Life in urance performed well during the review year, whereas non-life insurance bu ine fell short of target. Once again, ampo broke it own records in achieving the best in­ vestment result in its history. Listed shares in particular pro­ duced substantial sales profits. Despite considerable realisa­ tions, the Group investment portfolio did not in fact shrink and solvency capital continued to grow at an impressive rate. Net asset value per share reached EUR 63.4 at the year-end, almost twice chat of 1998.
per and board manufacturing capacity, for instance, is already insured with ampo lndu trial.
Competitive Multi-channel Services . . ampo and Leonia have branch offices m as many as 100 Cit­
The Pohjola shares acquired by the Sampo Group accounted for 8.39 per cent of the company's shares and 9.95 per cent of the voces. After this, the ac­ quisition of Pohjola shares was contin­ ued so chat the aggregate amount of Pohjola's votes held by the group of buyers stood at 34.65 per cent at the end of 1999.
olumns: I Gross premiums wricren before credit loss and reinsurers ' share Premiums earned
Operating expenses and -6 -3 - 9 -7 depreciation on investments. .
In life insurance, the share of inter­ est-bearing instruments of the total in­ vestment portfolio fell to 38 per cent. The increase in interest-rate level strained the return on bonds, and inter­ est income was barely positive.
On February 24th, 2000, ampo signed draft terms of merger with its ubsidiarie Industrial In urance and ampo Enterprise, which will be merged with their parent company. These mergers are a part of a restructur­ ing process aiming at the development of the Sampo Group composition. The purpose is to make the parent company ampo, currently an insurance com­
T he Board of Directors recommends that the company's profit for the year be applied as follows: To be paid as dividend 144,567,614.07 79,889,265.07 To be transferred to the contingency fund
Group Parent company EUR '000 Notes 1999 1998 1999 1998 EUR 'OOO
Currency conversion differences re­ lating to insurance business are derived as the difference of foreign reinsurance figures calculated at changing and fixed rates. urrency conver ion differences have been calculated from premium and claims, including changes in the provision for out tanding claims and
Unrealised gains and value adjust­ ments on investments in rhe nature of investment asset and on investments covering unit-linked in urances are en­ tered with impact on the result. Revaluacions on investments in the na­ ture of fixed assets and their reversal are entered in the revaluation reserve under restricted capital and re erves. If a fixed assets investment later become an in­ vestment as et, the funded revaluation is reversed.
ance with the Business Tax Act i preented as a eparate item in tb Pr fit and s A count, and the a cumulated depre iati n differ n i pre ented un­
The change in the technical provii n of rein uran e has been a! ulated at fixed ex hange rate , the impact of the exchange rates of the insurance bu i­
plied. The claims settlement period used in di counting is based on Group eo m pany tatistics.
Principle of Fairness mu t be observed in life insurance with respect to such pol icies which, according to the insur­
Life has for its part made a decision on the interpretation of the Principle of
tion reserve ± change in valuation differences on investments - tax + capital and reserves + minority interest
FIMm 6,379 7,696 10,004 14,921 26,621 Marker capirali ation EURm 596 928 1,810 1,979 2,110 % of technical provisions 72.0 82.8 73.0 57.7 90.0 FIM m 3,542 5,518 10,762 11,765 12,544
FIMm 5,896 6,105 6,273 7,794 8,854 Adju red number of shares at Dec. 31 '000 60,560 60,560 60,560 60,560 60,560 Gross premiums written EURm 710 756 782 871 884 Weighted average share price EUR 9.56 11.79 21.90 36.70 30.97
Impact of bonuses and rebates attached to life and pen ion insurance policie terminated d uring the year, on the technicaJ re ult m SAMPO ANNUAl REPORT 1999 5 EXPENSES BY ACTIVITY
Life in urance laims enlement expense (claims paid) Directly allocated hare of fixed co ts
Investment management cxpcn cs (invc tmcnt charges) Directly allocated 'J 8,167 2,476
'l Includes an extraordinary depreciation of EUR 39 million on the consolidation difference, enrered under extraordinary charges.
Net investment income before unreali ed gains and losses on inve tments
Bonds 262,948 262,948 262,208 104,742 104,742 109,563 Other debt securitie 21,151 21,151 21,155 21,795 21,795 21,800 Loans guaranteed by mortgages 20,515 20,515 20,515 22,701 22,701 22,701 Other loans 8,825 8,825 8,825 15,068 15,068 15,068 Deposits with credit institutions 5,890 5,890 5,890 3,952 3,952 3,952 678,179 678,179 1,246,746 446,922 446,922 573,292 The remaining acquisition cost of debt securities comprises that difference between the amount repayable at
Book value comprises Unrealised gains entered as income 42,988 8,332 Revaluations entered in revalualion reserve 33,221
m SAMPO ANNUAL REPORT 1999 1998 Buildings Land and waters and real estate shares
Portfolio transfer/ merger 101 1,092 Depreciation according ro plan/ value adjustments and value read jus tm enr 5,864 3,078 10,843 8,205 Decrease 6,407 - 12,659 -3,635 -3,940
Accumulated depreciation in excess of the plan, Jan. 1 7,754 9,951
No. of shares Holding % Votes % EUR '000 EUR '000 Name of company No. of shares Holding % Votes% EUR '000 EUR '000 EUR '000 Name of company Affiliated underwking
Jndus~rial lnsuran e mpany Ltd 11 500,000 100.00 100.00 42,022 188,28 1 257,216 Kyro orporation 944,183 5.97 5.97 13,964 23,132
Name of company No. of shares Holding % Votes % EUR '000 EUR '000 T eleste orporalion 199.525 4.65 3.80 10,022 14,978 Vaisala yj Public companie
Norvestia plc 700,346 13.72 8.97 7,818 10,575 Tamfelt orporation Transport I List 344,853 9.82 9.82 2,535 3.449 hnnair Oyj 2,791,504 3.29 3.29 10,301 12,422 lnc.~p orpor.uion
Metal and Engineering Fi kars orporation KC! Konecrane Internationa l PI Metra orporalion Merso Corporarion Ot11okumpu yj Panek o rp ration Rauraruuk!U Corporation
Forest Industry Met•a·Serla orporation , to ra En>o Oyj UPM-Kymmene Corporation
Accumulated value adjustment, D::.:e::c::.·-=3:..:1:.._ _____ _ Remaining acquisition cost, Dec. 31 hares in associated undertakings riginal acqu i ition co t, Jan. 1 Portfolio transfer/merger Increa e Decrea e Tran fers
Provi ion for unearned premiums Reinsurers ' share Provision for outstanding claims Rein urers' hare reditor Arising out of rein urance operations Bond with warrants Other creditors
i ed the B ard f ire L r t buy b ck a maximum f three million hare . The buy-back of shares was initiated on January 3, 2000.
The members of the Supervisory Board and Board of Directors, the Man­ aging Director and Deputy Managing Director owned a total of 24,306 hare (share of votes 0.039 per cent).
The currcnr values of option contract in ludc received and paid premium . Negative valua rion difference of derivative contra rs made for other rh.m hedging purpo es have been enrered as charges ( urrenr value 0).
The upervi ory Board . . · h d · · r ation of rhe ompany by the Board of Directors and Managmg DHector; - superv1ses t ea m1111s r c h v b
Erkki Pehu-Lehtonen, born 1950 (2002) Pre idem and CEO, Jaakko Poyry Group Oyj
Sampo launched its in-house loss survey organisation for motor vehicles and boats at the beginning of 1999 and rhey performed as expected. In fact, the new service received a positive response both from clients and car dealers. The use of electronic data and image tran fer between car dealers and Sampo in loss surveys has streamlined the claims settle­ ment process.
short maturity papers, as a result of the con­ siderable rise of interest rate levels in 1999. The demand for financing by SMEs rose dur­ ing the review year and was directed mainly at financing investments.
Patria's gro provision for out tanding claims decrea ed by UR 19.3 million u ing fixed foreign currency exchange rate . !aims paid on contracts active at the year-end to­
plemented all w the in ured to rai e the eo­
vidual ro e by more than 40 per cent and totalled EUR 1.9 bi ll ion. The proportion of private in urance of the gro premiums written increa ed by 8 percentage points eo 68 per cent. T he anticipated growth of the individual life in urance market ha rhus taken off.
Central Helsinki Other ports of Helsinki Helsinki metropolitan area Turku Tampere Other ports of Finland Overseas during 1999. F r n n-life in urance, new mmitment in private equity fund were valued at UR 40 milli n, whil new dire t inve tment wer valued at UR 10 milli n. In amp ifc, n w private quity fund om­ mitment were valued at UR 196 million and new dir t inve tment at UR 22 mil­ lion.
Personnel development has continued to focus on the planning of new learning environments. we built and piloted a new net-based learning environment in 1999, which will be implemented on a wider scale during the year 2000.
ampo Group training programmes aimed at individuals obtaining a degree quali­ fication attracted 114 members of taff in 1999, thirty of whom gained a further educa­ tion diploma in entrepreneurship in pring, 1999. The fir t bu ine college graduate to have taken advantage of on-the-job training will receive their diplomas in Spring, 2000.
ampo worked ro develop the environ­ mental management of all it real estate in co­ operation with Kiinteisrovarma Oy. Real es­ tate heat, water and electricity consumption is monitored by an Internee-based system. Five building condition appraisals and rwo energy audit were carried out. More audits will be conducted this year in connection with the ProGresS and KRESS projects.
Jouko K. Le kincn, Prc idcnt and Born 1943, Managing ire t r f