• Sampo became founding shareholder in Meridea Financial Software Company, which produces e-banking solutions. The company produces and markets new generation software for banking and the financial field. The other shareholders are
• Sampo’s and Mandatum’s mutual fund operations were combined so that
P&C insurance company If. At the same time, Sampo’s P&C insurance companies became part of the If Group. Despite the restructurings, P&C insurance services remain part of Sampo’s service range.
I am pleased to be able to say that the profound changes in the investment climate and appalling events have had only a very limited impact on Sampo’s operations. In addition to the growth in mutual fund savings, our banking operations also did well. The investment bank,
In fact, the popularity of our mutual fund and savings products was something of a surprise, considering the overall market situation last autumn.
In my assessment the strategic choices made by Sampo have been well received both by our customers and the broader market. Measured by market value, we have become a middle-sized Nordic finance house.
We have improved the efficiency of our organisation in order to maintain our competitiveness and to more effectively make the expertise of our Group accessible to our customers. The Sampo brand obligates us to constantly strive to improve the entire spectrum of our services in banking, life insurance and
The global economic slowdown was also felt in the Baltic area. Germany, the biggest economy in the area and also the biggest export market, was drifting closer to recession.
nities and investment behaviour provide a firm foundation for Sampo’s business strategy. Economic growth increases household wealth and also the possibility to save. The ageing of the population invites a growing number of people to prepare for the future by initiating their own pension saving plans.
The near-term outlook and strong market position, as well as the strategic decisions made, provide good conditions for successful operations in 2002.
Mandatum Stockbrokers. All of the stock brokerage business groups (Finnish and international institutions, Finnish private customers, derivatives brokerage)
insurance distribution was separated from bank distribution at the beginning of summer 2001. Instead, the revised distribution structures were adapted to the main customer segments: private, corporate and major customers.
Profitability on the Baltic market fell slightly, but remained at the good level required by targets. The profitability of the European subsidiary (which has since been sold) was not satisfactory.
The events of September 11 had a major impact on the reinsurance sector: reinsurance terms became tighter, prices went up and the number of reinsurers fell. All these factors were inevitably reflected in customers’ insurance cover and the price of insurance.
Services for major customers will improve still further, thanks to the combined risk management expertise of
Mandatum Bank Plc A or B share. The trading in the Mandatum Bank B share was interrupted on 30 November 2001 and the share was removed from the
The cost to income ratio was 61 per cent (52), and excluding one-off items 64 per cent (65).
Administrative expenses fell by 3 per cent to EUR 367 million (378). Staff costs were up by EUR 34 million, while other administrative expenses declined by
Operating profit, excl. one-off items and the impact on results by the sale of a Group company 219 92
(209) and its combined ratio stood at 139.7 per cent (132.0).
Growth in the volume of fund operations is predicted to remain strong, and the Group’s share of the fund capital market is expected to increase further.
Dividend income From Group undertakings 159 From associated undertakings 0 From other companies 8
The net amount of provisions for bad and doubtful debts and write-offs in 2001 was EUR 16 million (17). Of this amount an increase in specific provisions pooled by customer group accounted for
Movements in risk factors such as interest rates, exchange rates, equity prices and their respective volatilities or the credit quality of the counterparty affect market values.
Accounts according to uniform accounting policies when possible. Divergences arise in particular due to the different valuation provisions applied in banking and investment services and the holding company on the one hand, and in the insurance business on the other hand.
The regulations concerning Finnish accounting and taxation practice allow certain optional untaxed reserves, and depreciation above plan having an impact on the result and taxation, to be made in the final accounts.
Ltd’s provision for outstanding claims in foreign reinsurance. Patria’s discounted technical provisions are mainly in USD
Principle of Fairness must be observed in life insurance with respect to such policies which, according to the insurance contract, entitle to bonuses and rebates granted on the basis of any surplus yielded by the policies. If the solvency requirements do not prevent it, a reasonable part of the surplus has to be returned to these policies as bonuses.
In banking and investment services, offbalance sheet items consist of contingent liabilities and commitments. Contingent liabilities comprise transactions in which companies have underwritten the obligations of third parties, including guarantees and assets pledged as collateral security. Commitments consist of irrevocable commitments such as sale and option-to-resell transactions, underwriting commitments, undrawn formal standby facilities, credit lines and other commitments to lend.
(P&C and life insurance) 44 Current value and valuation difference on investments 45 Changes in investments in land and buildings 46 Shares and participations in other than subsidiaries and associated companies 47 Investments in Group undertakings and associated undertakings 48 Other loans by security 49 Loans to executives (Insurance Companies’ Act, Chapter 12, Section 5) 50 Investments covering unit-linked insurance 51 Debtors and creditors, associated undertakings
Income from investments in land and buildings Interest income from Group undertakings 0 – Interest income from associated undertakings 0 0 Other income from Group undertakings 3 0 Other income from other than Group undertakings 23 31
Debt securities by type Treasury bills 15 – Local authority bills 16 70 Commercial papers 10 51 Certificates of deposit 566 745 Convertible bonds 1 0 Other bonds and notes 2,911 4,660
The remaining acquisition cost of debt securities comprises: That difference between the amount repayable at maturity and purchase price, which has been released to interest income (+) or charged to interest income (–) –3 18
Seligson Global Top 25 Brands A 6,993,078 – 12 17 Seligson Global Top 25 Pharmaceuticals A 494,145 – 5 6
Debt securities by type Other bonds and notes 14 9 57 SHARES AND PARTICIPATIONS FOR TRADING PURPOSES
Net Capital Net Capital income % employed 1) income % employed 1)
Profit brought forward 1 Jan. 1,079 For dividend distribution –652 To reserves provided for by the articles of association –275 To legal reserves –1 To other non-restricted reserves –6 Group restructurings –12 Increase 2 Decrease –1
Assets Treasury bills and other eligible bills 2,452 1 3,625 – Loans and advances to credit institutions 545 454 1,725 596 Loans and advances to customers 11,096 2,501 11,085 3,045
Undrawn loans, overdraft facilities and commitments to lend 3,193 3,990 to Group undertakings – – to associated undertakings 0 0
Average Change Average Change For the year Full-time staff 5,017 269 4,748 –23
The basic and supplementary pensions of the members of the Board of Directors of Sampo Bank plc have been arranged through insurance.
The interest on loans to the members of administrative and supervisory bodies is at least as high as on the staff loans referred to in the Income and Capital Tax Act, section 67, so that the interest benefit will not be liable for taxation.
Interest rate swaps underlying instruments – 50 current value – –
Other Capsam Consulting Oy Helsinki Finland (60.00) 40.00 – 0 1 1 Oy Finnish Captive & Risk Services Ltd Helsinki Finland 80.00 – 0 0 0 Oy Haveri Ab Helsinki Finland 100.00 – 0 0 0 PSW Realty World Ltd 3) Helsinki Finland 100.00 – 2 1 0 Risk Management Ltd Helsinki Finland 100.00 100.00 1 0 0 Satura Oy Helsinki Finland 100.00 – 0 0 0
Auditing Standards. Those standards require that we plan and perform the audit in order to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting policies used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. The purpose of our audit of administration has been to examine that the Board of Directors and the Managing Director have legally complied with the rules of the Insurance Companies Act and the Finnish
and the executives of the Sampo Group and decides on their terms of employment and other compensation. In addition, the Board confirms the targets of the Group’s personnel planning and supervises their implementation as well as determines the grounds for the Group’s compensation system and decides on other far-reaching matters concerning the staff.
Risk Control Committee for the control of Sampo Group’s risks on the Group level. The duties of the Risk Control
EUR 420 (FIM 2,500) for each meeting or possible Board Committee meeting.
1,986,920.02 to EUR 93,442,683.23 by giving 2,362,738 Sampo A shares to the
Directors. The subscription period for the option rights was 2-31 January 2001.
The number of registered shareholders on 31 December 2001 amounted to 42,610. Of the shares, 1.58 per cent had not been entered into the book-entry securities system. Foreign ownership was 27.37 per cent of the share capital and 27.13 per cent of the votes. Nearly all foreign owners have listed their holdings in the nominee register.