TIDMSAMPO 
 
 
   SAMPO PLC                INTERIM STATEMENT        5 May 2021 at 9:30 am 
 
   Sampo Group's results for January -- March 2021 
 
   Sampo Group had a strong start to the year in all business areas. Profit 
before taxes for January -- March 2021 rose to EUR 632 million (162) and 
earnings per share increased to EUR 0.82 (0.26). Mark-to-market earnings 
per share saw a positive year-on-year increase of more than three euros 
per share to EUR 1.39 (-1.71). 
 
   Sampo Group's core business, P&C insurance, reported the strongest 
underwriting results in its history. Group underwriting profits grew by 
37 per cent year-on-year to EUR 317 million driven by a 4.5 percentage 
point improvement in the combined ratio to 81.2 per cent (85.7). The 
result represents a strong first step towards Sampo's annual financial 
targets of mid-single digit growth in underwriting profits and a 
combined ratio below 86 per cent. COVID-19 effects supported 
underwriting margins but underlying development was nonetheless strong. 
 
   The Group's largest business unit, If P&C, reported underwriting profit 
of EUR 213 million with growth of 18 per cent year-on-year and a 
combined ratio of 81.5 per cent, both of which are the best-ever 
recorded in a first quarter. Following the strong performance in the 
quarter, If's 2021 combined ratio outlook has been improved to 82 - 84 
per cent, well in line with the target of below 85 per cent. Favourable 
investment markets further supported earnings, leading profit before 
taxes to almost double to EUR 257 million (129). 
 
   Topdanmark's profit before taxes for January-March 2021 amounted to EUR 
137 million (-13) in Sampo Group's consolidated accounts. The combined 
ratio improved to 84.7 per cent (88.7). 
 
   Hastings achieved strong underwriting margins in the first quarter of 
2021, supported by lower claims frequencies as a result of COVID-19 
restrictions and the ongoing progress on strategic and operational 
initiatives. Hastings' operating ratio for the first quarter was 75.1 
per cent and the profit before taxes was EUR 46 million. Pressure on UK 
motor pricing led Hastings to take a disciplined underwriting approach, 
as a result of which the number of live customer policies remained 
stable over the quarter at 3.1 million (7 per cent growth year-on-year). 
 
   The profit before taxes for Mandatum in January -- March 2021 amounted 
to EUR 76 million (-16). Benign investment markets drove a strong 
mark-to-market investment return of 3.5 per cent and a rise in the 
Solvency II ratio to 200 per cent (188). Unit linked assets under 
management increased to EUR 9.2 billion. A reduction in the discount 
rate for with-profit liabilities had a negative impact of EUR 31 million 
in the quarter, while with-profit reserves relating to the higher 
guarantees (4.5 and 3.5 per cent) decreased to EUR 1.8 billion (1.9). 
 
   Sampo's share of Nordea's net profit for the first quarter of 2021 was 
EUR 121 million (84). 
 
   The Group Solvency II ratio of 189 per cent stood within the target 
range of 170 -- 190 per cent, while Group financial leverage ratio of 28 
per cent met the target of below 30 per cent. 
 
   Return on equity for the Group amounted to 26.0 per cent (-33.2) for the 
first quarter of 2021. Net asset value per share on 31 March 2021 was 
EUR 23.28 (19.82). 
 
   Sampo plc's Annual General Meeting will be held on 19 May 2021. The 
Board has proposed on 11 February 2021 to the Annual General Meeting a 
dividend of EUR 1.70 per share (1.50). The proposed dividend payment 
amounts in total to EUR 944 million (833). 
 
 
 
 
                                                 Change, 
Key figures                  1-3/2021  1-3/2020        % 
---------------------------  --------  --------  ------- 
EURm 
---------------------------  --------  --------  ------- 
Profit before taxes               632       162      290 
---------------------------  --------  --------  ------- 
If                                257       129       99 
---------------------------  --------  --------  ------- 
  Topdanmark                      137       -13        - 
---------------------------  --------  --------  ------- 
Hastings                           46         -        - 
---------------------------  --------  --------  ------- 
Associates                        126        86       47 
---------------------------  --------  --------  ------- 
Mandatum                           76       -16        - 
---------------------------  --------  --------  ------- 
Holding (excl. Associates)        -11       -24      -54 
---------------------------  --------  --------  ------- 
Profit for the period             526       139      278 
---------------------------  --------  --------  ------- 
                                                  Change 
---------------------------  --------  --------  ------- 
Earnings per share, EUR          0.82      0.26     0.56 
---------------------------  --------  --------  ------- 
EPS (based on OCI) EUR           1.39     -1.71     3.10 
---------------------------  --------  --------  ------- 
NAV per share, EUR *)           23.28     19.82     3.46 
---------------------------  --------  --------  ------- 
Average number of staff 
 (FTE)                         13,204    10,303    2,901 
---------------------------  --------  --------  ------- 
Group solvency ratio, 
 % *)                             189       176       13 
---------------------------  --------  --------  ------- 
RoE, %                           26.0     -33.2     59.2 
---------------------------  --------  --------  ------- 
 
 
   *) comparison figures of 31 December 2020 
 
   The figures in this report have not been audited. 
 
   Sampo follows the disclosure procedure enabled by the Finnish Financial 
Supervisory Authority and hereby publishes its Interim Statement 
attached as a PDF file to this stock exchange release. The Interim 
Statement is also available at www.sampo.com/result. 
 
   GROUP CEO'S COMMENT 
 
   Sampo delivered strong operational and financial performance in the 
first quarter of 2021, particularly in our strategic focus area of P&C 
insurance. The Group outperformed its primary financial targets, 
reporting underwriting profit growth of 37 per cent and a combined ratio 
of 81.2 per cent (85.7). 
 
   Our largest business unit, If P&C, delivered an excellent result despite 
some wintry Nordic weather. Underwriting profit grew by 18 per cent to 
EUR 213 million on the back of a 2.2 percentage points year-on-year 
improvement in the combined ratio to 81.5 per cent (83.7). This is If 
P&C's best-ever first quarter combined ratio and well within our annual 
target for 2021-2023 of below 85 per cent. Consequently, we have 
improved our outlook for 2021 to 82 -- 84 per cent. Adjusting for 
COVID-19 effects and harsher winter weather, underwriting profit growth 
clearly supported the mid-single digit target for 2021-2023. 
 
   Operationally, If P&C continued to benefit from the investments made in 
IT development, which enable excellent customer service, risk selection 
and cost efficiency. Customer satisfaction in If Private increased over 
the quarter and retention remained high. If P&C also benefitted from its 
strong Nordic partnership network, taking a leading share in a new car 
market that grew by 11 per cent year-on-year. 
 
   Our digital UK P&C insurance business, Hastings, also outperformed its 
targets on loss ratio and operating ratio in the first quarter of 2021. 
The result was partly attributable to the UK lockdown, which led to low 
motor claims frequencies, but at the same time pricing trends have 
become more challenging. Hastings is taking a disciplined approach in 
the current market, keeping motor insurance customer count broadly 
stable over the quarter (7 per cent growth year-on-year). The strength 
of Hastings' business model, combined with ongoing operational 
improvements, gives me confidence in its ability to deliver growth at 
attractive margins over the medium term. 
 
   The integration of Hastings into Sampo has proceeded according to plan 
in the first quarter. A number of specific areas have been identified 
for knowledge transfer that are expected to bring concrete operational 
benefits to both If and Hastings. The group will continuously update the 
market on progress. 
 
   Sampo was well placed to profit from the buoyant capital markets 
environment in the first quarter of 2021. Our 15.9 per cent investment 
in Nordea benefitted from higher interest rates and improved sentiment 
toward banks; combined with robust operational performance, this drove a 
share price increase of 26 per cent over the quarter. The environment 
also favoured Mandatum Life, which saw a rise in its Solvency II ratio 
to 200 per cent and strong growth in unit-linked assets under 
management. 
 
   Turning to ESG, I am pleased to report that Sampo has taken another step 
in the right direction with an upgrade from Sustainalytics to Low Risk. 
Sampo is now in the top five of the 71 insurers rated by Sustainalytics 
and the highest rated insurer with a market cap of EUR 20 -- 40 billion. 
Nonetheless, I see room to further improve our ESG performance and feel 
it is important to continue to develop opportunities in this area. 
 
   At our February Capital Markets Day, my colleagues and I laid out 
Sampo's new, P&C-focussed strategy and financial targets, placing 
underwriting profitability at the core of our ambitions. The first 
quarter has represented a solid first step in executing against these 
objectives. Given our strong positioning and business plan, I feel 
confident about the Group's trajectory in 2021 and beyond. 
 
   Torbjörn Magnusson 
 
   Group CEO and President 
 
   OUTLOOK 
 
   Outlook for 2021 
 
   Sampo Group's insurance businesses are expected to report good insurance 
technical results for 2021, although the mark-to-market component of 
investment returns will be significantly influenced by capital markets' 
developments, particularly in life insurance.

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