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2016-05-11

Sampo Oyj: Sampo Group's results for January-March 2016

SAMPO PLC INTERIM STATEMENT 11 May 2016 at 9:30 am

SAMPO GROUP'S RESULTS FOR JANUARY - MARCH 2016

Sampo Group's profit before taxes for January - March 2016 amounted to EUR 416
million (487). The total comprehensive income for the period, taking changes
in the market value of assets into account, decreased to EUR 204 million
(701).

-Earnings per share decreased to EUR 0.65 (0.78). Mark-to-market earnings per
share were EUR 0.36 (1.25). The return on equity for the Group was 7.1 per
cent for January - March 2016 (24.8). Net asset value per share on 31 March
2016 amounted to EUR 22.09 (23.79).

-The Annual General Meeting held on 21 April 2016 decided to pay a dividend of
EUR 2.15 per share (1.95). The dividend was paid on 3 May 2016.

-Profit before taxes for the P&C insurance segment increased to EUR 216
million (200). Combined ratio for January-March 2016 decreased to 83.0 per
cent (89.2). Following a review of mortality tables by the Swedish insurance
federation, EUR 72 million was released from the Swedish MTPL reserves.
Excluding this release combined ratio was 89.8 per cent. Return on equity
(RoE) was 15.3 per cent (35.1). The contribution of Topdanmark's net profit
for the first quarter of 2016 amounted to EUR 5 million (12).

-Sampo's share of Nordea's net profit for the first quarter of 2016 amounted
to EUR 159 million (223). Nordea's RoE decreased to 10.3 per cent (14.3).
Core Tier 1 ratio (excluding transition rules) strengthened to 16.7 per cent
(16.5). In segment reporting the share of Nordea's profit is included in the
segment 'Holding'.

-In life insurance operations profit before taxes rose to EUR 53 million (39).
Return on equity (RoE) dropped to -4.4 per cent (50.3). Premium income on own
account decreased to EUR 244 million (377).

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| KEY FIGURES 1-3/ 2016 1-3/2015 Change, % |
| EURm |
| Profit before taxes 416 487 -15 |
| P&C insurance 216 200 8 |
| Associate (Nordea) 159 223 -30 |
| Life insurance 53 39 36 |
| Holding (excl. Nordea) -12 26 - |
| Profit for the period 362 435 -17 |
| |
| Change |
| Earnings per share, EUR 0.65 0.78 -0.13 |
| EPS (incl. change in FVR) EUR 0.36 1.25 -0.89 |
| NAV per share, EUR *) 22.09 23.79 -1.70 |
| Average number of staff (FTE) 6,763 6,711 52 |
| Group solvency ratio, % *) 143.4 145.0 -1.6 |
| RoE, % 7.1 24.8 -17.7 |
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*) comparison figure from 31.12.2015

Income statement items are compared on a year-on-year basis and comparison
figures for balance sheet items are from 31 December 2015 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 atwww.sampo.com/result.

-----------------------------------------------------------------------------------------
| Exchange rates used in reporting |
| |
| 1-3/2016 1-12/2015 1-9/2015 1-6/2015 1-3/2015 |
| EUR 1 = SEK |
| Income statement (average) 9.3241 9.3534 9.3709 9.3416 9.3805 |
| Balance sheet (at end of period) 9.2253 9.1895 9.4083 9.2150 9.2901 |
| DKK 1 = SEK |
| Income statement (average) 1.2501 1.2542 1.2567 1.2530 1.2593 |
| Balance sheet (at end of period) 1.2381 1.2314 1.2612 1.2352 1.2437 |
| NOK 1 = SEK |
| Income statement (average) 0.9790 1.0475 1.0646 1.0809 1.0746 |
| Balance sheet (at end of period) 0.9799 0.9570 0.9878 1.0482 1.0674 |
-----------------------------------------------------------------------------------------
P&C insurance

Profit before taxes for January-March 2016 for the P&C insurance segment
increased to EUR 216 million (200). Combined ratio improved to 83.0 per cent
(89.2) and risk ratio to 60.7 per cent (66.6). EUR 72 million was released
from the Swedish MTPL reserves, following a review of mortality tables by the
Swedish insurance federation. Excluding the non-recurring reserve release,
combined ratio for the first quarter of 2016 would have been 89.8 per cent.
The contribution of Topdanmark's net profit in the first quarter of 2016
amounted to EUR 5 million (12).

Technical reserves relating to prior year claims were released by altogether
EUR 88 million in January - March 2016 (EUR 3 million in the comparison
period). Return on equity (RoE) decreased to 15.3 per cent (35.1) and the
fair value reserve on 31 March 2016 amounted to EUR 342 million (391).
Technical result increased to EUR 184 million (124). Insurance margin
(technical result in relation to net premiums earned) improved to 17.5 per
cent (11.6).

The release from the Swedish MTPL reserves affected both the Swedish country
specific result and the Private and Commercial business area results
positively by 20.2, 9.6 and 3.2 percentage points, respectively. Industrial
suffered from negative large claims outcome and large claims ended up EUR 23
million worse than normalized. Total large claims for If P&C ended up EUR 17
million worse than expected in the first quarter of 2016. Development was
worst in Norway where large claims exceeded normalized level by EUR 19
million with a roughly 6 percentage point impact on combined ratio.

Swedish discount rate used to discount the annuity reserves decreased to 0.17
per cent by the end of March 2016 (0.41 at the end of December 2015) and had
a negative effect of EUR 15 million in the first quarter results. In Finland
the discount rate for annuities remained at 1.5 per cent.

Gross written premiums decreased to EUR 1,616 million (1,668) in January-March
2016. Adjusted for currency, premium growth was slightly negative. Growth was
positive in business areas Private and Baltic, and negative in business areas
Commercial and Industrial. Cost ratio improved to 22.3 per cent (22.6) while
expense ratio deteriorated to 16.9 per cent (16.8).

On 31 March 2016, the total investment assets of If P&C amounted to EUR 11.1
billion (11.4), of which fixed income investments constituted 81 per cent
(74), money market 6 per cent (12) and equity 13 per cent (13). Net income
from investments decreased to EUR 36 million (79). Investment return
marked-to-market for the first quarter of 2016 decreased to -0.2 per cent
(2.0). Duration for interest bearing assets was 1.5 years (1.2) and average
maturity 2.8 years (2.6). Fixed income running yield as at 31 March 2016 was
1.8 per cent (2.2).

Associated company Nordea Bank AB

On 31 March 2016 Sampo plc held 860,440,497 Nordea shares corresponding to a
holding of 21.2 per cent. The average price paid per share amounted to EUR
6.46 and the book value in the Group accounts was EUR 8.01 per share. The
closing price as at end of March 2016 was EUR 8.45.

The business environment has been relatively stable at the beginning of 2016,
although turmoil on the financial markets, and even lower interest rates,
have put pressure on revenues. Costs are under strict control and are
developing according to plan.

Total income was down 14 per cent in local currencies (-16 per cent in EUR)
from last year and operating profit was down 27 per cent in local currencies
(-29 per cent in EUR) from last year.

Net interest income was down 4 per cent in local currencies (-7 per cent in
EUR) from last year. Average lending volumes in local currencies in business
areas increased 2 per cent from the first quarter of 2015. Average deposit
volumes in local currencies in business areas increased 5 per cent from the
first quarter of 2015, mainly driven by Retail deposits in Sweden and Finland
and corporate deposits in Norway. Lending margins were up somewhat, while
deposit margins were down significantly compared to one year ago.

Net fee and commission income decreased 4 per cent in local currencies (-5 per
cent in EUR). The net result from items at fair value decreased 48 per cent
in local currencies (-47 per cent in EUR) from a very strong first quarter of
2015.

Total expenses were unchanged in local currencies (-1 per cent in EUR) from
the previous year and amounted to EUR 1,178 million. Staff costs were down 4
per cent in local currencies (-5 per cent in EUR).

Loan losses were below the 10-year average of 16 basis points. Net loan loss
provisions decreased to EUR 111 million equalling a loan loss ratio of 13
basis points (14 basis points for the first quarter of 2015).

Net profit decreased 26 per cent in local currencies (-28 per cent in EUR) to
EUR 782 million. Cost/income ratio was 51.3 per cent, up from 43.7 per cent
in the first quarter of 2015.

The Group's fully loaded Basel III Common equity tier 1 (CET1) capital ratio
increased to 16.7 at the end of the first quarter 2016 from 16.5 per cent at
the end of the fourth quarter 2015. The increase to the CET1 capital ratio
was due to an increase in common equity tier 1 capital due to a pay out from
Nordea Life and Pension offset by an increase to the additional risk exposure
amount buffer.

At the AGM, shareholders approved the plans for the mergers of the Norwegian,
Danish and Finnish banking subsidiaries with Nordea Bank AB. The intention is
to execute the merger plan in early January 2017.

Further information on Nordea Bank AB and its January-March 2016 result is
available atwww.nordea.com.

Life insurance

In January - March 2016 the profit before taxes for life insurance operations
rose to EUR 53 million (39). As a result of the difficult investment market
conditions, the total comprehensive income for the period after tax
reflecting the changes in market values of assets dropped to EUR -14 million
(171). Return on equity (RoE) was -4.4 per cent (50.3). Net investment
income, excluding income on unit-linked contracts, amounted to EUR 78 million
(68). Net income from unit-linked co...

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