TIDMSAMAS 
 
 
   SAMPO PLC     FINANCIAL STATEMENT RELEASE      10 February 2016 at 9:30 
am 
 
   SAMPO GROUP'S RESULTS FOR 2015 
 
   Sampo Group's profit before taxes improved in all business areas in 2015 
and amounted to a record high EUR 1,888 million (1,759). The total 
comprehensive income for the period, taking changes in the market value 
of assets into account, increased to EUR 1,564 million (1,179). P&C 
insurance and Nordea reported highest ever profits before taxes. 
 
 
   -- Earnings per share amounted to EUR 2.96 (2.75). Mark-to-market earnings 
      per share were EUR 2.79 (2.11). The return on equity for the Group 
      increased to 14.0 per cent for 2015 (10.9). Net asset value per share on 
      31 December 2015 was EUR 23.79 (22.63). 
 
   -- The Board proposes to the Annual General Meeting to be held on 21 April 
      2016 a dividend of EUR 2.15 per share (1.95). The proposed dividend 
      payment amounts in total to EUR 1,204 million (1,092). 
 
   -- Profit before taxes for the P&C insurance amounted to EUR 960 million 
      (931). Combined ratio for the full year 2015 decreased to 85.4 per cent 
      (87.7). Even adjusted for non-recurring items the combined ratio was 
      better than ever before at 86.5 per cent. Return on equity (RoE) 
      increased to 21.5 per cent (18.1). Adjusted for currency gross written 
      premiums grew 0.4 per cent. The contribution of Topdanmark's net profit 
      for 2015 amounted to EUR 43 million (53). 
 
   -- Sampo's share of Nordea's net profit for 2015 amounted to EUR 751 million 
      (680). Nordea's RoE rose to 12.3 per cent (11.5) and core Tier 1 ratio 
      (excluding transition rules) strengthened to 16.5 per cent (15.7). In 
      segment reporting the share of Nordea's profit is included in the segment 
      'Holding'. Nordea's Board of Directors proposes to the AGM 2016 a 
      dividend of EUR 0.64 per share (0.62). If the AGM approves the Board's 
      dividend proposal, Sampo plc will receive a dividend of EUR 551 million 
      from Nordea on 30 March 2016. 
 
   -- In life insurance operations profit before taxes rose to EUR 181 million 
      (163). Return on equity (RoE) amounted to 12.7 per cent (11.4). Premium 
      income on own account increased to EUR 1,144 million (1,105). The reserve 
      for lower discount rates was further strengthened by EUR 109 million 
      during 2015. The rates used for 2016, 2017 and 2018 are 1.0 per cent, 
      1.25 per cent, and 2.25 per cent, respectively. 
 
 
 
 
KEY FIGURES               2015   2014   Change, %  Q4/2015  Q4/2014  Change, % 
EURm 
Profit before taxes       1,888  1,759          7      413      447         -8 
 P&C insurance              960    931          3      204      219         -7 
 Associate (Nordea)         751    680         10      173      179         -3 
 Life insurance             181    163         11       48       50         -4 
 Holding (excl. Nordea)      -1    -12        -89      -13       -1        824 
Profit for the period     1,656  1,540          8      364      391         -7 
 
                                           Change                       Change 
Earnings per share, EUR    2.96   2.75       0.21     0.65     0.70      -0.05 
EPS (incl. change in 
 FVR), EUR                 2.79   2.11       0.68     0.95     0.14       0.81 
NAV per share, EUR        23.79  22.63       1.16        -        -          - 
Average number of staff 
 (FTE)                    6,755  6,739         16        -        -          - 
Group solvency ratio, %   192.6  187.4        5.2        -        -          - 
RoE, %                     14.0   10.9        3.1        -        -          - 
 
 
   Income statement items are compared on a year-on-year basis and 
comparison figures for balance sheet items are from 31 December 2014 
unless otherwise stated. 
 
   Sampo follows the disclosure procedure enabled by the Finnish Financial 
Supervisory Authority and hereby publishes its Financial Statement 
Release attached as a PDF file to this stock exchange release. The 
Financial Statement Release is also available at www.sampo.com/result. 
 
 
 
 
Exchange rates used in 
 reporting                1-12/2015  1-9/2015  1-6/2015  1-3/2015  1-12/2014 
EUR 1 = SEK 
Income statement 
 (average)                   9.3534    9.3709    9.3416    9.3805     9.1011 
Balance sheet (at end of 
 period)                     9.1895    9.4083    9.2150    9.2901     9.3930 
DKK 1 = SEK 
Income statement 
 (average)                   1.2542    1.2567    1.2530    1.2593     1.2205 
Balance sheet (at end of 
 period)                     1.2314    1.2612    1.2352    1.2437     1.2616 
NOK 1 = SEK 
Income statement 
 (average)                   1.0475    1.0646    1.0809    1.0746     1.0893 
Balance sheet (at end of 
 period)                     0.9570    0.9878    1.0482    1.0674     1.0388 
 
 
   FOURTH QUARTER IN BRIEF 
 
   Sampo Group's profit before taxes for the fourth quarter of 2015 was EUR 
413 million (447). Earnings per share amounted to EUR 0.65 (0.70). 
Mark-to-market earnings per share were EUR 0.95 (0.14). Net asset value 
per share rose to EUR 23.79 (22.63). 
 
   Combined ratio for the P&C insurance operation in the fourth quarter 
amounted to 87.7 per cent (87.1). Profit before taxes decreased to EUR 
204 million (219). Share of the profits of the associated company 
Topdanmark amounted to EUR 6 million (9). 
 
   Sampo's share of Nordea's fourth quarter 2015 net profit amounted to EUR 
173 million (179). Nordea's Group core tier 1 capital ratio, excluding 
transition rules, rose to 16.5 per cent (15.7) at the end of the year. 
 
   Profit before taxes for the life insurance operations amounted to EUR 48 
million (50). Mandatum Life continued to strengthen its technical 
reserves due to low level of interest rates. Premiums written decreased 
from EUR 333 million to EUR 306 million. 
 
   BUSINESS AREAS 
 
   P&C insurance 
 
   Profit before taxes for January-December 2015 for the P&C insurance 
operations increased to EUR 960 million (931). Combined ratio improved 
to 85.4 per cent (87.7) while risk ratio deteriorated to 66.6 per cent 
(65.1). Excluding the non-recurring items, combined ratio for 2015 was 
86.5 per cent. In Sampo Group's 2015 accounts the contribution of 
Topdanmark's net profit amounted to EUR 43 million (53). 
 
   Technical reserves relating to prior year claims were strengthened by 
EUR 61 million in January - December 2015 (EUR 2 million released in the 
previous year). Return on equity (RoE) increased to 21.5 per cent (18.1) 
and the fair value reserve on 31 December 2015 amounted to EUR 391 
million (507). 
 
   Technical result increased to EUR 657 million (588). Insurance margin 
(technical result in relation to net premiums earned) improved to 15.1 
per cent (13.2). 
 
   The lowering of the annuities discount rate in Finland during the second 
quarter of 2015 affected all business areas' results negatively and 
weakened the Finnish country specific result in 2015. Business area 
Industrial suffered from a negative large claims outcome in the fourth 
quarter of the year, particularly in Norway, resulting in EUR 45 million 
worse than expected large claims outcome in 2015 and a 10.4 percentage 
points weaker combined ratio than a year before. Total large claims 
ended up EUR 32 million worse than expected in 2015. 
 
   In Sweden, combined ratio improved by 7.8 percentage points supported by 
a positive large claims outcome compared to the previous year. Swedish 
discount rate used to discount the annuity reserves decreased to 0.41 
per cent by the end of December 2015 and had a negative effect of EUR 12 
million for full-year 2015 and a EUR 1 million positive effect in the 
fourth quarter of 2015 results. 
 
   Gross written premiums decreased to EUR 4,559 million (4,634) in 2015. 
Adjusted for currency, premium growth was slightly positive. Growth was 
positive in business areas Private and Baltic, and negative in business 
areas Commercial and Industrial. Geographically, gross written premiums 
grew by 5 per cent in Sweden, while the growth was slightly negative in 
Norway and Denmark and stable in Finland. 
 
   Cost ratio improved to 18.8 per cent (22.5) and expense ratio to 13.0 
per cent (16.7), both impacted by the positive effect of the 
non-recurring reform of the pension system in If Norway booked in the 
second quarter of the year. Excluding the non-recurring item the cost 
ratio was 22.3 per cent and expense ratio 16.6 per cent. 
 
   On 31 December 2015, the total investment assets of If P&C amounted to 
EUR 11.4 billion (11.5), of which fixed income investments constituted 
74 per cent (75), money market 12 per cent (13) and equity 13 per cent 
(12). Net income from investments amounted to EUR 304 million (353). 
Investment return marked-to-market for the full year 2015 decreased to 
1.5 per cent (4.1) as a result of widening credit spreads towards the 
end of the year. Duration for interest bearing assets was 1.2 years 
(1.0) and average maturity 2.6 years (2.4). Fixed income running yield 
as at 31 December 2015 was 1.8 per cent (2.4). 
 
   Associated company Nordea Bank AB 
 
   On 31 December 2015 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 8.49 per share. The closing price as at 30 December 2015 was EUR 
10.15. 
 
   Nordea's Board of Directors proposes to the AGM 2016 a dividend of EUR 
0.64 per share (0.62). The Board has also decided on a new dividend 
policy: Nordea strives to maintain a strong capital position in line 
with Nordea's capital policy. The ambition is to achieve a yearly 
increase in the dividend per share. 
 
   If the AGM approves the Board's dividend proposal, Sampo plc will 
receive a dividend of EUR 551 million from Nordea on 30 March 2016. 
 
   2015 was a challenging year with exceptionally low interest rates, 
geopolitical tensions and market turmoil. Under these market conditions 

(MORE TO FOLLOW) Dow Jones Newswires

February 10, 2016 02:45 ET (07:45 GMT)