SAMPO PLC STOCK EXCHANGE RELEASE 1 (39)
11 May 2006, at 9:30
Sampo Group's results for January - March 2006
STRONG PROFITABILITY CONTINUED
Sampo Group's earnings per share in the first quarter 2006 rose by
almost 50 per cent to EUR 0.44 (0.30). Taking the change in the fair
value reserve into account, earnings were EUR 0.52 per share (0.37).
Profit before taxes amounted to EUR 339 million (230). Group
annualised RoE exceeded the target of 19 per cent and rose to 26.8
per cent (23.3). Net asset value per share amounted to EUR 8.17
(6.46).
- - Operating performance of banking and investment services continued
to develop favourably. Profit before taxes rose to EUR 91 million
(62) supported by rapid growth in fees and commissions and an
increase in net interest income. Net income from investments includes
a one-off private equity gain of EUR 24 million. Banking and
investment services exceeded its RoE target of 20 per cent as the
annualised RoE rose to 25.8 per cent (18.2).
- - The combined ratio for P&C insurance, in a seasonally difficult
winter quarter, was 94.3 per cent (94.9). Cost ratio decreased by 1.1
percentage points to 23.8 per cent. Although rising interest rates
were reflected in investment income, the profit before taxes
increased to EUR 133 million (117). The RoE target of 17.5 per cent
was not achieved as the annualised RoE amounted to 14.8 per cent
(15.8).
- - Net investment income in life insurance, excluding investments on
unit-linked contracts, rose to EUR 171 million (98). Profit before
taxes more than doubled to EUR 128 million (62). The change in the
fair value reserve in the first quarter of 2006 amounted to EUR 45
million (42). The annualised RoE was 54.2 per cent (48.3) exceeding
the target of 17.5 per cent.
KEY FIGURES
EUR m 1-3/2006 1-3/2005 Change
Profit before taxes
Banking 91 62 +29
P&C insurance 133 117 +16
Life insurance 128 62 +66
Other -19 -12 -7
Group total 339 230 +109
Earnings per share, EUR 0.44 0.30 +0.14
Earnings per share (incl. change in fair
value reserve) EUR 0.52 0.37 +0.15
Net asset value per share, EUR * ) 8.17 6.46 +1.71
Average number of staff (FTE) 11,499 11,736 -237
Group solvency ratio, % 203.8 182.3 +21.5
RoEC, % 35.6 26.7 +8.9
RoE, % 26.8 23.3 +3.5
* ) Less full deferred tax.
The figures in this report are unaudited. Profit&loss items are
compared on a year-on-year basis whereas comparison figures for
balance sheet items are from 31.12.2005 unless otherwise stated.
Changes in Group structure
No changes in group structure took place during the reporting period.
On 27 April 2006 Sampo Bank plc signed an agreement to acquire
Industry and Finance Bank (Profibank) based in St. Petersburg.
Administration
The Annual General Meeting of Sampo plc held on 5 April 2006
re-elected the following members to the company's Board of Directors:
Tom Berglund, Anne Brunila, Georg Ehrnrooth, Christoffer Taxell,
Matti Vuoria and Bj�rn Wahlroos. The Annual General Meeting elected
Jussi Pesonen and Jukka Pekkarinen as new members. At its first
meeting, the Board elected Georg Ehrnrooth Chairman and Matti Vuoria
Vice Chairman.
The Annual General Meeting adopted the financial accounts and
discharged those accountable from liability. The firm of authorised
public accountants, Ernst & Young Oy, was re-elected Auditor.
On 15 February 2006 Sampo plc's Board of Directors nominated Morten
Thorsrud, head of If Industrial business area, to the Group's
Executive Committee.
Changes in share capital
The Annual General Meeting of 5 April 2006 decided, in accordance
with the proposal of the Board of Directors, to pay a dividend of EUR
0.60 per share for 2005.
The Annual General Meeting also authorised the Board of Directors to
repurchase Sampo shares. The authorisation is valid until 5 April
2007. The maximum amount of A shares that can be repurchased is 5 per
cent of the company's share capital or of the number of votes carried
by all shares. Shares can be bought back either through an offer made
to all holders of A shares in proportion to their holdings and on
equal terms determined by the Board, or through public trading on the
Helsinki Stock Exchange. Shares can be bought back to implement Sampo
Group's equity-based incentive plans and/or to be cancelled.
Sampo plc did not repurchase any of its own shares during the first
quarter of 2006.
On 20 January 2006 the Board approved subscriptions with the warrants
of the 2000 option programme for 382,200 A shares. The subscriptions
increased the share capital by EUR 64,281.43.
On 31 March 2006 Sampo plc's share capital amounted to EUR
96,153,124.17, and the number of A shares totalled 570,500,515. The
total number of shares of the company, including 1,200,000 B-shares
was 571,700,515.
The Annual General Meeting decided to decrease company's share
capital by cancelling the 7,000,000 Sampo A shares repurchased in
2005. The number of A shares decreased by a corresponding number.
Reduction in share capital by EUR 1,777,315.50 was registered on 26
April 2006, after which Sampo plc's share capital amounted to EUR
94,975,808.67, and the number of A shares totalled 563,500,515. The
total number of shares of the company, including 1,200,000 B-shares
was 564,700,515. After the cancellation Sampo plc and its
subsidiaries do not possess Sampo shares.
On 16 February 2006 Sampo received disclosure under chapter 2,
section 9 of the Securities Markets Act, according to which the total
number of Sampo A shares held by Varma Mutual Pension Insurance
Company had decreased below 10 per cent. On 30 March 2006 Exafin B.V.
notified Sampo that it's holding of Sampo A shares had risen above 5
per cent. On 24 April 2006 Sampo received a disclosure according to
which the total number of Sampo A shares held by Barclays and the
funds managed by it had risen above 5 per cent. On 27 April 2006
Sampo received a disclosure that the holding of Sampo by Barclays and
the funds managed by it had decreased below 5 per cent.
Staff
Sampo Group's full-time equivalent staff at 31 March 2006 amounted to
11,511 employees. The number of staff decreased with 237 in a year.
Of the employees, 37 per cent worked in banking and investment
services, 56 per cent in P&C insurance, 3 per cent in life insurance,
1 per cent in the holding company and 3 per cent in Primasoft.
Geographically, 51 per cent worked in Finland, 16 per cent in Sweden,
14 per cent in Norway, 14 per cent in the Baltic countries, 4 per
cent in Denmark and 1 per cent in other countries. The staff
decreased in P&C insurance and Primasoft, but increased in the Baltic
banking operations, because of rapid growth. The average number of
employees during the first quarter of 2006 was 11,499 (11,736).
Management long-term incentive schemes
The payout on Sampo Group's long-term management incentive schemes is
dependent on Sampo's financial and share price performance. Payments
under the schemes cover the financial years 2005 - 2008. At 31 March
2006 the total provision for management incentive schemes, including
social security costs, was EUR 55.8 million and the impact on the
first quarter 2006 result was EUR 17.7 million.
The Annual General Meeting approved on 5 April 2006 the "Sampo 2006"
equity-based incentive plan. The "Sampo 2006" equity-based incentive
plan applies to senior executive management of Sampo plc or its
subsidiaries as decided by Sampo's Board of Directors and to Sampo's
President and CEO. Within the share-based incentive scheme, the
maximum number of Sampo's A shares distributable as a reward is
1,500,000.
Ratings
All the main ratings for Sampo Group companies remained unchanged in
the first quarter of 2006.
Rated company Moody's Standard and Poor's
Sampo plc Baa1 not rated
Sampo Bank plc A1/P-1 A/A-1
AS Sampo Pank (Estonia) A2*/P1 not rated
If P&C Insurance Co. Ltd (Finland) A2 A
If P&C Insurance Ltd (Sweden) A2 A
* Long-term bank deposit rating
At 3 April 2006 Moody's upgraded AS Sampo Pank's (Estonia) Financial
Strength Rating (FSR) from D to D+ with stable outlook.
Group solvency
Group solvency is calculated according to the consolidation method
defined in the Chapter 3 of the Act of the Supervision of Financial
and Insurance
Conglomerates, which entered into force on 1 January 2005. The
Group's solvency ratio (own funds in relation to minimum requirements
for own funds) at 31 March 2006 was 203.8 per cent (196.1).
SAMPO GROUP SOLVENCY 31.3.2006 31.12.2005 31.3.2005
EUR m
Group capital 4,623.4 4,348.1 3,630.9
Sectoral items 2,823.7 2,733.1 2,156.5
Intangibles and sectoral deductibles -2,508.4 -2,254.5 -1,702.4
Other sectoral non-transferable items -305.1 -493.8 -238.8
Group's own funds, total 4,633.6 4,332.9 3,845.9
Minimum requirements for own funds,
total 2,273.4 2,209.3 2,110.0
Group solvency 2,360.2 2,123.6 1,735.9
Group solvency ratio
(Own funds % of minimum requirements) 203.8 % 196.1 % 182.3 %
In Sampo Group risks are described and aggregated internally through
economic capital, which describes the amount of capital needed to
bear different kinds of risks. The economic capital tied up in the
Group's operations at 31 March 2006 was EUR 3,252 million (3,148).
Banking and investment services
Sampo Group's banking and investment service companies are organised
under Sampo Bank Group. Sampo Bank plc, the parent company, operates
mainly in Finland and through subsidiaries in all the Baltic
countries. Sampo Bank also has a branch office for corporate clients
in Stockholm. The investment services companies are Sampo Fund
Management Ltd, Mandatum Asset Management Ltd, Mandatum Securities
Ltd (former Mandatum Stockbrokers Ltd), Mandatum & Co Ltd, 3C Asset
Management Ltd and Arvo Asset Management Ltd. Sampo Bank's branch
network also operates as a distribution channel for other products
like life insurance and offers financial advisory services.
Results 1-3/2006 1-3/2005 Change
EUR m
Net interest income 86 82 +4
Net income from financial transactions 17 17 0
Net fee and commission income 65 51 +14
Other operating income 36 12 +24
Total operating expenses -112 -104 -8
Profit (loss) before taxes 91 62 +29
Key figures
Cost to income ratio *) % 55.2 64.5 -9.3
Return on equity % 25.8 18.2 +7.6
Average number of staff (FTE) 4,282 4,110 +172
*) Fees and commissions net
Operating performance of banking and investment services continued to
improve. Profit before taxes rose to EUR 91 million (62) supported by
strong growth in asset management and lending. Profit includes
one-off sales gain from private equity worth EUR 24 million before
minority interests of EUR 9 million. Annualised return on equity
amounted to 25.8 per cent (18.2).
Net interest income was EUR 86 million (82). Strong volume growth
continued in lending. Margins are still under some pressure, but were
relative stable during the period. Higher interest rate levels first
affect shorter term funding costs and only gradually interest income,
which is mostly tied to 12-month Euribor. During the first quarter
higher rates increased funding costs, and this had a negative impact
on net interest income. Assuming the current interest rate levels
will prevail, the positive impact from already realised interest rate
rises will materialize during 2006. One percentage point's interest
rate rise is estimated to improve Sampo Bank's net interest income
and net income from financial transactions by EUR 40 million.
Net fee and commission income increased by 28 per cent compared with
first quarter 2005 and climbed to EUR 65 million (51). Robust growth
continued in asset management and equity brokerage fees, which were
favourably impacted by good equity market performance.
Total operating costs were EUR 112 million (105). The growth in costs
derives from provisions for performance-related management incentive
schemes and Baltic growth. Cost-to-income ratio was 55.2 per cent
(64.5).
Loans and advances increased by 4 per cent from year-end 2005 and
totalled EUR 19,219 million (18,483). Mortgages continued to grow
briskly and the growth of mortgage stock year on year was 30.4 per
cent in total and 25.4 per cent in Finland, exceeding market growth
of 16 per cent. Sampo Bank's market share of Finnish housing loans
increased to 15.7 per cent (14.6). Healthy growth of consumer credit
continued and the volume grew by 16.4 per cent from one year ago.
Corporate lending grew by 15.7 per cent to EUR 7,626 million during
the same period. As in earlier quarters, geographically growth in
lending and deposits was fastest in the Baltic countries with lending
volumes increasing to EUR 1,626 million (1,447).
Credit quality remained healthy and net impairment losses for the
first quarter of 2006 were 0 euros (4).
Deposits amounted to EUR 11,358 million decreasing 1 per cent from
the year-end 2005 (11,442) but growing by 3 per cent from the
comparable 31 March 2005 figure.
The Finnish mutual fund market experienced strong growth and Sampo's
mutual fund assets increased by 15 per cent from year-end 2005 to a
new record level of EUR 10.2 billion (8.9) at end of March 2006.
Sampo's market share of the assets of mutual funds registered in
Finland was stable during the review period and amounted to 19.8 per
cent (19.9) on 31 March 2006. Mutual fund assets include EUR 1.0
billion of Sampo Group investments (1.3), representing 10 per cent of
total assets (18).
Sampo Bank Group's capital adequacy was 10.1 per cent (10.6). The
tier 1 ratio was 7.3 per cent (7.6) and tier 1 capital rose to EUR
1,268 million (1,255) due to retained earnings. Risk-weighted assets
grew to EUR 17,313 million (16,466) because of the strong growth in
lending.
On 27 April 2006 Sampo Bank signed an agreement to acquire Industry
and Finance Bank (Profibank) in St. Petersburg, Russia. Profibank
possesses all relevant banking licenses in Russia including the
licence to attract deposits. After having built and strengthened the
current operations, Sampo intends to offer corporate banking for
Nordic customers operating in Russia as well as retail banking
services in St. Petersburg region.
P&C insurance
If is the leading property and casualty insurance company in the
Nordic region, with insurance operations that also encompass the
Baltic countries. If P&C Insurance Holding Ltd, headquartered in
Sweden, is the parent company for property and casualty insurance
within the Sampo Group. Business operations are conducted via
subsidiaries and branch offices in the Nordic and Baltic countries.
Results 1-3/2006 1-3/2005 Change
EUR m
Insurance premiums earned 920 906 +14
Net income from investments 83 74 +9
Claims incurred -648 -634 -14
Other expenses -227 -233 +6
Profit (loss) before taxes 133 117 +16
Key figures
Combined ratio % 94.3 94.9 -0.6
Risk ratio % 70.4 70.0 +0.4
Cost ratio % 23.8 24.9 -1.1
Expense ratio % 17.5 18.3 -0.8
Return on equity % 14.8 15.8 -1.0
Average number of staff (FTE) 6,421 6,650 -229
Profit before taxes for the P&C insurance operations rose to EUR 133
million (117). The annualised RoE was 14.8 per cent (15.8) and the
target of 17.5 per cent was not achieved. The technical result
remained strong at EUR 93 million (95), of which Private business
area accounted for 57 per cent, Commercial for 29 per cent and
Industrial for 15 per cent. The insurance margin - technical result
in relation to net premiums earned - remained at a healthy level and
was 10.2 per cent (10.5).
The combined ratio improved by 0.6 percentage points to 94.3 per cent
(94.9). Risk ratio rose to 70.4 per cent (70.0), which is mainly
explained by a slight increase in the number of frequency claims,
particularly motor claims in Norway. Business area Baltics
experienced two large claims, which led to an increase in the claims
ratio to 77.2 per cent (65.0). EUR 21 million was released from
technical reserves relating to prior year claims (23).
The cost ratio improved by 1.1 percentage points to 23.8 per cent.
Total costs decreased to EUR 227 million (233) mainly as a result of
number of staff decreasing. Cost reductions were most significant in
business areas Industrial and Commercial.
Gross written premiums grew by 6 per cent to EUR 1,504 million.
Excluding the currency effects the growth was 2 per cent. Premiums
earned amounted to EUR 920 million (906) in the first quarter of
2006. Premiums grew by 3 per cent in the Commercial business area and
by 12 per cent in the Baltics. In the Private and Industrial business
areas, premium growth was approximately 1 per cent.
Total investment assets of If amounted to EUR 10.1 billion (9.4) at
31 March 2006. Of all investment assets, 89 per cent was invested in
fixed income instruments (87), 10 per cent in equity (13) and 1 per
cent in other assets (1). Investment income rose to EUR 83 million
(74), because the strong performance of equities compensated the
decrease in the value of fixed income investments. The return on
investment was 1.0 percent at market value (1.0).
The solvency ratio - i.e. solvency capital in relation to net
premiums written - was 78 per cent (88) and solvency capital
decreased to EUR 2,912 million (3,216). The decrease is entirely due
to the 2005 dividend of EUR 428 million paid to the parent company,
Sampo plc. Shareholders' equity amounted to EUR 2,260 million
(2,595). Reserve ratio development was stable and reserves were 156
per cent (157) of net premiums written.
If signed in March 2006 a co-operation agreement with the Swedish
housing finance corporation SBAB. The agreement will make it possible
for SBAB's customers to purchase If's P&C insurance products through
SBAB. SBAB has a 15 per cent market share in Sweden of the corporate
mortgage market and 9.4 per cent on the retail market.
Life insurance
Sampo Life Group consists of Sampo Life, a wholly-owned subsidiary of
Sampo plc, operating in Finland and of its subsidiaries in all the
Baltic countries. The company also has a subsidiary in Sweden and a
branch office in Norway to complement the product offering of If P&C.
Results 1-3/2006 1-3/2005 Change
EUR m
Premiums written 174 130 +44
Net income from investments 247 124 +123
Claims incurred -143 -169 +26
Change in liabilities for inv. and ins.
contracts -135 -9 -126
Other expenses -15 -14 -1
Profit (loss) before taxes 128 62 +66
Key figures
Expense ratio % 114.5 108.3 +6.2
Return on equity % 54.2 48.3 +5.9
Average number of staff (FTE) 356 368 -12
Sampo Life Group's profit before taxes rose to EUR 128 million (62).
Net investment income, excluding the return on investments in
unit-linked contracts, amounted to EUR 171 million (98). Net income
from unit-linked investments was EUR 76 million (26). The fair value
reserve increased by EUR 45 million (42) in the first quarter of
2006.
The return on investments at market value amounted to 4.0 per cent
(2.8) supported by rising equity prices. Life operations have an RoE
target of 17.5 per cent, which was clearly exceeded as the annualised
RoE rose to 54.2 per cent (48.3). Excluding the assets of EUR 1.5
billion (1.0) covering unit-linked liabilities, the investment assets
of Sampo Life Group were at 31 March 2006 EUR 6.1 billion at market
value (5.4). Fixed income covered 65 per cent (63), equity 32 per
cent (32) and real estate 3 per cent (5) of the total assets. Equity
investments include direct equity holdings, equity funds and private
equity.
Investments in Finland accounted for 42 per cent (42) of total
investments at 31 March 2006, the rest of the euro zone for 26 per
cent (27) and other foreign investments for 32 per cent (31). Finnish
equity investments were 86 per cent of all direct equity investments.
Sampo Life Group's solvency strengthened further and the solvency
capital amounted to EUR 1,232 million (949). The solvency ratio rose
to 24.3 per cent of technical reserves (19.8). Technical reserves for
unit-linked insurance increased to EUR 1,447 million (1,262) of the
total technical reserves of EUR 6.2 billion (6.0). The share of
unit-linked reserves of total technical reserves grew to 23.5 per
cent (21.0).
Sampo Life Group's total premium income increased by more than 30 per
cent to EUR 174 million (130). The growth came exclusively from
unit-linked policies, which incurred a premium income of EUR 127
million (75). The share of unit-linked premiums rose to 71 per cent
(58) of total premiums. Regular premiums amounted to EUR 69 million
(70) and their share of total premiums decreased to 39 per cent (54).
The determined efforts to improve the sales performance in
unit-linked insurance bore fruit already in the first quarter of
2006, as Sampo Life's market share of unit-linked insurance in
Finland increased to 24.3 per cent (22.2). The overall market share
in Finland rose to 19.8 per cent (16.4).
Market shares increased also in all the Baltic countries due to the
extremely high premium growth. Premiums almost tripled to EUR 12
million (4). Sampo Life Group's share was 32 per cent (15) of the
Latvian market, 28 per cent (13) of the Estonian market and 7 per
cent (7) of the Lithuanian market. Sampo Group's Scandinavian life
operations are in a start-up phase and If Liv's premium income was
EUR 0.6 million.
Other
The operations of Sampo plc (the holding company) and Primasoft are
reported in this segment. Sampo plc's main function is to own and
control the subsidiaries engaged in insurance, banking and investment
services. Primasoft provides IT services for various companies in
Sampo Group.
Results 1-3/2006 1-3/2005 Change
EUR m
Total operating income 9 14 -5
Total operating expenses -28 -25 -3
Profit (loss) before taxes -19 -12 -7
The segment's loss before taxes amounted to EUR 19 million (-12). In
connection to the legal proceedings against the former management and
owners of Interbank Ltd concerning credit and collateral arrangements
between Interbank Ltd and Savings Bank of South-Western Finland at
the District Court of Salo, Sampo plc was ordered, as the successor
of Interbank Ltd's liabilities, to indemnify Arsenal-SSP Oy a total
of almost EUR 13 million, including interest on arrears. All parties
have appealed against the decision. The interest arrears weakened the
net interest income by EUR 7 million.
Sampo plc's balance sheet total was EUR 4.1 billion. Of this amount,
holdings in banking and investment services companies accounted for
EUR 0.8 billion and holdings in insurance companies for EUR 2.4
billion. In addition to short-term operational financing, liabilities
include two debt instruments - a subordinated note and a senior note
with face values of EUR 600 million and EUR 300 million respectively.
At current market rates Sampo plc is liable for interest payments on
the above instruments of approximately EUR 10 million per quarter.
Primasoft has a negligible impact on the profit or loss of the Other
segment.
Outlook for the rest of 2006
Sampo Group's result for 2006 is expected to remain good, because of
high operating profitability in all its business areas.
Rapid growth in Finnish consumer, mortgage and Baltic lending volumes
is foreseen to continue. However, Sampo Bank Group no longer aims to
significantly outpace market growth. Instead the bank focuses on
servicing its existing client base in their various financial needs.
Credit quality remains firm and operating profitability will improve
further. The RoE target for banking and investment services is 20 per
cent.
If, Sampo Group's P&C insurance operation, is once again well on
track to achieve its combined ratio target of better than 95 per
cent, despite a long winter and marginal increase in price
competition. If continues to focus on realising efficiency and
underwriting gains from its pan-Nordic structure. The RoE target for
P&C insurance operations is 17.5 per cent.
Sampo Life Group's profitability is expected to remain good in the
coming quarters. Marked-to-market results are highly dependent on
capital market development. The renewed focus on unit-linked
insurance is already reflected in the first quarter 2006 sales and
premiums. The trend is anticipated to continue. The RoE target for
life insurance operations is 17.5 per cent.
Sampo plc, the parent company, is included in the Other segment,
which reports a loss of approximately EUR 12 million per quarter,
mainly because of interest payments on the financing associated with
the If acquisition in 2004.
The most significant risk for the outlook is a severe adverse
development in the capital markets with falling equity prices and
sharply rising interest rates.
SAMPO PLC
Board of Directors
For more information, please contact:
Peter Johansson, CFO, tel. +358 10 516 0010
Jarmo Salonen, Head of Investor Relations, tel. +358 10 516 0030
Hannu Vuola, Head of Group Communications, tel. +358 10 516 0040
Sampo will arrange an English-language telephone conference for
investors and analysts on the first quarter results at 4 p.m. Please
call +44 (0) 20 7162 0025 (UK/Europe) or +1 334 323 6201 (North
America). Password: SAMPO.
The conference can also be followed from a direct transmission on the
Internet at www.sampo.com/ir. A recorded version will later be
available at the same address.
Sampo Life has today published the 2005 Embedded Value Report, which
is available at www.sampo.com/ir.
Sampo will publish the second quarter 2006 interim report on 10
August 2006.
DISTRIBUTION:
The Helsinki Stock Exchange
The principal media
www.sampo.com
Financial Supervisory Authority
GROUP FINANCIAL REVIEW
FINANCIAL HIGHLIGHTS 1-3/2006 1-3/2005 1-12/2005
GROUP
Revenue EURm 1,836 1,583 6,843
Profit before taxes EURm 339 230 1,295
% of revenue % 18.5 14.5 18.9
Return on equity (at fair value) % 26.8 23.3 28.4
Return on assets (at fair value) % 4.2 3.4 4.4
Equity/assets ratio % 10.1 9.1 10.1
RoEC % 35.6 26.7 30.2
Group solvency �) EURm 2,360 1,736 2,124
Group solvency ratio % 203.8 182.3 196.1
Average number of staff 11,499 11,736 11,730
BANKING AND INVESTMENT SERVICES
Revenue EURm 322 251 1,105
Net interest income EURm 101 96 394
Profit before taxes EURm 91 62 316
% of revenue % 28.3 24.5 28.6
Cost to income ratio % 55.2 64.5 57.3
Return on equity (at fair value) % 25.8 18.2 23.1
Average number of staff 4,282 4,110 4,201
PROPERTY & CASUALTY INSURANCE
Revenue EURm 1,059 1,049 4,398
Premiums written before reinsurers'
share EURm 1,504 1,419 3,962
Premiums earned EURm 920 906 3,709
Profit before taxes EURm 133 117 800
% of revenue % 12.5 11.2 18.2
Return on equity (at current value) % 14.8 15.8 24.1
Risk ratio �) % 70.4 70.0 66.2
Cost ratio �) % 23.8 24.9 24.3
Loss ratio �) % 78.2 78.1 74.1
Loss ratio before unwinding of
discount �) % 76.8 76.6 72.7
Expense ratio �) % 17.5 18.3 17.8
Combined ratio % 95.7 96.4 91.9
Combined ratio before unwinding of
discount % 94.3 94.9 90.5
Average number of staff 6,421 6,650 6,592
LIFE INSURANCE
Revenue EURm 424 256 1,240
Premiums written before reinsurers'
share EURm 178 132 655
Profit before taxes EURm 128 62 234
% of revenue % 30.3 24.3 18.8
Return on equity (at current value) % 54.2 48.3 39.0
Expense ratio % 114.5 108.3 93.4
Average number of staff 356 368 370
OTHER BUSINESS
Profit before taxes EURm -19 -12 -49
Average number of staff 440 608 567
PER SHARE KEY FIGURES
Earnings per share EUR 0.44 0.30 1.68
Earnings per share, incl. change in
fair value reserve EUR 0.52 0.37 1.97
Diluted earnings per share �) EUR 0.43 0.29 1.65
Capital and reserves per share EUR 8.15 6.42 7.65
Net asset value per share EUR 8.17 6.46 7.67
Adjusted share price, high EUR 17.99 11.20 14.95
Adjusted share price, low EUR 14.73 9.83 9.83
Market capitalisation EURm 9,645 6,337 8,312
�) Group solvency is calculated according to the consolidation method
defined in Chapter 3 of the Act on the Supervision of Financial and
Insurance Conglomerates, which entered into force on 1 January 2005.
Solvency ratio is defined as the ratio of own funds to the sum of
minimum requirements calculated under sectoral
rules.
�) Key figures for P&C Insurance are based on activity based costs
and cannot, therefore, be calculated directly from the consolidated
income statement. The result analysis of P&C insurance is presented
in note 20.
In calculating the per share key figures the number of shares used at
the balance sheet date was 564,700,515, the average number of shares
during the period 564,700,515 and the diluted average number of
shares 578,999,337.
�) The dilution effect has been calculated as if all the remaining
subscription rights (4,762,510/the option programme of 2000 at the
end of March, 2006) would have been realised. One subscription right
entitles to subscribe 5 shares.
In calculating the key figures the tax corresponding to the result
for the accounting period has been taken into account. The valuation
differences of investment property and held-to-maturity debt
securities have been taken into account in return on assets, return
on equity, equity/assets ratio and net asset value per share.
Additionally, the change in fair value reserve has been taken into
account in return on assets and return on equity. A deferred tax
liabilities has been deducted from valuation
differences.
The key figures for Banking and Investment Services and other
business have been calculated according to standard 3.1 of the
Financial Supervision. The key figures for the insurance business
have been calculated according to the decree of the Ministry of
Finance and the specifying instruction 12/002/2005 of the Insurance
Supervisory Authority.
GROUP QUARTERLY INCOME STATEMENT
1-3/ 10-12/ 7-9/ 4-6/ 1-3/
EURm 2006 2005 2005 2005 2005
Net interest income 72 85 75 77 73
Net income from financial
transactions 19 17 24 12 18
Net fee and commission income 60 50 57 51 45
Impairment losses on loans and
receivables 2 -4 -1 3 4
Insurance premiums 1,094 1,161 1,058 1,104 1,035
Net income from investments 367 203 320 356 204
Other operating income 13 40 11 10 11
Total operating income 1,626 1,551 1,545 1,613 1,391
Claims incurred -791 -710 -765 -736 -803
Change in liabilities for
insurance and investment contracts -135 -186 -70 -125 -9
Staff costs -171 -201 -161 -171 -172
Other operating expenses -190 -166 -175 -178 -176
Total operating expenses -1,287 -1,263 -1,171 -1,210 -1,161
Profit before taxes from
continuing operations 339 287 374 403 230
Profit before taxes from
discontinued operations - 1 0 -1 -1
Profit before taxes 339 288 374 403 230
Taxes -81 -63 -102 -110 -58
Profit for the period 258 225 273 293 172
Attributable to
Equity holders of parent company 248 222 270 288 169
Minority interest 9 3 3 5 3
CONSOLIDATED INCOME STATEMENT
1-3/ 1-3/ 1-12/
EURm Note 2006 2005 Change 2005
Net interest income 1 72 73 -2 310
Net income from financial
transactions 2 19 18 1 71
Net fee and commission income 3 60 45 15 203
Impairment losses on loans and
receivables 4 2 4 -2 1
Insurance premiums 5 1,094 1,035 58 4,358
Net income from investments 6 367 204 162 1,084
Other operating income 13 11 2 72
Total operating income 1,626 1,391 235 6,100
Claims incurred -791 -803 12 -3,014
Change in liabilities for insurance
and investment contracts -135 -9 -125 -390
Staff costs 7 -171 -172 1 -706
Other operating expenses -190 -177 -14 -695
Total operating expenses -1,287 -1,161 -126 -4,805
Profit before taxes from continuing
operations 339 230 109 1,295
Profit before taxes from
discontinued operations - -1 1 -
Profit before taxes 339 230 109 1,295
Taxes -81 -58 -24 -332
Profit for the period 258 172 86 963
Attributable to
Equity holders of parent company 248 169 949
Minority interest 9 3 14
Earning per share (eur)
Basic 0.44 0.30 1.68
Diluted 0.43 0.29 1.65
CONSOLIDATED BALANCE SHEET
EURm Note 3/2006 12/2005 3/2005
Assets
Cash and balances at central banks 1,808 1,665 1,443
Financial assets at fair value
through p/l 8, 9 2,644 2,537 2,655
Loans and receivables 10 19,673 18,918 16,532
Investments 11 16,055 15,312 14,503
Investments related to unit-linked
insurance 12 1,450 1,262 979
Reinsurers' share of insurance
liabilities 612 558 800
Intangible assets 13 838 843 938
Property, plant and equipment 134 135 244
Other assets 2,417 1,581 2,078
Tax assets 175 173 175
Total assets 45,806 42,985 40,347
Liabilities
Financial liabilities at fair value
through p/l 8, 9 568 649 621
Amounts owed to credit institutions
and customers 14 12,204 12,260 11,663
Debt securities in issue 15 10,384 9,647 7,824
Liabilities for insurance and
investment contracts 16 13,197 12,623 12,812
Liabilities for unit-linked
insurance and investment contracts 17 1,447 1,262 976
Other liabilities 2,792 1,650 2,405
Tax liabilities 592 545 395
Total liabilities 41,183 38,637 36,695
Equity
Share capital 96 96 95
Reserves 1,858 1,814 1,660
Retained earnings 2,648 2,412 1,876
Equity attributable to parent
company's equityholders 4,603 4,322 3,631
Minority interest 21 26 21
Total equity 4,623 4,348 3,652
Total equity and liabilities 45,806 42,985 40,347
STATEMENT OF
CHANGES IN EQUITY
Share Fair
Share premium Legal value Retained Minority
EURm capital account reserve reserve earnings Total interest Total
Equity at 1 Jan.
2005 95 1,019 370 233 1,723 3,440 26 3,465
Cash flow hedges:
- recognised in
equity during the
financial year 2 2 2
- recognised in
p/l -4 -4 -4
Financial assets
available-for-sale
- change in fair
value 90 90 90
- recognised in
p/l -50 -50 -50
Exchange rate
translation
difference -16 -16 -16
Profit for the
financial year 169 169 3 172
Total income and
expenses
recognised for the
period 38 153 191 3 194
Dividends -8 -8
Equity at 31 March
2005 95 1,019 370 271 1,876 3,631 21 3,652
Equity at 1 Jan.
2006 96 1,048 370 396 2,412 4,322 26 4,348
Cash flow hedges:
- recognised in
equity during the
financial year 0 0 0
- recognised in
p/l -1 -1 -1
Financial assets
available-for-sale
- change in fair
value 117 117 117
- recognised in
p/l -72 -72 -72
Exchange rate
translation
difference -12 -12 -12
Profit for the
financial year 248 248 9 258
Total income and
expenses
recognised for the
period 44 236 280 9 290
Subscription for
shares with
options 0 0 0 0
Dividends -15 -15
Equity at 31 March
2006 96 1,048 370 440 2,648 4,603 21 4,623
CASH FLOW STATEMENT
1-3/2006 1-3/2005 1-12/2005
Cash and cash equivalent at the beginning
of the period 1,787 1,254 1,254
Cash flows from/used in operating
activities -600 435 -1,147
Cash flows from/used in investing
activities -7 -103 75
Cash flows from/used in financing
activities 764 -19 1,605
Cash and cash equivalent at the end of
the period 1,943 1,566 1,787
The cash flow statement reports cash flows during the period
classified by operating, investing and financing activities. Cash
flows are reported by using the indirect method. Cash flows from
operating activities derive primarily from the principal
revenue-producing activities. Cash flows from investments in
subsidiaries and associated undertakings and those from investments
in intangible assets and property, plant and equipment are presented
in investing activities. Financing activities include cash flows
resulting from changes in equity and borrowings in order to conduct
the business. Cash and cash equivalents consist of cash at bank and
in hand, balances with central banks, loans and advances to credit
institutions repayable on demand and short-term deposits (under 3
months).
NOTES
ACCOUNTING POLICIES
Sampo Group's consolidated financial statements are prepared in
accordance with the International Financial Reporting Standards
(IFRS) adopted by the EU. The interim financial statements are
presented in accordance with IAS 34 Interim Financial
Reporting.
In preparing the interim financial statements, the same accounting
policies and methods of computation are applied as in the financial
statements for 2005. The financial statements for 2005 are available
on Sampo's website at the address
www.sampo.com/ir.
CONSOLIDATED
INCOME
STATEMENT BY
SEGMENT FOR
THREE MONTHS
ENDED 31
MARCH 2006
Banking
and P&C Life
EURm investment insurance insurance Other Elimina-tion Group
Net interest
income 86 -17 2 72
Net income
from
financial
transactions 17 2 19
Net fee and
commission
income 65 0 -4 60
Impairment
losses on
loans and
receivables 0 2 2
Insurance
premiums 920 174 1,094
Net income
from
investments 28 83 247 7 2 367
Other
operating
income 8 5 0 16 -15 13
Total
operating
income 203 1,008 421 9 -16 1,626
Claims
incurred -648 -143 -791
Change in
liabilities
for
insurance
and
investment
contracts -135 -135
Staff costs -53 -103 -6 -10 1 -171
Other
operating
expenses -59 -124 -9 -19 21 -190
Total
operating
expenses -112 -875 -293 -28 22 -1,287
net income
between the
segments 6 3 2 -16
Profit
before taxes 91 133 128 -19 6 339
Taxes -81
Profit for
the period 258
Attributable
to
Equity
holders of
parent
company 248
Minority
interest 9
CONSOLIDATED
INCOME
STATEMENT BY
SEGMENT FOR
THREE MONTHS
ENDED 31
MARCH 2005
Banking
and P&C Life
EURm investment insurance insurance Other Elimina-tion Group
Net interest
income 82 -11 2 73
Net income
from
financial
transactions 17 1 18
Net fee and
commission
income 51 0 -5 45
Impairment
losses on
loans and
receivables 4 4
Insurance
premiums 906 130 1,035
Net income
from
investments 5 74 124 4 -3 204
Other
operating
income 7 6 0 21 -22 11
Total
operating
income 166 985 254 14 -28 1,391
Claims
incurred -634 -169 -803
Change in
liabilities
for
insurance
and
investment
contracts -9 -9
Staff costs -49 -106 -6 -12 2 -172
Other
operating
expenses -54 -127 -8 -13 26 -177
Total
operating
expenses -104 -867 -192 -25 28 -1,161
net income
between the
segments 4 11 5 -20
Profit
before taxes
from
continuing
operations 62 117 62 -12 - 230
Profit
before taxes
from
discontinued
operations 0 0 -1
Profit
before taxes 62 117 62 -12 - 230
Taxes -58
Profit for
the period 172
Attributable
to
Equity
holders of
parent
company 169
Minority
interest 3
CONSOLIDATED
INCOME
STATEMENT BY
SEGMENT FOR
YEAR ENDED
31 DECEMBER
2005
Banking
and P&C Life
EURm investment insurance insurance Other Elimina-tion Group
Net interest
income 341 -39 8 310
Net income
from
financial
transactions 65 0 6 71
Net fee and
commission
income 221 -1 -17 203
Impairment
losses on
loans and
receivables 3 -2 1
Insurance
premiums 3,709 649 4,358
Net income
from
investments 46 460 586 15 -23 1,084
Other
operating
income 60 18 2 76 -84 72
Total
operating
income 736 4,187 1,238 49 -111 6,100
Claims
incurred -2,457 -557 -3,014
Change in
liabilities
for
insurance
and
investment
contracts -390 -390
Staff costs -200 -447 -20 -44 5 -706
Other
operating
expenses -220 -484 -37 -55 100 -695
Total
operating
expenses -420 -3,387 -1,004 -98 105 -4,805
net income
between the
segments 28 35 18 -81
Profit
before taxes
from
continuing
operations 316 800 234 -49 -6 1,295
Profit
before taxes
from
discontinued
operations 0 0 0
Profit
before taxes 316 800 234 -49 -6 1,295
Taxes -332
Profit for
the period 963
Attributable
to
Equity
holders of
parent
company 949
Minority
interest 14
CONSOLIDATED
BALANCE SHEET
BY SEGMENT AT
31 MARCH 2006
Banking
and P&C Life
EURm investment insurance insurance Other Elimina-tion Group
Assets
Cash and
balances at
central banks 1,262 545 152 -151 1,808
Financial
assets at
fair value
through p/l 2,531 91 28 3 -8 2,644
Loans and
receivables 19,672 20 -19 19,673
Investments 68 10,326 5,936 3,352 -3,627 16,055
Investments
related to
unit-linked
insurance 1,450 1,450
Reinsurers'
share of
insurance
liabilities 607 5 612
Intangible
assets 69 589 157 24 838
Property,
plant and
equipment 81 28 5 19 134
Other assets 632 1,635 133 90 -73 2,417
Tax assets 18 125 3 28 1 175
Total assets 24,332 13,945 7,870 3,536 -3,877 45,806
Liabilities
Financial
liabilities
at fair value
through p/l 454 87 26 3 -2 568
Amounts owed
to credit
institutions
and customers 12,280 99 -175 12,204
Debt
securities in
issue 9,369 442 100 949 -476 10,384
Liabilities for
insurance and investment
contracts 8,474 4,723 13,197
Liabilities
for
unit-linked
insurance and
investment
contracts 1,447 1,447
Other
liabilities 1,126 1,474 130 135 -73 2,792
Tax
liabilities 24 367 196 5 592
Total
liabilities 23,253 10,845 6,621 1,190 -726 41,183
Equity
Share capital 96
Reserves 1,858
Retained
earnings 2,648
Equity
attributable
to parent
company's
equityholders 4,603
Minority
interest 21
Total equity 4,623
Total equity
and
liabilities 45,806
CONSOLIDATED
BALANCE SHEET
BY SEGMENT AT
31 DECEMBER
2005
Banking
and P&C Life
EURm investment insurance insurance Other Elimina-tion Group
Assets
Cash and
balances at
central banks 1,290 366 211 -201 1,665
Financial
assets at
fair value
through p/l 2,409 87 46 3 -8 2,537
Loans and
receivables 18,911 62 -55 18,918
Investments 74 9,625 5,707 3,374 -3,468 15,312
Investments
related to
unit-linked
insurance 1,262 1,262
Reinsurers'
share of
insurance
liabilities 553 5 558
Intangible
assets 66 595 157 26 843
Property,
plant and
equipment 82 29 5 19 135
Other assets 344 1,104 92 108 -67 1,581
Tax assets 18 127 7 20 1 173
Total assets 23,194 12,484 7,493 3,611 -3,797 42,985
Liabilities
Financial
liabilities
at fair value
through p/l 464 149 36 649
Amounts owed
to credit
institutions
and customers 12,336 106 -182 12,260
Debt
securities in
issue 8,461 443 100 1,036 -393 9,647
Liabilities for
insurance and investment
contracts 7,885 4,738 12,623
Liabilities
for
unit-linked
insurance and
investment
contracts 1,262 1,262
Other
liabilities 892 654 70 101 -67 1,650
Tax
liabilities 21 339 180 5 545
Total
liabilities 22,175 9,470 6,386 1,248 -642 38,637
Equity
Share capital 96
Reserves 1,814
Retained
earnings 2,412
Equity
attributable
to parent
company's
equityholders 4,322
Minority
interest 26
Total equity 4,348
Total equity
and
liabilities 42,985
CONSOLIDATED
BALANCE SHEET
BY SEGMENT AT
31 MARCH 2005
Banking
and P&C Life
EURm investment insurance insurance Other Elimina-tion Group
Assets
Cash and
balances at
central banks 1,028 402 146 -133 1,443
Financial
assets at
fair value
through p/l 2,633 58 8 5 -48 2,655
Loans and
receivables 16,503 466 -436 16,532
Investments 68 9,113 5,388 3,535 -3,602 14,503
Investments
related to
unit-linked
insurance 979 0 979
Reinsurers'
share of
insurance
liabilities 784 16 0 800
Intangible
assets 139 621 156 23 938
Property,
plant and
equipment 168 32 20 24 0 244
Other assets 503 1,419 116 87 -47 2,078
Tax assets 20 141 1 13 0 175
Total assets 21,060 12,571 6,828 4,153 -4,265 40,347
Liabilities
Financial
liabilities
at fair value
through p/l 547 56 18 0 621
Amounts owed
to credit
institutions
and customers 11,916 313 -566 11,663
Debt
securities in
issue 6,625 295 100 1,145 -342 7,824
Liabilities for
insurance and investment
contracts 8,232 4,580 12,812
Liabilities
for
unit-linked
insurance and
investment
contracts 976 976
Other
liabilities 953 1,223 169 107 -47 2,405
Tax
liabilities 53 199 134 9 395
Total
liabilities 20,094 10,006 5,976 1,573 -954 36,695
Equity
Share capital 95
Reserves 1,660
Retained
earnings 1,876
Equity
attributable
to parent
company's
equityholders 3,631
Minority
interest 21
Total equity 3,652
Total equity
and
liabilities 40,347
OTHER NOTES
1 NET INTEREST INCOME
Banking and investment services
1-3/2006 1-3/2005 1-12/2005
Interest income
Loans and receivables 186 153 659
Other interest income 3 2 7
Total 189 155 666
Interest expenses
Amounts owed to credit institutions and
customers -44 -34 -145
Debt securities in issue -59 -38 -179
Other interest expenses 1 -1 -1
Total -102 -73 -325
Banking and investment services, total 86 82 341
Other business
Other business, total -17 -11 -39
Elimination items between segments 2 2 8
Group, total 72 73 310
Net interest income from banking and
investment services, total
In net interest income 86 82 341
In net income from financial
transactions 15 14 55
In net income from investments 0 0 -2
Total 101 96 394
Interest income and expenses from P&C insurance and life insurance
business are presented in Net income from investments.
2 NET INCOME FROM FINANCIAL TRANSACTIONS
Banking and investment services
1-3/2006 1-3/2005 1-12/2005
Trading assets/liabilities
Debt securities and interest rate
derivatives 14 4 29
Equity securities and equity derivatives 1 1 2
Other 0 0 1
Financial assets designated as at fair
value through p/l
Debt securities -1 10 19
Foreign exchange dealing 4 4 14
Net income from hedge accounting
Change in fair value of hedging
derivative instruments -30 -15 -20
Change in fair value of hedged items 30 13 19
Total 0 -1 -1
Banking and investment service, total 17 17 65
Other business
Other business, total 2 1 0
Elimination items between segments - - 6
Group, total 19 18 71
3 FEE AND COMMISSION INCOME AND EXPENSES
Banking and investment services
1-3/2006 1-3/2005 1-12/2005
Fee and commission income
Lending 10 9 39
Borrowing 5 5 20
Payment transactions 14 13 56
Asset management 34 23 101
Guarantees 4 3 13
Investment banking 8 5 25
Other 10 7 30
Total 84 64 283
Fee and commission expenses -20 -14 -63
Banking and investment services, total 65 51 221
Other business
Other business, total 0 0 -1
Elimination items between segments -4 -5 -17
Group, total 60 45 203
4 IMPAIRMENT LOSSES ON LOANS AND
RECEIVABLES
Banking and investment services
1-3/2006 1-3/2005 1-12/2005
Loans and receivables
Impairment losses -7 -4 -36
Reversal of impairment losses and
recoveries of loan receivables previously
written off 7 8 39
Total 0 4 3
Banking and investment services, total 0 4 3
Other business
Other business, total 2 - -2
Group, total 2 4 1
5 INSURANCE PREMIUMS
P&C insurance
1-3/2006 1-3/2005 1-12/2005
Premiums from insurance contracts
Premiums written, direct insurance 1,466 1,392 3,886
Premiums written, assumed reinsurance 38 28 76
Premiums written, gross 1,504 1,419 3,962
Ceded reinsurance premiums written -128 -77 -244
Premiums written, net 1,376 1,343 3,717
Change in unearned premium provision -528 -457 -23
Recoverable from reinsurers 73 20 15
Insurance premiums earned, net 920 906 3,709
Life insurance
Premiums from insurance contracts
Premiums from contracts with
discretionary participation feature 48 54 377
Premiums from unit-linked contracts 102 74 284
Premiums from other contracts 1 0 3
Insurance contracts, total 151 128 664
Assumed reinsurance 0 1 -13
Premiums from investment contracts
Premiums from contracts with
discretionary participation feature 2 0 1
Premiums from unit-linked contracts 25 1 4
Investment contracts, total 27 2 4
Reinsurers' shares -4 -1 -5
Premiums written, total 174 130 649
Single and regular premiums from direct
insurance
Regular premiums, insurance contracts 69 70 370
Single premiums, insurance contracts 82 57 293
Single premiums, investment contracts 27 2 4
Total 178 129 668
Group, total 1,094 1,035 4,358
6 NET INCOME FROM INVESTMENTS
Banking and investment services
1-3/2006 1-3/2005 1-12/2005
Financial assets
Investment securities held-to-maturity 0 0 1
Financial asset available-for-sale
Debt securities 0 0 4
Equity securities 24 4 25
Other assets 3 1 15
Banking and investment services, total 28 5 46
P&C insurance
1-3/2006 1-3/2005 1-12/2005
Financial assets
Trading assets and derivative financial
instrument 4 18 -7
Financial assets designated as at fair
value through p/l
Debt securities -18 56 258
Equity securities 115 20 280
Loand and receivables 4 1 16
Financial liabilities
Debt securities in issue
Interest expenses from subordinated
debt securities -7 -5 -23
Other financial expenses -1 -4 -10
Other assets 1 2 7
Effect of discounting annuities -13 -14 -52
Fee and commission expenses -3 -2 -9
P&C insurance, total 83 74 460
Life insurance
1-3/2006 1-3/2005 1-12/2005
Financial assets
Trading assets and derivative financial
instrument 6 -20 -56
Financial assets designated as at fair
value through p/l
Debt securities 1 1 4
Equity securities 0 0 1
Investments related to unit-linked
contracts
Equity securities 77 26 163
Investment securities held-to-maturity
Debt securities 0 2 3
Loans and receivables 0 0 4
Financial asset available-for-sale
Debt securities 24 51 201
Equity securities 143 64 258
Financial liabilities
Debt securities in issue
Interest expenses from subordinated
debt securities -2 -1 -6
Other -1 0 -3
Other assets 3 5 30
Fee and commission expenses -4 -3 -13
Life insurance, total 247 124 586
Other business
1-3/2006 1-3/2005 1-12/2005
Financial assets
Financial assets available-for-sale 6 3 11
Other assets 1 1 4
Other business, total 7 4 15
Elimination items between segments 2 -3 -23
Group, total 367 204 1,084
7 STAFF COSTS
Banking and investment services
1-3/2006 1-3/2005 1-12/2005
Staff costs
Wages and salaries -43 -39 -160
Pension costs -5 -6 -23
Other social security costs -4 -5 -18
Banking and investment services, total -53 -49 -200
P&C insurance
1-3/2006 1-3/2005 1-12/2005
Staff costs
Wages and salaries -77 -74 -303
Pension costs -13 -16 -76
Other social security costs -13 -16 -68
P&C insurance, total -103 -106 -447
Life insurance
1-3/2006 1-3/2005 1-12/2005
Staff costs
Wages and salaries -5 -5 -17
Pension costs -1 -1 -2
Other social security costs -1 0 -1
Life insurance, total -6 -6 -20
Other business
1-3/2006 1-3/2005 1-12/2005
Staff costs
Wages and salaries -8 -9 -36
Pension costs -1 -2 -5
Other social security costs -1 -1 -2
Other business, total -10 -12 -44
Elimination items between segments 1 2 5
Group, total -171 -172 -706
8 FINANCIAL ASSETS
AND LIABILITIES AT
FAIR VALUE THROUGH
P/L 3/2006 3/2006 12/2005 12/2005 3/2005 3/2005
Assets Liabilities Assets Liabilities Assets Liabilities
Banking and
investment services
Assets/liabilities
held for trading 1,372 - 1,255 - 771 160
Derivative financial
instruments (note 9) 471 454 506 464 395 387
Financial assets
designated as at
fair value through
p/l 688 - 648 - 1,467 -
Banking and
investment services,
total 2,531 454 2,409 464 2,633 547
P&C insurance
Derivative financial
instruments (note 9) 91 87 87 149 58 56
Life insurance
Derivative financial
instruments (note 9) 28 26 46 36 8 18
Other business
Assets/liabilities
held for trading - - 1 - 1 0
Derivative financial
instruments (note 9) 3 3 2 - 5 -
Other business,
total 3 3 3 - 5 0
Elimination items
between segments -8 -2 -8 - -48
Group, total 2,644 568 2,537 649 2,655 621
9 DERIVATIVE
FINANCIAL
INSTRUMENTS
Banking and
investment services
3/2006 12/2005
Fair
Fair value Fair value value Fair value
Contract/ Contract/
Derivatives held for notional notional
trading amount Assets Liabilities amount Assets Liabilities
Interest rate
derivatives 42,186 135 143 40,131 174 190
Foreign exchange
derivatives 8,855 48 52 8,484 98 115
Equity derivatives 9 3 4 8 3 3
Commodity
derivatives 588 65 64 382 21 20
Total derivative
assets/(liabilities)
held for trading 51,638 252 263 49,004 295 327
Derivatives held for
hedging
Derivatives
designated as fair
value hedges 4,253 219 191 3,984 210 136
Derivatives
designated as cash
flow hedges 80 0 - 170 1 -
Total derivative
assets/(liabilities)
held for hedging 4,332 219 191 4,154 211 136
Total derivative
assets/(liabilities) 55,970 471 454 53,157 506 464
3/2005
Fair value Fair value
Contract/
Derivatives held for trading notional amount Assets Liabilities
Interest rate derivatives 37,597 110 125
Foreign exchange derivatives 9,404 93 97
Equity derivatives 0 - -
Commodity derivatives 158 4 4
Total derivative
assets/(liabilities) held for
trading 47,159 207 226
Derivatives held for hedging
Derivatives designated as fair
value hedges 2,320 183 161
Derivatives designated as cash
flow hedges 328 5 -
Total derivative
assets/(liabilities) held for
hedging 2,648 188 161
Total derivative
assets/(liabilities) 49,807 395 387
P&C insurance
3/2006 12/2005
Fair Fair
value Fair value value Fair value
Contract/ Contract/
notional notional
amount Assets Liabilities amount Assets Liabilities
Derivatives held for
trading
Interest rate
derivatives 1,127 4 2 0 0 5
Foreign exchange
derivatives 5 76 85 4,562 80 144
Equity derivatives 13 10 - 4 6 -
Total derivative
assets/(liabilities)
held for trading 1,146 91 87 4,566 87 149
3/2005
Fair value Fair value
Contract/
notional amount Assets Liabilities
Derivatives held for trading
Interest rate derivatives 0 1 0
Foreign exchange derivatives 3,557 56 55
Equity derivatives 0 1 1
Total derivative
assets/(liabilities) held for
trading 3,557 58 56
Life insurance
3/2006 12/2005
Fair Fair
value Fair value value Fair value
Contract/ Contract/
notional notional
amount Assets Liabilities amount Assets Liabilities
Derivatives held for
trading
Interest rate
derivatives 2,623 15 15 3,986 36 25
Foreign exchange
derivatives 1,110 10 5 1,057 7 8
Equity derivatives 16 3 5 20 2 3
Commodity
derivatives 42 0 1 31 1 0
Total derivative
assets/(liabilities) 3,790 28 26 5,094 46 36
3/2005
Fair value Fair value
Contract/
notional amount Assets Liabilities
Derivatives held for trading
Interest rate derivatives 1,132 2 6
Foreign exchange derivatives 2,207 4 9
Equity derivatives 48 2 0
Commodity derivatives 50 - 1
Total derivative
assets/(liabilities) held for
trading 3,438 7 16
Derivatives held for hedging
Derivatives designated as fair
value hedges 123 0 1
Total derivative
assets/(liabilities) held for
hedging 123 0 1
Total derivative
assets/(liabilities) 3,561 8 18
Other business
3/2006 12/2005
Fair Fair
value Fair value value Fair value
Contract/ Contract/
notional notional
amount Assets Liabilities amount Assets Liabilities
Derivatives held for
trading
Foreign exchange
derivatives 100 2 - - - -
Derivatives held for
hedging
Derivatives
designated as fair
value hedges 631 1 3 633 2 -
Total derivative
assets/(liabilities) 731 3 3 633 2 -
3/2005
Fair value Fair value
Contract/
notional amount Assets Liabilities
Derivatives held for hedging
Derivatives designated as fair
value hedges 640 5 0
Total derivative
assets/(liabilities) 640 5 0
10 LOANS AND RECEIVABLES
Banking and investment services
3/2006 12/2005 3/2005
Loans and advances to credit institutions
By type of loan
- - Deposits 194 119 419
- - Reverse repos - - 227
- - Other loans 259 310 238
Total 453 428 884
Loans and advances to customers
By type of loan
Home loans 8,538 8,158 6,549
Consumer loans 1,120 1,103 962
Other consumer loans 1,146 1,111 909
Finance lease assets 790 766 607
Money market loans 15 15 15
Other commercial loans 7,626 7,348 6,593
Impairment losses -16 -18 -16
Total 19,219 18,483 15,619
Banking and investment services, total 19,672 18,911 16,503
Other business
Other business loans and receivables, total 20 62 466
Elimination items between segments -19 -55 -436
Group, total 19,673 18,918 16,532
11 INVESTMENTS
3/2006 12/2005 3/2005
Banking and investment services
Investments held-to-maturity
Debt securities 42 46 36
Financial assets available-for-sale
Debt securities 0 - 2
Equity securities 13 14 14
Investment property
Carrying amount 1 1 1
Fair value 1 1 1
Investments in associates 12 14 15
Banking and investment services, total 68 74 68
P&C insurance
Financial assets designated as at fair value
through p/l
Debt securities 9,315 8,509 7,967
Equity securities 943 1,026 1,039
Loans and receivables
Deposits with ceding undertakings 2 3 3
Investment property
Carrying amount 62 83 102
Fair value 63 83 102
Investments in associates 4 4 3
P&C insurance, total 10,326 9,625 9,113
Life insurance
Financial assets designated as at fair value
through p/l
Debt securities 79 49 11
Equity securities 5 5 3
Investments held-to-maturity
Debt securities 16 16 113
Loans and receivables
Deposits 3 3 4
Deposits with ceding undertakings 2 2 18
Financial assets available-for-sale
Debt securities 3,483 3,230 3,000
Equity securities 2,215 2,270 1,981
Investment property
Carrying amount 131 130 256
Fair value 145 146 287
Investments in associates 1 1 1
Life insurance, total 5,936 5,707 5,388
Other business
Financial assets available-for-sale
Debt securities 131 132 99
Equity securities 53 51 55
Investment property
Carrying amount 20 21 51
Fair value 21 21 49
Investments in associates 0 21 19
Investments in subsidiaries 3,149 3,149 3,311
Other business, total 3,352 3,374 3,535
Elimination items between segments -3,627 -3,468 -3,602
Group, total 16,055 15,312 14,503
12 INVESTMENTS RELATED TO UNIT-LINKED INSURANCE
Life insurance
3/2006 12/2005 3/2005
Financial assets as at fair value through p/l
Debt securities 12 12 2
Equity securities 1,439 1,251 977
Financial assets as at fair value through p/l
total 1,450 1,262 979
Other 0 0 -
Life insurance, total 1,450 1,262 979
13 INTANGIBLE ASSETS
Banking and investment services 3/2006 12/2005 3/2005
Goodwill 5 5 70
Other intangible assets 64 61 69
Total 69 66 139
P&C insurance 3/2006 12/2005 3/2005
Goodwill 531 533 550
Customer relations 36 38 45
Other intangible assets 22 23 26
Total 589 595 621
Life insurance 3/2006 12/2005 3/2005
Goodwill 153 153 153
Other intangible assets 4 4 3
Total 157 157 156
Other business 3/2006 12/2005 3/2005
Other intangible assets 24 26 23
Group, total 838 843 938
14 AMOUNTS OWED TO CREDIT INSTITUTIONS AND
CUSTOMERS
Banking and investment services 3/2006 12/2005 3/2005
Amounts owed to credit institutions
Deposits from credit insitutions 642 664 434
Other liabilities owed to credit institutions 280 202 432
Total 922 867 866
Amounts owed to customers
Deposits
Demand deposits 2,692 2,856 2,486
Savings accounts 1,114 1,075 1,047
Current accounts 4,250 3,716 3,822
Money market deposits 791 1,122 1,529
Other time deposits 2,482 2,673 2,142
Total deposits 11,329 11,442 11,025
Other liabilities
Other liabilities 29 28 25
Total amounts owed to customers 11,358 11,470 11,050
Banking and investment services, total 12,280 12,336 11,916
Other business
3/2006 12/2005 3/2005
Amounts owed to credit institutions
Other liabilities 6 6 207
Amounts owed to customers
Other liabilities 92 99 106
Other business, total 99 106 313
Elimination items between segments -175 -182 -566
Group, total 12,204 12,260 11,663
15 DEBT SECURITIES IN ISSUE
Banking and investment services
3/2006 12/2005 3/2005
Debt securities in issue
Certificates of deposit 3,154 3,384 3,009
Bonds and notes 5,381 4,238 2,897
Total 8,535 7,621 5,906
Subordinated debt securities
Subordinated loans 348 352 223
Debentures 399 399 416
Perpetuals 87 89 81
Total 834 840 720
Banking and investment services, total 9,369 8,461 6,625
P&C insurance
3/2006 12/2005 3/2005
Subordinated debt securities
Subordinated loans 442 443 295
P&C insurance, total 442 443 295
Life insurance
3/2006 12/2005 3/2005
Subordinated debt securities
Subordinated loans 100 100 100
Life insurance, total 100 100 100
Other business
3/2006 12/2005 3/2005
Debt securities in issue
Certificates of deposit 101 149 247
Bonds and notes 254 290 299
Total 354 438 546
Subordinated debt securities
Debentures 594 597 599
Other business, total 949 1,036 1,145
Elimination items between segments -476 -393 -342
Group, total 10,384 9,647 7,824
16 LIABILITIES FROM INSURANCE AND INVESTMENT
CONTRACTS
P&C insurance
Liabilities from insurance contracts 3/2006 12/2005 3/2005
Insurance contracts
Provision for unearned premiums 2,157 1,628 2,114
Provision for claims outstanding 6,317 6,257 6,119
Total 8,474 7,885 8,232
Recoverable from insurers
Provision for unearned premiums 120 49 114
Provision for claims outstanding 487 504 670
Total 607 553 784
Life insurance
3/2006 12/2005 3/2005
Insurance contracts
Liabilities for contracts with DPF
Provision for unearned premiums 3,055 3,108 2,995
Provision for claims outstanding 1,497 1,463 1,371
Liabilities for contracts without DPF
Provision for unearned premiums 16 15 17
Provision for claims outstanding 3 3 15
Total 4,571 4,589 4,398
Assumed reinsurance
Provision for unearned premiums 4 3 21
Provision for claims outstanding 2 2 3
Total 6 6 24
Insurance contracts, total
Provision for unearned premiums 3,074 3,127 3,033
Provision for claims outstanding 1,502 1,468 1,389
Total 4,576 4,595 4,422
Investment contracts
Liabilities for contracts with DPF
Provision for unearned premiums 146 144 158
Investment contracts, total 146 144 158
Liabilities for insurance and investment
contracts, total
Provision for unearned premiums 3,220 3,270 3,190
Provision for claims outstanding 1,502 1,468 1,389
Life insurance, total 4,723 4,738 4,580
Recoverable from reinsurers
Provision for unearned premiums 0 0 3
Provision for claims outstanding 5 5 13
Total 5 5 16
Investment contracts do not include a provision for claims
outstanding.
Liability adequacy test does not give rise to supplementary
claims.
Exemption allowed in the standard 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 13,197 12,623 12,812
17 LIABILITIES FROM UNIT-LINKED INSURANCE AND
INVESTMENT CONTRACTS
Life insurance 3/2006 12/2005 3/2005
Unit-linked insurance contracts 1,405 1,246 962
Unit-linked investment contracts 42 16 14
Total 1,447 1,262 976
18 CONTINGENT LIABILITIES AND COMMITMENTS
Banking and investment services 3/2006 12/2005 3/2005
Off-balance sheet items
Guarantees 2,705 2,811 2,618
Undrawn loans, overdraft facilities and other
commitments to lend 4,020 4,062 3,772
- - original maturity less than one year 870 642 992
- - original maturity more than one year 3,150 3,420 2,780
Other irrevocable commitments 56 17 15
Total 6,780 6,890 6,405
Assets
pledged as
collateral
for
liabilities
or
contingent
liabilities
3/2006 3/2006 12/2005 12/2005 3/2005 3/2005
Assets Liabilities/ Liabilities/ Liabilities/
pledged as Assets commit- Assets commit- Assets commit-
collateral pledged ments pledged ments pledged ments
Financial
assets at
fair value
through p/l
- - Trading
securities 1,586 1,040 1,593 1,038 1,253 1,007
Loans and
receivables
- - Security
deposits 1,140 1,700 94 779 112 799
Non-cancellable operating leases 3/2006 12/2005 3/2005
Minimum lease payments under non-cancellable
operating leases
not later than one year 21 21 20
later than one year and not later than five
years 48 53 51
later than five years 41 43 48
Total 109 118 119
P&C insurance
3/2006 12/2005 3/2005
Off-balance sheet items
Guarantees 48 62 25
Other irrevocable commitments 28 31 40
Total 76 93 65
Other
Assets covered by policyholders' beneficiary
rights 303 303 295
Assets
pledged as
collateral
for
liabilities
or
contingent
liabilities
3/2006 3/2006 12/2005 12/2005 3/2005 3/2005
Assets Liabilities/ Liabilities/ Liabilities/
pledged as Assets commit- Assets commit- Assets commit-
collateral pledged ments pledged ments pledged ments
Cash at
balances at
central
banks 24 11 42 0 50 12
Investments
- -
Investment
securities 260 116 267 129 202 92
Non-cancellable operating leases 3/2006 12/2005 3/2005
Minimum lease payments under non-cancellable
operating leases
not later than one year 30 26 27
later than one year and not later than five
years 83 72 73
later than five years 81 39 20
Total 194 137 119
Life insurance
3/2006 12/2005 3/2005
Off-balance sheet items
Fund commitments 178 184 179
Assets
pledged as
collateral
for
liabilities
or
contingent
liabilities
3/2006 3/2006 12/2005 12/2005 3/2005 3/2005
Assets Liabilities/ Liabilities/ Liabilities/
pledged as Assets commit- Assets commit- Assets commit-
collateral pledged ments pledged ments pledged ments
Investments
- -
Investment
securities 5 0 4 0 9 3
Non-cancellable operating leases 3/2006 12/2005 3/2005
Minimum lease payments under
non-cancellable operating leases
not later than one year 2 2 -
later than one year and not later than
five years 6 6 -
later than five years 7 7 -
Total 14 15 -
19 MUTUAL FUND CAPITAL
3/2006 12/2005 3/2005
Equity funds 3,922 3,637 2,844
Balanced funds 1,213 1,020 752
Money market funds 2,834 2,316 2,533
Bond funds 1,513 1,407 860
Absolute return funds 586 472 484
Risk funds 105 32 22
Total 10,173 8,885 7,495
20 P&C INSURANCE'S PROFIT AND LOSS ACCOUNT
1-3/2006 1-3/2005 1-12/2005
Profit and loss account
Premiums earned 920 906 3,709
Claims incurred -706 -694 -2,697
Operating expenses -161 -165 -661
Other technical income and expenses
(+collective guarantee item) -1 - -2
Allocated investment return transferred
from the non-technical account 41 49 166
Technical result 93 95 516
Investment result 96 87 510
Allocated investment return transferred
to the technical account -55 -63 -217
Other income and expenses -2 -2 -9
Operating result 133 117 800
21 SAMPO PLC'S INCOME STATEMENT AND
BALANCE SHEET ACCORDING TO FINNISH
ACCOUNTING POLICY (FAS)
INCOME STATEMENT
1-3/ 1-3/ 1-12/
2006 2005 Change 2005
Net interest income -15 -10 -5 -34
Divident income 630 497 133 540
Net income from transaction of securities
and foreign exchange dealing -1 1 -2 0
Other income 11 3 8 10
Administrative expenses -7 -6 -1 -26
Depreciation and impairment on property,
plant and
equipment and intangible assets -2 -2 0 -7
Other operating expenses -5 -2 -4 -22
Operating profit 610 482 129 460
Income taxes 7 4 4 14
Profit for the period 617 485 132 474
BALANCE SHEET 3/2006 12/2005 3/2005
ASSETS
Loans and advances to credit institutions 10 47 420
Loans and advances to customers - - 14
Debt securities 131 132 100
Shares and participations 53 51 55
Shares and participations in associates 1 18 18
Shares and participations in Group
companies 3,157 3,157 3,277
Intangible assets 24 26 22
Property, plant and equipment
Properties and shares in property
companies 29 31 81
Other 4 5 5
Other assets 737 119 90
TOTAL ASSETS 4,147 3,586 4,083
LIABILITIES
Liabilities
Liabilities to credit institutions - - 200
Liabilities to customers 92 99 106
Debt securities in issue 354 438 546
Other liabilities 135 98 102
Subordinated liabilities 594 597 599
1,176 1,233 1,553
Equity
Share capital 96 96 95
Share premius account 1,048 1,048 1,019
Other undistributable reserves 366 366 366
Distributable reserves
Fair value reserve -10 -9 -11
Other reserves 273 273 273
Retained earnings 668 194 303
Treasury shares -88 -88 -
Profit for the year 617 474 485
2,971 2,354 2,530
TOTAL LIABILITIES 4,147 3,586 4,083
Off-balance sheet items
Commitments
Other than sale and option to resell
transactions 11 12 15
- ---END OF MESSAGE---
Copyright � Hugin ASA 2006. All rights reserved.
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