UBS N di Fi i l S i C fNordic Financial Services Conference19 September 2012p

CFO Peter Johansson, Sampo Group

2

S  G   l• Sampo Group results• If P&C and non‐life insurance marketsM d Lif d lif i k•Mandatum Life and life insurance markets

• NordeaS di id d k• Sampo as a dividend stock

3

Profit before taxes and comprehensive income 

1,000EURm

Sampo Group´s average ROE2005‐2012/H1: 21.9%

Sampo plc excl. NordeaEURm 2011/H1 2012/H1Expenses ‐15 ‐16Net financing costs ‐27 ‐13

42 29

756 804 863800

Profit before taxes Comprehensive income 

‐42 ‐29

Net debt in Sampo plc, 30 June 2012EURm

CurrentRate

2 42

7

451400

600 Gross debt 2,300Issued senior bonds and notes 1,697Domestic CP’s issued 603­ Interest bearing assets ­585

Rate~2.73%

42 44

84

65

294 326

23

4

105 284 341 378

200

‐8

Interest bearing assets 585Liquidity (cash and money market) ‐368Subordinated loans (subsidiaries) ‐217

Net debt 1 715

12

08 Net debt 1,715

If &PC Mandatum Nordea SampoLife Group

4

Fair value reserve by segment and asset class, 30 June 201230 June 2012

EURm Fixed income Equity

Derivat. held for  Deferred 

taxes FVR netincome q ytrading taxes

P&C insurance 156.4 144.6 ‐ ‐77.9 223.1

Life insurance 112.5 242.1 0.9 ‐87.1 268.4

Holding 1.7 0.5 ‐ ‐0.5 1.7

Sampo Group*) 266.1 387.2 0.9 ‐165.5 488.7

*) Eliminations included and figures after taxA t ll ti EURb 14 0 2 6 *) Eliminations included and figures after taxAsset allocation, EURbn 14.0 2.6Sensitivity, EURm•Equities ‐10% ‐264

+10% 264I t t 100 b 167• Interest ‐100 bps 167rates +100 bps ‐185

5

S G l• Sampo Group results• If P&C and non­life insurance marketsM d Lif d lif i k•Mandatum Life and life insurance markets

• NordeaS di id d k• Sampo as a dividend stock

6

P&C insurance profit before taxes and comprehensive incomeand comprehensive income

707800EURm

Profit before taxes

Average ROE 2005‐Q2/2012 25.5%

644707

636641

600

Comprehensive income (after tax)

422 442425

308

451

400308

123200

123

02009 2010 2011 1‐6/2011 1‐6/2012

FVR, EURm 142 427 189 221 301(before tax)

7

P&C insurance combined ratio developmentH1 CR %

92.6 90.5 89.9 90.6 91.8 92.1 92.8 92.0 92.7 89.4100

%Long‐term CoR target  < 95%

H1 CR‐%2005‐2012/H1Low 89.4Average 92.2Hi h 94 1

25.6 24.3 24.0 23.7 23.7 24.1 23.7 23.5 23.4 23.4

60

80< 95%

• Underwriting excellence andcontinuous efficiency improvement

High 94.1

67.0 66.2 65.9 66.9 68.1 68.0 69.1 68.4 69.4 66.040

• Scale and diversification benefits

Standard deviation

0

20 2.5%

5 4%

5.3%

Ri k ti C t ti

5.4%

5.4%

5.8%

Risk ratio Cost ratio

8

Nordic P&C insurance companies H1 2011/2012Combined ratio %

26100

120Combined ratio,%

92.586 189.4 89.3

96.887.6 85 5

117.1

98

MUTUALS

75.7 72.4 74.3 74.3 69 2 69 8 68 9 71 4 75.4 70 570.1 69.4 81 76

81.272.4

101.6 92.2

2.64.6 1.5 6.4

60

8086.185.5

17 17 16 8 16 8 16 16 2 16 3 16 2 16 915.6 21 5 23.1 21 22 26 24.5 24 24.9

69.2 69.8 68.9 71.4 70.5

20

40

17 17 16.8 16.8 16 16.2 16.3 16.2 16.9 21.5 23.1 21 22

‐1.8 ‐2.1

‐20

0

Expense ratio Claims ratio Ceded business

Source: Company reports

9

P&C insurance H1/2012 ‐ Combined ratio,%140 Ceded business Claims ratio Expense ratio

FinlandCeded business Claims ratio Expense ratio

Sweden

92 280100120140 p

89.4 92.5 96.8 97.4

117.1

80

100

120p

95.2 100.298

17 23.1 24.5 24.9 25.1

72.4 69.4 72.492.2

73.3

0204060 78.9 76 79.6

20

40

60

‐200

If Pohjola Tapiola Fennia Tryg

16.3 22 19.70

If LF Tryg

C d d b i Cl i ti E tiDenmark

Ceded business Claims ratio Expense ratioNorway

906080100120

Ceded business Claims ratio Expense ratio110.6

86.6 92.387.6

64 3 70 572

66 72 760

80

100Ceded business Claims ratio Expense ratio

81.1 86.1 88.193.2 84.0

20.6 16.2 15 16.2

9069.8 71.6 71.4

0204060

16.8 15.6 21.2 18 16.7

64.3 70.5 66 72.7

0

20

40

‐20 If Topdanmark Tryg Alm.Brand ‐20If Gjensidige Sparebank1 Storebrand Tryg

Source: Company reportsIf´s Topdanmark holding 24.6%(of voting shares)

10

Europe’s largest non‐life insurance groupsin 2011 Non­life businessNon­lifein 2011

71.9

62 9

26.9

35 4

0 20 40 60 80 100

ZürichErgo

Non life business % of  total premiums

7267

Non­lifeGWP, EURbn

24.712 4

CR,%

98.8

98 362.9

70.9

69.9

67.8

35.4

27

27.9

29.6

ErgoAXA

AllianzGroupama

67

376565

12.4

30.044.811.1

98.3

97.9

97.8

97.4

69.2

64.4

69

27.7

32.4

27.6

pMapfreAviva

Generali

7433

33

14.511.2

22.8

96.9

96.8

96.5

68.3

66.3

68.1

27.8

28.6

29.1

AchmeaRSA

Average excl.IF

83100

16.210.5

96.1

94.9

97.4

74.7 17.3If P&C

Claims ratio,% Expense ratio,%

1004.492.0

Source: FundaciónMapfre June 2012

11

If NAV and cumulative dividend

3,4143 500

4,000EURm • NAV contribution from Q4/2004 to Q2/2012 EURbn 4.1  

• Payout ratio 84%

2 2642,595

2,5452,470

2,941

2,468

3,008

2,500

3,000

3,500

2,2642,135

1,960

1,577

2,199

1,280

1,7991,980

1,500

2,000

2,500

645 635 712

249

1,280

500

1,000

,

02001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q2 

2012S

NAV Cumulative dividend* from 2004 IFRS

Sampoownership % 38% 100%

12

S G l• Sampo Group results• If P&C and non‐life insurance marketsM d  Lif   d lif  i k•Mandatum Life and life insurance markets

• NordeaS di id d k• Sampo as a dividend stock

13

Life insuranceprofit before taxes and comprehensive incomeprofit before taxes and comprehensive income 

495500EURm Profit before taxes

Comprehensive incomeAverage ROE 2005‐Q2/2012 19.3%

332300

400

p

121 142 13784 105

200

300

84 65

‐80

100

‐115

8

‐200

‐100

2009 2010 2011 1‐6/2011 1‐6/2012

FVR 272 586 282 489 354(before tax)

14

Life insurance companies in Finland600

Premiums written H1/11 90P fi b f H1/11484 482

389

300

400

500Premiums written H1/11

Premiums written H1/12

m 2

65

50607080

Profit before taxes H1/11

Profit before taxes H1/12

m

50

164

51100

200

300

EURm 52

20

7.4

40

121020304050

EURm

420

473

473

59 158

45

50 51

0ML Nordea OP Life Aktia Tapiola Fennia

84 4.9

30 7

010

ML OP Life Aktia Tapiola Fennia

Mandatum Life’s market shares in Finland 

23.5 24.722.3

19.9202530

Solvency ratio H1/11 Solvency ratio H1/12Mandatum Life s market shares in Finland 

28 8

55.5

40

50

601.‐6.2011 1.‐6.2012

23.2

15.8

15.9

18.0

18.1

11.3

15.9 14.7

05101520

%

22.9

24.5

19.0

42.6

14.2

26.9 28.821.7

13.8

0

10

20

30%

0ML OP Life Aktia Tapiola Fennia Nordea

0

Source: Company reports

15

Mandatum Life NAV and cumulative dividend

1,225 1,225 1,2251,325

1 200

1,400EURm

• NAV contribution from Q4/2001 to Q2/2012 EURbn 2.0• Payout ratio 67%

964 952

836

1,079

865

971

825

1,0251,000

1,200

450

736 756

525

825

600

800

320397

450

204175

325425

200

400

250

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q2 20122012NAV Cumulative dividend

* from 2004 IFRS

16

Life insurance in Finland,investment returns, % Threats concerning with‐profit business: 

• Higher capital requirements under Solvency II, %

526 Annual average 2007‐H1/2012 H1/2012%

Higher capital requirements under Solvency II• Prolonged low interest rate environment

4.7 4.54.1 4.13.9

4.64.1 4.3

5.24.7

4

5

3.2

2

3.4

3

4

2 1.9

1

2

0Mandatum 

LifeKaleva Fennia Life Tapiola Life Aktia Nordea Life 

FinlandOP Life

Life Finland

17

Mandatum Life mark‐to‐market investment returnand 10Y gvmt bond yieldand 10Y gvmt bond yield

16.8

141618% With‐Profit business

‐Even under extreme volatility• High ( margin) 13.1 %‐points• Low (margin) 12 1 % points

12

9.711.1

8101214 • Low (margin) ‐12.1 %‐points

Average margin has been 3.09 %‐points

9.7

5.33.92

468

2.5% 3.0%3.5%

­1.4

3.3 3.8 4.3 4.3 3.7 3.0 3.0 2.1

4‐202

­7.8‐8‐6‐4

2005 2006 2007 2008 2009 2010 2011 H1/2012H2/2012 2013 20142005 2006 2007 2008 2009 2010 2011 H1/2012H2/2012 2013 2014

ML m‐t‐m investment return 10Y average bond yield Guaranteed rate,3.5%

18

Mandatum Life’s investments, 30 June 2012AFS investmentsInvestment allocation AFS investments

Unrealized gains before taxesInvestment allocationTotal EUR 5.4 billion

Other 750

EURm

Money Market9%

Private Equity

Real Estate3%

Other5%

0

417343

485

586560489 475

354

500

Private Equity5%

0 30 64 55 67 36 31 5 2 280

61142253

188 31

8 450

430

364

131 206

353

242

136 181

272343

201282

250

Bonds52%

Equities26%

‐44

‐67

‐33 ‐63 2012 13 16 15 16 13 13 12 70 76 12 1121

19‐242

‐291

‐126

‐48‐106

250

0

Bonds

Duration 1.8 years

52% ‐

‐274‐353

‐500

‐250

08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12

Bonds

Equities

yAverage maturity 2.2 yearsFixed income running yield 5.3%

6/0

9/0

12/0 3/0

6/0

9/0

12/0 3/1

6/1

9/1

12/1 3/1

6/1

9/1

12/1 3/1

6/1

19

If P&C investments, 30 June 2012AFS investmentsInvestment allocation AFS investments

unrealized gains before taxesInvestment allocationtotal EUR 11.6 billion

R l E t t 384427 402

500EURm

Money Market10 %

Equities10 %

Real Estate1 %

9

142

47185

327

258

113

88252

145

142

322

217

384329

221

95

189

402

301

250

‐137

‐216

‐257

330 ‐1

4969 70180

170

199

100

71 108

103

101 150

156

12

‐31

71

1‐8

8

37

0

‐3‐11

‐178

‐311

305

‐176

‐249

‐394‐325

‐500

‐250

EquitiesBonds

Duration 1 1 years

Bonds78 %

‐3

‐568‐635

‐750

500

08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12Duration 1.1 yearsAverage maturity 2.3 yearsFixed income running yield 3.8%

6/0

9/0

12/0 3/0

6/0

9/0

12/0 3/1

6/1

9/1

12/1 3/1

6/1

9/1

12/1 3/1

6/1

20

Nordic currencies and interest rates‐challenging interest rate environment for investments

Sampo Group´sSampo Group sNAV• EUR/SEK• EUR/NOK

Negative

Positive

‐> 7.9.2012

in othercomprehensiveincome

21

S G l• Sampo Group results• If P&C and non‐life insurance marketsM d Lif d lif i k•Mandatum Life and life insurance markets

• NordeaS di id d k• Sampo as a dividend stock

22

Nordea quarterly operating profit

1 200EURm

Nordea´s pre‐provisions volatilityis the lowest among Nordic banks

900

1,200 Operating profit Restructuring charge78 

71 

3  9  7  99 171

600

900

895  978 

932  1,07

885 

883 

847 

781  833 

818 

832 

592 

878 

730 

960  1,07

1,003

949 

566 

1,029

1,03 1,09

300

0

07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12

1Q0

2Q0

3Q0

4Q0

1Q0

2Q0

3Q0

4Q0

1Q0

2Q0

3Q0

4Q0

1Q1

2Q1

3Q1

4Q1

1Q1

2Q1

3Q1

4Q1

1Q1

2Q1

23

Nordea share price and book value

Nordea´s equity/shareQ4/2009: EUR 5.56

Nordea´s equity/shareQ2/2012: EUR 6.63

Sampo´s acquisition valueEUR 6.46/shareEURm 5,557

Sampo´s book valueEUR 7.40/shareEURm 6,370EURm 5,557  EURm 6,370 

24

S G l• Sampo Group results• If P&C and non‐life insurance marketsM d Lif d lif i k•Mandatum Life and life insurance markets

• NordeaS      di id d k• Sampo as a dividend stock

25

Sampo as a dividend stock2001‐2011 A di id d i ld 6 75%

Annual dividend yield, %Annual dividend yield, EUR 

• Average dividend yield 6.75%• Cumulative dividends EUR  9.95/share

EUR

1.20

1 00

1.15 1.201.2

1.4 6.66.0 6.0 5.7

6.36

7%

0.80

1.00

0.8

1

4

5

0.4

0.6

2

3

0

0.2

2007 2008 2009 2010 20110

1

2007 2008 2009 2010 2011

Calculated using the year‐end share price

26

Sampo and EuroSTOXX indicesTotal return since 2002

31.12.2001=100

Thank you forSampo

Thank you foryour attention!

EuroSTOXX Europe,   Banks/Insurance, 50/50

Source: Reuters EcoWin

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012