The Annual General Meeting of Sampo plc is held on 10 April 2002.
**) If is not part of Sampo Group. Sampo and Varma-Sampo together hold 50 per cent of the votes in If.
insurance solution based on a combination of Sampo’s businesses and those of If was still in our interest and hence should go forward. In November we reached an agreement on this. Sampo received a 38 per cent holding in If and a net cash consideration of EUR 171 million. Sampo and Varma-Sampo together now control 50 per cent of the votes in If.
In addition to their immediate disastrous effects, the September 11 terrorist attacks in the USA also had economic consequences in that they caused fluctuations on financial markets, depressed consumer confidence, undermined the outlook for airline companies and forced P&C insurance companies to reconsider insurance prices in the light of the risk of terrorist attacks.
In Poland, economic growth slowed to about 1 per cent per annum during 2001. This slowdown was a consequence of high interest rate and stagnating export markets. Lower inflation and a reduction in the current account deficit were positive aspects of the development.
The reform in 2001 of Sampo Life’s organisational structure and of Sampo’s sales organisation began to have a favourable impact on sales developments already toward the end of the year under review. The existing broad sales channels for Sampo Life’s solutions - Sampo Bank,
Business Properties Ltd. The arrangement does not affect customer service or business operations.
Share of associated undertakings’ profit 0 –1 0 0 0 62 0 0
Impact on results by the sale of a Group company **) –20 –
Operating profit, excl. one-off items and impact of new Group company 106 106
Operating profit, excl. one-off items and the impact of new and sold companies 571 447 *) Mandatum Bank Plc, AS Sampo Pank (Estonia), UAB Sampo bankas (Lithuania) and
Operating profit from P&C insurance totalled EUR 569 million (777). The decrease was mainly attributable to the decline in net investment income. Net investment income for the reference year 2000 included EUR 141 million in dividends, avoir fiscal tax credit and sales profits from Pohjola shares. Premiums written increased to EUR 1,115 million
in P&C insurance, 6 per cent (10) in life insurance and 8 per cent in the holding company formed during the review period. 8,143 people (8,162) were employed in Finland and 1,541 (2,045)
Baltic Rim. The number of people employed abroad decreased due to the sale of Sampo Industrial Insurance N.V.
On 22 February 2001, after the exchange offer had expired, Sampo-Leonia’s
Shares and participations in associated undertakings 37, 101 17 13 Shares and participations in Group undertakings 37, 101 1 2 Intangible assets 38
Technical provisions of unit-linked insurance 299 270 Obligatory provisions 84 – 1 Deposits received from reinsurers 0 2 Creditors
The credit risks of the customer business units are reviewed on a year-to-year basis, monitoring the appropriateness of credit decisions, categorising the counterparties and collateral, and implementing action plans created to reduce the risks of the customers in the lowest creditworthiness categories. The achievement of portfolio targets set in the credit policy is followed monthly.
16 million and Pakistan for EUR 4 million. Exposures in Russia stood at EUR
Portfolio effect –99 –89 –205 –397 –642 –620 –14 0 –22
In 2001 the interest rates were at historically low levels. At the same time the balance sheet was actively downsized.
EURm 0–1 m 1–12 m 1–2 y 2–5 y over 5 y Total
As a result of the demerger, the structural liquidity exposure - the difference between retail demand deposits and customer loans - of Sampo Bank plc improved. The liquidity was strengthened also due to retail demand deposits transferred from Mandatum Bank.
Security and good returns are the aim of insurance company investments. The biggest risks threatening investment results are changes in the value of investments and low yields on investments with respect to the yield requirement of technical provisions. The intention is to limit these risks by spreading the investment portfolio as far as possible by instrument, sector and country. Currency risks are managed by keeping assets and liabilities sufficiently balanced across currencies. If necessary, derivatives are also used to hedge the investment portfolio against unexpected change.
Basle Committee on Banking Supervision - especially in terms of the bank´s own portfolio. During spring 2001,
Leonia Insurance Company plc (Sampo plc as of 9 April 2001), which was previously an insurance company, became a holding company on 31 March 2001. Up to that date, the company’s Profit and
same field of business are valued on the basis of the same principles.
Other investments of insurance operations have been valued at the lower of the rate valid on the date of acquisi-
Planned straight-line depreciations based on the estimated useful lives are made on intangible assets, buildings, structures and their components, and equipment.
Authority/Insurance Supervision Authority. Both in-house and outside experts assist in the assessment. Each site is assessed separately, allowing for the net income earned, location and market situation. The values of properties occupied for the own activities of the banking and investment services are
Investment Income. Dividends, guarantee capital interests and avoir fiscal tax credit are entered in the accounting period during which the decision on the distribution of profit was made. However, avoir fiscal tax credit sums exceeding the amount of income tax for the year will not be entered, if it is not probable that the credit left unused can be used in setting off the income tax of future periods, with particular regard to the expectations for the financial year immediately following.
Derivative contracts made for trading purposes are marked to market and the resultant profits and losses are included in Net income from transactions in securities and foreign exchange dealing.
Social Affairs and Health of 21 June 2000 specifying the decision.
The formula has been presented above in connection with the calculation of the Group key figures.
Provisions pooled by customer group included in the specific provisions for the year 6 27
Loans and advances to credit institutions – – Loans and advances to customers 59 92 Debt securities 114 139
Book value Debt securities 1,090 1,916 Treasury bills and other eligible bills 2,452 3,625
2) The net income% is a proportion of the net income to the capital employed and has been calculated by property. 3) The unlet space% is a proportion of the unlet spaces to all spaces which can be let out. Unlet spaces are spaces which can be let out, but which yield no rental income based on a lease on the balance sheet date.
Remaining acquisition cost 100 129 Book value 117 147 Current value 147 189
No. of Holding Book value Current value Name of company shares % EURm EURm
Federation of municipalities, municipality and parish securities and loans thereto, and State securities 2 4 Bank guarantee 0 0 Shares in housing and real estate companies 5 9 Guarantee insurance 3 4 Insurance policy 0 0 Other security 12 15 Total of secured loans 22 33
Properties and shares in property companies occupied for other than own activities 31 December 2001
Members and deputy members of the Supervisory Board – 0.1 Members and deputy members of the Board of Directors/ Management and President and Executive Vice President 3.5 5.3 of which performance-related bonuses 0.5 0.7
Futures and forwards, open underlying instruments 430 459 current value 2 34
Investment services Mandatum & Co Ltd Helsinki Finland 80.05 – 1 19 17 Mandatum Omaisuudenhoito Ltd Helsinki Finland 100.00 100.00 6 9 3 Mandatum Stockbrokers Ltd Helsinki Finland 81.00 – 1 6 2 Mandatum Private Equity Funds Ltd Helsinki Finland 100.00 – 0 0 0 Mandatum Fund Management Co Ltd Helsinki Finland 100.00 – 2 2 1 Mandatum Asset Management Ltd Helsinki Finland 100.00 – 1 4 3 Sampo Fund Management Ltd Helsinki Finland 100.00 100.00 6 4 1 Sampo Powszechne Towarzystwo
1) Share of votes has been announced in brackets if different from the holding. 2) Appropriations less deffered tax have been included in the capital. 3) Accounted for by the equity method. 4) The company is in liquidation.
Accounting Act and other rules and regulations governing the preparation of financial statements in Finland. The financial statements give a true and fair view, as defined in the Accounting Act, of both the consolidated and parent company result of operations, as well as of the financial position. The financial statements can be adopted and the members of the Board of Directors and the Managing Director of the parent company can be discharged from liability for the period audited by us. The proposal made by the
Congress Center, address Katajanokanlaituri 6, 00160 Helsinki. The listing of the persons registered will start at 1 p.m.
(Suomen Arvopaperikeskus Oy) on the matching day of the payment of dividend, 15 April 2002, is entitled to dividend. The dividends are proposed to be paid on 22 April 2002.