Sampo Oyj · OMXHEX:SAMPO

Sampo Oyj — Investor Day (August 2019)

86 slides from Sampo Oyj's investor day presentation, Aug 15, 2019

  1. Slide 1: Analyst Day

    Analyst Day 15 AUGUST 2019

  2. Slide 2: Agenda

    15 August 2019 Agenda 13.45 – 14.00 Opening remarks Torbjörn Magnusson Group CEO and President, Sampo Group, as of 1 Jan 2020 14.00 – 14.40 Comeback Sweden Per Långsved Country Senior Executive Sweden and Head of Personal Banking Sweden, Nordea 14.40 – 15.20 Digital@If Morten Thorsrud CEO, If P&C In

  3. Slide 3: Disclaimer

    15 August 2019 Disclaimer This presentation may contain forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Sampo believes that the expectations reflected in such forward looking statements are reasona

  4. Slide 4: Opening remarks

    Opening remarks Analyst Day, 15 August 2019 Torbjörn Magnusson Group CEO and President, Sampo Group, as of 1 Jan 2020

  5. Slide 5: Sampo's total shareholder return vs. comparison index, 10Y

    15 August 2019 Sampo’s total shareholder return vs. comparison index, 10Y 500 Average annual total return 15% Sampo 400 300 200 STOXX EUROPE 600 Banks/Insurance 100 0 10 11 12 13 14 15 16 17 18 19 Source: Refinitiv Datastream

  6. Slide 6: Sampo Group profit before taxes

    15 August 2019 Sampo Group profit before taxes EURm 1 400 1 200 1 153 981 1 000 800 600 415 440 388 400 313 222 200 105 146 137 31 0 -46 -200 If Topdanmark Mandatum Life Nordea Holding (excl. Sampo Group associates) 1-6/2018 1-6/2019

  7. Slide 7: Outlook for 2019

    15 August 2019 Outlook for 2019 Sampo Group’s business areas are expected to report good operating results for 2019. However, the marked-to-market results are, particularly in life insurance, highly dependent on capital market developments. The continuing low interest rate level also creates a chall

  8. Slide 8: Nordea Sweden

    Investor Presentation Nordea Sweden Per Långsved, Country Senior Executive Sweden and Head of Personal Banking Sweden 15 Aug 2019

  9. Slide 9: Agenda

    Agenda 1. Introduction 2. Personal Banking 3. A challenging transformation 4. Comeback Sweden 5. Building on the positive trend

  10. Slide 10: Personal Banking 2018 overview

    Personal Banking 2018 overview Personal Banking at a glance Income1 FTE development2 FY 2018 Split per Country • Universal relationship bank strategy -10% • Omnichannel service model is increasingly 33% anchored around our mobile banking app 38% 15% ~360 Branches ~9 million customers 23% Share of gr

  11. Slide 11: PeB Sweden locations and customers

    PeB Sweden 118 Locations 11 Online branches 5 Branches with cash ~ 1 900 Employees ~ 3 950 000 Household customers 4 Confidential

  12. Slide 12: PeB Sweden Q2

    PeB Sweden Q2 19 EUR 277m Total income 49,5% C/I ratio 13,8% ROCAR 5

  13. Slide 13: When industry drivers change customer behaviour, we adapt

    When industry drivers change customer behaviour, we adapt NEW TECHNOLOGY IMPATIENT & EMPOWERED BIG GLOBAL CHANGING ACTORS DRIVERS OF COMPETITIVE CHANGED LANDSCAPE REQUIRE CUSTOMER RELEVANCE BEHAVIOUR INTEGRATED & CONNECTED MACRO INCREASED REGULATORY DYNAMICS REQUIREMENTS 6

  14. Slide 14: Customers drive our vision

    Customers drive our vision Easy to deal with Relevant and competent Anywhere and anytime Personal and digital relationship Safe and trusted 7

  15. Slide 15: The mobile as the core of an omnichannel experience

    The mobile as the core of an omnichannel experience Online and Aggregated face-to-face open banking meetings services Chat, chatbots, Global calls – 24/7 wallets Full service and product provider Local providers 8

  16. Slide 16: A challenging transformation

    A challenging transformation Developing the service model De-risking and margin increase AML maturity Moving HQ to Finland Increased competition and new Panama entrants IT transformation Confidential

  17. Slide 17: Challenging years 2016-2018

    Challenging years 2016-2018 Weak Angry business customers momentum Volumes Unengaged down people AML HQ move issues New regu- IT-systems lations 10

  18. Slide 18: Challenging years affecting the business

    Challenging years affecting the business Net flows savings (SEKbn, Deposit & Inv products) Market shares mortgages and Nordea's share of market growth 6,00 10,00% 15,50% 5,00% 15,00% 4,00 14,50% 2,00 0,00% 14,00% -5,00% 0,00 13,50% -10,00% 13,00% -2,00 -4,00 11

  19. Slide 19: Comeback Sweden

    Comeback Sweden Re-introduced personal advisors New mobile app Remote advisory on customer Enhanced digital savings offering terms Competitive mortgage margins Customer events Improved home owner journey Open thinking - outside in Tight cooperations People culture 12 We care, we fix Confidential

  20. Slide 20: Satisfaction boost

    Satisfaction boost Customer satisfaction Employee satisfaction 40 70 20 60 0 50 -20 40 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 -40 13

  21. Slide 21: The turn of business trends

    The turn of business trends Net flows savings (SEKbn, Deposit & Inv products) Market shares mortgages (Nordea's share of market growth) 6,00 15,00% 4,00 10,00% 2,00 5,00% 0,00 0,00% -2,00 -5,00% -4,00 -10,00% 14

  22. Slide 22: A leading new mobile bank according to our customers

    A leading new mobile bank according to our customers App store rating of bank apps in Sweden 5 4,5 4 3,5 Average 3,46 3 2,5 2 1,5 1 0,5 0 258’ ratings Nisch bank Universal bank

  23. Slide 23: Mortgages - closing the gap

    Mortgages - closing the gap Market share and share of growth New and lost mortgage customers Net customers 1,91% 5,84% New customers Nordea 13,53% 13,85% 13,12% Lost customers 20,22% SEB 13,76% 15,80% 17,02% 3 036 3 030 2 988 2 326 2 091 2 223 2 413 2 123 2 097 2 198 2 435 SHB 22,47% 22,38% 16,09% 1

  24. Slide 24: Building on the positive trend

    Building on the positive trend Offering value proposition Ramping up digital sales Omnichannel experience Enhanced focus on partnerships Improved savings customer Consumer finance journey 17 Structured re-profiling of physical We care, we fix arenas PSD 2 possibilities Customer oriented brand with g

  25. Slide 25: Thank you!

    Nordea Thank you!

  26. Slide 26: Appendix

    Nordea Appendix

  27. Slide 27: Price comparison

    Price comparison Average 3M interest rate 1,78 1,76 1,74 1,72 1,70 1,68 LF 1,66 Swedbank 1,64 1,62 SHB 1,60 Danske Bank 1,58 Nordea 1,56 1,54 1,52 1,50 1,48 SEB 1,46 1,44 SBAB 1,42 1,40 1,38 1,36 Skandia 1,34 1,32 1,30 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-

  28. Slide 28: Digital @ If

    Sampo Group Analyst Day DIGITAL @ IF Morten Thorsrud, CEO Ingrid Janbu Holthe, Head of BA Private

  29. Slide 29: 6M 2019 update – key financial figures

    6M 2019 UPDATE – KEY FINANCIAL FIGURES Meur 6M 2019 6M 2018 CHANGE % GWP 2 772 2 701 4,3%¹ Technical result 334 306 9,2% Investment result 127 128 -0,8% Operating result 440 415 6,0% Risk Ratio 63,0% 64,0% -1,0%-p Cost Ratio 21,7% 21,8% -0,1%-p Combined Ratio 84,7% 85,8% -1,1%-p Investment result MT

  30. Slide 30: Premium growth and combined ratio development

    PREMIUM GROWTH AND COMBINED RATIO DEVELOPMENT GWP Growth Combined ratio 85,2%¹ 84,5% 85,7% 85,1% 83,0% 4,3% 3,4% 0,9% 0,0% -0,3% 6M 2015 6M 2016 6M 2017 6M 2018 6M 2019 Q2 2015 Q2 2016 Q2 2017 Q2 2018 Q2 2019 Excluding currency effects ¹ Excluding non-recurring items

  31. Slide 31: High price for risk – substantial efficiency potential in the insurance industry

    HIGH PRICE FOR RISK – SUBSTANTIAL EFFICIENCY POTENTIAL IN THE INSURANCE INDUSTRY High price for risk – transaction cost Substantial efficiency potential 10-15 Illustrative example – Nordic P&C insurance: 100 20-30 Premiums: ~ € 26 bn Assumed cost base: ~ € 8 bn 55-70 Efficiency potential 10-20%: € 0

  32. Slide 32: Continued high level of investments in IT and digital solutions

    CONTINUED HIGH LEVEL OF INVESTMENTS IN IT AND DIGITAL SOLUTIONS DIGITAL RELATED INVESTMENTS Total it development cost % OF TOTAL IT DEVELOPMENT COST meur 27% 66 2014 2019F 2014 2019F

  33. Slide 33: Waypoint – Nordic core insurance system

    WAYPOINT – NORDIC CORE INSURANCE SYSTEM Efficiency One integrated price and production system serving all markets Business value Delivering underwriting excellence in practice Quality World class competence and technology platform

  34. Slide 34: Simplified customer journey, car damage recognition, multiple vehicle webshop

    Simplified customer journey Car damage recognition Multiple vehicle webshop Track my claim Artificial intelligence Telematics – pay per mile chatbots Ecosystem partnerships

  35. Slide 35: Competitive edge in the Nordic market due to size, digital distribution and partnerships

    COMPETITIVE EDGE IN THE NORDIC MARKET DUE TO SIZE, DIGITAL DISTRIBUTION AND STRATEGIC PARTNERSHIPS. IMPORTANCE OF NORDIC SCALE IS INCREASING Scale advantage as the biggest P&C Increasingly digital insurance policy Credibility as a partner with several insurer in the Nordics distribution existing par

  36. Slide 36: Digitalization is impacting all parts of our operating model

    DIGITALIZATION IS IMPACTING ALL PARTS OF OUR OPERATING MODEL Requires all parts to be more analytics and customer insight driven CRM & Customer Marketing service Product & pricing Digital Partners sales & service Claims

  37. Slide 37: Digital channels in a key role in our distribution model

    DIGITAL CHANNELS IN A KEY ROLE IN OUR DISTRIBUTION MODEL Our distribution model relies largely on customer centers, Characteristics of other players’ distribution partners and digital channels1 models vary significantly by country Customer Centers • Direct and remote distribution dominating with a f

  38. Slide 38: Digital, flagship-focused operating model across countries

    WE HAVE ADOPTED A DIGITAL, FLAGSHIP-FOCUSED OPERATING MODEL ACROSS COUNTRIES Shift to a digital, flagship-focused operating model has allowed Large share of customer activities are currently carried us to reduce the number of branch offices out online Total # of branch offices1 % of customers are E-

  39. Slide 39: Insurance distribution is becoming increasingly data driven

    INSURANCE DISTRIBUTION IS BECOMING INCREASINGLY DATA DRIVEN Insurance distribution is becoming increasingly complex and Analytics play a key role in understanding customer behavior customers will have multiple channels to choose from and responding to ever-changing customer needs Machine learning mo

  40. Slide 40: Large share of online sales and self service requires seamless processes

    LARGE SHARE OF ONLINE SALES AND SELF SERVICE REQUIRES SEAMLESS PROCESSES ACROSS CHANNELS Web shop for customers Web shop for front liners • Same pricing and products across channels • Holistic overview of the customer across channels • Similar solutions for customers and front liners to ensure smoot

  41. Slide 41: Advanced solutions to recognize insurance fraud

    ADVANCED SOLUTIONS TO RECOGNIZE INSURANCE FRAUD “Questionable customer” “Normal customer” Car insurance Phone Claim Terminated Phone insurances Address Home Car Investigation insurance insurance Address Claim Claim Terminated Car insurance insurance Claim Car House insurance Claim Car House insuranc

  42. Slide 42: Slide 42

  43. Slide 43: Finnish Life Insurance Landscape

    Finnish Life Insurance Landscape Petri Niemisvirta CEO, Mandatum Life

  44. Slide 44: Life Insurance Market in Finland

    Life Insurance Market in Finland

  45. Slide 45: Household assets 2018 (Bn€)

    Household assets 2018 (Bn€) 8,1 Average growth (p.a.) 83,1 100,2 Asset class 2012-2018 2015-2018 Deposits 2,7% 4,7% Insurance savings 3,3% -2,1% Stocks 4,6% 1,2% Funds 7,5% 4,3% Unlisted stocks 8,2% 4,3% 23,0 Others -6,1% -8,3% 33,0 55,6 Deposits Insurance savings Stocks Funds Unlisted stocks Others

  46. Slide 46: Life Insurance Savings

    Life Insurance Savings Finland 12/2018 Corporate Private households Total 12 704 m€ Total 36 100 m€ 6 855 6 068 6 636 29 245 WP UL WP UL

  47. Slide 47: Mandatum Life's market shares of total life insurance premiums

    Mandatum Life’s market shares of total life insurance premiums* of Corporate and Private customers in Finland 1.-12.2018 Corporate customers, Market shares Private customers, Market shares 60% 25% 53,1 %52,4 % 52,5 % 22,6 % 50% 48,5 % 47,5 % 19,9 % 20% 40,3 %40,1 % 42,0 % 17,0 % 40% 14,9 % 15% 27,8

  48. Slide 48: Competitive landscape within Mandatum Life businesses

    Competitive landscape within Mandatum Life businesses Pension Life Insurance Life Insurance, Savings and Investment Banking, Wealth Management Life Insurance, Risk Insurance P&C

  49. Slide 49: Pensions

    Pensions 14.8.2019 7

  50. Slide 50: Finnish demographics – population's age structure

    Finnish demographics Population’s age structure 31.12.2018 1865 - 2018 % of total Male Age Female population Age / % 2010 2020* 2030* 2040* 2050* 2060* Pensioners living in Finland 1000 persons 0 - 14 17 16 14 13 13 12 15 - 64 66 62 60 60 59 57 Other population Source: Kela -65 18 23 26 27 29 31 Pop

  51. Slide 51: Trends

    Trends High pressure towards statutory pension system Role of individual savings and planning growing 14.8.2019 9

  52. Slide 52: Pressure doesn't create action … yet

    Pressure doesn’t create action … yet Household savings-% 1975 - 2018

  53. Slide 53: Development of insurance savings in Group pension market

    Development of insurance savings in Group pension market Unit linked Group pension, market Unit linked Group pension, ML 1 400 000 1 200 000 1 189 515 1 000 000 EUR 1000 800 000 846 085 796 911 600 000 572 685 515 492 400 000 363 622 200 000 0 14.8.2019 11

  54. Slide 54: Mandatum Life actions

    Mandatum Life Actions • Mandatum Life has dominant position in Finnish pension market ⎯ Mandatum Life is operating as a market maker ⎯ New sales from corporate market ⎯ Private customer’s individiual pension savings only through old individual pension portfolio • Reward and remuneration consultancy

  55. Slide 55: Investments

    Investments 14.8.2019 13

  56. Slide 56: Household assets

    Household assets Finland 12/2018 Household assets 1997 Q4 – 2018 Q4 Average wealt according to age group mEur Eur Funds Stocks Insurance Unlisted stocks Deposits All > Net wealth (investments – debts) • Asset base reflects the low savings intencity • Undeveloped savings culture • Organic growth stil

  57. Slide 57: Development of insurance savings in Endowment market

    Development of insurance savings in Endowment market Unit linked Endowment, market Unit linked Endowment, ML 20 000 000 18 000 000 17 375 337 16 000 000 15 275 805 14 000 000 12 000 000 EUR 1000 10 000 000 8 000 000 8 421 633 6 000 000 5 238 548 4 000 000 2 000 000 2 101 133 2 193 235 1 028 953 1 29

  58. Slide 58: Development of insurance savings in Capital redemption market

    Development of insurance savings in Capital redemption market Unit linked Capital redemption, market Unit linked Capital redemption, ML 12 000 000 11 042 462 10 000 000 8 000 000 7 675 559 EUR 1000 6 000 000 4 000 000 2 519 170 2 000 000 1 959 020 1 676 652 728 756 0 14.8.2019 16

  59. Slide 59: Development of insurance savings in corporate customers Capital redemption market

    Development of insurance savings in corporate customers Capital redemption market Unit linked Capital redemption, corporate customers, market Unit linked Capital redemption, corporate customers, ML 4 000 000 3 666 574 3 500 000 3 000 000 2 500 000 EUR 1000 2 143 823 2 000 000 1 795 891 1 500 000 1 0

  60. Slide 60: Mandatum Life actions

    Mandatum Life Actions • Growth through institutional clients and HNWI-operation ⎯ Unique investment possibilities with Sampo Group ⎯ Strong growth within alternative investments • Broadening the offered solution scope ⎯ Direct fund offering through Lux fund company ⎯ New trading platform with Saxo b

  61. Slide 61: Danske Cooperation

    Danske Cooperation Upside potential after several modest years

  62. Slide 62: Danske Bank's life insurance annual premiums in Finland

    Danske Bank´s life insurance annual premiums in Finland Fall 2016: Mandatum Life announce 500 473 466 not to continue agency Millions 450 439 agreement 408 400 June 2018: New agency agreement signed between Danske and 350 Mandatum. 318 Mutually agreed focus areas: 1) Loan insurance, Fall 2018 300 27

  63. Slide 63: New loan insurance policies and offers in Finland

    New loan insurance policies and offers in Finland New policies Offers (right axis) • Clear growth in volumes after signing of new agency agreement. • Further growth expected • Sales ratio (new loan insurance/new mortgage loan) increased from all time low 8 % to current 25 %. Year end target level 35

  64. Slide 64: Danske Cooperation status

    Danske Cooperation Status • Cooperation revitalizing agenda • Other notable factors ⎯ Danske has a new and committed management 1. Increasing the loan insurance penetration within ⎯ New insurance sales oriented KPI-package new mortgages back to 40 % target level implemented ⎯ Mandatum Life managed a

  65. Slide 65: Thank You!

    ~y ES | qeeeven ~ i I, ANDATUM LIFE

  66. Slide 66: Sampo Group's Capital Position

    Sampo Group’s Capital Position Analyst Day, 15 August 2019 Knut Arne Alsaker, Group CFO, Sampo Group Kai Sotamaa, GCRO, Sampo Group

  67. Slide 67: Disclaimer

    15 August 2019 Disclaimer This presentation may contain forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Sampo believes that the expectations reflected in such forward looking statements are reasona

  68. Slide 68: Agenda

    15 August 2019 Agenda 1) Sampo Group Solvency • FICO and SII Solvency as of 30 June 2019 • Changes in SII from Q1 -> Q2 2) Timeline for Nordea Deconsolidation Expected by Sampo NOTE: In this presentation “Nordea deconsolidation” refers to the distribution of an extra dividend in the form of Nordea s

  69. Slide 69: Sampo Group Solvency 30 June 2019

    15 August 2019 Sampo Group Solvency 30 June 2019 Own Funds and Solvency by FICO Rules Eligible Own Funds and Solvency June 30th 2019 by Solvency II Rules EURm Group Solvency ratio 130%* EURm Ratio of Eligible Own Funds to Group SCR 137% 12 000 * Includes a deducted EUR 791 m dividend (proportionally

  70. Slide 70: Change in S-II Solvency Ratio During Q2

    15 August 2019 Change in S-II Solvency Ratio During Q2 5

  71. Slide 71: Nordea Deconsolidation Timeline Expected by Sampo

    15 August 2019 Nordea Deconsolidation Timeline Expected by Sampo Nordea share dividending FICO termination Solvency II 7.8.2019 The resolution on distribution of Application to the FIN FSA an extra dividend in the form of (FICO termination) Nordea shares mid-August – The FIN FSA consults the other m

  72. Slide 72: Nordea's Capital Requirement for Sampo Own Funds, 30 June 2019

    15 August 2019 Nordea’s Capital Requirement for Sampo Own Funds, 30 June 2019 EURm 8 000 7 000 6 719 6 000 5 498 5 000 4 596 4 596 Nordea is a well capitalized bank: • CET1 ratio 14.8% 4 000 • Total capital ratio 19.8% 3 000 69% 68% 84% • AA rated 2 000 1 000 0 21% of Nordea's 21% of Nordea's Market

  73. Slide 73: Nordea's Capital Requirement for Sampo Own Funds, Pro forma 1 January 2020

    15 August 2019 Nordea’s Capital Requirement for Sampo Own Funds, Pro forma 1 January 2020 with an Average ECB P2R of 1.8% EURm 8 000 7 000 6 719 6 000 5 677 5 677 4 871 5 000 4 000 3 000 84% 117% 2 000 1 000 0 21% of Nordea's 21% of Nordea's Market value of 21% of Nordea's Own funds Capital requirem

  74. Slide 74: Group Solvency Nordea Deconsolidation – S-II Own Funds

    15 August 2019 Group Solvency Nordea Deconsolidation – S-II Own Funds EURm 14 000 12 000 10 000 90 8 000 7 088 4 557 6 000 11 654 4 000 9 213 2 000 0 Own funds 30.6.19 Nordea's book value Nordea's market Intangibles and Pro forma own funds deducted value added sectoral items deducted, net impact 9

  75. Slide 75: Extra Dividend in the Form of Nordea Shares

    15 August 2019 Extra Dividend in the Form of Nordea Shares Effects on Sampo plc level EURm EURm Dividending out at book value of EUR 6.46, 359 decrease of associate share No. of shares held at 30.6.2019 21.25%, 860.4 million Shares at fair value of EUR 5.66/sh 314 No. of shares to be distributed Rea

  76. Slide 76: Nordea as Equity Investment After Extra Dividend and S-II Deconsolidation

    15 August 2019 Nordea as Equity Investment After Extra Dividend and S-II Deconsolidation Eligible Own Funds/Group SCR 137% Eligible Own Funds/Group SCR 168% EURm Buffer * 14 000 Nordea Consolidated Group + others EUR 3,127m 12 000 EUR 2,335m Buffer excl. dividend EUR 3,731m 10 000 8,527 EUR 2,940m 8

  77. Slide 77: Pro forma issuing capacity, Q2/2019

    15 August 2019 Pro forma issuing capacity, Q2/2019 Q2/2019 EURm Additional issuing capacity * EURm Total Tier 2 capacity Tier 1 8,179 Restricted Tier 1 132 Restricted Tier 1 (20% of T1) 1,913 Tier 2 885 Tier 2 (50% of SCR) 1,856 2,741m or Tier 3 17 Tier 3 (15% of SCR) 805 Own Funds 9,213 and Tier 2

  78. Slide 78: Group Solvency Nordea Deconsolidation

    15 August 2019 Group Solvency Nordea Deconsolidation EURm 14 000 Solvency ratio 137% Solvency ratio 168% 12 000 10 000 8,527 8 000 4 664 -4 596 5,482 6 000 11 654 23 10 68 3,931 1 518 9 213 4 000 68 5 413 2 000 3 862 3 862 0 OF 19Q2 SCR 19Q2 Deduct Nordea SCR without Add Nordea Add Add spread risk S

  79. Slide 79: Sampo Group Solvency Sensitivities to Market Risk Factors

    15 August 2019 Sampo Group Solvency Sensitivities to Market Risk Factors / 30.6.2019 (pro forma with S-II deconsolidated Nordea 5,66 EUR/sh.) Change in Solvency Ratio (percentage points) 15 10 5 0 -5 -10 -15 -20 rates: rates: spreads: equity prices: equity prices: equity prices: -100 bps +100 bps +1

  80. Slide 80: Equity Risk and the Symmetric Adjustment (1/2)

    15 August 2019 Equity Risk and the Symmetric Adjustment (1/2) • If equity risk was the only risk factor affecting Own Funds (OF) and SCR (and there would be no S-II Symmetric Adjustment), a solvency ratio (SR = OF/SCR) neutral amount of equity investments would be equal to OF. - This is because now

  81. Slide 81: Equity Risk and the Symmetric Adjustment (2/2)

    15 August 2019 Equity Risk and the Symmetric Adjustment (2/2) • In order to prevent pro-cyclical behavior of equities exposures, the equity capital charge is adjusted with the SA. The calculation of the symmetric adjustment is based on the behavior of an equity index built by EIOPA exclusively for t

  82. Slide 82: Equity Risk and Nordea

    15 August 2019 Equity Risk and Nordea • After S-II deconsolidation of Nordea, its shares constitute over half of Sampo Group’s equity risk exposure. If the Nordea share price moves in tandem with the equity market, its solvency impact is buffered by the SA as a part of Sampo’s overall equity exposur

  83. Slide 83: Spread Risk and the Volatility Adjustment

    15 August 2019 Spread Risk and the Volatility Adjustment • The Volatility Adjustment (VA) is an add-on adjustment to the risk-free interest The VA is calculated as 65% of the risk-corrected spreads of a reference portfolio rates used in valuing insurance liabilities. It mitigates the effect of short

  84. Slide 84: Sampo Group Solvency Sensitivities to Market Risk Factors

    15 August 2019 Sampo Group Solvency Sensitivities to Market Risk Factors / 30.6.2019 (pro forma with S-II deconsolidated Nordea 5,66 EUR/sh.) rates: rates: spreads: equity prices: equity prices: equity prices: Solvency II no changes -100 bps +100 bps +100 bps -10 % -20 % -30 % Solvency Ratio 168 % 1

  85. Slide 85: Summary

    15 August 2019 Summary • Change of SII calculation basis as of 30th September • FICO termination process expected to end by 6th November • Pro forma Solvency ratio as of 30.6.2019: 168% • Accounting loss of EUR 155m booked in Q3 • Net capital generation of appr. EUR 1 billion • Solvency can withstan

  86. Slide 86: Analyst Day

    Analyst Day 15 AUGUST 2019 Sampo plc Fabianinkatu 27 00100 Helsinki, Finland Phone: +358 10 516 0100 Business ID: 0142213-3 www.sampo.com @Sampo_plc sampo-plc

Sampo Group — Investor Day (August 2019) on 6ix