Financial Statement Release

JANUARY-DECEMBER 2019 6 FEBRUARY 2020

	Summary	3
	Group CEO's Comment	5
	Fourth quarter 2019 in brief	6
	Business areas	7
If		7
	Topdanmark	9
	Associated company Nordea	11
	Mandatum Life	12
	Holding	14
	Other developments	15
	Changes in the Group structure	15
	Changes in Group Management	15
	Personnel	15

	Remuneration	15
	Shares and shareholders	16
	Internal dividends	16
	Ratings	17
	Group solvency	17
	Solvency position in the subsidiaries	17
	Debt financing	18
	Outlook	19
	Outlook for 2020	19
	The major risks and uncertainties to the Group in the near-term	19
	Dividends	20
	The new dividend policy	20
	Dividend proposal	20
	Tables	22
	Group financial review	22
	Calculation of key figures	24
	Group quarterly comprehensive income statement	26
	Statement of profit and other comprehensive income, IFRS	27
	Consolidated balance sheet, IFRS	28
	Statement of changes in equity, IFRS	29
	Statement of cash flows, IFRS	30
Notes		31
	Accounting policies	31
	Comprehensive income statement by segment for twelve months ended 31 December 2019	32
	Comprehensive income statement by segment for twelve months ended 31 December 2018	33
	Consolidated balance sheet by segment at 31 December 2019	34
	Consolidated balance sheet by segment at 31 December 2018	35
	Other notes	36
1	Insurance premiums	36
2	Net income from investments	37
3	Claims incurred	39
4	Staff costs	40
5	Intangible assets	40
6	Financial assets	41
7	Derivative financial instruments	41
8	Determination and hierarchy of fair values	42
9	Movements in level 3 financial instruments measured at fair value	47
10	Sensitivity analysis of level 3 financial instruments measured at fair value	49
11	Investments related to unit-linked insurance	49
12	Liabilities for insurance and investment contracts	50
13	Liabilities from unit-linked insurance and investment contracts	51
14	Financial liabilities	51
	Contingent liabilities and commitments
15		52
16	Result analysis of If	53
17	Sampo plc's income statement and balance sheet (FAS)	54

6 February 2020

Sampo Group's results for 2019

Sampo Group's profit before taxes for 2019 amounted to EUR 1,541 million (2,094). The profit includes a loss of EUR 155 million incurred when distributing Nordea shares as dividends in the third quarter of 2019. The profit for the comparison year contains a positive non-recurring item of EUR 197 million from the Danske Bank co-operation agreement that Mandatum Life completed in the second quarter of 2018. The total comprehensive income for the period, taking changes in the market value of assets into account, rose to EUR 1,565 million (1,034).

Earnings per share was EUR 2.04 (3.04) and marked-to-market earnings per share was EUR 2.63 (1.70). Marked-to-market earnings were boosted by strong equity market development. Return on equity for the Group amounted to 12.0 per cent (7.5) for 2019. Net asset value per share on 31 December 2019 increased to EUR 20.71 (20.60).
Sampo plc's Board of Directors is proposing at the Annual General Meeting to be held on 23 April 2020 a dividend of EUR 2.20 per share (2.85). The proposed dividend payment amounts in total to EUR 1,222 million (1,583). The Board has today approved a new dividend policy according to which total annual dividends paid will be at least 70 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.
If segment's profit before taxes rose to EUR 884 million (848). Underwriting performance continues on its excellent track. Insurance technical result amounted to EUR 685 million (643) and combined ratio for full-year 2019 was 84.5 per cent (85.2). Return on equity amounted to 34.5 per cent (11.2). Premiums grew strongly in all business areas in the Nordics amounting to 5.7 per cent with fixed currencies. If lowered the discount rate applied in Finland from 1.2 per cent to 0.95 per cent. This had a negative impact of EUR 62 million on the results. If paid a dividend of SEK 7.5 billion (EUR 710 million) to Sampo plc in December 2019.
Topdanmark had another strong year and segment's profit before taxes rose to EUR 238 million (199). Combined ratio amounted to 82.1 per cent (82.3). Topdanmark's Board of Directors proposes to the AGM of 2020 a dividend of DKK 17 per share. If approved Sampo plc's share of the dividend payment is EUR 96 million.
Sampo's share of Nordea's net profit for 2019 amounted to EUR 290 million (625). Nordea made encouraging progress in the fourth quarter of 2019 towards achieving its financial targets. In segment reporting the share of Nordea's profit is included in the segment 'Holding'. For 2019 Nordea targets a dividend of EUR 0.40 per share (0.69). If the AGM approves this, Sampo plc will receive a dividend of EUR 322 million (594).
Profit before taxes for segment Mandatum amounted to EUR 280 million (450). The profit for the comparison year includes a contribution of EUR 197 million from the Danske Bank co-operation agreement in the second quarter of 2018. Return on equity rose to 23.5 per cent (8.7). Mandatum Life's Board proposes a dividend of EUR 150 million to be paid to Sampo plc in the first quarter of 2020.
Sampo Group's solvency capital is as of October 2019 calculated according to the Solvency II rules. At the end of 2019 the solvency ratio stood at 167 per cent (140).

Key figures

EURm	2019	2018	Change, %	10–12/2019	10–12/2018	Change, %
Profit before taxes *)	1,541	2,094	-26	468	451	4
If	884	848	4	228	221	3
Topdanmark	238	199	20	58	29	102
Associates (Nordea & NDX Intressenter)	298	621	-52	143	97	47
Mandatum *)	280	450	-38	68	66	3
Holding (excl. Associates)	-159	-3	-	-29	38	-
Profit for the period **)	1,237	1,778	-30	389	381	2
			Change			Change
Earnings per share, EUR	2.04	3.04	-1.00	0.66	0.66	0
EPS (incl. change in FVR) EUR	2.63	1.70	0.93	1.19	-0.17	1.36
NAV per share, EUR	20.71	20.60	0.11	-	-	-
Average number of staff (FTE)	9,813	9,509	304	-	-	-
Group solvency ratio, %	167	140	27	-	-	-
RoE, %	12.0	7.5	4.5	-	-	-

*) the comparison year includes the contribution of EUR 197 million from the Danske Bank co-operation agreement in the second quarter of 2018.

**)of which non-controlling interests are EUR 107 million (91) for 2019 and EUR 26 million (14) for the fourth quarter of 2019.

The figures in this report are not audited. Income statement items are compared on a year-on-year basis whereas comparison figures for balance sheet items are from 31 December 2018 unless otherwise stated.

Exchange rates used in reporting

	1–12/2019	1–9/2019	1–6/2019	1–3/2019	1–12/2018
EURSEK
Income statement (average)	10.5853	10.5679	10.5181	10.4187	10.2583
Balance sheet (at end of period)	10.4468	10.6958	10.5633	10.3980	10.2548
DKKSEK
Income statement (average)	1.4183	1.4158	1.4090	1.3959	1.3764
Balance sheet (at end of period)	1.3982	1.4326	1.4153	1.3929	1.3733
NOKSEK
Income statement (average)	1.0749	1.0816	1.0810	1.0694	1.0688
Balance sheet (at end of period)	1.0591	1.0809	1.0897	1.0765	1.0308
EURDKK
Income statement (average)	7.4661	7.4644	7.4651	7.4637	7.4533
Balance sheet (at end of period)	7.4715	7.4662	7.4636	7.4652	7.4673

Group CEO's Comment

The insurance group Sampo had quite a challenging but successful year 2019. Despite the lower for longer interest rate environment and some headwinds in our banking associate Nordea, the Group performed well in most of its businesses. The Group's P&C insurance operations continued to show very high quality in underwriting. If P&C had a strong combination of premium growth and low combined ratios. Digital investments over several years together with very competitive cost levels supported this development. Sampo's other P&C operation, Topdanmark, also reported strong results. The company continued to invest in modern digital channels, and as usual with Topdanmark's underwriting abilities, I expect the Q4 challenges in the I/A business to be dealt with rapidly.

All our insurance operations, not least Mandatum Life, were helped by favourable development in the equity markets. Mandatum's unit-linked savings reached an all-time high as equity values appreciated substantially during 2019. At the same time the efforts to shrink the with-profit book bore fruit and the book is now almost EUR 300 million smaller than a year ago.

Sampo's associated company Nordea faced headwinds during the year in the difficult banking environment. The new management adopted revised financial targets in October 2019 and has already shown great determination to take tough decisions and work hard to develop towards those targets. The bank's fourth quarter 2019 results is the first encouraging step in this process.

As the new CEO I am looking optimistically at the coming period. Sampo will prosper through its underwriting focus, our in-depth knowledge about our markets and our strong balance sheet. I expect the operating environment to provide both challenges and opportunities and look forward to meeting these with enthusiasm and confidence.

Torbjörn Magnusson Group CEO and President

Fourth quarter 2019 in brief

Sampo Group's profit before taxes for the fourth quarter of 2019 amounted to EUR 468 million (451). Earnings per share was EUR 0.66 (0.66) and mark-to-market earnings per share EUR 1.19 (-0.17).

Net asset value per share increased EUR 1.81 during the fourth quarter of 2019 and amounted to EUR 20.71.

If's combined ratio for the fourth quarter of 2019 amounted to 85.0 per cent (83.5). Profit before taxes amounted to EUR 228 million (221). The discount rate applied in Finland was lowered from 1.2 per cent to 0.95 per cent with a negative impact of EUR 62 million on the results.

Topdanmark's combined ratio for the fourth quarter was 87.1 per cent (81.1) and profit before taxes EUR 58 million (29).

Sampo's share of Nordea's fourth quarter 2019 net profit was EUR 143 million (98) and EUR 0 million (-1) of NDX Intressenter's profit in the same period of time.

Profit before taxes for Mandatum amounted to EUR 68 million (66). Premiums written grew to EUR 772 million (394). A significant part of the growth was due to one-off items caused by changes in tax treatment of life insurance products.

Business areas

If

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

Results
EURm	2019	2018	Change, %	10–12/2019	10–12/2018	Change, %
Premiums, net	4,475	4,325	3	945	896	5
Net income from investments	229	229	0	71	47	50
Other operating income	33	30	13	7	8	-11
Claims incurred	-2,751	-2,716	1	-691	-657	5
Change in insurance liabilities	-87	-35	147	163	186	-12
Staff costs	-558	-529	6	-143	-128	12
Other operating expenses	-443	-445	-1	-120	-129	-7
Finance costs	-16	-15	7	-4	-4	11
Share of associates' profit/ loss	1	4	-87	1	1	-62
Profit before taxes	884	848	4	228	221	3

Key figures			Change			Change
Combined ratio, %	84.5	85.2	-0.7	85.0	83.5	1.5
Risk ratio, %	62.7	63.3	-0.6	62.4	60.8	1.6
Cost ratio, %	21.8	21.9	-0.1	22.6	22.8	-0.2
Expense ratio, %	16.1	16.4	-0.3	16.5	17.1	-0.6
Return on equity, %	34.5	11.2	23.3	-	-	-
Average number of staff (FTE)	6,865	6,603	262	-	-	-

Profit before taxes for 2019 for the If segment was EUR 884 million (848). Combined ratio amounted to 84.5 per cent (85.2) and risk ratio to 62.7 per cent (63.3).

In 2019 EUR 190 million (173) was released from technical reserves relating to prior year claims. Return on equity increased to 34.5 per cent (11.2) and the fair value reserve on 31 December 2019 amounted to EUR 457 million (234).

Technical result was EUR 685 million (643). Insurance margin (technical result in relation to net premiums earned) rose to 15.9 per cent (15.1).

	Combined ratio,%			Risk ratio,%
	2019	2018	Change	2019	2018	Change
Private	82.0	83.7	-1.7	60.3	61.8	-1.5
Commercial	88.3	86.9	1.4	65.9	64.4	1.5
Industrial	89.3	92.3	-3	69.8	71.2	-1.4
Baltic	87.0	88.8	-1.8	58.4	60.0	-1.6

Sweden	76.5	79.7	-3.2	57.3	60.5	-3.2
Norway	88.4	85.7	2.7	66.7	63.1	3.6
Finland	87.4	88.6	-1.2	64.7	66.2	-1.5
Denmark	94.1	98.1	-4.0	66.0	69.0	-3

	Combined ratio,%			Risk ratio,%
	10–12/2019 10–12/2018 Change			10–12/2019 10–12/2018 Change
Private	83.0	83.0	0	60.1	59.9	-0.2
Commercial	88.8	83.2	5.6	66.8	59.9	6.9
Industrial	87.7	90.9	-3.2	66.5	69.0	-2.5
Baltic	84.6	90.1	-5.5	54.8	59.6	-4.8

Sweden	74.4	81.8	-7.4	53.9	60.9	-7
Norway	86.0	81.4	4.6	64.0	58.1	5.9
Finland	93.2	87.8	5.4	70.5	65.5	5
Denmark	102.7	90.2	12.5	72.2	58.6	13.6

Large claims for If were EUR 4 million (29) worse than expected for the full-year 2019. In BA Industrial they were EUR 8 million better and in BA Commercial EUR 13 million worse than expected in 2019. In the fourth quarter of 2019 the large claims were EUR 13 million better than expected.

The Swedish discount rate used to discount the annuity reserves was -0.77 per cent (-0.41) at the end of 2019 and had a negative effect on the full-year results of EUR 22 million. The impact on fourth quarter results was EUR 17 million positive. In Finland the discount rate for annuities was lowered from 1.2 per cent to 0.95 during the fourth quarter which had a negative effect of EUR 62 million on the results.

Gross written premiums amounted to EUR 4,675 million (4,502) in 2019. With fixed currency rates premiums grew 5.7 per cent in January – December 2019 and during the fourth quarter premium growth accelerated to 8.5 per cent. All business areas had growth. The growth was highest in the BA Industrial at, 16.5 per cent. In BA Private the premium growth amounted to 5.1 per cent and in BA Commercial 2.8 per cent. Gross written premiums grew by 5.1 per cent in Sweden, 9.5 per cent in Norway, 2.2 per cent in Finland and 5.0 per cent in Denmark. Positive customer development continued in all business areas in 2019, the customer base in BA Private increased by 2 per cent.

The cost ratio was 21.8 per cent (21.9) and expense ratio 16.1 per cent (16.4).

On 31 December 2019, the total investment assets of If amounted to EUR 10.8 billion (10.9), of which fixed income investments constituted 86 per cent (88), money market 2 per cent (2) and equity 12 per cent (10). Net income from investments amounted to EUR 229 million (229). Investment return marked-to-market for the full-year 2019 was 5.0 per cent (-0.8). Duration for interest bearing assets was 1.3 years (1.4) and average maturity 2.8 years (2.7). Fixed income running yield without taking into account the FX hedging cost as at 31 December 2019 was 1.8 per cent (1.7).

If's solvency position is described in the section Solvency.

Topdanmark

Topdanmark is the second largest non-life insurance company and a major life insurance company in Denmark. The company is listed on Nasdaq Copenhagen. In non-life insurance, Topdanmark has a 17 per cent market share. Topdanmark focuses on the private, agricultural and SME market. The company has around 620,000 customers and handles around 300,000 claims a year. In life insurance, Topdanmark has a 10 per cent market share in Denmark.

Results
EURm	2019	2018	Change, %	10-12/2019	10-12/2018	Change, %
Premiums, net	2,677	2,509	7	608	601	1
Net income from investments	1,037	-280	-	191	-492	-
Other operating income	3	3	-17	1	1	-41
Claims incurred	-1,223	-1,198	2	-316	-298	6
Change in insurance liabilities	-1,864	-458	307	-321	313	-
Staff costs	-272	-269	1	-69	-69	0
Other operating expenses	-131	-119	10	-46	-38	22
Finance costs	-10	-11	-4	-3	-2	19
Share of associates' profit/ loss	22	22	2	13	13	-1
Profit before taxes	238	199	20	58	29	102

Key figures			Change			Change
Combined ratio, %	82.1	82.3	-0.2	87.1	81.1	6.0
Loss ratio, %	66.2	66.0	0.2	70.3	63.6	6.7
Expense ratio, %	16.0	16.3	-0.3	16.8	17.6	-0.8
Average number of staff (FTE)	2,322	2,314	8	-	-	-

At the end of 2019 Sampo plc held 41,997,070 Topdanmark shares, corresponding to 46.7 per cent of all shares and 48.2 per cent of related voting rights in the company. The market value of the holding was EUR 1,846 million on 31 December 2019.

The Board of Directors recommends to the AGM of 2020 a dividend of DKK 1,530 million (EUR 205 million), i.e. DKK 17 per share. If the AGM approves the proposal, Sampo plc's share of the dividend payment is EUR 96 million.

Topdanmark's profit before taxes for 2019 increased in Sampo Group's profit and loss account to EUR 238 million (199). The combined ratio amounted to 82.1 per cent (82.3) in 2019. The expense ratio was 16.0 per cent (16.3).

The following text is based on Topdanmark's full-year 2019 result release published on 23 January 2020.

In non-life insurance, result was positively impacted by higher run-off profit and an improved claims trend in the SME and the agricultural business. On the other hand, the result from illness and accident and lower yield curve had a negative impact on results. In the life insurance, result was impacted positively by improved investment returns.

Topdanmark's premium income increased by 2.9 per cent in non-life insurance and by 9.8 per cent in life insurance.

In non-life insurance, the run-off profit of EUR 58 was primarily generated in motor third-party liability, in workers' compensation, and in illness and accident. Weather-related claims were EUR 13 million below normal level and amounted to EUR 10 million. Large claims were EUR 6 million below normal level and amounted to EUR 7 million.

Topdanmark's solvency position is described in the section Solvency.

Further information on Topdanmark A/S and its January-December 2019 result is available at www.topdanmark.com.

Associated company Nordea

Nordea is the largest bank in the Nordic region and among the ten largest financial groups in Europe in terms of total market capitalization with around 11 million customers. Nordea's shares are listed on the Nasdaq exchanges in Stockholm, Helsinki and Copenhagen. In Sampo Group's reporting Nordea is treated as an associated company and is included in the segment Holding.

On 31 December 2019 Sampo plc held 804,922,858 Nordea shares corresponding to a holding of 19.87 per cent. The average price paid per share amounted to EUR 6.46 and the book value in the Group accounts was EUR 8.34 per share. The closing price as at 31 December 2019 was EUR 7.24.

Nordea targets a dividend of EUR 0.40 per share (0.69) for 2019. Sampo plc's share amounts to EUR 322 million (594) if approved by the AGM.

Sampo's share of Nordea's 2019 profit before taxes amounted to EUR 290 million (625).

Mandatum Life

Mandatum Life Group comprises Mandatum Life Insurance Company Ltd., a wholly-owned subsidiary of Sampo plc, operating in Finland, Estonia, Latvia and Lithuania, and its subsidiaries. The parent company, Mandatum Life, is responsible for sales functions and all the functions required by the Insurance Companies Act. The operating subsidiaries are Mandatum Life Services Ltd, Mandatum Life Investment Services Ltd. and Mandatum Life Fund Management S.A.

Results
EURm	2019	2018	Change, %	10–12/2019	10–12/2018	Change, %
Premiums written	1,596	1,074	49	772	394	96
Net income from investments	1,267	-26	-	307	-353	-187
Other operating income	23	212	-89	8	3	176
Claims incurred	-1,492	-1,116	34	-644	-268	140
Change in liabilities contracts	-971	426	-	-335	313	-
Staff costs	-52	-46	13	-13	-10	33
Other operating expenses	-81	-67	21	-22	-11	103
Finance costs	-9	-7	24	-4	-2	119
Profit before taxes	280	450	-38	68	66	3

Key figures			Change			Change
Expense ratio, %	98.7	92.1	6.6	-	-	-
Return on equity, %	23.5	8.7	14.8	-	-	-
Average number of staff (FTE)	563	531	32	-	-	-

Profit before taxes for Mandatum Life in 2019 amounted to EUR 280 million (450). The comparison figure includes the contribution of EUR 197 million from the Danske Bank co-operation agreement in the second quarter of 2018. The total comprehensive income for the period after tax reflecting the changes in market values of assets, increased to EUR 308 million (112). Return on equity amounted to 23.5 per cent (8.7).

Premium income on own account increased to EUR 1,596 million (1,074). Premiums from unit-linked policies increased to EUR 1,476 million (976). Claims incurred increased to EUR 1,492 million (1,116). Both premium income and claims paid include around EUR 400 million one-off items caused by changes in the tax treatment of life insurance products.

Net investment income, excluding income on unit-linked contracts, increased to EUR 358 million (232). Net income from unit-linked contracts was EUR 908 million (-259). During 2019 the fair value reserve increased to EUR 438 million (352).

The expense result decreased to EUR 24 million (35). The risk result increased to EUR 35 million (33).

The total technical reserves of Mandatum Life Group were EUR 12.0 billion (11.2). The unit-linked reserves exceeded EUR 8 billion for the first time and were EUR 8.1 billion (7.0) at the end of 2019. Unit-linked reserves corresponded to 67 per cent (62) of total technical reserves.

With-profit reserves decreased as planned during 2019 and amounted to EUR 3.9 billion (4.2) on 31 December 2019. With-profit reserves related to the higher guarantees of 4.5 and 3.5 per cent decreased by EUR 264 million to EUR 2.2 billion at the end of 2019.

Mandatum Life has overall supplemented its technical reserves with a total of EUR 230 million (232), of which EUR 189 million is allocated to years 2020 – 2022. The figure does not take into account the reserves relating to the segregated fund. The discount rate used for 2020 and 2021 is 0.25 per cent. In the fourth quarter of 2019, the rate used for 2022 was lowered from 2.50 per cent to 1.25 per cent.

Discount rate of segregated liabilities was decreased from 0.50 per cent to 0.0 per cent and discount rate reserve of segregated liabilities amounted to EUR 263 million (250).

At the end of 2019 Mandatum Life Group's investment assets, excluding the assets of EUR 8.2 billion (7.0) covering unit-linked liabilities, amounted to EUR 5.7 billion (5.6) at market values.

Mandatum Life's solvency position is described in the section Solvency.

Holding

Sampo plc owns and controls its subsidiaries engaged in P&C and life insurance. In addition, Sampo plc held on 31 December 2019 approximately 19.9 per cent of the share capital of Nordea, the largest bank in the Nordic countries. Nordea is an associated company to Sampo plc. As of March 2018 Sampo plc has also treated NDX Intressenter AB, of which Sampo plc owns 36.25 per cent, as an associate. The company was established for the takeover of Nordax Group AB.

Results
EURm	2019	2018	Change, %	10–12/2019	10–12/2018	Change, %
Net investment income	-2	2	-	4	19	-82
Other operating income	16	17	-5	4	5	-9
Staff costs	-15	-11	38	-5	0	-
Other operating expenses	-13	-14	-10	-4	-4	-4
Finance costs	10	3	232	-28	19	-
Share of associates' profit	298	621	-52	143	97	47
Valuation loss on distribution of Nordea shares	-155	-	-	-	-	-
Profit before taxes	139	618	-77	113	135	-16

Key figures			Change			Change
Average number of staff (FTE)	63	61	2	-	-	-

Holding segment's profit before taxes for January - December 2019 amounted to EUR 139 million (618), which includes EUR 155 million loss incurred when distributing Nordea shares as dividends in the third quarter of 2019. Sampo's share of profits of associated companies Nordea and NDX Intressenter for January – December 2019 amounted to EUR 298 million (621) of which Nordea's share was EUR 290 million (625) and NDX Intressenter's EUR 8 million (-4). Nordea's result in the third quarter of 2019 was impacted by one-off items amounting to EUR 1.3 billion.

The segment's profit before taxes excluding the associates for January – December 2019 was EUR -159 million (-3).

Changes in market values of derivative instruments and currency exchange rates can cause volatility in the net investment income and finance cost lines.

Sampo plc's holding in Nordea was booked in the consolidated balance sheet at EUR 6.7 billion, i.e. EUR 8.34 per share. The market value of the holding was EUR 5.8 billion, i.e. EUR 7.24 per share, on 31 December 2019.

Other developments

Changes in the Group structure

If P&C Insurance Holding Ltd (publ) signed on 28 November 2019 an agreement to buy Viking Redningstjeneste TOPCO A/S. The acquisition price for 100 per cent ownership was EUR 32 million (NOK 325 million) which was paid in cash. The enterprise value amounted to EUR 114 million.

Viking is a Nordic roadside assistance company headquartered in Norway. It serves its customers through an extensive nationwide network of stations in Norway, Sweden, Denmark and Finland. The acquisition of Viking will strengthen If's offering towards its partners and further improve If's position as the leading Nordic insurance and service provider within the mobility area.

With this strategic acquisition If strengthens its position in the Nordics by providing more comprehensive service for its insurance customers and partners such as carmakers. The financial effect of the acquisition on Sampo Group is not expected to be significant.

The transaction was subject to approval by competition authorities in Norway and Sweden which were received in early January 2020 and the transaction was completed.

Changes in Group Management

On 6 November 2019 Ricard Wennerklint, 50, was appointed Chief of Strategy in Sampo Group as of 1 January 2020. He has held various positions in Sampo Group since 2002 and been a member of the Sampo Group Executive Committee since 2005.

Personnel

The average number of Sampo Group's employees (FTE) in 2019 amounted to 9,813 (9,509).

If is Sampo Group's largest business area and employed on average 70 per cent of the personnel. Topdanmark employed 24 per cent and Mandatum Life approximately 6 per cent of the personnel. The parent company Sampo plc employed 1 per cent of the work force.

In geographical terms Denmark had 30 per cent of the personnel, Finland 23 per cent, Sweden 23 per cent and Norway 14 per cent. The share of other countries was 10 per cent.

The total number of staff in If increased 4 per cent. As of 31 December 2019 If employed 6,925 persons.

Topdanmark employed 2,366 persons at the end of the year and the total number of staff increased 2 per cent.

The total number of staff in Mandatum Life increased 8 per cent. As of 31 December 2019 Mandatum Life employed 573 persons.

Sampo plc had 64 employees (61) at the end of 2019.

At the end of the year, the total number of staff in Sampo Group totaled 9,927 persons.

More detailed information on personnel in Sampo Group is available in Sampo Group Corporate Responsibility Report 2019 to be published in May 2020 at www.sampo.com/year2019.

Remuneration

In 2019 EUR 18 million (23), including social cost, was paid on the basis of the long-term incentive schemes. EUR 40 million (36), including social costs, was paid as short-term incentives during the same period. The result impact of the long-term incentive schemes in force in 2019 was EUR 12 million (5).

Sampo Group will publish in March 2020 the Remuneration Report 2019 at www.sampo.com/year2019. The Remuneration Report 2019 is part of the Remuneration Statement, which is available at www.sampo.com/ remunerationstatement. The statement has been prepared in accordance with the Corporate Governance Code 2015 issued by the Securities Market Association and effective as of 1 January 2016. The Remuneration Report prepared in accordance with the new Corporate Governance Code 2020, approved by the Securities Market Association on 19 September 2019, effective from 1 January 2020 has to be published first time for the financial year starting on 1 January 2020.

Shares and shareholders

The Annual General Meeting authorized the Board to repurchase a maximum of 50,000,000 Sampo A shares. The price paid for the shares repurchased under the authorization shall be based on the current market price of Sampo A shares on the securities market. The authorization will be valid until the close of the next Annual General Meeting, nevertheless not more than 18 months after AGM's decision.

Sampo plc made no repurchases during 2019 and has not purchased its own shares after the end of the reporting period.

Internal dividends

Sampo plc, Sampo Group's parent company, received more than EUR 1.5 billion in dividends from its subsidiaries and associated company Nordea during 2019. The following dividend payments were received:

Mandatum Life; EUR 150 million in March 2019,
Nordea; EUR 594 million in April 2019,
Topdanmark; EUR 84 million in April 2019 and
If; SEK 7.5 billion (EUR 710 million) in December 2019

Nordea targets a dividend of EUR 0.40 per share for 2019. Sampo plc's share amounts to EUR 322 million if approved by the AGM on 25 March 2020.

Topdanmark's Board of Directors proposed to the Annual General Meeting of 2 April 2020 a dividend of DKK 17 per share. If the AGM approves the proposal, Sampo's share of the Topdanmark's total dividend amounts to EUR 96 million.

Mandatum Life's Board proposes a dividend of EUR 150 million to be paid to Sampo plc in the first quarter of 2020. If normally pays its dividend towards the end of the calendar year.

Ratings

Relevant ratings for Sampo Group companies on 31 December 2019 are presented in the table below.

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

Group solvency

Sampo's capital requirement on Nordea holding increased more than EUR 800 million during the first half of 2019 although the underlying risks for Sampo's holding in Nordea did not change. Sampo took active measures to counter the negative impact by issuing EUR 500 million of hybrid capital in May 2019. More importantly, the Board received from the AGM in April 2019 an authorization to distribute an extra dividend either in cash and/or in financial instruments held by Sampo plc and announced on 13 June 2019 that it planned to resolve on the distribution of an extra dividend in the form of Nordea shares in its meeting scheduled 7 August 2019.

On 7 August 2019 Sampo Board made the formal decision to distribute a total of 55,517,639 shares of Nordea Bank Abp as an extra dividend. As a result of the dividend, Sampo's ownership in Nordea decreased below 20 per cent.

Hence, the conglomerate rules (FICO) solvency calculation was terminated by a formal approval by the Finnish FSA received on 21 October 2019. After the approval Sampo Group calculates its group solvency only under the Solvency II rules and Nordea is treated as an equity investment. Sampo Group's solvency ratio according to the Solvency II directive amounted to 167 per cent (140) at the end of December 2019. The proposed dividend has been deducted from own funds in the Solvency II calculation.

The consolidation of Nordea as an associated company in Sampo Group's Financial Statements (IFRS) will remain unchanged.

Solvency position in the subsidiaries

The insurance subsidiaries apply Solvency II rules in their regulatory solvency calculations. If Group companies use either partial internal models or standard model for calculation of their solo solvency position. Mandatum Life reports in accordance with standard formula for Solvency II. Topdanmark uses a partial internal model to report its stand-alone solvency position.

If Group has an A+ rating from S&P which will continue to require significantly more capital than the standard formula and therefore the use of standard formula has no practical implications on If Group's capital position. On 31 December 2019 If Group's Solvency II capital requirement under standard formula amounted to EUR 1,890 million (1,833) and own funds to EUR 3,592 million (3,599). The solvency ratio amounted to 190 per cent (196).

The S&P A+ rating capital requirement for If Group amounted to EUR 3,083 million (2,949) on 31 December

2019 and the capital base was EUR 3,151 million (3,149).

Topdanmark calculates most of its non-life and health risks and their respective solvency capital requirement by a partial internal model approved by the DFSA. Other risks are calculated by Solvency II SCR standard formula. Topdanmark's solvency ratio under the partial internal model was 177 per cent (196) at the end of December 2019.

Mandatum Life's solvency ratio after transitional measures amounted to 176 per cent (176) on 31 December 2019. Own funds were EUR 2,117 million (1,740) and Solvency Capital Requirement (SCR) was EUR 1,204 million (990). The increase in own funds is mainly due to the Tier 2 issue of EUR 250 million in September 2019 and the positive equity market development during the reporting year. SCR grew because of increased market risk due to positive equity market development, a change in the symmetrical adjustment and changes in contract boundary interpretations applied in calculating technical provisions. Without transitional measures, own funds would have amounted to EUR 1,756 million (1,348) and the solvency capital requirement to EUR 1,234 million (1,030) leading to a solvency ratio of 142 per cent (131).

Debt financing

Sampo plc's debt financing on 31 December 2019 amounted to EUR 3,908 million (4,067) and interest bearing assets to EUR 1,725 million (1,959). Interest bearing assets include bank accounts, fixed income instruments and EUR 359 million (489) of hybrid capital and subordinated debt instruments issued by the subsidiaries and associated companies.

At the end of 2019 the interest bearing net debt of Sampo plc amounted to EUR 2,183 million (2,108). The net debt calculation takes into account interest bearing assets and liabilities. Gross debt to Sampo plc's equity was 51 per cent (52) and financial leverage 34 per cent (34).

On 23 May 2019 Sampo plc issued 30NC10 Fixed/Floating rate subordinated notes of EUR 500 million due 23 May 2049.

On 24 May 2019 Sampo plc repaid EUR 500 million senior notes maturing on that date.

On 26 September 2019 Mandatum Life issued 30NC5 Tier 2 notes of EUR 250 million due 4 October 2049.

On 31 December 2019 financial liabilities in Sampo plc's balance sheet consisted of issued senior bonds and notes of EUR 3,414 million (3,943). In addition Sampo plc has issued subordinated notes of EUR 494 million. No CPs were outstanding (124). The average interest, net of interest rate swaps, on Sampo plc's debt as of 31 December 2019 was 1.2 per cent (0.8).

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

Outlook

Outlook for 2020

Sampo Group's business areas are expected to report good operating results for 2020.

However, the marked-to-market results are, particularly in life insurance, highly dependent on capital market developments. The continuing low interest rate level also creates a challenging environment for reinvestment in fixed income instruments.

If P&C is expected to reach a combined ratio of 85 – 89 per cent in 2020.

With regard to Topdanmark reference is made to the profit forecast model that the company publishes quarterly.

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

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

In its current day-to-day business activities Sampo Group is exposed to various risks and uncertainties mainly through its separately managed major business units.

Major risks affecting the Group companies' profitability and its variation are market, credit, insurance and operational risks that are quantified independently by the major business units. At the group level sources of risks are the same, but they are not directly additive because of diversification effects.

Uncertainties in the form of major unforeseen events may have an immediate impact on the Group's profitability. Identification of unforeseen events is easier than estimation of their probabilities, timing and potential outcomes. Currently there are a number of widely identified macro-economic, political and other sources of uncertainty which can, in various ways, affect the financial services industry negatively. In particular the political risks are at an elevated level at the moment.

Other sources of uncertainty are unforeseen structural changes in the business environment and already identified trends and potential wide-impact events. These external drivers may have long-term impacts on how business shall be conducted. Examples of already identified trends are technological development in areas such as artificial intelligence and digitalization, demographic changes and sustainability issues that may have profound effects on financial sector companies as well.

Dividends

The new dividend policy

Sampo has for several years had the ambition of annually increasing its nominal dividend per share. On 24 October 2019 Sampo management, however, concluded that in the present operating environment and with government bond yields expected to remain negative for some time to come, an increase in the dividend would not best serve the company or its shareholders. This view was further reinforced by a change in Nordea's dividend policy announced earlier on the same day.

Sampo plc's Board of Directors has today approved a new dividend policy according to which total annual dividends paid will be at least 70 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.

Dividend proposal

The parent company's distributable capital and reserves totalled EUR 7,383,547,646.18 of which profit for the financial year was EUR 1,489,678,098.42.

The Board proposes to the Annual General Meeting a dividend of EUR 2.20 per share to company's 555,351,850 shares. The dividends to be paid are EUR 1,221,774,070.00 in total. The remainder 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 27 April 2020. The Board proposes that the dividend be paid on 5 May 2020.

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

Information

For more information, please contact

Knut Arne Alsaker, Group CFO, tel. +358 10 516 0010

Jarmo Salonen, Head of Investor Relations and Group Communications, tel. +358 10 516 0030

Maria Silander, Communications Manager, Media Relations, tel. +358 10 516 0031

Press conference

A press conference will be held in English on 6 February at 12:30 pm Finnish time (10:30 am UK time) at Symposion, Kämp, (2nd floor), Pohjoisesplanadi 29, Helsinki.

The press conference can be followed as a live webcast at www.sampo.com/result. A recorded version will later be available at the same address.

Conference call

An English-language conference call for investors and analysts will be arranged at 4 pm Finnish time (2 pm UK time). Please call tel. +1 855 857 0686, +44 333 300 0804, +46 856 642 651, or +358 981 710 310. The conference code is 75249242#.

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

In addition, the Supplementary Financial Information Package is available at www.sampo.com/result.

Sampo will publish the Interim Statement for January - March 2020 on 6 May 2020.

Distribution:

Nasdaq Helsinki London Stock Exchange The principal media Financial Supervisory Authority www.sampo.com

Group financial review >

Financial highlights
GROUP		1–12/2019	1–12/2018
Profit before taxes	EURm	1,541	2,094
Return on equity (at fair value)	%	12.0	7.5
Return on assets (at fair value)	%	5.5	3.2
Equity/assets ratio	%	23.0	25.1
Group solvency ¹)	EURm	4,079	2,942
Group solvency ratio ¹)	%	167	140
Average number of staff		9,813	9,509
IF
Premiums written before reinsurers' share	EURm	4,675	4,502
Premiums earned	EURm	4,388	4,290
Profit before taxes	EURm	884	848
Return on equity (at current value)	%	34.5	11.2
Risk ratio ²)	%	62.7	63.3
Cost ratio ²)	%	21.8	21.9
Loss ratio ²)	%	68.4	68.8
Expense ratio ²)	%	16.1	16.4
Combined ratio ²)	%	84.5	85.2
Average number of staff		6,865	6,603

TOPDANMARK
Premiums written before reinsurers' share, life insurance	EURm	1,487	1,357
Premiums written before reinsurers' share, P&C insurance	EURm	1,272	1,235
Premiums earned, P&C insurance	EURm	1,178	1,144
Profit before taxes	EURm	238	199
Loss ratio ²)	%	66.2	66.0
Expense ratio ²)	%	16.0	16.3
Combined ratio	%	82.1	82.3
Average number of staff		2,322	2,314
MANDATUM
Premiums written before reinsurers' share	EURm	1,603	1,082
Profit before taxes	EURm	280	450
Return on equity (at current value)	%	23.5	8.7
Expense ratio	%	98.7	92.1
Average number of staff		563	531

> Group financial review

HOLDING		1–12/2019	1–12/2018
Profit before taxes	EURm	139	618
Average number of staff		63	61

PER SHARE KEY FIGURES
Earnings per share	EUR	2.04	3.04
Earnings per share, incl. other comprehensive income	EUR	2.63	1.70
Equity per share	EUR	21.44	22.30
Net asset value per share	EUR	20.71	20.60
Adjusted share price, high	EUR	43.38	48.92
Adjusted share price, low	EUR	34.45	37.61
Market capitalisation	EURm	21,609	21,331

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

²) The key figures for P&C Insurance are based on activity based costs and cannot, therefore, be calculated directly from the consolidated income statement. The result analysis of If is presented in note 16.

The number of shares used at the balance sheet date and as the average number during the financial period was 555,351,850.

The valuation differences on investment property have been taken into account in calculating the return on assets, return on equity, equity/assets ratio and net asset value per share.

The tax component includes the tax corresponding to the result for the period, and the deferred tax liability related to valuation differences on investment property.

The total comprehensive income has been used in the calculation of the return on assets and return on equity.

The key figures for the insurance business have been calculated in accordance with the decree issued by the Ministry of Finance and the specifying regulations and instructions of the Finance Supervisory Authority.

Calculation of key figures

Return on equity (fair values), % + total comprehensive income valuation differences on investments less deferred tax x 100 % + total equity valuation differences on investments less deferred tax (average of values 1 Jan. and the end of reporting period) 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 x 100 % + balance sheet, total – technical provisions relating to unit-linked insurance valuation differences on investments (average of values on 1 Jan. and the end of the reporting period) Equity/assets ratio (at fair values), % + total equity valuation differences on investments after deduction of deferred tax x 100 % ⁺ balance sheet total valuation differences on investments Risk ratio for P&C insurance, % + claims incurred – claims settlement expenses x 100 % insurance premiums earned Cost ratio for P&C insurance, % + operating expenses ⁺ claims settlement expenses x 100 % insurance premiums earned Loss ratio for P&C insurance, % claims incurred x 100 % insurance premiums earned Expense ratio for P&C insurance, % operating expenses x 100 % insurance premiums earned Combined ratio for P&C insurance, % Loss ratio + expense ratio Expense ratio for life insurance, % + operating expenses before change in deferred acquisition costs ⁺ claims settlement expenses x 100 % expense charges

Per share key figures

Earnings per share

profit for the financial period attributable to the parent company's equity holders adjusted average number of shares

Equity per share

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

Net asset value per share

- equity attributable to the parent company's equity holders
valuation differences on listed associates in the Group
valuation differences after the deduction of deferred taxes
adjusted number of shares at balance sheet date

Market capitalization

number of shares at the balance sheet date x closing share price at the balance sheet date

Group quarterly comprehensive income statement

EURm	10–12/2019	7–9/2019	4–6/2019	1–3/2019	10–12/2018
Insurance premiums written	2,325	1,845	1,898	2,680	1,891
Net income from investments	568	438	422	1,087	-779

Other operating income	18	15	18	8	12
Claims incurred	-1,652	-1,256	-1,277	-1,282	-1,223
Change in liabilities for insurance and	-491	-336	-312	-1,780	808
investment contracts
Staff costs	-230	-207	-231	-229	-207
Other operating expenses	-190	-168	-169	-125	-177
Finance costs	-36	-14	7	30	14
Share of associates' profit/loss	157	-70	149	85	112
Valuation loss on dividend distribution of associate shares	-	-155	-	-	-
Profit for the period before taxes	468	92	506	475	451

Taxes	-78	-70	-78	-78	-70
Profit for the period	389	22	428	398	381
Other comprehensive income for the period
Items reclassifiable to profit or loss
Exchange differences on translating foreign operations	79	-64	-34	-20	-15
Available-for-sale financial assets	240	-47	109	264	-552
Share of other comprehensive income of associates	44	-29	-29	-17	-35
Taxes	-51	10	-25	-58	118
Total items reclassifiable to profit or loss, net of tax	312	-130	21	170	-484

Items not reclassifiable to profit or loss
Actuarial gains and losses from defined pension plans	-19	-11	-20	-8	-7
Taxes	4	2	4	2	2
Total items not reclassifiable to profit or loss, net of tax	-15	-8	-16	-6	-6

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	686	-116	434	561	-108
Profit attributable to
Owners of the parent	363	6	404	358	367
Non-controlling interests	26	16	24	40	14
Total comprehensive income attributable to
Owners of the parent	660	-133	410	521	-122
Non-controlling interests	26	16	24	40	14

Statement of profit and other comprehensive income, IFRS

EURm	Note	1–12/2019	1–12/2018

Insurance premiums written		8,749	7,907
Net income from investments	1	2,515	-104
Other operating income	2	60	244
Claims incurred		-5,466	-5,015
Change in liabilities for insurance and investment contracts	3	-2,919	-85
Staff costs		-897	-855
Other operating expenses	4	-653	-627
Finance costs		-13	-18
Share of associates' profit/loss		321	647
- Valuation loss on dividend distribution of associate shares		-155	-
Profit before taxes		1,541	2,094
Taxes		-304	-317
Profit for the period		1,237	1,778

Other comprehensive income for the period
Items reclassifiable to profit or loss
Exchange differences		-39	-97
Available-for-sale financial assets		566	-739
Share of other comprehensive income of associates		-30	-61
Taxes		-123	159
Total items reclassifiable to profit or loss, net of tax		373	-739
Items not reclassifiable to profit or loss
Actuarial gains and losses from defined pension plans		-58	-6
Taxes		13	1
Total items not reclassifiable to profit or loss, net of tax		-45	-5
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD		1,565	1,034
Profit attributable to
Owners of the parent		1,130	1,687
Non-controlling interests		107	91

Total comprehensive income attributable to
Owners of the parent		1,458	943
Non-controlling interests		107	91
Basic earnings per share (EUR)		2.04	3.04

Consolidated balance sheet, IFRS

EURm	Note	12/2019	12/2018

Assets
Property, plant and equipment		302	162
Investment property		679	665
Intangible assets	5	2,151	2,143
Investments in associates		7,217	8,065
Financial assets	6, 7, 8, 9, 10	23,443	22,693
Investments related to unit-linked insurance contracts	11	12,975	10,671
Tax assets		19	24
Reinsurers' share of insurance liabilities		289	294
Other assets		2,185	2,263
Cash and cash equivalents		2,677	2,361
Total assets		51,939	49,340

Liabilities
Liabilities for insurance and investment contracts	12	18,041	18,415
Liabilities for unit-linked insurance and investment contracts	13	14,368	11,390
Subordinated debt		1,202	464
Other financial liabilities	14	3,592	4,247
Tax liabilities		587	487
Provisions		20	18
Employee benefits		99	51
Other liabilities		1,489	1,254
Total liabilities		39,396	36,326

Equity Share capital		98	98
Reserves		1,530	1,530
Retained earnings		10,062	10,944
Other components of equity		217	-186
Equity attributable to parent company's equity holders		11,908	12,386
Non-controlling interests		635	628

Total equity		12,542	13,014
Total equity and liabilities		51,939	49,340

Statement of changes in equity, IFRS

			Invested unrestricted	Retained earnings	Translation of foreign operations	Available for-sale financial assets		Non controlling
EURm	Share capital	Legal reserve	equity	1)	2)	3)	Total	interest	Total
Equity at 1 Jan. 2018	98	4	1,527	10,692	-656	1,184	12,848	660	13,508
Changes in equity
Dividends				-1,444			-1,444	-112	-1,556
Share-based payments				8			8	9	17
Share of associate's other changes in equity				31			31		31
Other changes in equity							-	-20	-20
Profit for the period				1,687			1,687	91	1,778
Other comprehensive income for the period				-31	-124	-590	-744		-744
Equity at 31 December 2018	98	4	1,527	10,944	-780	594	12,386	628	13,014
Changes in equity
Dividends				-1,583			-1,583	-90	-1,672
Extra dividends in Nordea shares				-319			-319		-319
Share-based payments				1			1		1
Share of associate's other changes in equity				-43			-43		-43
Other changes in equity				8			8	-10	-2
Profit for the period				1,130			1,130	107	1,237
Other comprehensive income for the period				-75	-37	440	328		328
Equity at 31 December 2019	98	4	1,527	10,062	-817	1,034	11,908	635	12,542

1) IAS 19 Pension benefits had a net effect of EURm -90 (-34) on retained earnings.

2) The total comprehensive income includes also the share of the associate Nordea's other comprehensive income, in accordance with the Group's share holding. The retained earnings thus include EURm -30 (-26) of Nordea's items not reclassifiable to profit or loss. The exchange differences include the share of Nordea's exchange differences EURm 3 (-26). Respectively, available-for-sale financial assets include EURm -3 (-10) of Nordea's valuation differences on assets at fair value through p/l. Nordea adopted the new IFRS 9 Financial instruments standard from 1 January 2018 on.

3) The amount recognised in equity from available-for-sale financial assets for the period totalled EURm 718 (-409). The amount transferred to p/l amounted to EURm -255 (-192). EURm -21 (-20) was transferred to the Segregated Suomi portfolio.

The amount included in the translation, available-for-sale, cash flow hedge reserves and defined benefit plans represent other comprehensive income for each component, net of tax.

Statement of cash flows, IFRS

EURm	1–12/2019	1–12/2018

Cash and cash equivalent at the beginning of the period	2,361	2,734
Cash flow from/used in operating activities	1,525	-208
Cash flow from/used in investing activities	530	406
Cash flow from/used in financing activities	-1,739	-571
Dividends paid	-1,588	-1,444
Increase of liabilities	496	1,482
Decrease of liabilities	-647	-609
Cash and cash equivalent at the end of the period	2,677	2,361

The cash flow statement reports cash flows during the period classified by operating, investing and financing activities. Cash flows from operating activities derive primarily from the principal revenueproducing activities. Cash flows from investments in subsidiaries and associated undertakings and those from investments in intangible assets and property, plant and equipment are presented in investing activities. Financing activities include cash flows resulting from changes in equity and borrowings in order to conduct the business. Cash and cash equivalents consist of cash at bank and in hand and short-term deposits (under 3 months).

Notes

Accounting policies

Sampo Group's consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS) adopted by the EU. The Financial Statement Release is presented in accordance with IAS 34 Interim Financial Reporting using the same accounting policies and methods of computation as in the financial statements for 2018, except for the impact of new standards effective as of 1 January 2019.

From January 2019 on, Sampo has applied the new standard IFRS 16 Leases. The standard superseded IAS 17 according to which leases were recognised either in the balance sheet as finance leases, or as other leases in which case the related liability was disclosed in the notes. The new standard requires all the leases, apart from low-value and short-term leases, to be recognised in the balance sheet. The related interest expenses and amortisations are recognised in the income statement.

In the transition, the modified retrospective approach was applied meaning that the comparison years were not restated. In addition, the Group applied the exemption, allowed by the standard, of not recognising short-term leases and leases of low-value assets in the balance sheet. The adoption of the standard had no material impact on the Group's financial result. The Group's assets increased by 141 million euro and liabilities by 137 million euro.

The applied standards and interpretations are described in Sampo's accounting policies for the financial year 2018. The financial statements are available on Sampo's website at www.sampo.com/year2018.

Comprehensive income statement by segment for twelve months ended 31 December 2019

		Top
EURm	If	danmark	Mandatum	Holding	Elimination	Group
Insurance premiums written	4,475	2,677	1,596	-	-	8,749
Net income from investments	229	1,037	1,267	-2	-15	2,515
Other operating income	33	3	23	16	-15	60

Claims incurred	-2,751	-1,223	-1,492	-	-	-5,466
Change in liabilities for insurance	-87	-1,864	-971	-	3	-2,919
and investment contracts
Staff costs	-558	-272	-52	-15	-	-897
Other operating expenses	-443	-131	-81	-13	15	-653
Finance costs	-16	-10	-9	10	12	-13
Share of associates' profit/loss	1	22	0	298	-	321
Valuation loss on dividend
distribution of associate shares	-	-	-	-155	-	-155
Profit before taxes	884	238	280	139	0	1,541

Taxes	-192	-53	-58	-1	-	-304

Profit for the period	692	185	222	138	0	1,237
Other comprehensive income for the period
Items reclassifiable to profit or loss
Exchange differences	-33	-2	-	-4	-	-39
Available-for-sale financial assets	285	-	114	147	20	566
Share of other comprehensive	-	-	-	-30	-	-30
income of associates
Taxes Total items reclassifiable to profit	-63	-	-27	-29	-4	-123
or loss, net of tax	189	-2	87	83	16	373

Items not reclassifiable to profit or loss
Actuarial gains and losses from	-58	-	-	-	-	-58
defined pension plans
Taxes	13	-	-	-	-	13
Total items not reclassifiable to profit or loss, net of tax	-45	-	-	-	-	-45

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	836	183	308	222	16	1,565

Profit attributable to
Owners of the parent						1,130
Non-controlling interests						107

Total comprehensive income attributable to
Owners of the parent						1,458
Non-controlling interests						107

Comprehensive income statement by segment for twelve months ended 31 December 2018

EURm	If	Top danmark	Mandatum	Holding	Elimination	Group

Insurance premiums written	4,325	2,509	1,074	-	-1	7,907
Net income from investments	229	-280	-26	2	-28	-104
Other operating income	30	3	212	17	-18	244

Claims incurred	-2,716	-1,198	-1,116	-	15	-5,015
Change in liabilities for insurance	-35	-458	426	-	-18	-85
and investment contracts
Staff costs	-529	-269	-46	-11	-	-855
Other operating expenses	-445	-119	-67	-14	18	-627

Finance costs	-15	-11	-7	3	12	-18
Share of associates' profit/loss	4	22	0	621	-	647

Profit before taxes	848	199	450	618	-20	2,094

Taxes	-187	-43	-91	0	4	-317
Profit for the period	661	156	360	618	-16	1,778

Other comprehensive income for the period

Items reclassifiable to profit or loss
Exchange differences	-87	-9	-	-2	-	-97
Available-for-sale financial assets	-364	-	-314	-61	-	-739
Share of other comprehensive
income of associates	-	-	-	-61	-	-61
Taxes	80	-	67	12	-	159
Total items reclassifiable to profit or loss, net of tax	-372	-9	-247	-111	-	-739

Items not reclassifiable to profit or loss
Actuarial gains and losses from	-6	-	-	-	-	-6
defined pension plans Taxes	1	-	-	-	-	1
Total items not reclassifiable to
profit or loss, net of tax	-5	-	-	-	-	-5

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	284	147	112	506	-16	1,034

Profit attributable to
Owners of the parent						1,687
Non-controlling interests						91

Total comprehensive income attributable to
Owners of the parent						943
Non-controlling interests						91

Consolidated balance sheet by segment at 31 December 2019

EURm	If	Topdanmark	Mandatum	Holding	Elimination	Group

Assets
Property, plant and equipment	153	127	14	8	-	302
Investment property	2	540	138	-	-	679
Intangible assets	544	1,443	162	2	-	2,151
Investments in associates	14	223	1	6,979	-	7,217
Financial assets	10,726	6,916	4,671	5,168	-4,039	23,443
Investments related to unit linked insurance contracts	-	4,832	8,170	-	-27	12,975
Tax assets	19	3	-	0	-4	19
Reinsurers' share of insurance liabilities	210	78	1	-	-	289
Other assets	1,759	239	137	58	-9	2,185
Cash and cash equivalents	331	74	952	1,321	-	2,677
Total assets	13,759	14,476	14,247	13,535	-4,079	51,939
Liabilities
Liabilities for insurance and investment contracts	8,778	5,337	3,926	-	-	18,041
Liabilities for unit-linked insurance and investment contracts	-	6,278	8,117	-	-27	14,368
Subordinated debt	396	234	349	494	-271	1,202
Other financial liabilities	25	100	15	3,452	-	3,592
Tax liabilities	281	171	121	15	-	587
Provisions	20	-	-	-	-	20
Employee benefits	99	-	-	-	-	99
Other liabilities	908	320	197	73	-9	1,489
Total liabilities	10,506	12,440	12,724	4,034	-308	39,396
Equity
Share capital						98
Reserves						1,530
Retained earnings						10,062
Other components of equity						217
Equity attributable to parent company's equity holders						11,908
Non-controlling interests						635
Total equity						12,542
Total equity and liabilities						51,939

Consolidated balance sheet by segment at 31 December 2018

EURm	If	Topdanmark	Mandatum	Holding	Elimination	Group

Assets
Property, plant and equipment	24	130	5	3	-	162
Investment property	4	513	148	-	-	665
Intangible assets	512	1,472	158	0	-	2,143
Investments in associates	14	225	3	7,823	-	8,065
Financial assets	10,753	6,028	4,902	5,069	-4,058	22,693
Investments related to unit linked insurance contracts	-	3,735	6,960	-	-24	10,671
Tax assets	11	2	-	15	-4	24
Reinsurers' share of insurance liabilities	208	85	1	-	-	294
Other assets	1,704	279	182	107	-8	2,263
Cash and cash equivalents	294	34	586	1,448	-	2,361
Total assets	13,525	12,502	12,944	14,465	-4,095	49,340
Liabilities
Liabilities for insurance and investment contracts	8,934	5,259	4,221	-	-	18,415
Liabilities for unit-linked insurance and investment contracts	-	4,460	6,955	-	-24	11,390
Subordinated debt	400	234	100	-	-271	464
Other financial liabilities	4	105	33	4,104	-	4,247
Tax liabilities	207	188	96	-	-4	487
Provisions	18	-	-	-	-	18
Employee benefits	51	-	-	-	-	51
Other liabilities	785	227	173	78	-9	1,254
Total liabilities	10,401	10,473	11,578	4,182	-308	36,326
Equity
Share capital						98
Reserves						1,530
Retained earnings						10,944
Other components of equity						-186
Equity attributable to parent company's equity holders						12,386
Non-controlling interests						628
Total equity						13,014
Total equity and liabilities						49,340

Other notes, EURm

1 Insurance premiums

	1–12/2019	1–12/2018

P&C insurance	5,947	5,737
Life insurance
Insurance contracts	2,060	1,751
Investment contracts	1,030	687
Insurance premiums, gross	9,037	8,174

Reinsurers' share
P&C insurance	-281	-259
Life insurance, insurance contracts	-7	-7
Reinsurers's share, total	-288	-267

Group insurance premiums total, net	8,749	7,907

2 Net income from investments >

If	1–12/2019	1–12/2018

Financial assets
Derivative financial instruments	-15	-34

Loans and receivables	9	10

Financial asset available-for-sale
Debt securities	173	190
Equity securities	113	120
Total	286	310

Total financial assets	279	286

Fee and commission expense	-18	-21
Expense on other than financial liabilities	-3	-5

Effect of discounting annuities	-29	-31

If, total	229	229

Topdanmark	1–12/2019	1–12/2018

Financial assets
Derivative financial instruments	44	-32
Financial assets for trading
Debt securities	75	35
Equity securities	169	-20
Total	244	15
Investments related to unit-linked contracts
Debt securities	47	19
Equity securities	714	-123
Derivatives	114	-143
Other financial assets	55	-26
Total	929	-273
Loans and receivables	3	2
Total financial assets	1,221	-287
Net income from investment property	48	18
Pension tax return	-147	4
Effect of discounting, insurance liabilities	-82	-12

Other expenses related to investments	-3	-2
Topdanmark, total	1,037	-280

> 2 Net income from investments

Mandatum	1–12/2019	1–12/2018

Financial assets
Derivative financial instruments	-63	-125
Investments related to unit-linked contracts
Debt securities	90	4
Equity securities	811	-254
Loans and receivables	0	6
Other financial assets	8	-15
Total	908	-259

Loans and receivables	4	2
Financial assets available-for-sale
Debt securities	85	132
Equity securities	325	208
Total	410	339

Total income from financial assets	1,259	-43
Other assets	2	3

Fee and commission income, net	6	13

Mandatum, total	1,267	-26

Holding	1–12/2019	1–12/2018

Financial assets
Derivative financial instruments	-32	-27

Loans and receivables	-15	-24

Financial assets available-for-sale
Debt securities	35	40
Equity securities	9	13
Total	44	53

Total income from financial assets	-3	2
Other assets	1	0

Holding, total	-2	2

Elimination items between segments	-15	-28

Group investment income, total	2,515	-104

3 Claims incurred

-3,831


	-3,567

	-1,315
	-373
-5,982	-5,254

	107
	1
147	108

-5,835	-5,146

280	104
104	36
384	140

	-9
0	1
-16	-9
	131
	-5,015
	-1,543 -607 146 1 -16 369 -5,466

4 Staff costs

	1–12/2019	1–12/2018


Wages and salaries	-645	-625
Granted cash-settled share options	-5	-1
Granted share-settled share options	-18	-9
Pension costs	-100	-96
Other social security costs	-128	-123
Group staff costs, total	-897	-855

5 Intangible assets

	12/2019	12/2018


Goodwill	1,471	1,454
Other intangible assets	681	689
Group intangible assets, total	2,151	2,143

6 Financial assets

	12/2019	12/2018

Derivative financial instruments (Note 7)	82	72

Financial assets designated as at fair value through p/l
Debt securities	5,840	4,432
Equity securities	682	726
Total	6,522	5,158

Loans and receivables	548	685

Financial assets available-for-sale
Debt securities	12,016	12,888
Equity securities	4,275	3,889
Total	16,291	16,777

Group financial assets, total	23,443	22,693

7 Derivative financial instruments

		12/2019			12/2018
		Fair value	Fair value		Fair value	Fair value
	Contract/ notional amount	Assets	Liabilities	Contract/ notional amount	Assets	Liabilities
Derivatives held for trading
Interest rate derivatives	3,714	53	112	2,750	48	100
Foreign exchange derivatives	7,217	26	57	11,304	24	65
Equity derivatives	73	0	-	41	0	-
Derivatives held for trading, total	11,004	79	168	14,096	72	166
Derivatives held for hedging
Fair value hedges	364	3	-	364	-	4
Group derivative financial instruments, total	11,369	82	168	14,460	72	169

8 Determination and hierarchy of fair values >

A large majority of Sampo Group's financial assets are valued at fair value. The valuation is based on either published price quotations 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.

The financial instruments measured at fair value have been classified 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.

The majority of Sampo Group's level 3 assets are private equity and alternative funds.

For private equity funds the valuation of the underlying investments is conducted by the fund manager who has all the relevant information required in the valuation process. The valuation is usually updated quarterly based on the value of the underlying assets and the amount of debt in the fund.

There are several valuation methods, which can be based on, for example, the acquisition value of the investments, the value of publicly traded peer companies, the multiple based valuation or the cashflows of the underlying investments. Most private equity funds follow the International Private Equity and Venture Capital (IPEV) guidelines which give detailed instructions on the valuation of private equity funds.

For alternative funds the valuation is also conducted by the fund managers. Alternative funds often have complicated structures and the valuation is dependent on the nature of the underlying investments. There are many different valuation methods that can be used, for example, the method based on the cashflows of the underlying investments. The operations and valuation of alternative funds are regulated for example by the Alternative Investment Fund Managers Directive (AIFMD), which determines the principles and documentation requirements of the valuation process.

Financial assets at 31 December 2019	Level 1	Level 2	Level 3	Total
Financial assets at fair value
Derivative financial instruments
Interest rate swaps	-	53	-	53
Foreign exchange derivatives	-	0	-	0
Equity derivatives	-	29	-	29
Total	-	82	-	82
Trading assets
Equity securities	483	199	-	682
Debt securities	5,298	497	44	5,840
Total	5,781	696	44	6,522
Financial assets designated at fair value through profit or loss
Deposits	-	367	-	367
Financial assets related to unit-linked insurance
Equity securities	3,416	3	18	3,437
Debt securities	918	1,667	26	2,611
Funds	4,686	691	1,000	6,377
Derivative financial instruments	-	17	-	17
Other assets	-	-	120	120
Total	9,019	2,377	1,165	12,561
Financial assets available-for-sale
Equity securities	2,066	-	379	2,446
Debt securities	8,483	3,472	61	12,016
Other assets	903	48	879	1,830
Total	11,452	3,520	1,318	16,291
Total financial assets at fair value	26,253	7,043	2,528	35,824

> 8 Determination and hierarchy of fair values >

Other financial assets
Financial assets at amortised cost
Loans and receivables	-	414	180	595
Group financial assets, total	26,253	7,458	2,708	36,418

Financial liabilities at 31 December 2019	Level 1	Level 2	Level 3	Total
Financial liabilities at fair value
Derivative financial instruments
Interest derivatives	-	112	-	112
Foreign exchange derivatives	-	57	-	57
Total	-	168	-	168
Financial liabilities designated as at fair value through p/l
Deposits	-	-	9	9
Total financial liabilities at fair value	-	168	9	178
Other financial liabilities
Subordinated debt securities
Subordinated loans	803	467	-	1,270
Debt securities in issue
Bonds	3,208	396	-	3,604
Total other liabilities	4,011	863	-	4,874
Group financial liabilities, total	4,011	1,032	-	5,052

> 8 Determination and hierarchy of fair values >

Financial assets at 31 December 2018	Level 1	Level 2	Level 3	Total
Financial assets at fair value
Derivative financial instruments
Interest rate swaps	-	48	-	48
Foreign exchange derivatives	-	24	-	24
Total	-	72	-	72
Trading assets
Equity securities	533	191	-	725
Debt securities	3,957	695	51	4,703
Total	4,490	886	51	5,428
Financial assets designated as at fair value through p/l
Deposits	-	587	-	587

Financial assets related to unit-linked insurance
Equity securities	2,433	4	7	2,444
Debt securities	1,209	1,894	27	3,130
Funds	3,119	918	678	4,716
Derivative financial instruments	-	5	-	5
Other assets	-	-	41	41
Total	6,761	2,822	754	10,337
Financial assets available-for-sale
Equity securities	1,683	-	322	2,005
Debt securities	9,289	3,315	13	12,617
Other assets	907	44	909	1,860
Total	11,878	3,359	1,245	16,482

Group financial assets, total	23,130	8,086	2,148	33,363
Loans and receivables	-	358	98	456
Financial assets at amortised cost
Other financial assets

> 8 Determination and hierarchy of fair values >

Financial liabilities at 31 December 2018	Level 1	Level 2	Level 3	Total
Financial liabilities at fair value
Derivative financial instruments
Interest derivatives	-	100	-	100
Foreign exchange derivatives	-	69	-	69
Total	-	169	-	169
Financial liabilities designated as at fair value through p/l
Deposits	-	-	11	11
Total financial liabilities at fair value	-	169	11	180
Other financial liabilities
Subordinated debt securities
Subordinated loans	147	321	-	468
Debt securities in issue
Commercial papers	3,547	419	-	3,966
Bonds	-	124	-	124
Total	3,547	543	-	4,090
Total other liabilities	3,695	864	-	4,558
Group financial liabilities, total	3,695	1,033	11	4,738

		12/2019	12/2018
	Transfers	Transfers	Transfers	Transfers
	from level 2	from level 1	from level 2	from level 1
Transfers between levels 1 and 2	to level 1	to level 2	to level 1	to level 2

Assets held for trading
Debt securities	-	-	1	58

Financial assets related to unit-linked
insurance
Debt securities	8	0	17	64
Funds	3	-	-	44
Total	11	0	17	108

Financial assets available-for-sale
Debt securities	582	302	461	477

Transfers are based mainly on the changes of trading volume information provided by an external service provider.

> 8 Determination and hierarchy of fair values

Sensitivity analysis of fair values

The sensitivity of financial assets and liabilites to changes in exchange rates is assessed on business area level due to different base currencies. In If, 10 percentage point depreciation of all other currencies against SEK would result in an increase recognised in profit/loss of EURm 12 (1) and in a decrease recognised directly in equity of EURm -10 (-1). In Topdanmark, 10 percentage depreciation of all other currencies against DKK would result in a decrease recognised in profit/loss of EURm -5 (0), but would not have an impact on equity. In Mandatum, 10 percentage point depreciation of all other currencies against EUR would result in an increase recognised in profit/loss of EURm 48 (29) and in a decrease recognised directly in equity of EURm -68 (-67). In Holding, 10 percentage point depreciation of all other currencies against EUR would have no impact in profit/loss, but a decrease recognised in equity of EURm -156 (-249).

The sensitivity analysis of the Group's fair values of financial assets and liabilities in different market risk scenarios is presented below. The effects represent the instantaneous effects of a one-off change in the underlying market variable on the fair values on 31 December 2019.

The sensitivity analysis includes the effects of derivative positions. All sensitivities are calculated before taxes.

The debt issued by Sampo plc is not included.

	Interest rate	Interest rate	Equity	Other financial assets
	1% parallel shift down	1% parallel	shift up 20% fall in prices 20% fall in prices
Effect recognised in profit/loss	372	-181	-97	-73
Effect recognised directly in equity	285	-258	-656	-195
Total effect	658	-440	-753	-268

9 Movements in level 3 financial instruments measured at fair value >

Financial assets	At Jan 1 2019	Total gains/ losses in income statement	Total gains/ losses recorded in other compre hensive income	Purchases	Sales	At 31 Dec 2019	Gains/ losses included in p/l for financial assets 31 Dec 2019
Financial assets for trading
Debt securities	51	0	-	7	-14	44	0
Investments related to unit-linked insurance contracts
Equity securities	7	0	-	11	0	18	0
Debt securities	27	0	-	27	-28	26	-1
Funds	678	13	-	471	-162	1,000	11
Total	713	13	-	510	-191	1,045	11
Financial assets available-for-sale
Equity securities	323	0	-1	67	-10	380	-1
Debt securities	13	0	0	138	-91	60	0
Other assets	909	3	-33	124	-125	878	-28
Total	1,245	4	-34	329	-226	1,318	-29
Total financial assests measured at fair value	2,009	17	-	846	-430	2,408	-18

	Realised gains	Fair value gains and losses	Total

Total gains or losses included in profit or loss for
the financial period	17	-33	-17
Total gains or losses included in profit and loss for assets held
at the end of the financial period	16	-33	-18

> 9 Movements in level 3 financial instruments measured at fair value

measured at fair value	1,231	58	-1	1,344	-623	2,009	27
Total financial assests
Total	751	6	-1	964	-476	1,245	4
Other assets	674	5	-4	350	-116	909	1
Debt securities	34	0	-1	95	-115	13	0
Equity securities	43	1	4	519	-245	323	4
Financial assets available-for-sale
Total	403	51	-	366	-107	713	21
Funds	359	21	-	355	-56	678	21
Debt securities	38	0	-	4	-16	27	-
Equity securities	6	30	-	7	-35	7	-
Investments related to unit-linked insurance contracts
Debt securities	77	1	-	14	-40	51	1
Financial assets for trading
Financial assets	At Jan 1 2018	income statement	hensive income	Purchases	Sales	At 31 Dec 2018	assets 31 Dec 2018
		Total gains/ losses in	Total gains/ losses recorded in other compre				Gains/ losses included in p/l for financial

		12/2018
	Realised gains	Fair value gains and losses	Total

Total gains or losses included in profit or loss for the financial period	57	0	57
Total gains or losses included in profit and loss
for assets held at the end of the financial period	27	0	27

	12/2019		12/2018
		Effect of		Effect of
		reasonably		reasonably
		possible		possible
		alternative		alternative
	Carrying	assumptions	Carrying	assumptions
	amount	(+ / -)	amount	(+ / -)
Financial assets
Financial assets available-for-sale
Equity securities	370	-74	322	-64
Debt securities	61	-4	13	-1
Other assets	887	-177	909	-182
Total	1,318	-255	1,245	-248

10 Sensitivity analysis of level 3 financial instruments measured at fair value

The value of financial 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 other financial assets, the prices were assumed to go down by 20 per cent. Sampo Group bears no investment risks related to unit-linked insurance, so a change in assumptions regarding these assets does not affect profit or loss. On the basis of the these alternative assumptions, a possible change in interest levels would cause a descend of EURm -4 (-1) for the debt instruments, and EURm -252 (-246) valuation loss for other instruments in the Group's other comprehensive income. The reasonably possible effect, proportionate to the Group's equity, would thus be 2.1 per cent (2.0).

11 Investments related to unit-linked insurance

	12/2019	12/2018

Financial assets as at fair value through p/l
Debt securities	2,611	3,130
Equity securities	9,528	6,901
Loans and receivables	414	358
Derivatives	17	5
Other	406	277
Group investments related ot unit-linked insurance, total	12,975	10,671

12 Liabilities for insurance and investment contracts

	12/2019	12/2018

Insurance contracts
Provision for unearned premiums
P&C insurance, total	2,532	2,422
Life insurance
Insurance contracts	1,821	1,934
Investment contracts	25	24
Provision for claims outstanding
P&C insurance, total	8,411	8,663
Life insurance	2,080	2,264
Life insurance liabilities	3,172	3,109
Group liabilities for insurance and investment contracts, total	18,041	18,415

Investment contracts do not include a provision for claims outstanding.

Liability adequacy test does not give rise to supplementary claims.

Exemption allowed in IFRS 4 Insurance contracts has been applied to investment contracts with DPF or contracts with a right to trade-off for an investment contract with DPF. These investment contracts have been valued like insurance contracts.

13 Liabilities from unit-linked insurance and investment contracts

	12/2019	12/2018

Unit-linked insurance contracts	4,906	4,399
Unit-linked investment contracts	3,184	2,531
Life insurance liabilities	6,278	4,460
Group liabilities from unit-linked insurance
and investment contracts, total	14,368	11,390

14 Financial liabilities

	12/2019	12/2018

Derivative financial instruments (Note 7)	168	169

Debt securities in issue
Commercial papers	-	124
Bonds	3,414	3,943
Total	3,414	4,067

Deposits received from reinsurers	9	11

Group financial liabilities, total	3,592	4,247

15 Contingent liabilities and commitments

	12/2019	12/2018

Off-balance sheet items
Other irrevocable commitments	1,263	1,144
Guarantees	6	10
Investment commitments	6	5
Acquisition of IT-software	23	98
Total	1,299	1,257

Assets pledged as collateral for liabilities

or contingent liabilities	12/2019	12/2019	12/2018	12/2018
Assets pledged as collateral	Assets pledged	Liabilities/ commit ments	Assets pledged	Liabilities/ commit ments
Investment securities	225	0	209	152
Cash and cash equivalents	2	0	-	-

Assets pledged as security for derivative contracts, carrying value	12/2019	12/2018
Investment securities	13	13
Cash and cash equivalents	276	182

The pledged assets are included in the balance sheet item Other assets or Cash and cash equivalents.

16 Result analysis of If

	1–12/2019	1–12/2018

Premiums earned	4,388	4,290
Claims incurred	-3,000	-2,954
Operating expenses	-706	-702
Other technical income and expenses	-13	-4
Allocated investment return transferred from the non-technical account	16	13
Technical result	685	643
Investment result	242	245
Allocated investment return transferred to the technical account	-44	-44
Other income and expenses	2	3
Operating result	884	848

17 Sampo plc's income statement and balance sheet (FAS)

INCOME STATEMENT	1–12/2019	1–12/2018

Other operating income	16	17
Staff expenses	-15	-11
Depreciation and impairment	0	0
Other operating expenses	-57	-14
Operating profit	-56	-8
Finance income and expenses	1,547	1,677
Profit before appropriations and income taxes	1,491	1,669
Income taxes	-1	0
Profit for the financial period	1,490	1,669
BALANCE SHEET	12/2019	12/2018
ASSETS
Intangible assets	2	-
Property, plant and equipment	4	3
Investments
Shares in Group companies	3,401	3,401
Receivables from Group companies	269	261
Shares in participating undertakings	5,440	5,799
Receivables from participating undertakings	90	227
Other shares and participations	973	745
Other receivables	46	23
Receivables	81	166
Cash and cash equivalents	1,320	1,447

TOTAL ASSETS	11,625	12,073
LIABILITIES
Equity
Share capital	98	98
Fair value reserve	114	-3
Invested unrestricted equity	1,527	1,527
Other reserves	273	273
Retained earnings	4,095	4,328
Profit for the year	1,490	1,669
Total equity	7,596	7,890

Liabilities
Long-term	3,908	3,943
Short-term	121	240
Total liabilities	4,030	4,182
TOTAL LIABILITIES	11,625	12,073

Sampo plc Fabianinkatu 27 00100 Helsinki, Finland

Phone: +358 10 516 0100 Business ID: 0142213-3

AI assistant

Sampo Oyj — Audit Report / Information 2019

3237_er_2020-02-06_855509f9-03f3-44c9-9b9b-0d7fa32dfe25.pdf

Financial Statement Release

Contents

Sampo Group's results for 2019

Key figures

Exchange rates used in reporting

Group CEO's Comment

Fourth quarter 2019 in brief

Business areas

If

Topdanmark

Associated company Nordea

Mandatum Life

Holding

Other developments

Changes in the Group structure

Changes in Group Management

Personnel

Remuneration

Shares and shareholders

Internal dividends

Ratings

Group solvency

Solvency position in the subsidiaries

Debt financing

Outlook

Outlook for 2020

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

Dividends

The new dividend policy

Dividend proposal

For more information, please contact

Press conference

Conference call

Distribution:

Group financial review >

> Group financial review

Calculation of key figures

Per share key figures

Earnings per share

Equity per share

Net asset value per share

Market capitalization

Group quarterly comprehensive income statement

Statement of profit and other comprehensive income, IFRS

Consolidated balance sheet, IFRS

Statement of changes in equity, IFRS

Statement of cash flows, IFRS

Notes

Accounting policies

Comprehensive income statement by segment for twelve months ended 31 December 2019

Comprehensive income statement by segment for twelve months ended 31 December 2018

Consolidated balance sheet by segment at 31 December 2019

Consolidated balance sheet by segment at 31 December 2018

Other notes, EURm

1 Insurance premiums

2 Net income from investments >

> 2 Net income from investments

3 Claims incurred

4 Staff costs

5 Intangible assets

6 Financial assets

7 Derivative financial instruments

8 Determination and hierarchy of fair values >

> 8 Determination and hierarchy of fair values >

> 8 Determination and hierarchy of fair values >

> 8 Determination and hierarchy of fair values >

> 8 Determination and hierarchy of fair values

Sensitivity analysis of fair values

9 Movements in level 3 financial instruments measured at fair value >

> 9 Movements in level 3 financial instruments measured at fair value

10 Sensitivity analysis of level 3 financial instruments measured at fair value

11 Investments related to unit-linked insurance

12 Liabilities for insurance and investment contracts

13 Liabilities from unit-linked insurance and investment contracts

14 Financial liabilities

15 Contingent liabilities and commitments

Assets pledged as collateral for liabilities

Sampo Oyj Audit Report / Information 2019