Statement of Changes in Equity, IFRS . . . . . . . . . . . . . . . . . . . .46 Statement of Cash Flows, IFRS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47
Life has supplemented the discount rate reserve and the rate used for 2021 - 2023 is 0.25 per cent. This had a negative impact of EUR 77 million on the result. The return on equity amounted to 14.4 per cent (23.5). Mandatum Life’s
The global economy is expected to have shrunk by 3.5 per cent in 2020, primarily due to the shock caused by the
Government restrictions and in general low activity level, especially during the second quarter, had a positive effect on claims frequency. The situation varied somewhat during the third and fourth quarter, but positive effects continued throughout the year, affecting especially motor insurance. The effect of COVID-19 on If’s risk ratio was approximately 4 percentage points positive in the fourth quarter and approximately 3 percentage points for the full year. Going forward repair costs might increase due to a lack of material, delays in transportation of material or shortage of personnel following implemented government travel restrictions.
Overall, motor claims frequencies reduced during the year, reflecting reduced motor vehicle usage following national and local restrictions resulting from COVID-19.
Mandatum Life to change its focus from new sales to existing customers for several months starting from spring and this, together with the uncertain capital market situation, was reflected in the premium income in 2020 as premiums did not quite meet the record level of the comparison year.
Customer retention continued to be high and stable across all business areas. The number of customers increased in all countries.
Average number of staff (FTE) 2,428 2,322 64 through new distribution partner Nordea, and COVID-19 related expenses.
COVID-19 effect, improved due to higher average premiums. The development on motor improved the claims trend by 0.8 percentage points.
Mandatum Life Group comprises Mandatum Life Insurance Company Ltd., a wholly-owned subsidiary of Sampo plc, operating in Finland, Estonia, Latvia and Lithuania, and its subsidiaries. The parent company, Mandatum Life, is responsible for sales functions and all the functions required by the Insurance Companies Act. The operating subsidiaries are Mandatum Life Services Ltd, Mandatum
After the end of the reporting year on 20 January 2021
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)
During 2020, Sampo continued to work on corporate responsibility in line with the Group’s corporate responsibility themes: Responsible Business Management and
Remaining incentive units may be allocated in 2021 and 2022 and may be allocated to new recruits or current employees with materially changed circumstances or holding a position of increased strategic importance. The scheme will vest in three instalments starting from three years from the allocation of the units.
shares owned directly, indirectly or through financial instruments by BlackRock Inc. (tax ID 32-0174421) and its funds was over 5 per cent of Sampo’s total stock. The total number of voting rights attached to Sampo A shares was below 5 per cent of Sampo’s total voting rights.
If normally pays its dividend towards the end of the calendar year.
If P&C Insurance Holding Ltd (publ) – Issuer Credit Rating - - A Stable
underwriting company, calculates its solo solvency position according to Solvency II rules.
Adjusted number of shares at 31 Dec. 1,000 555,352 555,352 555,352 555,352 560,000
Associates are entities in which the Group has significant influence, but no control over the financial management and operating policy decisions. Unless otherwise demonstrated, this is generally presumed when the Group holds in excess of 20 per cent, but no more than 50 per cent, of the voting rights of an entity. Correspondingly, even when the Group holds less than 20 per cent of the voting power, it can be treated as an associate, if the significant influ-
Inter-segment transactions, assets and liabilities are eliminated in the consolidated financial statements.
Thus, the same standard is applied to these contracts as to contracts with DPF.
The amounts reported as pension costs during a financial year consist of the actuarially calculated earnings of old-age pensions during the year, calculated straight-line, based on pensionable income at the time of retirement.
Another allowed option is to apply IFRS 9 from 1 Jan 2018 on, but to remove some of the accounting mismatches, caused by the different valuation methods of assets and liabilities, from the income statement and transfer them to other comprehensive income.
The offer price was 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
At the acquisition, total of EUR 578 million was allocated to intangible assets, of which EUR 257 million to customer relations and EUR 163 million to software platforms. Customer relations will be amortised over a period of 8 years and software platforms 7 years. Sampo's share of annual amortisations totals about EUR 39 million. EUR 158 million was allocated to brand. The brand will not be amortised, but instead tested for an impairment at least once a year.
Total gains/losses recorded in other comprehensive income Purchases Sales 31 Dec
Group liabilities from unit-linked insurance and investment contracts, total 16,285 14,368
For the defined-contribution pension plans, If pays fixed contributions and has no further payment obligations once the contributions have been paid. The pension expense for the defined-contribution plans is equal to the premiums paid by If for the fiscal year.
Expected contributions to the defined benefit plans during 2021 and 2020 8 9 1 2
Net pension liability recognised in the balance sheet 69 29 98 71 28 99
The amount of the performance-related bonus is, in all schemes, based on the value performance of Sampo's A share. In addition, in schemes 2004 and 2017, the bonus is based also on both the insurance margin (IM) and Sampo's return on the risk adjusted capital (RORAC). In 2020 scheme, the bonus depends on the risk-adjusted return on capital (RORAC). The value of one calculated incentive unit is the trade-weighted average price of Sampo's A-share at the time period specified in the terms of the scheme, and reduced by the starting price adjusted with the dividends per share distributed up to the payment date. The pre-dividend starting prices vary between eur 32.94–44.10. The maximum value of one incentive unit varies between eur 56.94– 63.10, reduced by the dividend-adjusted starting price. In 2014 and 2017 schemes, the incentive reward depends on two benchmarks. If the IM is 6 per cent or more, the IM-based reward is paid in full. If the IM is between 4–5.99 per cent, half of the incentive reward is paid. No IMrelated reward will be paid out, if the IM stays below these. In addition, the return on the risk adjusted capital is taken into account. If the return is at least risk free return + 4 per cent, the RORAC-based incentive reward is paid out in full. If the return is risk free return + 2 per cent, but less than risk free return + 4 percent, the payout is 50 per cent. If the return stays below these benchmarks, no RORAC-based reward will be paid out. In 2020 scheme, the incentive reward is based on the risk-adjusted return on capital so that if the return is at least risk free return + 5 per cent, the reward is paid out in full. If the return is at least risk free return + 3 per cent, but less than risk free return + 5 per cent, the payout is 50 per cent. If the return is below this, no reward will be paid out.
Long Term Incentive Plan Prior to the acquisition of Hastings Group Holdings Limited (‘HGH’), formerly known as Hastings Group Holdings plc certain management personnel were participating in the Group’s Long Term Incentive Plan (‘LTIP’) giving them an option to acquire shares in the Group at an exercise price of £nil. Vesting was subject to a three year service period and the achievement of certain performance conditions in respect of total shareholder return and adjusted earnings per share over a three year period. For awards to certain individuals, considered key management personnel, there was an additional holding period of two years (‘Executive grant’). Upon acquisition of HGH, Hastings Group (Consolidated) Limited (‘HGC’) administered cash replacement awards were offered in lieu of the equity settled awards. No options or awards were granted during the period. The expected life is the contractual life of the award adjusted to reflect management’s best estimate of holder behaviour. There were cash awards with a value of EUR 26 million outstanding at 31 December 2020.
Net premiums earned (EURm) 4,484 +/- 1 per cent +/- 45 +/- 44
Technical Provisions by Line of Business and Major Geographical Area If, 31 December 2020
Base currency, SEKm EUR USD JPY GBP SEK NOK CHF DKK Other Total, net
(estimated and materialized) as well as deviations from the Reinsurance Policy, shall be reported.
● Liability 77 ● Accident 264 ● Property 564 ● Marine, aviation, transport 8
The main underwriting risk that influences the performance is the risk of catastrophe events. However,
Risk Scenarios in Life Insurance Topdanmark, 31 December 2020 and 31 December 2019
Most of Topdanmark's interest-bearing assets comprise of AAA rated Danish mortgage bonds and debt issued or guaranteed by top-rated European states. The risk of losses is considered to be minor due to the high credit quality of the issuers and because investments have been made at spreads which are in balance with Topdanmark’s desired risk ratio levels. The portfolio is well diversified both geographically and by issuer type and, therefore, the exposure to concentration risk is insignificant.
ability to pay is the most important counterparty risk factor. Topdanmark minimises this risk by primarily buying reinsurance cover from reinsurance companies with a minimum rating of A- and by spreading reinsurance cover over many reinsurers.
Audits are conducted on a regular basis to ensure that all underwriting and rating rules are being applied correctly.
The average duration of fixed income investments was 2.8 years. The respective duration of the insurance liabilities was around 11 years. Interest rate risk is managed at the balance sheet level by changing the duration of assets and by using interest rate derivatives.
Nordic economies typically are at any given time in somewhat different stages of their economic cycles, because of reasons such as different economic structures and separate currencies. Also, geographically the Nordics as a large area is more a source of underwriting diversification than a concentration. Hence, inherently the Nordic area is a good basis for diversified business. Geographic diversification was extended into the United Kingdom in late 2020, when Sampo acquired a 70% majority stake in
The figures in this table do not completely reconcile with the table Market Risk Sensitivities, Topdanmark, 31 December 2020 and 31 December 2019 due to differences in calculation methods.
Even though Hastings’ investment portfolio is smaller than other Group companies’ portfolios, it has had a positive impact on the diversification of Sampo Group’s investments. The majority of Hastings’ assets are British investments denominated in pound sterling, which is a market that other Sampo Group companies have very limited exposure to. Moreover, Hastings’ investment portfolio consists mainly of investment grade fixed income investments.
The public-sector exposure includes government bonds, government guaranteed bonds and other public-sector investments as shown in the table Fixed Income
Topdanmark, 31 December 2020. The largest single name investments in Topdanmark’s portfolios are in AAA rated
As at 31 December 2020 Sampo had long-term strategic holdings of EUR 9,106 million and they were funded mainly by capital of EUR 7,472 million and senior debt of EUR 2,448 million. Average remaining maturity of senior debt was 5.2 years and EUR 1,100 million of it had a maturity longer than 5 years. Senior debt is used to fund other financial assets as well. The average maturity of subordinated loans and fixed income instruments of EUR
Summary of Significant Accounting Policies The presentation of Sampo Plc's financial statements together with the notes has been prepared in accordance with the Finnish Accounting Act and Ordinance. The accounting policies applied to the separate financial statements of Sampo plc do not materially differ from those of the Group, prepared in accordance with the International Financial Reporting Standards (IFRSs). The financial assets are measured at fair value derived from the markets.
Temporary staff 0 1 18 Board fees and management remuneration (EUR thousand) 2020 2019 Group Executive Director Torbjörn Magnusson 1,314 3,891
Our audit procedures included identifying controls that verify that the Group’s share of
Nordea has been booked appropriately based on the Group’s share of Nordea’s financial information and testing the consolidation procedures performed by the Group.