Remaining Outcomes

Remaining Outcomes

SAMPO PLC FINANCIAL STATEMENT RELEASE 11 February 2021 at 9:35 am

Sampo Group’s outcomes for 2020

Sampo Group’s largest enterprise space If had a particularly sturdy 12 months 2020 in all respects. The mixed ratio for the full-year 2020 was 82.1 per cent (84.5). That is the strongest mixed ratio If has ever reported. Due to the impairment lack of EUR 899 million and the gross sales lack of EUR 262 million on Nordea shares, Group’s reported revenue earlier than taxes for 2020 decreased to EUR 380 million (1,541). With out the extraordinary gadgets referring to the Nordea holding, the revenue earlier than taxes would have been EUR 1,541 million for 2020 and EUR 1,696 million for 2019. The entire complete earnings for the interval, taking modifications out there worth of belongings into consideration, amounted to EUR 434 million (1,565).

  • The earnings per share have been EUR 0.07 (2.04) and marked-to-market earnings per share have been EUR 0.65 (2.63). The earnings per share excluding the Nordea-related extraordinary gadgets have been EUR 2.16 per share (2.31). In accordance with the dividend coverage, this determine has been used as foundation when calculating the dividend proposal. The return on fairness for the Group amounted to three.1 per cent (12.0) for 2020. The web asset worth per share on 31 December 2020 was EUR 19.82 (20.71).

  • Sampo plc’s Board of Administrators has right now, after making use of administration judgement, determined to impair the guide worth of Nordea to EUR 7.50 per share from EUR 8.90 per share in Sampo Group’s consolidated accounts on the finish of December 2020.

  • Sampo plc’s Board of Administrators has proposed to the Annual Normal Assembly to be held on 19 Could 2021 a dividend of EUR 1.70 per share (1.50). The proposed dividend fee quantities in complete to EUR 944 million (833).

  • If phase’s revenue earlier than taxes rose to EUR 901 million (884) the insurance coverage technical end result improved to EUR 811 million (685). The return on fairness remained at a excessive stage at 33.3 per cent (34.5). Premiums grew in all enterprise areas within the Nordics amounting to nearly 5 per cent with fastened currencies. If paid a dividend of SEK 6.3 billion (roughly EUR 600 million) to Sampo plc in December 2020.

  • Topdanmark phase’s revenue earlier than taxes for 2020 was EUR 167 million (238). The mixed ratio amounted to 85.2 per cent (82.1) in 2020. The expense ratio was 16.2 per cent (16.0).

  • The Board of Administrators of Topdanmark will advocate to the AGM on 25 March 2021 that in complete a dividend of DKK 20 per share can be paid. If accredited, Sampo plc’s share of the dividend fee is EUR 113 million.

  • Sampo holds 70 per cent of Hastings Group (Consolidated) Restricted, which turned Sampo plc’s subsidiary and types a separate phase within the Group’s monetary reporting as of 16 November 2020. The consolidated final six weeks of 2020 comprise quite a few one-off expense gadgets.

  • Sampo’s share of Nordea’s internet revenue for 2020, excluding the accounting impacts of the sale of Nordea shares in November 2020 and the impairment of the holding in Sampo Group’s consolidated accounts 2020, amounted to EUR 429 million (290). The reported loss after these measures was EUR -734 million (290). Nordea is progressing effectively in direction of assembly its 2022 monetary targets.

  • On 4 February, Nordea’s Board proposed a dividend of EUR 0.39 per share for 2020. As well as, the Board will resolve on 18 February to distribute EUR 0.07 per share as the primary instalment of the delayed 2019 dividend of EUR 0.40 per share. The Board additionally proposes that the Annual Normal Assembly authorize it to pay out the remaining a part of the 2019 dividend (EUR 0.33 per share) and the 2020 dividend (EUR 0.39 per share) – a complete of EUR 0.72 per share – after September 2021, in step with the European Central Financial institution suggestion. Sampo plc’s share of the proposed dividend funds is EUR 508 million.

  • The revenue earlier than taxes for the phase Mandatum was EUR 154 million (280). The with-profit reserves continued to lower as deliberate throughout 2020. The reserves associated to the upper ensures of 4.5 and three.5 per cent decreased by EUR 268 million to EUR 1.9 billion on the finish of 2020. Mandatum Life has supplemented the low cost fee reserve and the speed used for 2021 – 2023 is 0.25 per cent. This had a unfavourable affect of EUR 77 million on the end result. The return on fairness amounted to 14.4 per cent (23.5). Mandatum Life’s Board proposes a dividend of EUR 200 million to Sampo plc in February 2021.

KEY FIGURES

2020

2019

Change, %

10-12/
2020

10-12/
2019

Change, %

EURm

Revenue earlier than taxes *)

380

1,541

-75

-675

468

If

901

884

2

285

228

25

Topdanmark

167

238

-30

82

58

41

Hastings

-16

-16

Associates *)

-722

298

-1,030

143

Mandatum

154

280

-45

54

68

-20

Holding (excl. Associates)

-103

-4

-50

-29

69

Revenue for the interval

112

1,237

-91

-769

389

Change

Change

Earnings per share, EUR

0.07

2.04

-1.97

-1.44

0.66

-2.10

EPS (with out eo. gadgets) EUR

2.16

2.31

-0.15

EPS (based mostly on OCI) EUR

0.65

2.63

-1.88

-0.47

1.19

-1.63

NAV per share, EUR

19.82

20.71

-0.89

Common variety of workers (FTE)

13,227

9,813

3,414

Group solvency ratio, %

176

174

2

RoE, %

3.1

12.0

-8.9

*) the reported loss associated to the sale of Nordea shares in November 2020 and the impairment of Nordea holding made within the consolidated Group accounts 2020, collectively EUR 1,161 million is included within the 2020 determine. The comparability determine features a valuation lack of EUR 155 million associated to Nordea shares.

The figures on this report haven’t been audited.

Sampo follows the disclosure process enabled by the Finnish Monetary Supervisory Authority and hereby publishes its Full-12 months Monetary Report connected as a PDF file to this inventory trade launch. The Full-12 months Monetary Report can be obtainable at www.sampo.com/end result.

Alternate charges utilized in reporting

1-12/2020

1-9/2020

1-6/2020

1-3/2020

1-12/2019

1-9/2019

EURSEK

Revenue assertion (common)

10.4882

10.5622

10.6621

10.6649

10.5853

10.5679

Stability sheet (at finish of interval)

10.0343

10.5713

10.4948

11.0613

10.4468

10.6958

DKKSEK

Revenue assertion (common)

1.4066

1.4157

1.4280

1.4279

1.4183

1.4158

Stability sheet (at finish of interval)

1.3485

1.4197

1.4813

1.4813

1.3982

1.4326

NOKSEK

Revenue assertion (common)

0.9778

0.9857

0.9932

1.0195

1.0749

1.0816

Stability sheet (at finish of interval)

0.9584

0.9523

0.9618

0.9610

1.0591

1.0809

EURDKK

Revenue assertion (common)

7.4544

7.4581

7.4648

7.4714

7.4661

7.4644

Stability sheet (at finish of interval)

7.4409

7.4462

7.4526

7.4674

7.4715

7.4662

EURGBP

Revenue assertion (common)

0.8892

Stability sheet (at finish of interval)

0.8990

GROUP CEO’S COMMENT

Regardless of the difficult backdrop, 2020 has been a profitable 12 months for Sampo Group. I’m significantly happy with the sturdy efficiency delivered by our P&C operations. If P&C has been the standout performer, with a record-low mixed ratio of 82.1 per cent and premium development of 5 pe cent driving a 17 per cent year-on-year enhance within the technical end result. Operational momentum was additionally sturdy, as retention stood at 90 per cent and the variety of If Personal clients grew for the third consecutive 12 months to over 3 million. This demonstrates the energy of our more and more digital enterprise, which has benefitted from clients utilizing on-line channels through the COVID-19 pandemic.

Strategically, Sampo’s focus in 2020 has been on laying the inspiration for future development in underwriting earnings. We’ve continued to speculate closely within the digitalisation of our Nordic P&C operations to make sure that these proceed to be the only option for patrons, whereas the acquisition of Hastings Group supplies a brand new avenue for long run development. As a lean, digital insurer, I see Hastings not solely as a long-term winner within the UK private strains P&C insurance coverage market but in addition imagine it might add worth to our Nordic operations. I count on the acquisition will ship vital worth after a interval of focussed operational work, simply as If has executed.

The sale of Nordea shares in November 2020, which lowered Sampo’s stake by 4 proportion factors to fifteen.87 per cent, represented one other vital step in Sampo’s technique to focus extra on P&C insurance coverage. Reported losses associated to the sale and a This autumn impairment within the guide worth of the residual stake had a unfavourable affect of EUR 1.2 billion on group internet earnings. As these accounting gadgets don’t have an effect on our dividend capability, we now have excluded them from our DPS calculation.

Nonetheless, regulatory and macroeconomic uncertainty have continued to weigh in the marketplace worth of Nordea, regardless of a notable enchancment in operational efficiency. The turnaround in enterprise volumes and elevated value effectivity delivered by Nordea in 2020 illustrated strong operational momentum, whereas its sturdy stability sheet helps engaging capital returns as soon as regulatory restrictions are lifted. Sampo continues to see upside in Nordea’s 2022 plans however the group will, over time, discover choices to cut back its publicity to banking.

Sampo navigated its funding portfolio effectively by means of the volatility skilled in 2020, delivering a return of three.5 per cent. The restoration in monetary markets within the second half of the 12 months supported returns however has left an funding surroundings wherein it’s tough to deploy cash at engaging returns, additional emphasising the necessity to spend money on our underwriting capabilities.

Trying forward, the sturdy positioning and efficiency of Sampo Group’s P&C operations over 2020 offers me confidence in our technique and our means to ship worth for our shareholders. We count on P&C underwriting outcomes to stay strong and proceed to work towards a extra focussed group construction.

Sampo goals to ship engaging and sustainable dividends to shareholders. The introduction of a brand new dividend coverage to pay out not less than 70 per cent of earnings (excluding extraordinary gadgets) in February 2020 represented an vital step in reaching this goal. The Sampo Board has proposed a 2020 DPS of EUR 1.70 (2019: 1.50), representing 79 per cent of the group’s EPS excluding Nordea-related reported losses of EUR 2.16. Except for a small anticipated contribution from Nordea, this dividend is funded solely by our insurance coverage operations.

I sit up for presenting our technique and monetary plans in additional element on the upcoming Capital Markets Day on 24 February 2021.

Torbjörn Magnusson
Group CEO and President

FOURTH QUARTER 2020 IN BRIEF

Sampo Group’s revenue earlier than taxes for the fourth quarter of 2020, excluding the reported loss associated to Nordea, amounted to EUR 486 million. The reported end result for the quarter was EUR -675 million (468). The earnings per share was EUR -1.44 (0.66) and the mark-to-market earnings per share EUR -0.47 (-0.22). The web asset worth per share elevated EUR 1.19 through the fourth quarter of 2020 and amounted to EUR 19.82.

If’s mixed ratio for the fourth quarter of 2020 was 81.3 per cent (85.0). The revenue earlier than taxes amounted to EUR 285 million (228). The technical revenue was EUR 216 million (165).

Topdanmark’s mixed ratio for the fourth quarter was 83.7 per cent (87.1) and the revenue earlier than taxes EUR 82 million (58).

Sampo solely consolidated Hastings for six weeks and reported a loss earlier than taxes of EUR 16 million. The loss consists of one-off gadgets associated to the closing of the transaction, e.g. stamp duties of EUR 9 million.

Sampo’s share of Nordea’s fourth quarter 2020 internet revenue was EUR 128 million. The loss on sale of Nordea shares in November 2020 and the impairment on the finish of 2020 resulted in a lack of EUR 1,033 million (143).

The revenue earlier than taxes for Mandatum amounted to EUR 54 million (68). The low cost fee used for 2021 – 2023 was lowered to 0.25 per cent, which had a unfavourable affect of EUR 77 million on the end result.

EFFECTS OF COVID-19 ON SAMPO GROUP

Throughout the COVID-19 pandemic, precedence in Sampo Group has been given to sustaining service stage and to supporting clients in the very best means within the modified working circumstances. Regardless of the difficult state of affairs, all of the subsidiaries have been in a position to provide regular service stage and buyer satisfaction has remained at a excessive stage, in Mandatum Life the client satisfaction even reached a brand new file excessive.

There have been no COVID-19 associated lay-offs amongst Sampo Group personnel and not one of the group firms has required any authorities funding assist through the COVID-19 pandemic.

If

Claims value for 2020 was negatively impacted from journey insurance coverage insurance policies primarily following imposed journey restrictions from governments as a consequence of COVID-19. On the finish of the reporting interval, the overall variety of reported claims amounted to roughly 50,000 claims comparable to a gross claims value of EUR 35 million, principally in BA Personal and Norway. For this occasion, If had a reinsurance cowl with a internet retention of roughly EUR 10 million.

Authorities restrictions and usually low exercise stage had a optimistic impact on claims frequency, affecting particularly motor insurance coverage. The impact of COVID-19 on If’s danger ratio is roughly 4 proportion factors optimistic within the fourth quarter and roughly 3 proportion factors for the total 12 months. Going ahead restore prices may enhance as a consequence of a scarcity of fabric, delays in transportation of fabric or scarcity of personnel following applied authorities journey restrictions.

Throughout the fourth quarter premium quantity was barely impacted by the COVID-19 state of affairs, primarily by journey insurance coverage in Personal enterprise and with continued unfavourable affect associated to decommissioning of automobiles and decrease sums insured within the Business phase, however as a complete the consequences weren’t very vital. There’s nonetheless some uncertainty with regard to doable lagging results to premiums by means of, for instance, decrease insurable sums and decrease turnover within the company segments.

Topdanmark

Topdanmark has reported on the impacts of the COVID-19 pandemic in its announcement of 2020 annual outcomes revealed on 22 January 2021. The report is obtainable at www.topdanmark.com.

Hastings

General, motor claims frequencies lowered through the 12 months, reflecting lowered motorcar utilization following nationwide and native restrictions ensuing from COVID-19. Declare severities elevated as a consequence of interruptions within the restore networks and provide of elements attributable to COVID-19 and elevated automotive rental prices, with repairs usually taking longer than anticipated.

Hastings doesn’t present insurance coverage for any enterprise strains which have been negatively impacted by COVID-19, comparable to journey or enterprise interruption.

Mandatum Life

The bizarre state of affairs induced Mandatum Life to vary its focus from new gross sales to present clients for a number of months ranging from spring 2020 and this, along with the unsure capital market state of affairs, was mirrored within the premium earnings in 2020 as premiums didn’t fairly meet the file stage of the comparability 12 months.

The volatility of claims prices didn’t differ from the conventional stage. All in all, trying on the complete 12 months of 2020, the COVID-19 associated impacts on the corporate’s enterprise remained small.

Funding actions

Within the fourth quarter, significantly in November and December, excellent news in regards to the COVID-19 vaccines and continued central financial institution stimulus sparked sturdy will increase in fairness values. Whereas fairness portfolios introduced one of the best funding returns, fastened earnings investments additionally generated a strong return within the fourth quarter, which gave Sampo a great alternative to cautiously repatriate funding earnings. Trying on the Group’s complete funding end result reported for 2020, a good portion of the excellent returns got here throughout the previous couple of months of the 12 months.

Solvency positions

The solvency positions of Sampo Group and its subsidiaries have been sturdy on the finish of 2020. Extra data is obtainable within the part Solvency.

BUSINESS AREAS

If

The revenue earlier than taxes for 2020 for the If phase amounted to EUR 901 million (884). The entire complete earnings for the interval after tax was EUR 866 million (836).

The mixed ratio for 2020 improved to 82.1 p.c (84.5) and the danger ratio to 60.7 per cent (62.7). The fee ratio was 21.5 per cent (21.8). The impact of COVID-19 on the mixed ratio was roughly 3 proportion factors optimistic in January-December 2020 and 4 proportion factors within the fourth quarter.

In 2020 EUR 186 million (190) was launched from the technical reserves referring to prior 12 months claims. The return on fairness was 33.3 per cent (33.4) and the honest worth reserve on 31 December 2020 amounted to EUR 557 million (457).

The technical end result amounted to EUR 811 million (685) and the insurance coverage margin (technical lead to relation to internet premiums earned) was 18.2 per cent (15.9).

Giant claims have been EUR 88 million worse than anticipated in 2020. In BA Business, they have been EUR 3 million worse and in BA Industrial EUR 85 million worse than anticipated. The claims associated to the landslide in Gjerdrum, Norway, on the finish of December 2020 amounted to EUR 18 million.

The Swedish low cost fee for the annuity reserves was -0.72 per cent (-0.77) on the finish of 2020 and had a optimistic impact of EUR 5 million on the full-year outcomes. The low cost fee utilized in Finland, was lowered to 0.75 per cent within the third quarter and had a unfavourable affect of EUR 51 million.

Gross written premiums amounted to EUR 4,823 million (4,675) in 2020. Excluding the foreign money results, premiums grew 4.7 per cent (5.7) in January – December 2020. Premiums grew in all markets and enterprise areas.

Inside enterprise areas, the expansion was highest in BA Industrial, at 10.4 per cent, adopted by BA Business at 4.2 per cent. In BA Personal, the expansion was 3.7 per cent. Geographically, premiums grew 10.6 per cent in Denmark, 5.0 per cent in Norway, 4.4 per cent in Sweden and a pair of.5 per cent in Finland.

Buyer retention continued to be excessive and steady throughout all enterprise areas. In BA Personal, the client base elevated by 1 per cent.

If’s solvency place is described within the part Solvency.

Topdanmark

On the finish of 2020 Sampo plc held 41,997,070 Topdanmark shares, comparable to 46.7 per cent of all shares and 48.0 per cent of associated voting rights within the firm. The market worth of the holding was EUR 1,491 million on 31 December 2020.

The Board of Administrators of Topdanmark will advocate to the AGM on 25 March 2021 {that a} dividend of DKK 1,035 million can be distributed for 2020, representing DKK 11.5 per share. As well as, the Board of Administrators will advocate to the AGM that the remaining dividend of DKK 8.5 per share (DKK 765 million) for 2019 can be distributed as a unprecedented dividend. Given the AGM approval, the overall dividend distributed in reference to the AGM can be DKK 1,800 million or DKK 20 per share.

Topdanmark’s revenue earlier than taxes for 2020 amounted in Sampo Group’s revenue and loss account to EUR 167 million (238). The mixed ratio amounted to 85.2 per cent (82.1) in 2020. The expense ratio was 16.2 per cent (16.0). The rise within the expense ratio is impacted by excessive gross sales by means of new distribution accomplice Nordea, and COVID-19 associated bills.

Additional data on Topdanmark A/S and its January-December 2020 result’s obtainable at www.topdanmark.com.

Hastings

Sampo plc owns 70 per cent of the shares of Hastings and the Group began to consolidate the UK insurance coverage group as a subsidiary as of 16 November 2020. In Sampo Group’s consolidated accounts Hastings is reported as a separate phase. Hastings revenue and loss gadgets are acknowledged line-by-line within the Group’s consolidated monetary statements.

Throughout the subsequent seven and half years the annual amortization of intangibles will quantity to roughly EUR 40 million, i.e. EUR 10 million per quarter. The brief interval consolidated in 2020 additionally incorporates gadgets which aren’t recurring.

Hastings’ agility and digital functionality has enabled operations to proceed with minimal interruption regardless of the unprecedented disruption to UK society and the economic system on account of COVID-19. Progress continues on its strategic initiatives, delivering worthwhile development, with the overall variety of buyer insurance policies rising 8 per cent to three.1 million. The expansion in buyer insurance policies has been supported by continued sturdy retention charges all through 2020. Dwelling insurance coverage buyer insurance policies additionally proceed to develop, up 28 per cent to 0.3 million.

The complete 12 months 2020 loss ratio lowered in comparison with 2019 as a consequence of a discount of claims frequencies ensuing from the lockdown restrictions, partially offset by inflation in the price of claims. The reserving place as at 31 December 2020 displays the elevated claims uncertainties attributable to the pandemic.

Hastings continues to construct on its digital capabilities, leading to extra clients selecting to make contact by means of the Cell App. This has had over 1.2 million downloads up to now and buyer engagement and suggestions on the App continues to be optimistic. Hastings’ claims transformation initiatives proceed to develop and progress, with initiatives spanning unintentional injury, third social gathering property injury and bodily damage.

Nordea

On 31 December 2020 Sampo plc held 642,924,782 Nordea shares comparable to a holding of 15.87 per cent. Sampo’s holding decreased 4 proportion factors after Sampo efficiently offered 162 million Nordea shares in an accelerated book-build providing to institutional traders on 10 November 2020.

The typical buy worth per share amounted to EUR 6.46. Nordea’s guide worth within the Group accounts is, after the impairment, EUR 7.50 per share. As disclosed on 11 February 2021, the guide worth was impaired from EUR 8.90 per share by a choice by Sampo’s Board based mostly on administration judgement. Nordea’s closing worth as at 31 December 2020 was EUR 6.67.

Sampo’s share of Nordea’s 2020 revenue earlier than taxes, excluding the accounting impacts of the sale of Nordea shares in 10 November 2020 and the impairment of the holding in Sampo Group’s consolidated accounts 2020, amounted to EUR 429 million (290).

On 4 February, Nordea’s Board proposed a dividend of EUR 0.39 per share for 2020. As well as, the Board will resolve on 18 February to distribute EUR 0.07 per share as the primary instalment of the delayed 2019 dividend of EUR 0.40 per share. The Board additionally proposes that the Annual Normal Assembly authorise it to pay out the remaining a part of the 2019 dividend (EUR 0.33 per share) and the 2020 dividend (EUR 0.39 per share) – a complete of EUR 0.72 per share – after September 2021, in step with the European Central Financial institution suggestion.

Additional data on Nordea’s full-year outcomes 2020 is obtainable at www.nordea.com.

Mandatum Life

The revenue earlier than taxes for Mandatum Life in 2020 amounted to EUR 154 million (280). The entire complete earnings for the interval after tax reflecting the modifications in market worth of belongings, was EUR 213 million (308). The return on fairness amounted to 14.4 per cent (23.5).

The expense end result elevated to EUR 27 million (24). The danger end result elevated to EUR 38 million (35).

Premium earnings on personal account was EUR 1,051 million (1,596), of which unit-linked premiums have been EUR 960 million (1,476). In 2019 each premium earnings and claims paid included round EUR 400 million one-off gadgets attributable to modifications within the tax remedy of life insurance coverage merchandise.

The web funding earnings, excluding earnings on unit-linked contracts amounted to EUR 189 million (358). The web earnings from unit-linked contracts was EUR 397 million (908). Throughout 2020 the honest worth reserve elevated to EUR 534 million (438).

The entire technical reserves of Mandatum Life Group elevated to EUR 12.3 billion (12.0). The unit-linked reserves elevated to highest ever EUR 8.8 billion (8.1) on the finish of 2020. The unit-linked reserves corresponded to 72 per cent (67) of complete technical reserves.

The with-profit reserves decreased as deliberate throughout 2020 and amounted to EUR 3.5 billion (3.9) on 31 December 2020. The with-profit reserves associated to the upper ensures of 4.5 and three.5 per cent decreased by EUR 268 million to EUR 1.9 billion on the finish of 2020.

Mandatum Life has total supplemented its technical reserves with a complete of EUR 218 million (230). The determine doesn’t take into consideration the reserves referring to the segregated fund. The low cost fee used for 2021 – 2023 is 0.25 per cent. The brand new low cost charges for years 2022 and 2023 had a unfavourable affect of EUR 77 million on the end result.

The low cost fee of segregated liabilities is 0.0 per cent and the low cost fee reserve of the segregated liabilities amounted to EUR 232 million (263).

Mandatum Life’s solvency place is described within the part Solvency.

Holding

Holding phase’s revenue earlier than taxes for January – December 2020 decreased to EUR -826 million (139), together with two Nordea-related one-off gadgets of EUR 1,161 million. The comparability interval features a EUR -155 million valuation loss incurred in reference to distribution of Nordea shares as dividends to Sampo shareholders within the third quarter of 2019.

After the impairment, Sampo plc’s holding in Nordea was booked within the consolidated stability sheet on 31 December 2020 at EUR 4.8 billion, i.e. EUR 7.50 per share. The market worth of the holding was EUR 4.3 billion, i.e. EUR 6.67 per share, on 31 December 2020.

Together with the impairment loss and the gross sales loss on Nordea shares, Sampo’s share of earnings of related firms Nordea and Nordax Holding for January – December 2020 amounted to EUR -722 million. The one-off gadgets excluded, the share of the earnings of the associates was EUR 439 million (298), of which Nordea’s share was EUR 427 million (290) and Nordax’s share was EUR 12 million (8).

OTHER DEVELOPMENTS

Disposal of Nordea shares

On 10 November 2020, Sampo offered 162 million Nordea shares, 4.0 per cent of the excellent shares, in an accelerated bookbuild providing to institutional traders. The transaction worth was EUR 7.25 per share, leading to gross proceeds of EUR 1,174 million.

After the transaction, Sampo held 642,924,782 Nordea shares, corresponding to fifteen.9 per cent of all shares and voting rights in Nordea.

Sampo incurred a reported lack of EUR 262 million from the transaction for the final quarter of 2020. Nordea’s standing as an related firm of Sampo remained unchanged.

In reference to the providing, Sampo entered right into a lock-up endeavor, below which it has, topic to sure exceptions, agreed to not promote any Nordea shares for a interval ending at 9 Could 2021.


Hastings acquisition

The provide on Hastings was being applied by means of a court-sanctioned scheme of association below English regulation, which was accredited by the requisite majorities on the Hastings shareholder conferences on 29 September 2020. All the circumstances referring to regulatory and antitrust approvals have been happy by 27 October 2020 and the scheme was efficient following completion of the Courtroom Listening to process held on 13 November 2020.

The jointly-owned firm of Sampo and RMI, at the moment often known as Hastings Group (Consolidated) Restricted, turned Sampo plc’s subsidiary and fashioned a separate phase within the Group’s monetary reporting as of 16 November 2020. Hastings’s revenue and loss gadgets have been acknowledged line-by-line within the Group’s consolidated monetary statements.


Modifications in Group Administration

After the tip of the reporting 12 months on 20 January 2021 Ivar Martinsen left his place as Head of BA Business and the membership of Sampo Group Govt Committee.


Remuneration

In 2020, a complete of EUR 50 million (41), together with social prices, was paid as short-term incentives. Throughout the identical interval, a complete of EUR 6 million (18), together with social prices, was paid from long-term incentive schemes. The outcomes affect of the long-term incentive schemes in pressure in 2020 was EUR 2 million (12).


Shareholders

Throughout 2020 Sampo plc acquired altogether 9 notifications of change in holding pursuant to Chapter 9, Part 5 of the Securities Markets Act, in response to which the overall variety of Sampo A shares or associated voting rights owned by BlackRock, Inc. (tax ID 32-0174421) and its funds straight or by means of monetary devices had decreased beneath 5 per cent or elevated above 5 per cent.

After the tip of the reporting interval Sampo plc had acquired 4 notifications of change in holding pursuant to Chapter 9, Part 5 of the Securities Markets Act, from BlackRock, Inc.

The main points of the notifications can be found at www.sampo.com/flaggings.


Inside dividends

Mandatum Life’s Board proposes a dividend of EUR 200 million to Sampo plc in February 2021.

Following the Danish FSA’s suggestion, Topdanmark’s Board of Administrators selected 23 March 2020 to postpone paying out half of the deliberate dividend for 2019 till the AGM on 25 March 2021. On 22 January 2021 Topdanmark’s Board of Administrators really useful to the AGM {that a} dividend of DKK 1,035 million can be distributed for 2020, representing DKK 11.5 per share. The Board of Administrators additionally really useful to the AGM that the remaining dividend for 2019 of DKK 765 million can be distributed as a unprecedented dividend. Given the AGM approval, the overall dividend distributed in reference to the AGM can be DKK 1,800 million or DKK 20 per share. If the AGM approves the proposals, Sampo plc’s share of the dividends quantities to EUR 113 million.

On 4 February, Nordea’s Board proposed a dividend of EUR 0.39 per share for 2020. As well as, the Board will resolve on 18 February to distribute EUR 0.07 per share as the primary instalment of the delayed 2019 dividend of EUR 0.40 per share. The Board additionally proposes that the Annual Normal Assembly authorize it to pay out the remaining a part of the 2019 dividend (EUR 0.33 per share) and the 2020 dividend (EUR 0.39 per share) – a complete of EUR 0.72 per share – after September 2021, in step with the European Central Financial institution suggestion. Sampo plc’s share of the proposed dividends is EUR 508 million.

If usually pays its dividend in direction of the tip of the calendar 12 months.


Scores

Related rankings for Sampo Group firms on 31 December 2020 are offered within the desk beneath.

Rated firm

Moody’s

Normal & Poor’s

Ranking

Outlook

Ranking

Outlook

Sampo plc – Issuer Credit score Ranking

A3

Secure

A

Secure

If P&C Insurance coverage Ltd – Insurance coverage Monetary Energy Ranking

A1

Secure

A+

Secure

If P&C Insurance coverage Holding Ltd (publ)

– Issuer Credit score Ranking

A

Secure

Mandatum Life Insurance coverage Firm Ltd – Issuer Credit score Ranking

A+

Secure

As well as, Hastings Group (Finance) plc has an excellent senior bond of GBP 250 million for which Fitch has an Issuer Default Ranking (IDR) of A- and a steady outlook.

Solvency

Group solvency

Sampo Group calculates its group solvency below the Solvency II guidelines. On this calculation Nordea is handled as an fairness funding. In keeping with the Solvency II directive, Sampo Group’s solvency ratio amounted to 176 per cent (174) on the finish of December 2020.


Solvency place within the subsidiaries

The insurance coverage subsidiaries apply Solvency II guidelines of their regulatory solvency calculations. If Group firms use both partial inside fashions or commonplace mannequin for calculation of their solo solvency place. Mandatum Life studies in accordance with commonplace components for Solvency II. Topdanmark makes use of a partial inside mannequin to report its stand-alone solvency place.

Hastings is totally consolidated into the Sampo Group’s Personal funds and SCR. As a stand-alone entity AICL, Hastings underwriting firm, calculates its solo solvency place in response to Solvency II guidelines.

If Group has an A+ score from S&P which is able to proceed to require considerably extra capital than the usual components and due to this fact the usage of commonplace components has no sensible implications on If Group’s capital place. On 31 December 2020 If Group’s Solvency II capital requirement below commonplace components amounted to EUR 1,916 million (1,890) and personal funds to EUR 3,623 million (3,592). The solvency ratio amounted to 189 per cent (196).

The S&P A+ score capital requirement for If Group amounted to EUR 3,083 million (3,083) on 31 December 2020 and the capital base was EUR 3,234 million (3,151).

Topdanmark calculates most of its non-life and well being dangers and their respective solvency capital requirement by making use of a partial inside mannequin accredited by the DFSA. Different dangers are calculated by the Solvency II SCR commonplace components. Topdanmark’s solvency ratio below the partial inside mannequin was 170 per cent (177) on the finish of December 2020.

Mandatum Life’s solvency ratio after transitional measures amounted to 188 per cent (194) on 31 December 2020. Personal funds have been EUR 2,308 million (2,290) and the Solvency Capital Requirement (SCR) was EUR 1,230 million (1,182). With out transitional measures, personal funds would have amounted to EUR 1,977 million (1,929) and the solvency capital requirement would have amounted to EUR 1,245 million (1,212), resulting in a solvency ratio of 159 per cent (159).


Debt financing

Sampo plc’s debt financing on 31 December 2020 amounted to EUR 3,934 million (3,908) and curiosity bearing belongings to EUR 1,529 million (1,725). Curiosity bearing belongings embrace financial institution accounts, fastened earnings devices and EUR 324 million (359) of hybrid capital and subordinated debt devices issued by the subsidiaries and related firms.

On the finish of 2020 the curiosity bearing internet debt of Sampo plc amounted to EUR 2,405 million (2,183). The web debt calculation takes into consideration curiosity bearing belongings and liabilities. Gross debt to Sampo plc’s fairness was 53 per cent (51) and monetary leverage 34 per cent (34).

On 28 Could 2020 Sampo plc repaid SEK 3,000 million senior notes maturing on that date.

On 3 September 2020 Sampo plc issued 32-nc-12 Tier 2 notes of EUR 1,000 million maturing on 3 September 2032.

On 1 December Sampo plc redeemed EUR 655 million excellent senior notes maturing on 18 September 2023, 16 September 2021, 23 Could 2022 and 30 Could 2025 in a money tender provide.

On 31 December 2020 monetary liabilities in Sampo plc’s stability sheet consisted of issued senior bonds and notes of EUR 2,448 million (3,414). As well as, Sampo plc has issued subordinated notes of EUR 1,486 million (494). The quantity of subordinated notes elevated as a result of financing of the acquisition of Hastings. No CPs have been excellent (0). The typical curiosity, internet of rate of interest swaps, on Sampo plc’s debt as of 31 December 2020 was 1.6 per cent (1.2).

Extra data on Sampo Group’s excellent debt points is obtainable at www.sampo.com/debtfinancing.

OUTLOOK

Outlook for 2021

Sampo Group’s insurance coverage companies are anticipated to report good insurance coverage technical outcomes for 2021, though the mark-to-market element of funding returns can be considerably influenced by capital markets’ developments, significantly in life insurance coverage.

If P&C is anticipated to achieve a mixed ratio of beneath 85 per cent in 2021.

With regard to Topdanmark, reference is made to the revenue forecast mannequin that the corporate publishes on a quarterly foundation.

Hastings stays effectively positioned and expects to additional enhance its loss ratio and total outcomes, regardless of some market uncertainty from COVID-19, regulatory reform and Brexit.

Nordea continues to concentrate on creating nice buyer experiences, rising earnings and enhancing operational effectivity. The outcomes are progressing effectively in direction of 2022 targets.


The most important dangers and uncertainties for the Group within the near-term

In its present day-to-day enterprise actions Sampo Group is uncovered to varied dangers and uncertainties, primarily by means of its individually managed main enterprise items.

Main dangers affecting the Group firms’ profitability and its variation are market, credit score, insurance coverage and operational dangers which are quantified independently by the key enterprise items. On the group stage, sources of dangers are the identical, though they don’t seem to be straight additive as a result of results of diversification.

Uncertainties within the type of main unexpected occasions could have a direct affect on the Group’s profitability. The identification of unexpected occasions is less complicated than the estimation of their possibilities, timing, and potential outcomes. At present, the COVID-19 pandemic and the measures taken to comprise the virus are inflicting vital unfavourable results on economies and uncertainties on capital market improvement. There are additionally quite a few extensively recognized macroeconomic, political and different sources of uncertainty which might, in numerous methods, have an effect on the monetary companies business in a unfavourable method.

Different sources of uncertainty are unexpected structural modifications within the enterprise surroundings and already recognized tendencies and potential wide-impact occasions. These exterior drivers could have a long-term affect on how Sampo Group’s enterprise can be performed. Examples of recognized tendencies are technological developments in areas comparable to synthetic intelligence and digitalization, demographic modifications, and sustainability points that will even have profound results on firms throughout the monetary sector.


DIVIDEND PROPOSAL

The mother or father firm’s distributable capital and reserves totaled EUR 7 250 153 463,79 of which revenue for the monetary 12 months 2020 was EUR 699 633 592,61.

The Board proposes to the Annual Normal Assembly a dividend of EUR 1.70 per share to the corporate’s 555,351,850 shares. The dividends to be paid are EUR 944,098,145.00 in complete. The rest of the funds are left within the fairness.

The dividend can be paid to the shareholders registered within the Register of Shareholders held by Euroclear Finland Ltd because the file date of 21 Could 2021. The Board proposes that the dividend be paid on 28 Could 2021.

No vital modifications have taken place within the firm’s monetary place for the reason that finish of the monetary 12 months. The impairment of Nordea shares had no affect on Sampo plc’s distributable capital and reserves. The corporate’s liquidity place is sweet and within the view of the Board, the proposed distribution doesn’t jeopardize the corporate’s means to meet its obligations.

SAMPO PLC
Board of Administrators

For extra data, 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 Supervisor, Media Relations, tel. +358 10 516 0031

Convention name

An English-language convention name for traders and analysts can be organized at 4 pm Finnish time (2 pm UK time). Please name tel. +1 631 913 1422, +44 33 3300 0804, +46 8 5664 2651, or +358 9 8171 0310. The convention code is 89421852#.

The convention name can be adopted stay at www.sampo.com/end result. A recorded model will later be obtainable on the identical handle.

As well as, the Supplementary Monetary Data Bundle is obtainable at www.sampo.com/end result.

Sampo will publish the Interim Assertion for January – March 2021 on 5 Could 2021.

Distribution:
Nasdaq Helsinki
London Inventory Alternate
The principal media
Monetary Supervisory Authority
www.sampo.com

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