We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Name | Symbol | Market | Type |
---|---|---|---|
Citi Fun 26 | LSE:AS60 | London | Medium Term Loan |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0 | - |
SAMPO PLC STOCK EXCHANGE RELEASE 1 (44) 9 November 2006, at 8:45 Sampo Group's results for January - September 2006 RETURN TARGETS ACHIEVED IN ALL BUSINESS AREAS Sampo Group's profit before taxes in January-September 2006 exceeded one billion euros and amounted to EUR 1,019 million (1,007). Earnings per share rose to EUR 1.31 (1.29) and were, including the change in the fair value reserve, EUR 1.21 per share (1.64). All business areas achieved their RoE targets and annualised RoE (including change in fair value reserve) for the Group was 20.6 per cent (32.3). Net asset value per share rose to EUR 8.28 (7.39). - - Banking and investment services reported an excellent result for the first nine months of 2006 with profit before taxes rising to EUR 279 million (229). Net interest income amounted to EUR 276 million (255) and fees and commissions to EUR 189 million (166). The RoE target of 20 per cent was exceeded and the annualised RoE rose to 25.2 per cent (22.2). - - The combined ratio for P&C insurance improved to 89.9 per cent for January-September 2006 (91.6). Profit before taxes amounted to EUR 503 million (626). The annualised RoE exceeded the target of 17.5 per cent and was 19.2 per cent (25.3). - - In life insurance profit before taxes for the first nine months of 2006 was EUR 244 million (186). The annualised RoE amounted to 19.5 per cent (52.2), thereby exceeding the target of 17.5 per cent. KEY FIGURES 1-9 1-9 Change Q3 Q3 Change EUR m 2006 2005 % 2006 2005 % Profit before taxes Banking 279 229 22 101 93 9 P&C insurance 503 626 -20 317 251 26 Life insurance 244 186 31 28 41 -32 Other -11 -34 68 23 -10 - Group profit before taxes 1,019 1,007 1 461 374 23 Earnings per share, EUR 1.31 1.29 2 0.60 0.48 25 EPS(incl. change in FVR) EUR 1.21 1.64 -26 0.65 0.66 -2 NAV, EUR * ) 8.28 7.39 13 - - - Average number of staff (FTE) 11 628 11 735 -1 - - - Group solvency ratio, % 209.7 199.3 5 - - - RoEC, % 27.7 38.3 28 44.2 47.3 -7 RoE, % 20.6 32.3 -36 32.3 37.0 -13 * ) Less full deferred tax. The figures in this report are unaudited. Income statement items are compared on a year-on-year basis whereas comparison figures for balance sheet items are from 31.12.2005 unless otherwise stated. Third quarter in brief Sampo Group's profit before taxes for the third quarter of 2006 was EUR 461 million (374) and earnings per share amounted to EUR 0.60 (0.48). Taking the change in the fair value reserve into account, earnings per share were EUR 0.65 (0.66). In the third quarter of 2006 Sampo plc repurchased its own shares for EUR 14.3 million. Together with the EUR 29 million increase in the fair value reserve and the profit for the period this caused net asset value per share to increase from the end of the second quarter by EUR 0.64 to EUR 8.28. Banking and investment services reported a profit before taxes of EUR 101 million (93) in the third quarter. Net interest income grew by over 10 per cent to EUR 96 million (87), because of growth in the lending volumes and higher interest rates. Profit before taxes in P&C insurance was EUR 317 million in the third quarter (251). Net investment income increased from EUR 151 million to EUR 189 million. The insurance technical result was excellent and the combined ratio improved further to 86.3 per cent (89.1). Life operations made a profit before taxes of EUR 28 million (41). Premiums written were EUR 119 million, the same as a year before. The segment Other reported a profit before taxes of EUR 23 million in the third quarter (-10). Business areas Banking and investment services Sampo Group's banking and investment service companies are organised under Sampo Bank Group. Sampo Bank plc, the parent company, operates mainly in Finland and through subsidiaries in all the Baltic countries. Sampo Bank also has a branch office for corporate clients in Stockholm and is starting operations in Russia in late 2006. The investment services companies are Sampo Fund Management Ltd, Mandatum Asset Management Ltd, Mandatum Securities Ltd, Mandatum & Co Ltd, 3C Asset Management Ltd and Arvo Asset Management Ltd. Sampo Bank's branch network also operates as a distribution channel for other products such as life insurance and offers financial advisory services. Results 1-9 1-9 Change Q3 Q3 Change EUR m 2006 2005 % 2006 2005 % Net interest income 276 255 8 96 87 10 Net income from financial transactions 62 50 24 25 20 25 Net fee and commission income 189 166 14 58 59 -2 Impairment losses -1 7 - -6 0 - Net Income from investments 54 36 50 22 12 83 Other operating income 24 23 4 8 9 -11 Staff costs -149 -143 -4 -47 -41 -15 Other operating expenses -175 -164 -7 -55 -53 -4 Profit (loss) before taxes 279 229 22 101 93 9 Key figures Cost to income ratio, % 53.7 58.0 -7 51.8 54.2 -4 Return on equity, % 25.2 22.2 15 24.6 28.7 -14 Average number of staff (FTE) 4,380 4,171 5 - - - Banking and investment services performed very well and profit before taxes for the first nine months increased 22 per cent to EUR 279 million (229). This increase was mainly derived from higher net interest and fee and commission income. Annualised return on equity amounted to 25.2 per cent (22.2), clearly above the target RoE of 20 per cent. Profit before taxes for the first nine months includes one-off sales gains worth EUR 40 million. EUR 16 million gain was booked in the third quarter and EUR 24 million gain in the first quarter of 2006. Comparison figure includes one-off sales gains worth EUR 32 million. Net interest income rose to EUR 276 million (255) due to lending volume growth and higher interest rate level. Already risen interest rates had positive impact on interest income, especially during the third quarter. Net income from financial transactions, under which part of the interest income is booked, also benefited from higher rates. Housing loan margins have stabilized, however the average lending margin gradually decreases due to lower margins on new loans. Net fee and commission income grew to EUR 189 million (166) and was particularly driven by strong growth in asset management fees. Total operating costs amounted to EUR 325 million (306). Growth in costs derives mainly from the Baltic operations. Cost-to-income-ratio continued to improve and was 53.7 per cent (58.0) during the first nine months. Loans and advances to customers increased by 12 per cent from year-end 2005 and totaled EUR 20,632 million (18,484). Good growth in mortgages continued and the stock rose year-on-year 22 per cent to EUR 9,307 million. However, Sampo Bank no longer aims to outpace the market growth in Finland and during the third quarter mortgage growth was in-line with the general market growth. Rapid growth continued in consumer credits. At the end of September loans to private customers represented 57 per cent and loans to corporate customers 43 per cent of the total loan portfolio. Corporate lending increased to EUR 8,795 million (8,130). Geographically the Baltic countries continued to provide the fastest growth in both lending and deposits. The Baltic loan stock exceeded two billion euros and amounted to EUR 2,100 million (1,447). Credit quality remained firm and net impairment on loans and receivables was EUR -1 million (7). Non-performing loans were 24 basis points of the total loan stock at the end of September. Deposits amounted to EUR 12,247 million increasing 7 per cent from year end 2005 (11,442). Deposit margins rose following higher interest rates. Rapid growth continued in mutual fund assets, which rose 17 per cent from year-end 2005 to a new record level of EUR 10,390 million. Net subscriptions in Sampo's mutual funds this year amount to EUR 1,163 million. Mutual fund assets include EUR 983 million of Sampo Group investments (1,226), representing 9.5 per cent of total assets (13.8). Sampo Bank Group's capital adequacy was 11.1 per cent (10.6). The tier 1 ratio was 7.3 per cent (7.6) and tier 1 capital rose to EUR 1,288 million (1,255). Risk-weighted assets grew to EUR 17,682 million (16,466). In July Sampo Bank plc securitized approximately one billion euros of the corporate loans in its balance sheet. A special company, Sea Fort Securities plc, was established for the transaction. The transaction released capital for future growth and adjusted the Bank's credit risk profile. In September Sampo Housing Loan Bank plc issued its second EUR 1 billion covered bond on the international capital markets. The bond was issued under the EUR 5 billion covered bond programme and followed a transfer of a EUR 850 million housing loan portfolio from Sampo Bank plc to Sampo Housing Loan Bank plc. P&C insurance If P&C insurance group is the leading property and casualty insurance group in the Nordic region. Its operations also encompass the Baltic countries. If P&C Insurance Holding Ltd, headquartered in Sweden, is the parent company for property and casualty insurance within the Sampo Group. Business operations are conducted via subsidiaries and branch offices in the Nordic and Baltic countries. Results 1-9 1-9 Change Q3 Q3 Change EUR m 2006 2005 % 2006 2005 % Insurance premiums earned 2,813 2,765 2 944 939 1 Net income from investments 226 401 -44 189 151 25 Other operating income 16 14 14 5 4 25 Claims incurred -1,881 -1,856 -1 -611 -611 0 Staff costs -310 -321 3 -107 -110 3 Other expenses -360 -377 5 -104 -122 15 Profit (loss) before taxes 503 626 -20 317 251 26 Key figures Combined ratio, % 89.9 91.6 -2 86.3 89.1 -3 Risk ratio, % 66.9 67.1 0 64.7 65.1 -1 Cost ratio, % 23.0 24.4 -6 21.6 24.0 -10 Expense ratio, % 16.7 17.9 -7 15.4 17.4 -12 Return on equity, % 19.2 25.3 -24 39.4 30.2 31 Average number of staff (FTE) 6,453 6,616 -3 - - - Profit before taxes of the P&C insurance operation was EUR 503 million (626). The technical result rose to EUR 414 million (362). Private business area accounted for 54 per cent, Commercial for 32 per cent, Industrial for 11 per cent and the Baltic countries for 1 per cent of the technical result. EUR 64 million was released from technical reserves relating to prior year claims (24). The insurance margin - technical result in relation to net premiums earned - amounted to 14.7 per cent (13.1). The target RoE of 17.5 per cent was achieved with an annualised RoE of 19.2 per cent (25.3). Combined ratio for the first nine months of 2006 was 89.9 per cent (91.6). Performance improved in all business areas, except in Baltics, which is still suffering from the large claims in the first quarter of 2006. In geographic terms the improvement was most significant in Finland, where the combined ratio decreased by 7.2 percentage points to 93.7 per cent. The improvements in the combined ratio for the Finnish entities have been achieved despite an intensified competitive situation in Finland during 2006. Competition has been particularly evident in motor insurance for private customers. If has been able to achieve the improved combined ratio both through risk selection as well as cost efficiency measures. If is meeting the increased competition in the market with product and service developments, and by rewarding and retaining risk aware customers. If reported a cost ratio of 23.0 per cent for the first nine months of 2006 (24.4) and a cost ratio of 21.6 per cent for the third quarter (24.0). Nominal costs decreased 4 per cent to EUR 670 million (698). Part of the exceptionally strong decrease is explained by a number of projects, campaigns and manning decisions being delayed until the fourth quarter of 2006. Cost ratio in the fourth quarter will therefore be higher than in the third quarter, although cost efficiency is expected to continue to develop favourably. Gross written premiums grew by 2 per cent and were EUR 3,228 million (3,165). Premium growth was strongest in Baltics with 15 per cent, but business areas Commercial and Industrial also grew by approximately 4 per cent. Geographically premium growth was strongest in Norway. On 30 September 2006 the total investment assets of If amounted to EUR 10.1 billion, of which 89 per cent was invested in fixed income instruments (84), 10 per cent in equity (12) and 1 per cent in other assets (4). Investment climate in the third quarter was significantly better than in the previous quarter and investment income rose to EUR 189 million after having been EUR 47 million negative in the second quarter. January-September 2006 investment income amounted to EUR 226 million (401) and the return on investments was 2.8 per cent at market value (4.9). Solvency capital amounted to EUR 3,079 million on 30 September 2006 (3,216). The solvency ratio - solvency capital in relation to net premiums written - was 81 per cent (88). Reserve ratios strengthened marginally and reserves were 159 per cent (157) of net premiums written and 258 per cent of claims paid (256). In October 2006 If entered a partnership with Handelsbanken Liv to expand its product range in Norway's compulsory company pensions system (OTP pension system). If will strengthen its focus by offering additional insurance covering both disability and child pension. As part of this process, Sampo Life Insurance Company Limited has sold its Norwegian OTP pension portfolio to Handelsbanken Liv. Life insurance Sampo Life Group consists of Sampo Life, a wholly-owned subsidiary of Sampo plc, operating in Finland and of its subsidiaries in all the Baltic countries. The company also has a subsidiary in Sweden and a branch office in Norway to complement the product offering of If P&C. Results 1-9 1-9 Change Q3 Q3 Change EUR m 2006 2005 % 2006 2005 % Premiums 422 433 -3 119 119 0 Net income from investments 407 442 -8 108 157 -31 Other operating income 0 2 - 0 0 - Claims incurred -397 -448 11 -131 -154 15 Change in liabilities for inv. and ins. contracts -144 -204 29 -55 -70 21 Staff costs -15 -15 0 -5 -4 -25 Other operating expenses -29 -24 21 -10 -8 -25 Profit (loss) before taxes 244 186 31 28 41 -32 Key figures Expense ratio, % 102.6 92.9 10 100.2 91.7 +9 Return on equity, % 19.5 52.2 -63 28.8 57.5 -50 Average number of staff (FTE) 361 371 -3 - - - Sampo Life Group reported a profit before taxes of EUR 244 million (186) for the first nine months of 2006. Investment income, excluding income on unit-linked contracts, amounted to EUR 358 million (314). Sampo Life realised a significant amount of equity gains during the first half of 2006. The change of the fair value reserve during the first nine months of 2006 was EUR -52 million (206). RoE target for life insurance operation, 17.5 per cent, was achieved as the annualised RoE reached 19.5 per cent (52.2). Fixed income yields picked up in the third quarter and the overall return on investments at market value for January-September 2006 rose to 5.0 per cent (10.0). Market value of Sampo Life Group's investment assets, excluding the assets of EUR 1.5 billion (1.3) covering unit-linked liabilities, were EUR 5.7 billion (5.9) on 30 September 2006. Fixed income covered 67 per cent (64), equity 31 per cent (33) and real estate 2 per cent (3) of the total assets. Equity investments include direct equity holdings, equity funds and private equity. Sampo Life Group solvency capital on 30 September 2006 amounted to EUR 1,034 million (1,077), which is 4.5 times the minimum requirement. Solvency ratio remained high at 20.4 per cent (21.3). Total technical reserves were EUR 6.2 billion (6.0), of which unit-linked reserves accounted for 24.7 per cent (21.3). Sampo Life Group's premium income on own account was EUR 422 million (433). The comparison figure contains two single premium with-profit contracts transferring the liabilities of two pension funds to Sampo Life and totalling almost EUR 80 million in premiums. Premiums in the focus area, unit-linked insurance, grew to EUR 281 million (188). Premiums from with-profit policies decreased sharply to EUR 141 million from EUR 245 million. Unit-linked premiums represent 66 per cent (42) of total premiums against the industry average of 53 per cent. Regular premiums amounted to EUR 231 million (215) and their share of total premiums increased to 54 per cent (48). Sampo Life's position in the focus area strengthened further as the market share in unit-linked premiums in Finland increased to 23.7 per cent (20.9). Overall Sampo Life has a market share of 19.3 per cent (20.1) in Finland. The rapid growth of the Baltic subsidiaries continues and their premium income rose by 93 per cent to EUR 23 million (12). Sampo Life's Swedish subsidiary If Liv focuses on risk policies in cooperation with If P&C. The company's premium income amounted to EUR 2 million. Other The operations of Sampo plc (the holding company) and Primasoft are reported in this segment. Sampo plc's main function is to own and control the subsidiaries engaged in insurance, banking and investment services. Primasoft provides IT services for various companies in Sampo Group. Results 1-9 1-9 Change Q3 Q3 Change EUR m 2006 2005 % 2006 2005 % Net interest income -33 -29 -14 -8 -9 11 Net income from financial transactions 0 0 - -1 0 - Fees and commissions, net -1 -1 0 0 0 - Impairment losses 2 -2 - 0 -2 - Net income from investments 14 12 17 4 5 -20 Other operating income 79 56 41 49 17 188 Staff costs -29 -31 7 -9 -8 -13 Other operating expenses -44 -41 -7 -13 -12 -8 Profit (loss) before taxes -11 -34 68 23 -10 - The segment's loss before taxes amounted to EUR 11 million (-34). In the third quarter of 2006 the segment reported a profit of EUR 23 million (-10), because Sampo plc was awarded EUR 30 million in compensation for damages for breach of contractual duties. Sampo plc's balance sheet has strengthened significantly in 2006 and the liabilities to external creditors are less than EUR 1 billion on 30 September 2006. In addition to short-term operational financing, liabilities include two debt instruments - a subordinated note and a senior note with face values of EUR 600 million and EUR 300 million respectively. Sampo plc's balance sheet total was EUR 4.0 billion (3.6). Of this amount, holdings in banking and investment services companies accounted for EUR 0.8 billion (0.9) and holdings in insurance companies for EUR 2.4 billion (2.4). Primasoft has a negligible impact on the profit or loss of the Other segment. Developments in the third quarter of 2006 Changes in Group structure Sampo plc's fully-owned subsidiary Sampo Bank plc announced in April its intention to acquire Industry and Finance Bank (Profibank), a Russian bank based in St. Petersburg. The necessary official permits, upon which the transaction was conditional, were obtained and Sampo Bank closed the transaction in August 2006. The book value of the acquired assets was EUR 0.4 million and fair value EUR 5.3 million. The acquired assets mostly consist of a banking license, which was entered into intangible assets at the value of EUR 4.9 million. Changes in share capital Sampo plc's Board of Directors decided on 11 May 2006, on the basis of the authorisation granted by the Annual General Meeting, to repurchase a maximum of 15 million Sampo A shares. Shares will be repurchased by 31 December 2006 at the latest. Repurchases started on 31 May and 4,328,500 shares have been repurchased by 9 November. EUR 63.8 million was used to acquire the shares. 907,500 shares were repurchased during the third quarter of 2006 for EUR 14.3 million. On 30 September 2006 Sampo plc held 4,328,500 Sampo A shares corresponding to 0.77 per cent of the total amount of shares and votes. The repurchased shares correspond to EUR 0.73 million in share capital on 30 September 2006. On 10 August 2006 the Board approved subscriptions with the warrants of the 2000 option programme for a total of 126,800 A shares. The subscriptions increased the share capital by EUR 21,326.23. On 30 September 2006 Sampo plc's share capital amounted to EUR 95,065,103.85, and the number of A shares totalled 564,031,440. The total number of shares of the company, including 1,200,000 B-shares was 565,231,440. On 9 October 2006 the subscriptions of 121,450 A shares were approved with the warrants of the Sampo plc's 2000 option programme. Sampo plc's share capital after the subscription amounts to EUR 95,085,530.27 and the number of A shares is 564,152,890 shares. After the increase, the total number of shares of the company, including 1,200,000 B shares, amounts to 565,352,890 shares. Staff Sampo Group's full-time equivalent staff on 30 September 2006 amounted to 11,676 employees (11,627). 38 per cent of the staff worked in banking and investment services, 55 per cent in P&C insurance, 3 per cent in life insurance, 1 per cent in the holding company and 3 per cent in Primasoft. 50 per cent worked in Finland, 16 per cent in Sweden, 14 per cent in Norway and 20 per cent in other countries. The staff continued to decrease in P&C insurance and Primasoft and increase in the banking operations, mainly because of rapid growth in the Baltic countries. The average number of employees during the first three quarters of 2006 was 11,628 (11,735). Management long-term incentive schemes The payout on Sampo Group's long-term management incentive schemes is dependent on Sampo's financial and share price performance. The incentive schemes 2003I - 2006I extend to 2009. The incentive schemes increased staff costs in the third quarter of 2006 by EUR 6 million and on 30 September 2006 the total provision for the schemes was EUR 42 million. Under the "Sampo 2006" share-based incentive plan a maximum of 1,500,000 Sampo A shares can be distributed in 2008-2010. Sampo's Board of Directors has allocated 1,300,000 shares of the plan and confirmed the performance criteria. This incentive plan increased staff costs by EUR 1 million in the third quarter of 2006. Ratings All the main ratings for Sampo Group companies remained unchanged in the third quarter of 2006. +-------------------------------------------------------------------+ | Rated company | Moody's | Standard and Poor's | |-------------------------+-------------------+---------------------| | | Rating | Outlook | Rating | Outlook | |-------------------------+--------+----------+-----------+---------| | Sampo plc | Baa1 | Positive | Not rated | - | |-------------------------+--------+----------+-----------+---------| | Sampo Bank plc | A1/P-1 | Stable | A/A-1 | Stable | |-------------------------+--------+----------+-----------+---------| | AS Sampo Pank (Estonia) | A2*/P1 | Stable | Not rated | - | |-------------------------+--------+----------+-----------+---------| | If P&C Insurance | A2 | Positive | A | Stable | | (Sweden) | | | | | |-------------------------+--------+----------+-----------+---------| | If P&C Insurance Co. | A2 | Positive | A | Stable | | (Finland) | | | | | |-------------------------+--------+----------+-----------+---------| | * Long-term bank | | | | | | deposit | | | | | +-------------------------------------------------------------------+ Group solvency Group solvency is calculated according to the consolidation method defined in the Chapter 3 of the Act of the Supervision of Financial and Insurance Conglomerates, which entered into force on 1 January 2005. In the consolidation method items, which according to bank or insurance regulations are part of own funds but not equity, are added to group's balance sheet equity. Items, which are not available to cover losses in other group companies, are, however, not included in own funds. The Group's solvency ratio (own funds in relation to minimum requirements for own funds) on 30 September 2006 was 209.7 per cent (196.1). SAMPO GROUP SOLVENCY 30.9.2006 31.12.2005 30.9.2005 EUR m Group capital 4,652.9 4,348.1 4,145.0 Sectoral items 2,938.4 2,733.1 2,200.8 Intangibles and sectoral deductibles -2,277.1 -2,254.5 -1,212.6 Other sectoral non-transferable items -471.6 -493.8 -724.2 Group's own funds, total 4,842.6 4,332.9 4,408.9 Minimum requirements for own funds, total 2,309.6 2,209.3 2,212.1 Group solvency 2,533.0 2,123.6 2,196.8 Group solvency ratio (Own funds % of minimum requirements) 209.7% 196.1% 199.3% In Sampo Group risks are described and aggregated internally through economic capital, which describes the amount of capital needed to bear different kinds of risks. The economic capital tied up in the Group's operations on 30 September 2006 was EUR 3,185 million (3,148). Outlook for the rest of 2006 Sampo Group's result for 2006 is expected to be good, mainly as a result of sound operating profitability in all of its business areas. Sampo Bank Group continues to benefit from rising interest rates and is foreseen to report an excellent result for 2006. Favourable trends in fee income growth and moderate cost growth are expected to continue. The bank will achieve its RoE target of 20 per cent. Sampo Group's P&C insurance operation, If, is expected to reach a combined ratio of 90-91 per cent for the full year 2006. If is foreseen to reach its RoE target of 17.5 per cent unless investment market conditions weaken significantly. If reports its investments at market value through the income statement whereby changes in share prices or interest rates are directly reflected in its result. Sampo Life Group's full-year 2006 result is expected to be good and it is also foreseen to reach the RoE target of 17.5 per cent. Life insurance operations continue to focus on unit-linked insurance and risk policies both in Finland and the Baltics. The parent company, Sampo plc (included in the segment Other), will in the last quarter of 2006 report a loss of approximately EUR 8 million, consisting mainly of interest payments on debt. The biggest risk for the outlook is a severe weakening of equity markets. A sudden rise in interest rates would in the short term cause losses by lowering the value of bond portfolios, but in the longer run it would enhance fixed income yields and bank's net interest income. Sampo Group is strongly capitalised and can therefore withstand significant investment market volatility. SAMPO PLC Board of Directors For more information, please contact: Peter Johansson, Group CFO, tel. +358 10 516 0010 Jarmo Salonen, Head of Investor Relations, tel. +358 10 516 0030 Hannu Vuola, Head of Group Communications, tel. +358 10 516 0040 Sampo will arrange an English-language telephone conference for investors and analysts on the third quarter results at 12.30 p.m. Please call +44 20 7162 0025 (UK/Europe) or +1 334 323 6201 (North America). Password: SAMPO. The conference can also be followed from a direct transmission on the Internet at www.sampo.com/ir. A recorded version will later be available at the same address. Sampo will publish the full year 2006 results on 13 February 2007. DISTRIBUTION: The Helsinki Stock Exchange The principal media www.sampo.com Financial Supervisory Authority GROUP FINANCIAL REVIEW 1-9/ 1-9/ 1-12/ FINANCIAL HIGHLIGHTS 2006 2005 2005 GROUP Revenue EURm 5,182 5,252 6,843 Profit before taxes EURm 1,019 1,007 1,295 % of revenue % 19.7 19.2 18.9 Return on equity (at fair value) % 20.6 32.3 28.4 Return on assets (at fair value) % 3.5 4.6 4.4 Equity/assets ratio % 10.0 9.3 10.1 RoEC % 27.7 38.3 35.0 Group solvency ¹) EURm 2,533 2,197 2,124 Group solvency ratio % 209.7 199.3 196.1 Average number of staff 11,628 11,735 11,730 BANKING AND INVESTMENT SERVICES Revenue EURm 1,025 788 1,105 Net interest income EURm 276 255 346 Profit before taxes EURm 279 229 316 % of revenue % 27.2 29.0 28.6 Cost to income ratio % 53.7 58.0 57.3 Return on equity (at fair value) % 25.2 22.2 23.1 Average number of staff 4,380 4,171 4,201 PROPERTY & CASUALTY INSURANCE Revenue EURm 3,218 3,503 4,398 Premiums written before reinsurers' share EURm 3,228 3,165 3,962 Premiums earned EURm 2,813 2,765 3,709 Profit before taxes EURm 503 626 800 % of revenue % 15.6 17.9 18.2 Return on equity (at current value) % 19.2 25.3 24.1 Risk ratio ²) % 66.9 67.1 66.2 Cost ratio ²) % 23.0 24.5 24.3 Loss ratio ²) % 74.7 75.1 74.1 Loss ratio before unwinding of discount ²) % 73.2 73.7 72.7 Expense ratio ²) % 16.7 17.9 17.8 Combined ratio % 91.3 93.0 91.9 Combined ratio before unwinding of discount % 89.9 91.6 90.5 Average number of staff 6,453 6,616 6,592 LIFE INSURANCE Revenue EURm 835 889 1,240 Premiums written before reinsurers' share EURm 428 447 655 Profit before taxes EURm 244 186 234 % of revenue % 29.2 20.9 18.8 Return on equity (at current value) % 19.5 52.2 39.0 Expense ratio % 102.6 92.9 93.4 Average number of staff 361 371 370 OTHER BUSINESS Profit before taxes EURm -11 -34 -49 Average number of staff 434 577 567 PER SHARE KEY FIGURES Earnings per share EUR 1.31 1.29 1.68 Earnings per share, incl. change in fair value reserve EUR 1.21 1.64 1.97 Diluted earnings per share ³) EUR 1.28 1.26 1.65 Equity per share EUR 8.26 7.36 7.65 Net asset value per share EUR 8.28 7.39 7.67 Adjusted share price, high EUR 17.99 13.69 14.95 Adjusted share price, low EUR 13.58 9.83 9.83 Market capitalisation EURm 9,221 7,251 8,312 ¹) Group solvency is calculated according to the consolidation method defined in Chapter 3 of the Act on the Supervision of Financial and Insurance Conglomerates, which entered into force on 1 January 2005. Solvency ratio is defined as the ratio of own funds to the sum of minimum requirements calculated under sectoral rules. ²) Key figures for P&C Insurance are based on activity based costs and cannot, therefore, be calculated directly from the consolidated income statement. The result analysis of P&C insurance is presented in note 20. In calculating the per share key figures the number of shares used at the balance sheet date was 560,902,940, the average number of shares during the period 563,511,668 and the diluted average number of shares 577,852,010. The numbers have been adjusted for the 4,328,500 own shares held by Sampo Plc. ³) The dilution effect has been calculated as if all the remaining subscription rights (4,656,325/the option programme of 2000 at the end of September, 2006) would have been realised. One subscription right entitles to subscribe 5 shares. In calculating the key figures the tax corresponding to the result for the accounting period has been taken into account. Investment property has been measured at fair value when calculating return on assets, return on equity, equity/assets ratio and net asset value per share. Additionally, the change in fair value reserve has been taken into account in return on assets and return on equity. A deferred tax liability has been deducted from valuation differences. The key figures for Banking and Investment Services and Other business have been calculated in accordance with FSA standard 3.1. The key figures for the insurance business have been calculated in accordance with the decree of the Ministry of Finance and the specifying instruction 12/002/2005 of the Insurance Supervisory Authority. GROUP QUARTERLY INCOME STATEMENT 7-9/ 4-6/ 1-3/ 10-12/ 7-9/ EURm 2006 2006 2006 2005 2005 Net interest income 93 86 73 86 76 Net income from financial transactions 16 19 19 17 24 Net fee and commission income 52 63 60 50 57 Impairment losses on loans and receivables -6 5 2 -4 -1 Insurance premiums 1,064 1,077 1,094 1,161 1,058 Net income from investments 317 13 367 203 320 Other operating income 47 14 13 40 11 Total operating income 1,583 1,278 1,627 1,552 1,546 Claims incurred -742 -746 -791 -710 -765 Change in liabilities for insurance and investment contracts -55 45 -135 -186 -70 Staff costs -166 -162 -171 -201 -161 Other operating expenses -159 -196 -192 -167 -176 Total operating expenses -1,122 -1,059 -1,288 -1,264 -1,172 Profit before taxes from continuing operations 461 219 339 287 374 Profit before taxes from discontinued operations - - - 1 0 Profit before taxes 461 219 339 288 374 Taxes -124 -63 -81 -63 -102 Profit for the period 337 156 258 225 273 Attributable to Equity holders of parent company 335 154 248 222 270 Minority interests 2 2 9 3 3 CONSOLIDATED INCOME STATEMENT, IFRS 1-9/ 1-9/ 1-12/ EURm Note 2006 2005 Change 2005 Net interest income 1 252 229 23 315 Net income from financial transactions 2 54 54 0 71 Net fee and commission income 3 175 153 22 203 Impairment losses on loans and receivables 4 0 6 -5 1 Insurance premiums 5 3,234 3,198 37 4,358 Net income from investments 6 697 881 -184 1,084 Other operating income 75 33 42 72 Total operating income 4,487 4,553 -66 6,104 Claims incurred -2,278 -2,304 26 -3,014 Change in liabilities for insurance and investment contracts -144 -204 60 -390 Staff costs 7 -500 -504 5 -706 Other operating expenses -547 -533 -15 -700 Total operating expenses -3,469 -3,545 76 -4,809 Profit before taxes from continuing operations 1,019 1,008 10 1,295 Profit before taxes from discontinued operations - -1 1 - Profit before taxes 1,019 1,007 11 1,295 Taxes -268 -269 1 -332 Profit for the period 751 738 12 963 Attributable to Equity holders of parent company 738 727 949 Minority interests 13 11 14 Earning per share (eur) Basic 1.31 1.29 1.68 Diluted 1.28 1.26 1.65 CONSOLIDATED BALANCE SHEET, IFRS EURm Note 9/2006 12/2005 9/2005 Assets Cash and balances at central banks 1,860 1,665 1,479 Financial assets at fair value through p/l 8, 9 2,574 2,537 2,886 Loans and receivables 10 21,270 18,919 18,898 Investments 11 15,756 15,312 15,519 Investments related to unit-linked contracts 12 1,548 1,262 1,155 Reinsurers' share of insurance liabilities 568 558 622 Intangible assets 13 836 843 849 Property, plant and equipment 134 135 140 Other assets 2,126 1,580 2,972 Tax assets 161 173 178 Assets classified as held for sale - - 89 Total assets 46,833 42,985 44,788 Liabilities Financial liabilities at fair value through p/l 8, 9 577 649 925 Amounts owed to credit institutions and customers 14 12,657 12,260 11,558 Debt securities in issue 15 11,588 9,647 9,986 Liabilities for insurance and investment contracts 16 13,051 12,623 12,758 Liabilities for unit-linked insurance and investment contracts 17 1,542 1,262 1,151 Other liabilities 2,170 1,650 3,649 Tax liabilities 595 545 573 Liabilities directly associated with assets classified as held for sale - - 18 Total liabilities 42,181 38,637 40,617 Equity 95 96 96 Share capital 1,763 1,814 1,842 Reserves 2,776 2,412 2,208 Retained earnings 4,634 4,322 4,145 Equity attributable to parent company's equityholders 19 26 26 Minority interests 4,653 4,348 4,171 Total equity 46,833 42,985 44,788 Total equity and liabilities STATEMENT OF CHANGES IN EQUITY, IFRS Share Fair Share premium Legal value Retained Minority EURm capital account reserve reserve earnings Total interests Total Equity at 1 Jan. 2005 95 1,019 370 233 1,723 3,440 26 3,465 Cash flow hedges: - recognised in equity during the period 8 8 8 - recognised in p/l -9 -9 -9 Financial assets available-for-sale - change in fair value 348 348 348 - recognised in p/l -144 -144 -144 Exchange rate translation difference -45 -45 -45 Profit for the period 727 727 11 738 Total income and expenses recognised for the period 202 682 884 11 895 Dividends -113 -113 -11 -124 Subscription for shares with options 1 17 18 18 Acquisition of own shares -88 -88 -88 Recognition of undrawn dividends 4 4 4 Equity at 30 September 2005 96 1,036 370 435 2,208 4,145 26 4,171 Equity at 1 Jan. 2006 96 1,048 370 396 2,412 4,322 26 4,348 Cash flow hedges: - recognised in equity during the period 0 0 0 - recognised in p/l -1 -1 -1 Financial assets available-for-sale - change in fair value 92 92 92 - recognised in p/l -146 -146 -146 Exchange rate translation difference 15 15 15 Profit for the period 738 738 13 751 Total income and expenses recognised for the period -55 754 698 13 711 Dividends -339 -339 -20 -359 Subscription for shares with options 0 3 4 4 Acquisition of own shares -64 -64 -64 Recognition of undrawn dividends 13 13 13 Cancellation of own shares -1 1 0 0 Equity at 30 September 2006 95 1,052 370 341 2,776 4,634 19 4,653 CASH FLOW STATEMENT, IFRS 1-9/2006 1-9/2005 1-12/2005 Cash and cash equivalents at the beginning of the period 1,787 1,254 1,254 Cash flows from/used in operating activities -1,304 -1,542 -1,147 Cash flows from/used in investing activities -34 -15 75 Cash flows from/used in financing activities 1,581 1,943 1,605 Cash and cash equivalents at the end of the period 2,029 1,639 1,787 The cash flow statement reports cash flows during the period classified by operating, investing and financing activities. Cash flows are reported by using the indirect method. Cash flows from operating activities derive primarily from the principal revenue-producing activities. Cash flows from investments in subsidiaries and associated undertakings and those from investments in intangible assets and property, plant and equipment are presented in investing activities. Financing activities include cash flows resulting from changes in equity and borrowings in order to conduct the business. Cash and cash equivalents consist of cash at bank and in hand, balances with central banks, loans and advances to credit institutions repayable on demand and short-term deposits (under 3 months). NOTES ACCOUNTING POLICIES Sampo Group's consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS) adopted by the EU. The interim financial statements are presented in accordance with IAS 34 Interim Financial Reporting. In preparing the interim financial statements, the same accounting policies and methods of computation are applied as in the financial statements for 2005. The financial statements for 2005 are available on Sampo's website at the address www.sampo.com/ir. SEGMENT INFORMATION The Group's primary segmentation is based on business areas whose risks and performance bases as well as regulatory environment differ from each other. Business segments are Banking and investment services, P&C insurance, Life insurance and Other operations. Other operations comprise the operations of the holding company and the Primasoft Oy information technology firm. Inter-segment pricing is based on market prices. Inter-segment transactions, assets and liabilities are eliminated in the consolidated financial statements on a line-by-line basis. CONSOLIDATED INCOME STATEMENT BY SEGMENT FOR NINE MONTHS ENDED 30 SEPTEMBER 2006 Banking and P&C Life EURm investment insurance insurance Other Elimina-tion Group Net interest income 276 -33 9 252 Net income from financial transactions 62 0 -8 54 Net fee and commission income 189 -1 -13 175 Impairment losses on loans and receivables -1 2 0 0 Insurance premiums 2,813 422 3,234 Net income from investments 54 226 407 14 -4 697 Other operating income 24 16 0 79 -44 75 Total operating income 603 3,054 829 62 -61 4,487 Claims incurred -1,881 -397 -2,278 Change in liabilities for insurance and investment contracts -144 -144 Staff costs -149 -310 -15 -29 4 -500 Other operating expenses -175 -360 -29 -44 62 -547 Total operating expenses -325 -2,551 -586 -73 65 -3,469 net income between the segments 14 9 22 -45 Profit before taxes 279 503 244 -11 4 1,019 Taxes -268 Profit for the period 751 Attributable to Equity holders of parent company 738 Minority interests 13 CONSOLIDATED INCOME STATEMENT BY SEGMENT FOR NINE MONTHS ENDED 30 SEPTEMBER 2005 Banking and P&C Life EURm investment insurance insurance Other Elimina-tion Group Net interest income 255 -29 3 229 Net income from financial transactions 50 0 4 54 Net fee and commission income 166 -1 -12 153 Impairment losses on loans and receivables 7 -2 6 Insurance premiums 2,765 433 3,198 Net income from investments 36 401 442 12 -10 881 Other operating income 23 14 2 56 -63 33 Total operating income 536 3,180 877 37 -77 4,553 Claims incurred -1,856 -448 -2,304 Change in liabilities for insurance and investment contracts -204 -204 Staff costs -143 -321 -15 -31 4 -504 Other operating expenses -164 -377 -24 -41 73 -533 Total operating expenses -306 -2,554 -690 -72 77 -3,545 net income between the segments 7 30 23 -60 Profit before taxes from continuing operations 229 626 187 -34 - 1,008 Profit before taxes from discontinued operations 0 -1 -1 Profit before taxes 229 626 186 -34 - 1,007 Taxes -269 Profit for the period 738 Attributable to Equity holders of parent company 727 Minority interests 11 CONSOLIDATED INCOME STATEMENT BY SEGMENT FOR YEAR ENDED 31 DECEMBER 2005 Banking and P&C Life EURm investment insurance insurance Other Elimina-tion Group Net interest income 346 -39 8 315 Net income from financial transactions 65 0 6 71 Net fee and commission income 221 -1 -17 203 Impairment losses on loans and receivables 3 -2 1 Insurance premiums 3,709 649 4,358 Net income from investments 46 460 586 15 -23 1,084 Other operating income 60 18 2 76 -84 72 Total operating income 740 4,187 1,238 49 -111 6,104 Claims incurred -2,457 -557 -3,014 Change in liabilities for insurance and investment contracts -390 -390 Staff costs -200 -447 -20 -44 5 -706 Other operating expenses -224 -484 -37 -55 100 -700 Total operating expenses -425 -3,387 -1,004 -98 105 -4,809 net income between the segments 28 35 18 -81 Profit before taxes from continuing operations 316 800 234 -49 -6 1,295 Profit before taxes from discontinued operations 0 0 0 Profit before taxes 316 800 234 -49 -6 1,295 Taxes -332 Profit for the period 963 Attributable to Equity holders of parent company 949 Minority interests 14 CONSOLIDATED BALANCE SHEET BY SEGMENT AT 30 SEPTEMBER 2006 Banking and P&C Life EURm investment insurance insurance Other Elimina-tion Group Assets Cash and balances at central banks 1,552 336 81 -109 1,860 Financial assets at fair value through p/l 2,444 136 18 0 -25 2,574 Loans and receivables 21,268 431 -428 21,270 Investments 430 10,050 5,598 3,381 -3,703 15,756 Investments related to unit-linked contracts 1,548 1,548 Reinsurers' share of insurance liabilities 562 5 568 Intangible assets 72 586 158 20 836 Property, plant and equipment 83 27 5 19 134 Other assets 536 1,365 162 106 -42 2,126 Tax assets 20 118 3 20 1 161 Total assets 26,405 13,179 7,579 3,976 -4,306 46,833 Liabilities Financial liabilities at fair value through p/l 470 120 14 9 -36 577 Amounts owed to credit institutions and customers 13,103 92 -537 12,657 Debt securities in issue 10,692 442 100 882 -528 11,588 Liabilities for insurance and investment contracts 8,356 4,696 13,051 Liabilities for unit-linked insurance and investment contracts 1,542 1,542 Other liabilities 939 1,056 130 86 -41 2,170 Tax liabilities 33 397 159 5 0 595 Total liabilities 25,237 10,370 6,641 1,075 -1,142 42,181 Equity Share capital 95 Reserves 1,763 Retained earnings 2,776 Equity attributable to parent company's equityholders 4,634 Minority interests 19 Total equity 4,653 Total equity and liabilities 46,833 CONSOLIDATED BALANCE SHEET BY SEGMENT AT 31 DECEMBER 2005 Banking and P&C Life EURm investment insurance insurance Other Elimina-tion Group Assets Cash and balances at central banks 1,290 366 211 -201 1,665 Financial assets at fair value through p/l 2,409 87 46 3 -8 2,537 Loans and receivables 18,913 62 -55 18,919 Investments 74 9,625 5,707 3,374 -3,468 15,312 Investments related to unit-linked contracts 1,262 1,262 Reinsurers' share of insurance liabilities 553 5 558 Intangible assets 66 595 157 26 843 Property, plant and equipment 82 29 5 19 135 Other assets 342 1,104 92 108 -67 1,580 Tax assets 18 127 7 20 1 173 Total assets 23,194 12,484 7,493 3,611 -3,797 42,985 Liabilities Financial liabilities at fair value through p/l 464 149 36 649 Amounts owed to credit institutions and customers 12,336 106 -182 12,260 Debt securities in issue 8,461 443 100 1,036 -393 9,647 Liabilities for insurance and investment contracts 7,885 4,738 12,623 Liabilities for unit-linked insurance and investment contracts 1,262 1,262 Other liabilities 892 654 70 101 -67 1,650 Tax liabilities 21 339 180 5 545 Total liabilities 22,175 9,470 6,386 1,248 -642 38,637 Equity Share capital 96 Reserves 1,814 Retained earnings 2,412 Equity attributable to parent company's equityholders 4,322 Minority interests 26 Total equity 4,348 Total equity and liabilities 42,985 CONSOLIDATED BALANCE SHEET BY SEGMENT AT 30 SEPTEMBER 2005 Banking and P&C Life EURm investment insurance insurance Other Elimina-tion Group Assets Cash and balances at central banks 810 737 92 -160 1,479 Financial assets at fair value through p/l 2,485 365 51 12 -27 2,886 Loans and receivables 18,882 46 -30 18,898 Investments 107 9,836 5,721 3,529 -3,674 15,519 Investments related to unit-linked contracts 1,155 1,155 Reinsurers' share of insurance liabilities 605 18 622 Intangible assets 73 601 156 19 849 Property, plant and equipment 84 29 6 21 140 Other assets 369 2,079 488 65 -30 2,972 Tax assets 21 133 3 22 178 Assets classified as held for sale 70 18 89 Total assets 22,902 14,385 7,707 3,714 -3,920 44,788 Liabilities Financial liabilities at fair value through p/l 554 341 30 0 925 Amounts owed to credit institutions and customers 11,639 106 -188 11,558 Debt securities in issue 8,711 443 100 1,120 -389 9,986 Liabilities for insurance and investment contracts 8,080 4,678 12,758 Liabilities for unit-linked insurance and investment contracts 1,151 1,151 Other liabilities 869 2,304 418 87 -29 3,649 Tax liabilities 44 319 204 5 573 Liabilities classified as held for sale 1 17 18 Total liabilities 21,819 11,487 6,598 1,319 -606 40,617 Equity Share capital 96 Reserves 1,842 Retained earnings 2,208 Equity attributable to parent company's equityholders 4,145 Minority interests 26 Total equity 4,171 Total equity and liabilities 44,788 OTHER NOTES 1 NET INTEREST INCOME Banking and investment services 1-9/2006 1-9/2005 1-12/2005 Interest income Loans and receivables 636 484 665 Other interest income 4 0 4 Total 640 484 669 Interest expenses Amounts owed to credit institutions and customers -155 -106 -145 Debt securities in issue -209 -126 -179 Other interest expenses 0 2 0 Total -364 -230 -323 Banking and investment services, total 276 255 346 Other business Other business, total -33 -29 -39 Elimination items between segments 9 3 8 Group, total 252 229 315 Net interest income from banking and investment services, total In net interest income 276 255 346 In net income from financial transactions 49 42 55 In net income from investments 2 0 -2 Total 328 296 398 Interest income and expenses from P&C insurance and life insurance business are presented in Net income from investments. 2 NET INCOME FROM FINANCIAL TRANSACTIONS Banking and investment services 1-9/2006 1-9/2005 1-12/2005 Trading assets/liabilities Debt securities and interest rate derivatives 40 16 29 Equity securities and equity derivatives 2 2 2 Other 0 0 1 Financial assets designated as at fair value through p/l Debt securities 7 21 19 Foreign exchange dealing 12 11 14 Net income from hedge accounting Change in fair value of hedging derivative instruments -28 -24 -20 Change in fair value of hedged items 28 23 19 Total 1 -1 -1 Banking and investment services, total 62 50 65 Other business Other business, total 0 0 0 Elimination items between segments -8 4 6 Group, total 54 54 71 3 FEE AND COMMISSION INCOME AND EXPENSES Banking and investment services 1-9/2006 1-9/2005 1-12/2005 Fee and commission income Lending 31 33 39 Borrowing 15 14 20 Payment transactions 43 41 56 Asset management 97 72 101 Guarantees 12 9 13 Investment banking 22 19 25 Other 28 22 30 Total 248 210 283 Fee and commission expenses -59 -45 -63 Banking and investment services, total 189 166 221 Other business Other business, total -1 -1 -1 Elimination items between segments -13 -12 -17 Group, total 175 153 203 4 IMPAIRMENT LOSSES ON LOANS AND RECEIVABLES Banking and investment services 1-9/2006 1-9/2005 1-12/2005 Loans and receivables Impairment losses -30 -19 -36 Reversal of impairment losses and recoveries of loan receivables previously written off 29 26 39 Total -1 7 3 Banking and investment services, total -1 7 3 Other business Other business, total 2 -2 -2 Group, total 0 6 1 5 INSURANCE PREMIUMS P&C insurance 1-9/2006 1-9/2005 1-12/2005 Premiums from insurance contracts Premiums written, direct insurance 3,157 3,097 3,886 Premiums written, assumed reinsurance 71 68 76 Premiums written, gross 3,228 3,165 3,962 Ceded reinsurance premiums written -218 -208 -244 Premiums written, net 3,009 2,957 3,717 Change in unearned premium provision -235 -232 -23 Reinsurers' share 38 40 15 Insurance premiums earned, net 2,813 2,765 3,709 Life insurance Premiums from insurance contracts Premiums from contracts with discretionary participation feature 138 255 377 Premiums from unit-linked contracts 252 184 284 Premiums from other contracts 3 1 3 Insurance contracts, total 394 440 664 Assumed reinsurance 3 3 -13 Premiums from investment contracts Premiums from contracts with discretionary participation feature 3 1 1 Premiums from unit-linked contracts 29 4 4 Investment contracts, total 32 4 4 Reinsurers' share -7 -15 -5 Premiums written, total 422 433 649 Single and regular premiums from direct insurance Regular premiums, insurance contracts 231 215 370 Single premiums, insurance contracts 163 224 293 Single premiums, investment contracts 32 4 4 Total 426 444 668 Group, total 3,234 3,198 4,358 6 NET INCOME FROM INVESTMENTS Banking and investment services 1-9/2006 1-9/2005 1-12/2005 Financial assets Investment securities held-to-maturity 1 1 1 Financial asset available-for-sale Debt securities 2 -1 4 Equity securities 40 22 25 Total 41 21 29 Other assets 11 14 15 Banking and investment services, total 54 36 46 P&C insurance 1-9/2006 1-9/2005 1-12/2005 Financial assets Trading assets and derivative financial instrument 6 8 -7 Financial assets designated as at fair value through p/l Debt securities 157 298 258 Equity securities 124 148 280 Total 281 446 538 Loand and receivables 8 11 16 Financial liabilities Debt securities in issue Interest expenses on subordinated debt securities -20 -17 -23 Other financial expenses -7 -7 -10 Other assets 1 6 7 Effect of discounting annuities -40 -39 -52 Fee and commission expenses -3 -7 -9 P&C insurance, total 226 401 460 Life insurance 1-9/2006 1-9/2005 1-12/2005 Financial assets Trading assets and derivative financial instrument 13 -47 -56 Financial assets designated as at fair value through p/l Debt securities 3 4 4 Equity securities 0 0 1 Total 3 4 5 Investments related to unit-linked contracts Equity securities 49 128 155 Investment securities held-to-maturity Debt securities 0 3 3 Loans and receivables 2 4 4 Financial asset available-for-sale Debt securities 67 168 201 Equity securities 261 165 250 Total 328 333 450 Financial liabilities Debt securities in issue Interest expenses from subordinated debt securities -5 -4 -6 Other -2 -3 -3 Other assets 12 23 30 Fee and commission income, net 7 1 3 Life insurance, total 407 442 586 Other business 1-9/2006 1-9/2005 1-12/2005 Financial assets Financial assets available-for-sale 12 9 11 Other assets 2 3 4 Other business, total 14 12 15 Elimination items between segments -4 -10 -23 Group, total 697 881 1,084 7 STAFF COSTS Banking and investment services 1-9/2006 1-9/2005 1-12/2005 Staff costs Wages and salaries -117 -113 -160 Pension costs -19 -16 -23 Other social security costs -14 -13 -18 Banking and investment services, total -149 -143 -200 P&C insurance 1-9/2006 1-9/2005 1-12/2005 Staff costs Wages and salaries -223 -223 -303 Pension costs -47 -50 -76 Other social security costs -41 -48 -68 P&C insurance, total -310 -321 -447 Life insurance 1-9/2006 1-9/2005 1-12/2005 Staff costs Wages and salaries -12 -12 -17 Pension costs -2 -2 -2 Other social security costs -1 -1 -1 Life insurance, total -15 -15 -20 Other business 1-9/2006 1-9/2005 1-12/2005 Staff costs Wages and salaries -24 -25 -36 Pension costs -4 -3 -5 Other social security costs -1 -2 -2 Other business, total -29 -31 -44 Elimination items between segments 4 4 5 Group, total -500 -504 -706 8 FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH P/L 9/2006 9/2006 12/2005 12/2005 9/2005 9/2005 Assets Lia-bilities Assets Lia-bilities Assets Lia-bilities Banking and investment services Assets/liabilities held for trading 1,340 - 1,262 - 1,311 - Derivative financial instruments (note 9) 472 470 506 464 528 554 Financial assets designated as at fair value through p/l 632 - 641 - 646 - Banking and investment services, total 2,444 470 2,409 464 2,485 554 P&C insurance Derivative financial instruments (note 9) 136 120 87 149 365 341 Life insurance Derivative financial instruments (note 9) 18 14 46 36 51 30 Other business Assets/liabilities held for trading - - 1 - 1 - Derivative financial instruments (note 9) 0 9 2 - 11 0 Other business, total 0 9 3 - 12 0 Elimination items between segments -25 -36 -8 - -27 - Group, total 2,574 577 2,537 649 2,886 925 9 DERIVATIVE FINANCIAL INSTRUMENTS Banking and investment services 9/2006 12/2005 Fair Fair value Fair value value Fair value Contract/ Contract/ Derivatives held notional notional for trading amount Assets Liabilities amount Assets Liabilities Interest rate derivatives 59,973 132 151 40,131 174 190 Foreign exchange derivatives 5,601 49 40 8,484 98 115 Equity derivatives 25 5 7 8 3 3 Other derivatives 974 90 89 382 21 20 Total derivative assets/ liabilities held for trading 66,573 276 287 49,004 295 327 Derivatives held for hedging Derivatives designated as fair value hedges 5,343 197 183 3,984 210 136 Derivatives designated as cash flow hedges 10 0 - 170 1 - Total derivative assets/ liabilities held for hedging 5,352 197 183 4,154 211 136 Total derivative assets/ liabilities 71,925 472 470 53,157 506 464 9/2005 Fair value Fair value Contract/ Derivatives held notional for trading amount Assets Liabilities Interest rate derivatives 57,303 204 231 Foreign exchange derivatives 7,925 96 119 Equity derivatives 7 2 2 Other derivatives 283 19 19 Total derivative assets/ liabilities held for trading 65,518 321 371 Derivatives held for hedging Derivatives designated as fair value hedges 3,567 204 183 Derivatives designated as cash flow hedges 186 2 Total derivative assets/ liabilities held for hedging 3,753 207 183 Total derivative assets/ liabilities 69,271 528 554 P&C insurance 9/2006 12/2005 Fair Fair value Fair value value Fair value Contract/ Contract/ notional notional amount Assets Liabilities amount Assets Liabilities Derivatives held for trading Interest rate derivatives 1,503 2 2 0 0 5 Foreign exchange derivatives 3,927 121 116 4,562 80 144 Equity derivatives 9 14 2 4 6 - Total derivative assets/ liabilities held for trading 5,440 136 120 4,566 87 149 9/2005 Fair value Fair value Contract/ notional amount Assets Liabilities Derivatives held for trading Interest rate derivatives 0 5 1 Foreign exchange derivatives 4,869 349 340 Equity derivatives 3 12 1 Total derivative assets/ liabilities held for trading 4,872 365 341 Life insurance 9/2006 12/2005 Fair Fair value Fair value value Fair value Contract/ Contract/ notional notional amount Assets Liabilities amount Assets Liabilities Derivatives held for trading Interest rate derivatives 3,763 11 9 3,986 36 25 Foreign exchange derivatives 966 4 4 1,057 7 8 Equity derivatives 24 3 0 20 2 3 Commodity derivatives 0 0 0 31 1 0 Total derivative assets/ liabilities 4,753 18 14 5,094 46 36 9/2005 Fair value Fair value Contract/ notional amount Assets Liabilities Derivatives held for trading Interest rate derivatives 3,868 41 22 Foreign exchange derivatives 833 7 7 Equity derivatives 40 2 0 Commodity derivatives 35 1 0 Total derivative assets/ liabilities 4,776 51 30 Other business 9/2006 12/2005 Fair Fair value Fair value value Fair value Contract/ Contract/ notional notional amount Assets Liabilities amount Assets Liabilities Derivatives held for hedging Derivatives designated as fair value hedges 628 0 9 633 2 - Total derivative assets/ liabilities 628 0 9 633 2 - 9/2005 Fair value Fair value Contract/ notional amount Assets Liabilities Derivatives held for hedging Derivatives designated as fair value hedges 637 11 0 Total derivative assets/ liabilities 637 11 0 10 LOANS AND RECEIVABLES Banking and investment services 9/2006 12/2005 9/2005 Loans and advances to credit institutions Deposits 355 119 898 Reverse repos 18 - - Other loans 264 310 234 Total 636 428 1,132 Loans and advances to customers By type of loan Home loans 9,307 8,158 7,600 Consumer loans 1,214 1,103 1,057 Other consumer loans 1,334 1,111 979 Finance lease assets 891 766 744 Money market loans 15 15 15 Other commercial loans 7,889 7,349 7,371 Allowances for impairment -18 -18 -16 Total 20,632 18,484 17,750 Banking and investment services, total 21,268 18,913 18,882 Other business Other business loans and receivables, total 431 62 46 Elimination items between segments -428 -55 -30 Group, total 21,270 18,919 18,898 11 INVESTMENTS 9/2006 12/2005 9/2005 Banking and investment services Investments held-to-maturity Debt securities 44 46 47 Financial assets available-for-sale Debt securities 370 - 27 Equity securities 5 14 16 Total 376 14 43 Investment property Carrying amount - 1 1 Fair value - 1 1 Investments in associates 11 14 16 Banking and investment services, total 430 74 107 P&C insurance Financial assets designated as at fair value through p/l Debt securities 9,027 8,509 8,581 Equity securities 975 1,026 1,163 Total 10,002 9,535 9,744 Loans and receivables Deposits with ceding undertakings 2 3 3 Investment property Carrying amount 42 83 86 Fair value 43 83 86 Investments in associates 4 4 4 P&C insurance, total 10,050 9,625 9,836 Life insurance Financial assets designated as at fair value through p/l Debt securities 69 49 48 Equity securities 5 5 5 Total 74 53 52 Investments held-to-maturity Debt securities 16 16 16 Loans and receivables Deposits 3 3 3 Deposits with ceding undertakings 2 2 17 Total 6 5 20 Financial assets available-for-sale Debt securities 3,400 3,230 3,016 Equity securities 1,991 2,270 2,444 Total 5,391 5,501 5,460 Investment property Carrying amount 112 130 166 Fair value 126 146 183 Investments in associates 1 1 7 Life insurance, total 5,598 5,707 5,721 Other business Financial assets available-for-sale Debt securities 131 132 100 Equity securities 75 51 53 Total 206 183 153 Investment property Carrying amount 19 21 43 Fair value 20 21 43 Investments in associates 0 21 21 Investments in subsidiaries 3,156 3,149 3,312 Other business, total 3,381 3,374 3,529 Elimination items between segments -3,703 -3,468 -3,674 Group, total 15,756 15,312 15,519 12 INVESTMENTS RELATED TO UNIT-LINKED INSURANCE Life insurance 9/2006 12/2005 9/2005 Financial assets as at fair value through p/l Debt securities 15 12 6 Equity securities 1,533 1,251 1,149 Financial assets as at fair value through p/l total 1,548 1,262 1,155 Other 0 0 0 Life insurance, total 1,548 1,262 1,155 13 INTANGIBLE ASSETS Banking and investment services 9/2006 12/2005 9/2005 Goodwill 5 5 5 Licences 5 Other intangible assets 62 61 67 Total 72 66 73 P&C insurance 9/2006 12/2005 9/2005 Goodwill 541 533 537 Customer relations 32 38 40 Other intangible assets 13 23 24 Total 586 595 601 Life insurance 9/2006 12/2005 9/2005 Goodwill 153 153 153 Other intangible assets 5 4 3 Total 158 157 156 Other business 9/2006 12/2005 9/2005 Other intangible assets 20 26 19 Group, total 836 843 849 14 AMOUNTS OWED TO CREDIT INSTITUTIONS AND CUSTOMERS Banking and investment services 9/2006 12/2005 9/2005 Amounts owed to credit institutions Deposits from credit insitutions 423 664 468 Repo-sales 31 - - Other liabilities owed to credit institutions 366 202 529 Total 821 867 997 Amounts owed to customers Deposits Demand deposits 2,715 2,856 2,619 Savings accounts 1,461 1,075 1,013 Current accounts 4,610 3,716 3,936 Money market deposits 821 1,122 783 Other time deposits 2,639 2,673 2,262 Total deposits 12,247 11,442 10,612 Other liabilities Other liabilities 35 28 30 Total amounts owed to customers 12,282 11,470 10,642 Banking and investment services, total 13,103 12,336 11,639 Other business 9/2006 12/2005 9/2005 Amounts owed to credit institutions Other liabilities 6 6 7 Amounts owed to customers Other liabilities 85 99 100 Other business, total 92 106 106 Elimination items between segments -537 -182 -188 Group, total 12,657 12,260 11,558 15 DEBT SECURITIES IN ISSUE Banking and investment services 9/2006 12/2005 9/2005 Debt securities in issue Certificates of deposit 3,202 3,384 3,912 Bonds and notes 6,463 4,238 4,078 Total 9,665 7,621 7,991 Subordinated debt securities Capital securities 346 352 233 Debentures 598 399 401 Perpetuals 83 89 87 Total 1,027 840 721 Banking and investment services, total 10,692 8,461 8,711 P&C insurance 9/2006 12/2005 9/2005 Subordinated debt securities Capital securities 442 443 443 P&C insurance, total 442 443 443 Life insurance 9/2006 12/2005 9/2005 Subordinated debt securities Capital securities 100 100 100 Life insurance, total 100 100 100 Other business 9/2006 12/2005 9/2005 Debt securities in issue Commercial paper 82 149 215 Bonds and notes 211 290 299 Total 294 438 514 Subordinated debt securities Debentures 589 597 605 Other business, total 882 1,036 1,120 Elimination items between segments -528 -393 -389 Group, total 11,588 9,647 9,986 16 LIABILITIES FOR INSURANCE AND INVESTMENT CONTRACTS P&C insurance Liabilities from insurance contracts 9/2006 12/2005 9/2005 Insurance contracts Provision for unearned premiums 1,848 1,628 1,860 Provision for claims outstanding 6,508 6,257 6,219 Total 8,356 7,885 8,080 Reinsurers' share Provision for unearned premiums 86 49 80 Provision for claims outstanding 476 504 525 Total 562 553 605 Life insurance *) 9/2006 12/2005 9/2005 Insurance contracts Liabilities for contracts with DPF Provision for unearned premiums 2,973 3,108 3,022 Provision for claims outstanding 1,555 1,463 1,458 Total 4,529 4,571 4,480 Liabilities for contracts without DPF Provision for unearned premiums 16 15 16 Provision for claims outstanding 3 3 15 Total 20 18 31 Total 4,548 4,589 4,511 Assumed reinsurance Provision for unearned premiums 5 3 20 Provision for claims outstanding 3 2 3 Total 7 6 23 Insurance contracts, total Provision for unearned premiums 2,994 3,127 3,058 Provision for claims outstanding 1,561 1,468 1,475 4,555 4,595 4,533 Investment contracts Liabilities for contracts with DPF Provision for unearned premiums 140 144 144 Investment contracts, total 140 144 144 Liabilities for insurance and investment contracts, total Provision for unearned premiums 3,135 3,270 3,203 Provision for claims outstanding 1,561 1,468 1,475 Life insurance, total 4,696 4,738 4,678 Reinsurers' share Provision for unearned premiums 0 0 8 Provision for claims outstanding 5 5 10 Total 5 5 18 Group, total 13,051 12,623 12,758 *) Investment contracts do not include a provision for claims outstanding. Liability adequacy test does not give rise to supplementary claims. Exemption allowed in IFRS 4 Insurance Contracts has been applied to investment contracts with DPF or contracts with a right to trade-off for an investment contract with DPF. These investment contracts have been valued like insurance contracts. 17 LIABILITIES FOR UNIT-LINKED INSURANCE AND INVESTMENT CONTRACTS Life insurance 9/2006 12/2005 9/2005 Unit-linked insurance contracts 1,497 1,246 1,135 Unit-linked investment contracts 45 16 16 Total 1,542 1,262 1,151 18 CONTINGENT LIABILITIES AND COMMITMENTS Banking and investment services 9/2006 12/2005 9/2005 Off-balance sheet items Guarantees 2,744 2,811 2,718 Undrawn loans, overdraft facilities and other commitments to lend 3,911 4,062 4,594 - - original maturity less than one year 594 642 943 - - original maturity more than one year 3,316 3,420 3,650 Other irrevocable commitments 2 4 10 Total 6,656 6,878 7,322 Assets pledged as collateral for liabilities and contingent liabilities 9/2006 9/2006 12/2005 12/2005 9/2005 9/2005 Liabilities/ Liabilities/ Liabilities/ Assets pledged Assets commit- Assets commit- Assets commit- as collateral pledged ments pledged ments pledged ments Financial assets at fair value through p/l - - Trading securities 1,648 1,207 1,593 1,038 1,440 1,012 Loans and receivables - - Security deposits 1,930 2,771 1,180 1,751 1,214 1,777 Total 3,578 3,979 2,773 2,789 2,654 2,790 Non-cancellable operating leases 9/2006 12/2005 9/2005 Minimum lease payments under non-cancellable operating leases not later than one year 21 21 20 later than one year and not later than five years 51 53 50 later than five years 38 43 45 Total 109 118 116 P&C insurance 9/2006 12/2005 9/2005 Off-balance sheet items Guarantees 47 62 26 Other irrevocable commitments 21 31 31 Total 68 93 57 Other Assets covered by policyholders' beneficiary rights 318 303 287 Assets pledged as collateral for liabilities and contingent liabilities 9/2006 9/2006 12/2005 12/2005 9/2005 9/2005 Liabilities/ Liabilities/ Liabilities/ Assets pledged Assets commit- Assets commit- Assets commit- as collateral pledged ments pledged ments pledged ments Cash at balances at central banks 32 12 42 0 39 11 Investments - - Investment securities 328 111 267 129 215 98 Total 360 123 309 130 254 109 Non-cancellable operating leases 9/2006 12/2005 9/2005 Minimum lease payments under non-cancellable operating leases not later than one year 32 26 26 later than one year and not later than five years 90 72 67 later than five years 76 39 16 Total 198 137 108 Life insurance 9/2006 12/2005 9/2005 Off-balance sheet items Fund commitments 201 184 154 Assets pledged as collateral for liabilities and contingent liabilities 9/2006 9/2006 12/2005 12/2005 9/2005 9/2005 Liabilities/ Liabilities/ Liabilities/ Assets pledged Assets commit- Assets commit- Assets commit- as collateral pledged ments pledged ments pledged ments Investments - - Investment securities 1 0 4 0 5 0 Non-cancellable operating leases 9/2006 12/2005 9/2005 Minimum lease payments under non-cancellable operating leases not later than one year 2 2 - later than one year and not later than five years 6 6 - later than five years 7 7 - Total 15 15 - 19 MUTUAL FUND CAPITAL 9/2006 12/2005 9/2005 Equity funds 3,940 3,637 3,281 Balanced funds 1,226 1,020 942 Money market funds 2,943 2,316 2,679 Bond funds 1,584 1,407 1,244 Absolute return funds 574 472 598 Risk funds 123 32 29 Total 10,390 8,885 8,773 20 ANALYSIS OF RESULT FOR P&C INSURANCE 1-9/ 1-9/ 1-12/ 2006 2005 2005 Profit and loss account Premiums earned 2,813 2,765 3,709 Claims incurred -2,060 -2,037 -2,697 Operating expenses -468 -495 -661 Other technical income and expenses (+collective guarantee item) 0 - -2 Allocated investment return transferred from the non-technical account 130 130 166 Technical result 414 363 516 Investment result 266 439 510 Allocated investment return transferred to the technical account -170 -169 -217 Other income and expenses -6 -7 -9 Operating result 503 626 800 21 SAMPO PLC'S INCOME STATEMENT AND BALANCE SHEET, FAS INCOME STATEMENT 1-9/ 1-9/ 1-12/ 2006 2005 Change 2005 Net interest income -27 -26 -2 -34 Divident income 933 515 418 540 Fee income and expenses, net -1 -1 0 -1 Net income from transaction of securities and foreign exchange dealing 1 0 1 0 Net investment income 2 1 1 -2 Other operating income 49 6 44 12 Administrative expenses -21 -17 -4 -26 Depreciation and impairment on property, plant and equipment and intangible assets -6 -5 0 -7 Other operating expenses -9 -15 6 -22 Operating profit 921 459 463 460 Income taxes 1 11 -10 14 Profit for the period 923 470 453 474 BALANCE SHEET 9/2006 12/2005 9/2005 ASSETS Loans and advances to credit institutions 419 47 11 Loans and advances to customers - - 7 Debt securities 131 132 100 Shares and participations 75 51 53 Shares and participations in associates 1 18 18 Shares and participations in Group companies 3,157 3,157 3,269 Derivatives 0 2 11 Intangible assets 20 26 11 Property, plant and equipment 19 Properties and shares in property companies 28 31 72 Other 4 5 5 Other assets 86 74 40 Prepayments and accrued income 15 24 13 Tax assets 20 20 19 TOTAL ASSETS 3,956 3,586 3,637 LIABILITIES Liabilities Liabilities to customers 85 99 100 Debt securities in issue 294 438 514 Derivatives 9 - 0 Other liabilities 44 49 39 Accruals and deferred income 36 43 36 Subordinated liabilities 589 597 605 Tax liabilities 5 5 5 Total liabilities 1,062 1,233 1,300 Equity Share capital 95 96 96 Share premius account 1,052 1,048 1,036 Other undistributable reserves 366 366 366 Fair value reserve -5 -9 -10 Other reserves 273 273 273 Retained earnings 254 194 194 Treasury shares -64 -88 -88 Profit for the year 923 474 470 Total equity 2,894 2,354 2,337 TOTAL LIABILITIES 3,956 3,586 3,637 Off-balance sheet items Commitments Other than sale and option to resell transactions 9 12 13 - ---END OF MESSAGE--- Copyright © Hugin ASA 2006. All rights reserved.
1 Year Citi Fun 26 Chart |
1 Month Citi Fun 26 Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions