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January – June 2018
PREPARED August 15, 2018FIGURES January-June, 2018
Debt Investor Presentation
DEBT INVESTOR CONTACTS
Markku Pehkonen, CROtel. +358 10 516 [email protected]
Peter Johansson, CFOtel. +358 10 516 [email protected]
Jarmo Salonen, Head of Investor Relations and Group Communicationstel. +358 10 516 [email protected]
FINANCIAL CALENDAR 2018
07/02/2018 Financial Statement Release for 2017Silent period 08/01/2018-07/02/2018
Week 11 Annual Report 201719/04/2018 AGM09/05/2018 Interim Statement Q1/2018
Silent period 09/04/2018-9/05/201808/08/2018 Half-Year Financial Report 2018
Silent period 09/07/2018-08/08/201807/11/2018 Interim Statement Q3/2018
Silent period 08/10/2018-07/11/2018
Moody's Standard and Poor's
Rating Outlook Rating Outlook
Sampo plc – Long-term Issuer Rating A3 Stable A- Stable
If P&C Insurance (Sweden) –Insurance Financial Strength Rating A1 Stable A+ Stable
DisclaimerThis presentation may contain forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Sampo believes that the expectations reflected in such forward looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors.Important factors that may cause such a difference for Sampo include, but are not limited to: (i) the macroeconomic development,(ii) change in the competitive climate and (iii) developments in capital markets.This presentation does not imply that Sampo has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided. 2
Sampo Group 3-15
Subsidiaries and Associated companiesIf P&C 16-21Topdanmark 22-26Mandatum Life 27-31Nordea Bank 32-33
Sampo plc 34-40
Appendix 41-49
3
Value Creation in the Nordic Financials as Group Strategy
4
LONG-TERM VALUE CREATION
• Value creation through investments in Nordic financials based on knowledge of Nordic markets, Nordic financial institutions & Nordic people.
• Commitment to the long-term development of affiliated companies.
OPERATIONAL EXCELLENCE IN SUBSIDIARIES
• Continuous development of services => excellence in underwriting and risks.• Economies of scale and high retail/consumer content.• Pan-Nordic diversification & operational excellence facilitate low volatility.
CONSERVATIVE PARENT WITH PROFIT FOCUS
• Conservative capital structure, modest leverage and strong liquidity.• Parent company steers subsidiaries through Boards by approving (in Topdanmark,
Nordea and Nordax by contributing to) strategies, guiding principles and ROE targets.
GROUP LEVEL PORTFOLIO BENEFITS
• Profitable companies, mostly with the lowest volatility in the peer group.• Profits of affiliated companies have low correlation creating diversification
benefits at the Group level.
LONG-TERM VALUE FOR SHAREHOLDERS & BONDHOLDERS
CENTRALIZEDINVESTMENT MANAGEMENT
• Company specific liabilities and solvency driving risk profiles, supported bya Group-wide investment philosophy. Common investment infrastructure (except Topdanmark) facilitates monitoring and prompt actions, also at the Group level.
Sampo Group ― Nordic Financial Group with Strong Brands
5
Sampo Group ‒ Nordic Financial Group with Strong Brands
The leading P&C insurer in the Nordic region with full service offering and a strong European presence
Safety and Stability:• Focus on Customer value• Focus on insurance expertise• Stable profitability through
underwriting excellence and operational efficiency
~ EURbn 11.7
• RoE above 17.5%• CR% below 95%
The second largest P&C insurer and the sixth largest Life insurer in Denmark
Profitable Business in DK:• Digitalisation: Self-service,
Online purchase• Efficiency: Process
optimisation and Automation• Transformation: Cultur,
Digital readiness
~ EURbn 2.9 (P&C)
• Profit margin of 10%• CR% 91%
One of Finland’s most respected and best capitalisedfinancial services providers to private & corporate customers
An expert in Money and Life:• Unit-linked insurance• Group pension insurance• Risk insurance• Insurance for Corporate
customers and entrepreneurs• Wealth management
~ EURbn 6.1
• RoE above 17.5%
• Long-term investor• Manager of capital structure and liquidity
• Pay-out ratio ≥ 50%
Marketposition
Strategy
Investmentassets
Return /profit target
Subsidiary Subsidiary
100% > 45% 100%
The leading and most diversified, bank group in the Nordics with strong capital generation
Transformation to be the Future Relationship Bank• Investm. in Compliance and RM• Technology Investm., the core
banking platform• Digital Platform investments• Cost efficiency• New legal structure and domicile
~ B/S EURbn 570~ AuM EURbn 307
• ROE above the Nordic peer average
Associated Company
21.2%
Sampo Group ― Nordic Financial Group with Strong Brands
Subsidiary Associated Company
36.2%
NDX Intressenter
36.9
28.0
24.2
22.9
22.6
20.0
19.8
17.0
6.9
6.3
5.1
4.3
3.4
3.4
1.5
0.6
Nordea
DNB
Sampo
Swedbank
Danske
SHB
SEB
Investor
Gjensidige
Tryg
Industrivärden
Jyske
Storebrand
Topdanmark
Alm.Brand
Aktia
Efficient and Stable Operations as Basis for Value
6Source: Thomson Reuters
>45%
*100% owned by the Republic of Finland; 30.6.2018
A Mixed Financial Conglomerate
BankInsuranceInvestment company
Foreign and Nominee registered 67.25%
Solidium 10.09%*
Varma Mutual Pension Ins.Co. 4.01%
Ilmarinen Mutual Pension Ins.Co. 0.69%
The State Pension Fund 0.70
Kaleva Mutual Insurance Company 0.48%
Other domestic owners 16.78%
>21%
In total over100,000 owners
Strong relative performance
Sampo ownership structure
Sampo Group ― Nordic Financial Group with Strong Brands
Market cap July 31, 2018, EURbn 10Y Total Shareholder Return
1-6/2018 Result • Pre-tax profit EURm 415 (401)• Comprehensive income EURm 132 (395)• Excellent combined ratio of 85.8% (86.5)
– Risk ratio 64.0% (64.5); Cost ratio 21.8% (22.0)– Claims ratio 69.5% (70.1); Expense ratio 16.3% (16.4)
• ROE%: 9.4% (2017:21.3%)
If P&C ‒ A Diversified Nordic P&C Insurer
7
• Diversified and profitable subsidiary• Provides insurance solutions and services
in the Nordic and Baltic regions as well asto Nordic customers with international operations
• Operated on a pan-Nordic basis leveraging both scale and capabilities across all areas in If
• The business areas are divided by customer segments Private, Commercial and Industrial
• The Baltic countries comprise a separate business area
• More than 3.7 million customers• Employees ~6,400• Leading Nordic insurer with a Nordic
market share of 17%, 22% with Topdanmark
549
644
707
636
864
929
931
960
883
818
-267
1,12
7
943
308
978
689
526
624
714
581
-400-200
0200400600800
1,0001,200
Profit before tax
Comprehensiveincome
Strong & Stable Annual Profit DevelopmentEURm
68.1
68.0
69.1
68.4
65.9
65.4
65.1
66.6
62.3
63.3
23.7
24.1
23.7
23.5
23.0
22.8
22.5
18.8
22.1
22.0
91.8
92.1
92.8
92.0
88.9
88.1
87.7
85.4
84.4
85.3
020406080
100%
Cost ratio
Risk ratio
Target CR
Combined Ratio Development
Sampo Group ― Nordic Financial Group with Strong Brands
-1000
100200300400500600700
Non-life insurance Life insurance Parent companyt etc.
1-6/2018 Result (Contribution to Sampo Group Profit) • Pre-tax profit EURm 105 (52)• Comprehensive income EURm 81 (52)• Combined ratio 85.5% (81.8)
– Claims ratio 68.8% (65.1); Expense ratio 16.8% (16.7)• Topdanmark book value in Group accounts EURm 1,398(+ positive valuation difference EURm 177)
• A profitable subisdiary with robust business model• Carries out Danish non-life insurance,
life insurance and pension fund business• Non-life business is divided to
‒ Personal segment (~500,000)‒ SME & Agricultural segment (~100.000)
• Life insurance customers (~140 000)• Employees ~2,400• Market shares in Denmark: P&C insurance 17%,
life insurance 8%• Strategic focus
‒ to be Denmark’s best-run insurance company‒ to combine new technology, digitalization and automation with competent experience in insurance and risk management‒ to utilize the economies of scale between life and non-life insurance business in Denmark‒ declining expense ratio, good risk management and strong sales power
• Sampo’s ownership of shares 46.7% and of votes 49.3%
Combined Ratio Development
72.2 75.4 70.3 70.9 68.7 65.8
15.8 16.2 15.7 15.9 16.4 16.1
020406080
100
2012 2013 2014 2015 2016 2017
%
Expense ratio
Claims ratio
Target CR
85.186.886.091.588.0
Topdanmark – A Danish Non-life and Life Insurer
8
Sampo Group ― Nordic Financial Group with Strong Brands
82.0
2013 2014 2015 2016 2017
Profit before taxesDKKm
2018
01,0002,0003,0004,0005,0006,000 Other WP-liabilities
Segregated Group PensionWP-liabilities (3.5% guarantee)WP-liabilities (4.5% guarantee)
1-6/2018 Result• Pre-tax profit EURm 313 (116) • Comprehensive income EURm 185 (111)• ROE%: 25.9% (2017:13.3%)
140
121
142
137
136
153
163
181
210
236
-378
495
332
-115
286
220
149
168
232
188
-500
-250
0
250
500
Profit beforetaxes
Comprehensiveincome
• Finnish Profit sharing mechanism – principle of fairness ‒ facilitates active investment strategies and risk taking.
• Profit sharing mechanism has benefited both policyholdersand shareholders over the years.
• Smoothened bonuses and dividends over time.
With-Profit Technical Provisions ForecastCurrent
Unit-linked Technical Provisions 31.12.2017 EUR 7,066m
Mandatum Life ‒ A Finnish Financial Service Company
9
• Provides a comprehensive range of wealthmanagment and health and life risk servicesin Finland and the Baltics for private and corporate customers
• Services provided‒ Tailored unit-linked investments and the related wealth management‒ Personal risk insurance‒ Pension and reward services
• Customers ~275,000 (Finland)• Employees ~520• A leading life and pension insurer in Finland
with ca 20% market share
Sampo Group ― Nordic Financial Group with Strong Brands
Profit DevelopmentEURm
EURm
• The largest financial services group in the Nordic region and one of the largest banks in Europe
• Diversified and stable returns• Global presence, local expertise: a full-service
universal bank• Business areas: Personal Banking, Commercial
and Business Banking, Wholesale Banking and Wealth Management
• Present in 17 countries incl. four Nordic home markets: Denmark, Finland, Norway and Sweden
• Customers:‒ households 10 million‒ corporates and institutionals 0.7 million
• Employees ~30,000• Sampo’s ownership of shares and votes 21.2%
1-6/2018 Result• Nordea’s contribution to the Group
‒ Pre-tax profit EURm 388 (322)‒ Comprehensive income EURm 365 (281)
• Excellent C/I ratio of 49% (52)• Common Tier1 ratio 19.9% (19.2)• ROE%: 12.0% (9.9)• Nordea book value in Group accounts EURm 7,307
( valuation difference EURm -205)
Nordea – A Nordic Banking Group
-2000
200400600800
1,0001,2001,4001,600
Restructuring/impairmentcharges/gainsLoan losses
Operatingprofit
10
-08 -09 -10 -11 -12 -13 -14 -15 -16 -17
Sampo Group ― Nordic Financial Group with Strong Brands
Low Quarterly Result VolatilityEURm
-18
Source:Nordea
• Geographical diversification• Strong Retail P&C Franchise• Several Lines of Businesses
‒ Motor, Cargo‒ Workersʼ compensation‒ Liability ‒ Accident‒ Property
• Low C/R volatility and Conservative Investments
Diversified Companies and Diversified Portfolio*
11
• Geographical diversification• Strong Retail Banking Franchise• Diversified earnings base:
‒ Banking (Retail, Wholesale)‒ Wealth Management (Asset
Management, Private Banking, Life & Pensions)
• Low earnings volatility & stableROE over the cycle
• Finland & Baltics• Strong Finnish Position• Product areas
‒ Wealth Management‒ Unit-linked Business‒ With-profit Business ‒ Remuneration services‒ Risk insurance
• Dependency on Capital Markets
* Correlations of quarterly Reported Profits Q1/2005–Q2/2018
PBT 2010-17
IF 45%ML 10%Nordea 45%
P/L CONTRIBUTIONS* LOW VOLATILITY EARNINGS LOW VOLATILITY C/R FOCUS ON U-L & WM
0.25
0.19
1
0.84 1
1
Sampo Group ― Nordic Financial Group with Strong Brands
0.35 0.67 0.67 1
• Denmark• Second largest insurance
company• Nation-wide businesses
‒ Non-life insurance‒ Life insurance‒ Pension fund
• Stable insurance riskand low C/R volatility
LOW VOLATILITY C/R
12
870 825
1,320 1,228
1,616 1,6681,759
1,888 1,871
2,482
-200
200
600
1,000
1,400
1,800
2,200
2,600
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Holding Banking Life Topdanmark If P&C
Steady Development of Profit before Taxes
EURm
• If P&C• Mandatum Life• Nordea / Investment
• If P&C• Topdanmark / Associated• Mandatum Life • Nordea / Associated
Sampo Group ― Nordic Financial Group with Strong Brands
** Includes 706 EURm from valuing of Topdanmark to fair value (with share price DKK 247.7)
• If P&C• Topdanmark• Mandatum Life • Nordea / Associated
**
H1/2018 H1/2017If P&C 415 401Topdanmark 105 52ML 313 116Nordea 388 322Holding -48 -27Group 1,153 865
Investment Allocation
13
Sampo Group ― Nordic Financial Group with Strong Brands
Total Group (MEUR)
Money Market 8% 4% 13% 75% 3% 4% 14% 74% 6% 6% 12% 39%Long-Term Fixed Income 79% 67% 47% 20% 84% 68% 49% 18% 83% 66% 50% 23%Equity 13% 12% 26% 5% 13% 10% 25% 7% 11% 9% 26% 15%Private Equity 0% 1% 4% 0% 0% 3% 3% 0% 0% 3% 4% 22%Other 0% 16% 10% 1% 0% 15% 8% 1% 0% 16% 9% 2%
26,524 25,286 25,621
12/16 12/17 06/18
12,192
5,8166,582
1,933
11,459
5,944 6,263
1,620
11,664
6,8306,066
1,061
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
IfP
&C
Topd
anm
ark
Man
datu
mLi
fe
Sam
poP
lc If P&
C
Topd
anm
ark
Man
datu
mLi
fe
Sam
poP
lc If P&
C
Topd
anm
ark
Man
datu
mLi
fe
Sam
poP
lc
Alloc. Development
Money MarketLong-Term Fixed IncomeEquityPrivate EquityOtherTotal
If P&C9879,6371,527222012,192
Topdanmark2533,868714579245,816
Mandatum Life8593,0791,7372426656,582
Sampo Plc1,440384882191,933
If P&C3679,6091,446191711,459Total Group (MEUR)26,52425,28625,621
Topdanmark2234,0166161948955,944
Mandatum Life9043,0481,5782115226,263
Sampo Plc1,1962891141191,620
If P&C6599,6821,29518911,664
Topdanmark4154,4786262021,1096,830
Mandatum Life7213,0401,5622265176,066
Sampo Plc412241158230191,061
12/1612/1706/18
Money Market8%4%13%75%3%4%14%74%6%6%12%39%
Long-Term Fixed Income79%67%47%20%84%68%49%18%83%66%50%23%
Equity13%12%26%5%13%10%25%7%11%9%26%15%
Private Equity0%1%4%0%0%3%3%0%0%3%4%22%
Other0%16%10%1%0%15%8%1%0%16%9%2%
Money MarketIf P&CTopdanmarkMandatum LifeSampo PlcIf P&CTopdanmarkMandatum LifeSampo PlcIf P&CTopdanmarkMandatum LifeSampo Plc986.81605079849078253.19346129565207858.956401424999971440.3452709501366.87952421628847222.70278982927911904.098431061500041196.2552747481658.75015993697514414.939656034888720.86115414480003411.6298410407Long-Term Fixed IncomeIf P&CTopdanmarkMandatum LifeSampo PlcIf P&CTopdanmarkMandatum LifeSampo PlcIf P&CTopdanmarkMandatum LifeSampo Plc9637.33935188038593867.74839151634023079.2146322677004383.514391692099939609.45642858988694015.76918427379863048.4076457252995288.94125530119682.49753895903634477.95955890229023040.0658258286003241.26639880869999EquityIf P&CTopdanmarkMandatum LifeSampo PlcIf P&CTopdanmarkMandatum LifeSampo PlcIf P&CTopdanmarkMandatum LifeSampo Plc1527.1213263574982714.045856895324281737.303138790587.697880102600011446.2435098834799616.126475842523061578.4314855804114.162941127699991295.4160094355498626.126143999999951562.0729182721998158.32458542020001Private EquityIf P&CTopdanmarkMandatum LifeSampo PlcIf P&CTopdanmarkMandatum LifeSampo PlcIf P&CTopdanmarkMandatum LifeSampo Plc21.55810797487568257.086058912812803241.679761288799972.190285636800000118.865187448698673193.82396002632677210.722740061800011.368854236218.480759128900797202.01865841654399226.4367680453229.96773144279999OtherIf P&CTopdanmarkMandatum LifeSampo PlcIf P&CTopdanmarkMandatum LifeSampo PlcIf P&CTopdanmarkMandatum LifeSampo Plc19.621995353048987923.58527314000196665.2236843468003819.390665877417.440802664154035895.37804403014138521.515753963698919.38690991469.26026885403189231108.6953405700388517.0185477739005419.3871206928Total
If P&CTopdanmarkMandatum LifeSampo PlcIf P&CTopdanmarkMandatum LifeSampo PlcIf P&CTopdanmarkMandatum LifeSampo Plc12192.4568323642985815.6590417601316582.37761811880051933.138494258999811458.8854528025085943.80045400206936263.17605639269821620.115235327699811664.4047363144956829.73935792376056066.45521406480021060.5756774051999
1,898
1,104546 172
3,698
7,471
10,887
53
0
2,000
4,000
6,000
8,000
10,000
12,000
If P&C* MandatumLife**
Topdanmark* Sampo plc* Sampo plc'sshares ofNordea/
NDXintressenter
Total minimumrequirement
for Own Funds
Group’s Own Funds
Sampo Group’s Own Funds and SolvencyAccording to Conglomerate Rules
14
EURm
Group solvency ratio 146%
*) Standard formula**) Standard formula + transition measures
Sampo Group ― Nordic Financial Group with Strong Brands
3,666
3,7537,419
10,850
0
2,000
4,000
6,000
8,000
10,000
12,000
Consolidated GroupSCR*
Nordea and Otherfinancial sector
Group SCR Total Eligible Own Funds
Sampo Group Solvency by Solvency II Rules June 30, 2018
15
EURm
Ratio of eligible Own Funds to Group SCR 146%
*) Standard formula
Sampo Group ― Nordic Financial Group with Strong Brands
If P&CA Pan-Nordic Diversified P&C Insurer
16
51%
30%
15%4%
PrivateCommercialIndustrialBaltic
By Business Area By Country
65%
22%
8%
3%2%
PrivateCommercialIndustrialBalticOther
Technical ResultsEURm 306
28%
50%
14%3%
3%2% Norway
SwedenFinlandDenmarkBalticOther
Gross Written Premiums EURm 2,701
30%
33%
24%
9% 4% NorwaySwedenFinlandDenmarkBaltic
If P&C – Diversified Nordic P&C Insurer
Diversified Client Base
17
1-6/2018
Expense ratio 2017, %
If P&C and Nordic Weighted Average CR% Standard deviation 2008-2017
92.8 92
88.9
88.1
87.7
85.4
84.4
96.1
96.1
91.5
91.3
88.5
88.9
87.6
75
80
85
90
95
100
2010 2011 2012 2013 2014 2015 2016If P&C Nordic Market (excl.If)
Disciplined Underwriting and Diversification
%
16.116.417.217.7
25.327.327.828.7
31.831.3
TopdanmarkIf P&C
Nordic market excl. If (-16)RSA Scandinavia
Direct LineAXA
GeneraliAllianz
ZFSAviva
18
If P&C – Diversified Nordic P&C Insurer
3.9%
3.2%
4.3%
4.8%
3.9%
Private Commercial
Industrial
Baltic
If P&C
Norway Sweden
Finland Denmark
0
2
4
6
8
10
12
86 88 90 92 94 96
CR
% S
tand
ard
devi
atio
n Q
2/20
08-Q
2/20
18
Average CR% Q2/2008-Q2/2018
If P&C and BA average quarterly Combined Ratios vs. DeviationQ2/2008-Q2/2018
Conservative Investment Portfolio
19
• Duration 1.5 years• Average Maturity 2.7 years• Fixed Income Running Yield 1.6%
Mark-to-Market Investment ReturnInvestment Allocation7.4%
1.8%
6.1%
5.0%4.1%
1.5%
2.9% 2.6%
0%
2%
4%
6%
8%
2010 2011 2012 2013 2014 2015 2016 2017
Mark-to-Market Investment Return
821
113
689558
459
190334 304
0
200
400
600
800
1,000
2010 2011 2012 2013 2014 2015 2016 2017
Total EURbn 11.7
If P&C – Diversified Nordic P&C Insurer
Money Market 6%
Public Sector 8%
Other Fixed
Income51%
Covered Bonds24%
Equities11%
Private Equity 0.2 % Real Estate0.1 %Other 0.0 %
H1/2018 H1/2017% 0.5 2.4
H1/2018 H1/2017EURm 60 289
EURm
0
50
100
150
200
250
300
350
Investment result
Technical result
Operating result
Seasonality in Quarterly Results and CR%
20
Q4 Q3 Q2 Q1Average Quarterly CR%, 2008-2017 88.8 88.1 87.3 90.9Year 2017 CR% 83.6 84.8 85.7 87.4Year 2018 CR% 85.1 86.5
EURm
If P&C – Diversified Nordic P&C Insurer
EURm
649
1,17
8
320
763
169180
1,37
2
4,20
5
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
1,30
8
1,11
7
123
495
169 324
1,89
8
4,20
5
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Internally assessed Solvency ratio 306%Standard Formula Solvency Ratio 221%
LAC = Loss Absorbing Capacity, DT = Deferred Taxes, SCR= Solvency Capital Requirement
EURm
S&P TTC for A rating 3,087 EURm S&P TTC for A rating 3,087 EURm
If P&C Solvency June 30, 2018
21
If P&C – Diversified Nordic P&C Insurer
22
TopdanmarkA Danish Non-life and Life Insurer
84%
14% 2% Non-life insurance
Life insurance
Parent company
28%
22%15%
35%Non-life insurance, Personal
Non-life insurance, SME
Life insurance, regular
Life insurance, single
Topdanmark – Danish P&C and Life Insurer
23
Diversified business modelPre-tax profit, DKKm 779 Premiums earned, DKKm 9,239
3612
313
48
1875
4
36
Non-life Life
Head office and life sales
Others (banks etc.)
Danica Pension
Danske Bank
Car dealers and Home
Brokers
Telephone sales etc.
Insurance sales reps.
Distribution channels 2017
%
1-6/2018
Trend in technical result
Source:Topdanmark
24
59%
41%Personal
SME
Technical result by Business Line, DKKm 661
Non-life insuranceCombined Ratio by Business Line, %
Investment Allocation
Public Sector
1%
Covered Bonds61%Other Fixed
Income1%
Money Market
11%
Equities5%
Real Estate
5%
Private Equity
0%
Other15%
Total EURbn 2.9 Investment Return
4.1%3.4%
1.0%
4.4%
2.1%
0%
2%
4%
6%
2013 2014 2015 2016 2017
595711
514392
288
0
200
400
600
800
2013 2014 2015 2016 2017
DKKm
Topdanmark – Danish P&C and Life Insurer
70 68.5 66.1 65.3 68 72 69 65.5 65 69.7
16.3 16.7 16.2 16.5 16.6 15.4 16 16 16.9 16.9
0
20
40
60
80
100
Claims ratio Expense ratio
85.087.485.286.2 81.582.3
%
81.9 86.781.8 84.6Personal SME
H1/2018 Q1/2017% 0.3 0.9%
H1/2018 H1/2017DKKm 63 168
Source:Topdanmark
Life insurance
25
Result by components, DKKm 106
19%
3%
50%
22%
6%Individual policies, single
Individual policies, regular
Policies, part of a tenure single
Policies, part of a tenure, regular
Group life, regular
Gross Premiums (Regular and Single), DKKm 4,665
57
169
73
106
0
25
50
75
100
125
Inv.return onshareholders’equity(Life Holding)
Sales and administration
Insurancerisk
Risk return onshareholders’equity
Profit onlife insurance
Topdanmark – Danish P&C and Life Insurer
DKKm
Regular premiums,DKKm 1,427Single premiums DKKm 3,238
Source:Topdanmark
EURm
Partial Internal Model Solvency ratio 213%Gross figures
LAC = Loss Absorbing Capacity, DT = Deferred Taxes, SCR= Solvency Capital Requirement26
Topdanmark Solvency June 30, 2018
758
31
589 396 68410
94
546953
0
500
1,000
1,500
Standard Model Solvency ratio 175%used in Sampo Group SCR calculations
758
31293 221 68
41072
447953
0
500
1,000
1,500
Topdanmark – Danish P&C and Life insurer
287
25 13128
63 141 6875 72
447
953
0
500
1,000
Partial Internal Model Solvency ratio 213%as reported by Topdanmark, Net SCR figures
EURm
EURm
Potential dividend for 2018 has not been deducted from Topdanmark’s own funds end H1 2018.
Mandatum LifeA Finnish Financial Services Company
27
Premiums Written EURm 531
Insurance SavingsEURm 10,672
76
67
323
1042 13
1
2,379
2,219
2,345152
158
3,380
25 14
Unit-linked life Unit-linked pensionUnit-linked capital redemption Unit-linked BalticOther life Other pensionOther capital redemption Other Baltic
Mandatum Life Business Volumes
28
U-LEURm 7,094
With-ProfitEURm 3,577
U-L EURm 476
With-ProfitEURm 56
4,48
7
4,43
1
4,41
0
4,24
9
4,07
1
3,92
7
5,06
5
5,01
4
4,82
1
4,57
2
4,39
2
1,63
7
2,35
9
3,12
4
3,05
4
3,83
3
4,61
6 5,31
2
5,85
8
6,44
0
7,06
6
7,09
7
0
2,000
4,000
6,000
8,000
10,000
12,000 Unit-linked Guaranteed interest rates
Technical Provisions, EURm 11,489
EURm
Mandatum Life - A Finnish Financial Services Company
Note: Excluding reserves for decreased discount rate, future bonus reserves and longevity reserve
1-6/2018
Investment Portfolio covering With-Profit liabilities
29
11.1%
-1.4%
9.4%
7.1%
4.6%
6.9%6.70% 5.60%
-5%
0%
5%
10%
15%
2010 2011 2012 2013 2014 2015 2016 2017
615
-59
504391
251
427 440 376
-1000
100200300400500600700
2010 2011 2012 2013 2014 2015 2016 2017
• Duration 2.4 years• Average Maturity 2.7 years• Fixed Income Running Yield 2.4%
Mark-to-Market Investment Return
Mandatum Life - A Finnish Financial Services Company
H1/2018 H1/2017% 0.3 3.9
H1/2018 H1/2017EURm 20 264
Investment Allocation Mark-to-Market Investment Return
EURm
Money Market Securities and
Cash12 %
Government Bonds
1 %
Credit Bonds, Funds and
Loans49%
Listed Equity26 %
Real Estate4%
Private Equity4 %
Unlisted Equity0 %
Biometric0,2%
Commodities0 %
Other Alternative
4 %Trading
Derivatives0 %
EUR 6.1 bn
Mandatum Life Profit by Components
30
Total expense ratio, % 98.5 99.9Incl. kick backs, % 81.5 79.5
EURm 1-6/2018 1-6/2017Net investment income 137.0 518.3
- Transferred to expense result -12.5 -13.5- Return on Unit-linked policies -14.2 -262.2- Return on With-profit policies* -19.1 -146.2
INVESTMENT RESULT 91.2 96.5EXPENSE RESULT** 13.4 13.5RISK RESULT 10.1 15.1OTHERS 197.9 -8.7PROFIT BEFORE TAXES 312.5 116.3Change in the market value of investments -84.3 22.3PROFIT AT MARKET VALUES 228.2 138.6
Mandatum Life Group, expense ratio
* Includes guaranteed interest, bonuses and change in the reserves of the above items** Result of Unit-linked business EURm 14.5
Mandatum Life - A Finnish Financial Services Company
Mandatum Life Solvency, June 30, 2018
LAC = Loss Absorbing Capacity, TP = Technical Provision, DT = Deferred Taxes
* Own Funds without transitional measures EUR 1,739m
EURm SF with transitional measures Solvency ratio 194%
1,284
68355 271 37 93
276
1,104
276
2,145
0
500
1,000
1,500
2,000
2,500
31
*
Mandatum Life - A Finnish Financial Services Company
Nordea BankThe Largest Nordic Financial Services Group
32
33
Nordea
677224
483
235
465
199
437
249
479
421
0
500
1,000
1,500
2,000
2,500
Operating Income Operating ProfitGroup Functions & Other Wealth Management
Wholesale Banking Commercial & Business Banking
Personal Banking
Diversified sources of Profit Q2/2018
Denmark, 29%
Finland, 21%Norway,
19%
Sweden, 29%
Russia, 1%
Outside Nordic, 1%
The well-diversified credit portfolio, EUR 292bn
Operating profit breakdown
17.619.9
22.525.4
CET1Requirement
Nordea CET1ratio
Own Fundsrequirement
Nordea OwnFunds
Nordea estimated CET1 and Own Funds requirementQ2/2018,%
Nordea - The most diversified Nordic bank
Household53%
Real estate15%
Ind. com. services4%
Cons. staples4%
Retail trade3%
Shipp. & offshore3%
Other fin. inst.4% Public sector1%
Other 13%
EURm EURm
1-6/2018
01,073
0
800
0
260408
2,541
1,154
59
1,328 10850
1,000
2,000
3,000 2,541
1,328
Source:Nordea
Sampo plcParent Company with Capacity to Generate Funds
34
Simple Cash Flows, low leverage and adequate liquidity
35
Dividends • If P&C• Mandatum Life• Nordea• Topdanmark
• Internal Administration Costs• Discretionary Dividends for Shareholders• Interest Expenses for Bondholders
Income• Interest on Liquidity • Income from other
investments
Sampo plc
Assets 10,688 Liabilities 10,688Liquidity 414 CPs Issued 195
Investment assets 458 LT Senior Debt 3,341
- Real Estate 2 - Private Placements 130
- Fixed Income 23 - Bonds Issued 3,211
- Equity & Private Equity 433 - Pension Insurance loans
Subordinated Loans 492 Subordinated Debt 0
Equity Holdings 9,199 Capital 7,051
- Subsidiaries 3,401 - Undistributable 98
- Associated 5,799 - Distributable 6,953
Other Assets 125 Other Liabilities 101
Key Credit Metrics well in Single A rangeSampo plc 30.6.2018Gross Debt, EURm 3,536Gross Debt to Equity 50%Financial Leverage 33% (= Debt/(Debt+Equity)
Sampo Group, EURm Q2/2018Shareholders' Equity 12,575Hybrid Bonds 459Senior Debt 3,536Financial leverage 27.1%
Sampo plc - Parent Company with Capacity to Generate Funds
Flow of Funds Balance Sheet, EURm
Cash and tradable financial investments 30.6.2018
36
• In case subordinated loans are sold, both liquidity and Own Funds at Group level are generated• This buffer of liquidity and Own Funds come with positive interest margin
Sampo plc - Parent Company with Capacity to Generate Funds
millionInstrument
Market Value/Nominal
Running Yield,% Call Date
Cash EUR 414
Investment Assets EUR 458
Sub-Ordinated Loans EUR 492 5.34
- Mandatum Life T1 Perpetual EUR 100 4.31 Annual
- IF T2 30NC10 EUR 99 6.07 8.12.21
- Nordea AT1 PerpNC5 USD 171 5.95 23.9.19
- Nordea AT1 PerpNC5 USD 98 6.48 13.9.21
- Topdanmark T2 PerpNC5 DKK 135 2.92 11.12.20
- Topdanmark T2 PerpNC5.5 DKK 270 2.44 11.6.21
Total EUR 1,364
Sampo Group ― Conservative Leverage
-4,000-2,000
02,0004,0006,0008,000
10,00012,00014,00016,000
Q1/
05
Q1/
06
Q1/
07
Q1/
08
Q1/
09
Q1/
10
Q1/
11
Q1/
12
Q1/
13
Q1/
14
Q1/
15
Q1/
16
Q1/
17
Q1/
18
Q1/
19
Sampo plc Net debtGroup NAVGroup Equity
EURm
0%
5%
10%
15%
20%
25%
30%
35%
40%
Q1/
05
Q1/
06
Q1/
07
Q1/
08
Q1/
09
Q1/
10
Q1/
11
Q1/
12
Q1/
13
Q1/
14
Q1/
15
Q1/
16
Q1/
17
Q1/
18
Q1/
19
Net debt/NAV
• ”Loan-To-Values” based on above figures is low• Parent Companyʼs Financial Leverage is 33% => Sampoʼs position to refinance its debt is adequate
37
Sampo plc - Parent Company with Capacity to Generate Funds
Dividends Received by Payment YearEURm
38
181
488 540 406544 490
597 587 586 620
293
200
100100
100 100
125
275
150
13080
204 250 224293
370533
551557
585
107
511568
744756 768
883
1,067
1,220
1,5551,452
0
200
400
600
800
1,000
1,200
1,400
1,600
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Topdanmark
Nordea
Mandatum Life
If P&C Extra Dividend
If P&C
*
Sampo plc - Parent Company with Capacity to Generate Funds
*) Extra dividend
Reported Profit facilitates Debt Servicing
39*Parent Company is not equal to Holding Segment; Dividend Income includes also dividends from Private Equity investments
*
Sampo plc - Parent Company with Capacity to Generate Funds
EURm 2010 2011 2012 2013 2014 2015 2016 2017 H1/2018
Dividendincome*
747 762 773 879 1,069 1,226 1,567 1,453 845
Operating expenses
-8 -10 -17 -20 -18 -14 -17 -14 -5
Net financialresult
-37 -70 -20 -26 -1 17 17 -43 -43
Profit beforetaxes
702 683 737 832 1,050 1,229 1,567 1,396 797
Issued Debt Instruments
40
EU
Rm
Instrument & Principal Coupon Swap Effective Rate MaturityCPs issued 195 EURm Euribor + Margin 0.2500% Average 3M
Senior Bond 500 EURm 1.125% --- 1.1640% 24.05.2019
Senior Bond 2,000 SEKm Stibor3M + 0.77% Euribor3M+0.586125% 0.2631% 28.05.2020
Senior Bond 1,000 SEKm 1.250% EUR 1.007% 1.0070% 28.05.2020
Senior Bond 500 EURm 1.500% --- 1.5920% 16.09.2021
Senior Bond 700 SEKm 0.875% Euribor6M+0.3761% 0.1061% 23.5.2022
Senior Bond 1,300 SEKm Stibor3M+0.55% Euribor6M+0.3881% 0.1181% 23.5.2022
Senior Bond 750 EURm 1.000% --- 1.0060% 18.09.2023
Senior Bond 500 EURm 1.250% EUR6M + 0.735% 0.4660% 20.05.2025
Senior Bond 500 EURm 1.625% EUR6M+0.562% 0.288% 21.2.2028
Public debt 3,405 EURm 0.7961% Private placements 130 EURm 0.9996%Total 3,535 EURm 0.8041%
Sampo plc - Parent Company with Capacity to Generate Funds
0
500
1000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028CP´s Senior under EMTN Senior Retail Private
AppendixSeparate Supplementary Information
41
Sampo Group’s Outlook for the rest of 2018
42
Appendix – Separate Supplementary Information
Sampo Group’s business areas are expected to report good operating results for 2018.
However, the mark-to-market results are, particularly in life insurance, highly dependent on capital market developments. The continuing low interest rate level also creates a challenging environment for reinvestment in fixed income instruments.
If P&C is expected to reach a combined ratio target of 86 - 89 per cent for the full-year 2018.
With regard to Topdanmark, reference is made to the profit forecast model that the company publishes quarterly.
Nordea’s contribution to the Group’s profit is expected to be significant.
Sampo Group Steering Model and Principles
43
• Four separate and independent business areas and Sampo plc an active owner
• General Principles of Business activities • Straightforward and transparent legal structure combined with limited intragroup exposures • Clear responsibilities• Simple and flat operational structures• Personnel incentivized to increase shareholder value and guard profitability
• Parent company gives guidance to the subsidiaries by setting/contributing • Strategy • Targets for their capitalization and return on equity (RoE) • Group-wide principles for Risk Management, Remuneration, Compliance, Code of Conduct and HR framework
• Subsidiaries organize underwriting activities independently taking into account• The specific characteristics of their operations• The above guidance from the parent company• The stakeholders’ expectations and external regulations
Appendix – Separate Supplementary Information
Calculation Principles of Sampo Group Solvency• Group Solvency Capital
• Under FICOD rules, capital is Group equity with some additional items added or deducted (subordinated loans, deferred tax assets, planned dividends…)
• Under SII rules capital – referred to as Own funds (OF) – consists mainly of excess of assets over liabilities • Under normal circumstances Group OF by Solvency II and FICOD rules are close to each other
• SCR by Financial Conglomerate Rules• The Group’s SCR is the sum of the separate sub-groups’ requirements (sectoral rules)
• Banking rules are applied for the parent company
• No diversification effect between the companies
• SCR by Solvency II rules • One capital requirement is calculated for the insurance group including the parent company Sampo plc, If P&C, Topdanmark and
Mandatum Life. This includes diversification effects and also capital requirement for the translation risk related to SEK denominated equity of If P&C and DKK nominated equity of Topdanmark.
• Nordea’s capital requirements are added to the requirement
• The SII SCR takes into account diversification only within the insurance group
=> Sampo Group Solvency Ratios are not comparable with most Insurance Groupsʼ solvency ratios 44
Appendix – Separate Supplementary Information
Structural changes of Sampo Group to the position as the leading Nordic financial group
45
Sampo Group’s (If P&C’s) Topdanmark holding exceeds 23 per cent and Topdanmark becomes If’s associated company.
Sampo Group (Mandatum Life) acquires Suomi Mutual’swith-profit group pension portfolio. The portfolio transfer takes place on 30 Decenber 2014.
Mandatum Life ends distribution agreement with Danske Bank.
Sampo Insurance Company and Leonia merge into the Sampo-Leonia financial services group. The Group’s business areas are long-term savings (life insurance, asset management and mutual funds), banking, investment banking, and P&C insurance.
Sampo’s P&C insurance operations are merged with If (2002). Following the transaction, Sampo owns 38 per cent of If. If becomes fully owned by Sampo (2004). Following the transaction, Sampo has three core businesses: P&C insurance, banking and long-term savings.
Sampo’s Nordea holding exceeds 20 per cent and Nordea becomes an associated company.
Sampo Group (If P&C) acquires Tryg’s Finnish Business and the acquisition was closed in May 2013. If P&C signs a partnership agreement with Nordea.
Sampo plc’s ownership of Topdanmarkexceeds 33.34 per cent after the acquisition of shares from If P&C and in the market and hence Sampo is obliged to make a mandatory offer for the share-holders of Topdanmark. As a result Sampo plc owns 46.7 per cent of Topdanmark’s shares and 49.3 per cent of votes. Topdanmark now becomesSampo’s associated company.
Sampo Group divests SampoBank Group to Danske Bank A/S. Following the transaction, Sampo’s business areas are: P&C insurance and life insurance.
Mandatum Bank joins the Group, and the Group’s name is shortened to Sampo.
Appendix – Separate Supplementary Information
Topdanmarkbecomes Sampo plc’ssubsidiary as of 30 Sept 2017.
20052003200220012000 2008 2011 2012 2013 2014 2016 20172004 20072006 20102009 2015 2018
Sampo’s ownership exceeds 36% and Nordax becomes Sampo’s accociatedcompany.
Sampo invests inNets and Saxo Bank
If P&C Reinsurance Programmes
46
If is using reinsurance to‒ Utilize its own capital base efficiently and reduce cost of capital‒ Limit large fluctuations of underwriting results‒ Get access to reinsurers’ competence base
If has the following Reinsurance Programmes in place
• Largest & most diversifiedportfolio in the Nordics
• Focus purely on underwriting• Specialised Reinsurance Unit
• Reinsurance partners having reinsurance as core business
• Diversified financially strong panel of reinsurers
• Stable reinsurance program • Efficient pricing and
broad terms
Additional reinsurance purchased for risks with property value accumulations according to Solvency II requirements.
In MillionCatastrophe/
EventProperty/
Risk CasualtyPersonalAccident Motor TPL Cargo Reporter
Capacity SEK 6,300 SEK 2,500/4,750 SEK 500/€50/$50 SEK 1,100 Unlimited SEK 1,000
Retention SEK 250 SEK 250 SEK 100/€10/$15 SEK 100 SEK 100 SEK 100
In MillionMarine HullReporter
Small VesselsClash Cover
Marine Hull I.V. Reporter
Marine Hull WarRisk Reporter
US TerrorismRisk
Capacity SEK 550 SEK 250 SEK 310 SEK 600 USD 250
Retention SEK 100 SEK 100 SEK 100 SEK 2.5 USD 25
Casualty/Cyber Event
SEK 600/€60/$55
SEK 200/€20/$25
Appendix – Separate Supplementary Information
Nordic P&C Insurance Market
23
21
18
6
12
17
If Finland
If Norway
If Sweden
If Denmark +Topdanmark
If Baltics
47
If18%
Topdanmark5%
Tryg9%
LF10%
Codan9%
Gjensidige8%
Folksam6%
OP6%
LähiTapiola4%
Other25%
If + Topdanmark 23%
Total premiums EUR 26 bn
• Consolidated markets• Loyal clients• Direct sales dominates the market• Various other distribution channels• Low expense ratios• Good profitability
Latest available data
Appendix – Separate Supplementary Information
Nordic Market Shares, % If P&C and Topdanmark P&C Market Shares by Country, %
Life insurance Market
48
Nordea31%
Mandatum Life21%
OP Life22%
LähiTapiola11%
Fennia4%
Sp-Henkivakuutus
4%
Aktia 3%
Other4%
Total premiums EUR 4.5 bn
• Various distribution channels• Bankassurance• Unit-linked products• Markets sensitive for regulation, tax changes,
interest rate movements
7
9
Baltics/Mandatum Life
Danmark/Topdanmark Life
Latest available data
Finland ‒ Market Shares, %
Appendix – Separate Supplementary Information
Mandatum Life and Topdanmark Life Market Shares by Country, %
(+Kaleva 1.3%)
SAMPO FICO GROUP
NORDEABANKINGGROUP
TOPDANMARK INSURANCEGROUP
Nordea Bank AB(SE) 21.3%
SIIGROUP
BANKINGGROUP
FICO GROUP
INSURANCE GROUP
Insurance BankingInvestmentServices Other
Topdanmark A/S(DK) 49.3%
If IT ServicesA/S (DK)
IF P&C InsuranceAS (EE)
IFINSURANCE GROUP
If P&C InsuranceHolding Ltd (SE)
IF P&C InsuranceLtd (SE)
Svithun AssuranceAS (NO) 33%
Autovahinko-keskus Oy(FI) 33.5%
Latvia
Lithuania
Denmark
Norway
MANDATUMINSURANCE GROUP
Mandatum LifeServices Oy (FI)
Mandatum LifeLtd (FI)
Mandatum LifeInvestment
Services Ltd (FI)
Mandatum LifeFund Manag.
Services Ltd (LU)
Latvia
Lithuania
IF Livförsäkring AB (SE)
CAB Group AB (SE) 22%
Urzus Group AS(NO) 30%
Various subsidiaries
SAMPO SII GROUP
Source: FSA Finland, February 2018
Subsidiary Associated CompanyBranch
Finland
EstoniaTopdanmarkForsikring A/S
(DK)
Danske ForsikringA/S (DK)
Topdanmark LivHolding A/S
(DK)
TopdanmarkLivforsikring A/S
(DK)
NykreditLivforsikring A/S
(DK)
TopdanmarkKapitalforvaltning
A/S (DK)
Topdanmark Invest A/S (DK)
TopdanmarkEjendom A/S
(DK)
NORDEAINSURANCE GROUP
Nordea LifeHolding AB (SE)
Various subsidiaries
Branch
Sampo plc (FI)
Sampo Group ‒ Legal Supervision Structure
Appendix – Separate Supplementary Information
49
JANUARY – JUNE 2018
Debt Investor Presentation
Sampo plcFabianinkatu 2700100 Helsinki, Finland
Phone: +358 10 516 0100Business ID: 0142213-3
www.sampo.com@Sampo_plcsampo-plc
Debt Investor PresentationSlide Number 2Slide Number 3Value Creation in the Nordic Financials as Group StrategySlide Number 5Efficient and Stable Operations as Basis for ValueIf P&C ‒ A Diversified Nordic P&C InsurerTopdanmark – A Danish Non-life and Life Insurer Mandatum Life ‒ A Finnish Financial Service Company Nordea – A Nordic Banking GroupDiversified Companies and Diversified Portfolio* Slide Number 12Investment AllocationSampo Group’s Own Funds and Solvency �According to Conglomerate Rules Sampo Group Solvency by Solvency II Rules June 30, 2018If P&CDiversified Client BaseIf P&C and BA average quarterly Combined Ratios vs. Deviation�Q2/2008-Q2/2018Conservative Investment Portfolio Seasonality in Quarterly Results and CR%Slide Number 21TopdanmarkSlide Number 23Slide Number 24Life insurance�Slide Number 26Mandatum LifeMandatum Life Business VolumesInvestment Portfolio covering With-Profit liabilitiesMandatum Life Profit by ComponentsSlide Number 31Nordea BankNordeaSampo plcSimple Cash Flows, low leverage and adequate liquidityCash and tradable financial investments 30.6.2018Slide Number 37Slide Number 38Reported Profit facilitates Debt ServicingIssued Debt InstrumentsAppendixSampo Group’s Outlook for the rest of 2018Sampo Group Steering Model and PrinciplesCalculation Principles of Sampo Group SolvencyStructural changes of Sampo Group to �the position as the leading Nordic financial groupIf P&C Reinsurance ProgrammesNordic P&C Insurance Market Life insurance MarketSlide Number 49Debt Investor Presentation