Sampo Group's results for January - September 2017
SAMPO PLC INTERIM STATEMENT 2 November 2017 at 9:30 am
SAMPO GROUP'S RESULTS FOR JANUARY - SEPTEMBER 2017
Sampo Group's January - September 2017 results were impacted by the change in accounting status of Topdanmark from an associated company to a subsidiary triggering a non-recurring profit of EUR 706 million. Excluding this item Sampo Group's profit before taxes was EUR 1,340 million, earnings per share amounted to EUR 2.09 and RoE to 13.8 per cent.
- Sampo Group's profit before taxes for January - September 2017, including the non-recurring item, amounted to EUR 2,046 million (1,343). The total comprehensive income for the period, taking changes in the market value of assets into account, rose to EUR 1,972 million (1,212). Earnings per share amounted to EUR 3.35 (2.11). Mark-to-market earnings per share were EUR 3.51 (2.16). The return on equity (RoE) for the Group was 21.4 per cent (14.1) for January - September 2017. Net asset value per share on 30 September 2017 amounted to EUR 26.84 (24.86).
- Profit before taxes for the If segment was EUR 603 million (624). Combined ratio for January-September 2017 was 85.9 per cent (84.0). This is the best January - September combined ratio that If has ever reported when adjusted for non-recurring items. Return on equity was 24.6 per cent (22.3).
- Sampo's share of Topdanmark's January - September 2017 profit was EUR 90 million (35). In addition, the difference between the carrying value and the fair value of Sampo's holding on 30 September 2017 of EUR 706 million, was recognized in profit and loss.
- Sampo's share of Nordea's net profit for January - September 2017 amounted to EUR 491 million (546). Nordea's RoE amounted to 10.1 per cent (11.7). Core Tier 1 ratio (excluding transition rules) was 19.2 per cent (18.4). In segment reporting the share of Nordea's profit is included in the segment 'Holding'.
- Profit before taxes for Mandatum Life increased to EUR 180 million (157). Return on equity amounted to 15.6 per cent (18.0).
| KEY FIGURES | 1-9/2017 | 1-9/2016 | Change,% | 7-9/2017 | 7-9/2016 | Change,% |
| EURm | ||||||
| Profit before taxes **) | 2,046 | 1,343 | 52 | 1,181 | 450 | 162 |
| If | 603 | 624 | -3 | 202 | 207 | -2 |
| Topdanmark | 796 | 35 | - | 744 | 17 | - |
| Associate (Nordea) | 491 | 546 | -10 | 169 | 182 | -7 |
| Mandatum | 180 | 157 | 15 | 64 | 53 | 20 |
| Holding (excl. Nordea) | -27 | -19 | -40 | 0 | -9 | - |
| Profit for the period | 1,875 | 1,179 | 59 | 1,122 | 396 | 183 |
| Change | Change | |||||
| Earnings per share, EUR **) | 3.35 | 2.11 | 1.24 | 2.01 | 0.71 | 1.30 |
| EPS (incl. change in FVR) EUR | 3.51 | 2.16 | 1.35 | 2.04 | 1.08 | 0.96 |
| NAV per share, EUR *) | 26.84 | 24.86 | 1.98 | - | - | - |
| Average number of staff (FTE) | 9,418 | 6,769 | 2,649 | - | - | - |
| Group solvency ratio, % *) | 156 | 154 | 2 | - | - | - |
| RoE, % **) | 21.4 | 14.1 | 7.3 | - | - | - |
*) comparison figure from 31 December 2016.
**) excluding the non-recurring profit incurring from the change of Topdanmark's accounting status from an associated company to a subsidiary, Sampo Group's profit before taxes was EUR 1,340 million, earnings per share amounted EUR 2.09 and to RoE 13.8 per cent. The profit before taxes for the third quarter of 2017 was EUR 475 million and earnings per share amounted EUR 0.74.
The figures in this report are not audited. Income statement items are compared on a year-on-year basis whereas comparison figures for balance sheet items are from 31 December 2016 unless otherwise stated.
Sampo follows the disclosure procedure enabled by the Finnish Financial Supervisory Authority and hereby publishes its Interim Statement attached as a PDF file to this stock exchange release. The Interim Statement is also available at www.sampo.com/result.
Exchange rates used in reporting
| 1-9/2017 | 1-6/2017 | 1-3/2017 | 1-12/2016 | 1-9/2016 | |
| EURSEK | |||||
| Income statement (average) | 9.5833 | 9.5968 | 9.5063 | 9.4698 | 9.3739 |
| Balance sheet (at end of period) | 9.6490 | 9.6398 | 9.5322 | 9.5525 | 9.6210 |
| DKKSEK | |||||
| Income statement (average) | 1.2885 | 1.2904 | 1.2785 | 1.2718 | 1.2586 |
| Balance sheet (at end of period) | 1.2965 | 1.2963 | 1.2816 | 1.2849 | 1.2912 |
| NOKSEK | |||||
| Income statement (average) | 1.0376 | 1.0456 | 1.0575 | 1.0192 | 0.9998 |
| Balance sheet (at end of period) | 1.0251 | 1.0072 | 1.0397 | 1.0513 | 1.0706 |
| EURDKK | |||||
| Income statement (average) | 7.4373 | ||||
| Balance sheet (at end of period) | 7.4423 |
THIRD QUARTER 2017 IN BRIEF
Excluding the non-recurring profit of EUR 706 million from the change in accounting treatment of Topdanmark, Sampo Group's profit before taxes for the third quarter of 2017 was EUR 475 million and earnings per share amounted EUR 0.74.
Sampo Group's profit before taxes for the third quarter 2017, including the non-recurring item, amounted to EUR 1,181 million (450). Earnings per share amounted to EUR 2.01 (0.71). Marked-to-market earnings per share increased to EUR 2.04 (1.08). Net asset value per share increased EUR 1.24 during the third quarter and was EUR 26.84.
Combined ratio for If for the third quarter was 84.8 per cent (84.6). Profit before taxes amounted to EUR 202 million (207).
Sampo's share of Topdanmark's July - September 2017 profit was EUR 37 million (17). In addition, the difference between the carrying value and the fair value of Sampo's holding on 30 September 2017 of EUR 706 million, was recognized in profit and loss.
Sampo's share of Nordea's third quarter 2017 net profit amounted to EUR 169 million (182).
Profit before taxes for Mandatum Life rose to EUR 64 million (53). Premiums written increased to EUR 207 million from EUR 177 million at the corresponding period a year ago.
In the third quarter of 2017 Sampo plc announced that it will invest EUR 265 million in Saxo Bank Group and EUR 230 million in Nets A/S both located in Denmark.
BUSINESS AREAS
If Group
Profit before taxes for January-September 2017 for the If Group amounted to EUR 603 million (624). These figures do not include Sampo Group's share of Topdanmark's profit.
Combined ratio amounted to 85.9 per cent (84.0) and risk ratio to 64.2 per cent (62.0). In the first quarter of 2017 the discount rate used to discount Finnish annuities was lowered by 0.3 percentage points to 1.2 per cent. This impacts the combined ratio for January - September 2017 negatively with 2.2 percentage points. The comparison year contains an extraordinary reserve release in Swedish motor insurance improving the combined ratio for the first nine months of 2016 by 2.3 percentage points.
Net releases from technical reserves relating to prior year claims were EUR 68 million (100) in January - September 2017. Return on equity increased to 24.6 per cent (22.3) and the fair value reserve at the end of September 2017 was EUR 590 million (484). Technical result amounted to EUR 463 million (514). Insurance margin (technical result in relation to net premiums earned) decreased to 14.5 per cent (16.1).
Large claims were EUR 48 million higher than expected in January - September 2017 and EUR 31 million higher than expected in the third quarter of 2017. In business area Commercial large claims were EUR 51 million worse than normalized and in business area Industrial large claims were EUR 3 million better than normalized. Sweden and Norway were impacted most. The lowering of the discount rate for annuities in Finland in the first quarter of 2017 impacted Finnish country specific result and also on all the business areas excluding Baltic negatively. The combined ratio for Finland for January - September 2017 increased 9.9 percentage points due to the change. The release from the Swedish MTPL reserves affected both the Swedish country specific result and the Private and Commercial business area results positively in the comparison period.
Swedish discount rate used to discount the annuity reserves decreased to -0.14 percent (-0.03) and had a negative impact of EUR 7 million on the January - September 2017 results.
Gross written premiums grew to EUR 3,621 million (3,565) in January-September 2017. Adjusted for currency, premium growth was 1.5 per cent. Growth was positive in all business areas and in all markets except Finland.
Cost ratio improved to 21.8 per cent (22.1) and expense ratio to 16.2 per cent (16.6).
At the end of September 2017, the total investment assets of If amounted to EUR 12.4 billion (12.2), of which fixed income investments constituted 80 per cent (79), money market 7 per cent (8) and equity 12 per cent (13). Net income from investments increased to EUR 170 million (123). Investment return marked-to-market for January-September 2017 amounted to 2.8 per cent (2.4). Duration for interest bearing assets was 1.4 years (1.4) and average maturity 2.7 years (2.8). Fixed income running yield without taking into account the FX hedging cost as at 30 September 2017 was 1.5 per cent (1.6).
Topdanmark
Sampo consolidates Topdanmark as a subsidiary as of 30 September 2017 in its financial reporting in accordance with IFRS (for further details see section Consolidation of Topdanmark).
Sampo's share of Topdanmark's profit for January-September 2017 amounted to EUR 90 million (35). In addition, the difference between the carrying value and the fair value of Sampo's holding on 30 September 2017 of EUR 706 million, is recognized in profit and loss.
Associated company Nordea Bank AB
On 30 September 2017 Sampo plc held 860,440,497 Nordea shares corresponding to a holding of 21.2 per cent. The average price paid per share amounted to EUR 6.46 and the book value in the Group accounts was EUR 8.71 per share. The closing price as at end of September 2017 was EUR 11.44.
The following text is based on Nordea's January-September interim report published on 26 October 2017.
Despite increasing geopolitical risks and imbalances in the economy, Nordea continues to see synchronised growth in its home markets. Margins remain stable, although Nordea has not seen the usual pick-up in demand for corporate advisory services after the summer. Costs developed according to plan and credit quality improved as expected.
Total income was up 1 percent in local currencies and up 1 per cent in EUR from the prior year and operating profit was down 1 per cent in both local currencies and EUR from the previous year excluding non-recurring items.
Net interest income was up 1 per cent in both local currencies and EUR from 2016. Average lending volumes in business areas in local currencies were down by 1 per cent compared to the first nine months of 2016 while deposits volumes were up by 2 per cent.
Net fee and commission income increased 7 per cent in both local currencies and in EUR from the previous year.
Net result from items at fair value decreased both in local currencies and in euros from 2016: 9 per cent in local currencies and 10 per cent in EUR.
Total expenses were up 5 per cent in both local currencies and EUR from the previous year excluding non-recurring items and amounted to EUR 3,741 million. Staff costs were up 5 per cent in local currencies excluding non-recurring items.
Credit quality continues to improve. Net loan losses decreased to EUR 298 million, corresponding to a loan loss ratio of 12 bps (down from 15 bps in the first nine months of 2016). Nordea's expectation is that loan losses will be below the long-term average of 16 bps in the coming quarters.
Net profit excluding non-recurring items decreased 4 per cent in both local currencies and EUR to EUR 2,419 million.
Currency fluctuations had no effect on income and expenses but a negative effect of 1 percentage point on loan and deposit volumes compared to a year ago.
Nordea Group's Basel III Common equity tier 1 (CET1) capital ratio remained flat at 19.2 per cent and the end of the third quarter 2017 compared to 19.2 per cent at the end of the second quarter 2017. Risk exposure amount, REA, decreased with EUR 1.4 billion. The main drivers are improved credit quality and lower volumes in the corporate portfolio, somewhat offset by the PD/ADF implementation. The management buffer increased to 180 bps to its highest level ever. This is above Nordea's target level of 50-150 bps.
Nordea announced on Thursday 26 October 2017 that the Group transformation enters the next phase. So far the focus has been in technology and build-up of capabilities in compliance and risk management. Investments start to deliver, so Nordea sees its time to enter the next phase of the transformation in which it sees it can structurally bring down costs and increase efficiency. In order to secure long-term competitiveness, Nordea also plans to reduce the number of employees and consultants with at least 6,000 of which approximately 2,000 are consultants.
Further information on Nordea Bank AB and its January-September 2017 result is available at www.nordea.com.
Mandatum Life
Mandatum Life's profit before taxes rose to EUR 180 million (157) for the first three quarters of 2017. The total comprehensive income for the period after tax reflecting the changes in market values of assets amounted to EUR 163 million (193). Return on equity (RoE) amounted to 15.6 per cent (18.0). At the end of September 2017 fair value reserve was EUR 617 million (596). Net investment income, excluding income on unit-linked contracts, amounted to EUR 310 million (224). Net income from unit-linked contracts was EUR 335 million (135).
On 30 September 2017 Mandatum Life Group's total technical reserves amounted to EUR 11.5 billion (11.3). In January - September 2017 with profit reserves decreased to EUR 4.6 billion (4.8). Reserves related to the higher guarantees of 4.5 and 3.5 per cent decreased by EUR 170 million to EUR 2.7 billion during January - September 2017. The unit-linked reserves increased to EUR 6.9 billion (6.4), which corresponds to 60 per cent (56) of total technical reserves.
Mandatum Life has supplemented its technical reserves with a total of EUR 325 million (273) due to low level of interest rates. The figure does not take into account the reserves relating to the segregated fund. The discount rates used remained the same as at the end of the second quarter of this year and are for 2017, 2018 and 2019 is 0.25 per cent and for 2020 the rate is 1.00 per cent. Due to this the discount rate reserve decreased EUR 33 million. Discount rate applied for the segregated fund is 0.50 per cent.
Mandatum Life Group's investment assets, excluding the assets of EUR 6.9 billion (6.5) covering unit-linked liabilities, amounted to EUR 6.3 billion (6.6) at market values at the end of September 2017.
The assets covering Mandatum Life's original with profit liabilities on 30 September 2017 amounted to EUR 5.2 billion (5.4) at market values. 45 per cent (41) of the assets are in fixed income instruments, 12 per cent (14) in money market, 30 per cent (30) in equities and 13 per cent (15) in alternative investments. The investment return marked-to-market for January - September 2017 was 5.7 per cent (5.1). The duration of fixed income assets at the end of September 2017 was 2.1 years (1.9) and average maturity 2.3 years (2.3). Fixed income (incl. money market) running yield without taking into account the FX hedging cost as at 30 September 2017 was 2.8 per cent (3.1).
The assets covering the segregated fund amounted to EUR 1.1 billion (1.2), of which 75 per cent (75) was in fixed income, 9 per cent (10) in money market, 9 per cent (8) in equities and 7 per cent (7) in alternative investments. Segregated fund's investment return marked-to-market for January - September 2017 was 1.8 per cent (3.6). At the end of September 2017 the duration of fixed income assets was 2.6 years (2.4) and average maturity 3.4 years (3.5). Fixed income (incl. money market) running yield without taking into account the FX hedging cost as at 30 September 2017 was 2.1 per cent (1.8).
Mandatum Life's expense result rose to EUR 21 million (17) and risk result to EUR 21 million (15).
Mandatum Life Group's premium income on own account amounted to EUR 630 million (669) for January - September 2017.
Mandatum Life Insurance Co. Ltd. disclosed on 27 October 2016 that it will exercise its option to sell the insurance portfolio, sold through Danske Bank's branch network in Finland, to Danske Bank or its nominee. The valuation process was finalized by 19 June 2017 and the value of the insurance portfolio as at the 31 December 2016 was determined to be EUR 334 million. The transfer of the portfolio is expected to take place during 2018.The sales gain is taxable under the Finnish tax law. The transaction will have a positive impact on Mandatum Life's solvency position.
Holding
Holding segment's profit before taxes for January - September 2017 amounted to EUR 464 million (527), of which EUR 491 million (546) relates to Sampo's share of Nordea's January - September 2017 profit. Segment's profit excluding Nordea was EUR -27 million (-19).
Sampo plc's holding in Nordea Bank was booked in the consolidated balance sheet at EUR 7.5 billion. The market value of the holding was EUR 9.8 billion, i.e. EUR 11.44 per share, at 30 September 2017. In addition the assets on Sampo plc's balance sheet included holdings in subsidiaries for EUR 3.4 billion (2.4).
In the third quarter of 2017 Sampo plc announced that it will invest EUR 265 million in Saxo Bank Group and EUR 230 million in Nets A/S both located in Denmark. Sampo plc will hold 19.9 per cent of shares in Saxo Bank Group after the transaction.
OTHER DEVELOPMENTS
Consolidation of Topdanmark
Sampo Group has since May 2011 consolidated Danish insurer Topdanmark A/S as an associated company by reporting in the P&C Insurance segment the share of Topdanmark's profit corresponding to Sampo's holding. Sampo consolidates Topdanmark as a subsidiary as of 30 September 2017 in its financial reporting in accordance with IFRS.
Previously Sampo reported three segments; P&C Insurance (including Topdanmark), Life Insurance and Holding segment (including Sampo's share of Nordea's profit). Subsequent to consolidation of Topdanmark as a subsidiary, Sampo will change its reporting structure and going forward report four segments; If, Topdanmark, Mandatum and Holding (incl. Nordea).
In this January - September 2017 Interim Statement Topdanmark's balance sheet is fully consolidated to Sampo Group's balance sheet. The share of Topdanmark's profit for January-September 2017 corresponding to Sampo's holding is reported as share of associate's profit/loss in the segment Topdanmark as a separate line. In addition, the difference between the carrying value and the fair value of Sampo's holding on 30 September 2017, EUR 706 million, is recognized in profit and loss.
As of 1 October 2017 Topdanmark's profit and loss items will be recognized line-by-line in Sampo Group's consolidated financial statements in the segment Topdanmark. Sampo plc's share of Topdanmark's purchase price allocated to customer relations was EUR 271 million. This amount will be amortized over a period of 10 years leading to a quarterly amortization of around EUR 5 million, net of tax.
Changes in the Group structure
The transformation of If's Finnish subsidiary, If P&C Insurance Company Ltd (Finland), into a branch office of the Swedish company, If P&C Insurance Ltd, was completed as of 2 October 2017 after all the necessary regulatory approvals were obtained.
According to the plan published in May 2017 Mandatum Life's Baltic subsidiary, Mandatum Life Baltic SE, will be merged to the parent company on 1 December 2017. Mandatum Life's Baltic operations will thereafter become branches to Mandatum Life.
Changes in Group management
Timo Vuorinen, former Managing Director of If P&C Insurance Company (Finland), Head of Private Sales and Services (Finland) and Head of Business Area Baltic has decided to resign from his operative responsibilities and will hence leave Sampo Group Executive Committee as of today. This is a consequence of the decision to merge If P&C Insurance Company Ltd (Finland) with If P&C Insurance Ltd. Vuorinen will be employed by Sampo Group until the end of 2017.
Remuneration
Sampo plc's Board of Directors decided on 14 September 2017 to adopt a new long-term incentive scheme 2017:1 for the management of Sampo Group (including the Group CEO) and other key employees of Sampo Group. Sampo Board Members are not included in the scheme. The incentive scheme complies with the Sampo Group Remuneration Principles and the remuneration policies of the relevant Sampo Group companies.
The incentive rewards to be paid shall be based on the share price development of the Sampo A share, on the insurance margin in If, on the return on capital at risk and on the number of theoretical incentive units granted. The threshold values for the performance conditions are presented in the terms and conditions of the incentive scheme 2017:1 are available at www.sampo.com/incentiveterms.
The core of the Remuneration Principles of Sampo Group is that all remuneration systems in Sampo Group shall safeguard the long-term financial stability of the Group and shall comply with regulatory and ethical standards. Risk sensitive but fair and rewarding compensation mechanisms enhance Sampo Group's ability to create stakeholder and shareholder value.
In January-September 2017 payments of EUR 19 million (37), including social costs, were made on the basis of the long-term incentive schemes. The result impact of the long-term incentive schemes in force in January-September 2017 was EUR 22 million (8). At the end of September 2017 Sampo Group had provisioned EUR 25 million (15) for future payments of long-term incentive schemes. EUR 37 million (37), including social costs, was paid as short-term incentives during the same period.
The terms of the long-term incentive schemes are available at www.sampo.com/incentiveterms.
Shares in the joint book-entry account
The AGM made on 27 April a decision on the forfeiture of the share certificates that were still in the joint account and the rights carried by the shares. The decision did not apply to shares whose transfer into the book-entry system had been validly requested by 2pm on 27 April 2017 and whose request for conversion after the conversion period was finalized by 31 October 2017. Approximately 98.9 per cent of the votes cast at the AGM were in favor of the proposal for the forfeiture of the share certificates that were still in the joint account and the rights carried by the shares.
The number of shares on the joint account on 30 September 2017 amounted to 4,784,390 which corresponds 0.85 per cent of the total number of shares and votes.
The company's Board of Directors will cancel the treasury shares to be held by the company as a result of the forfeiture.
Internal dividends
Mandatum Life paid a dividend of EUR 150 million to the parent company Sampo plc in September 2017. If will pay a dividend of approximately EUR 620 million (SEK 6 billion) in December 2017.
Solvency
Sampo Group calculates and reports its Group solvency according to the Act on the Supervision of Financial and Insurance Conglomerates (2004/699) which is based on Directive 2002/87/EC of the European Parliament and of the Council on the supplementary supervision of credit institutions, insurance undertakings and investment. The consolidation will change the treatment of Topdanmark in the Group Conglomerate Solvency calculation. As of 30 September 2017 Topdanmark is treated in the same way as If and Mandatum Life, which means that when the Solvency Capital Requirement (SCR) for Sampo Group is calculated Topdanmark's contribution to the Group SCR is calculated using standard formula.
On 30 September 2017 If Group's SCR under standard formula amounted to EUR 2,004 million (1,942) and own funds to EUR 3,867 million (3,822). Solvency ratio was 193 per cent (197).
Topdanmark's SCR, calculated by approved Partial Internal Model, amounted to EUR 400 million and own funds to EUR 956 million. Solvency ratio was 239 per cent. Respective figures by standard formula needed to calculate Sampo Group level solvency were the following. SCR was EUR 509 million, own funds EUR 956 million and solvency ratio 188 per cent.
Mandatum Life's solvency ratio with transitional measures amounted to 193 per cent (160) despite the dividend of EUR 150 million paid in September 2017. Own funds of EUR 2,100 million (1,893) exceed SCR of EUR 1,089 million (1,182) by EUR 1,011 million. Without transitional SCR capital requirement would have been EUR 1,670 million (1,441) and SCR EUR 1,273 million (1,409) leading to a solvency ratio of 131 per cent (102).
Group's conglomerate solvency ratio (own funds in relation to minimum requirements for own funds) using Solvency II rules for the insurance subsidiaries was 156 per cent (154) as at 30 September 2017.
Group solvency is also calculated by Solvency II rules. More information on this method is available at the Risk Management section of the Annual Report 2016. The results calculated with the two methods differ very little from one another.
More information on Sampo Group's capital policy is available at the Risk Management section of the Annual Report 2016 at www.sampo.com/annualreport.
Debt financing
Sampo plc's debt financing on 30 September 2017 amounted to EUR 3,178 million (3,548) and interest bearing assets to EUR 1,184 million (2,104). Interest bearing assets include bank accounts, fixed income instruments and EUR 500 million (637) of hybrid capital and subordinated debt instruments issued by the subsidiaries and associated company. At the end of the third quarter of 2017 the net debt amounted to EUR 1,994 million (1,443). The net debt calculation only takes into account interest bearing assets and liabilities. Gross debt to Sampo plc's equity was 45 per cent (47) and financial leverage 31 per cent (32).
On 30 September 2017 financial liabilities in Sampo plc's balance sheet consisted of issued senior bonds and notes of EUR 2,885 million (2,745) and EUR 293 million (671) of CPs issued. The average interest, net of interest rate swaps, on Sampo plc's debt as of 30 September 2017 was 0.93 per cent (1.38).
More information on Sampo Group's outstanding debt issues is available at www.sampo.com/debtfinancing.
OUTLOOK
Outlook for the rest of 2017
Sampo Group's business areas are expected to report good operating results for 2017.
However, the mark-to-market results are, particularly in Mandatum Life, highly dependent on capital market developments. The continuing low interest rate level also creates a challenging environment for reinvestment in fixed income instruments.
If is expected to reach a combined ratio of 85 - 87 per cent for the full-year 2017.
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.
The major risks and uncertainties to the Group in the near-term
In its day-to-day business activities Sampo Group is exposed to various risks and uncertainties mainly through its separately managed major business units. Parent company Sampo plc's contribution to risks is a minor one.
Major risks affecting the Group companies' profitability and its variation are market, credit, insurance and operational risks that are quantified independently by the major business units. At the Group level sources of risks are same, but they are not additive because of diversification effects.
Uncertainties in the form of major unforeseen events may have an immediate impact on the Group's profitability. Identification of unforeseen events is easier than estimation of their probabilities, timing and potential outcomes. Currently there are a number of widely identified macro-economic, political and other sources of uncertainty which can in various ways affect financial services industry negatively.
Other sources of uncertainty are unforeseen structural changes in the business environment and already identified trends and potential wide-impact events. These external drivers may also have a long-term impact on how the business shall be conducted.
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 and Group Communications, tel. +358 10 516 0030
Maria Silander, Communications Manager, tel. +358 10 516 0031
Conference call
An English-language conference call for investors and analysts will be arranged at 4pm Finnish time (2pm UK time). Please call tel. +44 (0)330 336 9105, +1 719 325 2213, +46 (0)8 5033 6574 or +358 (0)9 7479 0361. Confirmation Code: 5573363
The conference call can also be followed live at www.sampo.com/result. A recorded version will later be available at the same address.
In addition the Supplementary Financial Information Package is available at www.sampo.com/result.
Sampo will publish the Full-Year Financial Report 2017 on 7 February 2018.
Distribution:
Nasdaq Helsinki
London Stock Exchange
The principal media
Financial Supervisory Authority
www.sampo.com
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Sampo Oyj via Globenewswire
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