETF	United States	1,474,990	139
Lloyd George Asia Small Companies Fund	Hong Kong	233,008	20
MFS European Value Fund Z	Luxemburg	284,433	28
Nektar Bermuda Hedge Fund Class B	Bermuda	2,861	5
New Russian Generation Limited	Guernsey	7,134,586	15
Prosperity Cub Fund	Guernsey	237,181	78
Prosperity Russia Domestic Fund	Guernsey	70,136,000	45
SPDR Technology Select Sector ETF	United States	2,724,000	51
The Lyxor ETF MSCI India	France	1,210,035	16
Total			857

Foreign unit trusts

EURm	Country	Carrying amount/ Fair value
Access Capital L.P.	Guernsey	8
Behrman Capital III L.P.	United States	7
BOF III CV Investors LP (Gilde Buyout Fund III)	Guernsey	8
Capital Structured Solutions No. 1 LP	Guernsey	20
CapMan Buyout VIII (Guernsey) L.P.	Guernsey	6
CapMan Equity VII B L.P.	Guernsey	7
EQT Credit (General Partner) L.P.	Guernsey	20
EQT IV (No. 1) Limited Partnership	Guernsey	7
EQT V (General Partner) LP	Guernsey	12
Fortress Credit Opportunities Fund II L.P.	Cayman islands	46
Fortress Life Settlement Fund (C) L.P.	Cayman islands	18
Goldman Sachs Loan Partners I, L.P.	Cayman islands	16
Goldman Sachs Loan Partners I, L.P. Debt EUR	Cayman islands	27
Goldman Sachs Loan Partners I, L.P. Debt USD	Cayman islands	86
Goldman Sachs Petershill Fund O shore, L.P.	Cayman islands	25
Highbridge Senior Loan Fund II	Cayman islands	13
Montagu Fund III L.P.	Great Britain	7
Mount Kellet Capital Partners (Cayman), L.P.	Cayman islands	32
Pai Europe IV L.P.	Guernsey	8
Permira Europe IV	Guernsey	5
Russia Partners II L.P.	Cayman islands	9
VenCap 9 LLC (Preferential Equity Investors II LLC	Jersey	6
Total		394
Other share and participations		101

Foreign shares and
participations in total	1,367

Shares and participations in total 2,357

Holding

Domestic other than listed companies

EURm	Country	No. of shares	Holding %	Carrying amount/ Fair value
Varma Mutual Pension Insurance Company	Finland	57	80.28	14
Other	Finland			6
Total domestic shares and participations				20

Foreign unit trusts

EURm	Country	Carrying amount/ Fair value
Behrman Capital III L.P.	United States
Other		16
Foreign shares and participations		16
Total shares and participations		36

Holdings exceeding EURm 5 and holdings in listed companies exceeding five per cent specified.

The table does not include investments related to unit-linked insurance contracts.

41 Event er the Balance Sheet Date

In the meeting of 9 Feb. 2011, the Board of Directors decided to propose at the Annual General Meeting on 14 April 2011 a dividend distribution of EUR 1.15 per share, or total EUR 645.474.850, for 2010. The dividends to be paid will be accounted for in the equity in 2011 as a deduction of retained earnings.

Parent Company Income Statement

EURm	Note	2010	2009
Other operating income	1	17	14

Sta xpenses
Salaries and remunerations		-11	-9
Social security costs
Pension costs		-1	-2
Other		-1	-1
Depreciation and impairment	2
Depreciation according to plan		0	0

Other operating expenses	3	-12	-18
Operating pro t		-8	-15
Financial income and expense	5
Income from shares in Group companies		540	488
Income from other shares		207	81
Other interest an nancial income
Group companies		7	8
Other		2	11
Other investment income and expense		25	-7
Other interest income		60	39
Interest and othe nancial expense
Group companies		-1	-1
Other		-116	-89
Exchange result		-13	8
Pro efore taxes		702	522
Income taxes
Tax for th nancial year		-	-
Tax from previous years		0	2
Deferred taxes		9	7

Pro t for th nancial year		710	531

Parent Company Balance Sheet

EURm	Note	2010	2009
Assets
Non-current assets
Intangible assets	6
Intangible rights		-	0
Other long-term expenses		1	1
Property, plant and equipment	7
Buildings		1	1
Equipment		1	1
Other		2	2
Investments
Shares in Group companies	8	2,370	2,370
Receivables from Group companies	9	145	122
Shares in participating undertakings	10	5,304	5,168
Receivables from participating undertakings		150	-
Other shares and participations	11	40	41
Other receivables	12	365	14
Short-term receivables
Receivables from Group companies		-	3
Deferred tax assets	20	18	11
Other receivables	13	56	29
Prepayments and accrued income	14	45	55
Cash at bank and in hand		56	412
Total assets		8,553	8,229
Liabilities
Equity	15
Share capital		98	98
Fair value reserve		0	-3
Invested unrestricted equity		1,527	1,527

Other reserves		273	273
Retained earnings		4,088	4,108
Pro t for th nancial year		710	531
		6,696	6,534
Liabilities
Long-term liabilities
Subordinated debt securities	17	-	37
Bonds		1,026	962
Pension loans		130	130
Short-term liabilities
Debt securities		575	466
Other liabilities	18	73	37
Accruals and deferred income	19	53	63
Total liabilities		8,553	8,229

Parent Company Statement of Cash Flows

EURm	2010	2009
Operating activities
Pro t before taxes	702	523
Adjustments:
Depreciation and amortisation	0	0
Unrealised gains and losses arising from valuation	1	1
Realised gains and losses on investments	0	23
Other adjustments	79	10
Adjustments total	80	34
Change (+/-) in assets of operating activities
Investments *)	-543	1,096
Other assets	10	-7
Total	-533	1,089
Change (+/-) in liabilities of operating activities
Financial liabilities	3	7
Other liabilities	52	2
Paid interests	-143	-62
Paid taxes	0	-5
Total	-88	-58
Net cash from operating activities	161	1,587
Investing activities
Investments in group and associated undertakings	-69	-1,759
Proceeds from the sale of group and associated undertakings	0	0
Other investments	0	0
Net investment in equipment and intangible assets	0	0
Net cash used in investing activities	-69	-1,759

Financing activities
Acquisition of own shares	-	-1
Dividends paid	-554	-444
Issue of debt securities	1,954	2,002
Repayments of debt securities in issue	-1,848	-1,008
Net cash used i nancing activities	-448	549
Total cas ows	-356	377
Cash and cash equivalents at 1 January	412	35
Cash and cash equivalents at 31 December	56	412
Net change in cash and cash equivalents	-356	377

*) Investments include both investment property an nancial assets.

Additional information to the statement of cas ows:

EURm	2010	2009
Interest income received	78	17
Interest expense paid	143	-62
Dividend income received	747	569

Notes to the Parent Company Financial Statements

Summary of signi cant account policies

The presentation of Sampo Plc' nancial statements together with the notes has been prepared in accordance with the Finnish Accounting Act and Ordinance. The accounting principles applied to the separat nancial statements of Sampo plc do not materially di er from those of the Group, prepared in accordance with the International Financial Reporting Standards (IFRSs). Th nancial assets are measured at fair value derived from the markets. The accounting principles for the Group are described in section Notes to the Accounts, Summary of Signicant Accounting Policies.

Notes on the Income statement

1 Other operating income

EURm	2010	2009
Income from property occupied for own activities	1	2
Other	16	13
Total	17	14
2 Depreciation and impairment
EURm	2010	2009
Property, plant and equipment	0	0
Intangible assets	0	0
Total	0	0
3 Other operating expenses
EURm	2010	2009
Rental expenses	-1	-3

Expense on property occupied for own activities 0 -1 Other -10 -14

Total	-12	-18

Item Other includes e.g. administration and IT expenses and fees for external services.

4 Auditors' fees

EURm	2010	2009
Authorised Public Accountants Ernst & Young Oy
Auditing fees	-0.2	-0.3
Certi cates and expert opinions	0.0	0.0
Tax consulting	0.0	0.0
Other fees	0.0	0.0
Total	-0.2	-0.3

5 Financial income and expense

EURm	2010	2009
Received dividends in total	747	569
Interest income in total	69	58
Interest expense in total	-118	-90
Gains on disposal in total	0	1
Losses on disposal in total	0	-23
Exchange result	-13	8
Other	25	16
Total	710	538

Notes on the Parent Company Assets

6 Intangible assets

	2010		2009
EURm	IT	Other	IT	Other
Cost at beginning of year	3	2	3	2
Accumulated amortisation at beginning of year	-3	-1	-3	-1
Amortisation according to plan during th nancial year	0	0	0	0
Carrying amount at end of year	0	1	0	1

7 Property, plant and equipment

	2010		2009
EURm	Land and buildings	Other	Land and buildings	Other
Cost at beginning of year	2	4	4	4
Additions	0	0	0	0
Disposals	-	-	-2	-
Transfers	-	0	-	-
Accumulated depreciation at beginning of year	-1	-1	-1	0
of which related to disposals	-	0	0	-
Accumulated impairment losses at beginning of year	-	-	0	-
of which related to disposals	-	-	-	-
Depreciation according to plan during th nancial year	0	0	0	0
Carrying amount at end of year	1	3	1	3

8 Shares in group companies

EURm	2010	2009
Cost at beginning of year	2,370	2,370
Disposals	-	-
Carrying amount at end of year	2,370	2,370

9 Receivables from group companies

EURm	2010	2009
Cost at beginning of year	122	122
Additions	23	22
Disposals	-	-23
Carrying amount at end of year	145	122

Receivables are subordinated loans issued by subsidiaries. More information in the consolidated note 29 Financial liabilities.

10 Shares in participating undertakings

EURm	2010	2009
Cost at beginning of year	5,168	0
Additions	136	5,168
Disposals	-	-
Carrying amount at end of year	5,304	5,168

11 Other shares and participations

	2010	Fair value changes		2009		Fair value changes
EURm	Fair value	Recognised in p/l	Recognised in fair value reserve	Fair value	Recognised in p/l	Recognised in fair value reserve
Available-for-sale equity securities	36	1	2	36	23	1,733

Changes in property shares

EURm	2010	2009
Cost at beginning of year	5	5
Disposals	-1	0
Carrying amount at end of year	4	5

Di erence between current cost and carrying amount	0	0

12 Other investment receivables

	2010	Fair value changes		2009		Fair value changes
			Recognised in fair			Recognised in fair
EURm	Fair value	Recognised in p/l	value reserve	Fair value	Recognised in p/l	value reserve
Market money	359	-	0	-	-	-
Bonds	6	-	1	14	-	-
Total	365	-	1	14	-	-

13 Other receivables

EURm	2010	2009
Trading receivables	16	16
Derivatives	36	12
Other	5	1
Total	56	29

14 Prepayments and accrued income

EURm	2010	2009
Accrued interest	43	53
Other	2	3
Total	45	55

Notes on the Parent Company Liabilities

15 Movements in the parent company's equity

	Restricted equity			Unrestricted equity
EURm	Share capital	Share premium account	Legal reserve	Fair value reserve	Invested unrestricted capital	Other reserves	Retained earnings	Total
Carrying amoun at 1 Jan. 2009	98	1,160	366	-1,759	-	273	4,548	4,686
Transfers between equity		-1,160	-366		1,527			0

Dividends							-449	-449
Recognition of undrawn dividends							11	11
Financial assets available-for sale
recognised in equity				17				17
recognised in p/l				1,739				1,739
Acquisition of own shares							-1	-1
Pro t for the year							531	531
Carrying amount at 31 Dec. 2009	98	0	0	-3	1,527	273	4,640	6,534

		Restricted equity				Unrestricted equity
EURm	Share capital	Share premium account	Legal reserve	Fair value reserve	Invested unrestricted capital	Other reserves	Retained earnings	Total
Carrying amoun at 1 Jan. 2010	98	0	0	-3	1,527	273	4,640	6,534
Dividends							-561	-561
Recognition of undrawn dividends							10	10
Financial assets available-for sale
recognised in equity				2				2
recognised in p/l				1				1
Acquisition of own shares								0
Pro t for the year							710	710
Carrying amount at 31 Dec. 2010	98	0	0	0	1,527	273	4,799	6,696

Distributable assets

EURm	2010	2009
Parent company
Pro t for the year	710	531
Retained earnings	4,088	4,108
Invested unrestricted capital	1,527	1,527
Other reserves	273	273
Undistributable items	0	-3
Total	6,598	6,436

16 Share capital

Information on share capital is disclosed in Note 29 in the consolidate nancial statements.

17 Debentures

EURm	2010	2009
Debentureloan, nominal value EURm 600, call 21.4.09 due 2014	-	37
annua xed interest 4,625% until April 2009, therea er oating

18 Other liabilities

EURm	2010	2009
Unredeemed dividends	26	29
Derivatives	10	7
Guarantees for derivate contracts	36	-
Other	1	1
Total	73	37

19 Accruals and deferred income

EURm	2010	2009
Deferred interest	47	47
Other	7	16
Total	53	63

Notes on the income taxes

20 Deferred tax assets and liabilities

EURm	2010	2009
Deferred tax assets
Timing di erences	19	5
Fair value reserve	0	6
Total	0	1
Total	19	12

Deferred tax liabilities
Timing di erences	-1	-2

Total, net	18	11

Notes on the liabilities and commitments

21 Pension liabilities

The basic and suplementary pension insurance of Sampo plc's sta s handled through insurances in Varma Mutual Insurance Company and in Mandatum Life Insurance Company Limited.

22 Future rental commitments

EURm	2010	2009
Not more than one year	1	1
Over one year but not more tha ve years	3	3
Ove ve years	1	2
Total	5	7

23 O -balance sheet items

EURm	2010	2009
Underwriting commitments	1	3
O -balance sheet items total	1	3
To or on behalf of Group companies	-	-
To or on behalf of associates	-	-

Notes on the sta nd management

24 Sta umbers	Average during the year	Average during the year
Full-time sta	49	52
Part-time sta	2	1
Temporary sta	1	1
Total	52	54

25 Management's remuneration and post-employment bene ts

(EUR thousand)			2010	2009
Managing Director	Kari Stadigh	8.4. - 31.12.2009	2,363	892
	Björn Wahlroos	1.1. - 7.4.2009	-	572

Deputy Managing Director	Kari Stadigh	1.1. - 7.4.2009	-	336

The employment of Björn Wahlroos continued until 30
June 2009.		8.4. - 30.6.2009	-	267

Members of the Board of Directors
Björn Wahlroos			160	120
Tom Berglund			80	80
Anne Brunila			80	80
Mattila Veli-Mati			80	80
Eira Palin-Lehtonen			80	80
Jukka Pekkarinen			80	80
Christo er Taxell			80	80
Matti Vuoria			100	100

Pension liability

The retirement age of the Managing Director is 60 years, when the pension benefit is 60% of the pensionable salary.

Notes on shares held

26 Shares held as of 31 Dec, 2010

	Percentage of share capital	Carrying amount
Company name	held*)	EURm
Group undertakings

P&C insurance
If Skadeförsäkring Holding AB, Stockholm Sweden	100	1,886

Life insurance
Mandatum Life Ltd, Helsinki Finland	100	484

Other
Sampo Capital Oy, Helsinki Finland	100	1

Approval of the Financial Statements and the Board of Directors' Report

Helsinki, 9 February 2011

Sampo plc

Board of Directors

Tom Berglund Anne Brunila Veli-Matti Mattila

Eira Palin-Lehtinen Jukka Pekkarinen Christoffer Taxell

Matti Vuoria

Björn Wahlroos

Chairman

Kari Stadigh

Group CEO

Auditor's report

To the Annual General Meeting of Sampo plc

We have audited the accounting records, th nancial statements, the report of the Board of Directors, and the administration of Sampo plc for th nancial period 1.1. - 31.12.2010. Th nancial statements comprise the consolidated statement o nancial position, statement of comprehensive income, statement of changes in equity and statement of cas ows, and notes to the consolidate nancial statements, as well as the parent company's balance sheet, income statement, cas ow statement and notes to th nancial statements.

Responsibility of the Board of Directors and the Managing Director

The Board of Directors and the Managing Director are responsible for the preparation of consolidate nancial statements that give a true and fair view in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU, as well as for the preparation of nancial statements and the report of the Board of Directors that give a true and fair view in accordance with the laws and regulations governing the preparation of th nancial statements and the report of the Board of Directors in Finland. The Board of Directors is responsible for the appropriate arrangement of the control of the company's accounts an nances, and the Managing Director shall see to it that the accounts of the company are in compliance with the law and that it nancial a airs have been arranged in a reliable manner.

Auditor's Responsibility

Our responsibility is to express an opinion on th nancial statements, on the consolidate nancial statements and on the report of the Board of Directors based on our audit. The Auditing Act requires that we comply with the requirements of professional ethics. We conducted our audit in accordance with good auditing practice in Finland. Good auditing practice requires that we plan and perform the audit to obtain reasonable assurance about whether th nancial statements and the report of the Board of Directors are free from material misstatement, and whether the members of the Board of Directors of the parent company and the Managing Director are guilty of an act or negligence which may result in liability in damages towards the company or violated the Limited Liability Companies Act or the articles of association of the company.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in th nancial statements and the report of the Board of Directors. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation o nancial statements and report of the Board of Directors that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the e ectiveness of the company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of th nancial statements and the report of the Board of Directors.

We believe that the audit evidence we have obtained is su cient and appropriate to provide a basis for our audit opinion.

Opinion on the consolidate nancial statements

In our opinion, the consolidate nancial statements give a true and fair view of th nancial positio nancial performance, and cash ows of the group in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU.

Opinion on the company' nancial statements and the report of the Board of Directors

In our opinion, th nancial statements and the report of the Board of Directors give a true and fair view of both the consolidated and the parent company' nancial performance an nancial position in accordance with the laws and regulations governing the preparation of th nancial statements and the report of the Board of Directors in Finland. The information in the report of the Board of Directors is consistent with the information in th nancial statements.

Opinions based on the assignment of the Audit Committee

We support that th nancial statements should be adopted. The proposal by the Board of Directors regarding the use of the pro t shown in the balance sheet is in compliance with the Limited Liability Companies Act. We support that the members of the Board of Directors of the parent company and the Managing Director should be discharged from liability for th nancial period audited by us.

Helsinki, March 3, 2011

Ernst & Young Oy

Authorized Public Accountant Firm

Heikki Ilkka Authorized Public Accountant

305

293

For Investors

295 Financial information and Annual General Meeting 2011
297 Contacts

Financial Information and Annual General Meeting in 2011

Sampo will publish three Interim Reports in 2011. The Interim Reports and related Supplementary Financial Materials are published on Sampo's website. Press and stock exchange releases, the monthly updated list of shareholders and other investor information published by Sampo are available at www.sampo.com. Sampo plc's Annual General Meeting will be held in April.

The record date for the Annual General Meeting

Shareholder who is registered on the record date for the Annual General Meeting in the company's Shareholder Register kept by Euroclear Finland Ltd has the right to participate in the General Meeting. Shareholders whose shares are registered on their personal Finnish bookentry accounts are registered in the company's Shareholder Register.

The registration for the Annual General Meeting will

Shareholder may register for the General Meeting

On the internet at www.sampo.com/agm;
By telephone to +358 (0)10 516 0028 from Monday to Friday, 8 am–4 pm (Finnish time);
By fax to +358 (0)10 516 0719; or
By mail to the address Sampo plc, Shareholder Services, Fabianinkatu 27, 00100 Helsinki, Finland.

Annual General Meeting

Sampo plc's Annual General Meeting will be held on 14 April, 2011 at 2 pm (Finnish time), at the Helsinki Exhibition and Convention Centre, address Messuaukio 1, Helsinki. The listing of persons who have registered for the meeting will commence at 12.30 pm.

Read more about the AGM at www.sampo.com/agm.

Ex-dividend date

If the buyer of a share makes a purchase to get dividend. Dividend goes with the seller.

Dividend record date

The right to the dividend is held by the shareholder who is marked in the Shareholders Register on the dividend record date.

Dividend payment date

Interim Report for the period January - March 2011

You can subscribe to Sampo's Stock Exchange Releases and Press Releases at sampo.com/subscription.

Interim Report for the period January - June 2011

You can subscribe to Sampo's Stock Exchange Releases and Press Releases at sampo.com/subscription.

Interim Report for the period January - September 2011

You can subscribe to Sampo's Stock Exchange Releases and Press Releases at sampo.com/subscription.

Contacts

Address

Sampo plc Fabianinkatu 27 00100 Helsinki Finland

Business ID

0142213-3

Telephone

+359 (0)10 516 0100

Fax

+358 (0)9 228 90 434 or +358 (0)10 516 0016

Registered domicile

Helsinki

Internet

www.sampo.com

E-mail

rstname.lastname@samp

Contact information for Group subsidiaries:

www.sampo.com/contacts

Jarmo Salonen

Head of Investor Relations and Group Communications

telephone +358 (0)10 516 0030 fax +358 (0)10 516 0016 jarmo.salonen@samp

Essi Nikitin

IR Manager, IR Contacts

telephone +358 (0)10 516 0066 fax +358 (0)10 516 0016 essi.nikitin@samp

Pirkko Rantanen

Service Manager, Shareholder Services

telephone +358 (0)10 516 0068 fax +358 (0)10 516 0719 pirkko.rantanen@samp

Maria Silander

Press Officer, Media Contacts

telephone +358 (0)10 516 0031 fax +358 (0)10 516 0016 [email protected]

Carolina Orädd

Web Communications Manager, Web Communications

telephone +358 (0)10 516 0065 fax +358 (0)10 516 0016 [email protected]

Päivi Walldén

Communications Manager, Publications and Web Communications

telephone 358 (0)10 516 0049 fax +358 (0)10 516 0016 [email protected]

AI assistant

Sampo Oyj — Annual Report 2010

3237_10-k_2011-03-10_644f6df9-f29d-4a5a-832c-6de8e360831c.pdf

Table of contents

Sampo Group

CEO's Review: A Year of Successful Decisions

Nordea Lives up to Expectations

The European Sovereign Debt Crisis Did Not Take Us by Surprise

2010 in Figures

Key figures, Sampo Group, 2010

Share Main Facts

Strategy

If P&C Insurance - Security and Stability

Mandatum Life - the leading life insurance provider in Finland and the Baltics

Dividend Policy

Group Structure

Organisation

Business Areas

If

Mandatum Life

Sampo plc

If P&C Insurance

Mandatum Life

Sampo plc

Personnel

P&C insurance

1. Launching the 'Business Initiatives' process widely across If

2. Training program for senior managers

3. Increasing focus on 'Skills and Initiatives' in all leader development activities.

4. Leadership evaluation

5. Digital learning

Life insurance

Corporate Responsibility

Corporate Governance

20 Corporate Governance Statement

21 Board of Directors

26 Board-Appointed Committees

29 Group Executive Committee

Corporate Governance Statement

Board of Directors

Positions of Trust:

Positions of Trust:

Positions of Trust:

The Research Institute of the Finnish Economy ETLA, Member of the Board

Anne Brunila (born 1957)

Positions of Trust:

Veli-Matti Mattila (born 1961)

Positions of Trust:

Eira Palin-Lehtinen (born 1950)

Positions of Trust:

Positions of Trust:

Positions of Trust:

Board Of Directors' Duties

The operating procedures and main duties of the Board of Directors have been defined in the Board's Charter.

Election and Terms of Office of Board Members

Board-Appointed Committees

Audit Committee

The main duties of the Audit Committee have been defined in the Committee's Rules of Procedure approved by the Board of Directors.

Nomination and Compensation Committee

Group Executive Committee

Kari Stadigh (born 1955)

Positions of Trust:

Positions of Trust:

Positions of Trust:

Peter Johansson (born 1957)

Positions of Trust:

Positions of Trust:

Positions of Trust:

Positions of Trust:

Petri Niemisvirta (born 1970)

Positions of Trust:

Morten Thorsrud (born 1971)

Positions of Trust:

Positions of Trust:

Ricard Wennerklint (born 1969)

Positions of Trust:

Group Executive Committee's Duties

Group CEO and President

The company has a Managing Director who is simultaneously Group CEO and President of Sampo Group.

Compensation

Sampo Oyj Annual Report 2010