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2016-02-10

Sampo Oyj: Sampo Group's results for 2015

SAMPO PLC FINANCIAL STATEMENT RELEASE 10 February 2016 at 9:30 am

SAMPO GROUP'S RESULTS FOR 2015

Sampo Group's profit before taxes improved in all business areas in 2015 and
amounted to a record high EUR 1,888 million (1,759). The total comprehensive
income for the period, taking changes in the market value of assets into
account, increased to EUR 1,564 million (1,179). P&C insurance and Nordea
reported highest ever profits before taxes.

* Earnings per share amounted to EUR 2.96 (2.75). Mark-to-market earnings per
share were EUR 2.79 (2.11). The return on equity for the Group increased to
14.0 per cent for 2015 (10.9). Net asset value per share on 31 December
2015 was EUR 23.79 (22.63).
* The Board proposes to the Annual General Meeting to be held on 21 April
2016 a dividend of EUR 2.15 per share (1.95). The proposed dividend payment
amounts in total to EUR 1,204 million (1,092).
* Profit before taxes for the P&C insurance amounted to EUR 960 million
(931). Combined ratio for the full year 2015 decreased to 85.4 per cent
(87.7). Even adjusted for non-recurring items the combined ratio was better
than ever before at 86.5 per cent. Return on equity (RoE) increased to 21.5
per cent (18.1). Adjusted for currency gross written premiums grew 0.4 per
cent. The contribution of Topdanmark's net profit for 2015 amounted to EUR
43 million (53).
* Sampo's share of Nordea's net profit for 2015 amounted to EUR 751 million
(680). Nordea's RoE rose to 12.3 per cent (11.5) and core Tier 1 ratio
(excluding transition rules) strengthened to 16.5 per cent (15.7). In
segment reporting the share of Nordea's profit is included in the segment
'Holding'. Nordea's Board of Directors proposes to the AGM 2016 a dividend
of EUR 0.64 per share (0.62). If the AGM approves the Board's dividend
proposal, Sampo plc will receive a dividend of EUR 551 million from Nordea
on 30 March 2016.
* In life insurance operations profit before taxes rose to EUR 181 million
(163). Return on equity (RoE) amounted to 12.7 per cent (11.4). Premium
income on own account increased to EUR 1,144 million (1,105). The reserve
for lower discount rates was further strengthened by EUR 109 million during
2015. The rates used for 2016, 2017 and 2018 are 1.0 per cent, 1.25 per
cent, and 2.25 per cent, respectively.

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| KEY FIGURES 2015 2014 Change, % Q4/2015 Q4/2014 Change, % |
| EURm |
| Profit before taxes 1,888 1,759 7 413 447 -8 |
| P&C insurance 960 931 3 204 219 -7 |
| Associate (Nordea) 751 680 10 173 179 -3 |
| Life insurance 181 163 11 48 50 -4 |
| Holding (excl. Nordea) -1 -12 -89 -13 -1 824 |
| Profit for the period 1,656 1,540 8 364 391 -7 |
| Change Change |
| Earnings per share, EUR 2.96 2.75 0.21 0.65 0.70 -0.05 |
| EPS (incl. change in FVR), EUR 2.79 2.11 0.68 0.95 0.14 0.81 |
| NAV per share, EUR 23.79 22.63 1.16 - - - |
| Average number of staff (FTE) 6,755 6,739 16 - - - |
| Group solvency ratio, % 192.6 187.4 5.2 - - - |
| RoE, % 14.0 10.9 3.1 - - - |
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Income statement items are compared on a year-on-year basis and comparison
figures for balance sheet items are from 31 December 2014 unless otherwise
stated.

Sampo follows the disclosure procedure enabled by the Finnish Financial
Supervisory Authority and hereby publishes its Financial Statement Release
attached as a PDF file to this stock exchange release. The Financial
Statement Release is also available atwww.sampo.com/result.

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| Exchange rates used in reporting 1-12/2015 1-9/2015 1-6/2015 1-3/2015 1-12/2014 |
| EUR 1 = SEK |
| Income statement (average) 9.3534 9.3709 9.3416 9.3805 9.1011 |
| Balance sheet (at end of period) 9.1895 9.4083 9.2150 9.2901 9.3930 |
| DKK 1 = SEK |
| Income statement (average) 1.2542 1.2567 1.2530 1.2593 1.2205 |
| Balance sheet (at end of period) 1.2314 1.2612 1.2352 1.2437 1.2616 |
| NOK 1 = SEK |
| Income statement (average) 1.0475 1.0646 1.0809 1.0746 1.0893 |
| Balance sheet (at end of period) 0.9570 0.9878 1.0482 1.0674 1.0388 |
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FOURTH QUARTER IN BRIEF

Sampo Group's profit before taxes for the fourth quarter of 2015 was EUR 413
million (447). Earnings per share amounted to EUR 0.65 (0.70). Mark-to-market
earnings per share were EUR 0.95 (0.14). Net asset value per share rose to
EUR 23.79 (22.63).

Combined ratio for the P&C insurance operation in the fourth quarter amounted
to 87.7 per cent (87.1). Profit before taxes decreased to EUR 204 million
(219). Share of the profits of the associated company Topdanmark amounted to
EUR 6 million (9).

Sampo's share of Nordea's fourth quarter 2015 net profit amounted to EUR 173
million (179). Nordea's Group core tier 1 capital ratio, excluding transition
rules, rose to 16.5 per cent (15.7) at the end of the year.

Profit before taxes for the life insurance operations amounted to EUR 48
million (50). Mandatum Life continued to strengthen its technical reserves
due to low level of interest rates. Premiums written decreased from EUR 333
million to EUR 306 million.

BUSINESS AREAS

P&C insurance

Profit before taxes for January-December 2015 for the P&C insurance operations
increased to EUR 960 million (931). Combined ratio improved to 85.4 per cent
(87.7) while risk ratio deteriorated to 66.6 per cent (65.1). Excluding the
non-recurring items, combined ratio for 2015 was 86.5 per cent. In Sampo
Group's 2015 accounts the contribution of Topdanmark's net profit amounted to
EUR 43 million (53).

Technical reserves relating to prior year claims were strengthened by EUR 61
million in January - December 2015 (EUR 2 million released in the previous
year). Return on equity (RoE) increased to 21.5 per cent (18.1) and the fair
value reserve on 31 December 2015 amounted to EUR 391 million (507).

Technical result increased to EUR 657 million (588). Insurance margin
(technical result in relation to net premiums earned) improved to 15.1 per
cent (13.2).

The lowering of the annuities discount rate in Finland during the second
quarter of 2015 affected all business areas' results negatively and weakened
the Finnish country specific result in 2015. Business area Industrial
suffered from a negative large claims outcome in the fourth quarter of the
year, particularly in Norway, resulting in EUR 45 million worse than expected
large claims outcome in 2015 and a 10.4 percentage points weaker combined
ratio than a year before. Total large claims ended up EUR 32 million worse
than expected in 2015.

In Sweden, combined ratio improved by 7.8 percentage points supported by a
positive large claims outcome compared to the previous year. Swedish discount
rate used to discount the annuity reserves decreased to 0.41 per cent by the
end of December 2015 and had a negative effect of EUR 12 million for
full-year 2015 and a EUR 1 million positive effect in the fourth quarter of
2015 results.

Gross written premiums decreased to EUR 4,559 million (4,634) in 2015.
Adjusted for currency, premium growth was slightly positive. Growth was
positive in business areas Private and Baltic, and negative in business areas
Commercial and Industrial. Geographically, gross written premiums grew by 5
per cent in Sweden, while the growth was slightly negative in Norway and
Denmark and stable in Finland.

Cost ratio improved to 18.8 per cent (22.5) and expense ratio to 13.0 per cent
(16.7), both impacted by the positive effect of the non-recurring reform of
the pension system in If Norway booked in the second quarter of the year.
Excluding the non-recurring item the cost ratio was 22.3 per cent and expense
ratio 16.6 per cent.

On 31 December 2015, the total investment assets of If P&C amounted to EUR
11.4 billion (11.5), of which fixed income investments constituted 74 per
cent (75), money market 12 per cent (13) and equity 13 per cent (12). Net
income from investments amounted to EUR 304 million (353). Investment return
marked-to-market for the full year 2015 decreased to 1.5 per cent (4.1) as a
result of widening credit spreads towards the end of the year. Duration for
interest bearing assets was 1.2 years (1.0) and average maturity 2.6 years
(2.4). Fixed income running yield as at 31 December 2015 was 1.8 per cent
(2.4).

Associated company Nordea Bank AB

On 31 December 2015 Sampo plc held 860,440,497 Nordea shares corresponding to
a holding of 21.25 per cent. The average price paid per share amounted to EUR
6.46 and the book value in the Group accounts was EUR 8.49 per share. The
closing price as at 30 December 2015 was EUR 10.15.

Nordea's Board of Directors proposes to the AGM 2016 a dividend of EUR 0.64
per share (0.62). The Board has also decided on a new dividend policy: Nordea
strives to maintain a strong capital position in line with Nordea's capital
policy. The ambition is to achieve a yearly increase in the dividend per
share.

If the AGM approves the Board's dividend proposal, Sampo plc will receive a
dividend of EUR 551 million from Nordea on 30 March 2016.

2015 was a challenging year with exceptionally low interest rates,
geopolitical tensions and market turmoil. Under these market conditions
Nordea reported an increase in the income level of 3 per cent in local
currencies (1 per cent in euros) and delivered a reduction of 4 per cent in
costs to EUR 4.7 billion in line Nordea's target. In addition, the credit
quality improved during the year. Consequently, the operating income was up 9
per cent in local currencies (7 per cent in euros) from last year excluding
non-recurring items.

Net interest i...

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