SAMPO OYJ
TIDMSAMPO
SAMPO PLC INTERIM STATEMENT 4 November
2020 at 9:40 am
Sampo Group's Results for January -- September 2020
In the third quarter of 2020 Sampo Group's largest subsidiary, If P&C,
again delivered an excellent technical result and, in addition, the
market values of the investment assets continued to appreciate and
approached the pre-COVID-19 levels. The Group's good result was
supported by Nordea's strong development. Sampo Group's profit before
taxes for January-September 2020 was EUR 1,054 million (1,073). The
total comprehensive income, taking changes in the market value of assets
into account, amounted to EUR 665 million (879) for January-September
2020 and EUR 632 million (-116) for the third quarter of 2020 alone.
- Earnings per share were EUR 1.51 (1.38) and mark-to-market earnings
per share was EUR 1.12 (1.44). Return on equity for the Group amounted
to 7.0 per cent (9.2) for the first three quarters of 2020. The net
asset value per share on 30 September 2020 was EUR 18.63 (18.90).
-If segment's profit before taxes amounted to EUR 616 million (655). The
combined ratio for January -- September 2020 amounted to 82.4 per cent
(84.3). The discount rate used to discount the annuity reserves in
Finland was lowered from 0.95 per cent to 0.75 per cent. Excluding the
discount rate reduction, the January-September 2020 combined ratio was
80.9 per cent. Premiums grew by 5.2 per cent on a fixed currency basis.
All business areas and all markets recorded growth.
-If P&C will pay a dividend of SEK 6,300 million (approx. EUR 600
million) to Sampo plc in December 2020.
-Topdanmark segment's profit before taxes decreased to EUR 85 million
(180) and the combined ratio deteriorated to 85.7 per cent (80.5).
-Nordea's performance in the third quarter of 2020 was strong. Sampo's
share of Nordea's net profit for January-September 2020 amounted to EUR
299 million (147). Nordea intends to pay out a dividend for the
financial year 2019 and the Board will review the situation in the
fourth quarter of 2020 in the light of any further European Central Bank
communication.
-Profit before taxes for the Mandatum segment amounted to EUR 100
million (212). For the first time in Mandatum Life's history the amount
of with-profit reserves with higher guarantees of 4.5 and 3.5 per cent
decreased below EUR 2.0 billion.
-Sampo and Rand Merchant Investment Holdings Limited (RMI) announced a
recommended cash offer to acquire all issued and to be issued shares in
Hastings Group Holdings Plc not currently owned or controlled by Sampo
and RMI on 5 August 2020. The Offer is subject to certain conditions,
including the receipt of certain regulatory and antitrust approvals. All
of the conditions relating to regulatory and antitrust approvals have
now been satisfied and a Court Hearing to sanction the Scheme is
anticipated to be held on 13 November 2020.
Change, Change,
KEY FIGURES 1-9/2020 1-9/2019 % 7-9/2020 7-9/2019 %
------------------------ -------- -------- ------- -------- -------- -------
EURm
------------------------ -------- -------- ------- -------- -------- -------
Profit before taxes 1,054 1,073 -2 485 92 425
------------------------ -------- -------- ------- -------- -------- -------
If 616 655 -6 233 215 8
------------------------ -------- -------- ------- -------- -------- -------
Topdanmark 85 180 -53 46 34 35
------------------------ -------- -------- ------- -------- -------- -------
Associates *) 308 0 - 170 -227 -
------------------------ -------- -------- ------- -------- -------- -------
Mandatum 100 212 -53 60 75 -20
------------------------ -------- -------- ------- -------- -------- -------
Holding (excl.
associates) -53 26 - -25 -6 -333
------------------------ -------- -------- ------- -------- -------- -------
Profit for the period 881 848 4 412 22 1,777
------------------------ -------- -------- ------- -------- -------- -------
Change Change
------------------------ -------- -------- ------- -------- -------- -------
Earnings per share, EUR 1.51 1.38 0.13 0.70 0.01 0.69
------------------------ -------- -------- ------- -------- -------- -------
EPS (based on OCI) EUR 1.12 1.44 -0.32 1.10 -0.24 1.34
------------------------ -------- -------- ------- -------- -------- -------
NAV per share, EUR **) 18.63 20.71 -2.08 - - -
------------------------ -------- -------- ------- -------- -------- -------
Average number of staff
(FTE) 10,309 9,769 540 - - -
------------------------ -------- -------- ------- -------- -------- -------
Group solvency ratio,
% **) 214 167 47 - - -
------------------------ -------- -------- ------- -------- -------- -------
RoE, % 7.0 9.2 -2.2 - - -
------------------------ -------- -------- ------- -------- -------- -------
*) the valuation loss of EUR -155 million on distribution of Nordea
shares in Q3/2019 is included in the comparison figures
**) comparison figure from 31.12.2019
The figures in this report have not been audited. Income statement items
are compared on a year-on-year basis and comparison figures for balance
sheet items are from 31 December 2019, unless otherwise stated.
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
https://www.globenewswire.com/Tracker?data=VtcZaM5XomdKrs_UGU9xP8y8ZGhiaK8OwGKsKrrHgfaX4z1FKH7w6hspoIZVcXPWiricSgVulA_u3L8A8v-ck-pGH4GtuBQC_DhogtIaG94=
www.sampo.com/result.
EXCHANGE RATES USED
IN REPORTING 1-9/2020 1-6/2020 1-3/2020 1-12/2019 1-9/2019
--------------------------- -------- -------- -------- --------- --------
EURSEK
--------------------------- -------- -------- -------- --------- --------
Income statement (average) 10.5622 10.6621 10.6649 10.5853 10.5679
--------------------------- -------- -------- -------- --------- --------
Balance sheet (at end
of period) 10.5713 10.4948 11.0613 10.4468 10.6958
--------------------------- -------- -------- -------- --------- --------
DKKSEK
--------------------------- -------- -------- -------- --------- --------
Income statement (average) 1.4157 1.4280 1.4279 1.4183 1.4158
--------------------------- -------- -------- -------- --------- --------
Balance sheet (at end
of period) 1.4197 1.4813 1.4813 1.3982 1.4326
--------------------------- -------- -------- -------- --------- --------
NOKSEK
--------------------------- -------- -------- -------- --------- --------
Income statement (average) 0.9857 0.9932 1.0195 1.0749 1.0816
--------------------------- -------- -------- -------- --------- --------
Balance sheet (at end
of period) 0.9523 0.9618 0.9610 1.0591 1.0809
--------------------------- -------- -------- -------- --------- --------
EURDKK
--------------------------- -------- -------- -------- --------- --------
Income statement (average) 7.4581 7.4648 7.4714 7.4661 7.4644
--------------------------- -------- -------- -------- --------- --------
Balance sheet (at end
of period) 7.4462 7.4526 7.4674 7.4715 7.4662
--------------------------- -------- -------- -------- --------- --------
GROUP CEO'S COMMENT
Sampo Group is pleased to report strong results for the third quarter of
2020. The largest profit contributor, If P&C, continued to deliver an
excellent underwriting performance combined with healthy top-line growth
above 5 per cent. In addition, investment results were supported by the
capital market developments. The markets continued to be backed by
policymakers and central banks, and the good liquidity together with the
strong risk appetite led asset prices to recover towards the
pre-COVID-19 levels.
Encouragingly, Nordea produced a solid set of numbers and increased both
its efficiency and market shares. The bank exceeded investor
expectations on virtually all lines and remains committed to meeting the
financial targets 2022. Nordea's strong financial position also means
that it is well-placed to pay out dividends. The bank intends to pay a
dividend for the financial year 2019, given necessary regulatory
approvals.
In addition to Nordea's dividend statement, I received confirmation this
week that If P&C has decided to distribute a dividend of SEK 6,300
million in December of this year. Topdanmark has also repeated its
earlier commitment to pay the remainder of its 2019 dividend and with
Mandatum having a very solid solvency position, I am confident that
Sampo will have no cash flow issues as regards distributing a dividend
in the spring in accordance with the dividend policy.
I am pleased to report that the recommended cash offer to acquire
Hastings Group Holdings Plc, which Sampo made together with RMI on 5
August 2020, is proceeding according to plan. The offer was approved by (MORE TO FOLLOW) Dow Jones Newswires
11-04-20 0255ET
