Shares, Share Capital and Shareholders . . . . . . . . . . . . . 22
to EUR 11,908 million (12,386), excluding the minority share of EUR 635 million (628). Dividend payments, both cash dividend and dividend in kind, of EUR 1,902 million reduced the equity and the comprehensive income for the year of EUR 1,565 million increased it.
Balance sheet (at end of period) 10.4468 10.6958 10.5633 10.3980 10.2548
One of the bigger surprises in Sweden was the Riksbank’s decision to raise rates towards the end of the year despite weak economic data. The rate hike was largely motivated by concerns over possible adverse effects stemming from negative rates.
In 2019 EUR 190 million (173) was released from technical reserves relating to prior year claims. Return on equity increased to 34.5 per cent (11.2) and the fair value reserve on 31 December 2019 amounted to EUR 457 million (234).
(4,502) in 2019. With fixed currency rates premiums grew 5.7 per cent in January – December 2019. All business areas had growth. The growth was highest in the BA
On 31 December 2019 Sampo plc held 804,922,858 Nordea shares corresponding 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 8.34 per share. The closing price as at 31 December 2019 was EUR
The Sampo and If Boards appointed Morten Thorsrud, the Head of If Business Area Private, on 7 February 2019 to succeed Magnusson as the CEO of If, effective immediately. Thorsrud was in turn succeeded by Ingrid Janbu
Group CEO and President Kari Stadigh (Until 31 Dec 2019) Torbjörn Magnusson (as of 1 Jan 2020)
Securities Market Association on 1 October 2015, effective from 1 January 2016 (the “CG Code 2015”).
The Annual General Meeting adopted the financial accounts for 2018 and discharged the Board of Directors and the Group CEO and President from liability for the financial year.
Sampo Group Code of Conduct, to better reflect the needs of the corporate responsibility in general and the Global
Depending on the asset classes, different ESG strategies, such as ESG integration, norm-based screening, sector-based screening, and active ownership, are used as of 2020. Sampo Group also signed the UN Principles for
The total number of staff in If increased 4 per cent. As of 31 December 2019 If employed 6,925 persons.
Shareholders by Sector Sampo plc (A and B shares), 31 December 2019
Topdanmark’s solvency ratio under the partial internal model was 177 per cent (196) at the end of December 2019.
Solvency Capital Requirement (SCR) was EUR 1,204 million (990). The increase in own funds is mainly due to the Tier 2 issue of EUR 250 million in September 2019 and the positive equity market development during the reporting year. SCR grew because of increased market risk due to positive equity market development, a change in the symmetrical adjustment and changes in contract boundary interpretations applied in calculating technical provisions. Without transitional measures, own funds would have amounted to EUR 1,756 million (1,348) and the solvency capital requirement to EUR 1,234 million (1,030)
Premiums written before reinsurers' share EURm 1,603 1,082 967 1,122 1,149
1) From 2016 on, the group solvency for Sampo has been calculated according to the consolidation method defined in the Solvency II Directive (2009/138/EC) and the Finnish Insurance Companies Act (521/2008). As Sampo plc is the ultimate parent of the Solvency II group, the solvency is calculated at the group level.
X 100% + total equity attributable to parent company equity holders (average of values on 1 Jan. and 31 Dec.)
Total items reclassifiable to profit or loss, net of tax 373 -739
of Nordea's actuarial gains/losses The exchange differences include the share of Nordea's exchange differences EURm 3 (-26). Respectively, available-for-sale financial assets include EURm -3 (-10) of Nordea's valuation differences on assets at fair value through p/l. Nordea adopted the new IFRS 9 Financial instruments standard from 1 January 2018 on.
Deferred acquisition costs In the P&C insurance business, acquisition costs clearly relating to the writing of insurance contracts and extending beyond the financial year are recognised as assets in the balance sheet. Acquisition costs include operating expenses directly or indirectly attributable to writing insurance contracts, fees and commissions, marketing expenses and the salaries and overheads of sales staff. Acquisition costs are amortised in the same way as provisions for unearned premiums, usually in 12 months at the maximum.
IFRS requires management estimates and assumptions that affect the revenue, expenses, assets, liabilities and contingent liabilities presented in the financial statements. Judgement is needed also in the application of accounting policies. The estimates made are based on the best information available at the balance sheet date.
Included in gains/losses from financial assets available-for-sale is a net gain of EURm -84 (-23) transferred from the fair value reserve.
Group claims incurred, total -5,466 -5,015 4 Change in liabilities for insurance and investment contracts
Total gains or losses included in profit and loss for assets held at the end of the financial year 27 0 27
Present value of estimated pension liability, including social costs 275 55 330 210 58 268
Sampo Group's Danish companies and Topdanmark Group's companies are jointly taxed, with Topdanmark A/S being the management company. Pursuant to the specific rules on corporation taxes etc. in the Danish Companies Act, the companies are liable for the jointly taxed companies and for any obligations to withhold tax from interests, royalties and dividend for companies concerned.
Topdanmark's share option scheme is for its Executive Board and senior executives. The strike price has been fixed at 110% of the market price on the last trading date in the prior financial year (average of all trades). The options may be exercised 3–5 years subsequent to the granting. The scheme is settled by shares.
and management practices, which provide assurance that the Group companies and their business partners, such as suppliers in claims handling, comply with laws, regulations and generally accepted principles on human rights, labor rights, environment, anti-money laundering, counter-terrorism financing and anti-corruption and bribery. Further, it comprises comprehensive information security governance systems, cybersecurity preparedness and personal data protection activities. Additionally, responsible business practices require being attentive of the risks relating to inappropriate customer advice and product sales, lack of clarity on conditions, prices and fees, and errors in claims handling and complaint processes.
When the above-mentioned core activities are successfully implemented, a balance between profits, risks and capitalization can be achieved both at company and group level and shareholder value can be created.
In the financial accounts, most of the technical provisions are nominal, while the annuity and annuity
The average maturity of fixed income investments was 2.8 years in If. The table shows the financing requirements resulting from expected cash inflows and outflows arising from financial assets and liabilities as well as technical provisions.
The total ceded premium related to treaty and facultative reinsurance amounted to EUR 55.2 million. Of this amount, 100 per cent was related to reinsurance counterparties with a credit rating of A- or higher.
Non-Life Underwriting Risks As shown in the graph Breakdown of Gross Written
• Reinsurance cover that reduces the risk especially for catastrophe events
Profit on life insurance consists of the following items: • Investment return on shareholders’ equity, which is the actual return on assets allocated to own funds.
• Prices for death and disability covers are adjusted continuously in relation to the market situation and the observed claims history
The investment strategy is more precisely determined in terms of market risk limits and specific requirements for certain types of positions and sub-portfolios (risk appetite). The investment strategy is determined by the Board and revised at least once a year. Appropriate financial risk mitigation techniques are used.
When assessing the value and sensitivity of insurance provisions Topdanmark uses the Solvency II discount curve that has its basis on market yield curve with volatility adjustment (“VA”). The VA component of the DKK yield curve comprises a corrective element based on the spreads of Danish mortgage bonds and European credit bonds. The
In practice, the investment assets are the only source of currency risk while the insurance liabilities are in the Danish krones. The currency risk is mitigated by derivatives and net exposures in different currencies are minor except in the euro.
EUR 86 million (95) including a EUR 71 million longevity reserve for the segregated group pension portfolio. The cumulative longevity risk result has been positive since these revisions. The longevity risk result of group pension for the year 2019 was EUR 8.9 million (8.3) after a EUR 8.9 million release from the longevity reserve.
Exposures by Sector, Asset Class and Rating Mandatum Life, 31 December 2019
It is regarded that the current business model where all companies have their own processes and agreements with counterparties is preventing accumulation of counterparty default risks and operational risks. Hence, these risks are mainly managed at company level.
Balance Sheet Structure Sampo plc, 31 December 2019 and 31 December 2018
The Group level buffer is the difference between the amount of the Group’s own funds and the Group capital requirement. In addition to the sub-group level factors
Notes to the Staff and Management 17–19 18 Board fees and management remuneration................ 176 19 Pension contributions to the CEO, deputy CEO and the members of the Board .............. 177
Former Presidents/CEO:s 1) The Group CEO is entitled to a supplementary defined contribution pension in accordance with the present pension contract. The annual pension premium is fixed at EUR 400,000.