Authorizations Granted to the Board . . . . . . . . . . . . . . . . . . . . .30
Sampo Group’s consolidated accounts 2020, amounted to EUR 429 million (290). The reported loss after these measures was EUR -734 million (290). Nordea is progressing well towards meeting its 2022 financial targets.
Following the setbacks of 2020, the Nordics are on track towards recovery. While the second wave of the pandemic is still hindering the recovery, vaccines and the summer are expected to bring long-awaited relief and a prospect of a return to normal. Compared to most other European countries, the Nordics have been among the most resilient in withstanding the crisis. The contraction of GDP is expected to have been much smaller than in most other countries as a consequence of favourable export composition and smaller exposure to tourism related shocks.
(1,596), of which unit-linked premiums were EUR 960 million (1,476). In 2019 both premium income and claims paid included around EUR 400 million one-off items caused by changes in the tax treatment of life insurance products.
(2.8) and average maturity 2.9 years (2.9). Fixed income running yield without taking into account the FX hedging cost was 2.8 per cent (2.4) on 31 December 2020.
Sampo has a strategic ambition to expand further into non-life insurance, a segment where it has extensive experience and expertise. As part of this strategy, and in the context of its leading market positions in the Nordic markets, Sampo has been considering a geographic expansion beyond its current footprint. Sampo believes that the UK, as one of the largest retail P&C markets in
On 6 May 2020 Sampo Board decided to cancel the previous dividend proposal of EUR 2.20 per share and announce a new proposal of EUR 1.50 per share. The
The Annual General Meeting decided to pay the following fees to the members of the Board of Directors until the close of the 2021 Annual General Meeting: the Chair of the
Remunera tion Report for Governing Bodies for the financial year 2020 at www.sampo.com/year2020. The
Sampo prefers low leverage and adequate liquidity buffers to be able to generate liquidity as needed. Group level capitalization is managed by setting targets for Group solvency. To the extent possible Group level risk concentrations are proactively managed by strategic decisions.
Foreign and nominee registered total 350,098,824 63.04 62.50 *) 1,472,719 A shares and 1,200,000 B shares.
Group Executive Committee's share of votes, % 0.1 0.2 *) Member of the Board of Directors of Sampo plc since 2 June 2020. **) Member of the Board of Directors of Sampo plc from 7 April 2009 to 2 June 2020. ***) Group CEO and President until 31 December 2019.
On 31 December 2020 financial liabilities in Sampo plc’s balance sheet consisted of issued senior bonds and notes of EUR 2,448 million (3,414). In addition, Sampo plc has issued subordinated notes of EUR 1,486 million (494).
Other sources of uncertainty are unforeseen structural changes in the business environment and already identified trends and potential wide-impact events. These external drivers may have a long-term impact on how
Total items reclassifiable to profit or loss, net of tax 322 373
Investments in associates are treated by the equity method of accounting, in which the investment is initially recorded at cost and increased (or decreased) each year by the Group’s share of the post-acquisition net income (or loss), or other movements reflected directly in the equity of the associate. If the Group’s share of the associate’s loss exceeds the carrying amount of the investment, the investment is carried at zero value, and the loss in excess is consolidated only if the Group is committed to fulfilling the obligations of the associate. Goodwill arising on the acquisition is included in the cost of the investment.
In the inter-segment and inter-company pricing, for both domestic and cross border transactions, market-based prices are applied. The pricing is based on the Code of conduct on Transfer Pricing Documentation in the EU
The cumulative change in fair value is transferred from equity and recognised in profit or loss in the same period that the hedged cash flows affect profit or loss.
Right-of-use assets related to lease contracts (right to use an underlying asset) are recognised in the asset side as part of Property, Plant and Equipment and the corresponding lease liabilities in the liability side as part of Other liabilities. Right-of-use asset is recognised at the commencement date of the lease and measured at cost that includes the amount of the initial measurement of the liability and potential prepaid rents to the lessor.
Measurement of insurance and investment contracts In Mandatum, national accounting standards in accordance with IFRS 4 Insurance contracts are applied to all insurance contracts and investment contracts with DPF.
demand at market value. In case of death, 101 per cent of the amount is payable. This feature is considered an insignificant insurance risk, and the contracts are categorized and measured as investment contracts. There are no other surrender rights and values to take into consideration.
fair value of the incentive; instead, they are taken into account in the number of those incentive units that are expected to be exercised during the vesting period. In this respect, the Group will update the assumption on the estimated final number of incentive units at every interim or annual balance sheet date.
322). The acquisition related insignificant costs were recognised in other operating expenses.
Fair value hedges In Mandatum, fair value hedging is used to hedge a proportion of foreign exchange and interest risk in available-for-sale financial assets. The interest elements of forward contracts have been excluded from hedging relationships in foreign exchange hedges. Net result from exchange derivatives designated as fair value hedges amounted to EURm -31 (6). Net result from hedged risks in fair value hedges of available for sale financial assets amounted to EURm 31 (-6).
There are no financial instruments that meet the SPPI test, on which the credit risk is not low.
Total financial assets measured at fair value 26,253 6,943 2,628 35,824
Share of associate's other comprehensive income 40 - 40 -30 - -30
The fair value of the granting for the year has been calculated using the Black and Scholes model assuming a share price of EUR 42 (41) . The interest rate corresponds to the zero coupon rate based on the swap curve on 31 December of the previous year. Future volatility is assumed to be 22 per cent and the average life of the options approximately 4 years. The volatility based on previous years' volatility is still the best estimate of the future volatility. The strike prices are adjusted by dividend distribution for outstanding options.
Sampo Group’s aim to provide customers with the best service in all situations. Losing talent or being perceived as an unattractive employer would pose large risks for the businesses. Therefore, Sampo Group companies strive to ensure a sound work environment, not only because it is stipulated by law, but also because it lays the foundation for sustainable business performance.
Environmental issues and climate change are factors that are expected to have a mid and long-term effect on Sampo
These are reflected in how Sampo deals with environmental issues and its core stakeholders (i.e. customers, personnel, investors, other co-operation partners, tax authorities and supervisory authorities) and how Sampo
Premium and Catastrophe Risk and Their Management and Control Despite the diversified portfolio, risk concentrations and consequently severe claims may arise through, for example, exposures to natural catastrophes such as storms and floods. The geographical areas most exposed to such events are Denmark, Norway and Sweden. In addition to natural catastrophes, single large claims could have an impact on the result of insurance operations. The negative economic impact of natural catastrophes and single large claims is effectively mitigated by having a well-diversified portfolio and a group-wide reinsurance program in place.
Sweden Norway Finland Denmark Baltics Total EURm Duration EURm Duration EURm Duration EURm Duration EURm Duration EURm Duration
● Denmark 0 ● Norway 98 ● Sweden 690 ● Finland 0 ● Western Europe 236
Therefore, Topdanmark Livsforsikring has continuous focus on the solvency position, the changes in the individual risks and the development of the loss-absorbing buffers. The latter is important because over time it can level out the market and insurance risks within the individual risk groups.
breakdown of Topdanmark’s listed equity investments by geographical regions is presented in the following graph.
● Denmark 111 ● Norway 6 ● Sweden 4 ● Finland 0 ● Western Europe 129
Topdanmark A/S. Topdanmark A/S finances its activities and dividend program by receiving dividends from its subsidiaries. Further financing requirements are covered by short-term money market loans, typically with a maturity of one month or less.
● Norway 0 ● Sweden 0 ● Finland 0 ● Denmark 0 ● Baltic 0 ● United Kingdom 103
Mandatum Life. The Solvency Capital Requirement of longevity risk is also highly dependent on the interest rate level, which in practice means that the lower the applied discount rate is, the higher the longevity SCR would be.
Underwriting Policy to the RMC. The Insurance Risk Committee is chaired by the Chief Actuary who is responsible for ensuring that the principles for pricing policies and for the calculation of technical provisions are adequate and in line with the underwriting and claims management processes.
Investment allocations and average maturities of fixed income investments as at year end 2020 and 2019 are presented in the table Investment Allocation, Mandatum
Underwriting and market risk concentrations and their management are described in the next sections as well as the parent company’s role as a risk manager of groupwide risks and as a source of liquidity.
Development of Investments If, Mandatum Life, Hastings, Sampo plc and Topdanmark
Regarding fixed income and equity exposures financial institutions and covered bonds have a material weight in the group-wide portfolios whereas the role of public sector investments is quite limited. Most of these assets are issued by Nordic corporates and institutions, although
Ten largest direct listed equity investments Total, EURm % of total direct equity investments Saxo Bank * 284 12.5%
Sampo plc, 31 December 2020 and 31 December 2019 are all issued by If, Mandatum Life, Nordea and Topdanmark.
Notes to the Income Statement 1–4 1 Other operating income ...................................................... 190 2 Other operating expenses .................................................. 190 4 Financial income and expense .......................................... 190
15 Pension liabilities The basic and suplementary pension insurance of Sampo plc's staff is handled through insurance policies in pension insurance companies in Finland and Sweden.
(31.12.2019: mEUR 32,409) which represents 82% of the Group’s total liabilities and it is thus the single largest liability of the Group. The insurance contract liabilities comprise life and non-life insurance contract liabilities.
We refer to the Summary of significant accounting policies and note Business Combinations.