Sampo Oyj — Interim / Quarterly Report 2012

Nov 9, 2012

Interim Report 9 november 2012

January–September 2012

Contents

	Q3
Contents
Summary		3
Third quarter 2012 in brief		4
Business areas		5
P &C insurance		5
A ssociated company Nordea		8
Life insurance	10
Holding		12
Other developments		13
P ersonnel		13
R emuneration		13
Shares and share capital		13
R atings		14
Group solvency		14
Debt financing		15
Outloo k	16
O utlook for the rest of 2012		16
T he major risks and uncertainties to the Group in the near term		16
Tables 30 SEPTEMBER 2012		18
Group financial review		18
Calculation of key figures		19
Group quarterly comprehensive income statement		21
Consolidated comprehensive income statement, IFRS	22
Consolidated balance sheet, IFRS	23
Statement of changes in equity, IFRS	24
Statement of cash flows, IFRS	25
Notes	26
A ccounting policies	26
Comprehensive income statement by segment for nine months ended 30 September 2012		27
Comprehensive income statement by segment for nine months ended 30 September 2011	28
Consolidated balance sheet by segment at 30 September 2012	29
Consolidated balance sheet by segment at 31 December 2011	30
Other notes		31
1 Insurance premiums		31
2 Net income from investments	32
3 Claims incurred	35
4 Staff costs	36
5 Intangible assets		37
6 Financial assets	38
7 Derivative financial instruments	40
8 Investments related to unit-linked insurance		41
9 Liabilities for insurance and investment contracts		42
10 Liabilities from unit-linked insurance and investment contracts	43
11 Financial liabilities	44
12 Contingent liabilities and commitments		45
13 Result analysis of P&C insurance business	47
14 Sampo plc's income statement and balance sheet (FAS)	48

SAMPO PLC INTERIM REPORT 9 November 2012

Sampo Group's results for January-September 2012

Simply a good quarter

Sampo Group's profit before taxes for January - September 2012 amounted to EUR 1,172 million (906). The total comprehensive income for the period, taking changes in the market value of assets into account, rose sharply to EUR 1,447 million (162).

• • Earnings per share rose to EUR 1.79 (1.35) and mark-to-market EPS surged to EUR 2.58 per share (0.29). The return on equity for the Group amounted to 20.7 per cent (2.5).
• • Net asset value per share increased to EUR 17.75 (14.05). The fair value reserve after tax on the Group level amounted to EUR 681 million (355).
• • The excellent technical profitability in P&C insurance operations was maintained and the combined ratio for January - September 2012 amounted to 89.4 per cent (92.6). The profit before taxes rose to EUR 648 million (465). The discount rates for annuities in Finland and Sweden were lowered to 3.0 per cent and 0.07 per cent, respectively. This affected the third quarter profit before taxes negatively by EUR 37 million. Mark-to-market result amounted to EUR 785 million (46). Return on equity increased to 37.4 per cent (2.4).
• • Sampo's share of the associated company Nordea's profit for January September 2012 was EUR 466 million (373). Nordea continued to increase its efficiency and reported the highest ever income and operating profit for the first nine months of a year. Expenses remained flat and the core tier 1 capital ratio increased to 12.2 per cent.
• • Profit before taxes for the life insurance operations amounted to EUR 98 million (107). The mark-to-market result improved to EUR 218 million (-204). The return on equity amounted to 29.9 per cent (-29.3). The lowered with profit discount rates in use were extended and all with profit liabilities are now discounted with 2.5 per cent until the end of 2013. This had a negative effect of EUR 18 million on the profit before taxes for the third quarter.

EURm	1–9/2012	1–9/2011	Change, %	7–9/2012	7–9/2011	Change, %
Profit before taxes	1,172	906	29	368	150	146
P&C insurance	648	465	39	206	43	374
Associate (Nordea)	466	373	25	140	80	75
Life insurance	98	107	-8	33	23	46
Holding (excl. Nordea)	-40	-37	7	-11	5	-
Profit for the period	1,003	759	32	314	125	151
			Change			Change
Earnings per share, EUR	1.79	1.35	0.44	0.56	0.22	0.34
EPS (incl. change in FVR) EUR	2.58	0.29	2.29	1.04	-0.38	1.42
NAV per share, EUR *)	17.75	14.05	3.70	-	-	-
Average number of staff (FTE)	6,828	6,888	-60	-	-	-
Group solvency ratio, % *)	161.7	138.6	23.1	-	-	-

Key figures

*) comparison figure from 31.12.2011

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 2011 unless otherwise stated.

Third quarter 2012 in brief

Sampo Group's third quarter 2012 profit before taxes amounted to EUR 368 million (150). Earnings per share amounted to EUR 0.56 (0.22). Mark-to-market earnings per share were EUR 1.04 (-0.38). Net asset value per share increased EUR 2.26 to EUR 17.75 during the third quarter of 2012.

In the third quarter of 2012 the combined ratio in the P&C operation remained on an excellent level at 89.3 per cent (92.3). Profit before taxes increased to EUR 206 million (43), despite the negative effect of the lowered discount rates. Share of the profits of the associated company Topdanmark amounted to EUR 8 million (0).

Sampo's share of Nordea's third quarter 2012 net profit amounted to EUR 140 million (80). Nordea's Group core tier 1 capital ratio, excluding transition rules, was 12.2 per cent at the end of the third quarter 2012, a strengthening by 0.4 percentage points from the end of the previous quarter.

Profit before taxes for the life insurance operations was EUR 33 million (23). Premiums written rose to EUR 185 million from EUR 168 million in the third quarter of 2011.

Business areas P&C insurance

If P&C is the leading property and casualty insurance group 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 located in Sweden, and the If subsidiaries and branches 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. Danish insurance company Topdanmark is If's associated company.

Results
EURm	1–9/2012	1–9/2011	Change, %	7–9/2012	7–9/2011	Change, %
Premiums, net	3,500	3,321	5	907	817	11
Net income from investments	283	229	24	83	-51	-
Other operating income	23	24	0	7	8	-10
Claims incurred	-2,141	-2,109	2	-742	-709	5
Change in insurance liabilities	-258	-272	-5	214	211	1
Staff costs	-416	-369	13	-148	-124	19
Other operating expenses	-362	-363	0	-120	-124	-3
Finance costs	-14	2	-	-5	14	-
Share of associates' profit/loss	33	3	1,000	9	0	-
Profit before taxes	648	465	39	206	43	374
Key figures			Change			Change
Combined ratio, %	89.4	92.6	-3.2	89.3	92.3	-3.0
Risk ratio, %	66.1	69.2	-3.1	66.2	68.9	-2.7
Cost ratio, %	23.3	23.4	-0.1	23.2	23.4	-0.2
Expense ratio, %	17.0	17.1	-0.1	17.1	17.3	-0.2
Return on equity, %	37.4	2.4	35.0	-	-	-
Average number of staff (FTE)	6,234	6,317	-83	-	-	-

Profit before taxes for P&C insurance increased to EUR 648 million (465) in January-September 2012 as a result of a strong operating profitability during the year. Net income from investments also improved significantly compared to previous year, as the comparison period was burdened with impairment losses of EUR 152 million related to equity assets.

Both risk ratio and combined ratio improved significantly in January-September 2012 to 66.1 per cent (69.2) and 89.4 per cent (92.6), respectively. EUR 100 million (98) was released from technical reserves relating to prior year claims.

Technical result increased to EUR 421 million (334). Technical result for Private business area increased to EUR 264 million (196), for Commercial to EUR 119 million (90) and for Baltic to EUR 14 million (13). For business area Industrial technical result decreased to EUR 19 million (37), because large claims in the business area ended up EUR 64 million worse than normalized due to some extraordinary large

5

claims in Sweden and Denmark in the second quarter of 2012. Insurance margin (technical result in relation to net premiums earned) improved to 12.9 per cent (10.8).

Return on equity (RoE) increased significantly to 37.4 per cent (2.4). Fair value reserve increased from the year end to EUR 334 million (139) at the end of September 2012.

Topdanmark's profit contribution for January-September 2012 was EUR 36 million. At the end of September 2012 If P&C held altogether 3,147,692 Topdanmark shares. The holding represents, according to Topdanmark's latest disclosure, 24.6 per cent of outstanding shares and 22.9 per cent of the total number of registered shares.

	Combined ratio,%			Risk ratio,%
	1-9/2012	1-9/2011	Change	1-9/2012	1-9/2011	Change
Private	88.1	91.9	-3.8	65.1	68.9	-3.8
Commercial	89.9	93.5	-3.6	66.3	69.8	-3.5
Industrial	96.9	93.2	3.7	74.7	72.9	1.8
Baltic	85.5	89.2	-3.7	53.3	54.4	-1.1
Sweden	96.2	98.6	-2.4	72.6	76.7	-4.1
Norway	81.7	88.5	-6.8	59.6	66.2	-6.6
Finland	87.7	87.6	0.1	65.2	64.7	0.5
Denmark	104.5	100.0	4.5	76.9	71.2	5.7

	Combined ratio,%			Risk ratio,%
	7-9/2012	7-9/2011	Change	7-9/2012	7-9/2011	Change
Private	89.0	90.3	-1.3	66.6	68.2	-1.6
Commercial	87.0	91.9	-4.9	63.4	68.5	-5.1
Industrial	95.0	97.3	-2.3	74.1	77.2	-3.1
Baltic	89.5	88.6	0.9	57.4	55.0	2.4
Sweden	98.1	105.1	-7.0	74.7	83.1	-8.4
Norway	82.9	79.6	3.3	61.6	58.4	3.2
Finland	85.1	83.7	1.4	63.6	62.1	1.5
Denmark	92.2	113.9	-21.7	64.3	84.4	-20.1

Both combined ratio and risk ratio improved significantly in January-September in all business areas except Industrial.

Discount rates for annuities in Finland and Sweden were lowered to 3 per cent (nominal) in Finland and 0.07 per cent (real) in Sweden, which increased the technical reserves by EUR 23 million and EUR 15 million, respectively. Profit before taxes was negatively affected by these amounts.

Gross written premiums increased 6.4 per cent to EUR 3,739 million (3,513). Adjusted for currency, premiums increased 3.9 per cent. In Private and Commercial gross written premiums adjusted for currency increased by 3.5 per cent and in Industrial 4.5 per cent. In Baltic premiums decreased 0.7 per cent.

Investment allocation, If P&C, total EUR 12.2 billion

Cost ratio improved from previous year to 23.3 per cent (23.4). Adjusted for currency the nominal costs increased 5.1 per cent.

At the end of September 2012 the total investment assets of If P&C amounted to EUR 12.2 billion (11.2).

Net income from investments increased to EUR 283 million (229).

Investment return mark-to-market for January-September 2012 was 5.0 per cent (0.2).

Duration for interest bearing assets was 1.0 year (1.2) and average maturity 2.0 years (2.5). Fixed income running yield as at 30 September 2012 was 3.6 per cent (4.1).

If P&C's solvency ratio as at 30 September 2012 (solvency capital in relation to net written premiums) was 85 per cent (72). Solvency capital amounted to EUR 3,885 million (3,080). Reserve ratios were stable at 162 per cent (167) of net written premiums and 214 per cent (229) of claims paid.

On 5 November 2012 If P&C Insurance Company Ltd (Finland) signed an agreement to acquire the P&C insurance business of the Finnish branch of Tryg A/S for a consideration of EUR 15 million. Tryg's Finnish branch had a premium income of EUR 84 million in 2011, approximately 155,000 customers and a market share of approximately two per cent. The acquisition is expected to have a minor positive impact on If P&C's result in medium term. The deal is subject to approval by the authorities and is expected to be completed during the spring of 2013.

On the same day If P&C and Nordea signed a partnership agreement whereby Nordea will market If P&C's products in Finland, Sweden, Estonia, Latvia and Lithuania. The partnership will begin no later than 1 July 2013.

If is also the key insurance partner to the automotive industry in the Nordic countries. As an indication of this the large car branded insurance agreement with Volkswagen in Sweden was extended until the end of 2015.

Associated company Nordea

On 30 September 2012 Sampo plc held 860,440,497 Nordea shares corresponding to a holding of 21.25 per cent. The average price paid per share amounted to EUR 6.46 and the book value in the Group accounts was EUR 7.57 per share. The closing price as at 30 September 2012 was EUR 7.69.

Sampo's holding exceeds 20 per cent and Nordea has been 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.

In January – September 2012 Nordea continued to increase efficiency in line with the plan. Expenses remained flat and the core tier 1 capital ratio increased to 12.2 per cent. Nordea is fully compliant with liquidity requirements and has excellent access to the international funding markets.

The following text is based on Nordea's January - September 2012 interim report published on 24 October 2012:

EURm	1–9/2012	1–9/2011	Change, %	7–9/2012	7–9/2011	Change, %
Net interest income	4,323	4,029	7	1,441	1,379	4
Total operating income	7,606	6,943	10	2,469	2,091	18
Profit before loan losses	3,747	2,990	25	1,176	678	73
Net loan losses	-689	-472	46	-254	-112	127
Loan loss ratio (ann.), bps	27	20		30	14
Operating profit	3,058	2,518	21	922	566	63
Risk-adjusted profit	2,399	1,899	26	749	485	54
Diluted EPS, EUR	0.57	0.46		0.17	0.10
Return on equity, %	11.4	10.0		10.1	6.5

Results

The first nine months 2012 showed continued high total income, up 10 per cent compared to the same period 2011. Operating profit increased 21 per cent, due to higher total income, and stable costs. Riskadjusted profit increased by 26 per cent compared to the same period last year. The effect from currency fluctuations contributed to an increase in income and expenses of 1 percentage point for the first nine months 2012 compared to the same period 2011.

Net interest income increased 7 per cent compared to the same period last year. Lending volumes increased 6 per cent and corporate lending margins were higher, while deposit margins have decreased from last year. Net fee and commission income was largely unchanged compared to the first nine months of 2011. Net result from items at fair value increased by 33 per cent compared to the same period last year. The customer-driven capital markets operations continued to be strong with increasing volumes. Income under the equity method was EUR 60 million and other income was EUR 71 million.

Total expenses increased 2 per cent compared to the same period last year excluding the restructuring costs last year, and staff costs increased 1 per cent. Total expenses decreased 0.5 per cent compared to the first nine months of 2011 in local currencies when excluding the restructuring costs in the third quarter last year and excluding performance-related salaries, i.e. with the cost definition for the cost target in the New Normal plan. Staff costs were unchanged in local currencies when excluding the restructuring costs last year.

Net loan loss provisions increased to EUR 689 million, corresponding to a loan loss ratio of 27 basis points (20 basis points in the same period last year excluding provisions related to the Danish deposit guarantee fund). Individually assessed loan loss provisions were EUR 80 million lower than in the previous quarter, whereas new collective provisions were EUR 117 million higher than in the previous quarter, mainly in Denmark and in shipping (new collective provisions of EUR 11 million in the third quarter compared to net reversals of EUR 106 million in the second quarter).

The Group's core tier 1 capital ratio, excluding transition rules, was 12.2 per cent at the end of the third quarter, a strengthening by 0.4 percentage points from the end of the previous quarter. The total capital ratio excluding transition rules increased 1.0 percentage point to 15.3 per cent. Improved capital ratios have been achieved by strong profit generation and a decrease in risk-weighted assets (RWA). RWA were EUR 179.0 billion excluding transition rules, down EUR 2.2 billion, or 1.2 per cent, compared to the previous quarter. The core tier 1 ratio including transition rules under Basel II was 9.8 per cent. The capital base was EUR 27.3 billion, the tier 1 capital was EUR 23.8 billion and the core tier 1 capital was EUR 21.8 billion.

Life insurance

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. It operates in the other Baltic countries through branches.

Results

EURm	1–9/2012	1–9/2011	Change, %	7–9/2012	7–9/2011	Change, %
Premiums written	678	612	11	185	168	10
Net income from investments	455	-173	-	211	-276	-
Other operating income	2	1	242	1	1	7
Claims incurred	-532	-630	-16	-160	-189	-15
Change in liabilities for inv. and ins. contracts	-425	371	-	-179	342	-
Staff costs	-32	-28	14	-11	-8	33
Other operating expenses	-43	-40	8	-12	-13	-10
Finance costs	-6	-7	1	-1	-2	-35
Profit before taxes	98	107	-8	33	23	46
Key figures			Change			Change
Expense ratio, %	115.5	112.1	3.4	-	-	-
Return on equity, %	29.9	-29.3	59.2	-	-	-
Average number of staff (FTE)	541	517	24	-	-	-

Profit before taxes in life insurance for January-September 2012 amounted to EUR 98 million (107). The profit was burdened by the lowering of the with profit discount rates. All with profit liabilities are now discounted with 2.5 per cent for the years 2012 and 2013. The negative effect on the third quarter 2012 profit before taxes was EUR 18 million. The total comprehensive income for the period reflecting the changes in market values of assets increased to EUR 218 million (-204). Return on equity (RoE) rose to 29.9 per cent (-29.3).

Excluding the assets of EUR 3.6 billion (3.1) covering unit-linked liabilities, Mandatum Life Group's investment assets amounted to EUR 5.5 billion (5.4) at market values as at 30 September 2012.

Net income from investments, excluding income on unit-linked contracts, amounted to EUR 237 million (202). Net income from unit-linked investments was EUR 218 million (-375). At the end of September 2012 the duration of fixed income assets was 1.9 years (1.8) and average maturity 2.2 years (2.3). The fixed income running yield as at 30 September 2012 was 5.2 per cent (5.5).

Investment return mark-to-market during January – September 2012 was 7.5 per cent (-3.8). The fair value reserve increased to EUR 351 million from EUR 214 million at the end of 2011.

Investment allocation, Mandatum Life, total EUR 5.5 billion

The solvency I position of Mandatum Life Group strengthened further and solvency ratio rose to 26.0 per cent (20.9) at the end of September 2012. Mandatum Life Group's total technical reserves amounted to EUR 7.7 billion (7.3), of which unit-linked reserves accounted for 3.6 billion (3.1). Mandatum Life has increased its with profit technical reserves over the last years with EUR 126 million due to low level of interest rates. All with profit liabilities are discounted with 2.50 per cent in 2012 and in 2013. As of 1 January 2014 the discount rate to be used will be 3.50 per cent at highest. The unit-linked reserves' share of total technical reserves increased to a record level of 46 per cent (42).

Expense result for Mandatum Life Group was EUR 4 million (7) for January – September 2012. Expense result is expected to rise further but not quite reach previous year's level, because of the increased sales volumes. As Mandatum Life does not defer acquisition costs, sales commissions burden the result for the sales year. In addition the expense ratio was affected by the increased number of employees and the payments based on the management incentive schemes.

Mandatum Life Group's premium income on own account increased 11 per cent and amounted to EUR 678 million (612). The sales through Sampo Bank's branch network have succeeded particularly well and are expected to reach a record level in 2012. Premium income from the Baltic countries amounted to EUR 21 million (34). Mandatum Life's overall market share in Finland measured by premium income was 25.4 per cent (23.7) and market share in unit-linked business amounted to 27.3 per cent (26.3).

Holding

Sampo plc controls its subsidiaries engaged in P&C and life insurance. In addition on 30 September 2012 Sampo plc held 21.25 per cent of the share capital of Nordea, the largest bank in the Nordic countries. Nordea is an associated company to Sampo plc.

Results

EURm	1–9/2012	1–9/2011	Change, %	7–9/2012	7–9/2011	Change, %
Net investment income	35	17	105	17	7	150
Other operating income	11	11	-3	4	4	-4
Staff costs	-15	-9	73	-7	-1	814
Other operating expenses	-9	-10	-3	-2	-3	-35
Finance costs	-61	-47	30	-23	-2	855
Share of associates' profit	466	373	25	140	80	75
Profit before taxes	426	336	27	129	85	52
			Change			Change
Average number of staff (FTE)	53	54	-1	-	-	-

The segment's profit before taxes rose to EUR 426 million (336), of which EUR 466 million (373) relates to Sampo's share of Nordea's January - September 2012 profit. The segment, excluding share of Nordea's profit, reported a loss of EUR 40 million (-37). Staff costs increased mainly because of the payments based on long-term incentive systems in the third quarter of 2012.

Sampo plc's holding in Nordea Bank was booked in the consolidated balance sheet at EUR 6.5 billion. The market value of the holding was EUR 6.6 billion as at 30 September 2012. In addition the assets on Sampo plc's balance sheet included holdings in subsidiaries for EUR 2.4 billion (2.4).

In the first nine months of 2012 no dividends were paid to Sampo plc by its insurance subsidiaries. A dividend of EUR 224 million was received on 3 April 2012 from the associated company Nordea.

Other developments

Personnel

The number of full-time equivalent staff was 6,835 employees (6,810) as at 30 September 2012. In P&C insurance, the number of staff remained stable compared to year-end 2011. In life insurance, the number of staff rose somewhat in Finland.

During January-September 2012, approximately 91 per cent of the staff worked in P&C insurance, 8 per cent in life insurance and 1 per cent in the Group's parent company Sampo plc. Geographically, 32 per cent worked in Finland, 27 per cent in Sweden, 22 per cent in Norway and 19 per cent in the Baltic countries, Russia, Denmark and other countries. The average number of employees during January-September 2012 was 6,828 which compares to an average of 6,888 during the corresponding period in 2011.

Remuneration

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.

In January - September 2012 EUR 17 million (7), including social costs, was paid on the basis of the long-term management incentive schemes. EUR 28 million (25), including social costs, was paid as short term variable compensation during the same period.

The terms of the long-term incentive schemes and Sampo Group's remuneration principles are available on Sampo's website at www.sampo.com/remuneration.

Shares and share capital

As at 30 September 2012, Sampo plc had 560,000,000 shares, which were divided into 558,800,000 A shares and 1,200,000 B shares. Total number of votes attached to the shares is 564,800,000. Each A share entitles the holder to one vote and each B share entitles the holder to five votes at the General Meeting of Shareholders. Sampo plc didn't hold any of its own A shares at the end of September 2012. Neither did the other Group companies hold any shares in the parent company.

The Annual General Meeting of 12 April 2012 authorized the Board to acquire in one or several lots a maximum of 50,000,000 Sampo A shares. The authorization will be valid until the close of the next Annual General Meeting, nevertheless not more than 18 months after AGM's decision. The authorization was not used in the third quarter of 2012.

On 5 September 2012 Sampo plc received a disclosure under Chapter 2, Section 9 of the Securities Markets Act, according to which the total number of Sampo A shares and related voting rights owned by Capital Group Companies, Inc. exceeded on 3 September 2012 one twentieth (1/20) of Sampo plc's entire stock and voting rights and amounted altogether 6.48 per cent of the share capital of Sampo plc.

Ratings

All the main ratings for Sampo Group companies remained unchanged in the third quarter of 2012.

Rated company	Moody's			Standard and Poor's
	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

Sampo Group, with Nordea Bank AB (publ) as its associated company, is regarded as a financial and insurance conglomerate according to the Act on the Supervision of Financial and Insurance Conglomerates (2004/699).

Group solvency is 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.

Sampo Group solvency

EURm	30 September 2012	31 December 2011
Group capital	9,701	8,920
Sectoral items	1,364	1,091
Intangibles and other deductibles	-3,103	-3,217
Group's own funds, total	7,963	6,794
Minimum requirements for own funds, total	4,923	4,902
Group solvency	3,039	1,892
Group solvency ratio
(Own funds % of minimum requirements)	161.7	138.6

The Group's solvency ratio (own funds in relation to minimum requirements for own funds) was 161.7 per cent (138.6) as at 30 September 2012. Nordea is treated as an associated company in the solvency calculation and the part of Nordea's capital requirement corresponding to Sampo's holding in Nordea is taken into account in the Group's capital requirement.

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 30 September 2012 was EUR 4,678 million (4,374) and adjusted solvency capital was EUR 8,075 million (7,262).

Debt financing

Sampo plc's debt financing on 30 September 2012 amounted to EUR 2,306 million (2,329) and interest bearing assets including bank accounts to EUR 588 million (1,121). As at 30 September 2012 the net debt was EUR 1,718 (1,208). Gross debt to Sampo plc's equity was 37.0 per cent (34.6).

As at 30 September 2012 financial liabilities in Sampo plc's balance sheet consisted of issued senior bonds and notes of EUR 1,713 million (1,677) and EUR 593 million (652) of outstanding CPs issued. The average interest on Sampo plc's debt as of 30 September 2012 was 2.42 per cent (3.73). More information on Sampo Group's outstanding debt issues is available at www.sampo.com/debtfinancing.

To balance the risks on the Group level Sampo plc's debt is mainly tied to short-term interest rates and issued in euro or Swedish krona. The debt positions are managed with interest rate swaps. These derivatives are valued at fair value in the profit and loss account although economically they match the underlying bonds. As a result Sampo plc maintains the flexibility to adjust derivative position if needed but this comes at the cost of increased volatility in the Holding segment's finance costs.

Outlook

Outlook for the rest of 2012

Sampo Group's business areas are expected to report good operating results for 2012. However, the mark-to-market results are, particularly in life insurance, highly dependent on capital market developments.

P&C insurance operations are expected to reach a combined ratio of 89 – 91 per cent for the full year 2012 and thus achieve the long-term target of below 95 per cent. 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 day-to-day business activities Sampo Group is exposed to various risks. As a financial group the major sources of profitability and its variation for Sampo Group are market, credit and insurance risks. Their contributions to the Group's Economic Capital - used as an internal basis for capital needs – currently represent normal levels of 38 per cent, 36 per cent and 14 per cent, respectively. For more information on Sampo Group's risk exposures and their management see www.sampo.com/ riskmanagement and the risk management section of the 2011 Annual Report at www.sampo.com/ annualreport.

Abrupt changes in the business environment or major unforeseen events may always impact the profitability of a company. Adverse macro economic developments, such as current Euro crisis, and slow growth in Europe are major sources of uncertainty which may escalate in ways that can affect the Group's activities unfavorably. This is, however, mitigated by the fact that Sampo Group companies do not have direct exposures in sovereigns under pressure and have small exposure to banking sector outside the Nordic region.

SAMPO PLC Board of Directors

For more information, please contact

Peter Johansson, Group CFO, tel. +358 10 516 0010 Jarmo Salonen, Head of Investor Relations and Group Communications, tel. +358 10 516 0030 Essi Nikitin, IR Manager, tel. +358 10 516 0066 Maria Silander, Press Officer, tel. +358 10 516 0031

Telephone conference

An English-language telephone conference for investors and analysts will be arranged at 4 pm Finnish time (2 pm UK time).

Please call

• +44 (0)20 3003 2666 (Standard International Access),
• +1 866 966 5335 (US Toll Free),
• +44 (0)808 109 0700 (UK Toll Free) or
• +358 (0)800 914672 (Finland Toll Free).

Please be ready to state the conference name 'Sampo plc Q3 2012 Release' and password 'Sampo'.

The telephone conference can also be followed from a direct transmission on the Internet at . A recorded version will later be available at the same address.

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

Sampo will publish the full-year 2012 Financial Statement Release on 13 February 2013.

DISTRIBUTION: NASDAQ OMX Helsinki The principal media Financial Supervisory Authority www.sampo.com

Group financial review

Financial highlights

Group		1–9/2012	1–9/2011
Profit before taxes	EURm	1,172	906
Return on equity (at fair value)	%	20.7	2.5
Return on assets (at fair value)	%	9.6	1.5
Equity/assets ratio	%	30.1	28.4
Group solvency ¹)	EURm	3,039	1,882
Group solvency ratio	%	161.7	139.0
Average number of staff		6,828	6,888
Property & casualty insurance
Premiums written before reinsurers' share	EURm	3,739	3,513
Premiums earned	EURm	3,242	3,049
Profit before taxes	EURm	648	465
Return on equity (at current value)	%	37.4	2.4
Risk ratio ²)	%	66.1	69.2
Cost ratio ²)	%	23.3	23.4
Loss ratio, excl. unwinding of discounting ²)	%	72.4	75.4
Expense ratio ²)	%	17.0	17.1
Combined ratio, excl. unwinding of discounting	%	89.4	92.6
Average number of staff		6,234	6,317
Life insurance
Premiums written before reinsurers' share	EURm	683	618
Profit before taxes	EURm	98	107
Return on equity (at current value)	%	29.9	-29.3
Expense ratio	%	115.5	112.1
Average number of staff		541	517
Holding
Profit before taxes	EURm	426	336
Average number of staff		53	54
Per share key figures
Earnings per share	EUR	1.79	1.35
Earnings per share, incl. other comprehensive income	EUR	2.58	0.29
Capital and reserves per share	EUR	17.32	14.99
Net asset value per share	EUR	17.75	13.62
Adjusted share price, high	EUR	24.52	23.90
Adjusted share price, low	EUR	17.91	16.85
Market capitalisation	EURm	13,558	10,601

¹) The Group solvency is calculated according to the consolidation method defined in Chapter 3 of the Act on the Supervision of Financial and Insurance Conglomerates (2004/699).

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 P&C insurance is presented in note 13.

The number of shares used at the balance sheet date and as the average number during the financial period was 560,000,000. 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
+ total equity	x 100 %
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
expense charges	x 100 %

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 capitalisation

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

Group quarterly comprehensive income statement

EURm	7–9/2012	4–6/2012	1–3/2012	10–12/2011	7–9/2011
Insurance premiums written	1,092	1,236	1,845	1,117	985
Net income from investments	308	74	380	199	-324
Other operating income	8	7	10	8	8
Claims incurred	-898	-831	-939	-984	-897
Change in liabilities for insurance and investment contracts	31	71	-785	141	554
Staff costs	-166	-144	-153	-136	-133
Other operating expenses	-130	-138	-135	-147	-135
Finance costs	-26	-16	-29	-41	13
Share of associates' profit/loss	148	181	169	164	80
Profit for the period before taxes	368	440	363	322	150
Taxes	-54	-68	-47	-43	-25
Profit for the period	314	372	317	279	125
Other comprehensive income for the period
Exchange differences on translating foreign operations	67	11	15	58	-16
Available-for-sale financial assets	257	-227	407	177	-413
Cash flow hedges	0	0	0	0	0
Share of other comprehensive income of associates	11	-3	18	52	-19
Income tax relating to components of other comprehensive income	-65	56	-103	-42	108
Other comprehensive income for the period, net of tax	270	-163	337	245	-341
TOTAL COMPR EHENSIVE INCOME FOR THE PERIOD	584	209	654	524	-216
Profit attributable to Owners of the parent	314	372	317	279	125
Non-controlling interests	0	0	0	0	0
Total comprehensive income attributable to
Owners of the parent	584	209	654	524	-216
Non-controlling interests	0	0	0	0	0

Consolidated comprehensive income statement, ifrs

EURm	Note	1–9/2012	1–9/2011
Insurance premiums written	1	4,173	3,933
Net income from investments	2	763	60
Other operating income		25	24
Claims incurred	3	-2,669	-2,739
Change in liabilities for insurance and investment contracts		-683	99
Staff costs	4	-463	-406
Other operating expenses		-402	-401
Finance costs		-71	-41
Share of associates' profit/loss		499	376
Profit before taxes		1,172	906
Taxes		-169	-146
Profit for the period		1,003	759
Other comprehensive income for the period Exchange differences		93	-52
Available-for-sale financial assets		438	-697
Cash flow hedges		-1	-2
Share of other comprehensive income of associates		26	-29
Income tax relating to components of other		-111	183
comprehensive income Other comprehensive income for the period, net of tax		444	-597
TOTAL COMPR EHENSIVE INCOME FOR THE PERIOD		1,447	162
Profit attributable to
Owners of the parent		1,003	759
Non-controlling interests		0	0
Total comprehensive income attributable to Owners of the parent		1,447	162
Non-controlling interests		0	0
Basic earnings per share (eur)		1.79	1.35

Consolidated balance sheet, ifrs

Assets Property, plant and equipment	30 120	26
Investment property		118
Intangible assets 5	779	745
Investments in associates	6,876	6,593
Financial assets 6, 7	17,219	16,745
Investments related to unit-linked insurance contracts 8	3,607	3,053
Tax assets	52	64
Reinsurers' share of insurance liabilities	673	532
Other assets	1,806	1,659
Cash and cash equivalents	1,070	572
Total assets	32,232	30,107
Liabilities
Liabilities for insurance and investment contracts 9	14,323	13,796
Liabilities for unit-linked insurance and investment cont 10 racts	3,584	3,054
Financial liabilities 11	2,635	2,768
Tax liabilities	564	474
Provisions	29	37
Employee benefits	105	98
Other liabilities	1,290	960
Total liabilities	22,530	21,187
Equity
Share capital	98	98
Reserves	1,531	1,531
Retained earnings	7,134	6,844
Other components of equity	939	447
Equity attributable to owners of the parent	9,701	8,920
Non-controlling interests	0	0
Total equity	9,701	8,920
Total equity and liabilities	32,232	30,107

Statement of changes in equity, ifrs

EURm	Share capital	Share premium account	Legal reserve	Invested un restricted equity	Retained earnings	Trans lation of foreign operations *)	Available for-sale financial assets **)	Cash flow hedges ***)	Total
Equity at 1 Jan. 2011	98	0	4	1,527	6,459	62	734	3	8,886
Changes in equity
Recognition of undrawn dividends					13				13
Dividends					-645				-645
Acquistion of treasury shares					-24				-24
Share of associate's other changes in equity					3				3
Total comprehensive income for the period					759	-81	-515	-1	162
Equity at 30 September 2011	98	0	4	1,527	6,565	-18	219	1	8,395
Equity at 1 Jan. 2012	98	0	4	1,527	6,844	91	354	1	8,920
Changes in equity
Recognition of undrawn dividends					6				6
Dividends					-672				-672
Share of associate's other changes in equity					-8				-8
Other changes in equity					9				9
Total comprehensive income for the period					1,003	108	337	-1	1,447
Equity at 30 September 2012	98	0	4	1,527	7,182	199	691	0	9,701

*) The total comprehensive income includes also the share of the associate Nordea's other comprehensive income, in accordance with the Group's share holding. Nordea's other comprehensive income comprise, to a large extent, the currency hedging of net investments and exchange differences, and therefore the Group's exchange differences include also Sampo's share of these items totalling EURm 15 (-28). Available-for-sale financial assets include also the share of Nordea's valuation differences EURm 11 (-) on these assets.

**) The amount recognised in equity from available-for-sale financial assets for the period totalled EURm 343 (-490). The amount transferred to p/l amounted to EURm -16 (-25).

***) The amount recognised in equity from cash flow hedges for the period totalled EURm -1 (-1) .

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

Statement of cash flows, IFRS

EURm	1–9/2012	1–9/2011
Cash and cash equivalent at the beginning of the period	572	527
Cash flow from/used in operating activities	899	314
Cash flow from/used in investing activities	223	-13
Cash flow from/used in financing activities	-651	88
Dividends paid	-664	-637
Acquisition of treasury shares	-	-24
Increase of liabilities	632	2,165
Decrease of liabilities	-620	-1,416
Cash and cash equivalent at the end of the period	1,043	915

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

Notes

Accounting policies

Sampo Group's consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS) adopted by the EU. The interim financial statements are presented in accordance with IAS 34 Interim Financial Reporting. In preparing the interim financial statements, the same accounting policies and methods of computation are applied as in the financial statements for 2011.

Sampo adopted various new or revised standards and interpretations at the beginning of the year 2012. These standards and interpretations are explained in Sampos accounting policies for the financial year 2011. The financial statements are available on Sampo's website at www.sampo.com/annualreport.

Comprehensive income statement by segment for nine months ended 30 September 2012

EURm	P&C insurance	Life insurance	Holding	Elimination	Group
Insurance premius written	3,500	678	-	-5	4,173
Net income from investments	283	455	35	-12	763
Other operating income	23	2	11	-12	25
Claims incurred	-2,141	-532	-	4	-2,669
Change in liabilities for insurance and investment contracts	-258	-425	-	1	-683
Staff costs	-416	-32	-15	-	-463
Other operating expenses	-362	-43	-9	12	-402
Finance costs	-14	-6	-61	11	-71
Share of associates' profit/loss	33	0	466	-	499
Profit before taxes	648	98	426	-1	1,172
Taxes	-151	-18	0	0	-169
Profit for the period	497	81	426	-1	1,003
Other comprehensive income for the period
Exchange differences	93	0	-	-	93
Available-for-sale financial assets	262	183	-5	-3	438
Cash flow hedges	-	-1	-	-	-1
Share of other comprehensive income of associates	-	-	26	-	26
Income tax relating to components	-67	-45	1	0	-111
of other comprehensive income Other comprehensive income
for the period, net of tax	288	137	22	-3	444
TOTAL COMPR EHENSIVE INCOME
FOR THE PERIOD	785	218	448	-4	1,447
Profit attributable to
Owners of the parent					1,003
Non-controlling interests					0
Total comprehensive income attri butable to
Owners of the parent					1,447
Non-controlling interests					0

Comprehensive income statement by segment for nine months ended 30 September 2011

EURm	P&C insurance	Life insurance	Holding	Elimination	Group
Insurance premius written	3,321	612	-	-	3,933
Net income from investments	229	-173	17	-13	60
Other operating income	24	1	11	-11	24
Claims incurred	-2,109	-630	-	-	-2,739
Change in liabilities for insurance and investment contracts	-272	371	-	-	99
Staff costs	-369	-28	-9	-	-406
Other operating expenses	-363	-40	-10	11	-401
Finance costs	2	-7	-47	10	-41
Share of associates' profit/loss	3	0	373	-	376
Profit before taxes	465	107	336	-3	906
Taxes	-122	-25	0	0	-146
Profit for the period	343	82	336	-2	759
Other comprehensive income for the period
Exchange differences	-52	0	-	-	-52
Available-for-sale financial assets	-333	-385	1	20	-697
Cash flow hedges	-	-2	-	-	-2
Share of other comprehensive income of associates	-	-	-29	-	-29
Income tax relating to components of other comprehensive income	87	101	0	-5	183
Other comprehensive income	-297	-286	-28	15	-597
for the period, net of tax
TOTAL COMPR EHENSIVE INCOME FOR THE PERIOD	46	-204	308	12	162
Profit attributable to
Owners of the parent					759
Non-controlling interests					0
Total comprehensive income attri butable to
Owners of the parent					162
Non-controlling interests					0

Consolidated balance sheet by segment at 30 September 2012

EURm	P&C insurance	Life insurance	Holding	Elimination	Group
Assets
Property, plant and equipment	17	5	8	-	30
Investment property	25	94	4	-4	120
Intangible assets	615	164	0	-	779
Investments in associates	363	0	6,513	-	6,876
Financial assets	11,619	5,274	2,957	-2,631	17,219
Investments related to unit-linked insurance contracts	-	3,608	-	-1	3,607
Tax assets	39	-	18	-5	52
Reinsurers' share of insurance liabilities	670	3	-	-	673
Other assets	1,647	126	47	-15	1,806
Cash and cash equivalents	847	132	91	-	1,070
Total assets	15,841	9,407	9,639	-2,655	32,232
Liabilities
Liabilities for insurance and investment contracts	10,164	4,159	-	-	14,323
Liabilities for unit-linked insurance and investment contracts	-	3,585	-	-1	3,584
Financial liabilities	467	107	2,325	-265	2,635
Tax liabilities	421	142	-	1	564
Provisions	29	-	-	-	29
Employee benefits	105	-	-	-	105
Other liabilities	999	186	120	-15	1,290
Total liabilities	12,185	8,179	2,445	-279	22,530
Equity
Share capital					98
Reserves					1,531
Retained earnings					7,134
Other components of equity					939
Equity attributable to owners of the parent					9,701
Non-controlling interests					0
Total equity					9,701
Total equity and liabilities					32,232

Consolidated balance sheet by segment at 31 December 2011

EURm	P&C insurance	Life insurance	Holding	Elimination	Group
Assets
Property, plant and equipment	16	6	4	-	26
Investment property	26	92	4	-4	118
Intangible assets	580	165	0	-	745
Investments in associates	340	0	6,253	-	6,593
Financial assets	10,754	5,168	3,465	-2,642	16,745
Investments related to unit-linked insurance contracts	-	3,053	-	-	3,053
Tax assets	52	-	17	-5	64
Reinsurers' share of insurance liabilities	528	3	-	-	532
Other assets	1,479	133	59	-12	1,659
Cash and cash equivalents	390	93	89	-	572
Total assets	14,165	8,713	9,891	-2,662	30,107
Liabilities
Liabilities for insurance and investment contracts	9,547	4,249	-	-	13,796
Liabilities for unit-linked insurance and investment contracts	-	3,054	-	-	3,054
Financial liabilities	528	164	2,346	-269	2,768
Tax liabilities	388	85	-	-	474
Provisions	37	-	-	-	37
Employee benefits	98	-	-	-	98
Other liabilities	695	151	126	-12	960
Total liabilities	11,294	7,703	2,472	-281	21,187
Equity
Share capital					98
Reserves					1,531
Retained earnings					6,844
Other components of equity					447
Equity attributable to owners of the parent					8,920
Non-controlling interests					0
Total equity					8,920
Total equity and liabilities					30,107

Other notes, eurm

1 Insurance premiums

P&C insurance	1–9/2012	1–9/2011
Premiums from insurance contracts
Premiums written, direct insurance	3,642	3,431
Premiums written, assumed reinsurance	98	82
Premiums written, gross	3,739	3,513
Ceded reinsurance premiums written	-239	-192
P&C insurance, total	3,500	3,321
Change in unearned premium provision	-300	-304
Reinsurers' share	42	32
Premiums earned for P&C insurance, total	3,242	3,049

Life insurance	1–9/2012	1–9/2011
Premiums from insurance contracts
Premiums from contracts with discretionary participation feature	135	123
Premiums from unit-linked contracts	270	238
Premiums from other contracts	1	1
Insurance contracts, total	406	362
Assumed reinsurance	1	2
Premiums from investment contracts
Premiums from contracts with discretionary participation feature	0	1
Premiums from unit-linked contracts	276	253
Investment contracts, total	276	254
Reinsurers' shares	-5	-5
Life insurance, total	678	612
Single and regular premiums from direct insurance
Regular premiums, insurance contracts	303	262
Single premiums, insurance contracts	103	100
Single premiums, investment contracts	276	254
Total	682	616
Elimination items between segments	-5	-
Group, total	4,173	3,933

2 Net income from investments >

P&C insurance	1–9/2012	1–9/2011
Financial assets
Derivative financial instruments	-6	-19
Financial assets designated as at fair value through p/l
Debt securities	6	2
Equity securities	1	2
Total	7	3
Loans and receivables	13	16
Financial asset available-for-sale
Debt securities	294	322
Equity securities	30	-38
Total	324	284
Total financial assets	337	284
Income from other assets	0	0
Fee and commission expense	-8	-6
Expense on other than financial liabilities	-2	-6
Effect of discounting annuities	-43	-43
P&C insurance, total	283	229

> 2 Net income from investments >

Life insurance, total	455	-173
Fee and commission income, net	6	7
Other assets	4	4
Total income from financial assets	445	-184
Total	196	192
Equity securities	70	82
Financial asset available-for-sale Debt securities	126	110
Loans and receivables	1	0
Total	218	-375
Other financial assets	-32	-16
Loans and receivables	1	2
Equity securities	192	-348
Debt securities	57	-13
Investments related to unit-linked contracts
Total	1	0
Equity securities	0	0
Debt securities	0	1
Financial assets designated as at fair value through p/l
Derivative financial instruments	29	-2
Financial assets
Life insurance	1–9/2012	1–9/2011

> 2 Net income from investments

Holding	1–9/2012	1–9/2011
Financial assets
Derivative financial instruments	11	4
Loans and other receivables	-1	0
Financial assets available-for-sale
Debt securities	20	8
Equity securities	5	5
Total	25	13
Other assets	0	0
Fee income, net	1	0
Holding, total	35	17
Elimination items between segments	-12	-13
Group, total	763	60

3 Claims incurred

P&C insurance	1–9/2012	1–9/2011
Claims paid	-2,296	-2,114
Reinsurers' share	76	103
Claims paid, net	-2,220	-2,010
Change in provision for claims outstanding	-2	-98
Reinsurers' share	80	-2
P&C insurance total	-2,141	-2,109
Life insurance	1–9/2012	1–9/2011
Claims paid	-520	-596
Reinsurers' share	4	3
Claims paid, net	-516	-592
Change in provision for claims outstanding	-16	-37
Reinsurers' share	0	0
Life insurance, total	-532	-630
Elimination items between segments	-4	-
Group, total	-2,669	-2,739

4 Staff costs

P&C insurance	1–9/2012	1–9/2011
Wages and salaries	-284	-265
Granted cash-settled share options	-13	-3
Pension costs	-60	-50
Other social security costs	-59	-51
P&C insurance, total	-416	-369
Life insurance	1–9/2012	1–9/2011
Wages and salaries	-23	-22
Granted cash-settled share options	-3	-1
Pension costs	-4	-4
Other social security costs	-2	-2
Life insurance, total	-32	-28
Holding	1–9/2012	1–9/2011
Wages and salaries	-6	-6
Granted cash-settled share options	-6	-2
Pension costs	-2	-1
Other social security costs	-1	0
Holding, total	-15	-9
Group, total	-463	-406

5 Intangible assets

P&C insurance	9/2012	12/2011
Goodwill	594	564
Other intangible assets	20	17
P&C insurance, total	615	580
Life insurance	9/2012	12/2011
Goodwill	153	153
Other intangible assets	11	12
Life insurance, total	164	165
Holding	9/2012	12/2011
Other intangible assets	0	0
Group, total	779	745

6 Financial assets >

P&C insurance	9/2012	12/2011
Derivative financial instruments (Note 7)	124	114
Financial assets designated as at fair value through p/l
Debt securities	30	155
Equity securities	2	2
Total	32	157
Loans and receivables
Loans	85	82
Deposits with ceding undertakings	1	1
Total	86	83
Financial assets available-for-sale
Debt securities	9,995	9,113
Equity securities	1,382	1,287
Total	11,378	10,400
P&C insurance, total	11,619	10,754
Life insurance	9/2012	12/2011
Derivative financial instruments (Note 7)	45	36
Financial assets designated as at fair value through p/l
Debt securities	46	50
Equity securities	1	1
Total	47	51
Loans and receivables
Loans	21	22
Deposits with ceding undertakings	1	1
Total	22	23
Financial assets available-for-sale
Debt securities	2,873	2,832
Equity securities *)	2,286	2,226
Total	5,160	5,058
Life insurance, total	5,274	5,168

*) of which investments in fixed income funds 251 233

> 6 Financial assets

Holding	9/2012	12/2011
Derivative financial instruments (Note 7)	65	29
Loans and receivables
Deposits	1	1
Financial assets available-for-sale
Debt securities	497	1,032
Equity securities	25	34
Total	522	1,066
Investments in subsidiaries	2,370	2,370
Holding, total	2,957	3,465
Elimination items between segments	-2,631	-2,642
Group, total	17,219	16,745

7 Derivative financial instruments

P&C insurance	9/2012			12/2011
		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	295	1	2	555	19	16
Foreign exchange derivatives	2,674	122	140	11,961	95	186
Equity derivatives	0	0	-	0	0	-
Total	2,969	123	142	12,516	114	202
Derivatives held for hedging
Fair value hedges	349	0	1	277	0	0
P&C Insurance, total	3,318	124	143	12,793	114	202

Life insurance	9/2012		12/2011
		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	778	23	2	1,750	21	0
Credit risk derivatives	541	-	1	558	10	-
Foreign exchange derivatives	1,131	7	5	912	3	25
Equity derivatives	-	-	-	29	0	0
Total	2,451	30	7	3,248	35	25
Derivatives held for hedging
Cash flow hedges	37	0	-	47	2	-
Fair value hedges	540	15	-	463	-	38
Total	577	15	-	510	2	38
Life insurance, total	3,028	45	7	3,758	36	64

Holding	9/2012			12/2011
		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	800	39	-	1,050	16	-
Credit risk derivatives	20	1	-	20	0	-
Foreign exchange derivatives	540	9	0	-	-	-
Equity derivatives	115	16	19	80	13	17
Total	1,475	65	20	1,150	29	17

8 Investments related to unit-linked insurance

Life insurance	9/2012	12/2011
Financial assets as at fair value through p/l
Debt securities	767	570
Equity securities	2,549	2,190
Loans and receivables	282	293
Derivatives	9	1
Life insurance, total	3,608	3,053
Elimination items between segments	-1	-
Group, total	3,607	3,053

9 Liabilities for insurance and investment contracts >

P&C insurance	09/2012	12/2011
Insurance contracts
Provision for unearned premiums	2,342	1,972
Provision for claims outstanding	7,821	7,576
P&C insurance, total	10,164	9,547
Reinsurers' share
Provision for unearned premiums	96	53
Provision for claims outstanding	574	476
P&C insurance, total	670	528

Life insurance	09/2012	12/2011
Insurance contracts
Liabilities for contracts with DPF
Provision for unearned premiums	2,119	2,219
Provision for claims outstanding	2,031	2,020
Total	4,150	4,239
Liabilities for contracts without DPF
Provision for unearned premiums	0	0
Provision for claims outstanding	1	0
Total	1	1
Total	4,151	4,240
Assumed reinsurance
Provision for unearned premiums	1	1
Provision for claims outstanding	1	1
Total	2	2
Insurance contracts, total
Provision for unearned premiums	2,120	2,220
Provision for claims outstanding	2,033	2,022
Total	4,153	4,242
Investment contracts
Liabilities for contracts with DPF
Provision for unearned premiums	6	7

> 9 Liabilities for insurance and investment contracts

Liabilities for insurance and investment contracts, total
Provision for unearned premiums	2,127	2,227
Provision for claims outstanding	2,033	2,022
Life insurance, total	4,159	4,249
Recoverable from reinsurers
Provision for unearned premiums	0	0
Provision for claims outstanding	3	3
Life insurance, total	3	3
Investment contracts do not include a provision for claims outstanding. Liability adequacy test does not give rise to supplementary claims. Exemption allowed in IFRS 4 Insurance contracts has been applied to investment contracts with DPF or contracts with a right to trade-off for an investment contract with DPF.
These investment contracts have been valued like insurance contracts.
Group, total	14,323	13,796

10 Liabilities from unit-linked insurance and investment contracts

Life insurance	09/2012	12/2011
Unit-linked insurance contracts	2,514	2,216
Unit-linked investment contracts	1,070	838
Life insurance, total	3,585	3,054
Elimination items between segments	-1	-
Group, total	3,584	3,054

11 Financial liabilities

P&C insurance	09/2012	12/2011
Derivative financial instruments (Note 7)	143	202
Subordinated debt securities
Subordinated loans	325	326
P&C insurance, total	467	528
Life insurance	09/2012	12/2011
Derivative financial instruments (Note 7)	7	64
Subordinated debt securities
Subordinated loans	100	100
Life insurance, total	107	164
Holding	09/2012	12/2011
Derivative financial instruments (Note 7)	20	17
Debt securities in issue
Commercial papers	593	652
Bonds	1,713	1,677
Total	2,306	2,329
Holding, total	2,325	2,346
Elimination items between segments	-265	-269
Group, total	2,635	2,768

12 Contingent liabilities and commitments >

P&C insurance P&C insurance		09/2012		12/2011
Off-balance sheet items
Guarantees		39		43
Other irrevocable commitments		7		11
Total		47		54
Assets pledged as collateral for liabilities or contingent liabilities
	09/2012	09/2012	12/2011	12/2011
Assets pledged as collateral	Assets pledged	Liabilities/ commitments	Assets pledged	Liabilities/ commitments
Cash at balances at central banks	10	8	10	8
Investments
- Investment securities	206	114	142	114
Total	216	122	152	122
Non-cancellable operating leases		09/2012		12/2011
Minimum lease payments
- not later than one year		37		41
- later than one year and not later than five years	111			105
- later than five years		107		120
Total		255		266

> 12 Contingent liabilities and commitments

Life insurance P&C insurance	09/2012	12/2011
Off-balance sheet items
Fund commitments	327	309
Other commitments
Acquisition of IT-software	1	1
Non-cancellable operating leases
Minimum lease payments
- not later than one year	2	2
- later than one year and not later than five years	3	5
Total	5	7
Holding P&C insurance	09/2012	12/2011

Off-balance sheet items
Fund commitments	1	1
Non-cancellable operating leases
Minimum lease payments
- not later than one year	1	1
- later than one year and not later than five years	3	3
- later than five years	-	0
Total	4	5

13 Result analysis of p&c insurance business

P&C insurance	1–9/2012	1–9/2011
Premiums earned	3,242	3,049
Claims incurred	-2,346	-2,300
Operating expenses	-552	-523
Other technical income and expenses	2	4
Allocated investment return transferred from the non-technical account	75	103
Technical result	421	334
Investment result	313	275
Allocated investment return transferred to the technical account	-118	-146
Other income and expenses	33	3
Operating result	648	465

14 Sampo plc's income statement and balance sheet (fas)

Income statement rance	1–9/2012	1–9/2011
Other operating income	11	12
Staff expenses	-15	-9
Depreciation and impairment	0	0
Other operating expenses	-10	-10
Operating profit	-14	-7
Finance income and expenses	198	320
Profit before appropriations and income taxes	184	312
Income taxes	-	-
Profit for the financial period	184	312
Balance sheet	9/2012	12/2011
ASSETS
Non-current assets
Intangible assets	0	1
Property, plant and equipment	4	4
Investments
Shares in Group companies	2,370	2,370
Receivables from Group companies	216	223
Shares in participating undertakings	5,557	5,557
Receivables from participating undertakings	131	325
Other shares and participations	29	38
Other receivables	150	484
Receivables	134	104
Cash and cash equivalents	91	89
TOTAL ASSETS	8,683	9,195
LIABILI TIES
Equity
Share capital	98	98
Fair value reserve	-2	2
Invested unrestricted equity	1,527	1,527
Other reserves	273	273
Retained earnings	4,158	4,142
Profit for the year	184	682
Total equity	6,238	6,724
Liabilities
Long-term	1,713	1,677
Short-term	733	795
Total liabilities	2,445	2,472
TOTAL LIABILI TIES	8,683	9,195

Sampo plc Fabianinkatu 27 00100 Helsinki, Finland Telephone +358 (0)10 516 0100 Fax +358 (0)9 228 90 434 or +358 (0)10 516 0016 www.sampo.com Q1