loss buffers, the bank is well prepared to meet the challenges ahead. 
 
   Of all our business areas, Mandatum Life is the most exposed to the 
volatility in the financial markets. At the same time Mandatum is the 
one to benefit most from the upturn in the equity markets as witnessed 
in the second quarter of this year when the other comprehensive income 
rose to EUR 234 million. The company's Solvency II ratio continues to be 
solid at 201 per cent. 
 
   Torbjörn Magnusson 
 
   Group CEO and President 
 
   SECOND QUARTER 2020 IN BRIEF 
 
   Sampo Group's profit before taxes for the second quarter of 2020 was EUR 
407 million (506). Earnings per share was EUR 0.55 (0.73) and 
mark-to-market earnings per share EUR 1.73 (0.74). 
 
   Net asset value per share increased EUR 1.63 during the second quarter 
of 2020 and was EUR 16.99. The net asset value increased mainly because 
of equity market recovery, and particularly, the increase in Nordea's 
share price. 
 
   If's combined ratio for the second quarter of 2020 amounted to 80.5 per 
cent (83.0). Profit before taxes amounted to EUR 254 million (242). 
 
   Topdanmark's combined ratio for the second quarter 2020 amounted to 79.7 
per cent (79.8) and profit before taxes to EUR 52 million (53). 
 
   Sampo's share of Nordea's second quarter 2020 net profit was EUR 48 
million (140). 
 
   Profit before taxes for Mandatum amounted to EUR 55 million (65). 
Premiums written decreased to EUR 210 million (291). 
 
   EFFECTS OF COVID-19 ON SAMPO GROUP 
 
   Personnel and customer relations 
 
   Sampo Group has followed the recommendations from authorities in its 
respective countries both during the lock-down in the acute phase of the 
crisis as well as now that societies are gradually re-opening in The 
Nordic and Baltic countries. 
 
   In Sampo Group's biggest subsidiary If P&C, 6,000 of more than 7,000 
employees have been working remotely during the crisis and the remainder 
have been working in offices where social distancing measures have been 
observed. Mandatum Life also has followed the government advice and 
continues with remote work. Only a few percent of employees are working 
at the office premises. Also, in Topdanmark 95 per cent of employees 
have been working remotely. 
 
   When the COVID-19 pandemic reached the Nordic countries in mid-March 
2020 priority was given to continuity and continued service and support 
to customers in the best way in the changed working conditions. 
 
   Operational efficiency and availability have been good and early 
indications show sick leave to have declined during the crisis. 
 
   Physical customer visits to our offices have been stopped or are subject 
to extra precautions. Business travel and conferences have also been 
halted. During this period subsidiaries have been able to offer a normal 
service level and customer satisfaction has remained on a high level. 
There has been no disruption in the customer service. 
 
   Insurance business 
 
   If's claims cost for the first six months of 2020 was negatively 
impacted from travel insurance policies primarily following imposed 
government travel restrictions due to COVID-19. At the end of the 
reporting period, the total number of reported claims amounted to just 
over 50 000, corresponding to a gross claims cost of approximately SEK 
400 million (EUR 38 million) mostly in BA Private and Norway. The net 
claims cost is expected to be significantly reduced by a reinsurance 
cover with a net retention for this event of SEK 100 million (EUR 9 
million). 
 
   The lock down activities in the Nordic countries had a positive effect 
on claims cost especially at the beginning of the second quarter of 
2020. The largest factor being reduced traffic on the roads that 
resulted in an extraordinary and temporary decrease in motor claims. 
Towards the end of the period, as governments started to reopen 
societies, claims frequency also returned to a more normal level. At the 
same time an increase in repair costs is likely because of lack of 
material, delays in transportation of material or shortage of personnel 
following implemented government travel restrictions. 
 
   During the second quarter of 2020 there was a clear negative impact on 
premium volume because of the COVID-19 situation. This was a result of 
many variables including fewer new cars sold, decommissioning of 
vehicles and lower insurable sums and goods. 
 
   Mandatum Life's claims cost in January-June 2020 was in line with the 
previous year. Premium income was 6 per cent, EUR 32 million, below the 
previous year in January-June, but in April-June both claims paid and 
premium income were around EUR 80 million below the previous year. 
 
   In its Half-year Report for 2020 published on 17 July 2020 Topdanmark 
described the impact COVID-19 had on its operations. The report is 
available at 
https://www.globenewswire.com/Tracker?data=T6zf9vlueHPz00XhXCTvd7dt6RPLXFpuJGSq-7p3P6dKdjWoFisqYEG42uf2oahbwBFqlppqOQ_9O3_itU_UtmESo31W6T8aVKyFigmyqiU= 
www.topdanmark.com. 
 
   Investment activities 
 
   The swift monetary responses by central banks and governments have 
helped to stabilize the financial markets after the initial shock 
reaction in March 2020. Leading equity indices have rebounded strongly 
and credit spreads on bonds have narrowed since then. 
 
   Companies in Sampo Group have enjoyed good returns in the second quarter 
of 2020. However, the mark-to-market losses in the investment portfolio 
suffered during March -- April 2020 had not been fully recovered by the 
end of the quarter. 
 
   Solvency positions 
 
   The solvency positions of Sampo Group and its subsidiaries remained 
robust in the second quarter of 2020. More information is available in 
the section Solvency. 
 
   Impacts on future operating models 
 
   As Sampo Group's personnel gradually returns to the offices, the Group 
follows the recommendations of authorities in individual countries. This 
means that operations are returning to normal step by step and with 
somewhat varying speed in each country. Social distancing measures are 
still in effect also during the re-opening phase and the principle is to 
offer employees the flexibility to continue working from home for the 
foreseeable future, while re-opening the offices for those employees who 
wish to return. 
 
   The COVID-19 pandemic will have lasting effects on how operations are 
organized in the Group. The crisis has accelerated the digitalization of 
work life. Remote work has proven itself both effective and to be an 
important tool for handling unexpected crises. Going forward, increased 
flexibility will be expected by employees and recruitment candidates. 
 
   Group companies have started several "Post Corona" initiatives relating 
to the use of remote work in the future and the required changes in HR 
and employment relations. 
 
   BUSINESS AREAS 
 
   If 
 
   Profit before taxes for January -- June 2020 for the If segment was EUR 
383 million (440). The total comprehensive income for the period after 
tax was EUR 106 million (462). The combined ratio for the period was 
82.1 per cent (84.7) and the risk ratio was 61.4 per cent (63.0). 
 
   Net releases from the technical reserves relating to the prior year 
claims were EUR 103 million (108) in January-June. The technical result 
increased to EUR 398 million (334). The insurance margin (the technical 
result in relation to the net premiums earned) increased to 18.3 per 
cent (15.7). 
 
   Large claims were EUR 47 million worse than expected in the first half 
of 2020. The Norwegian market was particularly impacted by large loss 
development in the first half. 
 
   The Swedish discount rate used to discount the annuity reserves was 
-0.81 per cent and had a negative effect of EUR 2 million on the profit 
in the first half of 2020. 
 
   Gross written premiums increased to EUR 2,846 million (2,772) in January 
-- June 2020. Adjusted for currency, premium growth was 5.2 per cent 
compared to the corresponding period a year ago. Furthermore, growth was 
positive in all business and market areas -- it was highest in Denmark 
where it accelerated to 12.0 per cent. Gross written premiums grew by 
6.6 per cent in Norway, 4.6 per cent in Sweden, and 2.0 per cent in 
Finland. In BA Industrial, premium growth amounted to 9.4 per cent, in 
BA Commercial it was 6.6 per cent, in BA Baltic it reached 2.1 per cent, 
and in BA Private 3.2 per cent. 
 
   The risk ratio 59.3 (61.2) for the second quarter improved compared to 
last year. This was driven by an underlying improvement from implemented 
actions over a longer period as well as an extraordinary benign 
frequency situation in the second quarter due to the COVID-19 which 
resulted in a significant reduction in traffic and lower activity 
especially at the beginning of the quarter. Towards the end of the 
period claims returned to more normal levels. The positive effect on the 
net risk ratio in the second quarter was approximately 4 percentage 
points. 
 
   The cost ratio was 20.8 per cent (21.7) and the expense ratio was 15.2 
per cent (16.2). 
 
   On 30 June 2020, the total investment assets of If amounted to EUR 10.8 
billion (10.8). 
 
   If's solvency position is described in the section entitled 'Solvency'. 
 
   Topdanmark 
 
   At the end of June 2020, Sampo plc held 41,997,070 Topdanmark shares, 
which corresponds to 46.7 per cent of all shares and 48.1 per cent of 
related voting rights in the company. The market value of the holding 
was EUR 1,544 million on 30 June 2020. 
 
   As a consequence of the COVID-19 situation, only DKK 8.5 of the 
previously announced dividend of DKK 17 per share was paid following the 
AGM on 2 April 2020. Consequently, Sampo received EUR 48 million in 
dividends from Topdanmark on 7 April. 
 
   Topdanmark's Board of Directors has decided to postpone payment of the 
remainder of the dividend for 2019 until the AGM on 25 March 2021. It is 
still the intention to distribute in part or in full the remaining DKK 
8.5 of the previously announced dividend.

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08-05-20 0250ET