TIDMSAMPO 
 
 
   SAMPO PLC           HALF-YEAR FINANCIAL REPORT 
5 August 2020 at 9:35 am 
 
   Sampo Group's Results for January -- June 2020 
 
   Sampo Group's profit before taxes for the first half of 2020 was EUR 569 
million (981). The Group's insurance technical performance continued to 
excel and a large part of the decrease in the market values of 
investment assets in March -- April 2020 was recovered. The total 
comprehensive income, taking changes in the market value of assets into 
account, amounted to EUR 34 million (995) for the first half of 2020 and 
EUR 987 million (434) for the second quarter of 2020. 
 
 
   -- Earnings per share was EUR 0.81 (1.37) and mark-to-market earnings per 
      share was EUR 0.02 (1.68). Return on equity for the Group amounted to 0.2 
      per cent (15.4) for the first half of 2020. Meanwhile, the net asset 
      value per share on 30 June 2020 was EUR 16.99 (20.71). 
 
   -- Sampo confirmed on 29 July 2020 after market rumours started to circulate 
      that it is, together with Rand Merchant Investment Holdings Limited (RMI), 
      in discussions with Hastings Group Holdings Plc regarding a possible cash 
      offer to acquire the issued and to be issued share capital of Hastings 
      not already owned or controlled by Sampo and RMI. Today Sampo and RMI 
      have announced a recommended cash offer, through a newly-formed jointly 
      owned company, to acquire Hastings. 
 
   -- If segment's profit before taxes was EUR 383 million (440). The insurance 
      technical result increased to EUR 398 million (334) and the combined 
      ratio for January -- June 2020 amounted to 82.1 per cent (84.7). Premiums 
      grew by 5 per cent on a fixed currency basis. Furthermore, all business 
      areas and all markets recorded growth. 
 
   -- Topdanmark segment's profit before taxes decreased to EUR 38 million 
      (146). Meanwhile, the combined ratio amounted to 84.2 per cent (79.0). 
 
   -- Sampo's share of Nordea's net profit for January -- June 2020 amounted to 
      EUR 132 million (222). With regard to segment reporting, the share of 
      Nordea's profit is included in the segment entitled 'Holding'. 
 
   -- Profit before taxes for the Mandatum segment amounted to EUR 39 million 
      (137). Meanwhile, premiums decreased to EUR 498 million (529). 
 
 
 
 
                                              Change,                      Change, 
Key figures               1-6/2020  1-6/2019        %  4-6/2020  4-6/2019        % 
------------------------  --------  --------  -------  --------  --------  ------- 
EURm 
------------------------  --------  --------  -------  --------  --------  ------- 
Profit before taxes            569       981      -42       407       506      -19 
------------------------  --------  --------  -------  --------  --------  ------- 
 If                            383       440      -13       254       242        5 
------------------------  --------  --------  -------  --------  --------  ------- 
 Topdanmark                     38       146      -74        52        53       -3 
------------------------  --------  --------  -------  --------  --------  ------- 
 Associates                    137       226      -39        51       143      -64 
------------------------  --------  --------  -------  --------  --------  ------- 
 Mandatum                       39       137      -71        55        65      -15 
------------------------  --------  --------  -------  --------  --------  ------- 
 Holding (excl. 
  associates)                  -29        31        -        -5         2        - 
------------------------  --------  --------  -------  --------  --------  ------- 
Profit for the period          469       826      -45       330       428      -23 
------------------------  --------  --------  -------  --------  --------  ------- 
                                               Change                       Change 
------------------------  --------  --------  -------  --------  --------  ------- 
Earnings per share, EUR       0.81      1.37    -0.56      0.55      0.73    -0.18 
------------------------  --------  --------  -------  --------  --------  ------- 
EPS (based on OCI) EUR        0.02      1.68    -1.66      1.73      0.74     0.99 
------------------------  --------  --------  -------  --------  --------  ------- 
NAV per share, EUR *)        16.99     20.71    -3.72         -         -        - 
------------------------  --------  --------  -------  --------  --------  ------- 
Average number of staff 
 (FTE)                      10,322     9,734      588         -         -        - 
------------------------  --------  --------  -------  --------  --------  ------- 
Group solvency ratio, 
 % *)                          187       167       20         -         -        - 
------------------------  --------  --------  -------  --------  --------  ------- 
RoE, %                         0.2      15.4    -15.2         -         -        - 
------------------------  --------  --------  -------  --------  --------  ------- 
 
 
   *) comparison figure from 31.12.2019 
 
   The figures in this report have not been audited. Income statement items 
are compared on a year-on-year basis and comparison figures for balance 
sheet items are from 31 December 2019, unless otherwise stated. 
 
   Sampo follows the disclosure procedure enabled by the Finnish Financial 
Supervisory Authority and hereby publishes its Interim Statement 
attached as a PDF file to this stock exchange release. The Interim 
Statement is also available at 
https://www.globenewswire.com/Tracker?data=T6zf9vlueHPz00XhXCTvd58orvnF5UK8dj1We_Y8k4KYAxjldXwmrNumdh21IiLkVMz_3nd2JR5F2sef1GKI2AdeIGYyQtoJEwz8w5hiu6Q= 
www.sampo.com/result. 
 
 
 
 
 
 
 
 
EXCHANGE RATES USED 
 IN REPORTING                1-6/2020  1-3/2020  1-12/2019  1-9/2019  1-6/2019 
---------------------------  --------  --------  ---------  --------  -------- 
EURSEK 
---------------------------  --------  --------  ---------  --------  -------- 
Income statement (average)    10.6621   10.6649    10.5853   10.5679   10.5181 
---------------------------  --------  --------  ---------  --------  -------- 
Balance sheet (at end 
 of period)                   10.4948   11.0613    10.4468   10.6958   10.5633 
---------------------------  --------  --------  ---------  --------  -------- 
DKKSEK 
---------------------------  --------  --------  ---------  --------  -------- 
Income statement (average)     1.4280    1.4279     1.4183    1.4158    1.4090 
---------------------------  --------  --------  ---------  --------  -------- 
Balance sheet (at end 
 of period)                    1.4813    1.4813     1.3982    1.4326    1.4153 
---------------------------  --------  --------  ---------  --------  -------- 
NOKSEK 
---------------------------  --------  --------  ---------  --------  -------- 
Income statement (average)     0.9932    1.0195     1.0749    1.0816    1.0810 
---------------------------  --------  --------  ---------  --------  -------- 
Balance sheet (at end 
 of period)                    0.9618    0.9610     1.0591    1.0809    1.0897 
---------------------------  --------  --------  ---------  --------  -------- 
EURDKK 
---------------------------  --------  --------  ---------  --------  -------- 
Income statement (average)     7.4648    7.4714     7.4661    7.4644    7.4651 
---------------------------  --------  --------  ---------  --------  -------- 
Balance sheet (at end 
 of period)                    7.4526    7.4674     7.4715    7.4662    7.4636 
---------------------------  --------  --------  ---------  --------  -------- 
 
 
   GROUP CEO'S COMMENT 
 
   The second quarter was a strong quarter for Sampo Group, despite the 
uncertainty related to COVID-19. Firstly, we continued to excel in P&C 
insurance underwriting, the backbone of our profit generation, and 
secondly, the investment markets reversed the negative experience from 
March and April, as the equity markets surged and bond spreads narrowed 
during May and June. 
 
   Business has been stable during the summer months, and we have also been 
able to focus on project Dorset. The code name refers to the offer we 
have published today, together with RMI, to acquire all shares in the UK 
motor insurance company Hastings Group Holdings Plc. 
 
   The offer is of course a step in the strategy to allocate more capital 
to P&C insurance, and Hastings is a unique company which we have 
followed for some time. It operates in the large UK motor insurance 
market and, more importantly, in the fast-growing segment of modern 
digital distribution which continues to take market share from the 
traditional operators. Hastings results have been impressive since the 
IPO in 2015. 
 
   The UK is certainly an interesting insurance market. It is not only very 
large, but also very advanced in digital terms. I am excited about the 
opportunities to develop Sampo with these digital capabilities, at the 
same time as our Nordic expertise in other areas like retention 
techniques and car manufacturer collaboration can support Hasting's 
future development. 
 
   The fact that we do this together with RMI, a long-term shareholder in 
Hastings, reduces the acquisition risks significantly. RMI is a South 
African financial services investment holding company and has been the 
largest shareholder in Hastings since 2017. 
 
   Coming back to our existing businesses, If P&C posted a technical result 
that improved further from the already excellent level. Stable 
operations where premium increases corresponded well to claims 
inflation. Topdanmark also recovered from the difficult first quarter of 
this year. 
 
   Nordea's progress in the second quarter was encouraging. The bank 
remains committed to meeting the financial targets 2022, and leading 
indicators on cost and customer satisfaction developed strongly. It has 
maintained the strong financial position it had when entering the 
COVID-19 crisis and with its high equity tier 1 ratio and ample credit 
loss buffers, the bank is well prepared to meet the challenges ahead. 
 
   Of all our business areas, Mandatum Life is the most exposed to the 
volatility in the financial markets. At the same time Mandatum is the 
one to benefit most from the upturn in the equity markets as witnessed 
in the second quarter of this year when the other comprehensive income 
rose to EUR 234 million. The company's Solvency II ratio continues to be 
solid at 201 per cent. 
 
   Torbjörn Magnusson 
 
   Group CEO and President 
 
   SECOND QUARTER 2020 IN BRIEF 
 
   Sampo Group's profit before taxes for the second quarter of 2020 was EUR 
407 million (506). Earnings per share was EUR 0.55 (0.73) and 
mark-to-market earnings per share EUR 1.73 (0.74). 
 
   Net asset value per share increased EUR 1.63 during the second quarter 
of 2020 and was EUR 16.99. The net asset value increased mainly because 
of equity market recovery, and particularly, the increase in Nordea's 
share price. 
 
   If's combined ratio for the second quarter of 2020 amounted to 80.5 per 
cent (83.0). Profit before taxes amounted to EUR 254 million (242). 
 
   Topdanmark's combined ratio for the second quarter 2020 amounted to 79.7 
per cent (79.8) and profit before taxes to EUR 52 million (53). 
 
   Sampo's share of Nordea's second quarter 2020 net profit was EUR 48 
million (140). 
 
   Profit before taxes for Mandatum amounted to EUR 55 million (65). 
Premiums written decreased to EUR 210 million (291). 
 
   EFFECTS OF COVID-19 ON SAMPO GROUP 
 
   Personnel and customer relations 
 
   Sampo Group has followed the recommendations from authorities in its 
respective countries both during the lock-down in the acute phase of the 
crisis as well as now that societies are gradually re-opening in The 
Nordic and Baltic countries. 
 
   In Sampo Group's biggest subsidiary If P&C, 6,000 of more than 7,000 
employees have been working remotely during the crisis and the remainder 
have been working in offices where social distancing measures have been 
observed. Mandatum Life also has followed the government advice and 
continues with remote work. Only a few percent of employees are working 
at the office premises. Also, in Topdanmark 95 per cent of employees 
have been working remotely. 
 
   When the COVID-19 pandemic reached the Nordic countries in mid-March 
2020 priority was given to continuity and continued service and support 
to customers in the best way in the changed working conditions. 
 
   Operational efficiency and availability have been good and early 
indications show sick leave to have declined during the crisis. 
 
   Physical customer visits to our offices have been stopped or are subject 
to extra precautions. Business travel and conferences have also been 
halted. During this period subsidiaries have been able to offer a normal 
service level and customer satisfaction has remained on a high level. 
There has been no disruption in the customer service. 
 
   Insurance business 
 
   If's claims cost for the first six months of 2020 was negatively 
impacted from travel insurance policies primarily following imposed 
government travel restrictions due to COVID-19. At the end of the 
reporting period, the total number of reported claims amounted to just 
over 50 000, corresponding to a gross claims cost of approximately SEK 
400 million (EUR 38 million) mostly in BA Private and Norway. The net 
claims cost is expected to be significantly reduced by a reinsurance 
cover with a net retention for this event of SEK 100 million (EUR 9 
million). 
 
   The lock down activities in the Nordic countries had a positive effect 
on claims cost especially at the beginning of the second quarter of 
2020. The largest factor being reduced traffic on the roads that 
resulted in an extraordinary and temporary decrease in motor claims. 
Towards the end of the period, as governments started to reopen 
societies, claims frequency also returned to a more normal level. At the 
same time an increase in repair costs is likely because of lack of 
material, delays in transportation of material or shortage of personnel 
following implemented government travel restrictions. 
 
   During the second quarter of 2020 there was a clear negative impact on 
premium volume because of the COVID-19 situation. This was a result of 
many variables including fewer new cars sold, decommissioning of 
vehicles and lower insurable sums and goods. 
 
   Mandatum Life's claims cost in January-June 2020 was in line with the 
previous year. Premium income was 6 per cent, EUR 32 million, below the 
previous year in January-June, but in April-June both claims paid and 
premium income were around EUR 80 million below the previous year. 
 
   In its Half-year Report for 2020 published on 17 July 2020 Topdanmark 
described the impact COVID-19 had on its operations. The report is 
available at 
https://www.globenewswire.com/Tracker?data=T6zf9vlueHPz00XhXCTvd7dt6RPLXFpuJGSq-7p3P6dKdjWoFisqYEG42uf2oahbwBFqlppqOQ_9O3_itU_UtmESo31W6T8aVKyFigmyqiU= 
www.topdanmark.com. 
 
   Investment activities 
 
   The swift monetary responses by central banks and governments have 
helped to stabilize the financial markets after the initial shock 
reaction in March 2020. Leading equity indices have rebounded strongly 
and credit spreads on bonds have narrowed since then. 
 
   Companies in Sampo Group have enjoyed good returns in the second quarter 
of 2020. However, the mark-to-market losses in the investment portfolio 
suffered during March -- April 2020 had not been fully recovered by the 
end of the quarter. 
 
   Solvency positions 
 
   The solvency positions of Sampo Group and its subsidiaries remained 
robust in the second quarter of 2020. More information is available in 
the section Solvency. 
 
   Impacts on future operating models 
 
   As Sampo Group's personnel gradually returns to the offices, the Group 
follows the recommendations of authorities in individual countries. This 
means that operations are returning to normal step by step and with 
somewhat varying speed in each country. Social distancing measures are 
still in effect also during the re-opening phase and the principle is to 
offer employees the flexibility to continue working from home for the 
foreseeable future, while re-opening the offices for those employees who 
wish to return. 
 
   The COVID-19 pandemic will have lasting effects on how operations are 
organized in the Group. The crisis has accelerated the digitalization of 
work life. Remote work has proven itself both effective and to be an 
important tool for handling unexpected crises. Going forward, increased 
flexibility will be expected by employees and recruitment candidates. 
 
   Group companies have started several "Post Corona" initiatives relating 
to the use of remote work in the future and the required changes in HR 
and employment relations. 
 
   BUSINESS AREAS 
 
   If 
 
   Profit before taxes for January -- June 2020 for the If segment was EUR 
383 million (440). The total comprehensive income for the period after 
tax was EUR 106 million (462). The combined ratio for the period was 
82.1 per cent (84.7) and the risk ratio was 61.4 per cent (63.0). 
 
   Net releases from the technical reserves relating to the prior year 
claims were EUR 103 million (108) in January-June. The technical result 
increased to EUR 398 million (334). The insurance margin (the technical 
result in relation to the net premiums earned) increased to 18.3 per 
cent (15.7). 
 
   Large claims were EUR 47 million worse than expected in the first half 
of 2020. The Norwegian market was particularly impacted by large loss 
development in the first half. 
 
   The Swedish discount rate used to discount the annuity reserves was 
-0.81 per cent and had a negative effect of EUR 2 million on the profit 
in the first half of 2020. 
 
   Gross written premiums increased to EUR 2,846 million (2,772) in January 
-- June 2020. Adjusted for currency, premium growth was 5.2 per cent 
compared to the corresponding period a year ago. Furthermore, growth was 
positive in all business and market areas -- it was highest in Denmark 
where it accelerated to 12.0 per cent. Gross written premiums grew by 
6.6 per cent in Norway, 4.6 per cent in Sweden, and 2.0 per cent in 
Finland. In BA Industrial, premium growth amounted to 9.4 per cent, in 
BA Commercial it was 6.6 per cent, in BA Baltic it reached 2.1 per cent, 
and in BA Private 3.2 per cent. 
 
   The risk ratio 59.3 (61.2) for the second quarter improved compared to 
last year. This was driven by an underlying improvement from implemented 
actions over a longer period as well as an extraordinary benign 
frequency situation in the second quarter due to the COVID-19 which 
resulted in a significant reduction in traffic and lower activity 
especially at the beginning of the quarter. Towards the end of the 
period claims returned to more normal levels. The positive effect on the 
net risk ratio in the second quarter was approximately 4 percentage 
points. 
 
   The cost ratio was 20.8 per cent (21.7) and the expense ratio was 15.2 
per cent (16.2). 
 
   On 30 June 2020, the total investment assets of If amounted to EUR 10.8 
billion (10.8). 
 
   If's solvency position is described in the section entitled 'Solvency'. 
 
   Topdanmark 
 
   At the end of June 2020, Sampo plc held 41,997,070 Topdanmark shares, 
which corresponds to 46.7 per cent of all shares and 48.1 per cent of 
related voting rights in the company. The market value of the holding 
was EUR 1,544 million on 30 June 2020. 
 
   As a consequence of the COVID-19 situation, only DKK 8.5 of the 
previously announced dividend of DKK 17 per share was paid following the 
AGM on 2 April 2020. Consequently, Sampo received EUR 48 million in 
dividends from Topdanmark on 7 April. 
 
   Topdanmark's Board of Directors has decided to postpone payment of the 
remainder of the dividend for 2019 until the AGM on 25 March 2021. It is 
still the intention to distribute in part or in full the remaining DKK 
8.5 of the previously announced dividend. 
 
   Topdanmark's profit before taxes for January--June 2020 amounted to EUR 
38 million (146). During the second quarter of 2020, Topdanmark's profit 
before taxes was almost unchanged despite a lower life result. 
 
   The combined ratio amounted to 84.2 per cent (79.0). The expense ratio 
was almost unchanged at 16.7 per cent. 
 
   The following text is based on Topdanmark's Half-year report 2020 report, 
which was published on 17 July 2020. 
 
   During the first half of 2020, Topdanmark's premiums increased 2.7 per 
cent in non-life insurance and 20.7 per cent in life insurance. In the 
private segment, premiums were negatively impacted by the termination of 
the distribution agreement with Danske Bank at the end of the first half 
of 2019. From 2021, it is expected that the Nordea agreement will 
compensate fully for the terminated distribution agreement with Danske 
Bank in terms of premiums. 
 
   During the first half of 2020, Topdanmark's technical result decreased 
due to lower run-off, and by a higher level of weather-related claims. 
During the second quarter, however, the technical result increased. 
 
   In the first half of 2020, weather-related claims represented a 1.0 
percentage point deterioration of the claims trend. Thereby, the level 
of weather-related claims was EUR 1 million below the assumed normal 
level. 
 
   The level of large claims represented a 0.1 percentage point 
deterioration of the claims trend in the first half of 2020. 
 
   Topdanmark's solvency position is described in the section entitled 
'Solvency'. 
 
   Further information on Topdanmark A/S and its January -- June 2020 
results is available at 
https://www.globenewswire.com/Tracker?data=T6zf9vlueHPz00XhXCTvdzFwWjNSkAEZE-VUAUrLnp_6P-m4lLC11OTX9cHl3bzvfD7hKtXlT7L39McFUCCRxbGGTJurkOCIzPfb7GdsgHg= 
www.topdanmark.com. 
 
   NORDEA (associated company) 
 
   On 30 June 2020, Sampo plc held 804,922,858 Nordea shares, which 
corresponds to a holding of 19.87 per cent. The average price paid per 
share amounted to EUR 6.46 and the book value in the Group accounts was 
EUR 8.42 per share. The closing price as at 30 June 2020 was EUR 6.15. 
 
   The AGM on 28 May 2020 mandated the Board of Directors to decide on a 
dividend payment of a maximum of EUR 0.40 per share for the financial 
year 2019 to be distributed in one or several instalments. The Board of 
Directors intends to follow the recommendation adopted by the ECB and 
refrain from deciding on a dividend payment based on the authorization 
before 1 October 2020. 
 
   The following text is based on Nordea's Half-Year Financial Report 2020 
published on 17 July 2020. 
 
   Nordea reported a solid result with revenues largely unchanged. Net 
interest income increased by 2 per cent, supported by volume growth, 
especially in mortgages, in all countries. Operating profit was EUR 306 
million - significantly impacted by loan loss provisions. 
 
   Nordea estimates total net loan losses for the full year 2020 to be 
below EUR 1 billion. 
 
   In the quarter underlying net loan losses were EUR 310 million. On top 
of that Nordea has made additional management judgement allowances of 
EUR 388 million leading to total Q2 net loan losses of EUR 698 million. 
Nordea now has a management judgement buffer of EUR 650 million in place 
to cover for future loan losses, IFRS 9 model improvements and the 
European Central Bank's new guidance on non-performing loans. 
 
   Nordea's capital position remains very strong with a common equity tier 
1 ratio of 15.8 per cent, which is 5.6 percentage points above the 
requirement. 
 
   Sampo's share of Nordea's profit before taxes for January--June 2020 
amounted to EUR 132 million (222). 
 
   Mandatum Life 
 
   Mandatum segment's profit before taxes for January - June 2020 amounted 
to EUR 39 million (137). The total comprehensive income for the period 
after tax reflecting the changes in market values of assets decreased to 
EUR -90 million (190). Return on equity was -13.3 per cent (30.1). 
 
   Mandatum Life Group's premium income amounted to EUR 498 million (529) 
for the first half of 2020 Unit-linked premiums were EUR 439 million, 
i.e. 88 per cent of total premiums. 
 
   Net investment income, excluding income on unit-linked contracts, 
decreased to EUR 30 million (203) due to the market turmoil in the first 
quarter of 2020. In April - June, net investment income, excluding 
unit-linked contracts, was EUR 53 million. 
 
   Net income from unit-linked contracts decreased to EUR -312 million 
(523). In the second quarter of 2020, net income from unit-linked 
contracts amounted to EUR 572 million. In January - June of 2020 fair 
value reserve decreased to EUR 316 million (438). 
 
   Mandatum Life Group's total technical reserves amounted to EUR 11.5 
billion (12.0). Unit-linked reserves decreased to EUR 7.8 billion (8.1) 
at the end of June 2020. The amount corresponds to 67 percent (68) of 
total technical reserves. Since the end of March 2020, unit-linked 
reserves increased by almost EUR 600 million. 
 
   At the end of June 2020, with-profit reserves decreased to EUR 3.7 
billion (3.9). Reserves related to the higher guarantees of 4.5 and 3.5 
per cent decreased by EUR 149 million to EUR 2.0 billion in January - 
June 2020. 
 
   Mandatum Life has overall supplemented its technical reserves with a 
total of EUR 184 million (230) due to low level of interest rates. The 
figure does not take into account the reserves relating to the 
segregated fund. The discount rate used for the years 2020 and 2021 is 
0.25 per cent. The rate used for 2022 is 1.25 per cent. 
 
   The discount rate for segregated liabilities is 0.0 per cent and the 
discount rate reserve of segregated liabilities amounted to EUR 250 
(263) at the end of June 2020. 
 
   At the end of June 2020, Mandatum Life's investment assets, excluding 
the assets of EUR 7.8 billion (8.1) covering unit-linked liabilities, 
amounted to EUR 5.3 billion (5.7) at market values. 
 
   The expense result in the first half of 2020 amounted to EUR 10 million 
(7). Risk result was EUR 11 million (10). 
 
   Mandatum Life's solvency position is described in the section Solvency. 
 
   Holding 
 
   Profit before taxes for January -- June 2020 for the Holding segment 
amounted to EUR 109 million (258). Sampo's share of profits for the 
associated companies Nordea and NDX Intressenter for January -- June 
2020 amounted to EUR 137 million (226), of which Nordea's share was EUR 
132 million (222) and NDX Intressenter's share was EUR 5 million (4). 
 
   The Holding segment's profit before taxes, excluding the associates for 
January -- June 2020, was EUR -29 million (31). 
 
   Changes in market values of derivative instruments and currency exchange 
rates can cause volatility in the net investment income and finance cost 
lines. 
 
   Sampo plc's holding in Nordea was booked in the consolidated balance 
sheet at EUR 6.8 billion, i.e. EUR 8.42 per share. The market value of 
the holding was EUR 4.9 billion, i.e. EUR 6.15 per share, on 30 June 
2020. 
 
   OTHER DEVELOPMENTS 
 
   Events after the end of the reporting period 
 
   Sampo confirmed on 29 July 2020 after market rumours started to 
circulate that it is, together with a South-African financial services 
investment holding company Rand Merchant Investment Holdings Limited 
(RMI), in discussions with the UK P&C insurance company Hastings Group 
Holdings Plc (Hastings) regarding a possible cash offer to acquire the 
issued and to be issued share capital of Hastings not already owned or 
controlled by Sampo and RMI. 
 
   Following the announcement on 29 July 2020, Sampo and RMI have today 
announced a recommended cash offer, through a newly-formed jointly owned 
company, to acquire all issued and to be issued shares Hastings not 
already owned or controlled by Sampo and RMI. 
 
   The cash offer price is GBp 250 for each Hastings share, valuing 
Hastings' entire issued and to be issued share capital at approximately 
GBP 1.66 billion or approximately EUR 1.84 billion. 
 
   The cash offer represents a premium of approximately 37.5 per cent to 
volume-weighted average price of GBp 182 per Hastings share for the 
three-month period ended on 4 August 2020, the last business day before 
of the date of the offer announcement. 
 
   Following the completion of the offer, Sampo and RMI will own and 
control 70 per cent and 30 per cent of the shares and votes in the 
jointly owned company, respectively. 
 
   The size of Sampo's investment, based on its 70 per cent stake, would be 
GBP 1.16 billion or EUR 1.29 billion valued at the offer price. Sampo 
expects to fund its part of the acquisition with approximately EUR 1 
billion of newly issued hybrid Tier 2 capital with the residual coming 
from existing cash resources. 
 
   Sampo estimates that the acquisition of Hastings will have a positive 
impact on its earnings per share in the mid-single digits. The 
acquisition is not expected to impact on Sampo's dividend policy in the 
short term but is expected to enhance the dividend potential in the long 
term. 
 
   Meanwhile it is expected that Sampo's solvency position will remain 
robust at approximately 175 per cent (post planned issuance of 
approximately EUR 1 billion of hybrid Tier 2 capital). Sampo does not 
believe that the transaction will lead to a change in the Group's credit 
ratings subject to the planned financing structure. 
 
   The independent directors of Hastings intend to recommend unanimously 
that Hastings' shareholders approve the offer and have entered into 
irrevocable undertakings to do so in an amount of 0.33 per cent of the 
company's issued share capital. 
 
   The transaction is subject to Hastings' shareholder approval and 
regulatory approvals and is expected to be closed by the end of 2020. 
 
   More information on the offer at 
https://www.globenewswire.com/Tracker?data=T6zf9vlueHPz00XhXCTvd4jj6r7OHJv_wIsDrb-n2c0wqY_pEEXtZ36EpuR9_VY3cTVEtbv0C-983Iz3-XFT-hmgp6WShUsjjUFpeKo7Mi8= 
www.sampo.com/offer and 
https://www.globenewswire.com/Tracker?data=T6zf9vlueHPz00XhXCTvd58YRXzuoVSEJAHI9fEkhQwaoTGkvICkTtEMxunlIDA0NhZ3v4lvWOvd6xEWOczkebgZ1gW6aX6guPz5rbU4pPQ= 
www.hastingsplc.com. 
 
   Annual General Meeting 
 
   The Board of Directors of Sampo plc decided on 25 March 2020 to postpone 
the Annual General Meeting that was scheduled to be held on 23 April 
2020. The postponement was made in order to ensure the safety and 
well-being of Sampo's shareholders, Sampo's employees, and other 
stakeholders, in light of the COVID-19 outbreak and the related health 
threat. 
 
   On 6 May 2020 Sampo Board decided to cancel the previous dividend 
proposal of EUR 2.20 per share and announce a new proposal of EUR 1.50 
per share. The Annual General Meeting, held on 2 June 2020, decided to 
distribute the proposed dividend of EUR 1.50 per share for 2019. The 
record date for dividend payment was 4 June 2020 and the dividend was 
paid on 11 June 2020. The Annual General Meeting adopted the financial 
accounts for 2019 and discharged the Board of Directors and the CEO from 
liability for the financial year. 
 
   The Annual General Meeting elected eight members to the Board of 
Directors. The following members were re-elected to the Board: Christian 
Clausen, Fiona Clutterbuck, Jannica Fagerholm, Johanna Lamminen, Risto 
Murto, Antti Mäkinen and Björn Wahlroos. Georg Ehrnrooth was 
elected as a new member to the Board. The Members of the Board were 
elected for a term continuing until the close of the next Annual General 
Meeting. 
 
   At its organizational meeting, the Board elected Björn Wahlroos as 
Chair of the Board and Jannica Fagerholm as Vice Chair. Christian 
Clausen, Risto Murto, Antti Mäkinen and Björn Wahlroos (Chair) 
were elected to the Nomination and Remuneration Committee. Fiona 
Clutterbuck, Georg Ehrnrooth, Jannica Fagerholm (Chair) and Johanna 
Lamminen were elected to the Audit Committee. 
 
   All the proposed Board members have been determined to be independent of 
the company and its major shareholders under the rules of the Finnish 
Corporate Governance Code 2020. The curriculum vitaes of the Board 
Members are available at www.sampo.com/board. 
 
   The Annual General Meeting decided to pay the following fees to the 
members of the Board of Directors until the close of the 2021 Annual 
General Meeting: the Chair of the Board will be paid an annual fee of 
EUR 180,000 and other members of the Board will be paid EUR 93,000 each. 
Furthermore, the members of the Board and its Committees will be paid 
the following annual fees: the Vice Chair of the Board EUR 26,000, the 
Chair of the Audit Committee EUR 26,000 and the member of the Audit 
Committee EUR 6,000. A Board member shall in accordance with the 
resolution of the Annual General Meeting acquire Sampo plc's A shares at 
the price paid in public trading for 50 per cent of his/her annual fee 
excluding taxes and similar payments. 
 
   The Annual General Meeting accepted Sampo plc's Remuneration Policy for 
Governing Bodies. The resolution on the Remuneration Policy was 
advisory. 
 
   Ernst & Young Oy was elected as Auditor. The Auditor will be paid a fee 
determined by an invoice approved by Sampo. Kristina Sandin, APA, will 
act as the principally responsible auditor. 
 
   At the general meeting 320,359,477 shares (57.7 per cent of shares) and 
325,159,477 votes (58.0 per cent of all votes) were represented, 
including advance voting and a proxy representation. 
 
   The minutes of the Annual General Meeting are available for viewing at 
www.sampo.com/agm and at Sampo plc's head office at Fabianinkatu 27, 
Helsinki, Finland. 
 
   Shares and shareholders 
 
   The Annual General Meeting held on 2 June 2020 authorized the Board to 
repurchase a maximum of 50,000,000 Sampo A shares. The price paid for 
the shares repurchased under the authorization shall be based on the 
current market price of Sampo A shares on the securities market. The 
authorization will be valid until the close of the next Annual General 
Meeting, nevertheless not more than 18 months after AGM's decision. 
 
   During January -- June 2020 Sampo plc made no repurchases of its own 
shares and it has not purchased any shares after the end of the 
reporting period. Furthermore, Sampo plc and its subsidiaries did not 
hold any Sampo shares as at 30 June 2020. 
 
   Internal dividends 
 
   Topdanmark's Annual General Meeting on 2 April 2020 decided to pay 
one-half of the planned dividend and postpone the decision on the 
payment of the other half until autumn. Sampo received EUR 48 million on 
7 April in dividends from Topdanmark. On 17 July 2020 Topdanmark's Board 
of Directors decided to follow the recommendation by the Danish FSA and 
postpone the payment of the remainder of the dividend until the AGM on 
25 March 2021. 
 
   Mandatum Life decided not to pay the dividend of EUR 150 million planned 
for March 2020. 
 
   Nordea's AGM on 28 May 2020 mandated the Board of Directors to decide on 
a dividend payment for the financial year 2019. The Board of Directors 
intends to follow the recommendation adopted by the ECB and refrain from 
deciding on a dividend payment based on the authorization before 1 
October 2020. 
 
   If normally pays its dividend at the end of each year. The company had 
already paid a dividend of SEK 7.5 billion (EUR 710 million) in December 
2019. 
 
   Ratings 
 
   The relevant ratings for Sampo Group companies did not change in the 
first half of 2020. The ratings at the end of June 2020 are presented in 
the table below. 
 
 
 
 
Rated company                  Moody's          Standard & Poor's 
-----------------------------  ---------------  ------------------- 
                               Rating  Outlook   Rating   Outlook 
-----------------------------  ------  -------  --------  --------- 
                               A3      Stable   A 
  Sampo plc -- Issuer Credit                                Stable 
  Rating 
-----------------------------  ------  -------  --------  --------- 
If P&C Insurance Ltd --        A1      Stable   A+        Stable 
 Insurance Financial Strength 
 Rating 
-----------------------------  ------  -------  --------  --------- 
If P&C Insurance Holding       -       -        A         Stable 
 Ltd (publ) -- Issuer Credit 
 Rating 
-----------------------------  ------  -------  --------  --------- 
Mandatum Life Insurance        -       -        A+        Stable 
 Company Ltd -- Issuer Credit 
 Rating 
-----------------------------  ------  -------  --------  --------- 
 
 
   Group solvency 
 
   Sampo Group calculates its group solvency under the Solvency II rules. 
In this calculation Nordea is treated as an equity investment. According 
to the Solvency II directive, Sampo Group's solvency ratio amounted to 
187 per cent (167) at the end of June 2020. Had the year-end 2019 
solvency been calculated taking into account the revised dividend 
proposal, the adjusted solvency ratio would have been 174 per cent. 
 
   Positive development in the equity market, strong underwriting result 
and the narrowing of bond spreads increased Sampo Group's own funds. On 
the other hand, changes in the symmetric adjustment and the volatility 
adjustment increased SCR (Solvency Capital Requirement) and reduced the 
solvency level. The volatility adjustment changes also decreased Group's 
Own funds. The rise in Nordea's share price during the second quarter of 
2020 increased SCR, but had, in aggregate, a positive impact on the 
solvency by increasing the own funds even more. 
 
   Solvency position in the subsidiaries 
 
   The insurance subsidiaries apply Solvency II rules in their regulatory 
solvency calculations. The If Group companies use either partial 
internal models or the standard model for the calculation of their solo 
solvency position. Mandatum Life reports in accordance with the standard 
formula for Solvency II. Meanwhile, Topdanmark uses a partial internal 
model to report its stand-alone solvency position. 
 
   If Group has an A+ rating from S&P which will continue to require 
significantly more capital than the standard formula and therefore the 
use of the standard formula has no practical implications on If Group's 
capital position. On 30 June 2020, If Group's Solvency II capital 
requirement under the standard formula amounted to EUR 1,794 million 
(1,890) and own funds amounted to EUR 3,474 million (3,592). The 
solvency ratio amounted to 194 per cent (190). 
 
   The S&P single-A capital requirement for If Group amounted to EUR 2,939 
million (3,083) on 30 June 2020 and the capital base was EUR 3,121 
million (3,151). 
 
   Topdanmark calculates most of its non-life and health risks and their 
respective solvency capital requirement by applying a partial internal 
model approved by the DFSA. Other risks are calculated by the Solvency 
II SCR standard formula. Topdanmark's solvency ratio under the partial 
internal model was 197 per cent (177) at the end of June 2020. 
 
   Mandatum Life's solvency ratio after transitional measures amounted to 
201 per cent (176) on 30 June 2020. The comparison figure would have 
increased from 176 per cent to 194 per cent if the cancellation of the 
EUR 150 million dividend payment in March 2020 was taken into account. 
Own funds were EUR 2,127 million (2,117) and the Solvency Capital 
Requirement (SCR) was EUR 1,058 million (1,204). The strong investment 
returns and growth in unit-linked savings increased own funds. On the 
other hand, tightening volatility adjustment intensified the negative 
effect of the decreased interest rate level. SCR increased because of 
the higher equity risk exposure and the change in the symmetric 
adjustment factor. 
 
   Without transitional measures, own funds would have amounted to EUR 
1,781 million (1,756) and the solvency capital requirement would have 
amounted to EUR 1,070 million (1,234), leading to a solvency ratio of 
166 per cent (142). 
 
   Debt financing 
 
   On 30 June 2020, Sampo plc's debt financing amounted to EUR 3,659 
million (3,908) and interest bearing assets amounted to EUR 787 million 
(1,725). Interest bearing assets include bank accounts, fixed income 
instruments and EUR 351 million (359) of hybrid capital and subordinated 
debt instruments issued by the subsidiaries and associated companies. 
 
   Sampo plc's net debt amounted to EUR 2,797 million (2,183). The net debt 
calculation takes into account interest bearing assets and liabilities. 
Gross debt to Sampo plc's equity was 54 per cent (51) and financial 
leverage was 35 per cent (34). 
 
   On 28 May 2020 Sampo plc repaid SEK 3,000 million senior notes maturing 
on that date. 
 
   On 30 June 2020, financial liabilities in Sampo plc's balance sheet 
consisted of issued senior bonds and notes of EUR 3,109 million (3,414). 
In addition, Sampo plc has issued subordinated notes of EUR 495 million 
(494). Outstanding commercial papers amounted to EUR 50 million (0). The 
average interest, net of interest rate swaps, on Sampo plc's debt as of 
30 June 2020 was 1.3 per cent (1.3). 
 
   More information on Sampo Group's outstanding debt issues is available 
at: 
https://www.globenewswire.com/Tracker?data=T6zf9vlueHPz00XhXCTvd_zu7YDjoI7xWzQv_94RXWxKmlYe06noeArF32iYWXH1-eG7Yb8UMIRLiu-OAtzJkLsukWPkBeSdoV0kRMciGQPorATXnPisEZKoLRzJyja3 
www.sampo.com/debtfinancing. 
 
   OUTLOOK 
 
   Outlook for 2020 
 
   Sampo Group's insurance businesses are expected to report good insurance 
technical results for 2020. However, the investment results are at this 
point in time more uncertain than usual. The mark-to-market results for 
2020 are highly dependent on capital market developments, particularly 
in life insurance. 
 
   If P&C is expected to reach a combined ratio of 82 -- 85 per cent in 
2020. 
 
   With regard to Topdanmark, reference is made to the profit forecast 
model that the company publishes on a quarterly basis. 
 
   Nordea's contribution to the Group's profit is expected to be 
significant. 
 
   The major risks and uncertainties for the Group in the near-term 
 
   In its current day-to-day business activities Sampo Group is exposed to 
various risks and uncertainties, mainly through its separately managed 
major business units. 
 
   Major risks affecting the Group companies' profitability and its 
variation are market, credit, insurance and operational risks that are 
quantified independently by the major business units. At the group level, 
sources of risks are the same, although they are not directly additive 
due to the effects of diversification. 
 
   Uncertainties in the form of major unforeseen events may have an 
immediate impact on the Group's profitability. The identification of 
unforeseen events is easier than the estimation of their probabilities, 
timing, and potential outcomes. Currently, the COVID-19 pandemic is 
causing significant negative effects on the Nordic economies. The 
duration of the measures taken to contain the virus and their effects on 
economic and capital market development are uncertain. There are also a 
number of widely identified macroeconomic, political and other sources 
of uncertainty which can, in various ways, affect the financial services 
industry in a negative manner. 
 
   Other sources of uncertainty are unforeseen structural changes in the 
business environment and already identified trends and potential 
wide-impact events. These external drivers may have a long-term impact 
on how Sampo Group's business will be conducted. Examples of already 
identified trends are technological developments in areas such as 
artificial intelligence and digitalization, demographic changes, and 
sustainability issues that may also have profound effects on companies 
from the financial sector. 
 
   SAMPO PLC 
 
   Board of Directors 
 
   For more information, please contact: 
 
   Knut Arne Alsaker, Group CFO, tel. +358 10 516 0010 
 
   Jarmo Salonen, Head of Investor Relations and Group Communications, tel. 
+358 10 516 0030 
 
   Maria Silander, Communications Manager, Media Relations, tel. +358 10 
516 0031 
 
   Conference call 
 
   An English language conference call for investors, analysts and the 
media will be arranged today at 1 pm Finnish time (11 am UK time). To 
participate, please call one of the following telephone numbers: +1 631 
913 1422, +44 333 300 0804, +46 856 642 651, or +358 981 710 310. The 
conference code is 25893753#. 
 
   The conference call can also be followed live at: 
https://www.globenewswire.com/Tracker?data=T6zf9vlueHPz00XhXCTvd58orvnF5UK8dj1We_Y8k4IyOa1b1OEvcjGLcXZKofy8mosezM57g7anDMWR7oirOuaxhaQwico7AcAjHMqvTsQ= 
www.sampo.com/result. A recorded version will be available later at the 
same address. 
 
   In addition, the Supplementary Financial Information Package is 
available at: 
https://www.globenewswire.com/Tracker?data=T6zf9vlueHPz00XhXCTvd58orvnF5UK8dj1We_Y8k4JAT34RTkp9N-R69BsY7SNqZZsqVJUyVPESjCYw0K9EWD71dKr4e0fMczfCtPf0AQM= 
www.sampo.com/result. 
 
   Sampo will publish the Interim Statement for the period 
January--September 2020 on 4 November 2020. 
 
   Distribution: 
 
   Nasdaq Helsinki 
 
   London Stock Exchange 
 
   The principal media 
 
   Financial Supervisory Authority 
 
   https://www.globenewswire.com/Tracker?data=T6zf9vlueHPz00XhXCTvd8fD81Fg3gru9gi8YKs5tKcadpqGd6V9FN86g6FFAhiLRRXVUNFFuWCTUs-DCjaVqA== 
www.sampo.com 
 
   Attachment 
 
 
   -- Half-Year Financial Report January - June 2020 
      https://ml-eu.globenewswire.com/Resource/Download/b0fa0a99-6d8b-4dd6-b047-dad97e17e80c 
 
 
 
 
 
 
 

(END) Dow Jones Newswires

August 05, 2020 02:50 ET (06:50 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
FTSE 100 (FTSE:UKX)
Gráfico Histórico do Índice
De Ago 2020 até Set 2020 Click aqui para mais gráficos FTSE 100.
FTSE 100 (FTSE:UKX)
Gráfico Histórico do Índice
De Set 2019 até Set 2020 Click aqui para mais gráficos FTSE 100.