Sampo's core businesses performed well in line ...
SAMPO PLCÂ Â Â Â Â Â Â Â Â Â Â Â Â PRESS RELEASEÂ Â Â Â Â Â Â Â Â Â 2 November 2011 at 9.40 am
Sampo's core businesses performed well in line with expectations
Sampo Group's profit before taxes for January - September 2011 decreased to EUR
906 million (EUR 959 million in January - September 2010) as a result of
impairment losses of EUR 189 million on the equity portfolios. Total
comprehensive income for the period, taking changes in the market value of
assets into account, decreased to EUR 162 million (1,344).
- In the third quarter, Sampo's performance was well in line with our
expectations. Result of 906 million euros was only 5 per cent below the same
period previous year. With the impairments that affected it, it was still a very
good result, Kari Stadigh, Group CEO and President, says.
Earnings per share amounted to EUR 1.35 (1.43). Mark-to-market earnings per
share were EUR 0.29 (2.39) and return on equity for the Group was 2.5 per cent
(22.3).
Sampo plc's liquidity position is strong. The company has since the end of the
reporting period received a EUR 406 million dividend from its P&C insurance
subsidiary If. Currently Sampo plc holds about EUR 1 billion in cash and short-
term money market instruments.
Net asset value per share on 30 September 2011 amounted to EUR 13.62 (17.79).
Net asset value decreased because of the fall in Nordea's share price, poor
equity market development and the dividend paid in April 2011. Fair value
reserve on the Group level decreased to EUR 220 million (736).
Combined ratio for P&C insurance operation improved to 92.6 per cent for
January-September 2011 (93.0). Profit before taxes decreased to EUR 465 million
(519). Sampo's share of Nordea's net profit amounted to EUR 373 million (371).
Profit before taxes for life insurance operation rose to EUR 107 million (100).
Sampo Group's profit for full-year 2011, excluding further impairment losses, if
any, is expected to be good.
Current crisis may escalate in ways that can affect Group's activities
unfavorably although Sampo Group companies do not have direct exposures in
sovereigns under pressure and have small exposure to banking sector outside the
Nordic region.
If P&C is expected to achieve its long-term combined ratio target of below 95
per cent and to report a combined ratio of 92-94 per cent for the full-year
2011.
Nordea's contribution to Group profit is expected to remain significant and to
strengthen further as the effects of the efficiency measures (the New Normal
Plan) outlined by Nordea start materializing.
Mandatum Life's profitability is highly dependent on capital market developments
and further turmoil in capital markets can have an adverse effect on the
profits.
Please find Sampo Group's Interim Report January-September 2011 as well as a
video with Kari Stadigh, Group CEO, and Peter Johansson, Group CFO, at
www.sampo.com/result. Supplementary Financial Information is also available at
the same address.
For more information, please contact:
Maria Silander, Press Officer, tel. +358 10 516 0031
Sampo will arrange an English-language telephone conference at 4 pm Finnish time
(2 pm UK time). Please call +44 207 162 0025 (Europe) or +1 334 323 6201 (North
America). Please be ready to state the conference ID '904792' and the conference
title 'Sampo plc 2011 Q3 Release'. The telephone conference can also be followed
from a direct transmission on the Internet at www.sampo.com/result.
Distribution:
The principal media
www.sampo.com
This announcement is distributed by Thomson Reuters on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Sampo Oyj via Thomson Reuters ONE
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