Strong results, raised dividends

SAMPO PLC     FINANCIAL STATEMENT RELEASE      9 February 2011 at 9.30 am Strong results, raised dividends Sampo Group's profit before taxes for 2010 grew strongly and amounted to EUR 1,320 million (825). Total comprehensive income for the period, taking changes in the market value of assets into account, was EUR 1,807 million (3,423).    · Earnings per share rose to EUR 1.97 (1.14). Mark-to-market earnings per share were EUR 3.22 (5.88) and return on equity for the Group was 21.8 per cent for 2010 (55.7).    · The Board proposes to the Annual General Meeting to be held on 14 April 2011 a dividend of EUR 1.15 per share (1.00) and an authorization to repurchase a maximum of 50 million Sampo A shares.    · Net asset value per share increased by more than EUR 3 during 2010 and on 31 December 2010 amounted to EUR 17.79 (14.63). Fair value reserve on the Group level increased to EUR 736 million (296).    · If P&C sustained a high insurance technical profitability in 2010 despite the difficult winter. Combined ratio was 92.8 per cent for the full year 2010 (92.1). Profit before taxes rose to EUR 707 million (644). Return on equity was 39.8 per cent (53.2) and fair value reserve increased to EUR 315 million (105).    · Sampo's share of Nordea's net profit amounted to EUR 523 million. In segment reporting the share of Nordea's profit is included in the segment 'Holding'.    · Profit before taxes for Mandatum Life increased to EUR 142 million (121). Fair value reserve increased to EUR 436 million as at 31 December 2010 (210). Return on equity at market value was 36.2 per cent (97.6). Premiums grew almost 40 per cent and exceeded EUR 1 billion for the first time ever. KEY FIGURES     Change Q4/ Q4/ Change EURm 2010 2009 % 2010 2009 % Profit before taxes 1,320 825 60 361 199 81   P&C insurance 707 644 10 188 168 12   Associate (Nordea) 523 - - 152 - -   Life insurance 142 121 17 42 36 15   Holding (excl. Nordea) -48 36 - -21 -5 332 Profit for the period 1,104 641 72 302 148 104       Change     Change Earnings per share, EUR 1.97 1.14 0.83 0.54 0.26 0.28 EPS (incl. change in FVR) EUR 3.22 5.88 -2.66 0.83 -0.17 1.00 NAV per share, EUR  17.79 14.63 3.16 - - - Average number of staff (FTE) 6,914 7,311 -397 - - - Group solvency ratio, % 167.1 158.3 8.8 - - - RoE, % 21.8 55.7 -33.9 - - - The figures in this report are unaudited. Fourth quarter 2010 in brief Sampo Group's fourth quarter 2010 profit before taxes rose to EUR 361 million (199). Earnings per share doubled and were EUR 0.54 (0.26). Mark-to-market earnings per share were EUR 0.83 (-0.17). Net asset value per share increased in the fourth quarter of 2010 by EUR 1.25 and amounted EUR 17.79 at the end of 2010. P&C insurance operation had a good fourth quarter despite somewhat harsher winter conditions in the Nordic countries. Combined ratio improved to 92.3 per cent (92.7). Profit before taxes rose to EUR 188 million (168). Sampo's share of Nordea's fourth quarter 2010 net profit was EUR 152 million. Profit before taxes for the life insurance operations rose to EUR 42 million (36). Premiums written remained almost flat at EUR 284 million (289). Business areas in 2010 P&C insurance If P&C is the leading property and casualty insurance company in the Nordic region, with insurance operations that also encompass the Baltic countries and Russia. The P&C insurance group's parent company, If P&C Insurance Holding Ltd, is domiciled in Sweden, and the If subsidiaries provide insurance solutions and services in Finland, Sweden, Norway, Denmark, the Baltic countries and Russia. If's operations are divided into four business areas: Private, Commercial, Industrial and Baltic & Russia. Results     Change Q4/ Q4/ Change EURm 2010 2009 % 2010 2009 % Premiums, net 3,985 3,677 8 843 787 7 Net income from investments 487 394 24 146 110 33 Other operating income 25 23 9 7 6 24 Claims incurred -2,689 -2,477 9 -672 -630 7 Change in insurance liabilities -91 -33 176 148 144 3 Staff costs -479 -470 2 -120 -123 -2 Other expenses -501 -439 14 -156 -118 32 Finance costs -29 -30 -4 -8 -8 2 Profit (loss) before taxes 707 644 10 188 168 12 Key figures     Change     Change Combined ratio, % 92.8 92.1 0.7 92.3 92.7 -0.4 Risk ratio, % 69.1 68.0 1.1 67.7 67.6 0.1 Cost ratio, % 23.7 24.1 -0.4 24.6 25.0 -0.4 Expense ratio, % 17.2 17.6 -0.4 17.8 18.5 -0.7 Return on equity, % 39.8 53.2 -13.4 - - - Average number of staff (FTE) 6,392 6,807 -415 - - - Year 2010 was characterized by exceptional weather conditions in most of the countries where If operates: extreme winter, scorching summer riddled with storms and heavy downpours, and in the fourth quarter weeks of premature but abundant snowfall. Another exceptional development in 2010 reflected in consolidated P&C insurance result is the significant strengthening of Swedish krona. Despite the challenging weather conditions, profit before taxes for P&C insurance for the year 2010 rose 10 per cent to EUR 707 million (644) and combined ratio was again on a stable level in 2010 at 92.8 per cent (92.1) being clearly better than the long-term target of below 95 per cent. Technical result was EUR 449 million (488), of which the Private business area accounted for 53 per cent, Commercial 28 per cent, Industrial 15 per cent and Baltic and Russia 3 per cent. Insurance margin (technical result in relation to net premiums earned) decreased from the previous year to 11.5 per cent (13.4). Return on equity (RoE) remained good and was 39.8 per cent (53.2) while the fair value reserve increased to EUR 315 million (105). In business area Private risk ratio increased to 68.9 per cent (68.0) affected by the exceptional weather conditions. Helped by the improved cost ratio, combined ratio increased slightly to 93.0 (92.5). Also in Commercial cost ratio improved compared to last year but the weakened risk ratio of 69.8 per cent (68.3) drove the combined ratio slightly up to 93.5 per cent (92.6). In business area Industrial combined ratio improved to 90.6 per cent (90.7) helped by the favorable development in nominal costs. Risk ratio was at previous year's level at 71.9 percent (71.6). In Baltic and Russia both risk ratio and combined ratio increased compared to previous year, and were 56.4 per cent (55.7) and 93.4 per cent (91.7), respectively. Risk ratio weakened due to extraordinary weather conditions during year 2010 in all countries excluding Sweden, where despite the severe winter both risk ratio and combined ratio improved to 70.2 per cent (72.4) and 93.3 per cent (95.2), respectively. In Norway risk ratio increased to 69.6 per cent (68.8) but due to improved cost ratio in all business areas, combined ratio was at previous year's level at 92.1 per cent (92.0). Also in Finland cost ratio improved in all business areas, but the increase in risk ratio to 67.0 per cent (64.0) lead to a higher combined ratio of 90.4 per cent (88.5). In Denmark risk ratio increased to 72.8 per cent (66.1) and combined ratio to 101.4 per cent (93.7). Gross written premiums increased 8 per cent to EUR 4,189 million (3,888). Adjusted for currency, premiums increased 1.3 per cent. Cost ratio improved by 0.4 percentage points to 23.7 per cent compared to a year earlier as a result of continuous efforts put on streamlining the operations. The amount of total costs increased to EUR 1,009 million (939), mainly due to the strengthening of the Swedish krona. Other operating expenses increased EUR 25 million due to dissolving the collective guarantee provision in the Finnish workers' compensation insurance. Claims incurred increased to EUR 2,689 million (2,477) and risk ratio deteriorated to 69.1 per cent (68.0), affected by the weather. EUR 113 million (87) was released from technical reserves, which related to prior year claims. Reserve ratio was 173 per cent (172) of net premiums written and 236 per cent (240) of claims paid. Investment market remained positive during the year and net income from investments increased to EUR 487 million (394). As at 31 December 2010, total investment assets amounted to EUR 11.7 billion (10.7) of which 85 per cent (89) was invested in fixed income instruments and 14 per cent (11) in equities. Investment return for 2010 mark-to-market was 7.4 per cent (12.4). Duration for interest bearing assets was 1.7 years (2.5). As at 31 December 2010 If P&C had a solvency ratio (solvency capital in relation to net premiums written) of 79 per cent (77). Despite the EUR 540 million paid to Sampo plc in dividends during 2010, solvency capital amounted to EUR 3,373 million (2,943) in comparison to the regulatory minimum capital requirement of EUR 735 million. On 1 January 2011 a new five-year cooperation agreement was announced between If P&C and Volvo Cars regarding Volvia brand insurance. If has more than 443,000 Volvia-insurances in its portfolio, of which 400,000 in Sweden, which means that 40 percent of all Volvo cars in Sweden are insured by Volvia. The deal with Volvo is worth approximately 2 billion Swedish krona in premiums earned for If annually. Life insurance Mandatum Life Group consists of Mandatum Life, a wholly-owned subsidiary of Sampo plc, operating in Finland, and its subsidiary Mandatum Life Insurance Baltic SE, which has the form of a European company and is headquartered in Estonia. It operates in the other Baltic countries through branches. Results     Change Q4/ Q4/ Change EURm 2010 2009 % 2010 2009 % Premiums written 1,111 803 38 284 289 -2 Net income from investments 645 629 3 205 133 53 Other operating income 0 0 -94 0 0 -100 Claims incurred -844 -628 34 -214 -162 32 Change in liabilities for  inv. and ins. contracts -678 -600 13 -210 -205 2 Staff costs -35 -29 23 -10 -9 19 Other operating expenses -49 -46 7 -12 -9 27 Finance costs -8 -8 0 -2 -2 4 Profit before taxes 142 121 17 42 36 15 Key figures     Change Expense ratio, % 112.1 111.0 1.1 - - - Return on equity, % 36.2 97.6 -61.4 - - - Average number of staff (FTE) 470 450 20 - - - Sampo Group's life insurance operations continued their fast growth in 2010 with premium income growing almost 40 per cent. Profitability was also good and profit before taxes grew 17 per cent to EUR 142 million (121). Net investment income, excluding income on unit-linked contracts, amounted to EUR 312 million (270). Net income from unit-linked investments was EUR 333 million (359). During 2010 fair value reserve increased EUR 75 million amounting to EUR 436 million. Return on equity (RoE) in life insurance was 36.2 per cent (97.6). Mandatum Life Group's investment assets, excluding the assets of EUR 3.1 billion (2.4) covering unit-linked liabilities, amounted to EUR 6.0 billion (5.4) at market values as at 31 December 2010. Fixed income represented 61 per cent (68), equity 28 per cent (23), private equity 4 per cent (4), real estate 3 per cent (3) and other assets 3 per cent (2) of the total assets. Return on investments in 2010 was 11.1 per cent (16.8). At the end of December 2010 duration of fixed income assets was 2.7 years (2.6). Mandatum Life Group's solvency position is strong. Solvency margin grew to EUR 1,339 million (930) as at 31 December 2010. Mandatum Life's solvency ratio was 25.7 (18.6). Total technical reserves were EUR 7.5 billion (6.8). Unit-linked reserves continued their strong growth and accounted for 3.1 billion (2.4). The share of unit-linked reserves of total technical reserves increased to 41 per cent (35). Majority of Mandatum Life's traditional policies carry a guaranteed interest of 3.5 per cent. Individual policies sold in Finland before 1999 carry a guaranteed interest of 4.5 per cent. The discount rate for these policies has been lowered to 3.5 per cent and subsequently technical reserves have been supplemented with EUR 86 million (95). In addition, EUR 61 million has been reserved to lower the interest rate of all with-profit liabilities to 2.5 per cent in 2011 and to 3.0 per cent in 2012. This supplement decreases the minimum requirement for investment yield to 2.5 per cent and 3.0 per cent for 2011 and 2012, respectively. All in all, Mandatum Life has increased its technical reserves with EUR 147 million due to low level of interest rates. Life operation's expense ratio remained on previous year's level and was 112.1 per cent (111.0). This ratio does not take into account all fees intended to cover the operating expenses. Assuming all fees were to be taken into account, Mandatum Life Group's expense ratio would have been 90.1 per cent (91.8). Mandatum Life does not defer acquisition costs. Mandatum Life Group's premium income on own account exceeded for the first time one billion euro and amounted to EUR 1,111 million (803). Premiums in the main focus area of unit-linked insurance increased to EUR 843 million (551) and the share of unit-linked premiums was 76 per cent (68) of total premiums. The good sales performance was due to all sales channels working well. Particularly the successful cooperation between the wealth management unit and the proprietary corporate sales force produced excellent results. A new name was adopted for the Baltic subsidiary in 2010. The company is now called Mandatum Life Insurance Baltic SE. Premium income from the Baltic countries grew by 42 per cent and amounted to EUR 60 million (42). Mandatum Life's market share in its focus area, unit-linked business, rose to 28.2 per cent (27.8). The company's overall market share in Finland was 22.0 per cent (24.8) and market share in the Baltic countries was 19 per cent (16). Associated company Nordea Bank Ab On 31 December 2010 Sampo plc held 830,440,497 Nordea shares corresponding to a holding of 20.5 per cent. The average price paid per share amounted to EUR 6.39 and the book value in the Group accounts was EUR 6.85 per share. The closing price as at 31 December 2010 was EUR 8.16. As Sampo's holding exceeds 20 per cent Nordea, is accounted as an associated company in Sampo Group's accounts since 31 December 2009. Sampo's share of Nordea's net profit is shown on the face of Sampo Group's profit and loss account on the line Share of associate's profit/loss. The following text is based on Nordea's full-year 2010 result release published on 2 February 2011. 2010 showed record-high total income, up 3 per cent compared to last year. Operating profit increased 18 per cent, due to higher income and lower net loan losses. Risk-adjusted profit decreased by 6 per cent compared to the same period last year. Net interest income decreased 2 per cent compared to last year as a result of lower deposit income and higher funding costs. The combined negative effect is more than EUR 400 million. This income drop was successfully compensated through strong growth in both lending and deposits as well as higher lending margins. Lending increased 11 per cent and deposit volumes 15 per cent. Corporate lending margins were higher, while deposit margins were largely unchanged compared to last year. Net fee and commission income has recovered strongly and increased 27 per cent. Asset management commission income is up 42 per cent driven by assets under management, which are up 21 per cent in the last 12 months and a more attractive product mix. Net result from items at fair value decreased by 6 per cent compared to very high levels last year. The customer driven capital markets operations continued to be strong with increasing volumes. The income drop in Group Treasury and Capital Markets unallocated income was approximately EUR 450 million and almost compensated by higher income in the customer areas. Premium income in Life &Pensions was at an all-time-high. Income under equity method was EUR 66 million and other income was EUR 116 million. Total expenses increased 7 per cent compared to last year. Staff costs increased 2 per cent. In local currencies, total expenses increased 2 per cent and staff costs decreased 2 per cent. Excluding the adjustment of pension plans in Norway, total expenses increased 3 per cent and staff costs were down 1 per cent in local currencies. Net loan losses decreased 41 per cent to EUR 879 million, compared to last year, corresponding to a loan loss ratio of 31 basis points (56 basis points). Net profit increased 15 per cent to EUR 2,663 million, due to lower net loan losses. Risk-adjusted profit decreased 6 per cent compared to last year to EUR 2,622 million, mainly due to the exceptionally strong results in Treasury and Markets in 2009. Activities related to the Group initiatives launched in early 2010 are on track in all areas. In 2010, the initiatives have generated more than EUR 300 million in additional income, i.e. above the target for the year. The efficiency gains amounted to approximately EUR 70 million, in line with earlier expectations. During the fourth quarter, total investments amounted to EUR 77 million, of which EUR 22 million were accounted for as expenses in the income statement. In the full year 2010, total investments amounted to approximately EUR 200 million, of which EUR 74 million were accounted for as expenses in the income statement. The investments are expected to be somewhat higher in 2011. For more information on Nordea Bank Ab, see www.nordea.com. Holding Sampo plc controls its subsidiaries engaged in P&C and life insurance. In addition Sampo plc held on 31 December 2010 approximately 20.5 per cent of the share capital of Nordea, the largest bank in the Nordic countries. Nordea is an associated company to Sampo plc. Results     Change Q4/ Q4/ Change EURm 2010 2009 % 2010 2009 % Net investment income 60 109 -45 3 17 -84 Other operating income 16 13 29 5 4 28 Staff costs -13 -11 18 -3 -3 -4 Other operating expenses -11 -17 -34 -3 -4 -13 Finance costs -100 -58 73 -22 -19 18 Share of associates' profit 523 - - 152 - - Profit before taxes 474 36 1,217 132 -5 -       Change Average number of staff (FTE) 52 54 -2 - - - The segment's profit before taxes amounted to EUR 474 million (36), of which EUR 523 million relates to Sampo's share of Nordea's 2010 profit. Segment's profit without Nordea was EUR -48 million. Sampo plc's holding in Nordea Bank was booked in the consolidated balance sheet at EUR 5.7 billion. The market value of the holding was EUR 6.8 billion at 31 December 2010. In addition the assets on Sampo plc's balance sheet included holdings in subsidiaries for EUR 2.4 billion (2.4). In 2010, Sampo plc received a total of EUR 540 million (SEK 5,000 million) in dividends from If P&C Insurance Holding AB: in April a dividend of EUR 103 million (SEK 1,000 million) and in December a dividend of EUR 437 million (SEK 4,000 million) was paid. In addition the associated company Nordea Bank AB paid on 8 April 2010 Sampo plc a dividend amounting to EUR 204 million. Mandatum Life paid no dividends to Sampo plc during 2010. Sampo plc's debt financing at the end of 2010 was EUR 1,731 million and interest bearing assets including bank accounts were of EUR 715 million. During the year the net debt decreased marginally by EUR 32 million to EUR 1,016 million (1,048). Gross debt to Sampo plc's equity was 26 per cent (24). As at 31 December 2010 financial liabilities in Sampo plc's balance sheet consisted of issued senior bonds and notes of EUR 1,026 million, EUR 576 million of outstanding CPs issued and a TYEL-pension loan of EUR 130 million. The average interest on Sampo plc's debt as of 31.12.2010 was 3.36 per cent. Developments in 2010 Personnel The number of full-time equivalent staff decreased to 6,844 employees (7,087) as at 31 December 2010. In P&C insurance, the number of staff mainly decreased in the Baltic and Russian operations and in Norway. In life insurance, the number of staff increased slightly both in Finland and the Baltics. During 2010, approximately 92 per cent of the staff worked in P&C insurance, 7 per cent in life insurance and 1 per cent in the parent company Sampo plc. Geographically, 31 per cent worked in Finland, 27 per cent in Sweden, 22 per cent in Norway and 20 per cent in the Baltic countries, Russia, Denmark and other countries. The average number of employees during 2010 was 6,914, which compares to an average of 7,311 during 2009. Management incentive schemes On 8 June 2010 Sampo's Board approved a Compensation Code which applies to all Group companies. The Boards of these companies have adopted company-level policies based on the Code. The Code lays down the principles for e.g. management incentives and can be viewed at www.sampo.com/compensation . The variable compensation in Sampo Group is divided into short term and long term compensation. The short term compensation is based on annual performance whilst the long term compensation is carried out through the management incentive schemes. For the short term variable compensation systems decided after 1 January 2011, at least 50.1 per cent of significant pay-outs will be deferred for at least three years. In Sweden different national rules are applied and at least 60 per cent of pay-out for persons in risk-taking positions will be deferred. The management incentive schemes of Sampo Group were in 2010 of two types; long- term management incentive schemes based on share appreciation rights and one share-based incentive scheme. The outcome of the long-term management incentive schemes is determined by Sampo's share-price development over a period of approximately three years starting from the issue of the respective program. The programs are subject to thresholds on share price development and company profitability, as well as ceilings for maximum bonuses. Furthermore, the programs are subject to rules requiring part of the paid bonus to be used to acquire Sampo shares, which must in turn be held for a specified period of time. In 2006, Sampo's Annual General Meeting decided on a share-based incentive scheme for the Executive Management belonging to the Group Executive Committee. Under the program, the participants are granted the right to receive up to a pre-determined number of Sampo shares, if Sampo's share price has outperformed a predefined threshold value and insurance margin targets have been exceeded. The reward will be paid in Sampo shares, in cash or a combination thereof. Furthermore, the programs are subject to lock-up on Sampo shares received. The scheme ended during 2010. In 2010 EUR 10 million (0) was paid out based on the long-term management incentive schemes and EUR 4 million (2) was paid out based on the share-based incentive scheme. The terms of all incentive schemes are available on Sampo's website at www.sampo.com/compensation. Shares and share capital As at 31 December 2010, Sampo plc had 561,282,390 shares, which were divided into 560,082,390 A shares and 1,200,000 B shares. At the end of the financial year, Sampo plc didn't hold any of its own A shares. Neither did the other Group companies hold any shares in the parent company. On 13 October 2010, Sampo plc received a disclosure according to which Capital Research and Management Company's holding in Sampo plc had on 11 October 2010 fallen below one twentieth (1/20) of Sampo plc's entire stock and voting rights. According to the notification Capital Research held 4.95 per cent of Sampo's total share capital and 4.91 per cent of related votes. Ratings All the main ratings for Sampo Group companies remained unchanged in 2010. +--------------------------------------+--------------+-------------------+ |Rated company | Moody's |Standard and Poor's| +--------------------------------------+------+-------+---------+---------+ |  |Rating|Outlook| Rating | Outlook | +--------------------------------------+------+-------+---------+---------+ |Sampo plc | Baa2 |Stable |Not rated| - | +--------------------------------------+------+-------+---------+---------+ |If P&C Insurance Ltd (Sweden) | A2 |Stable | A | Stable | +--------------------------------------+------+-------+---------+---------+ |If P&C Insurance Company Ltd (Finland)| A2 |Stable | A | Stable | +--------------------------------------+------+-------+---------+---------+ Group solvency With Nordea Bank AB (publ) as its associated company as of 31 December 2009 Sampo Group became a financial and insurance conglomerate according to the Act on the Supervision of Financial and Insurance Conglomerates (2004/699). Group solvency has in 2010 been calculated according to Chapter 3 of the Act on the Supervision of Financial and Insurance Conglomerates (2004/699). The Act 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. SAMPO GROUP SOLVENCY 31 December 2010 31 December 2009 EURm Group capital 8,886 7,613 Sectoral items 1,711 1,545 Intangibles and other deductibles -2,388 -2,314 Dividends for the current period -646 -561 Group's own funds, total 7,564 6,283 Minimum requirements for own funds, total 4,526 3,968 Group solvency 3,038 2,315 Group solvency ratio (Own funds % of minimum requirements) 167.1 158.3 The Group's solvency ratio (own funds in relation to minimum requirements for own funds) was 167.1 per cent (158.3) as at 31 December 2010. The part of Nordea's capital requirement corresponding to Sampo's holding in Nordea is taken into account in the Group's capital requirement. In Sampo Group solvency is assessed internally by comparing the capital required to the capital available. Capital requirement assessment is based on an economic capital framework, in which Group companies quantify the amount of capital required for measurable risks over a one year time horizon at 99.5 per cent's confidence level. In addition to economic capital companies are assessing their capital need related to non-measurable risks like risks in business environment. Capital available or Adjusted Solvency Capital include regulatory capital and in addition other loss absorbing items like the effect of discounting technical reserves and other reserves excluded from regulatory capital. The economic capital tied up in Group's operations on 31 December 2010 was EUR 4,281 million (3,783) and adjusted solvency capital was EUR 8,521 million (7,077). Events after the end of the reporting year Sampo plc increased its stake in Nordea Bank AB (publ) with 0.7 percentage points by buying 30 million shares in an auction organized by the Swedish state on 4 February 2011. SEK 2,235 million was paid for the shares. After the purchase, Sampo holds 860,440,497 Nordea shares corresponding to 21.3 per cent of all shares in Nordea. Outlook for 2011 Growth in the global economy is expected to pick up momentum and deleveraging to continue as markets prove their resilience and adaptiveness. The European debt crisis, if properly managed, is expected to abate gradually. All in all the economic landscape in 2011 is expected to be fairly benign. Sampo Group is expected to report a good result for 2011. P&C and life insurance operations are expected to report good and stable results and the contribution to profit of associated company Nordea Bank is anticipated to remain strong. The continuing rise of short term interest rates will also further strengthen Sampo Group's profits. If P&C is expected to reach its long-term combined ratio target of below 95 per cent in 2011. Profit is expected to remain very good. Nordea's contribution to the Group's profit is expected to be significant. Mandatum Life's profitability is expected to remain good although it is highly dependent on capital market developments. Dividend proposal On 11 February 2010 the Board adopted a new dividend policy. According to the policy total annual dividends paid will be higher than 50 per cent of Group's net profit for the year (excluding extraordinary items). In addition share buy- backs can be used to complement the cash dividend. The parent company's distributable capital and reserves totaled EUR 6,597,907,788.86, of which profit for the financial year was EUR 710,467,413.51. The Board proposes to the Annual General Meeting a dividend of EUR 1.15 per share to company's 561,282,390 shares. The dividends to be paid are EUR 645,474,748.50 in total. Rest of funds are left in the equity capital. The dividend will be paid to shareholders registered in the Register of Shareholders held by Euroclear Finland Ltd as at the record date of 4 April 2011. The Board proposes that the dividend be paid on 28 April 2011. No significant changes have taken place in the company's financial position since the end of the financial year. The company's liquidity position is good and in the view of the Board, the proposed distribution does not jeopardize the company's ability to fulfill its obligations. 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 Essi Nikitin, IR manager, tel. +358 10 516 0066 Maria Silander, Press Officer, tel. +358 10 516 0031 Sampo will arrange a Finnish-language press conference (Savoy, Eteläesplanadi 14, Helsinki), at 12:30 pm Finnish time. An English-language telephone conference for investors and analysts will be arranged 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 '886644' and the conference title 'Sampo plc 2010/Q4 Release'. The telephone conference can also be followed from a direct transmission on the Internet at www.sampo.com/result.  A recorded version will later be available at the same address. In addition, Group CEO and President Kari Stadigh's video interview and Supplementary Financial Information are available at www.sampo.com/result. Sampo will publish an on-line Annual Report 2010 in week 10. At the same time Corporate Governance Statement and Salary and Remuneration Report will be published. Distribution: NASDAQ OMX Helsinki The principal media Financial Supervisory Authority www.sampo.com GROUP FINANCIAL REVIEW FINANCIAL HIGHLIGHTS 1-12/2010 1-12/2009 GROUP Profit before taxes EURm 1,320 825 Return on equity (at fair value) % 21.8 55.7 Return on assets (at fair value) % 10.0 18.6 Equity/assets ratio % 29.8 28.6 Group solvency ¹) EURm 3,038 2,315 Group solvency ratio % 167.1 158.3 Average number of staff 6,914 7,311 PROPERTY & CASUALTY INSURANCE Premiums written before reinsurers' share EURm 4,189 3,888 Premiums earned EURm 3,894 3,643 Profit before taxes EURm 707 644.0 Return on equity (at current value) % 39.8 53.2 Risk ratio ²) % 69.1 68.0 Cost ratio ²) % 23.7 24.1 Loss ratio ²) % 77.1 76.2 Loss ratio excl. unwinding of discount ³) % 75.6 74.6 Expense ratio ²) % 17.2 17.6 Combined ratio % 94.3 93.8 Combined ratio excl. unwinding of discount % 92.8 92.1 Average number of staff 6,392 6,807 LIFE INSURANCE Premiums written before reinsurers' share EURm 1,117 809 Profit before taxes EURm 142 121 Return on equity (at current value) % 36.2 97.6 Expense ratio % 112.1 111.0 Average number of staff 470 450 HOLDING Profit before taxes EURm 474 36 Average number of staff 52 54 PER SHARE KEY FIGURES Earnings per share EUR 1.97 1.14 Earnings per share, incl. other comprehensive income EUR 3.22 5.88 Capital and reserves per share EUR 15.83 13.56 Net asset value per share EUR 17.79 14.63 Adjusted share price, high EUR 20.71 18 Adjusted share price, low EUR 16.13 8.63 Market capitalisation EURm 11,254 9,553 ¹)  The Group solvency is calculated according to the consolidation method defined in Chapter 3 of the Act on the Supervision of Financial and Insurance Conglomerates (2004/699). ²) The 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 13. In calculating the per share key figures, the number of shares used at the balance sheet date and as the average number of shares was 561,282,390. The valuation differences on investment property have been taken into account in calculating the return on assets, return on equity, equity/assets ratio and net asset value per share. The tax component includes the tax corresponding to the result for the period, and the deferred tax liability related to valuation differences on investment property. The total comprehensive income has been used in the calculation of the return on assets and return on equity. The key figures for the insurance business have been calculated in accordance with the decree issued by the Ministry of Finance and the specifying regulations and instructions of the Finance Supervisory Authority (former Insurance Supervisory Authority). CALCULATION OF KEY FIGURES Return on equity (fair values), % + total comprehensive income + valuation differences on investments less deferred tax x 100 % ------------------------------------------------------------------------ + total equity + valuation differences on investments less deferred tax (average of values 1 Jan. and the end of reporting period) Return on assets (at fair values), % + operating profit + other comprehensive income before taxes + interest and other financial expense + calculated interest on technical provisions + change in valuation differences on investments x 100 % ------------------------------------------------------------------------ + balance sheet, total -  technical provisions relating to unit-linked insurance + valuation differences on investments (average of values on 1 Jan. and the end of the reporting period) Equity/assets ratio (at fair values), % + total equity + valuation differences on investments after deduction of deferred tax x 100 % ------------------------------------------------------------------------ + balance sheet total + valuation differences on investments Risk ratio for P&C Insurance, % + claims incurred - claims settlement expenses x 100 % ------------------------------------------------------------------------ insurance premiums earned Cost ratio for P&C Insurance, % + operating expenses + claims settlement expenses x 100 % ------------------------------------------------------------------------ insurance premiums earned Loss ratio for P&C Insurance, % claims incurred x 100 % ------------------------------------------------------------------------ insurance premiums earned Expense ratio for P&C Insurance, % operating expenses x 100 % ------------------------------------------------------------------------ insurance premiums earned Combined ratio for P&C Insurance, % Loss ratio + expense ratio Expense ratio for life insurance, % + operating expenses before change in deferred acquisition costs + claims settlement expenses x 100 % ------------------------------------------------------------------------ expense charges Per share key figures Earnings per share profit for the financial period attributable to the parent company's equity holders ------------------------------------------------------------------------ adjusted average number of shares Equity per share equity attributable to the parent company's equity holders ------------------------------------------------------------------------ adjusted number of shares at the balance sheet date Net asset value per share + equity attributable to the parent company's equity holders + valuation differences on listed associates in the Group + valuation differences after the deduction of deferred taxes ------------------------------------------------------------------------ adjusted number of shares at balance sheet date Market capitalisation number of shares at the balance sheet date x closing share price at the balance sheet date GROUP QUARTERLY INCOME STATEMENT EURm 10-12/2010 7-9/2010 4-6/2010 1-3/2010 10-12/2009 Insurance premiums written 1,127 1,007 1,198 1,764 1,077 Net income from investments 346 310 163 363 259 Other operating income 11 6 6 3 6 Claims incurred -886 -855 -874 -918 -792 Change in liabilities for insurance and investment contracts -62 25 26 -759 -61 Staff costs -133 -135 -124 -135 -134 Other operating expenses -162 -125 -139 -121 -130 Finance costs -33 -35 -29 -35 -25 Share of associates' profit/loss 152 140 106 124 0 Profit for the period before taxes 361 338 334 287 199 Taxes -59 -55 -62 -41 -51 Profit for the period 302 284 273 245 148 Other comprehensive income for the period Exchange differences on translating foreign operations 43 58 30 83 -8 Available-for-sale financial assets 146 311 -179 328 -189 Cash flow hedges -1 -2 -4 -2 -3 Share of other comprehensive income of associates 10 1 9 27 - Income tax relating to components of other comprehensive income -38 -81 48 -85 -50 Other comprehensive income for the period, net of tax 161 288 -96 351 -250 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX 463 571 177 596 -102 Profit attributable to   Owners of the parent 302 284 273 245 148   Non-controlling interests 0 0 0 0 0 Total comprehensive income attributable to   Owners of the parent 463 571 177 596 -101   Non-controlling interests 0 0 0 0 0 CONSOLIDATED COMPREHENSIVE INCOME STATEMENT EURm Note 1-12/2010 1-12/2009 Insurance premiums written 1 5,096 4,479 Net income from investments 2 1,183 1,155 Other operating income 26 20 Claims incurred 3 -3,533 -3,105 Change in liabilities for insurance and investment contracts -769 -633 Staff costs 4 -527 -510 Other operating expenses -547 -495 Finance costs -131 -87 Share of associates' profit/loss 523 1 Profit before taxes 1,320 825 Taxes -217 -184 Profit for the period 1,104 641 Other comprehensive income for the period Exchange differences 214 123 Available-for-sale financial assets 605 2,989 Cash flow hedges -9 -3 Share of other comprehensive income of associates 48 - Income tax relating to components of other comprehensive income -156 -326 Other comprehensive income for the period, net of tax 703 2,782 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1,807 3,423 Profit attributable to   Owners of the parent 1,104 641   Non-controlling interests 0 0 Total comprehensive income attributable to   Owners of the parent 1,807 3423   Non-controlling interests 0 0 Basic earnings per share (eur) 1.97 1.14 CONSOLIDATED BALANCE SHEET EURm Note 12/2010 12/2009 Assets Property, plant and equipment 29 34 Investment property 122 124 Intangible assets 5 742 688 Investments in associates 5,699 5,172 Financial assets 6, 7 17,508 15,479 Investments related to unit-linked insurance contracts 8 3,127 2,366 Tax assets 68 81 Reinsurers' share of insurance liabilities 514 481 Other assets 1,515 1,439 Cash and cash equivalents 527 771 Total assets 29,851 26,635 Liabilities Liabilities for insurance and investment contracts 9 13,749 13,014 Liabilities for unit-linked insurance and investment contracts 10 3,124 2,359 Financial liabilities 11 2,187 2,098 Tax liabilities 640 500 Provisions 36 35 Employee benefits 105 104 Other liabilities 1,124 912 Total liabilities 20,965 19,022 Equity Share capital 98 98 Reserves 1,530 1,530 Retained earnings 6,459 5,889 Other components of equity 799 96 Equity attributable to owners of the parent 8,886 7,613 Non-controlling interests 0 0 Total equity 8,886 7,613 Total equity and liabilities 29,851 26,635 STATEMENTS OF CHANGES IN EQUITY, IFRS Avai- In- Trans- lable- Sha- vest- lation for- re ed un- Re- of sale pre- Le- re- tain- foreign  finan- Cash Sha- mium gal strict- ed ope- cial flow re ac- re- ed earn- rations  assets hedges EURm capital count serve equity ings *) **) ***) Total Equity at 1 Jan. 2009 98 1,161 370 0 5,688 -323 -2,375 11 4,631 Changes in equity Transfers between equity -1,161 -366 1,527 1 0 Share-based payments -1 -1 Acquisition of treasury shares -1 -1 Recognition of undrawn dividends 11 11 Dividends -449 -449 Total comprehensive income for the period 641 122 2,662 -2 3,422 Equity at 31 Dec. 2009 98 0 4 1,527 5,889 -200 287 9 7,613 Changes in equity Share-based payments -1 -1 Recognition of undrawn dividends 10 10 Dividends -561 -561 Share of associate's other changes in equity 19 19 Total comprehensive income for the period 1,104 262 447 -6 1,807 Equity at 31 Dec. 2010 98 0 4 1,527 6,459 62 734 3 8,886 *) The total comprehensive income includes also the share of the associate Nordea's other comprehensive income, in accordance with the Group's share holding. As Nordea's other comprehensive income comprise mainly the currency hedging of net investments and exchange differences, the Group's share of Nordea's other comprehensive income EURm 48 is also included in the Group's exchange differences in the statement of changes in equity. **) The amount recognised in equity from available-for-sale financial assets for the period totalled EURm 615 (2,626).   The amount transferred to p/l amounted to EURm -168 (35). ***) The amount recognised in equity from cash flow hedges for the period totalled EURm -6 (-2) . The amount included in the translation, available-for-sale and cash flow hedge reserves represent other comprehensive income for each component, net of tax. STATEMENT OF CASH FLOWS 1-12/2010 1-12/2009 Cash and cash equivalent at the beginning of the period 761 499 Cash flow from/used in operating activities 147 1,484 Cash flow from/used in investing activities 67 -1,771 Cash flow from/used in financing activities -448 549    Dividends paid -554 -444    Acquisition of treasury shares - -1    Increase of liabilities 1,954 2,002    Decrease of liabilities -1,848 -1,008 Cash and cash equivalent at the end of the period 527 761 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 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 2009. Sampo adopted various new or revised standards and interpretations at the beginning of the year 2010. These standards and interpretations are explained in Sampos accounting policies for the financial year 2009. The financial statements will be available on Sampo's website at www.sampo.com/annualreport. The most significant of the adopted standards is the revised IFRS 3 Business combinations. The standard includes various significant changes regarding the accounting treatment of business combinations by allowing the company to measure the non-controlling interest at fair value instead of the proportionate interest in the acquiree's net assets. The choice affects the amounts of recognised goodwill and non-controlling interest. CONSOLIDATED INCOME STATEMENT BY SEGMENT FOR TWELVE MONTHS ENDED 31 DECEMBER 2010 EURm P&C insurance Life insurance Holding Elimination Group Insurance premius written 3,985 1,111 - - 5,096 Net income from investments 487 645 60 -9 1,183 Other operating income 25 0 16 -15 26 Claims incurred -2,689 -844 - - -3,533 Change in liabilities for insurance and investment contracts -91 -678 - - -769 Staff costs -479 -35 -13 - -527 Other operating expenses -501 -49 -11 15 -547 Finance costs -29 -8 -100 6 -131 Share of associates' profit/loss 0 0 523 - 523 Profit before taxes 707 142 474 -3 1,320 Taxes -189 -37 9 0 -217 Profit for the period 518 105 483 -3 1,104 Other comprehensive income for the period Exchange differences 214 0 - - 214 Available-for-sale financial assets 286 315 4 1 605 Cash flow hedges - -9 - - -9 Share of other comprehensive income of associates - - 48 - 48 Income tax relating to components of other comprehensive income -75 -80 -1 0 -156 Other comprehensive income for the period, net of tax 425 226 51 1 703 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 943 332 534 -2 1,807 Profit attributable to   Owners of the parent 1,104   Non-controlling interests 0 Total comprehensive income attributable to   Owners of the parent 1,807   Non-controlling interests 0 CONSOLIDATED INCOME STATEMENT BY SEGMENT FOR TWELVE MONTHS ENDED 31 DECEMBER 2009 EURm P&C insurance Life insurance Holding Elimination Group Insurance premius written 3,677 803 - - 4,479 Net income from investments 394 629 109 24 1,155 Other operating income 23 0 13 -16 20 Claims incurred -2,477 -628 - - -3,105 Change in liabilities for insurance and investment contracts -33 -600 - - -633 Staff costs -470 -29 -11 - -510 Other operating expenses -439 -46 -17 7 -495 Finance costs -30 -8 -58 9 -87 Share of associates' profit/loss 0 0 - - 1 Profit before taxes 644 121 36 23 825 Taxes -159 -28 9 -6 -184 Profit for the period 485 93 45 17 641 Other comprehensive income for the period Exchange differences 123 0 - - 123 Available-for-sale financial assets 709 546 1,756 -23 2,989 Cash flow hedges - -3 - - -3 Income tax relating to components of other comprehensive income -191 -141 0 6 -326 Other comprehensive income for the period, net of tax 641 402 1,756 -17 2,782 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1,127 495 1,801 0 3,423 Profit attributable to   Owners of the parent 641   Non-controlling interests 0 Total comprehensive income attributable to   Owners of the parent 3,423   Non-controlling interests 0 CONSOLIDATED BALANCE SHEET BY SEGMENT AT 31 DECEMBER 2010 EURm P&C insurance Life insurance Holding Elimina-tion Group Assets Property, plant and equipment 19 5 5 - 29 Investment property 26 96 4 -4 122 Intangible assets 577 165 0 - 742 Investments in associates 11 0 5,688 - 5,699 Financial assets 11,226 5,745 3,101 -2,563 17,508 Investments related to unit-linked insurance contracts - 3,127 - - 3,127 Tax assets 50 - 18 0 68 Reinsurers' share of insurance liabilities 510 4 - - 514 Other assets 1,363 106 66 -20 1,515 Cash and cash equivalents 319 152 56 - 527 Total assets 14,101 9,400 8,938 -2,587 29,851 Liabilities Liabilities for insurance and investment contracts 9,340 4,410 - - 13,749 Liabilities for unit- linked insurance and investment contracts - 3,124 - - 3,124 Financial liabilities 512 126 1,741 -191 2,187 Tax liabilities 464 176 - - 640 Provisions 36 - - - 36 Employee benefits 105 - - - 105 Other liabilities 690 339 117 -22 1,124 Total liabilities 11,146 8,174 1,857 -213 20,965 Equity Share capital 98 Reserves 1,530 Retained earnings 6,459 Other components of equity 799 Equity attributable to owners of the parent 8,886 Non-controlling interests 0 Total equity 8,886 Total equity and liabilities 29,851 CONSOLIDATED BALANCE SHEET BY SEGMENT AT 31 DECEMBER 2009 EURm P&C insurance Life insurance Holding Elimina-tion Group Assets Property, plant and equipment 23 5 5 - 34 Investment property 28 87 10 - 124 Intangible assets 521 167 0 - 688 Investments in associates 3 0 5,168 - 5,172 Financial assets 10,248 5,216 2,554 -2,538 15,479 Investments related to unit-linked insurance contracts - 2,366 - - 2,366 Tax assets 71 - 11 0 81 Reinsurers' share of insurance liabilities 477 4 - - 481 Other assets 1,265 133 76 -36 1,439 Cash and cash equivalents 292 68 412 - 771 Total assets 12,927 8,047 8,235 -2,574 26,635 Liabilities Liabilities for insurance and investment contracts 8,583 4,431 - - 13,014 Liabilities for unit- linked insurance and investment contracts - 2,359 - - 2,359 Financial liabilities 524 132 1,609 -166 2,098 Tax liabilities 403 97 - - 500 Provisions 35 - - - 35 Employee benefits 104 - - - 104 Other liabilities 719 134 95 -36 912 Total liabilities 10,367 7,153 1,703 -202 19,022 Equity Share capital 98 Reserves 1,530 Retained earnings 5,889 Other components of equity 96 Equity attributable to owners of the parent 7,613 Non-controlling interests   0 Total equity 7,613 Total equity and liabilities 26,635 OTHER NOTES 1 INSURANCE PREMIUMS P&C insurance 1-12/2010 1-12/2009 Premiums from insurance contracts Premiums written, direct insurance 4,105 3,770 Premiums written, assumed reinsurance 84 118 Premiums written, gross 4,189 3,888 Ceded reinsurance premiums written -204 -211 P&C Insurance, total 3,985 3,677 Change in unearned premium provision -94 -28 Reinsurers' share 2 -5 Premiums earned for P&C Insurance, total 3,894 3,643 Life insurance 1-12/2010 1-12/2009 Premiums from insurance contracts Premiums from contracts with discretionary participation feature 271 231 Premiums from unit-linked contracts 376 273 Premiums from other contracts 1 4 Insurance contracts, total 648 508 Assumed reinsurance 2 2 Premiums from investment contracts Premiums from contracts with discretionary participation feature 1 20 Premiums from unit-linked contracts 467 279 Investment contracts, total 468 299 Reinsurers' shares -6 -6 Life insurance, total 1,111 803 Single and regular premiums from direct insurance Regular premiums, insurance contracts 392 381 Single premiums, insurance contracts 256 127 Single premiums, investment contracts 468 299 Total 1,115 807 Group, total 5,096 4,479 2 NET INCOME FROM INVESTMENTS P&C Insurance 1-12/2010 1-12/2009 Financial assets Derivative financial instruments 28 55 Financial assets designated as at fair value through p/l     Debt securities 7 28     Equity securities 3 10 Total 9 38 Loans and receivables 13 13 Financial asset available-for-sale     Debt securities 446 411     Equity securities 73 -54 Total 519 357 Total financial assets 569 463 Income from other assets -2 0 Fee and commission expense -8 -6 Expense on other than financial liabilities -16 -3 Effect of discounting annuities -58 -59 P&C insurance, total 487 394 Life insurance 1-12/2010 1-12/2009 Financial assets Derivative financial instruments -7 50 Financial assets designated as at fair value through p/l     Debt securities 5 5     Equity securities 0 0 Total 6 6 Investments related to unit-linked contracts     Debt securities 48 43     Equity securities 284 314     Loans and receivables -1 0     Other financial assets 2 2 Total 333 359 Loans and receivables 4 4 Financial asset available-for-sale     Debt securities 190 189     Equity securities 107 -5 Total 297 184 Total income from financial assets 631 604 Other assets 5 20 Fee and commission income, net 8 5 Life insurance, total 645 629 Holding 1-12/2010 1-12/2009 Financial assets Derivative financial instruments 26 15 Loans and other receivables 21 8 Financial assets available-for-sale     Debt securities 10 15     Equity securities 2 62 Total 11 77 Other assets 2 1 Fee income, net 1 8 Holding, total 60 109 Elimination items between segments -9 24 Group, total 1,183 1,155 3  CLAIMS INCURRED P&C insurance 1-12/2010 1-12/2009 Claims paid -2,690 -2,437 Reinsurers' share 116 103 Claims paid, net -2,574 -2,333 Change in provision for claims outstanding -106 -162 Reinsurers' share -9 18 P&C Insurance total -2,689 -2,477 Life insurance 1-12/2010 1-12/2009 Claims paid -782 -564 Reinsurers' share 4 4 Claims paid, net -778 -560 Change in provision for claims outstanding -66 -67 Reinsurers' share 0 0 Life insurance, total -844 -628 Group, total -3,533 -3,105 4 STAFF COSTS P&C insurance 1-12/2010 1-12/2009 Wages and salaries -340 -330 Granted cash-settled share options -9 -4 Pension costs -63 -74 Other social security costs -68 -62 P&C insurance, total -479 -470 Life insurance 1-12/2010 1-12/2009 Wages and salaries -27 -23 Granted cash-settled share options -2 -1 Pension costs -4 -3 Other social security costs -3 -2 Life insurance, total -35 -29 Holding 1-12/2010 1-12/2009 Wages and salaries -7 -7 Granted cash-settled share options -4 -1 Pension costs -1 -2 Other social security costs -1 -1 Holding, total -13 -11 Group, total -527 -510 5 INTANGIBLE ASSETS P&C insurance 12/2010 12/2009 Goodwill 564 506 Customer relations - 6 Other intangible assets 13 8 P&C Insurance, total 577 521 Life insurance 12/2010 12/2009 Goodwill 153 153 Other intangible assets 12 14 Life insurance, total 165 167 Holding 12/2010 12/2009 Other intangible assets 0 0 Group, total 742 688 6 FINANCIAL ASSETS P&C insurance 12/2010 12/2009 Derivative financial instruments (Note 7) 63 84 Financial assets designated as at fair value through p/l    Debt securities 90 136    Equity securities 2 27 Total 92 163 Loans and receivables    Loans 72 2    Deposits with ceding undertakings 1 1 Total 73 3 Financial assets available-for-sale    Debt securities 9,226 8,797    Equity securities 1,772 1,201 Total 10,997 9,998 P&C insurance, total 11,226 10,248 Life insurance 12/2010 12/2009 Derivative financial instruments (Note 7) 58 66 Financial assets designated as at fair value through p/l    Debt securities 61 46    Equity securities 0 4 Total 61 50 Loans and receivables    Loans 25 24    Deposits with ceding undertakings 1 2 Total 26 26 Financial assets available-for-sale    Debt securities 3,242 3,289    Equity securities *) 2,357 1,785 Total 5,598 5,074 Life insurance, total 5,745 5,216 *) of which investments in interest funds 61 157 Holding 12/2010 12/2009 Derivative financial instruments (Note 7) 36 12 Loans and receivables    Deposits 1 1 Financial assets available-for-sale    Debt securities 659 135    Equity securities 36 36 Total 695 172 Investments in subsidiaries 2,370 2,370 Holding, total 3,101 2,554 Elimination items between segments -2,563 -2,538 Group, total 17,508 15,479 7 DERIVATIVE FINANCIAL INSTRUMENTS P&C insurance 12/2010 12/2009 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 970 8 0 849 22 0 Foreign exchange derivatives 3,963 54 75 3,365 62 88 Equity derivatives 2 1 - 1 - 0 Total 4,935 63 75 4,215 84 88 Derivatives held for hedging Fair value hedges 189 0 0 217 0 0 P&C Insurance, total 5,124 63 75 4,432 84 89 Life insurance 12/2010 12/2009 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 1,277 30 3 1,406 51 3 Foreign exchange derivatives 1,874 25 9 852 4 29 Commodity derivatives - - 0 14 - 0 Total 3,151 54 12 2,272 54 32 Derivatives held for hedging Cash flow hedges 88 3 0 365 12 - Fair value hedges 494 1 14 227 - - Total 582 4 14 591 12 - Life insurance, total 3,733 58 26 2,863 66 32 Holding 12/2010 12/2009 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 1,075 29 - 975 7 - Exchange derivatives - - - 48 1 0 Equity derivatives 95 7 10 42 4 7 Total 1,170 36 10 1,065 12 7 8 INVESTMENTS RELATED TO UNIT-LINKED INSURANCE Life insurance 12/2010 12/2009 Financial assets as at fair value through p/l Debt securities 551 365 Equity securities 2,430 1,923 Loans and receivables 131 70 Derivatives 15 8 Life insurance, total 3,127 2,366 9 LIABILITIES FOR INSURANCE AND INVESTMENT CONTRACTS P&C insurance 12/2010 12/2009 Insurance contracts Provision for unearned premiums 1,845 1,668 Provision for claims outstanding 7,494 6,915 P&C Insurance, total 9,340 8,583 Reinsurers' share Provision for unearned premiums 53 49 Provision for claims outstanding 457 428 P&C Insurance, total 510 477 Life insurance 12/2010 12/2009 Insurance contracts Liabilities for contracts with DPF    Provision for unearned premiums 2,465 2,513    Provision for claims outstanding 1,907 1,844 Total 4,372 4,358 Liabilities for contracts without DPF    Provision for unearned premiums 14 13    Provision for claims outstanding 0 0 Total 14 13 Total 4,386 4,371 Assumed reinsurance    Provision for unearned premiums 1 1    Provision for claims outstanding 2 2 Total 3 3 Insurance contracts, total Provision for unearned premiums 2,479 2,528 Provision for claims outstanding 1,909 1,846 Total 4,388 4,374 Investment contracts Liabilities for contracts with DPF    Provision for unearned premiums 22 57 Liabilities for insurance and investment contracts, total Provision for unearned premiums 2,501 2,585 Provision for claims outstanding 1,909 1,846 Life insurance, total 4,410 4,431 Recoverable from reinsurers Provision for unearned premiums 0 0 Provision for claims outstanding 4 4 Life insurance, total 4 4 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. Group, total 13,749 13,014 10 LIABILITIES FROM UNIT-LINKED INSURANCE AND INVESTMENT CONTRACTS Life insurance 12/2010 12/2009 Unit-linked insurance contracts 2,381 1,961 Unit-linked investment contracts 743 398 Life insurance, total 3,124 2,359 11 FINANCIAL LIABILITIES P&C insurance 12/2010 12/2009 Derivative financial instruments (Note 7) 75 89 Subordinated debt securities Subordinated loans 437 435 P&C insurance, total 512 524 Life insurance 12/2010 12/2009 Derivative financial instruments (Note 7) 26 32 Subordinated debt securities Subordinated loans 100 100 Life insurance, total 26 132 Holding 12/2010 12/2009 Derivative financial instruments (Note 7) 10 7 Debt securities in issue Commercial papers 575 466 Bonds 1,026 962 Total 1,601 1,429 Subordinated debt securities Debentures - 37 Other Pension loan 130 130 Other - 6 Total 130 136 Holding, total 1,741 1,609 Elimination items between segments -191 -166 Group, total 2,187 2,098 12 CONTINGENT LIABILITIES AND COMMITMENTS P&C insurance 12/2010 12/2009 Off-balance sheet items Guarantees 57 19 Other irrevocable commitments 27 69 Total 84 88 Assets pledged as collateral for liabilities or contingent liabilities 12/2010 12/2010 12/2009 12/2009 Assets pledged as Liabilities/ Assets Liabilities/ collateral Assets pledged commit- ments pledged commit- ments Cash at balances at central banks 10 8 9 7 Investments - Investment securities 133 111 124 101 Total 142 118 133 108 Non-cancellable operating leases 12/2010 12/2009 Minimum lease payments not later than one year 32 32 later than one year and not later than five years 78 82 later than five years 101 106 Total 212 220 Life insurance 12/2010 12/2009 Off-balance sheet items Fund commitments 348 357 12/2010 12/2009 Other commitments Acquisition of IT- software 2 0 Non-cancellable operating leases 12/2010 12/2009 Minimum lease payments not later than one year 2 2 later than one year and not later than five years 6 7 later than five years 0 1 Total 8 10 Holding 12/2010 12/2009 Off-balance sheet items Fund commitments 1 3 Assets pledged as collateral for liabilities or contingent liabilities 12/2010 12/2010 12/2009 12/2009 Assets pledged as Liabilities/ Assets Liabilities/ collateral Assets pledged commit- ments pledged commit- ments Investments - Mortgaged collateral notes - - 15 6 Non-cancellable operating leases 12/2010 12/2009 Minimum lease payments not later than one year 1 1 later than one year and not later than five years 3 3 later than five years 1 2 Total 5 7 13 RESULT ANALYSIS OF P&C INSURANCE BUSINESS 1-12/2010 1-12/2009 Premiums earned 3,894 3,643 Claims incurred -2,943 -2,717 Operating expenses -671 -640 Other technical income and expenses 0 0 Allocated investment return transferred from the non-technical account 168 201 Technical result 449 488 Investment result 516 423 Allocated investment return transferred to the technical account -226 -261 Other income and expenses -32 -6 Operating result 707 644 14 SAMPO PLC'S INCOME STATEMENT AND BALANCE SHEET (FAS) INCOME STATEMENT   1-12/2010 1-12/2009 Other operating income 17 14 Staff expenses -13 -12 Depreciation and impairment 0 0 Other operating expenses -12 -18 Operating profit -8 -15 Finance income and expenses 710 538 Profit before appropriations and income taxes 702 522 Income taxes 9 9 Profit for the financial period 710 531 BALANCE SHEET 12/2010 12/2009 ASSETS Non-current assets Intangible assets 1 1 Property, plant and equipment 4 4 Investments   Shares in Group companies 2,370 2,370   Receivables from Group companies 145 122   Shares in participating undertakings 5,304 5,168   Receivables from participating undertakings 150 -   Other shares and participations 40 41   Other receivables 365 14 Receivables 120 98 Cash and cash equivalents 56 412 TOTAL ASSETS 8,553 8,229 LIABILITIES Equity Share capital 98 98 Fair value reserve 0 -3 Invested unrestricted equity 1,527 1,527 Other reserves 273 273 Retained earnings 4,088 4,108 Profit for the year 710 531 Total equity 6,696 6,534 Liabilities Long-term 1,155 1,129 Short-term 702 567 Total liabilities 1,857 1,696 TOTAL LIABILITIES 8,553 8,229 Financial statement release 2010 (pdf): http://hugin.info/3096/R/1486867/422230.pdf This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (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 [HUG#1486867]

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