743700UF3RL386WIDA22-2023-12-31-en

REPORTS FOR THE YEAR 2023

WWW.SAMPO.COM/YEAR2023

Contents


Board of Directors’ Report 2023 ........................	3
Review of the 2023 financial year .......................	4
Outlook .........................................................................	7
Outlook for 2024 ..................................................	7
The major risks and uncertainties for the Group in the near-term ......................................	7
Dividend proposal .....................................................	8
Operating environment ...........................................	9
Business areas ............................................................	10
If .................................................................................	10
Topdanmark ...........................................................	13
Hastings ...................................................................	14
Holding ....................................................................	15
Financial position ......................................................	16
Group solvency .....................................................	16
Financial leverage position ...............................	16
Ratings .....................................................................	17
Other developments ................................................	18
Demerger of Sampo plc ....................................	18
Group Partial Internal Model application .....	19
Shares, share capital and shareholders .............	20
Shares and share capital ...................................	20
Authorisations granted to the Board ............	22
Shareholders ..........................................................	22
Holdings of the Board and Executive Management ..........................................................	23
Share buyback programmes ............................	24
Governance and related issues ............................	25


Governance ............................................................	25
Annual General Meeting ....................................	25
Risk management ................................................	27
Remuneration ........................................................	27
Changes in Group structure .............................	28
Changes in the Group management and the Board of Directors .......................................	30
Personnel ................................................................	32
Sustainability ...............................................................	33
Highlights from year 2023 ................................	33
EU Taxonomy ........................................................	34
Events after the end of the reporting period ..	41
Key figures ...................................................................	42
Calculation of key figures .......................................	46
Group’s IFRS Financial Statements ...................	48
Statement of profit and other comprehensive income ...........................................	49
Consolidated balance sheet ..................................	50
Statement of changes in equity ...........................	51
Statement of cash flows .........................................	52
Group’s notes to the financial statements ......	53
Accounting principles ..............................................	54
Segment information ..............................................	72
Result by segment for twelve months ended 31 December 2023 ....................................................	73
Result by segment for twelve months ended 31 December 2022 ....................................................	74
Balance sheet by segment at 31 December 2023 ...............................................................................	75


Balance sheet by segment at 31 December 2022 ...............................................................................	76
Geographical information .......................................	77
Other notes ..................................................................	78
Sampo plc’s Financial Statements .....................	190
Sampo plc’s income statement ............................	191
Sampo plc’s balance sheet ....................................	192
Sampo plc’s statement of cash flows .................	193
Sampo plc’s notes to the financial statements ...................................................................	194
Summary of significant accounting policies ....	195
Notes 1–5 ......................................................................	196
Notes 6–8 .....................................................................	197
Note 9 ............................................................................	198
Notes 10-17 ...................................................................	199
Notes 18–20 .................................................................	200
Note 21 ...........................................................................	201
Approval of the Financial Statements and the Board of Directors’ Report ...........................	202
Auditor’s Report .......................................................	204

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

≡

Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023	2

Board of Directors’ Report 2023


Review of the 2023 financial year .....................	4
Outlook .........................................................................	7
Outlook for 2024 .......................................................	7
The major risks and uncertainties for the Group in the near-term ...........................................	7
Dividend proposal ....................................................	8
Operating environment ..........................................	9
Business areas ............................................................	10
If .......................................................................................	10
Topdanmark ................................................................	13
Hastings ........................................................................	14
Holding ..........................................................................	15
Financial position .....................................................	16
Group solvency ..........................................................	16
Financial leverage position ....................................	16
Ratings ..........................................................................	17
Other developments ................................................	18
Demerger of Sampo plc ..........................................	18
Group Partial Internal Model application ..........	24
Shares, share capital and shareholders ...........	20
Shares and share capital .........................................	20


Authorisations granted to the Board .................	22
Shareholders ...............................................................	22
Holdings of the Board and Executive Management ...............................................................	23
Share buyback programmes .................................	24
Governance and related issues ...........................	25
Governance .................................................................	25
Annual General Meeting ..........................................	25
Risk management ......................................................	27
Remuneration .............................................................	27
Changes in Group structure ..................................	28
Changes in the Group management and the Board of Directors ....................................................	30
Personnel ......................................................................	32
Sustainability ..............................................................	33
Highlights from year 2023 .....................................	33
EU Taxonomy .............................................................	34
Events after the end of the reporting period	41
Key figures ..................................................................	42
Calculation of key figures .....................................	46

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

≡

Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	3

Board of Directors’ Report 2023

Review of the 2023 financial year

Sampo Group delivered strong premium growth and

resilient underwriting margins in 2023, despite the year

being characterised by elevated severe weather and

large claims experience, as well as unfavourable

currency movements.

Gross written premiums (GWP) and brokerage income

increased by 11 per cent on a currency adjusted basis

and 6 per cent on a reported basis to EUR 8,870 million

(8,375). The growth was broad-based and supported by

all business lines, both in the Nordics and in the UK. In

the Nordics, the Group’s largest business area, Private,

saw currency adjusted growth of 5.0 per cent, up from

3.5 per cent in the prior year. This was driven by strong

development in non-motor lines, particularly in personal

insurance, and continued high and stable retention.

Meanwhile, corporate lines benefited from successful

1 January renewals, rate action and continued strong

trends in SME.

In the UK, the pricing environment continued to

improve throughout the year, enabling substantial price

increases and selective volume growth. UK premiums

increased by 32 per cent on a local currency basis and

policy count grew by 8 per cent year-on-year to 3.5

million, driven by 4 per cent growth in motor insurance

and 31 per cent growth in home insurance.

Despite elevated severe weather and large claims

experience over the year, Sampo achieved its combined

ratio target of below 86 per cent. The group

underwriting result amounted to EUR 1,164 million

(1,031) and the combined ratio was 84.6 per cent (85.8).

The 2022 combined ratio under IFRS 4 included

significant items related to prior year development in

the fourth quarter, some of which have been recognised

in the net financial results under IFRS 17. Hence, the

figures are not fully comparable between years. Large

claims and severe weather had a negative effect of 4.7

percentage points on If’s risk ratio, clearly up from 1.3

percentage points in 2022.

The underlying trend remained positive throughout the

year and as a result, If’s undiscounted adjusted risk ratio

improved 0.5 percentage points year-on-year. This was

achieved by disciplined underwriting and pricing

exceeding Nordic claims inflation, which fell to the

lower end of the 4-5 per cent range observed over

2023 towards the end of the year. Hastings reported an

operating ratio of 89.8 per cent (87.2) on the back of

improving pricing trends and high but stabilised claims

inflation of around 12 per cent for most of the year

2023.

The net financial result amounted to EUR 560 million.

This was driven by strong net investment income of

EUR 1,006 million. Insurance finance income or expense

(IFIE) amounted to EUR -446 million. Changes in

discount rates had an effect of EUR -160 million and the

unwind of discounting had an effect of EUR -248 million

on IFIE.

Following the announcement of the strategic review of

Mandatum on 7 December 2022, the Board of Directors

of Sampo plc resolved on 29 March 2023 to propose to

the Annual General Meeting a partial demerger of

Sampo plc to separate Mandatum from Sampo Group.

The Annual General Meeting held on 17 May 2023

resolved to approve the partial demerger. The partial

demerger was completed on 1 October 2023 and the

first trading day for Mandatum on Nasdaq Helsinki was

2 October 2023.

Mandatum’s profit before taxes consolidated in Sampo

Group’s P&L amounted to EUR 173 million and net profit

to EUR 140 million in January-September 2023. In

addition, the partial demerger had a positive accounting

effect of EUR 111 million in the Group’s profit before

taxes and net profit. Financial effects of the demerger

are disclosed in more detail in the section Demerger of

Sampo plc.

The Group’s profit before taxes from P&C operations

increased EUR 1,481 million after adjusting for IFRS 9

(803), but declined on a reported basis (1,924). Net

profit for the equity holders amounted to EUR 1,323

million (1,031), of which EUR 1,072 million (1,528) was

from continuing operations. Earnings per share

amounted to EUR 2.62 (3.97), of which EUR 2.12 (2.88)

was from continuing operations.

On 8 February 2024, Sampo plc’s Board of Directors

proposed a dividend of EUR 1.80 per share for 2023 to

the Annual General Meeting to be held on 25 April

2024, representing a payout ratio of 86 per cent based

on the operational result of EUR 2.07 per share. The

proposed total dividend consists of a regular dividend

of EUR 1.60 per share and an extra dividend of EUR

0.20 per share.

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

≡

Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	4

The proposed regular dividend represents growth of 7

per cent from the prior year regular dividend of EUR

1.50 per share adjusted for the partial demerger.

Sampo Group’s pro forma Solvency II ratio, adjusted for

demerger-related transactions, amounted to 182 per

cent at the end of 2023, down from 210 per cent at the

year-end 2022. The decrease was primarily driven by

the demerger. The financial leverage was 25.3 per cent

at the end of 2023, down from 25.6 per cent at the end

of 2022. Adjusting for the proposed dividend of EUR

1.80 per share, financial leverage was 27.7 per cent.

Sampo Group’s targets for 2021-2023 were a solvency

ratio of 170-190 per cent and a financial leverage ratio of

below 30 per cent.

In 2023, Sampo returned over EUR 0.5 billion of excess

capital to shareholders by repurchasing and cancelling

12.6 million own shares, representing 2 per cent of the

total share count. Since the start of the buyback

programmes in 2021, Sampo’s share count has

decreased by 10 per cent.

On 20 June 2023, Sampo announced a submission of an

application for a Group Partial Internal Model for

purposes of solvency capital requirement calculation to

the Finnish Financial Supervisory Authority. Following

the completion of the partial demerger, the Swedish

FSA (Finansinspektionen) became Sampo’s group

prudential supervisor as of 1 October 2023. As a result,

Sampo refiled its application for a Group Partial Internal

Model to the Swedish FSA on 2 October 2023. The

Partial Internal Model recognises the risk profile of

Sampo’s P&C operations better than the Standard

Formula and it is estimated that it would have reduced

the group-level solvency capital requirement (SCR) by

up to EUR 0.3 billion in 2023. The application process is

expected to be completed during the first half of 2024.

Sampo will issue a report on non-financial information in

accordance with Chapter 3a, Section 5 of the

Accounting Act. The report, Sampo Group

Sustainability Report 2023, will be separate from

the Board of Directors’ Report and published

around the turn of March and April 2024 at

www.sampo.com/year2023.

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

≡

Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	5

Key figures

Sampo Group, 2023


EURm	1–12/2023	1–12/2022	Change, %
Profit before taxes (P&C Operations)	1,481	1,924	-23
If	1,358	1,550	-12
Topdanmark	162	158	3
Hastings	129	107	21
Holding	-160	146	—
Net profit for the equity holders	1,323	2,107	-37
Underwriting result	1,164	1,031	13
			Change
Earnings per share (EUR)	2.62	3.97	-1.36
Operational result per share (EUR)	2.07	—	—
Return on equity, %	15.6	4.2	11.4
Profit before taxes (adjusted for IFRS 9), EURm*	1,481	803	84%

The comparison figures for 2022 have been restated for IFRS 17 but not for IFRS 9, meaning some

figures, such as investment income, are not presented on a comparable basis between the

reporting periods. Net profit for the equity holders, EPS and return on equity figures include results

from life operations. Mandatum was classified as discontinued operations as of 31 March 2023.

* To enhance comparability, a Group profit before taxes (P&C operations) figure adjusted for IFRS

9, reflecting market value movements, has been provided for the prior year.

Financial targets

Sampo Group, 2021-2023


	Target	2023
Group	Mid-single digit UW profit growth annually on average	13%
	Group combined ratio: below 86%	84.6%
	Solvency ratio: 170-190%	182% (pro forma of demerger- related transactions)
	Financial leverage: below 30%	25.3%
If	Combined ratio: below 85%	83.1%
Hastings	Operating ratio: below 88%	89.8%

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

≡

Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	6

Outlook

Outlook for 2024

Sampo Group is expected to deliver a combined ratio in

2024 that meets the 2024-2026 annual target of below

85 per cent, including an assumed discount rate benefit

of 2 percentage points.

The major risks and

uncertainties for the Group in

the near-term

In its current day-to-day business activities Sampo

Group is exposed to various risks and uncertainties,

mainly through its major business units. Major risks

affecting the Group companies’ profitability and its

variation are market, credit, insurance and operational

risks. At the Group level, sources of risks are the same,

although they are not directly additive due to the

effects of diversification.

Uncertainties in the form of major unforeseen events

may have an immediate impact on the Group’s

profitability. The identification of unforeseen events is

easier than the estimation of their probabilities, timing,

and potential outcomes. Macroeconomic and financial

market developments affect Sampo Group primarily

through the market risk exposures it carries via its

insurance company investment portfolios and insurance

liabilities and through strategic investments. Over time,

adverse macroeconomic effects could also have an

impact on Sampo’s operational business, for example

by reducing economic growth or increasing claims

costs.

Inflation declined significantly in Europe during 2023

due to lower energy prices. The worst of the recent

inflation surge seems to be over unless geopolitical

tensions cause new shocks to energy prices.

However, the continued strength of Europe’s labour

market and rapid wage growth could keep price

pressures elevated. This creates uncertainty on

whether central banks will be keeping interest rates

elevated longer than expected. This may lead to both a

significant slowdown in economic growth and a

deterioration in the debt service capacity of businesses,

households and governments, raising the risk of abrupt

asset repricing in financial markets. Furthermore, the

war in Ukraine continues to represent a major economic

risk. These developments are currently causing

significant uncertainties in economic and capital market

development. At the same time rapidly evolving hybrid

threats create new challenges for states and businesses.

There are also a number of widely identified

macroeconomic, political and other sources of

uncertainty which can, in various ways, affect the

financial services industry in a negative manner.

Sampo Group’s insurance exposures in Russia or

Ukraine are limited to certain Nordic industrial line

clients, with coverage subject to war exclusions. On the

asset side, Sampo has no direct investments in Russia or

Ukraine. Given the limited direct exposure, the biggest

risk from the war in Ukraine to Sampo relates to the

second order capital markets’ and macroeconomic

effects outlined above. There were no material

COVID-19 effects in the Group’s insurance operations in

2023. Given the limited impact of COVID-19 and the

increasing difficulty in reliably estimating associated

effects, Sampo has not disclosed quantitative COVID-19

effects in its financial reporting since February 2022.

Other sources of uncertainty are unforeseen structural

changes in the business environment and already

identified trends and potential wide-impact events.

These external drivers may have a long-term impact on

how Sampo Group’s business will be conducted.

Examples of identified trends are demographic

changes, sustainability issues, and technological

developments in areas such as artificial intelligence and

digitalisation including threats posed by cybercrime.

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

≡

Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	7

Dividend proposal

Dividend

Under Sampo Group’s capital management framework,

the Group aims to return a significant share of ongoing

surplus capital generation through a reliable regular

dividend. In addition to this, excess capital is returned

through additional dividends and/or buybacks, to the

extent that it is not utilised to support business

development.

According to Sampo plc’s Dividend Policy applicable to

the distribution of 2023 earnings, total annual dividends

paid shall represent at least 70 per cent of Sampo

Group’s operational result for the year.

The parent company’s distributable capital and reserves

totalled EUR 5,367 million of which profit for the

financial year 2023 was EUR 963 million. Based on the

policies outlined above, the Board proposes to the

Annual General Meeting that a total dividend of EUR

1.80 per share be paid to all shares except for the shares

held by Sampo plc on the dividend record date of 29

April 2024. The total dividend includes a regular

dividend of EUR 1.60 per share as well as an extra

dividend of EUR 0.20 per share.

As the Group’s operational result amounted to EUR

1,046 million, the payout ratio for the total dividend

equates to 86 per cent. The remainder of the

distributable funds are left in the company’s equity

capital. After adjusting for the proposed dividend,

Sampo Group’s 2023 year-end distributable funds

amounted to approximately EUR 4,463 million, Group

Solvency II ratio to 177 per cent and financial leverage

to 27.7 per cent.

Dividend payment

The dividend is proposed to be paid to the shareholders

registered in the company’s shareholders register held

by Euroclear Finland Oy as at the record date of 29

April 2024. The Board proposes that the dividends be

paid on 7 May 2024.

The issuer of the Swedish depository receipts shall

ensure that the dividend is paid to the depository

receipt holders registered in the securities depository

and settlement register maintained by Euroclear

Sweden AB as at the record date of 29 April 2024,

which payment shall be made in Swedish kronor.

Financial position

No significant changes have taken place in the

company's financial position since the end of the

financial year. The company's liquidity position is good

and in the view of the Board, the proposed distributions

do not jeopardise the company's ability to fulfil its

obligations.

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

≡

Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	8

Operating environment

Nordic countries

Over 2023, the Nordic region experienced a challenging

macroeconomic environment with historically high

inflation and interest rates. The P&C insurers were also

affected by more weather-related claims than normal.

Despite this, the Nordic P&C insurance market

continued to perform relatively well, delivering better

profitability than most other European P&C markets.

The Nordic P&C market is highly consolidated, with the

four largest players accounting for some 80-90 per

cent of the markets in Norway, Finland, and Sweden

respectively. Many insurers are established in more than

one Nordic country. In Denmark, the market is less

consolidated with the top four insurers controlling

around 60 per cent of the market.

During the year, the competitive environment remained

broadly stable in the private and SME markets, while the

large corporate market remained in the hard part of the

underwriting cycle. The larger listed insurers maintained

strong financial discipline and implemented price

increases to combat elevated claims inflation.

Market-wide claims inflation was above the levels

observed in the recent past in 2023 and amounted to

4-5 per cent for If P&C. Inflation was mainly driven by

the property and motor products which were affected

by higher building materials and spare parts costs

following raw material shortages and increasing

transportation and energy costs. Weaker local

currencies also added pressure to cost inflation.

Towards the end of the year, Nordic claims inflation

showed signs of moderation, reducing the uncertainty

around the outlook for 2024.

Nordic claims frequencies returned to pre-pandemic

levels in 2023. During the year, the region suffered

various weather-related claims, of which the most

severe was the storm “Hans” at the end of the summer.

“Hans” delivered the heaviest rain in 25 years in Norway,

causing flood and landslide damage. Sweden was also

affected by this storm, as well as parts of Denmark and

Finland.

During the year, the Nordic region also experienced

some elevated claims from severe winter conditions. In

the beginning of the year, the region was affected by

harsh winter weather, especially in Sweden and Norway.

The last quarter of the year saw a longer and more

severe winter season than usual. There was heavy snow

and freezing temperatures in early November, which

resulted in weather related claims.

In 2023, the Nordics continued to be affected by the

hardening reinsurance market with a high cost of

coverage and reduced risk appetite among reinsurers.

The reinsurance prices increased, as expected, based on

global inflation, claims trends and climate change, which

also impacted the direct insurance market.

According to the UN’s climate panel IPCC, the effects of

climate change are already seen in the Nordic region

with more heatwaves and floods expected in the future.

This development is expected to be gradual where the

insurance industry with one-year contracts is well

equipped to handle the changes over time.

The Nordic region is known for being digitally advanced

and Nordic insurers committed to technological

advancements and innovation. During the year the

digitalisation trend continued with increased focus on

cyber risks. Targeted investments and continuous

monitoring for emerging threats were on top of every

insurer’s agenda for effective risk mitigation in the

complex area of cybersecurity.

United Kingdom

In the UK, P&C insurance market prices increased

significantly over the last 12 months in response to

elevated claims inflation.

Claims inflation increased significantly during 2022 and

remained persistent throughout 2023. Claims

frequencies also increased as travel returned closer to

pre-pandemic levels and as a result of adverse weather

experienced in the first quarter of the year.

Price comparison websites, Hastings’ primary

distribution channel, remain by far the largest sales

channel for UK car and home insurance customers. In

light of increasing market prices, the use of these

websites has increased during the year, as customers

shop around in order to find a more competitive price.

The FCA continues to be an active regulator in UK

General Insurance and introduced new Consumer Duty

rules with effective 31 July 2023, aiming to set higher

and clearer standards of consumer protection across

financial services. Hastings has successfully delivered

Consumer Duty in a timely manner and continues to

ensure that the principle of Consumer Duty is

embedded in line with its customer focused strategy.

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

≡

Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	9

Business areas

If P&C is the leading property and casualty insurer in the Nordic region, where it

offers solutions in all major lines of business through its four business areas; Private,

Commercial, Industrial and Baltic. If P&C’s business model is based on high customer

satisfaction, best in class underwriting and leveraging the scale benefits that its

unified Nordic model offers. Excellent digital sales and service capabilities are a core

part of If’s strategy, particularly in the Private and SME Commercial market

segments.

Underwriting performance

If reported an underwriting result of EUR 842 million (673) for 2023 and a combined

ratio of 83.1 per cent (86.6), after achieving improvements in the undiscounted

adjusted risk ratio of 0.5 percentage points and a reduction in the cost ratio of 0.3

percentage points. The 2022 combined ratio under IFRS 4 included significant items

related to prior year development in the fourth quarter, some of which have been

recognised in the net financial results under IFRS 17. Hence, the figures are not fully

comparable between years.

Premium development

If reported gross written premiums, GWP, of EUR 5,468 million (5,432) in 2023.

Excluding currency effects, premiums grew by 6.7 per cent year-on-year. Growth was

robust across business areas and driven primarily by successful pricing measures to

mitigate claims inflation, and high retention.

Results

If, 2023


EURm	2023	2022	Change, %
Gross written premiums	5,468	5,432	1
Insurance revenue, net	4,996	5,024	-1
Claims incurred, net	-3,093	-3,267	-5
Operating expenses and claims handling costs	-1,061	-1,084	-2
Insurance service result / underwriting result	842	673	25
Net investment income	871	278	214
Insurance finance income or expense, net	-331	610	—
Net financial result	539	888	-39
Other items	-24	-11	122
Profit before taxes	1,358	1,550	-12

Key figures


EURm	2023	2022	Change
Combined ratio, %	83.1	86.6	-3.5
Cost ratio, %	21.2	21.6	-0.3
Risk ratio, %	61.9	65.0	-3.1
Large claims and severe weather, %	4.7	1.3	3.4
Risk adjustment and other technical effects, current year %	1.2	0.8	0.4
Prior year development, %	-5.3	0.6	-6.0
Adjusted risk ratio, current year, %	61.3	62.3	-1.0
Discounting effect, current year, %	-3.4	-2.9	-0.5
Undiscounted adjusted risk ratio, current year, %	64.7	65.2	-0.5

Loss ratio, %	67.6	70.7	-3.1
Expense ratio, %	15.6	15.9	-0.4

All the key figures in the table above are calculated on a net basis.

Large claims measured against budget but severe weather claims are reported in full; negative

figures indicate a positive outcome. Severe weather includes natural catastrophes.

Negative figures for prior year development indicate positive reserve run-off. The discounting

effect represents the impact of discounting of current year claims reserves on the risk ratio.

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

≡

Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	10

Currency adjusted GWP growth in 2023 in Private was

5.0 per cent, driven mainly by price increases covering

claims inflation. Geographically, Norway and Finland

saw the highest GWP growth. The year saw particularly

solid growth especially in the personal and property

insurance segments. Motor also contributed to GWP

growth but was adversely affected by new car sales,

which remained at a historically low level during the

year. The Nordic new car sales market declined by 2 per

cent, while Sweden, If P&C ‘s most important market for

motor insurance, saw an increase of 1 per cent.

Excluding the Swedish mobility business, currency

adjusted GWP growth in 2023 was 6.3 per cent in

Private and 7.6 per cent for If P&C. Despite rate actions

and a general slowdown in the Nordic economies over

the year, the demand for insurance was relatively stable,

and Private retention stood above 89 per cent (90) at

the end of 2023.

Development in online services and digital engagement

in business area Private remained good in 2023,

following consistent investments into this area over

many years. In 2023 online sales increased by 8 per cent

compared to last year, and the digital share of incoming

sales was 54 per cent.

Currency adjusted GWP growth in Commercial in 2023

was 5.6 per cent year-on-year, mainly driven by rate

actions. Over the year, all countries contributed to

growth with the Swedish business being particularly

strong. This positive development was supported by

good growth in the SME segment during the period,

successful renewals at the beginning of the year and

high retention.

Strong momentum in online sales and accelerated

expansion of the digital offering with increased usage of

self-service solutions also contributed to the positive

development. In 2023 online sales in Commercial

increased by more than 8 per cent year-on-year, and 30

per cent of new SME clients now start their customer

journey online.

Industrial saw strong GWP growth of 11.8 per cent on a

currency adjusted basis in 2023. Growth was primarily

driven by strong renewals at the beginning of the year

with significant rate action and high retention. During

the year, inflation-driven price increases continued, with

the largest contribution coming from the property

segment. Geographically, Industrial saw GWP growth in

all countries except Denmark which was affected by a

small number of large policies not being renewed.

The Baltic business delivered GWP growth of 15.7 per

cent in 2023. The positive development was mainly

driven by continued rate increases to mitigate claims

inflation. All three Baltic countries showed strong

growth in 2023 year-on-year.

Combined ratio development

If reported a combined ratio of 83.1 per cent (86.6) for

2023.

After a favourable large claims outcome in the first

quarter of the year, the following three quarters saw

adverse large claims and severe weather development.

Large claims and severe weather (including natural

catastrophe event Hans) in 2023 had a 4.7 percentage

points (1.3) negative effect on the risk ratio. If’s large

claims outcome is reported as a deviation against

budget, while severe weather effects are disclosed in

full.

Prior year gains in 2023 increased to 5.3 percentage

points from -0.6 percentage points in the prior year.

Prior year gains were mainly driven by inflation reserve

releases as the uncertainty regarding claims inflation

outlook reduced over the year.

Risk adjustment and other technical effects had an

impact of 1.2 percentage points (0.8) in 2023.

Discounting effects in 2023 increased by 0.5

percentage points year-on-year to 3.4 per cent (2.9).

Following an analysis of the application of IFRS 17 over

2023, the reference point used in If P&C for

disaggregation of IFRS 17 discounting effects had been

changed from the beginning of year to the beginning of

quarter. The change in reference point impacts on the

split of discounting effects between the ISR and IFIE,

but not profit before taxes.

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	11

In total, the risk ratio improved by 3.1 percentage points year-on-year to 61.9 per cent

(65.0) in 2023. The undiscounted adjusted risk ratio improved by 0.5 percentage

points year-on-year in 2023.

The cost ratio for 2023 improved by 0.3 percentage points to 21.2 per cent (21.6). The

2023 cost ratio development compares favourably to If P&C’s target for 2021-2023 of

an around 20 basis point yearly cost ratio reduction. Education and development costs

are included in the cost ratio.


	Combined ratio, %			Risk ratio, %
	2023	2022	Change, %	2023	2022	Change, %
Private	83.1	84.7	-1.6	62.1	63.4	-1.3
Commercial	81.9	86.8	-4.8	60.0	64.6	-4.6
Industrial	87.3	97.3	-10.0	68.3	77.4	-9.0
Baltic	85.9	89.5	-3.6	59.8	62.4	-2.6

Sweden	83.2	82.5	0.7	63.8	62.6	1.1
Norway	87.2	88.4	-1.2	66.8	67.3	-0.5
Finland	75.7	80.3	-4.7	53.5	57.9	-4.5
Denmark	88.4	110.0	-21.6	62.9	84.3	-21.4

Net financial result

For the full year 2023, If reported a net financial result of EUR 539 million (888). Mark-

to-market return on investments stood at 8.3 per cent (-4.4), driven by increased

interest rates and positive development in equity markets

During the period the investment portfolio was gradually reinvested at higher rates,

improving the running yield. At the end of December, fixed income running yield was

4.2 per cent (3.2).

The unwind of discount rate amounted to EUR -180 million in 2023. Changes in

discount rates had an impact of EUR -136 million in the year.

Profit before taxes

In total, If reported profit before taxes of EUR 1,358 million (1,550) for 2023,

representing a decrease of 12 per cent year-on-year.

Board of Directors’

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Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	12

Topdanmark

Topdanmark is one of the largest P&C insurance companies in Denmark. It focuses

on the private, agricultural, and SME markets. The company is listed on Nasdaq

Copenhagen.

Sampo plc held 44.0 million shares in Topdanmark at 31 December 2023. The holding

increased slightly from 43.7 million shares at the end of 2022 and corresponds to an

ownership of 48.9 per cent of all shares and 49.6 per cent of all votes. The market

value of the holding was EUR 1,904 million at 31 December 2023.

The insurance service result for January - December 2023 decreased to EUR 194

million (230) due to a high frequency of weather-related events. At the same time, the

combined ratio for 2023 increased to 85.0 per cent from 81.7 per cent in the

comparison year. With the support of increased net investment income, Topdanmark

reported a profit before taxes of EUR 162 million (158) for January - December 2023 in

Sampo Group’s profit and loss account.

The Board of Directors of Topdanmark will recommend to the AGM a distribution of a

dividend of DKK 1,035 million, representing a dividend of DKK 11.5 per share. Subject to

the approval from the AGM, Sampo will receive approximately EUR 68 million in

dividends from Topdanmark after the Topdanmark AGM in April 2024.

On 27 October 2023, Topdanmark received the final regulatory approval for the

acquisition of Oona Health A/S from the Danish Competition and Consumer Authority,

and the acquisition was completed on 1 December 2023. As a result, Oona Health is

included in Topdanmark Group’s results from 1 December 2023. The fourth quarter

2023 result includes one-off costs of DKK 35 million related to the transaction. Further

information is available in Note 34.

Further information on Topdanmark A/S and its Results for 2023 is available at

www.topdanmark.com.

Results

Topdanmark, 2023


EURm	2023	2022	Change, %
Gross written premiums	1,339	1,308	2
Insurance revenue, net	1,288	1,255	3
Claims incurred and claims handling costs, net	-862	-809	7
Operating expenses	-233	-216	7
Insurance service result / underwriting result	194	230	-16
Net investment income	107	-142	—
Insurance finance income or expense, net	-79	115	—
Net financial result	27	-28	—
Other items	-59	-45	32
Profit before taxes	162	158	3

Key figures


	2023	2022	Change
Combined ratio, %	85.0	81.7	3.3
Loss ratio, %	66.9	64.4	2.5
Expense ratio, %	18.1	17.2	0.8

All the key figures in the table above are calculated on a net basis. Comparison figures do not

include Topdanmark’s life operations.

Board of Directors’

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Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	13

Hastings

Hastings is one of the leading digital P&C insurance providers in the UK

predominantly focused on serving UK car, van, bike and home insurance customers.

Hastings has over 3 million customers and operates via its two main trading

subsidiaries, Hastings Insurance Services Limited in the UK and Advantage Insurance

Company in Gibraltar.

During the year, the UK motor insurance market saw significant market price increases

in response to elevated claims inflation. Market wide claims inflation has remained

persistent in the UK and is estimated to have been around 12 per cent for most of the

year, with a modest reduction observed in the fourth quarter. In this environment,

Hastings has continued to increase prices, whilst also benefiting from increased

demand as consumers continue to use digital channels in order to find a more

competitive price.

Hastings’ gross written premium increased 32 per cent year-on-year on a constant

currency basis to EUR 1,706 million (1,314), reflecting higher average premiums and an

increase in live customer policies (LCP). Total LCP increased to 3.5 million, up 8 per

cent year-on-year, with an increase in motor insurance policy count of 4 per cent.

Home insurance policies grew significantly, up 31 per cent year-on-year. The rise in

policy count was achieved whilst prioritising rate increases to cover claims inflation.

The loss ratio for the year increased to 63.3 per cent (57.2), reflecting claims inflation,

the weather events experienced in the first quarter and increased claims frequencies in

line with changing driving behaviours. The rate increases implemented by Hastings

during 2023 are expected to support profitability as these continue to earn through

into 2024.

The operating ratio for the year increased to 89.8 per cent (87.2), mainly due to a

higher loss ratio and the upfront recognition of distribution costs given the high level

of new business volumes in the current period.

Hastings generated an underwriting result of EUR 128 million (128 million), as growth in

premiums was largely offset by higher claims costs.

Results

Hastings, 2023


EURm	2023	2022	Change, %
Gross written premiums	1,706	1,314	30
Brokerage revenue	357	322	11
Insurance revenue, net (incl. brokerage)	1,251	998	25
Claims incurred and claims handling costs, net	-714	-509	40
Operating expenses	-409	-361	13
Underwriting result	128	128	—
Net investment income	79	16	397
Insurance finance income or expense, net	-35	11	—
Net financial result	44	27	61
Other items	-42	-49	-14
Profit before taxes	129	107	21

Key figures	2023	2022	Change
Operating ratio, %	89.8	87.2	2.6
Loss ratio, %	63.3	57.2	6.1
Live customer policies (millions)	3.5	3.2	0.2

All the key figures in the table above are calculated on a net basis. Hastings’ result table was

simplified in 2023 by combining all brokerage revenues into one line (brokerage revenue), which is

also included in the insurance revenue. Brokerage expenses are included in operating expenses. As

a result, the insurance service result is no longer presented in the table. These changes have no

effect on the underwriting result. All the key figures in the table above are calculated on a net basis.

The net financial result increased to EUR 44 million (27 million) as net investment

income of EUR 79 million, including EUR 46 million of unrealised gains, was partially

offset by EUR -30 million of discount rate unwind and EUR -5 million of discount rate

changes.

Hastings’ profit before taxes increased to EUR 129 million (107) primarily due to the

increase in the net financial result for the reasons mentioned above. The profit before

taxes includes EUR -41 million (-58) of non-operational amortisation related to

intangible assets identified on acquisition of the Hastings Group by Sampo plc in 2020,

without which it would have been EUR 171 million (165).

Board of Directors’

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Sampo plc’s Financial Statements

Auditor’s

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Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	14

Holding

Sampo plc is the parent company of Sampo Group and responsible for the Group’s

strategy and capital management activities. In addition to the Group’s insurance

subsidiaries, a small number of direct investments are held in the holding company.

Results

Holding, 2023


EURm	2023	2022	Change, %
Net investment income	-37	177	—
Other income	1	132	-99
Other expenses	-57	-48	20
Finance expenses	-66	-96	-31
Share of associates' profit or loss	—	-19	—
Profit before taxes	-160	146	—

The holding segment’s profit before taxes for 2023 decreased to EUR -160 million

(146).

Net investment income includes an impact of market value changes of EUR -73 million

in 2023, which offset interest income and dividends. The increase in other expenses

was driven mainly by costs related to the Mandatum demerger process.

Prior year net investment income includes Sampo's share of Nordea's dividend of EUR

157 million and prior year other income includes the positive accounting effect from

Nordea transactions of EUR 103 million and a group contribution of EUR 29 million

from Mandatum.

The accounting effect of EUR 111 million from the reallocation of long-term debt and

valuation effect in connection with the demerger is treated as profit from discontinued

operations and not included in Holding segment's P&L.

The share of NOBA’s (previously known as Nordax) profit is no longer consolidated

into Holding segment’s P&L from the start of year 2023 due to reclassification from an

associated company to a fair value investment.

Board of Directors’

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Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	15

Financial position

Group solvency

Sampo Group’s pro forma Solvency II ratio, adjusted for

the demerger-related transactions, amounted to 182 per

cent at the end of 2023, based on own funds of EUR

5,849 million and solvency capital requirement (SCR) of

EUR 3,217 million. The regulatory Solvency II ratio

amounted to 177 per cent (210) based on own funds of

EUR 5,849 million (8,083) and SCR of EUR 3,301 million

(3,857).

The decrease from 210 per cent at the year-end 2022

was primarily driven by the demerger. Sampo’s

Solvency II ratio target for 2021-2023 was 170-190 per

cent.

Financial leverage position

Sampo Group’s financial leverage is calculated as Group

financial debt divided by the sum of IFRS shareholders’

equity and financial debt. Sampo’s financial leverage

target for 2021-2023 was below 30 per cent.

Sampo Group’s shareholders’ equity amounted to EUR

7,687 million and financial debt to EUR 2,604 million on

31 December 2023, translating into a financial leverage

of 25.3 per cent.

At the end of 2022, shareholders’ equity amounted to

10,178 million (IFRS 17) and financial debt to EUR 3,288

million, translating into a financial leverage of 24.4 per

cent.

The decrease in shareholders’ equity in 2023 was driven

by the demerger and capital returns to shareholders

during the year. Financial debt decreased due to the

demerger and maturity of EUR 318 million senior debt in

September 2023.

Adjusting for the proposed dividend of EUR 1.80 per

share, financial leverage was 27.7 per cent at the end of

2023. More information on Sampo Group’s

outstanding debt issues is available at

www.sampo.com/debtfinancing.

Financial debt

Sampo Group, 31 December 2023


EURm	Sampo plc	If	Topdanmark	Hastings	Eliminations	Group total
Sub/hybrid	1,490	135	148	0	-127	1,645
Senior bonds	959	0	0	0	0	959
Total	2,449	135	148	0	-127	2,604

Board of Directors’

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	BOARD OF DIRECTORS’ REPORT 2023	16

Ratings

Relevant ratings for Sampo Group companies on 31 December 2023 are presented in the table below.


Rated company	Moody’s		Standard & Poor’s
	Rating	Outlook	Rating	Outlook
Sampo plc – Issuer Credit Rating	A3	Positive	A	Stable
If P&C Insurance Ltd – Insurance Financial Strength Rating	A1	Positive	AA-	Stable
If P&C Insurance Holding Ltd (publ) - Issuer Credit Rating	-	-	A	Stable

Fitch rating on Hastings was discontinued during the second quarter due to no outstanding debt issues.

Board of Directors’

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	BOARD OF DIRECTORS’ REPORT 2023	17

Other developments

Demerger of Sampo plc

Following the announcement of strategic review of Mandatum in December 2022, the

Board of Directors of Sampo plc resolved on 29 March 2023 to propose to the Annual

General Meeting a partial demerger of Sampo plc to separate Mandatum from Sampo

Group. The Annual General Meeting held on 17 May 2023 resolved to approve the

partial demerger as set forth in the demerger plan approved by the Board on 29 March

2023. The demerger was successfully completed on 1 October 2023.

In the demerger, all of the shares in Mandatum Holding Ltd (a wholly-owned direct

subsidiary of Sampo plc) and related assets and liabilities were transferred without a

liquidation procedure to Mandatum plc, a company incorporated in the demerger on

the effective date. Mandatum shares were listed on Nasdaq Helsinki on 2 October

2023.

Effects of the partial demerger

Mandatum was consolidated in Sampo Group’s P&L and balance sheet until the end of

September. The following table illustrates the financial effects of the demerger on the

Group’s January-September 2023 results and on the Group’s balance sheet at the end

of September 2023. Since a dividend liability was established for Mandatum during the

third quarter, Mandatum’s contribution has been added back into Sampo’s end of

September shareholders’ equity and financial debt figures in the table. As such, these

figures do not correspond to reported numbers.


Key figures 1-9/2023		Pro forma, including Mandatum*	Pro forma, excluding Mandatum**
Net profit for the equity holders of the parent	EURm	941	801
Earnings per share	EUR	1.86	1.58
Own funds	EURm	8,918	6,589
Own funds, including dividend accrual	EURm	—	6,026
Solvency capital requirement	EURm	3,776	3,087
Solvency II ratio	%	236	213
Solvency II ratio, including dividend accrual	%	—	195
IFRS shareholders’ equity	EURm	9,033	7,309
Financial debt	EURm	2,860	2,610
Financial leverage	%	24.0	26.3

* Pro forma figures related to solvency and financial leverage exclude all demerger effects and

related transactions.

** Pro forma figures related to solvency and financial leverage include all demerger effects and

related transactions. Dividend accrual is based on the regular dividend of EUR 1.50 per share for

2022, i.e. excluding Mandatum’s contribution.

As the Board of Directors resolved to complete the demerger of Sampo plc during the

third quarter, a dividend liability equal to the estimated fair value of Mandatum’s net

assets was recognised on the Group’s balance sheet. This had a negative effect of EUR

1,826 million on Sampo’s shareholders’ equity at 30 September 2023.

Board of Directors’

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	BOARD OF DIRECTORS’ REPORT 2023	18

After the demerger completed on 1 October, the

dividend liability was remeasured against a fair value

based on Mandatum’s weighted average share price on

the first trading day on Nasdaq Helsinki, amounting to

EUR 1,835 million. The EUR 9 million difference between

the revised fair value of the dividend liability and the net

assets at the end of September was taken through the

P&L in the fourth quarter. The effect had no impact on

cash flow or solvency.

Following completion of the demerger, EUR 102 million

of long term debt was reallocated from Sampo plc to

Mandatum, to satisfy conditions for tax neutrality.

Adjusting for this, Sampo’s pro forma shareholders’

equity for the end of the third quarter would have been

EUR 7,309 million.

The reallocation of the long-term debt had a positive

effect of EUR 102 million in the Group’s profit before

taxes and net profit in the fourth quarter. With the

valuation difference of EUR 9 million mentioned above,

the total accounting effects on profit before taxes and

net profit from the debt reallocation amounted to EUR

111 million for the fourth quarter.

Planned transactions in connection

with the demerger

Sampo sold or plans to sell certain assets to Mandatum

in connection with the demerger. These assets include

holdings in Saxo Bank and Enento Group, guarantee

shares of Kaleva Mutual Insurance Company and other

smaller equity, debt and alternative investments.

Additional details are available at

www.sampo.com/demerger.

Mandatum’s financial development

Mandatum’s profit before taxes consolidated in Sampo

Group’s P&L amounted to EUR 173 million and net profit

to EUR 140 million in January-September 2023. The

total net profit booked under life operations for 2023

amounted to EUR 252 million, as this includes the EUR

111 million of demerger related accounting effects in the

fourth quarter.

Group Partial Internal Model

application

Following the completion of the demerger of Sampo

plc, the Swedish FSA (Finansinspektionen) became

Sampo’s group prudential supervisor as of 1 October

2023. As a result, Sampo refiled its application for a

Group Partial Internal Model to the Swedish FSA on 2

October 2023. The application had previously been filed

with Finnish FSA. Sampo expects that the application

process will be completed during the first half of 2024.

The Partial Internal Model recognises the risk profile of

Sampo’s P&C operations better than the Standard

Formula and it is estimated that it would have reduced

the group-level solvency capital requirement (SCR) by

up to EUR 0.3 billion in 2023.

Board of Directors’

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	BOARD OF DIRECTORS’ REPORT 2023	19

Shares, share capital and shareholders

Shares and share capital

At the end of 2023, Sampo plc had 501,796,752 shares,

which were divided into 501,596,752 A shares and

200,000 B shares. The total number of votes attached

to the shares was 502,596,752. Each A share entitles the

holder to one vote and each B share entitles the holder

to five votes at the General Meeting of Shareholders.

In 2023, Sampo cancelled 14,782,760 of its own A

shares that were repurchased under the share buyback

programmes in 2022 and 2023. These shares were

cancelled in March and August 2023.

At the end of 2023, Sampo plc’s share capital amounted

to EUR 98 million (98) and the equity capital in total to

EUR 7,687 million (10,178).

The Annual General Meeting held on 17 May 2023

decided on the deletion of the minimum and maximum

amounts set for the company’s A and B shares in the

Articles of Association due to the authorisation granted

to the Board to resolve upon a share split.

Sampo plc’s Articles of Association contain a

redemption obligation (16§) ,according to which, a

shareholder whose holding of all shares or of all votes

relating to the shares reaches or exceeds 33 1/3 per

cent or 50 per cent, is obliged to redeem, at the

presentation of claims by other shareholders, their

shares and the documents giving entitlement to the

shares, as stipulated in the Finnish Companies Act, in

the manner prescribed in the Article. The Article

contains further provisions on calculating the

shareholder’s holding and redemption price.

Sampo A shares have been quoted on Nasdaq Helsinki

since 1988 and all of the B shares are held by Kaleva

Mutual Insurance Company. B shares can be converted

into A shares at the request of the holder.

Sampo’s Swedish Depositary Receipts (SDR) have been

quoted on Nasdaq Stockholm since 2022. Helsinki-listed

A shares can be converted into SDRs and vice versa.

Approximately 2.1 million SDRs were issued at the end

of 2023.

Shareholders by the number of shares held

Sampo plc, 31 December 2023


Number of shares	Shareholders, number	Share- holders, %	Shares, number	Shares, %	Voting rights, number	Voting rights, %
1–100	110,146	53.21	4,614,546	0.92	4,614,546	0.92
101–500	65,836	31.81	15,989,786	3.19	15,989,786	3.18
501–1,000	15,006	7.25	11,180,875	2.23	11,180,875	2.22
1,001–5,000	13,414	6.48	28,078,213	5.60	28,078,213	5.59
5,001–10,000	1,518	0.73	10,652,503	2.12	10,652,503	2.12
10,001–50,000	875	0.42	16,947,504	3.38	16,947,504	3.37
50,001–100,000	90	0.04	6,610,344	1.32	6,610,344	1.32
100,001–500,000	72	0.03	13,643,773	2.72	13,643,773	2.71
500,001–	35	0.02	394,079,208	78.53	394,879,208	78.57
Total	206,992	100	501,796,752	100	502,596,752	100
of which nominee registered	11		301,533,372	60.09	301,533,372	60.00

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	BOARD OF DIRECTORS’ REPORT 2023	20

Share price performance

Sampo plc, 2019–2023

Share price performance adjusted for the partial demerger in 2023.

Monthly trading volume

Sampo plc, 2019–2023

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	BOARD OF DIRECTORS’ REPORT 2023	21

Authorisations granted to the

Board

The Annual General Meeting held on 17 May 2023

authorised the Board to repurchase a maximum of

50,000,000 Sampo A shares, representing

approximately 9.7 per cent of all outstanding shares.

The Board was also authorised to resolve upon a share

issue without payment (share split). Based on this

authorisation, the Board can resolve to issue new shares

to all shareholders without payment in proportion to

their holdings so that a maximum of 5 new A and B

shares would be issued for each current A and B shares

respectively. If the Board decided on a share split, a

maximum of 300,000,000 A shares could be

repurchased.

The authorisation to decide on a repurchase of own

shares is valid until the close of the next Annual General

Meeting, expected to be held on 25 April 2024,

nevertheless not more than 18 months after AGM’s

decision. The authorisation to decide upon a share split

is valid until the next AGM, however at the latest until

30 June 2024.

Shareholders

The number of Sampo plc’s Finnish-registered

shareholders increased during 2023 by 8,849

shareholders to 206,992 as at 31 December 2023. The

holdings of nominee-registered and foreign

shareholders stood stable at 60.3 per cent (61.7) of the

shares and 60.2 per cent of the votes (61.6). Sampo did

not hold any own shares at the end of 2023.

On 31 December 2023, the total number of Sampo A

shares owned directly, indirectly or through financial

instruments by BlackRock Inc. and its funds was above

5 per cent of Sampo’s total stock. The total number of

voting rights attached to Sampo A shares was above 5

per cent of Sampo’s total voting rights.

Sampo did not receive any flagging notifications of

change in holding pursuant to Chapter 9, Section 5 of

the Securities Markets Act during in 2023.

The latest notifications are available at

www.sampo.com/flaggings.

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	BOARD OF DIRECTORS’ REPORT 2023	22

Shareholders

Sampo plc, the largest shareholders registered in Finland, 31 December 2023


A and B shares	Number of shares	% of share capital	% of votes
Solidium Oy	33,278,580	6.63	6.62
Varma Mutual Pension Insurance Company	22,248,420	4.43	4.43
Ilmarinen Mutual Pension Insurance Company	6,037,057	1.20	1.20
Oy Lival AB	4,020,000	0.80	0.80
Elo Mutual Pension Insurance Company	3,968,000	0.79	0.79
The State Pension Fund	2,900,000	0.58	0.58
OP Life Assurance Company Ltd	1,834,542	0.37	0.37
Svenska litteratursällskapet i Finland r.f.	1,469,150	0.29	0.29
Nordea Nordic Fund	1,343,000	0.27	0.27
OP-Finland Fund	1,331,025	0.27	0.26
Nordea Pro Finland Fund	1,188,034	0.24	0.24
Evli Finland Select Fund	1,185,000	0.24	0.24
OMX Helsinki 25 Exchange Traded Fund	1,149,960	0.23	0.23
Åbo Akademi University Foundation	1,063,872	0.21	0.21
Nordea Life Assurance Finland Ltd.	904,380	0.18	0.18
Samfundet folkhälsan i Svenska Finland rf	848,402	0.17	0.17
Nordea Suomi	841,844	0.17	0.17
Keva	814,100	0.16	0.16
OP Finland Index Fund	808,173	0.16	0.16
Föreningen Konstsamfundet rf	800,000	0.16	0.16
Foreign and nominee registered total	302,593,499	60.30	60.21
Other total	111,169,714	22.15	22.12
Total	501,796,752	100	100

Shareholders by sector

Sampo plc (A and B shares), 31 December 2023


Sector	Number of shares	%
Corporations	20,004,337	3.99
Financial institutions and insurance corporations	17,654,345	3.52
Public institutions	70,733,556	14.10
Non-profit institutions	13,830,150	2.76
Households	76,980,865	15.34
Foreign ownership and nominee registered	302,593,499	60.30
Total	501,796,752	100

Holdings of the Board and Executive

Management

The following table presents the Board’s and Group Executive Committee’s holdings of

Sampo A shares.

At the end of 2023, members of Sampo plc’s Board of Directors and their close family

members owned either directly or indirectly 197,429 (195,664) Sampo A shares. Their

combined holdings constituted 0.04 per cent (0.04) of shares and related votes.

Members of the Group Executive Committee and their close family members owned

either directly or indirectly 227,321 (564,438) Sampo A shares representing 0.05 per

cent (0.1) of shares and related votes.

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	23

Shares owned by the Board of Directors and the Group

Executive Committee

Sampo plc, 31 December 2023 and 31 December 2022


Board of Directors	31 Dec 2023	31 Dec 2022
Antti Mäkinen1	7,010	—
Jannica Fagerholm	8,751	7,597
Christian Clausen	38,479	37,819
Fiona Clutterbuck	3,678	2,853
Georg Ehrnrooth	129,532	128,681
Johanna Lamminen2	—	2,695
Steve Langan	1,498	673
Risto Murto	5,169	4,449
Markus Rauramo	2,407	1,668
Björn Wahlroos3	—	9,229
Annica Witschard1	905	—
Total	197,429	195,664
Board of Directors ownership of shares, %	0.04	0.04
Board of Directors share of votes, %	0.04	0.04


Group Executive Committee	31 Dec 2023	31 Dec 2022
Torbjörn Magnusson	46,268	46,480
Knut Arne Alsaker	43,412	39,646
Ingrid Janbu Holthe	5,588	1,875
Patrick Lapveteläinen4	—	276,423
Petri Niemisvirta4	—	93,470
Ville Talasmäki5	17,801	—
Morten Thorsrud	65,788	61,344
Ricard Wennerklint	48,464	45,200
Total	227,321	564,438
Group Executive Committee's ownership of shares, %	0.05	0.1
Group Executive Committee's share of votes, %	0.05	0.1

1 Member of the Board of Directors since 17 May 2023

2 Member of the Board of Directors until 1 October 2023

3 Member of the Board of Directors until 17 May 2023

4 Member of the Group Executive Committee until 1 October 2023

5 Member of the Group Executive Committee since 1 October 2023

Share buyback programmes

In 2023, Sampo repurchased its own A shares under two different buyback

programmes based on the authorisation granted by the Annual General Meeting of

2022.

On 9 June 2022, Sampo’s Board launched a EUR 1 billion buyback programme. The

programme started on 10 June 2022 and was completed on 8 February 2023. Through

this programme, Sampo repurchased 22.1 million shares, of which 3.2 million were

repurchased in 2023. The average price amounted to EUR 45.28 per share.

On 29 March 2023, the Board launched a new EUR 400 million buyback programme.

The programme started on 3 April 2023 and was completed on 1 August 2023.

Through this programme, Sampo repurchased 9.4 million shares at an average price of

EUR 42.64 per share.

In total, Sampo repurchased 12.6 million shares in 2023, corresponding to

approximately 2.4 per cent of cent of all shares based on the share count prior to the

start of these programmes. These shares were cancelled in March and August 2023.

Further details on the company’s share buyback programmes are available at

www.sampo.com/sharebuyback.

Board of Directors’

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Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	24

Governance and related issues

Governance

During 2023, Sampo complied in full with the Finnish

Corporate Governance Code 2020 approved by the

Securities Market Association on 19 September 2019,

effective from 1 January 2020 (the “CG Code 2020”). In

compliance with the Corporate Governance Code,

Sampo publishes a separate Corporate Governance

Statement on its website in fulfilment of the

requirement referred to in the Finnish Securities Markets

Act (746/2012), Chapter 7, Section 7.

The statement will be available at

www.sampo.com/year2023.

Annual General Meeting

The Annual General Meeting held on 17 May 2023

decided to distribute a dividend of EUR 2.60 per share

for 2022. The record date for the dividend payment was

22 May 2023 and the dividend was paid to Sampo

shareholders on 31 May 2023 and to Sampo SDR

holders on 2 June 2023. The Annual General Meeting

adopted the financial accounts for 2022 and discharged

the Board of Directors and the CEO from liability for the

financial year.

The AGM increased the number of the members of the

Board of Directors to ten members. Christian Clausen,

Fiona Clutterbuck, Georg Ehrnrooth, Jannica

Fagerholm, Johanna Lamminen, Steve Langan, Risto

Murto and Markus Rauramo were re-elected to the

Board. Antti Mäkinen and Annica Witschard were

elected as new members to the Board. The members of

the Board were elected for a term continuing until the

close of the next Annual General Meeting.

At its organisational meeting, the Board elected Antti

Mäkinen as Chair and Jannica Fagerholm as Vice Chair.

Christian Clausen, Risto Murto, Antti Mäkinen (Chair)

and Markus Rauramo were elected to the Nomination

and Remuneration Committee. Fiona Clutterbuck,

Georg Ehrnrooth, Jannica Fagerholm (Chair), Johanna

Lamminen, Steve Langan and Annica Witschard were

elected to the Audit Committee.

All the Board members have been determined to be

independent of the company and its major shareholders

under the rules of the Finnish Corporate Governance

Code 2020. The curriculum vitaes of the Board

Members are available at www.sampo.com/board.

The AGM decided to pay the following fees to the

members of the Board of Directors until the close of the

2024 AGM: the Chair of the Board will be paid an annual

fee of EUR 228,000 and other members of the Board

will be paid EUR 101,000 each. In addition, the members

of the Board and its Committees will be paid the

following annual fees: the Vice Chair of the Board EUR

30,000, the Chair of the Audit Committee EUR 28,000

and the member of the Audit Committee EUR 6,400

each. A Board member shall, in accordance with the

resolution of the Annual General Meeting, acquire

Sampo plc A shares at the price paid in public trading

for 50 per cent of his/her annual fee after the deduction

of taxes, payments and potential statutory social and

pension costs. The company will pay any possible

transfer tax related to the acquisition of the company

shares.

The AGM accepted Sampo plc’s Remuneration Report

for Governing Bodies. The resolution was advisory.

Deloitte Ltd was re-elected as Auditor of Sampo plc.

The Auditor will be paid a fee determined by an invoice

approved by Sampo. Jukka Vattulainen, APA, will act as

the principally responsible auditor.

The AGM updated the business area of the company on

the Company’s Articles of Association to reflect the

company’s current strategy and main business area. In

addition, the minimum and maximum amounts set for

the Company’s A and B shares were deleted. The AGM

also resolved to amend article 11 § of the Company’s

Articles of Association such that, should the Board of

Directors so decide, General Meetings may be convened

as a so-called hybrid or remote meeting.

As part of the resolution on the demerger of Sampo plc

and conditional upon the registration of the completion

of the demerger, the AGM resolved to establish a new

entity, Mandatum plc, approve its articles of association,

and elect Markus Aho, Jannica Fagerholm, Kimmo

Laaksonen, Johanna Lamminen, Patrick Lapveteläinen

and Jukka Ruuska to Mandatum plc’s Board of

Directors. It was proposed that said Board of Directors

elect from among themselves Patrick Lapveteläinen as

the Chair and Jannica Fagerholm as the Vice Chair of

the Board of Directors.

Board of Directors’

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Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	25

The AGM also resolved to, until the close of the first

Annual General Meeting of Mandatum following the

partial demerger pay a term fee of EUR 27,000 to each

member of the Board of Directors, EUR 42,000 to the

Chair of the Board of Directors and EUR 36,000 to the

Vice Chair of the Board of Directors; pay meeting fees

for each meeting of the Board of Directors of EUR 600

for each member of the Board of Directors and EUR

1,500 for the Chair of the Board of Directors and the

Vice Chair of the Board should she chair the meeting;

pay meeting fees for each meeting of the Audit

Committee of EUR 600 for each member of the Audit

Committee and EUR 1,000 for the Chair of the Audit

Committee.

The AGM elected Deloitte Ltd as Mandatum plc’s

auditor, with Reeta Virolainen, APA, acting as the

principally responsible auditor, and resolved for the

auditor to be paid a fee determined by an invoice

approved by Mandatum plc. The AGM also resolved to

establish a Shareholders’ Nomination Board for

Mandatum plc.

Including proxy representatives, there were altogether

324,489,527 shares (63.5 per cent of shares) and

325,289,527 votes (63.5 per cent of all votes) in the

company represented at the Annual General Meeting.

The minutes of the Annual General Meeting are

available for viewing at www.sampo.com/agm and at

Sampo plc's head office at Fabianinkatu 27, Helsinki,

Finland.

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	26

Risk management

Sampo’s capital management framework aims to

support value creation by enabling its strategy.

Quantitative targets are set for group solvency and

group financial leverage, but other metrics are also

steered, such as adequate liquidity buffers.

Subsidiary balance sheets are calibrated to cover needs

for business plans and to provide a stable dividend.

Potential risk concentrations and adequate

diversification of risks are generally monitored closely,

and their sources are analysed. To the extent possible

Group-level risk concentrations are proactively

prevented by strategic decisions.

Sampo Group companies operate in business areas

where specific features of value creation are the pricing

of risks and the active management of risk portfolios in

addition to sound customer services. Successful

management of underwriting risks and investment

portfolio market risks is the main source of earnings for

Sampo Group companies.

In Sampo Group the risks associated with business

activities fall into three main categories: business risks

associated with external drivers affecting the

competitive environment or resulting from lack of

internal operational flexibility, reputational risk

associated with the company’s business practices or

associations and risks inherent in business operations.

A more detailed description of Sampo Group’s risk

management activities, governance, risks, and

capitalisation is available in the Risk Management

Report 2023 at www.sampo.com/year2023.

Remuneration

The Board of Directors has established the Sampo

Group Remuneration Principles, which apply to all

Sampo Group companies. The Remuneration Principles

are part of Sampo Group's internal governance

framework and describe the remuneration structure and

the principles for setting up remuneration systems in

Sampo Group. The Remuneration Principles may apply

to the Group CEO, insofar as they do not conflict with

Sampo plc’s Remuneration Policy for Governing Bodies.

The core of the Remuneration Principles is that all

remuneration systems in Sampo Group shall safeguard

the long-term financial stability and value creation of

Sampo Group and shall comply with regulatory and

ethical standards. They shall also be aligned with the

risk management framework and thus be designed in

parallel with the risk management principles and

practices.

Remuneration mechanisms shall encourage and

stimulate employees to do their best and surpass their

targets. Remuneration packages shall be designed to

reward fairly for prudent and successful performance.

At the same time, however, in order to safeguard the

interest of other stakeholders, remuneration

mechanisms shall not generate conflicts of interest and

shall not entice or encourage employees to excessive or

unwanted risk taking.

The different forms of remuneration used in Sampo

Group are the following:

(a) Fixed Compensation

(b) Variable Compensation

(d) Other Benefits

Fixed compensation is the basis of an employee’s

remuneration package. Fixed salary shall support

financial stability by representing a sufficiently high

share of the total remuneration. Variable compensation

is used to ensure the competitiveness of total

remuneration packages. Variable compensation can

either be based on the contribution to the company’s

profitability and on individual performance (short-term

incentive programs) or be linked to committing

employees to Sampo Group for a longer period and

aligning the employees' interests with those of the

shareholders by linking the payout of the schemes to

key performance criteria and, if applicable, to the

positive development of Sampo’s share price (long-

term incentive schemes). The members of the Board of

Directors do not participate in any short-term incentive

programs or long-term incentive schemes.

The payment of variable compensation shall be based

on the assessment of the incurred risk exposure and the

fulfilment of solvency capital requirements. The

payment of a certain portion of the variable

compensation payable to the Senior Executive

Management and to certain key persons shall be

deferred for a defined period of time, as required in the

regulatory framework applicable to each Sampo Group

company. After the deferral period, a retrospective risk

adjustment review shall be carried out and the Board of

Directors of each Sampo Group company shall decide

whether the deferred variable compensation shall be

paid/released in full, partly or cancelled in whole. In

2023, a total of EUR 6.5 million (7.0) of short-term and

long-term incentives has been deferred.

The Board of Directors decides on the launch of long-

term incentive schemes based on financial instruments

of Sampo plc. No new long-term incentive schemes

based on financial instruments of Sampo plc were

launched in 2023. The last instalment of the long-term

Board of Directors’

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Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	27

incentive scheme 2017 and the first instalment of the

long-term incentive scheme 2020 vested in 2023.

The vesting of the schemes is determined on the basis

of Sampo's share price development and dividends paid

over each instalment’s performance period, starting

from the issue of the schemes, and performance criteria

related to the insurance margin and/or return on capital

at risk (RoCaR) applicable for each instalment. Both

incentive schemes contain a cap for maximum payout.

The terms and conditions of the incentive schemes are

available at www.sampo.com/incentiveterms.

A deferral rule applies to incentive rewards paid to the

Senior Executive Management and to certain key

persons. Persons subject to the deferral rule shall at

payout from the schemes acquire Sampo A shares with

a certain part of the instalment after deducting income

tax and other comparable charges. The shares are

subject to disposal restrictions for three years, after

which the Board of Directors shall decide on the

possible release.

A total of EUR 71 million (77), including social costs, was

paid as short-term incentives in January-December

2023 in Sampo Group. In the same period, a total of 38

million (35) was paid as long-term incentives. The long-

term incentive schemes in force in Sampo Group

produced a negative result impact of EUR -10 million

(-43).

The 2022 Remuneration Report for Governing Bodies

was presented to the Annual General Meeting in 2023.

The AGM resolved to adopt the Remuneration Report

and the resolution was made without being voted on,

which is considered unanimous acceptance based on

Finnish law.

Sampo plc publishes the 2023 Remuneration Report

for Governing Bodies in connection with the Board of

Directors’ Report at www.sampo.com/year2023. The

Remuneration Report for Governing Bodies provides

information on the remuneration of the Board of

Directors and the Group CEO, and has been prepared in

accordance with the Corporate Governance Code 2020.

The Corporate Governance Code 2020 can be viewed

in full on the website of the Securities Market

Association at www.cgfinland.fi/en.

Sampo plc presents the updated Remuneration Policy

for Governing Bodies to the 2024 Annual General

Meeting. The Remuneration Policy defines how the

remuneration of the Group CEO and the members of

the company’s Board of Directors has been arranged.

The Remuneration Policy has been developed in

accordance with the requirements set forth by the

amended EU Shareholders’ Rights Directive, as

implemented into Finnish legislation. The previous

Remuneration Policy was adopted by the AGM in 2020.

The updated Remuneration Policy is available at

www.sampo.com/agm.

Changes in Group structure

On 29 March 2023, the Board of Directors of Sampo plc

proposed to the Annual General Meeting a partial

demerger of Sampo plc to separate its fully-owned

subsidiary Mandatum from Sampo Group. The AGM

held on 17 May 2023 resolved to approve the demerger

plan and the demerger was successfully completed on 1

October 2023. Further information is available in the

section Effects of the partial demerger and Note 32.

On 16 March 2023, Topdanmark A/S disclosed that

Topdanmark Forsikring A/S has signed an agreement to

acquire Oona Health A/S and all subsidiaries. On 27

October 2023, Topdanmark received the final

regulatory approval for the acquisition of Oona Health

A/S from the Danish Competition and Consumer

Authority, and the acquisition was completed on 1

December 2023. Further information is available in

Note 34.

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	28

Sampo Group structure

31 December 2023

Board of Directors’

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Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	29

Changes in the Group

management and the Board

of Directors

Following the completion of the partial demerger of

Sampo plc on 1 October 2023, the Sampo Group

Executive Committee (GEC) terms of Patrick

Lapveteläinen, former Sampo Group CIO, and Petri

Niemisvirta, CEO of Mandatum, ended. As of the same

day, Ville Talasmäki was appointed as Group Chief

Investment Officer and Group Executive Committee

Member of Sampo.

Head of BA Commercial Klas Svensson was appointed

to the Group Executive Committee on 13 December

2023. Svensson started in the GEC on 1 January 2024.

After the changes, there are seven members in the

Sampo GEC, equivalent to the number of GEC members

in the beginning of 2023.

The Annual General Meeting of 17 May 2023 decided to

increase the number of members of the Board of

Directors to ten members. The number of the Board

members decreased to nine in the middle of the term as

Johanna Lamminen left the Board of Directors upon the

completion of the partial demerger of Sampo plc in

October 2023, as set in the demerger plan. After the

partial demerger, the Board of Directors consists of nine

members until the close of the Annual General Meeting

to be held in 2024.

At the AGM, Antti Mäkinen was elected as Chair of the

Board. Björn Wahlroos, the former Chair of the Board of

Directors, was not available for re-election.

Board of Directors’

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Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	30

Sampo Group organisation

31 December 2023

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	31

Personnel

The average number of employees (FTE) in Sampo Group’s P&C operations in 2023

was 13,272 (12,947). On 31 December 2023, the total number of staff in the Group’s

P&C operations was 13,450 (12,861).

Number of personnel

Sampo Group 2023


Sampo Group personnel (P&C operations)	Average personnel (FTE) 2023	%	Average personnel (FTE) 2022	%
By company
If	7,858	59	7,496	58
Hastings	3,200	24	3,021	23
Topdanmark	2,160	16	2,381	18
Sampo plc*	54	0.4	50	0.4
Total	13,272	100	12,947	100

By country
United Kingdom	3,176	24	3,000	23
Denmark	2,756	21	2,969	23
Finland	1,934	15	1,838	14
Sweden	2,446	18	2,379	18
Norway	1,613	12	1,580	12
Other countries	1,346	10	1,181	9
Total	13,272	100	12,947	100

*At the end of 2023, the total personnel (FTE) at Sampo plc amounted to 58 (51), of which 49 (46)

worked at the headquarters in Finland and 9 (5) at the branch office in Sweden.

Board of Directors’

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Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	32

Sustainability

Sampo will issue a report on non-financial information in

accordance with Chapter 3a, Section 5 of the

Accounting Act. The report, Sampo Group

Sustainability Report 2023, will be separate from

the Board of Directors’ Report and published

around the turn of March and April 2024 at

www.sampo.com/year2023. Sampo will integrate the

Group’s sustainability reporting into the Board of

Directors’ report according to the requirements of the

Corporate Sustainability Reporting Directive (CSRD) in

2025 covering the reporting year 2024.

Highlights from year 2023

Sampo has a sustainability programme, which drives the

sustainability work on a group level. The programme

consists of strategic sustainability themes and under

each of the themes the most material sustainability

topics have been identified. Sampo’s sustainability

themes are Sustainable business management and

practices, Sustainable corporate culture, Sustainable

investment management and operations, Sustainable

products and services, and Sustainable communities.

During 2023, Sampo continued to work on sustainability

in line with the themes.

Business management and

practices

In 2023, Sampo started to prepare for the

implementation of the CSRD and the related European

Sustainability Reporting Standards (ESRS). Sampo

conducted, for example, a double materiality

assessment, a human rights impact assessment, and a

gap analysis against the ESRS. The implementation of

the legislation will continue in 2024, with the focus on

meeting the identified gaps, development of internal

processes, data collection, and final reporting.

During 2023, Sampo committed to the Science Based

Targets initiative (SBTi) and started to develop science-

based climate targets for its own operations and

investments. The targets will be submitted to the SBTi

for validation no later than October 2025. In addition,

the individual Group companies continued to work on

their company-specific targets according to schedule.

If’s targets were validated during the year, and Hastings

and Topdanmark will submit their targets for validation

in 2024.

Corporate culture

In 2023, Sampo advanced sustainable corporate culture,

for example, by updating related policies, conducting

employee surveys, launching new employee initiatives,

and developing training. The results of the continued

efforts are visible, as If, Topdanmark, and Hastings were

all able to exceed their employee engagement targets .

Sampo considers it important that there is an inclusive

corporate culture. Therefore, in 2023, a specific focus

area was diversity, equity, and inclusion (DEI). Sampo

introduced new targets, initiatives, partnerships, and

policy updates related to DEI. In addition, development

could be seen related to inclusive recruitment practices,

awareness raising, and overall DEI work, among others.

Investment management and

operations

Sampo maintained its focus on responsible investment

practices during 2023. Investment policies were

strengthened by adding further instructions on how to

take environmental, social, and governance (ESG)

issues into account in investment processes. Climate-

related considerations were highlighted, as Sampo is

committed to setting science-based climate targets for

its investments according to the SBTi’s methodology. In

2024, Sampo wants to develop group-level reporting

on responsible investment.

Products and services

In 2023, Sampo continued to develop the sustainability

of its supply chains. For example, If introduced a new

science-based climate target for its supply chain stating

that 30 per cent of the company’s suppliers by spend

covering purchased goods and services should have

science-based targets by 2028. Also, Topdanmark

continued to work on setting science-based climate

targets for its supply chain, while at the same time

focusing on the company’s existing supply chain-related

goals set for 2025. Hastings completed an ESG due

diligence on all critical suppliers and is committed to

developing a Supplier Code of Conduct during 2024.

Sampo also worked on the EU Taxonomy. During 2023,

Sampo analysed to what extent its underwriting and

investment activities are Taxonomy-eligible and

Taxonomy-aligned according to the latest guidance

from the EU.

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	33

EU Taxonomy

The EU Taxonomy is a classification system that

translates the EU’s climate and environmental

objectives into criteria for specific economic activities

for investment purposes. The Taxonomy is part of the

EU’s efforts to achieve ambitious development goals in

line with Agenda 2030 and the Paris Climate

Agreement. The aim is to provide a common language

to help investors and companies navigate the transition

to a low-carbon, resilient, and resource-efficient

economy.

The basic principle of the EU Taxonomy is that for an

economic activity to be recognised as environmentally

sustainable (Taxonomy-aligned), it must make a

substantial contribution to at least one of the EU’s

climate and environmental objectives, which are climate

change mitigation; climate change adaptation;

sustainable use and protection of water and marine

resources; transition to a circular economy; pollution

prevention and control; and protection and restoration

of biodiversity and ecosystems. In addition, the

economic activity cannot significantly harm any of

these objectives and must meet the minimum

safeguards criteria. The Taxonomy Delegated Acts

establish and maintain criteria (i.e. technical screening

criteria) for activities, which have a substantial positive

environmental impact.

The EU Taxonomy is implemented gradually. For the

financial years 2021 and 2022, insurance companies

were required to report on Taxonomy eligibility (i.e.

reporting on whether the economic activity is included

in the Taxonomy Climate Delegated Act). Reporting on

Taxonomy alignment (i.e. reporting on whether the

economic activity meets the technical criteria for i)

substantial contribution, ii) do no significant harm, and

iii) comply with minimum safeguards) is required for

reporting from the financial year 2023 onwards.

Therefore, Sampo Group reports the EU Taxonomy

alignment of its insurance activities and investment

portfolio for the first time as part of the 2023 Board of

Directors’ Report.

Insurance companies are required to report key

performance indicators (KPIs) on sustainable

underwriting activities and sustainable investments. The

first one refers to the proportion of the non-life gross

written premiums (GWP) – in relation to total non-life

GWP – corresponding to insurance activities identified

as environmentally sustainable in the EU Taxonomy and

the second one to the proportion of the insurer’s or

reinsurer’s investments that are directed at or

associated with funding economic activities that qualify

as environmentally sustainable.

Sustainable underwriting activities

Non-life insurance and reinsurance are recognised as

enabling economic activities that can make a

substantial contribution to the environmental objective

of climate change adaptation. At the time of writing this

report, the EU Taxonomy does not define other

environmental objectives for insurance activities.

The non-life insurance activities listed in the Taxonomy

Delegated Acts are (a) medical expense insurance, (b)

income protection insurance, (c) workers’

compensation insurance, (d) motor vehicle liability

insurance, (e) other motor insurance, (f) marine,

aviation, and transport insurance, (g) fire and other

damage to property insurance, and (h) assistance.

Premiums related to life insurance and general liability

insurance are not listed in the Taxonomy and are,

therefore, not eligible.

Methodology

To be eligible, a non-life insurance activity must provide

coverage against climate-related perils (e.g. flooding,

landslides, and heat stress). In 2021 and 2022 Sampo

Group calculated and reported the Taxonomy eligibility

of its insurance activities by following the industry best

practice at the time. If an insurance policy did not

explicitly exempt climate-related events from coverage,

Sampo Group concluded that the insurance product

encompassed coverage against climate-related perils.

Sampo Group interpreted that if there was some cover

against climate-related perils for an insurance activity,

total premiums were to be assessed as eligible even

though there might have been climate-related

exceptions in the terms and conditions. This

methodology resulted in eligibility scores of 93.3 per

cent and 92.3 per cent for the years 2021 and 2022,

respectively, as Sampo Group’s insurance policies do

not, in general, exempt climate-related events from

coverage.

In 2023, Sampo Group has revised its methodology to

calculate Taxonomy eligibility to be in line with the

European Commission Notice (draft) on the

interpretation of certain legal provisions of the

Disclosures Delegated Act under Article 8 of the EU

Taxonomy Regulation, published on 21 December 2023.

Sampo Group has aimed at following the guidance

provided by the Notice as closely as possible, and for

the year 2023 solely the share of insurance premiums

that only pertain to the coverage of climate-related

perils is reported as eligible. Due to the late publication

of the guidance, Sampo Group was not able to gather

data of its whole insurance portfolio based on the new

methodology. Eligibility could be calculated for the

property insurance products, which were in focus for

the Taxonomy alignment assessment, as the data on the

share of the premium related to coverage of climate

related perils was available.

Board of Directors’

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Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	34

As required by the December 2023 guidance, the

premiums for which Sampo Group was unable to obtain

the necessary data related to climate-related perils are

reported as non-eligible. The new methodology leads to

a significantly lower eligibility figure compared to the

previous years.

For an eligible insurance activity to be classified as

Taxonomy-aligned, it must fulfil the technical screening

criteria of

• Substantial contribution to climate change

adaptation:

– Leadership in modelling and pricing of climate risks

– Product design

– Innovative insurance coverage solutions

– Data sharing

– High level of service in post‐disaster situation

• Do No Significant Harm (‘DNSH’) climate change

mitigation criteria: The activity does not include

insurance of the extraction, storage, transport, or

manufacture of fossil fuels or insurance of vehicles,

property, or other assets dedicated to such purposes.

To assess the Taxonomy alignment of their activities,

the Sampo Group companies first screened the

fulfilment of the criteria of substantial contribution on a

line of business level. For the product lines, where

evidence of fulfilling the criteria was discovered, a more

thorough, product level analysis was conducted. Where

possible, the companies further divided the premiums

to the most granular level (e.g. based on a policy,

country, or element) where the technical screening

criteria were fulfilled, and only deemed the share related

to coverage of climate related perils of these specific

premiums as Taxonomy-aligned.

For assessing the DNSH-criteria, the Group companies

used NACE codes to extract contracts that could be

related to extraction, storage, transport, or manufacture

of fossil fuels.

For an economic activity to be considered as

Taxonomy-aligned, a company carrying the activity

must also meet the minimum safeguards, which are due

diligence and remedy procedures implemented to

ensure alignment with the OECD Guidelines for

multinational Enterprises and the UN Guiding Principles

on Business and Human Rights. Sampo Group has

implemented the required policies (e.g. Sampo Group

Code of Conduct) and taken actions to be compliant

with the safeguards. Sampo Group has, for example,

conducted a human rights impact assessment, and

continues to ensure that the adequate human rights due

diligence processes are maintained and constantly

developed. As part of the Taxonomy alignment

assessment, the Group companies have also assessed

their compliance with the minimum safeguards

separately.

Underwriting KPIs

The analysis, which is based on the above-mentioned

interpretations, shows that 2.2 per cent of Sampo

Group’s total non-life GWP were Taxonomy-eligible and

1.0 per cent of total GWP were Taxonomy-aligned in

2023. All the reported eligible and aligned premiums

were in If’s insurance portfolio, as a proportion of If’s

premiums related to fire and other damage to property

insurance fulfilled all the technical screening criteria, and

for those premiums If was able to separate the share

that only pertains to the coverage of climate-related

perils, as required by the European Commission

guidance. If also complies with the minimum

safeguards.

If has screened its procedures based on the UN and

OECD guidelines, and has, for instance, mechanisms in

place to assess whether its corporate clients are

complying with the UN Global Compact principles, uses

norm-based research for investments to identify

sustainability risks, and expects its suppliers to sign If’s

Supplier Code of Conduct. More details on If’s Human

rights due diligence process and its steps can be found

on If’s Sustainability Report 2023.

Sampo Group continues to integrate the EU Taxonomy

into its business strategy and product development

processes while monitoring the market expectations

and customer needs in this area. In the coming years,

Sampo Group aims to increase the share of Taxonomy-

aligned underwriting activities in its insurance portfolio.

Board of Directors’

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Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	35

Taxonomy-eligible and Taxonomy-aligned non-life insurance and re-insurance activities

Sampo Group, 2023


	Substantial contribution to climate change adaptation			DNSH (Do No Significant Harm)
Economic activities	Absolute premiums, 2023	Proportion of premiums, 2023	Proportion of premiums, 2022	Climate change mitigation	Water and marine resources	Circular economy	Pollution	Biodiversity and ecosystems	Minimum safeguards
	(EURm)	%	%	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N
A.1. Non-life insurance and reinsurance underwriting Taxonomy-aligned activities (environmentally sustainable)	81	1.0	N/A	Y	Y	Y	Y	Y	Y
A.1.1 Of which reinsured	—	—	N/A	—	—	—	—	—	—
A.1.2 Of which stemming from reinsurance activity	—	—	N/A	—	—	—	—	—	—
A.1.2.1 Of which reinsured (retrocession)	—	—	N/A	—	—	—	—	—	—
A.2 Non-life insurance and reinsurance underwriting Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)	105	1.2	N/A
B. Non-life insurance and reinsurance underwriting Taxonomy-non-eligible activities	8,266	97.8	N/A
Total (A.1 + A.2 + B)	8,453	100.0	100.0

Board of Directors’

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	36

Sustainable investment

activities

The EU Taxonomy requires insurance companies to

report the proportion of underlying investments that

are Taxonomy-eligible and -aligned. To facilitate this

type of reporting at portfolio level, all holdings need to

be screened and analysed in relation to the economic

activities of the Taxonomy.

Methodology

Sampo Group analysed all underlying investments

according to the Taxonomy reporting requirements,

except for sovereign exposures that are to be excluded

from the Taxonomy analysis. In Sampo Group’s analysis,

exposures to municipalities were not categorised as

sovereign exposure. When analysing Taxonomy

eligibility and alignment, derivatives and investments to

undertakings not falling under the scope for publishing

non-financial information under Directive 2013/34/EU

(i.e. non-NFRD companies), were excluded from the

numerator, in line with the reporting requirements set in

the Taxonomy Disclosures Delegated Act. Reporting

requirements also obligate insurance undertakings to

distinguish the proportion of the investments held in

respect of life insurance contracts where the investment

risk is borne by the policy holders and the proportion of

remaining investments. Sampo Group has no

investments held in respect of life insurance contracts

where the investment risk is borne by the policy

holders.

The EU Taxonomy analysis of Sampo Group’s

investments was performed with the use of data from

an external data provider, ISS ESG (ISS). Sampo Group

changed the data provider for its 2023 reporting. The

change was due to the demerger of Mandatum and

further alignment of service providers across the Group.

Moreover, as Mandatum is no longer part of the Sampo

Group reporting, the EU Taxonomy reporting for 2023

is not comparable to the previous years.

ISS identified companies engaged in economic activities

covered by the Taxonomy and produced all Taxonomy

indicators directly based on the respective investee

companies’ own reporting of Taxonomy eligibility and

alignment. The indicators were provided based on both

underlying companies’ revenue and capital

expenditures. As security specific (e.g., mortgage

bonds) eligibility and alignment data is still scarce, most

of the securities’ eligibility and alignment data was

matched to the issuer’s reported data. Companies’

reported eligibility and alignment data was not modified

in any way by the data provider or by Sampo Group

and, therefore, it includes some discrepancies (e.g.,

breakdown of alignment to environmental objectives

does not correspond to total alignment).

The relevant investment assets were further analysed

according to the Taxonomy reporting requirements by

using both data provided by ISS and data gathered

based on each individual security's issuer. The

investments in undertakings categorised as non-NFRD

companies were identified by using data provided by

ISS. As ISS does not cover all NFRD companies, there is

a possibility that in the assets not covered by the

analysis, there are NFRD companies that have not been

identified. Investments in undertakings from the EU and

non-EU countries have been identified using the

securities' issuers' country code. Similarly, investments

in undertakings categorised as financial and non-

financial have been identified using the securities'

issuers' internal sector information to determine the

main sector the companies operate in (e.g., NACE

codes).

The underlying investments analysed also included

Sampo Group’s real assets (property plant and

equipment as well as investment property), cash and

cash equivalents, investments in associated companies

and intangible assets and they are included in the

denominator of the EU Taxonomy calculations.

For the direct real estate investments, no activities with

EU taxonomy alignment were found. However, direct

real estate investments have been included in the EU

Taxonomy eligibility figures for Sampo Group. All

investments in associated companies were in non-NFRD

companies, and thus, included no EU Taxonomy

eligibility or alignment figures. Cash and cash

equivalents were analysed based on the counterparties

but due to the nature of the instruments (e.g. cash and

money market instruments), there was no EU

Taxonomy eligibility or alignment reported. The

intangible assets of Sampo Group were also not found

to have activities related to the EU Taxonomy.

Investment KPIs

According to the analysis, the turnover and capital

expenditures-based Taxonomy eligibility of Sampo

Group’s covered assets was 4.1 per cent and 5.1 per

cent, respectively and the turnover-based and capital

expenditures-based Taxonomy alignment of Sampo

Group’s covered assets was 0.7 per cent and 0.9 per

cent, respectively, on 31 December 2023. As expected,

the reported numbers are low, as most of the

underlying companies are not subject to mandatory

Taxonomy reporting and reported eligibility and

alignment are low in general.

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	37

Taxonomy-eligible and Taxonomy-aligned investment activities

Sampo Group, 31 December 2023

EURm



The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxonomy-aligned economic activities relative to the value of total assets covered by the KPI, with following weights for investments in undertakings per below:		The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxonomy-aligned economic activities, with following weights for investments in undertakings per below:
Turnover-based:	0.7%	Turnover-based:	129
Capital expenditures-based:	0.9%	Capital expenditures-based:	184
The percentage of assets covered by the KPI relative to total investments of insurance or reinsurance undertakings (total AuM). Excluding investments in sovereign entities.		The monetary value of assets covered by the KPI. Excluding investments in sovereign entities.
Coverage ratio:	96.0%	Coverage:	19,847


Additional, complementary disclosures: breakdown of denominator of the KPI
The percentage of derivatives relative to total assets covered by the KPI.		The value in monetary amounts of derivatives.
0.1%		21
The proportion of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/ EU over total assets covered by the KPI:		Value of exposures to financial and non- financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings:	19.9%	For non-financial undertakings:	3,947
For financial undertakings:	37.1%	For financial undertakings:	7,362
The proportion of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI:		Value of exposures to financial and non- financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings:	9.5%	For non-financial undertakings:	1,877
For financial undertakings:	8.8%	For financial undertakings:	1,750


Additional, complementary disclosures: breakdown of denominator of the KPI
The proportion of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/ EU over total assets covered by the KPI:		Value of exposures to financial and non- financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings:	9.7%	For non-financial undertakings:	1,927
For financial undertakings:	14.9%	For financial undertakings:	2,955
The proportion of exposures to other counterparties and assets over total assets covered by the KPI:		Value of exposures to other counterparties and assets:
18.3%		3,636
The proportion of the insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned economic activities1:		Value of insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy- aligned economic activities1:
100.0%		19,847
The value of all the investments that are funding economic activities that are not Taxonomy-eligible relative to the value of total assets covered by the KPI2:		Value of all the investments that are funding economic activities that are not Taxonomy- eligible2:
95.9%		19,025
The value of all the investments that are funding Taxonomy-eligible economic activities, but not Taxonomy-aligned relative to the value of total assets covered by the KPI3:		Value of all the investments that are funding Taxonomy-eligible economic activities, but not Taxonomy-aligned3:
3.5%		693

1The figure on the table equals the total amount of Sampo Group’s investments covered by the KPI

other than investments held in respect of life insurance contracts where the investment risk is

borne by the policy holders. The turnover-based and capital expenditures-based alignment for

these investments are 0.7% and 0.9%, respectively.

2Turnover-based figure is reported on the table. Capital expenditures-based figure is 94.9%.

3Turnover-based figure is reported on the table. Capital expenditures-based figure is 4.2%.

Board of Directors’

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Auditor’s

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	38


Additional, complementary disclosures: breakdown of numerator of the KPI
The proportion of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI:		Value of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings:		For non-financial undertakings:
Turnover-based:	0.6%	Turnover-based:	124
Capital expenditures-based: %	0.8%	Capital expenditures-based:	166
For financial undertakings:		For financial undertakings:
Turnover-based:	0.0%	Turnover-based:	6
Capital expenditures-based:	0.1%	Capital expenditures-based:	18
The proportion of the insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned:		Value of insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy- aligned:
Turnover-based:	0.7%	Turnover-based:	129
Capital expenditures-based:	0.9%	Capital expenditures-based:	184
The proportion of Taxonomy-aligned exposures to other counterparties and assets in over total assets covered by the KPI:		Value of Taxonomy-aligned exposures to other counterparties and assets over total assets covered by the KPI:
Turnover-based:	—%	Turnover-based:	—
Capital expenditures-based:	—%	Capital expenditures-based:	—


Breakdown of the numerator of the KPI per environmental objective
Taxonomy-aligned activities – provided ‘do-not-significant-harm’(DNSH) and social safeguards positive assessment:
(1) Climate change mitigation	Turnover:	0.5%	Transitional activities:	Turnover: 0,1% ; CapEx: 0,1%
	CapEx:	0.8%	Enabling activities:	Turnover: 0,2% ; CapEx: 0,4%
(2) Climate change adaptation	Turnover:	0.0%	Enabling activities:	Turnover: 0,0% ; CapEx: 0,0%
	CapEx:	0.0%
(3) The sustainable use and protection of water and marine resources	Turnover:	—%	Enabling activities:	Turnover: -% ; CapEx: -%
	CapEx:	—%
(4) The transition to a circular economy	Turnover:	—%	Enabling activities:	Turnover: -% ; CapEx: -%
	CapEx:	—%
(5) Pollution prevention and control	Turnover:	—%	Enabling activities:	Turnover: -% ; CapEx: -%
	CapEx:	—%
(6) The protection and restoration of biodiversity and ecosystems	Turnover:	—%	Enabling activities:	Turnover: -% ; CapEx: -%
	CapEx:	—%

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	39

Supplementary voluntary

information

To supplement the mandatory disclosures, Sampo

Group provides voluntary disclosures with additional

details.

Calculation of Taxonomy eligibility according to the

previous methodology, not taking into consideration

the European Commission Notice (draft) published on

21 December 2023, shows that 94.2 per cent of Sampo

Group’s non-life insurance GWP would have been

Taxonomy eligible in 2023 (92.3 per cent in 2022).

Calculation of taxonomy alignment, not taking into

consideration the European Commission Notice (draft)

published on 21 December 2023, shows that 6.7 per

cent of Sampo Group’s non-life insurance GWP would

have been Taxonomy-aligned in 2023.

Going forward, Sampo Group closely follows the

development of the Taxonomy regulation as the Group

is committed to developing its assessment and

reporting processes accordingly. Following the

publication of the Commission Notice (draft) on 21

December 2023, Sampo Group has acknowledged the

reporting requirements laid down by the Delegated

Regulation (EU) 2022/1214, related to fossil gas and

nuclear energy sectors. Due to late publication date of

the Notice, Sampo Group was not able to gather

reliable data for declaring the information as part of this

report. In addition, the varying reporting practices and

data quality of non-financial companies impacted

Sampo Group’s capabilities of producing high quality

reporting for the financial year 2023. During 2024,

Sampo Group will focus on enhancing its data collection

in accordance with the European Commission guidance.

Board of Directors’

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Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	40

Events after the end of the reporting period

Change in reference point for

disaggregation of IFRS 17

discounting effects in If

On 18 January 2024, Sampo published a press release

regarding technical changes in the calculation

methodology for discounting effects in If. Following an

analysis of the application of IFRS 17 over 2023, the

reference point used in If P&C for disaggregation of

IFRS 17 discounting effects has been changed from the

beginning of year to the beginning of quarter. The

change in reference point impacts on the split of

discounting effects between the ISR and IFIE, but not

profit before taxes. This reflects the Group’s practice of

providing financial results for individual quarters, and a

desire to align more closely with common market

practice and the approach taken by other Group

companies.

SAMPO PLC

Board of Directors

Board of Directors’

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Sampo plc’s Financial Statements

Auditor’s

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	41

Key figures


Financial highlights		2023	2022 (restated)	2022 (published)	2021	2020	2019
Group
Gross written premiums & brokerage income	EURm	8,870	8,375	—	—	—	—
Insurance revenue, net	EURm	7,412	7,168	—	—	—	—
Insurance service result, net	EURm	1,193	1,062	—	—	—	—
Underwriting result	EURm	1,164	1,031	1,314	1,282	967	—
Net financial result	EURm	560	1,056	—	—	—	—
Profit before taxes (P&C operations)	EURm	1,481	1,924	1,863	3,171	380	1,541
Net profit for the equity holders	EURm	1,323	2,107	1,427	2,567	37	1,130
Combined ratio	%	84.6	85.8	82.1	81.4	83.4	—
Solvency ratio1 3	%	182	210	210	185	176	174
Financial leverage	%	25.3	24.4	25.6	23.8	28.6	—
Return on equity	%	15.6	4.2	-1.3	26.8	3.1	12.0
Average number of staff incl. Mandatum		13,935	13,550	13,550	13,274	13,227	9,813
If		2023	2022 (restated)	2022 (published)	2021	2020	2019
Gross written premiums	EURm	5,468	5,432	—	—	—	—
Insurance revenue, net	EURm	4,996	5,024	—	—	—	—
Insurance service result/underwriting result	EURm	842	673	985	891	801	682
Net financial result	EURm	539	888	—	—	—	—
Premiums written before reinsurers' share (IFRS 4)	EURm	—	—	5,432	5,134	4,823	4,675
Premiums earned (IFRS 4)	EURm	—	—	5,002	4,772	4,484	4,388
Profit before taxes	EURm	1,358	1,550	1,217	1,077	901	884
Combined ratio	%	83.1	86.6	80.3	81.3	82.1	84.5
Cost ratio	%	21.2	21.6	21.1	21.4	21.5	21.8
Risk ratio	%	61.9	65.0	59.2	59.9	60.7	62.7
Adjusted risk ratio, current year, %5	%	61.3	62.3	—	—	—	—
Undiscounted adjusted risk ratio, current year, %6	%	64.7	65.2	—	—	—	—
Loss ratio	%	67.6	70.7	64.9	65.5	66.4	68.4
Expense ratio	%	15.6	15.9	15.4	15.8	15.8	16.1
Return on equity	%	31.3	13.2	6.1	37.0	33.3	34.5
Average number of staff		7,858	7,496	7,496	7,223	7,182	6,603

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	42


Topdanmark		2023	2022 (restated)	2022 (published)	2021	2020	2019
Gross written premiums	EURm	1,339	1,308	—	—	—	—
Insurance revenue, net	EURm	1,288	1,255	—	—	—	—
Insurance service result/underwriting result	EURm	194	230	224	227	182	210
Net financial result	EURm	27	-28	—	—	—	—
Premiums written before reinsurers' share, P&C insurance (IFRS 4)	EURm	—	—	1,391	1,383	1,315	1,272
Premiums earned, P&C insurance (IFRS 4)	EURm	—	—	1,326	1,285	1,227	1,178
Profit before taxes	EURm	162	158	220	346	167	238
Combined ratio	%	85.0	81.7	83.1	82.3	85.2	82.1
Loss ratio	%	66.9	64.4	66.8	66.7	69.0	66.2
Expense ratio	%	18.1	17.2	16.3	15.6	16.2	16.0
Average number of staff		2,160	2,381	2,381	2,395	2,428	2,322
Hastings		2023	2022 (restated)	2022 (published)	2021	16.11.-31.12.2020	2019
GWP & brokerage income	EURm	2,063	1,636	—	—	—	—
Insurance revenue, net	EURm	1,128	889	—	—	—	—
Insurance service result, net	EURm	157	159	—	—	—	—
Underwriting result	EURm	128	128	104	164	—	—
Net financial result	EURm	44	27	—	—	—	—
Premiums written before reinsurers' share (IFRS 4)	EURm	—	—	1,313	1,127	103	—
Net premiums written (IFRS 4)	EURm	—	—	727	495	137	—
Premiums earned (IFRS 4)	EURm	—	—	594	499	63	—
Profit before taxes	EURm	129	107	73	127	-16	—
Operating ratio	%	89.8	87.2	89.7	80.3	—	—
Loss ratio	%	63.3	57.2	83.7	62.2	—	—
Return on equity	%	13.2	-8.5	—	—	—	—
Average number of staff		3,200	3,021	3,021	3,005	2,974	—
Holding		2023	2022 (restated)	2022 (published)	2021	2020	2019
Profit before taxes	EURm	-160	146	146	1,331	-826	139
Average number of staff		54	50	50	63	67	63

Board of Directors’

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Sampo plc’s Financial Statements

Auditor’s

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	43


Per share key figures		2023	2022 (restated)	2022 (published)	2021	2020	2019
Earnings per share	EUR	2.62	3.97	2.69	4.63	0.07	2.04
Earnings per share, continuing operations2	EUR	2.12	2.88	—	—	—	—
Earning per share, discontinuing operations	EUR	0.50	1.09	—	—	—	—
Operational result per share	EUR	2.07	—	—	—	—	—
Equity per share	EUR	14.47	18.70	17.44	23.39	20.56	21.44
Net asset value per share	EUR	15.30	20.01	18.74	25.48	19.82	20.71
Market capitalisation4	EURm	19,876	25,112	25,112	24,093	19,199	21,609
Dividend per share	EUR	1.80	2.60	2.60	4.10	1.70	1.50
Dividend payout ratio	%	68.8	65.4	96.7	88.6	78.7	73.5
Effective dividend yield	%	4.5	5.3	5.3	9.3	4.9	3.9
Price/earnings ratio		15.1	12.3	18.1	9.5	16.0	19.1
Number of shares at 31 Dec.	1,000	501,797	514,369	514,369	546,812	555,352	555,352
Average number of shares	1,000	505,939	530,296	530,296	554,317	555,352	555,352
Weighted average number of shares	1,000	505,939	530,296	530,296	554,317	555,352	555,352
A shares		2023	2022	2022	2021	2020	2019
Number of shares at 31 Dec.	1,000	501,597	514,169	514,169	545,612	554,152	554,152
Average number of shares	1,000	505,739	530,096	530,096	553,117	554,152	554,152
Weighted average number of shares	1,000	505,739	530,096	530,096	553,117	554,152	554,152
Weighted average share price	EUR	39.36	44.25	44.25	40.50	32.35	39.15
Adjusted share price, high4	EUR	45.21	49.97	49.97	47.33	42.46	43.38
Adjusted share price, low4	EUR	34.53	35.85	35.85	33.82	21.34	34.45
Adjusted closing price	EUR	39.61	48.82	48.82	44.06	34.57	38.91
Share trading volume during the financial year	1,000	178,801	257,879	257,879	243,763	376,964	250,282
Relative share trading volume	%	35.4	48.6	48.6	44.1	68.0	45.2
B shares		2023	2022	2022	2021	2020	2019
Number of shares at 31 Dec.	1,000	200	200	200	1,200	1,200	1,200
Average number of shares	1,000	200	200	200	1,200	1,200	1,200

1 The Group solvency is calculated according to the consolidation method defined in the Solvency II Directive (2009/138/EC).

2 Earnings per share on continuing operations for comparative period 2022 includes the divested operations i.e. Topdanmark Life operations.

3 The solvency ratio for 2023 is pro forma figure excluding the effect of Saxo Bank on the Group SCR.

4 Share prices have been adjusted to reflect the separation of Mandatum Group in the partial demerger.

5 Adjusted risk ratio illustrates the underlying underwriting performance as it excludes certain volatile effects such as large and severe weather and prior year development on risk ratio.

6Undiscounted adjusted risk ratio excludes the effect from current year discounting on adjusted risk ratio and illustrates the underlying current year underwriting performance.

The number of shares used at the reporting date was 501,796,752 and as the average number during the financial period 505,939,064.

In calculating the key figures the tax corresponding to the result for the accounting period has been taken into account.

In the net asset value per share, the Group valuation difference on the listed subsidiary Topdanmark has been taken into account

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Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	44

Calculation of key figures

Sampo Group applies IFRS 17 Insurance Contracts and

IFRS 9 Financial Instruments from 1 January 2023.

Comparative information (IFRS 17) for the year 2022

has been restated. Due to the change in the accounting

principle, Sampo presents both the restated key figures

and previously published figures for 2022.

As a result of the partial demerger during 2023 and the

sale of Topdanmark Life operations during 2022, the

table excludes any key figures related to the life

operations. In addition, the following key figures are no

longer included: Equity/assets ratio, Group solvency (in

euros), and Earnings per share, incl. items in other

comprehensive income or extraordinary items.

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	BOARD OF DIRECTORS’ REPORT 2023	45

Calculation of key figures

The key figures have been calculated in accordance with the decree issued by the Ministry of Finance and the specifying regulations and instructions of the Financial Supervisory

Authority. The Group solvency is calculated according to the consolidation method defined in the Solvency II Directive (2009/138/EC) and Insurance Companies Act (521/2008).

Additional information on the Group’s alternative performance measures is on the Group’s website www.sampo.com.


Return on equity, %
+	total comprehensive income attributable to owners of the parent	x 100%
+	total equity attributable to owners of the parent	x 100%
	(average of values 1 Jan. and the end of reporting period)

Equity/assets ratio, %
+	total equity attributable to owners of the parent	x 100%
+	balance sheet total	x 100%

Financial leverage
	financial debt	x 100%
	equity + financial debt	x 100%

Underwriting result
+	insurance revenue, net
+	other income (Hastings)
-	claims incurred
-	operating expenses
	underwriting result

Operational result
+	P&C operations’ (incl. Sampo plc) profit after tax
-	non-controlling interest in P&C operations
-	unrealised gains/losses on investments in P&C operations
-	result effect from changes in discount rates in P&C operations
-	non-operational amortisations in P&C operations
-	non-recurring items
	operational result


Combined ratio for P&C insurance, %
+	claims incurred
+	operating expenses	x 100%
+	insurance revenue, net	x 100%
+	other revenue (Hastings)


Risk ratio for P&C insurance, %
+	claims incurred
–	claims settlement expenses	x 100%
	insurance revenue, net	x 100%

Cost ratio for P&C insurance, %
+	operating expenses
+	claims settlement expenses	x 100%
	insurance revenue, net	x 100%

Loss ratio for P&C insurance, %
	claims incurred	x 100%
	insurance revenue, net	x 100%

Expense ratio for P&C insurance, %
	operating expenses	x 100%
	insurance revenue, net	x 100%

Board of Directors’

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	BOARD OF DIRECTORS’ REPORT 2023	46


Operating ratio for Hastings, %
+	claims incurred
+	acquisition costs
+	other operating expenses
+	operational depreciation and amortisation	x 100%
+	insurance revenue, net	x 100%
+	other revenue

Per share key figures

Earnings per share
	profit for the financial period attributable to owners of the parent
	adjusted average number of shares

Operational result per share
	operational result
	adjusted average number of shares

Equity per share
	equity attributable to owners of the parent
	adjusted number of shares at the balance sheet date

Net asset value per share
+	equity attributable to owners of the parent
±	valuation differences on listed Group companies
	adjusted number of shares at balance sheet date

Market capitalisation
	number of shares at the balance sheet date x closing share price at the balance sheet date

Dividend payout ratio
	Dividend per share	x 100%
	Earnings per share	x 100%


Effective dividend yield
	Dividend per share	x 100%
	Adjusted closing price	x 100%

Price/earnings ratio
	Adjusted closing price
	Earnings per share

Relative share trading volume
	Share trading volume during the financial year	x 100%
	Average number of A shares	x 100%

Exchange rates used in reporting


	1–12/2023	1–9/2023	1–6/2023	1–3/2023	1–12/2022
EURSEK
Income statement (average)	11.4745	11.4787	11.3310	11.2050	10.6286
Balance sheet (at end of period)	11.0960	11.5325	11.8055	11.2805	11.1218
DKKSEK
Income statement (average)	1.5406	1.5411	1.5219	1.5052	1.4288
Balance sheet (at end of period)	1.4888	1.5465	1.5852	1.5145	1.4956
NOKSEK
Income statement (average)	1.0048	1.0116	1.0013	1.0194	1.0522
Balance sheet (at end of period)	0.9871	1.0248	1.0087	0.9900	1.0578
EURDKK
Income statement (average)	7.4510	7.4486	7.4464	7.4428	7.4396
Balance sheet (at end of period)	7.4529	7.4571	7.4474	7.4485	7.4365
EURGBP
Income statement (average)	0.8697	0.8707	0.8764	0.8831	0.8527
Balance sheet (at end of period)	0.8691	0.8646	0.8583	0.8792	0.8869

Board of Directors’

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Auditor’s

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	BOARD OF DIRECTORS’ REPORT 2023	47

Group’s IFRS Financial Statements


Statement of profit and other comprehensive income ..........................................	49
Consolidated balance sheet .................................	50
Statement of changes in equity ..........................	51
Statement of cash flows ........................................	52

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	FINANCIAL STATEMENTS 2023	48

Statement of profit and other comprehensive income


EURm	Note	1-12/2023	1-12/2022
Insurance revenue		8,417	8,062
Insurance service expenses		-7,076	-6,759
Reinsurance result		-148	-242
Insurance service result	1	1,193	1,062
Net investment income	2	1,006	320
Net finance income or expense from insurance contracts	3	-446	736
Insurance finance income or expense, gross		-529	827
Insurance finance income or expense, reinsurance		83	-90
Net financial result		560	1,056
Other income	4	277	350
Other expenses	5	-457	-436
Finance expenses	7	-93	-98
Share of associates' profit or loss		1	-10
Profit before taxes		1,481	1,924
Income taxes	17,18	-339	-366
Profit from the continuing operations		1,142	1,559
Discontinued operations, net of tax	32	251	579
Divested operations, net of tax	33	—	102
Net profit		1,393	2,240


EURm	Note	1-12/2023	1-12/2022
Other comprehensive income	8
Items reclassifiable to profit or loss
Exchange differences		-1	-268
Available-for-sale financial assets		—	-1,121
Cash flow hedges		-1	0
Taxes		—	209
Total items reclassifiable to profit or loss, net of tax		-3	-1,180
Items not reclassifiable to profit or loss
Actuarial gains and losses from defined pension plans		-6	32
Taxes		1	-7
Total items not reclassifiable to profit or loss, net of tax		-5	26
Total other comprehensive income for the continuing operations, net of tax		-8	-1,154
Other comprehensive income for the discontinued operations, net of tax		—	-484
Other comprehensive income total, net of tax		-8	-1,639
Total comprehensive income		1,386	601
Profit attributable to
Owners of the parent		1,323	2,107
Non-controlling interests		70	133
Total comprehensive income attributable to
Owners of the parent		1,316	468
Non-controlling interests		70	133
Earnings per share (EPS), EUR		2.62	3.97
Earnings per share, continuing operations, EUR		2.12	2.88

Sampo Group applies IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments from 1 January

2023. Comparative information on IFRS 17 for the year 2022 is restated. For more information on

the implementation, please see accounting principles section IFRS 17 and IFRS 9 transition impacts.

Mandatum segment has been presented in the table on a single line as a discontinued operations.

For further information, please see note 32.

Earnings per share on continuing operations for comparative period 2022 includes the divested

operations, i.e. Topdanmark Life operations.

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	FINANCIAL STATEMENTS 2023	49

Consolidated balance sheet


EURm	Note	12/2023	12/2022	1 Jan 2022
Assets
Property, plant and equipment	10	318	355	373
Investment property	12	0	166	236
Intangible assets	11	3,637	3,494	3,660
Investments in associates	13	12	16	475
Financial assets	14,15,16	15,757	19,565	19,862
Financial assets related to unit-linked contracts		—	9,930	10,546
Deferred income tax	17	3	11	53
Insurance contract assets		—	6	41
Reinsurance contract assets	21	2,282	1,821	2,008
Other assets	19	800	775	712
Cash and cash equivalents		1,415	3,073	4,690
Non-current assets held for sale*	33	—	—	16,029
Total assets		24,225	39,212	58,684


EURm	Note	12/2023	12/2022	1 Jan 2022
Liabilities
Insurance contract liabilities	20,21,22 ,23	11,716	16,210	18,266
Investment contract liabilities		—	7,103	7,239
Subordinated debts	24	1,645	1,983	2,016
Other financial liabilities	24	1,269	1,457	2,315
Deferred income tax	17	567	666	851
Other liabilities	25	1,342	1,617	1,532
Liabilities related to non-current assets held for sale*	33	—	—	13,010
Total liabilities		16,538	29,035	45,228

Equity	27
Share capital		98	98	98
Reserves		1,530	1,530	1,530
Retained earnings		6,378	8,482	9,945
Other components of equity		-743	-492	1,231
Equity attributable to owners of the parent		7,263	9,618	12,805
Non-controlling interests		424	560	651
Total equity		7,687	10,178	13,456

Total equity and liabilities		24,225	39,212	58,684

Sampo Group applies IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments from 1 January

2023. Comparative information (IFRS 17) for the year 2022 has been restated. For more

information on the implementation, please see accounting principles section IFRS 17 and IFRS 9

transition impacts.

Mandatum is included in the IFRS 17 opening balance sheet on 1 January 2022, and in the

comparative period 2022. For further information, please see note 32.

*Topdanmark Life was classified as non-current assets held for sale on 1 January 2022 and the sale

was completed on 1 December 2022. Topdanmark Life is accounted for under IFRS 17 in the

opening balance 1 January 2022. Please see note 33 for further information.

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	FINANCIAL STATEMENTS 2023	50

Statement of changes in equity


EURm	Share capital	Legal reserve	Invested unres- tricted equity	Retained earnings1	Transla- tion of foreign operations2	Available- for-sale financial assets3	Cash flow hedges	Total	Non- controlling interest	Total

Equity at 31 December 2021 (IFRS 4)	98	4	1,527	9,952	-415	1,622	—	12,788	676	13,464
Impact of IFRS 17 transition 1 January 2022	—	—	—	-7	—	23	—	16	-25	-9
Restated equity at 1 January 2022 (IFRS 17)	98	4	1,527	9,945	-415	1,646	—	12,805	651	13,456

Changes in equity
Acquired non-controlling interests	—	—	—	-6	—	—	—	-6	-2	-8
Dividends4	—	—	—	-2,186	—	—	—	-2,186	-207	-2,393
Acquisition of own shares	—	—	—	-1,444	—	—	—	-1,444	—	-1,444
Changes in associate share holdings	—	—	—	-10	—	—	—	-10	—	-10
Other changes in equity	—	—	—	51	-58	-1	—	-9	-15	-24
Profit for the reporting period	—	—	—	2,107	—	—	—	2,107	133	2,240
Other comprehensive income for the period	—	—	—	26	-268	-1,396	—	-1,639	—	-1,639
Total comprehensive income	—	—	—	2,133	-268	-1,396	—	468	133	601
Equity at 31 December 2022	98	4	1,527	8,482	-741	248	—	9,618	560	10,178
Equity at 31 December 2022 (IFRS 17, restated)	98	4	1,527	8,482	-741	248	0	9,618	560	10,178
Impact of IFRS 9 transition 1 January 2023	—	—	—	248	—	-248	—	—	—	—
Restated equity at 1 January 2023	98	4	1,527	8,730	-741	—	0	9,618	560	10,178
Changes in equity
Acquired non-controlling interests	—	—	—	-11	—	—	—	-11	-3	-14
Dividends4	—	—	—	-1,321	—	—	—	-1,321	-187	-1,508
Transferred assets at fair value in the demerger	—	—	—	-1,835	—	—	—	-1,835	—	-1,835
Acquisition of own shares	—	—	—	-555	—	—	—	-555	—	-555
Other changes in equity	—	—	—	51	—	—	—	51	-15	36
Profit for the reporting period	—	—	—	1,323	—	—	—	1,323	70	1,393
Other comprehensive income for the period	—	—	—	-5	-1	—	-1	-8	—	-8
Total comprehensive income	—	—	—	1,318	-1	—	-1	1,316	70	1,386
Equity at 31 December 2023	98	4	1,527	6,378	-742	—	-1	7,263	424	7,687

1 IAS 19 Pension benefits had a net effect of EUR -5 million (26) on retained earnings.

2 In the comparison year, the translation differences of the other comprehensive income include associate Nordax’s share of exchange difference EUR 8 million.

3 In accordance with IAS 39, the comparison year includes EUR -1,300 million recognised in equity and EUR -96 million was transferred to profit or loss from available-for-sale financial assets.

4 Dividend per share EUR 2.60 (4.10)

Sampo plc has cancelled 5,401,743 acquired own shares on 30 March 2023 and 9,381,017 shares on 10 August 2023.

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	FINANCIAL STATEMENTS 2023	51

Statement of cash flows


EURm	1–12/2023	1–12/2022

Operating activities
Profit before tax	1,765	2,744
Adjustments
Depreciation and amortisation	158	170
Unrealised gains and losses arising from valuation	-559	1,119
Realised gains and losses on investments	-280	217
Change in liabilities for insurance and investment contracts	1,146	-14,380
Other adjustments*	-537	-2,193
Adjustments total	-72	-15,068

Change (+/-) in assets of operating activities
Investments**	-86	10,384
Other assets	-208	2,127
Total	-294	12,511

Change (+/-) in liabilities of operating activities
Financial liabilities	176	35
Other liabilities	-196	291
Paid taxes	-277	-290
Paid interest	-132	-190
Total	-429	-155

Net cash from (or used in) operating activities	970	33

Investing activities
Investments in subsidiary shares	-247	-7
Divestments in subsidiary shares	20	519
Divestments in associate shares	—	2,291
Dividends received from associates	—	160
Net investment in equipment and intangible assets	5	8
Net cash from (or used in) investing activities	-223	2,970


EURm	1–12/2023	1–12/2022

Financing activities
Dividends paid	-1,321	-2,186
Dividends paid to non-controlling interests	-187	-207
Acquisition of non-controlling interests	-14	-9
Acquisition of own shares	-555	-1,444
Issue of debt securities	142	62
Repayments of debt securities in issue	-473	-920
Net cash used in (or from) financing activities	-2,407	-4,704

Total cash flows	-1,660	-1,701

Cash and cash equivalents at the beginning of reporting period	3,073	4,819
Effects of exchange rate changes	3	-44
Cash and cash equivalents at the end of reporting period	1,415	3,073
Net change in cash and cash equivalents	-1,660	-1,701


Additional information to the cash flow statement	1–12/2023	1–12/2022
Interest income received	751	375
Dividend income received (excl. profit sharing from funds)	92	273
Total out-going cashflows from leases	-37	-21

* Other adjustments in the comparison year relate mainly to the sale of Nordea shares.

** Investments include investment property and financial assets.

Statement of cash flows includes continuing and discontinued operations. Profit before tax for

2023 is the Group’s profit before taxes together with the discontinued operations’ profit before

taxes. In the comparison year, the profit before tax includes the divested operations.

The presentation of line items in the comparison year have changed due to the transition to IFRS 17.

The items of the statement of cash flows cannot be directly concluded from the balance sheets due

to e.g. exchange rate differences, and acquisitions and disposals of subsidiaries during the period.

Cash and cash equivalents include cash at bank and in hand EUR 1,081 million (2,907) and short-

term deposits (max 3 months) EUR 334 million (166).

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	FINANCIAL STATEMENTS 2023	52

Group’s notes to the financial statements


Summary of material accounting principles .	54
Segment information ..............................................	72
Result by segment for twelve months ended 31 December 2023 .....................................	73
Result by segment for twelve months ended 31 December 2022 .....................................	74
Balance sheet by segment at 31 December 2023 ...............................................................................	75
Balance sheet by segment at 31 December 2022 ...............................................................................	76
Geographical information .....................................	77
Other notes .................................................................	78
1 Insurance service result .......................................	78
2 Net investment income .......................................	79
3 Net finance income or expense from insurance contracts ..................................................	80
4 Other income ..........................................................	80
5 Other expenses ......................................................	80
6 Auditor's fees ..........................................................	81
7 Finance expenses ..................................................	81
8 Components of other comprehensive income ...........................................................................	82
9 Earnings per share ................................................	82
10 Property, plant, equipment .............................	83
11 Intangible assets ....................................................	84
12 Investment property ...........................................	86
13 Investments in associates and joint ventures ........................................................................	87


14 Financial assets ....................................................	88
15 Determination and hierarchy of fair values	91
16 Movements in level 3 financial instruments measured at fair value ...........................................	96
17 Deferred tax assets and liabilities ................	99
18 Taxes .......................................................................	103
19 Other assets ..........................................................	103
20 Insurance contract liabilities .........................	104
21 Reconciliation of insurance contract liabilities .......................................................................	105
22 Assets for insurance acquisition cash flows ..............................................................................	114
23 Non-life claims development .........................	115
24 Financial liabilities ..............................................	124
25 Other liabilities ....................................................	127
26 Employee benefits .............................................	128
27 Equity and reserves ...........................................	133
28 Incentive schemes .............................................	134
29 Investments in subsidiaries ...........................	137
30 Material partly-owned subsidiaries .............	138
31 Related party disclosures .................................	139
32 Discontinued operations .................................	139
33 Business operations divested .......................	142
34 Business combinations ....................................	143
35 Contingent liabilities and commitments ....	144
36 Subsequent events after the balance sheet date ...................................................................	146
37 Risk management disclosure .........................	147

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	FINANCIAL STATEMENTS 2023	53

Group’s notes to the financial statements

Summary of material

accounting principles

Sampo plc (business ID 0142213-3) is a Finnish public

company listed in Helsinki Nasdaq. It is domiciled in

Helsinki and the headquarters are at Fabianinkatu 27,

00100 Helsinki, Finland. The consolidated financial

statements of Sampo Group include Sampo plc

together with its subsidiaries and associates as of 31

December 2023. The group subsidiaries have insurance

and financing activities in Finland, Sweden, Norway,

Denmark, the Baltic countries, and the United Kingdom.

A copy of the Group’s financial statements is available

at the internet address www.sampo.com.

Basis of preparation

Sampo Group has prepared the consolidated financial

statements for 2023 in compliance with the

International Financial Reporting Standards (IFRSs). In

preparing the financial statements, Sampo has applied

all the standards and interpretations relating to its

business, adopted by the commission of the EU and

effective on 31 December 2023.

In the financial year of 2023, Sampo adopted two new

standards IFRS 17 Insurance Contracts and IFRS 9

Financial Instruments. The impact of these two

standards on the Group’s financial statements reporting

is described in the section IFRS 17 and IFRS 9 transition.

The annual improvements or other amendments to the

standards, adopted at the beginning of 2023, had no

material impact on the Group’s financial statements

reporting.

In preparing the notes to the consolidated financial

statements, attention has also been paid to the Finnish

accounting and company legislation and applicable

regulatory requirements.

The going concern accounting assumption has been

assessed by the Board and used in the preparation of

the financial statements.

The consolidated financial statements are presented in

euro (EUR), rounded to the nearest million, unless

otherwise stated.

The Board of Directors of Sampo plc accepted the

financial statements for issue on 6 March 2024. In

accordance with Limited Liability Companies Act, the

Annual General Meeting has right to approve or reject

the consolidated financial statements or change the

statements after they have been issued.

Consolidation

Subsidiaries

The consolidated financial statements combine the

financial statements of Sampo plc and all its

subsidiaries. Companies in which the Group has control

are consolidated as subsidiaries. Control exists when the

Group has more than half of the voting power or it has

power over the entity together with exposure to

variable returns from its involvement there and the

ability to use its power to affect the amount of these

returns. Subsidiaries are consolidated from the date on

which control is transferred to the Group and cease to

be consolidated from the date that control ceases.

The acquisition method of accounting is used for the

purchase of subsidiaries. The cost of an acquisition is

allocated to the identifiable assets, liabilities and

contingent liabilities, which are measured at the fair

value of the date of the acquisition. Acquisition-related

costs are recognised through profit or loss. Possible

non-controlling interest of the acquired entity is

measured either at fair value or at proportionate

interest in the acquiree’s net assets. The acquisition-

specific choice affects both the amount of recognised

goodwill and non-controlling interest. The excess of the

aggregate of consideration transferred, non-controlling

interest and possibly previously held equity interest in

the acquiree, over the Group’s share of the fair value of

the identifiable net assets acquired, is recognised as

goodwill.

The accounting policies used throughout the Group for

the purposes of consolidation are consistent with

respect to similar business activities and other events

taking place in similar conditions. All intra-group

transactions and balances are eliminated upon

consolidation.

Non-controlling interests

The technical division of profit for the financial year and

the total comprehensive income to the owners of the

parent and non-controlling interests is presented after

the statement of comprehensive income. The share of

profits is attributed to non-controlling interests even if it

should be negative.

Non-controlling interests are presented in the balance

sheet separately as part of equity.

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	FINANCIAL STATEMENTS 2023	54

Non-controlling interests in an acquiree are measured

either at fair value or as a proportionate share of net

assets of the acquiree. The choice is made for each

acquisition separately. At the end of the financial

reporting period, Sampo’s non-controlling interests

were determined as the proportionate share of net

assets of the acquirees.

Foreign currency translation

The consolidated financial statements are presented in

euro, which is the functional and reporting currency of

the Group and the parent company. Items included in

the financial statements of each of the Group entities

are measured using their functional currency, being the

currency of the primary economic environment in which

the entity operates. Foreign currency transactions are

translated into the appropriate functional currency

using the exchange rates prevailing at the dates of

transactions or the average rate for a month. The

balance sheet items denominated in foreign currencies

are translated into the functional currency at the rate

prevailing at the balance sheet date.

Exchange differences arising from the translation of

transactions and monetary balance sheet items

denominated in foreign currencies into functional

currency are recognised as translation gains and losses

in profit or loss. During comparative period, exchange

differences arising from non-monetary financial assets

classified as available-for-sale financial assets were

recognised directly in the fair value reserve in equity.

The income statements of Group entities whose

functional currency is other than euro are translated

into euro at the average rate for the period, and the

balance sheets at the rates prevailing at the balance

sheet date. The resulting exchange differences are

included in equity and their change in other

comprehensive income. When a subsidiary is divested

entirely or partially, the cumulative exchange

differences are included in the income statement under

sales gains or losses.

Goodwill and fair value adjustments arising from an

acquisition of a foreign entity are treated as if they were

assets and liabilities of the foreign entity. Exchange

differences resulting from the translation of these items

at the exchange rate of the balance sheet date are

included in equity and their change in other

comprehensive income.

The following exchange rates were applied in the

consolidated financial statements:


1 euro (EUR) =	Balance sheet date	Average exchange rate
Swedish krona (SEK)	11.0960	11.4745
Danish krona (DKK)	7.4529	7.4510
Pound sterling (GBP)	0.8691	0.8697

Segment reporting

The Group’s segmentation is based on business areas

whose risks and performance bases as well as

regulatory environment differ from each other. The

control and management of business and management

reporting are organised in accordance with the business

segments. The Group’s business segments are If,

Topdanmark, Hastings, and Holding (including Nordea

in 2022). Mandatum was presented as a segment until it

was reclassified as discontinued operations during the

first quarter of 2023.

Geographical information has been given on income

from external customers and non-current assets. The

reported areas are Finland, Sweden, Norway, Denmark,

United Kingdom, and the Baltic countries.

In the inter-segment and inter-company pricing, for

both domestic and cross border transactions, market-

based prices are applied. The pricing is based on the

Code of Conduct on Transfer Pricing Documentation in

the EU and OECD guidelines.

Inter-segment transactions, assets and liabilities are

eliminated in the consolidated financial statements.

Non-current assets held for sale

and discontinued operations

Non-current assets and the assets and liabilities related

to discontinued operations are classified as held for

sale, if their carrying amount will be recovered

principally through sales transactions rather than from

continuing use. For this to be the case, the sale must be

highly probable, and the asset or disposal group must

be available for immediate sale in its present condition

subject only to terms that are usual and customary for

sales of such assets. In addition, the management must

be committed to a plan to sell, and the sale should be

expected to qualify for recognition as a completed sale

within one year from the date of classification. The

classification, presentation, and measurement

requirements of non-current assets or disposal groups

held for sale also apply to those that are held for

distribution to owners acting in their capacity as

owners.

Assets that meet the criteria to be classified as held for

sale are measured at the lower of carrying amount and

fair value less costs to sell. Immediately before the initial

classification of the asset as held for sale, the carrying

amount of the asset shall be measured in accordance

with applicable IFRSs. If the fair value less costs to sell is

the lower, an entity recognises an impairment loss at

initial reclassification. Gains for subsequent increases in

fair value are recognised through profit or loss. Once

reclassified, any depreciation or recognition of

associates’ share of profit or loss on such assets ceases.

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Sampo plc’s Financial Statements

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Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	55

Income and expense recognition

principles related to insurance

contracts

The introduction of IFRS 17 changed the structure of the

statement of profit or loss to reflect the key sources of

profit. The insurance service result, comprising of

insurance revenue, insurance service expenses, and

reinsurance result, reflects the result relating to

underwriting and servicing insurance policies. The net

financial result reflects the impacts arising from financial

components of insurance contracts.

Insurance revenue

Insurance revenue reflects the compensation that

Sampo receives from the policyholder in return for the

transfer of risk (insurance contract services) on an

earned basis. The insurance revenue recognised in the

reporting period is based on premium receipts and

expected premium receipts allocated linearly over the

underlying terms of the insurance contracts, i.e. based

on the passage of time. The liability for remaining

coverage is reduced with a corresponding amount as

the insurance revenue.

Insurance service expenses

The insurance service expenses comprise of both claims

incurred and operating expenses.

Claims incurred for the reporting period include claims

payments during the period and changes in the liability

for incurred claims. The change in liability for the

incurred claims includes the changes in undiscounted

best estimate, discounted risk adjustment and the

changes in discounting effect due to changes in

underlying best estimate or changes in payment

patterns. The claims incurred also include claims

handling expenses and changes in the loss component.

Operating expenses reported in the insurance service

result relate to administrative expenses arising from the

handling of insurance contracts. Additionally, the

operating expenses include the acquisition cash flows

recognised in profit or loss, where the liability for

remaining coverage changes with a corresponding

amount.

Reinsurance result

Reinsurance result comprises both reinsurance premium

expenses and reinsurer’s share of claims incurred.

Reinsurance premium expenses related to reinsurance

contracts held are recognised similarly to insurance

revenue and reflect the premium payments attributable

to the reporting period for the reinsurance contract

services received. Any commissions received reduce

the reinsurance premium expenses. The reinsurers’

share of claims incurred is reported consistently with

direct insurance expenses, including also changes in the

risk of non-performance.

Insurance finance income or expense

The insurance finance income or expenses included in

the net financial result reflect the impacts arising from

financial components. These include changes in the

liability for incurred claims related to changes in

discount rates and time value of money (unwinding).

Therefore, the effect from changes in interest rates as

well as interest expense is presented in its entirety as

insurance finance income or expenses. The effect of

changes in indexation of annuities is also presented

within insurance finance income or expenses. Amounts

related to reinsurance contracts are presented

separately. The option to present changes in

discounting effect in other comprehensive income is not

applied.

Net investment income

Interest and dividends

Interest income and expenses are recognised in the

income statement using the effective interest rate

method. This method recognises income and expenses

on the instrument evenly in proportion to the amount

outstanding over the period to maturity. Dividends on

equity securities are recognised as revenue when the

right to receive payment is established.

Fees and commissions

The fees and transaction costs of financial instruments

measured at fair value through profit or loss are

recognised in profit or loss when the instrument is

initially recognised.

Revenue from contracts with

customers

Other income consists of income from insurance-related

services provided, that do not involve a transfer of

significant insurance risk, and are therefore accounted

for under IFRS 15 Revenue from contracts with

customers. Such income is primarily attributable to sales

commission and services for administration, claims

settlement, etc. in insurance contracts on behalf of

other parties.

Furthermore, If Group’s subsidiary Viking Assistance

Group AS provides roadside assistance. Income from

these services is recognised when roadside assistance

has been provided.

The subsidiary Hastings has revenue from broker

activities in accordance with IFRS 15 Revenue from

Contracts with Customers. The revenue consists

principally of fees and commissions relating to the

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	FINANCIAL STATEMENTS 2023	56

arrangement of third party underwritten insurance

contracts and ancillary products.

Revenue from insurance brokerage activities is

recognised at the point of sale to the customer and

revenue from other retail services is recognised when

the service has been completed. Revenue arising from

insurance broking activities is measured on an agency

basis, net of cost, at the fair value of the income

receivable after adjusting for any allowance for

expected future cancellation refunds. Hastings may also

provide contracts for the provision of other ad hoc,

point-in-time services to customers. Such income is

recognised when the performance obligation has been

satisfied at the expected value of consideration.

In the consolidated financial statements, the fees and

commissions from external broker activities are

included in Other income or Other expenses.

Financial assets and liabilities

Sampo Group is applying IFRS 9 Financial Instruments

from 1 January 2023. IFRS 9 superseded IAS 39

Financial Instruments: Recognition and Measurement.

Sampo Group applied the temporary exemption

regarding the adoption of IFRS 9 and implemented

IFRS 9 at the same time as IFRS 17 Insurance Contracts.

The IFRS 9 comparative figures 2022 were not restated.

More details on the IFRS 9 transition are included in the

section Transition to IFRS 17 Insurance Contracts and

IFRS 9 Financial Instruments.

Initial recognition and derecognition

Financial assets and liabilities are measured at the initial

recognition at fair value. If the acquired financial assets

and liabilities are not measured at fair value, transaction

costs directly attributable to acquisition or issue are

added or deducted respectively.

Purchases and sales of financial assets at fair value

through profit or loss are recognised and derecognised

on the trade date, which is the date on which the Group

commits to purchase or sell the asset. Loans and other

receivables are recognised when cash is advanced.

Financial assets and liabilities are offset, and the net

amount is presented in the balance sheet only when the

Group has a legally enforceable right to set off the

recognised amounts and it intends to settle on a net

basis, or to realise the asset and settle the liability

simultaneously.

Financial assets are derecognised when the contractual

rights to receive cash flows have expired or the Group

has substantially transferred all the risks and rewards of

ownership. Financial liabilities are derecognised when

the obligation specified in the contract is discharged,

cancelled or expired.

IFRS 9 Classification and measurement

principles (applied 1 January 2023 onwards)

Financial assets are classified as being subsequently

measured either at amortised cost, at fair value through

other comprehensive income (FVOCI) or at fair value

through profit or loss (FVPL). Under IFRS 9, the

majority of Sampo Group’s financial assets are classified

at fair value through profit or loss and only a limited

amount of financial assets is measured at amortised

cost. No financial assets are classified as FVOCI.

The classification of financial assets into these

measurement categories is based on Sampo Group’s

business model for managing the financial assets and

the contractual cash flow characteristics of the financial

assets. Business model reflects how the portfolios of

financial assets are managed to achieve business

objectives and to generate cash flows. The factors

considered in determining the portfolio’s business

model include how the financial assets’ performance is

evaluated and reported to management, how risks are

assessed and managed, past experience of how the

cash flows have been collected, and how compensation

is linked to performance.

Financial assets at fair value through profit

or loss

Financial assets classified as at fair value through profit

or loss include mainly investments in equity instruments

and funds, debt instruments, and other loans.

Equity instruments are classified and measured at fair

value through profit or loss.

Debt instruments, such as bonds and other interest-

bearing securities, are classified as measured at fair

value through profit or loss when the business model

reflects the assets being managed and evaluated on a

fair value basis. The instruments are initially recognised

and subsequently measured at fair value. Transaction

costs that are directly attributable to the issue or

acquisition of the assets are expensed in profit or loss.

Gains and losses arising from changes in fair value, or

realised on disposal, together with related interest

income and dividend, are recognised in the income

statement under net investment income.

Derivative instruments that are not designated as

hedges and do not meet the requirements for hedge

accounting are classified as financial assets at fair value

through profit or loss. Derivatives are initially

recognised at fair value. Derivative instruments are

carried as assets when the fair value is positive and as

liabilities when the fair value is negative. Derivative

instruments are recognised at fair value, and gains and

losses arising from changes in fair value, together with

realised gains and losses, are recognised in the income

statement under net investment income.

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	FINANCIAL STATEMENTS 2023	57

Financial assets measured at amortised cost

A financial asset is measured at amortised cost only if

the objective of the business model is to hold a financial

asset in order to collect contractual cash flows, and the

contractual cash flows of the financial asset meet the

SPPI criteria (solely payments of principal and interest -

criteria, SPPI) i.e. it is consistent with basic lending

arrangement. SPPI criteria is met when the financial

instrument’s contractual cash flows are solely payments

of principal and interest on the principal amount

outstanding. Financial assets measured at amortised

cost comprise mainly debt instruments, loans, and

receivables.

Financial assets measured at amortised costs are

initially recognised at their fair value, including

transaction costs directly attributable to the acquisition

of the asset. Loans and other receivables are

subsequently measured at amortised cost using the

effective interest rate method.

Interest revenue is calculated using the effective

interest rate method. Under IFRS 9 financial assets

subsequently measured at amortised cost are subject to

loss allowance, that is, expected credit losses (ECL)

requirements.

Financial liabilities

Financial liabilities, including subordinated debt

securities, debt securities in issue, and other financial

liabilities, are subsequently measured at amortised cost

using the effective interest rate method. Interest

expenses and gains or losses on derecognition are

recognised in the income statement.

Derivative financial liabilities are measured at fair value

through profit or loss.

If debt securities issued are redeemed before maturity,

they are derecognised and the difference between the

carrying amount and the consideration paid at

redemption is recognised in profit or loss.

IAS 39 Classification and measurement

principles (comparative period 2022)

During the comparative year 2022, based on the

measurement practice, financial assets and liabilities

were classified in the following categories upon the

initial recognition: financial assets at fair value through

profit or loss, loans and receivables, available-for-sale

financial assets, financial liabilities at fair value through

profit or loss, and other liabilities. Accounting principles

related to classification and measurement principles

under IAS 39 are presented in full in the Financial

Statements 2022.

Fair value

The fair value of financial instruments is determined

primarily by using quoted prices in active markets.

Instruments are measured either at a bid price or at the

last trade price if there is an auction policy in the stock

market of the price source. An exception are the

syndicated loans which are measured at a mid-price

because of the lower liquidity. The financial derivatives

are also measured at the last trade price. If the financial

instrument has a counter-item that will offset its market

risk, the same price source is used in assets and

liabilities to that extent. If a published price quotation

does not exist for a financial instrument in its entirety,

but active markets exist for its component parts, the fair

value is determined based on the relevant market prices

of the component parts.

Fair values of financial assets are based on either

published price quotations or valuation techniques

based on market observable inputs, where available. If

these are not available, the fair value is established by

using generally accepted valuation techniques including

recent arm’s length market transactions between

knowledgeable, willing parties, reference to the current

fair value of another instrument that is substantially the

same, discounted cash flow analysis, and option pricing

models. For a limited amount of assets, the value needs

to be determined using these other techniques.

The carrying amount of cash and cash equivalents as

well as settlement receivables included in other assets is

used as an approximation of fair value.

The financial instruments measured at fair value have

been classified into three hierarchy levels in the notes,

depending on, e.g. if the market for the instrument is

active, or if the inputs used in the valuation technique

are observable.

On level 1, the measurement of the instrument is based

on quoted prices in active markets for identical assets

or liabilities.

On level 2, inputs for the measurement of the

instrument include also other than quoted prices

observable for the asset or liability, either directly or

indirectly by using valuation techniques.

On level 3, the measurement is based on other inputs

rather than observable market data. The majority of

Sampo Group’s level 3 assets are private equity and

alternative funds.

For private equity funds, the valuation of the underlying

investments is conducted by the fund manager who has

all the relevant information required in the valuation

process. The valuation is usually updated quarterly

based on the value of the underlying assets and the

amount of debt in the fund. There are several valuation

methods, which can be based on, for example, the

acquisition value of the investments, the value of

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	FINANCIAL STATEMENTS 2023	58

publicly traded peer companies, the multiple-based

valuation, or the cashflows of the underlying

investments. Most private equity funds follow the

International Private Equity and Venture Capital (IPEV)

guidelines which give detailed instructions on the

valuation of private equity funds.

For alternative funds, the valuation is also conducted by

the fund managers. Alternative funds often have

complicated structures, and the valuation is dependent

on the nature of the underlying investments. There are

many different valuation methods that can be used, for

example, the method based on the cashflows of the

underlying investments. The operations and valuation of

alternative funds are regulated, for example by the

Alternative Investment Fund Managers Directive

(AIFMD), which determines the principles and

documentation requirements of the valuation process.

Impairment of financial assets

Sampo assesses at the end of each reporting period

whether there is any objective evidence that a financial

asset, other than those at fair value through profit or

loss, may be impaired. A financial asset is impaired and

impairment losses are recognised based on the

estimated future cash flows of the financial asset if

there is objective evidence of impairment as a result of

one or more loss events that occurred after the initial

recognition of the asset and if that event has an impact

that can be reliably estimated.

There is objective evidence of impairment, if, for

example, an issuer or debtor encounters significant

financial difficulties that will lead to insolvency and to

estimation that the customer will probably not be able

to meet the obligations to the Group. When there is

objective evidence of impairment of a financial asset

carried at amortised cost, the amount of the loss is

measured as the difference between the receivable’s

carrying amount and the present value of estimated

future cash flows discounted at the receivable’s original

effective interest rate. The difference is recognised as

an impairment loss in profit or loss. In Sampo Group the

impairment is assessed individually for each asset.

Financial assets measured at amortised cost

IFRS 9 introduced a forward-looking ECL model, which

in Sampo Group is mainly applicable to financial assets

measured at amortised cost. Impairment requirements

do not apply to equity instruments or other financial

instruments measured at FVPL. Expected credit losses

reflect past events, i.e. historical loss experience, current

conditions, and forecasts of future economic conditions.

IFRS 9 introduces a general approach for impairment in

which a loss allowance is calculated either for 12-month

expected credit losses or lifetime expected credit

losses. A three staged model is used to determine the

ECL at each reporting date. In stage 1, the credit risk has

not increased significantly. Loss allowance is measured

at an amount equal to 12-month expected credit losses.

In stages 2 and 3, the credit risk has increased

significantly since initial recognition and the loss

allowance is measured at an amount equal to the

lifetime expected credit losses. In stage 3, the financial

asset is assessed to be credit-impaired (at default) and

the interest is calculated on the credit-impaired amount

instead of gross carrying amount.

In Sampo Group, the general approach is based on

three components, namely probability of default (PD),

loss given default (LGD), and exposure at default

(EAD).

Board of Directors’

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	FINANCIAL STATEMENTS 2023	59

Derivative financial instruments

and hedge accounting

Derivative financial instruments are classified as those

held for trading and those held for hedging, including

interest rate derivatives, credit risk derivatives, foreign

exchange derivatives, equity derivatives and

commodity derivatives. Derivative instruments are

measured initially at fair value. All derivatives are carried

as assets when fair value is positive and as liabilities

when fair value is negative.

Derivatives held for trading

Derivative instruments that are not designated as

hedges are treated as held for trading. They are

measured at fair value and the change in fair value,

together with realised gains and losses and interest

income and expenses, is recognised in profit or loss.

Hedge accounting

Sampo Group may hedge its operations against interest

rate risks, currency risks, and price risks through fair

value hedging and cash flow hedging. Cash flow

hedging is used as a protection against the variability of

the future cash flows. During the financial year, cash

flow hedging has been applied in Hastings.

Hedge accounting applies to hedges that are effective

in relation to the hedged risk and meet the hedge

accounting requirements of IFRS 9. The hedging

relationship between the hedging instrument and the

hedged item, as well as the risk management objective

and strategy for undertaking the hedge, are

documented at the inception of the hedge.

Cash flow hedging

Cash flow hedging is used to hedge the interest cash

flows of individual floating rate debt securities or other

floating rate assets or liabilities. The hedging

instruments used include currency forward contracts.

Derivative instruments which are designated as hedges

and are effective as such, are measured at fair value.

The effective part of the change in fair value is

recognised in other comprehensive income.

The cumulative change in fair value is transferred from

equity and recognised in profit or loss in the same

period that the hedged cash flows affect profit or loss.

When a hedging instrument expires, is sold, terminated,

or the hedge no longer meets the criteria for hedge

accounting, the cumulative change in fair value remains

in equity until the hedged cash flows affect profit or

loss.

Leases

Group as lessee

All lease contracts are primarily recognised in the

balance sheet in accordance with IFRS 16 Leases. The

only optional exemptions include certain short-term

contracts with a duration under 12 months or low-value

contracts for which the lease payments can be

recognised as an expense on a straight-line basis over

the lease term.

Right-of-use assets related to lease contracts (right to

use an underlying asset) are recognised in the asset

side as part of Property, plant and equipment and the

corresponding lease liabilities in the liability side as part

of Other liabilities. A right-of-use asset is recognised at

the commencement date of the lease and measured at

cost that includes the amount of the initial

measurement of the liability and potential prepaid rents

to the lessor. Right-of-use assets are amortised on a

straight-line basis over the lease period. Lease liability is

also recognised at the commencement date and

measured at the present value of the lease payments.

Depreciations on right-of-use assets and interests on

the lease liabilities are recognised in the income

statement.

Intangible assets

Goodwill

Goodwill represents the excess of the cost of an

acquisition (made after 1 January 2004) over the fair

value of the Group’s share of the net identifiable assets,

liabilities, and contingent liabilities of the acquired entity

at the date of acquisition. Goodwill on acquisitions

before 1 January 2004 is accounted for in accordance

with the previous accounting standards and the

carrying amount is used as the deemed cost in

accordance with the IFRS.

Goodwill is measured at historical cost less accumulated

impairment losses. Goodwill is not amortised. Instead, it

is tested at least annually for impairment.

Other intangible assets

IT software and other intangible assets, whether

procured externally or internally generated, are

recognised in the balance sheet as intangible assets

with finite useful lives if it is probable that the expected

future economic benefits that are attributable to the

assets will flow to the Group and the cost of the assets

can be measured reliably. The cost of internally

generated intangible assets is determined as the sum of

all costs directly attributable to the assets. Research

costs are recognised as expenses in profit or loss as

they are incurred. Costs arising from the development

of new IT software or from significant improvement of

existing software are recognised only to the extent they

meet the above-mentioned requirements for being

recognised as assets in the balance sheet.

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	FINANCIAL STATEMENTS 2023	60

Intangible assets with finite useful lives are measured at

historical cost less accumulated amortisation and

impairment losses. Intangible assets are amortised on a

straight-line basis over the estimated useful life of the

asset. The estimated useful lives by asset class are as

follows:

• IT software 3-10 years

• Other intangible assets 3-10 years

Intangible assets with an indefinite useful life, such as

brands and trademarks acquired in business

combinations, are not amortised. Instead, they are

tested at least annually for impairment.

Property, plant and equipment

Property, plant and equipment comprise properties

occupied for Sampo’s own activities, office equipment,

fixtures and fittings, and furniture.

Property, plant and equipment are measured at

historical cost less accumulated depreciation and

impairment losses.

Improvement costs are added to the carrying amount

of a property when it is probable that the future

economic benefits that are attributable to the asset will

flow to the entity. Costs for repairs and maintenance are

recognised as expenses in the period in which they

were incurred.

Items of property, plant and equipment are depreciated

on a straight-line basis over their estimated useful life. In

most cases, the residual value is estimated at zero. Land

is not depreciated. Estimates of useful life are reviewed

at financial year-ends and the useful life is adjusted if

the estimates change significantly. The estimated useful

lives by asset class are as follows:

• Buildings 20-50 years

• Components of buildings 15-20 years

• Property and leasehold improvements 4-10 years

• IT equipment and motor vehicles 2-5 years

• Other equipment 3-15 years

Depreciation of property, plant or equipment will be

discontinued if the asset in question is classified as held

for sale in accordance with IFRS 5 Non-current Assets

Held for Sale and Discontinued Operations.

Impairment of intangible assets

and property, plant and equipment

At each reporting date, the Group assesses whether

there is any indication that an intangible asset or an

item of property, plant or equipment may be impaired.

If any such indication exists, the Group will estimate the

recoverable amount of the asset. In addition, goodwill,

intangible assets not yet available for use, and

intangible assets with an indefinite useful life will be

tested for impairment annually, independent of any

indication of impairment. For impairment testing the

goodwill is allocated to the cash-generating units of the

Group from the date of acquisition. In the test, the

carrying amount of the cash-generating unit, including

the goodwill, is compared with its recoverable amount.

The recoverable amount is the higher of an asset’s fair

value less costs to sell and its value in use. The value in

use is calculated by estimating future net cash flows

expected to be derived from an asset or a cash-

generating unit, and by discounting them to their

present value using a pre-tax discount rate. If the

carrying amount of an asset is higher than its

recoverable amount, an impairment loss is recognised in

profit or loss. In conjunction with this, the impaired

asset’s useful life will be re-determined.

The impairment loss is reversed if there has been a

change in circumstances and the recoverable amount

has changed after the recognition of the impairment

loss, but no more than to the carrying amount that it

would have been without recognition of the impairment

loss. Impairment losses recognised for goodwill are not

reversed.

Insurance contracts

Sampo Group is applying IFRS 17 Insurance Contracts

from 1 January 2023 and comparative figures are

restated for 2022. Sampo Group’s operations are

focused on the P&C business and Sampo primarily uses

the premium allocation approach (PAA) under IFRS 17.

More details on IFRS 17 transition are included in the

section Transition to IFRS 17 Insurance Contracts and

IFRS 9 Financial Instruments.

The risks involved in insurance contracts are widely

elaborated in the Group’s note 37.

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P&C operations

Scope

In the Group’s P&C insurance contracts, insurance risk is

considered significant. Insurance contracts issued by

third party underwriters (panel underwriters), which do

not transfer any insurance risk to the Group companies,

are not in the scope of IFRS 17 but instead accounted

for under IFRS 15 Revenue from Contracts with

Customers.

Insurance contracts containing one or more

components within the scope of different accounting

standards are accounted for separately. Sampo

evaluates the insurance contracts to identify

components from the contracts. For example, an

insurance contract may include an investment

component or a component for services other than

insurance contract services (or both).

Level of aggregation

Insurance contracts are aggregated into portfolios of

insurance contracts. The portfolios comprise contracts

with similar risks that are managed together. These

portfolios are further divided into annual cohorts, i.e.

contracts not issued more than one year apart.

In Sampo Group's P&C operations, portfolios are

determined based on a segmentation of business, or a

combination of line of business (as defined by the

management), business area and country. Portfolios are

determined separately for each legal entity or based on

product lines.

Sampo Group has identified some onerous contracts,

but all in all their amount is insignificant.

The carrying amount of the portfolios of insurance and

reinsurance contracts determines their presentation as

assets or liabilities in the balance sheet.

Contract boundary

The initial measurement of a group of insurance

contracts includes all future cash flows arising within

the contract boundary. In determining which cash flows

fall within the contract boundary, substantive rights and

obligations arising from the terms of the contract,

together with applicable laws and regulations, are

considered.

In Sampo Group’s P&C operations, the majority of

contracts have a one-year contract boundary, typically

until the next renewal date, i.e. contract has one-year

coverage period during which there are substantive

rights and obligations.

Measurement

IFRS 17 introduces a general measurement model

(GMM) applicable to all insurance contracts to measure

insurance contract liabilities. Under the general

measurement model insurance contracts are measured

based on future cash flows, adjusted to reflect the time

value of money, including a risk adjustment, and a

contractual service margin (CSM).

When certain eligibility criteria are met, insurers may

apply a simplified approach, the premium allocation

approach (PAA), for the measurement of insurance

contracts. PAA is eligible for insurance contracts with a

coverage period of one year or less. This approach is

also available for contracts where the PAA would not

materially differ from the results of the GMM. In Sampo

Group's P&C operations, PAA is applied to all insurance

contracts, because the coverage period for most of the

insurance contracts is one year or less, and for longer

insurance contracts the qualifying eligibility criteria are

fulfilled.

The measurement of insurance liabilities consists of

liability for remaining coverage (LRC) and acquisition

cash flow asset, and liability for incurred claims (LIC),

the latter including both reported but not settled claims

as well as incurred but not reported claims (IBNR).

On initial recognition of P&C operations’ groups of

insurance contracts, the carrying amount of LRC is

measured as premiums initially received less insurance

acquisition cash flows. In case of onerous contracts, a

loss component is recognised.

The acquisition cash flows reducing the carrying

amount of LRC mainly include staff costs related to

sales personnel and commissions, as well as certain

costs related to selling policies through price

comparison websites. Any overhead costs are expensed

immediately. Sampo Group's P&C operations in the

private business area have elected to recognise

acquisition cash flows as an expense at the date when

they are incurred. For other business areas, the

acquisition costs are deferred over the coverage period

of the contracts, generally one year, or longer in case of

expected renewals.

Any acquisition cash flows paid, relating to a group of

insurance contracts not yet recognised, are presented

as a separate acquisition cash flow asset and included in

the related portfolio’s total carrying amount.

The liability for remaining coverage relates to the

obligation to investigate and pay valid claims that have

not yet occurred. At subsequent reporting periods, the

carrying amount of LRC is increased by premiums

received during the period and decreased by the

amount recognised as insurance revenue for services

provided in the period, which for most products is

based on the passage of time (straight line basis).

Consequently, any premium receipts pertaining to

insurance services to be provided after the closing date,

remain in this liability. The carrying amount is also

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	FINANCIAL STATEMENTS 2023	62

increased for any premiums received in subsequent

periods less additional insurance acquisition cash flows

paid. The carrying amount of LRC is not discounted or

adjusted with the effect of financial risk as the time

between providing services and the related premium

due date generally is no more than a year.

For groups of onerous contracts, a loss component is

part of the liability for remaining coverage. The loss

component is calculated as the difference between the

liability measured with the general measurement model

and with the premium allocation approach.

The liability for incurred claims (LIC) is intended to

cover the future payments of all claims incurred,

including claims not yet reported to the company and

all claims handling expenses. Sampo Group measures

the liability for incurred claims (LIC) for the group of

insurance contracts at the amount of estimated

fulfilment cash flows relating to incurred claims.

Fulfilment cash flows consist of three components,

namely expected cash flows, discounting and risk

adjustment. The estimated future cash flows (best

estimate) are calculated with the aid of statistical

methods or through individual assessments of individual

claims. Both the best estimate and risk adjustment are

discounted to present value using standard actuarial

methods and applying market-based yield curves. The

curves are constructed based on a risk-free rate and an

illiquidity premium for each of the main currencies.

Discounting

Sampo Group's P&C operations have determined the

discount rates based on a bottom-up approach. The

interest rate curve includes a risk-free rate (excluding

credit risk adjustment) and an illiquidity premium for

each currency. The illiquidity premium is mainly derived

based on a portfolio of high-rated bonds for the liquid

part of the interest rate curve. Beyond this, the curve

converges to the ultimate forward rate, consistent with

the EIOPA curves. Discount rates are constructed

separately for the main currencies applied in Sampo

Group’s subsidiaries.

The discounting effect of current year liabilities for

incurred claims and changes in the cash flows are

recognised in the insurance service result. Unwinding of

interest rates, effect of changes in interest rates and

other financial assumptions are presented as insurance

finance income or expense in profit or loss. Sampo

Group has elected not to apply the OCI option allowed

under IFRS 17.

Risk adjustment

IFRS 17 introduces an explicit risk adjustment included

in the measurement of insurance liabilities. The risk

adjustment reflects the cost of uncertainty associated

with the amount and timing of cash flows arising from

non-financial risk and the degree of risk aversion. The

risks typically considered in P&C operations, when

assessing risk adjustment, are reserve risk, longevity

risk, inflation risk, and premium risk.

In Sampo Group, the risk adjustment is derived through

a confidence level technique whereby management

determines the appropriate quantile. The risk

adjustment is calculated at the subsidiary level and

aggregated into the consolidated Sampo Group level

risk adjustment, without any diversification effects

assumed. Under the premium allocation approach, the

risk adjustment is only included in LIC, unless a group of

insurance contracts is onerous.

Reinsurance contracts

The PAA model is applied to reinsurance contracts held.

The corresponding accounting policies as for measuring

the insurance contracts issued are applied when

measuring the reinsurance contracts held. Thus,

correspondingly to insurance liabilities for issued

insurance contracts, the reinsurance assets for

reinsurance contracts held consist of asset for

remaining coverage and asset for incurred claims. The

asset for incurred claims also takes into consideration

the effect of the risk of non-performance by the issuer

of the reinsurance contract.

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	FINANCIAL STATEMENTS 2023	63

Life operations

Sampo Group’s life operations were reclassified as

discontinued operations during the first quarter.

Accounting principles related to life operations are

presented in the note 32.

Employee benefits

Post-employment benefits

Post-employment benefits include pensions and life

insurance.

Sampo has defined benefit plans in Sweden and

Norway, and defined contribution plans in other

countries. The most significant defined contribution

plan is that arranged through the Employees’ Pensions

Act (TyEL) in Finland.

In the defined contribution plans, the Group pays fixed

contributions to a pension insurance company and has

no legal or constructive obligation to pay further

contributions. The obligations arising from a defined

contribution plan are recognised as an expense in the

period to which the obligation relates.

In the defined benefit plans, the company still has

obligations after paying the contributions for the

financial period and bears their actuarial and/or

investment risk. The obligation is calculated separately

for each plan using the projected unit credit method. In

calculating the amount of the obligation, actuarial

assumptions are used. The pension costs are recognised

as an expense for the service period of employees.

Defined benefit plans are both funded and unfunded.

The amounts reported as pension costs during a

financial year consist of the actuarially calculated

earnings of old-age pensions during the year, calculated

straight-line, based on pensionable income at the time

of retirement. The calculated effects in the form of

interest expense for crediting/appreciating the

preceding years’ established pension obligations are

then added. The calculation of pension costs during the

financial year starts at the beginning of the year and is

based on assumptions about such factors as salary

growth and price inflation throughout the duration of

the obligation and on the current market interest rate

adjusted to take into account the duration of the

pension obligations.

The current year pension cost and the net interest of

the net liability is recognised through profit or loss in

pension costs. The actuarial gains and losses and the

return of the plan assets (excluding net interest) are

recognised as a separate item in other comprehensive

income.

The fair value of the plan assets covered by the plan is

deducted from the present value of future pension

obligations and the remaining net liability or net asset is

recognised separately in the balance sheet.

The Group has also certain voluntary defined benefit

plans which have no material significance.

Termination benefits

An obligation based on termination of employment is

recognised as a liability when the Group is verifiably

committed to terminate the employment of one or

more persons before the normal retirement date or to

grant benefits payable upon termination as a result of

an offer to promote voluntary redundancy. As no

economic benefit is expected to flow to the employer

from these benefits in the future, they are recognised

immediately as an expense. Obligations maturing more

than 12 months later than the balance sheet date are

discounted. The benefits payable upon termination at

Sampo are the monetary and pension packages related

to redundancy.

Share-based payments

During the financial year, Sampo had four valid share-

based incentive schemes settled in cash (the long-term

incentive schemes 2017 II as well as 2020 I, 2020 II and

2020 III for the management and key employees).

Topdanmark had one mainly share-settled incentive

scheme for the executive board and senior executives

during the financial year. Hastings had also a share-

based incentive scheme settled in cash during the

financial year.

More information on the different incentive schemes of

the Group companies can be found in note 28 Incentive

schemes.

The schemes have been measured at fair value at the

grant date and at every reporting date thereafter.

In the schemes settled in cash, the valuation is

recognised as a liability and changes are recognised

through profit or loss.

In the schemes settled in shares, the strike amounts

received on the exercise of the options are recognised

in the shareholder’s equity.

The fair value of the schemes has to a large extent been

determined using the Black-Scholes-pricing model. The

fair value of the market-based part of the incentive

takes into consideration the model’s forecast

concerning the number of incentive units to be paid as

a reward. The effects of non-market-based terms are

not included in the fair value of the incentive; instead,

they are considered in the number of those incentive

units that are expected to be exercised during the

vesting period. In this respect, the Group will update the

assumption on the estimated final number of incentive

units at every interim or annual balance sheet date.

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	FINANCIAL STATEMENTS 2023	64

Income taxes

Item Tax expenses in the income statement comprise

current and deferred tax. Tax expenses are recognised

through profit or loss, except for items recognised

directly in equity or other comprehensive income, in

which case the tax effect will also be recognised for

those items. Current tax is calculated based on the valid

tax rate of each country. Tax is adjusted by any tax

related to previous periods.

Deferred tax is calculated on all temporary differences

between the carrying amount of an asset or liability in

the balance sheet and its tax base. Deferred tax is not

recognised on non-deductible goodwill impairment, nor

is it recognised on the undistributed profits of

subsidiaries to the extent that it is probable that the

temporary difference will not reverse in the foreseeable

future. Deferred tax liabilities and assets are offset in the

individual companies if, and only if, they relate to

income taxes levied by the same taxation authority and

the company has a legally enforceable right of offset

them.

Deferred tax is calculated by using the enacted tax

rates prior to the balance sheet date. A deferred tax

asset is recognised to the extent that it is probable that

future taxable income will be available against which a

temporary difference can be utilised.

Share capital

The incremental costs directly attributable to the issue

of new shares or options or to the acquisition of a

business are included in equity as a deduction, net of

tax, from the proceeds.

Dividends are recognised in equity in the period when

they are approved by the Annual General Meeting.

When the parent company or other Group companies

purchase the parent company’s equity shares, the

consideration paid is deducted from the equity as

treasury shares until they are cancelled. If such shares

are subsequently sold or reissued, any consideration

received is included in equity.

Treasury shares

The purchase price paid for buy-back of treasury shares

(own shares) is directly deducted from equity. No gains

or losses are recognised from purchase, sale, or

cancellation of own shares. If own shares are re-issued,

the difference between purchase price and

consideration received is recognised in the premium

reserve.

Cash and cash equivalents

Cash and cash equivalents comprise cash and short-

term deposits (3 months).

Sampo presents cash flows from operating activities

using the indirect method in which the profit (loss)

before taxation is adjusted for the effects of

transactions of a non-cash nature, deferrals and

accruals, and income and expense associated with

investing or financing cash flows.

In the cash flow statement, interest received and paid is

presented in cash flows from operating activities. In

addition, the dividends received from other than

associated companies are included in cash flows from

operating activities. Dividends received from associates

are presented in cash flows from investments.

Dividends paid are presented in cash flows from

financing.

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	FINANCIAL STATEMENTS 2023	65

Accounting policies requiring

management judgement and

key sources of estimation

uncertainties

Preparation of the accounts in accordance with the

IFRS requires management estimates and assumptions

that have affected the revenue, expenses, assets,

liabilities and contingent liabilities presented in the

financial statements. Judgement is required also in the

application of accounting policies. The estimates made

are based on the best information available at the

balance sheet date. The estimation is based on historical

experiences and the most probable assumptions

concerning the future at the balance sheet date. The

actual outcome may deviate from results based on

estimates and assumptions. Any changes in the

estimates will be recognised in the financial year during

which the estimate is reviewed in all subsequent

periods.

Insurance contracts

Sampo Group management applies judgement

regarding the determination of discount rates and risk

adjustment.

The interest rate curve includes a risk-free rate and an

illiquidity premium determined by Management, which

in Sampo Group is mainly based on a portfolio of high-

rated bonds.

Risk adjustment is determined separately for all Sampo

Group’s companies and aggregated at the Group level.

Management considers this to reflect the compensation

that different entities would require for bearing non-

financial risk and their degree to risk aversion. The

confidence level approach is applied in the Group

companies. The confidence level applied in calculating

the risk adjustment is varying between group

companies from 75 per cent to 85 per cent.

Actuarial assumptions

Evaluation of insurance liabilities always involves

uncertainty, as technical provisions are based on

estimates and assumptions concerning future claims

costs. The estimates are based on statistics on historical

claims available to the Group on the balance sheet date.

The uncertainty related to the estimates is generally

greater when estimating new insurance portfolios or

portfolios where the clarification of a loss takes a long

time because complete claims statistics are not yet

available. In addition to the historical data, estimates of

insurance liabilities take into consideration other

matters such as claims development, the amount of

unpaid claims, legislative changes, court rulings and the

general economic situation.

A substantial part of the Group’s P&C insurance

liabilities concerns statutory accident and traffic

insurance. The most significant uncertainties related to

the evaluation of these liabilities are assumptions about

inflation, mortality, discount rates and the effects of

legislative revisions and legal practices.

Defined benefit plans as intended in IAS 19 are also

estimated in accordance with actuarial principles. As

the calculation of a pension plan reserve is based on

expected future pensions, assumptions must be made

not only about discount rates, but also about matters

such as mortality, employee turnover, price inflation and

future salaries.

Determination of fair value

The fair value of any non-quoted financial assets is

determined using valuation methods that are generally

accepted in the market.

Impairment tests

Goodwill, and intangible assets with an indefinite useful

life are tested for impairment at least annually. The

recoverable amounts from cash-generating units have

mainly been determined by using calculations based on

the value in use. These require management estimates

on matters such as future cash flows, the discount rate,

and general economic growth and inflation.

Consolidation of Topdanmark as a

subsidiary

According to IFRS 10 Consolidated Financial Statements

an investor controls an investee when it is exposed, or

has rights, to variable returns from its involvement with

the investee, and has the ability to affect those returns

through its power over the investee.

On 30 September 2017, Sampo’s ownership of

Topdanmark AS’s shares was 44.2 per cent and 49.1 per

cent of votes. At that time, Sampo’s management

thoroughly considered all the facts and circumstances

required by the standard in assessing whether Sampo

controlled Topdanmark and concluded that it should

consolidate Topdanmark as a subsidiary in the

consolidated financial statements. Considerations

included, among other things, the fact that Sampo was

the largest individual investor and Sampo was unaware

of any agreements between the other investors. In

addition, it was considered that Sampo had the power

to direct Topdanmark’s relevant activities, i.e., the

activities that significantly affect the investee’s returns.

At the time of assessment, Sampo had three members

in Topdanmark’s Board of Directors, one of them being

the Chairman. In total, there are 9 members on

Topdanmark’s Board and a vote of 50 per cent is

required for the decision making, according to the

Articles of Association. However, Sampo has the right,

at its discretion, to convene an extraordinary general

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	FINANCIAL STATEMENTS 2023	66

meeting to change the composition of the Board of

Directors and therefore gain the majority of voting

rights over the Board of Directors.

Discontinued operations

Sampo evaluated the reclassification principles set in

IFRS 5 Non-current Assets Held for Sale and

Discontinued Operations and IFRIC 17 Distribution of

Non-cash Assets to Owners. As a result of the analysis,

Sampo concluded that the demerger met the criteria

set for arrangements considered as held for distribution

to owners acting in their capacity as owners on 30

September 2023. Mandatum’s assets and liabilities were

reclassified as a disposal group held for distribution to

owners and related liabilities on 31 March 2023.

The partial demerger was completed as planned on 1

October 2023. The first trading day for Mandatum on

Nasdaq Helsinki was 2 October 2023. In the demerger,

all the shares in Mandatum Holding Ltd (a wholly owned

direct subsidiary of Sampo plc) and the related assets

and liabilities were transferred without a liquidation

procedure to Mandatum plc, a company incorporated in

the demerger on the effective date.

In addition, a part of Sampo's general liabilities not

allocated to any specific business operations were

allocated to Mandatum plc. These liabilities cannot be

legally transferred due to their nature, and therefore

Sampo and Mandatum agreed on forming an equivalent

debt relationship between them, amounting to EUR 102

million on 2 October 2023. Despite the allocation of

general liabilities, Sampo’s original liabilities in the

balance sheet remain unchanged in the arrangement

and Sampo plc will remain as the primary debtor

towards the creditors.

Dividend liability on partial demerger

Sampo analysed the accounting principles set in IFRIC

17 Distribution of Non-cash Assets to Owners regarding

the timing of recognition of liability for dividend

payable. IFRIC 17.10 states that the liability to pay a

dividend is recognised against the equity when the

dividend is appropriately authorised and is no longer at

the discretion of the entity. An entity shall measure a

liability to distribute non-cash assets as a dividend to its

owners at the fair value of the assets to be distributed.

In September 2023, the Board of Directors completed

the final evaluation of the conditions for completing the

demerger. The dividend liability on the partial demerger

of Mandatum was recognised in Sampo Group’s balance

sheet amounting to EUR 1,826 million. Sampo’s

management concluded that Mandatum segment’s net

assets represented the best estimate of Mandatum’s fair

value prior listing at the end of the reporting period

Q3/2023.

The best estimate for the fair value of Mandatum Group

was considered to be the weighted average share price

during the first day of listing on 2 October 2023 in

Nasdaq Helsinki. The average price of Mandatum’s share

was EUR 3.657, resulting in a dividend liability of EUR

1,835 million.

As the dividend liability recognised in September 2023

was EUR 1,826 million, Sampo recognised a difference

of EUR 9 million in the last quarter of 2023. The income

was recognised in the statement of comprehensive

income as a part of the discontinued operations. In

addition, Sampo recognised the loan receivable from

Mandatum plc, both in the financial assets in the

balance sheet and in discontinued operations in the

statement of comprehensive income.

Change in reference point for

disaggregation of IFRS 17

discounting effects in If

IFRS 17 Insurance contracts, implemented on 1 January

2023, requires insurance liability cash flows to be

discounted at rates consistent with observable market

prices, and for the effect of this to be disaggregated

between the insurance service result and insurance

finance income and expense. Following an analysis of

the application of IFRS 17 over 2023, Sampo Group has

decided to change the reference point used in If for

disaggregation from the beginning of year to the

beginning of quarter. This reflects the Group’s practice

of providing financial results for individual quarters, and

a desire to align more closely with common market

practise and the approach taken by other group

companies.

The implementation of the new methodology for

disaggregation is considered to be a change in

accounting estimate, in accordance with IAS 8.32

Accounting Policies, Changes in Accounting Estimates

and Errors and not a change in an accounting policy.

Accounting estimates are amounts “that are subject to

measurement uncertainty” and measurement

techniques and inputs are used to develop an

accounting estimate. Consequently, no restatement of

comparative year (2022) is required (IAS 8.36). For

more information, please see notes 1 and 3.

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	FINANCIAL STATEMENTS 2023	67

Application of new or revised

IFRSs and interpretations

The Group will apply new or amended standards and

interpretations related to the Group’s business in the

financial years when they become effective, or if the

effective date is other than the beginning of the

financial year, during the financial year following the

effective date. The new IFRSs coming into effect in

financial year 2024 will not have any significant

influence on the Group's financial reporting.

Pillar II

Sampo Group is within the scope of Pillar II regulations

(EU Minimum Tax Directive and OECD Safe Harbour

rules). Sampo Group companies have applied a

temporary mandatory relief from deferred tax

accounting for any potential impacts of the top-up tax,

and account for it as a current tax, should it occur.

Sampo Group will, as of fiscal year 2024, be subject to

the global minimum top-up tax rules either at the

ultimate parent entity level, by Sampo plc in Finland, or

domestic top-up tax in the countries where Sampo

Group companies operate, and where such rules are

enacted.

Sampo is in the process of assessing its exposure to the

global minimum top-up tax rules for when it comes into

effect. The assessment does not indicate any material

additional tax to be levied as a consequence of the top-

up tax rules, apart from a possible exception in

Gibraltar. Due to the complexities in applying the

legislation and calculating GloBe income, there may still

be top-up tax effects.

Transition to IFRS 17 Insurance

Contracts and IFRS 9 Financial

Instruments

Summary of high-level impacts in Sampo

Group

Sampo Group is applying IFRS 17 Insurance Contracts

and IFRS 9 Financial Instruments from 1 January 2023.

Sampo Group’s operations are focused on the P&C

business and Sampo primarily uses the premium

allocation approach (PAA) under IFRS 17. PAA requires

changes in the calculation of insurance liabilities,

including setting up an explicit risk adjustment for non-

financial risk and discounting claims reserves with

market rates.

The application of IFRS 9 did not have significant

impacts on the measurement of Sampo Group’s balance

sheet items, as the main part of financial assets is

currently reported at fair value in the balance sheet.

However, under IFRS 9, the fair value changes of

financial instruments are recognised in the statement of

profit or loss, which may increase earnings volatility.

Implementation of IFRS 17 or IFRS 9 did not have an

impact on the Solvency II calculations.

IFRS 17 Insurance Contracts

Transition approaches applied

On transition to IFRS 17 a full retrospective approach

and restatement of the previous year’s comparatives is

required. However, if the application of a full

retrospective approach is impracticable, then a

modified retrospective approach or a fair value

approach may be applied. A full retrospective approach

was applied in the Group’s non-life companies whereas

all transition methods were applied in the Group’s life

company.

In the full retrospective approach, Sampo Group

identifies, recognises and measures each group of

insurance contracts as if IFRS 17 had always been

applied and derecognised any existing balances that

would not exist if IFRS 17 had always been applied. The

resulting net difference was recognised in retained

earnings.

Sampo Group's life operations applied the modified

retrospective approach and fair value approach, when

application of the full retrospective approach was

impracticable. The choice of transition approach

depended on the type of the product/portfolio, the

issue date, and data availability.

When applying the fair value approach, Sampo Group’s

life operations were required to determine the

contractual service margin or loss component of the

liability for the remaining coverage at the transition

date. as the difference between the fair value of a group

of insurance contracts at that date and the fulfilment

cash flows measured at the same date. At the end of

the reporting period 2023, Sampo Group does not have

life operations due to the partial demerger and listing of

Mandatum Group on 1 October 2023.

Board of Directors’

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Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	68

Opening balance sheet 1 January 2022

Sampo Group's opening balance sheet amounted to EUR 58.7 billion and equity to

EUR 13.5 billion. Compared to the IFRS 4 closing balance sheet of EUR 61.1 billion, the

opening IFRS 17 balance sheet decreased by EUR 2.4 billion. On transition to IFRS 17,

both assets and liabilities decreased mainly due to reclassifications of premium

receivables, and deferred acquisition costs from other assets to insurance liabilities in

the balance sheet. Discounting of reserves decreased insurance liabilities, whereas

introduction of risk adjustment increased insurance liabilities. The introduction of the

loss component related to onerous contracts had only an insignificant impact on

transition.

The net transition impact on the IFRS 17 equity was insignificant, amounting to EUR 14

million in the opening balance sheet.

The following table presents the IFRS 17 opening balance sheet, as of 1 January 2022.


EURm	1 Jan 2022
Assets
Property, plant and equipment	373
Investment property	236
Intangible assets	3,660
Investments in associates	475
Financial assets	19,862
Financial assets related to unit-linked contracts	10,546
Deferred income tax	53
Insurance contract assets	41
Reinsurance contract assets	2,008
Other assets	712
Cash and cash equivalents	4,690
Non-current assets held for sale*	16,029
Total assets	58,684

Liabilities
Insurance contract liabilities	18,266
Investment contract liabilities	7,239
Subordinated debts	2,016
Other financial liabilities	2,315
Deferred income tax	851
Other liabilities	1,532
Liabilities related to non-current assets held for sale*	13,010
Total liabilities	45,228

Equity
Share capital	98
Reserves	1,530
Retained earnings	9,945
Other components of equity	1,231
Equity attributable to owners of the parent	12,805
Non-controlling interests	651
Total equity	13,456

Total equity and liabilities	58,684

* Topdanmark Life was classified as non-current assets held for sale on 1 January 2022 and the sale

was completed on 1 December 2022. Topdanmark Life is accounted for under IFRS 17 in the

opening balance 1 January 2022. Please see note 33 for further information.

Board of Directors’

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	FINANCIAL STATEMENTS 2023	69

IFRS 17 impacts on Sampo Group’s non-life

operations

The impact on the insurance contract liabilities due to

the introduction of the new IFRS 17 components,

including risk adjustment, deferred acquisition costs and

additional discounting amounted to EUR -2 billion. The

main impacts decreasing the insurance contract

liabilities were due to the additional discounting effect

and reclassifications. Under IFRS 17, all liabilities for

incurred claims are discounted, whereas only a smaller

part of reserves was discounted under IFRS 4.

IFRS 17 impacts on Sampo Group’s life operations

In the IFRS 17 opening balance, insurance contract

liabilities amounted to EUR 6.6 billion. Introduction of

discounting, as well as the new IFRS 17 components, risk

adjustment and CSM, increased the insurance contract

liabilities. At transition, the CSM amounted to EUR 433

million.

A significant part of life insurance liabilities (unit-linked

policies) is in the scope of IFRS 9, as these contracts do

not include significant insurance risk or discretionary

bonuses. In the opening balance sheet these investment

contract liabilities amounted to EUR 7.2 billion. For

contracts in scope of IFRS 9, expected profits are not

presented as CSM.

At the end of reporting period 2023, Sampo Group

does not have life operations due to the partial

demerger and listing of Mandatum Group on 1 October

2023.

Equity bridge calculation between IFRS 4 and IFRS 17

Sampo Group assessed the impact that the application

of IFRS 17 had on the Group’s equity. Sampo Group’s

retained earnings decreased by EUR 7 million (of which

revaluation of investment property was EUR 2 million),

and other components of equity increased by EUR 23

million at 1 January 2022. Other components of equity

increased due to the termination of shadow accounting

related to the segregated group pension portfolio.


EURm	Share capital	Reserves	Retained earnings	Other components of equity	Non-controlling interests	Total
Equity 31 Dec 2021	98	1,530	9,952	1,208	676	13,464
IFRS 17 adjustments non-life companies			9		-32	-23
IFRS 17 adjustments life company			-18			-18
Tax impact			0		7	7
Other			2	23		25
Equity 1 Jan 2022	98	1,530	9,945	1,231	651	13,456

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	FINANCIAL STATEMENTS 2023	70

IFRS 9 Financial Instruments

IFRS 9 Financial Instruments standard superseded IAS 39 Financial Instruments:

Recognition and Measurement. The new standard changed the classification and

measurement of financial assets, and includes a new impairment model based on

expected credit losses.

Sampo Group has applied the temporary exemption regarding the adoption of IFRS 9

Financial Instruments and implemented IFRS 9 at the same time as IFRS 17 Insurance

Contracts i.e. on 1 January 2023. The IFRS 9 comparative figures 2022 are not restated.

Classification and measurement under IFRS 9

The table presents the changes in classification and measurement of the main financial

assets and liabilities during the transition to IFRS 9. The implementation of IFRS 9 did

not have a material impact on the measurement of the balance sheet, as the main part

of the financial assets were reported at fair value under IAS 39 in the balance sheet,

which is also the measurement principle under IFRS 9. Therefore, the new classification

requirements did not have a material impact on total equity at the transition to IFRS 9

As financial assets classified as available for sale under IAS 39 are measured at fair

value through profit or loss under IFRS 9, the equity reserve related to available-for-

sale financial assets is transferred into retained earnings.

There were no changes in the measurement of financial liabilities on transition to

IFRS 9.


Measurement category under IAS 39	Measurement category under IFRS 9	Carrying amount 31 Dec 2022 (IAS 39)	Transfer	Carrying amount 1 Jan 2023 (IFRS 9)
		EURm		EURm
Derivative financial instruments	Derivative financial instruments	79	—	79
Financial assets at fair value	Financial assets at fair value through profit or loss	3,045	—	3,045
Financial assets available for sale	Financial assets at fair value through profit or loss	16,048	—	16,048
Loans and receivables	Financial assets at amortised cost	296	—	296

The carrying amounts presented in the table above exclude the effect of expected credit losses.

The effect is expected to be insignificant. Previously recognised incurred credit losses are included

in the carrying amounts presented in the table.

Investments underlying unit-linked policies amounting to EUR 10.5 billion are excluded in the

table.They are classified as at fair value through profit or loss both under IAS 39 and IFRS 9.

Board of Directors’

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	FINANCIAL STATEMENTS 2023	71

Segment information

At the end of the reporting period, Sampo Group’s

business segments are If, Topdanmark, Hastings and

Holding. At the end of comparative period, Mandatum

has been presented as a business segment.

Segment information has been produced in accordance

with the accounting policies adopted for preparing and

presenting the consolidated financial statements. The

segment revenue, expense, assets and liabilities, either

directly attributable or reasonably allocable, have been

allocated to the segments. Inter-segment pricing is

based on market prices. The transactions, assets and

liabilities between the segments are eliminated in the

consolidated financial statements on a line-by-line basis.

There was no significant income between segments

during the financial periods.

Board of Directors’

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	FINANCIAL STATEMENTS 2023	72

Result by segment for twelve months ended 31 December 2023


EURm	If	Topdan- mark	Hastings	Holding	Elim.	Sampo Group
GWP & brokerage income	5,468	1,339	2,063	—	—	8,870
Insurance revenue, net (incl. brokerage)	4,996	1,288	1,251	—	—	7,535
Claims incurred, net	-3,377	-862	-714	—	—	-4,953
Operating expenses	-777	-233	-409	—	—	-1,419
Underwriting result	842	194	128	—	—	1,164
Net investment income	871	107	79	-37	-13	1,006
Insurance finance income or expense, net	-331	-79	-35	—	—	-446
Net financial result	539	27	44	-37	-13	560
Other items	-24	-59	-42	-122	4	-243
Profit before taxes	1,358	162	129	-160	-9	1,481
Income taxes	-285	-43	-11	0	—	-339
Profit from the continuing operations	1,073	119	118	-160	-9	1,142
Discontinued operations, net of tax*	—	—	—	—	9	251
Net profit						1,393

Other comprehensive income

Items reclassifiable to profit or loss
Exchange differences	-23	-3	24	—	—	-1
Cash flow hedges	—	—	-1	—	—	-1
Total items reclassifiable to profit or loss, net of tax	-23	-3	23	—	—	-3


EURm	If	Topdan- mark	Hastings	Holding	Elim.	Sampo Group
Items not reclassifiable to profit or loss
Actuarial gains and losses from defined pension plans	-6	—	—	—	—	-6
Taxes	1	—	—	—	—	1
Total items not reclassifiable to profit or loss, net of tax	-5	—	—	—	—	-5

Total other comprehensive income for the continuing operations, net of tax	-28	-3	23	—	—	-8

Total comprehensive income	1,045	117	141	-160	-9	1,386

Profit attributable to
Owners of the parent						1,323
Non-controlling interests						70
Total comprehensive income attributable to
Owners of the parent						1,316
Non-controlling interests						70

Mandatum segment has been presented in the table on a single line as a discontinued operation,

and therefore the Group’s net profit by lines do not reconcile to the segment totals.

* The elimination totalling EUR 9 million is related to intra-segment operations between the

reportable segments and discontinued operation.

The segment result formula has been adjusted in Q4/2023 to align the presentation with the

management’s follow-up and ratio calculation. Hastings’ income and expenses previously included

in line-item Other P&C other insurance related income/expense are now split into Insurance

revenue, net (incl. brokerage) and Operating expenses.

Board of Directors’

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	FINANCIAL STATEMENTS 2023	73

Result by segment for twelve months ended 31 December 2022


EURm	If	Topdan- mark	Hastings	Holding	Elim.	Sampo Group
GWP & brokerage income	5,432	1,308	1,636	—	—	8,375
Insurance revenue, net (incl. brokerage)	5,024	1,255	998	—	—	7,277
Claims incurred, net	-3,550	-809	-509	—	—	-4,867
Operating expenses	-801	-216	-361	—	—	-1,379
Underwriting result	673	230	128	—	—	1,031
Net investment income	278	-142	16	177	-8	320
Insurance finance income or expense, net	610	115	11	—	—	736
Net financial result	888	-28	27	177	-8	1,056
Other items	-11	-45	-49	-31	-28	-163
Profit before taxes	1,550	158	107	146	-36	1,924
Income taxes	-325	-40	-8	8	—	-366
Profit from the continuing operations	1,225	117	98	153	-36	1,559
Discontinued operations, net of tax	—	—	—	—	36	579
Divested operations, net of tax	—	102	—	—	—	102
Net profit						2,240

Other comprehensive income

Items reclassifiable to profit or loss
Exchange differences	-169	-1	-106	8	—	-268
Available-for-sale financial assets	-823	—	-58	-240	—	-1,121
Taxes	169	—	—	40	—	209
Total items reclassifiable to profit or loss, net of tax	-823	-1	-164	-192	—	-1,180


EURm	If	Topdan- mark	Hastings	Holding	Elim.	Sampo Group
Items not reclassifiable to profit or loss
Actuarial gains and losses from defined pension plans	32	—	—	—	—	32
Taxes	-7	—	—	—	—	-7
Total items not reclassifiable to profit or loss, net of tax	26	—	—	—	—	26

Total other comprehensive income for the continuing operations, net of tax	-797	-1	-164	-192	—	-1,154

Other comprehensive income for the discontinued operations, net of tax						-484

Other comprehensive income, total net of tax						-1,639

Total comprehensive income	428	117	-66	-39	-36	601

Profit attributable to
Owners of the parent						2,107
Non-controlling interests						133
Total comprehensive income attributable to
Owners of the parent						468
Non-controlling interests						133

Mandatum’s segment has been presented in the table on a single line as a discontinued operation,

and therefore the Group total by lines do not reconcile to the segment totals.

Board of Directors’

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	FINANCIAL STATEMENTS 2023	74

Balance sheet by segment at 31 December 2023


EURm	If	Topdanmark	Hastings	Holding	Elim.	Sampo Group

Assets
Property, plant and equipment	177	117	19	4	—	318
Intangible assets	579	1,545	1,512	1	—	3,637
Investments in associates	4	8	—	—	—	12
Financial assets	10,838	2,060	1,407	7,564	-6,112	15,757
Deferred income tax	4	4	—	—	-4	3
Reinsurance contract assets	563	79	1,640	—	—	2,282
Other assets	553	89	136	23	—	800
Cash and cash equivalents	197	24	448	747	—	1,415
Total assets	12,915	3,926	5,162	8,339	-6,117	24,225

Liabilities
Insurance contract liabilities	7,134	1,855	2,726	—	—	11,716
Subordinated debts	135	148	—	1,490	-127	1,645
Other financial liabilities	58	46	186	979	—	1,269
Deferred income tax	352	139	76	0	—	567
Other liabilities	1,011	162	112	58	—	1,342
Total liabilities	8,689	2,350	3,100	2,527	-128	16,538

Equity
Share capital						98
Reserves						1,530
Retained earnings						6,378
Other components of equity						-743
Equity attributable to owners of the parent						7,263
Non-controlling interests						424
Total equity						7,687

Total equity and liabilities						24,225

Board of Directors’

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Sampo plc’s Financial Statements

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Group’s notes to the financial statements

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	FINANCIAL STATEMENTS 2023	75

Balance sheet by segment at 31 December 2022


EURm	If	Topdanmark	Hastings	Mandatum	Holding	Elim.	Sampo Group

Assets
Property, plant and equipment	190	112	23	26	4	—	355
Investment property	1	—	—	166	—	—	166
Intangible assets	588	1,232	1,501	172	1	—	3,494
Investments in associates	4	7	—	4	—	—	16
Financial assets	10,451	2,584	1,149	3,776	8,250	-6,644	19,565
Financial assets related to unit-linked contracts	—	—	—	9,930	—	—	9,930
Deferred income tax	9	7	—	—	—	-4	11
Insurance contract assets	—	—	—	6	—	—	6
Reinsurance contract assets	264	79	1,477	1	—	—	1,821
Other assets	394	66	127	162	60	-34	775
Cash and cash equivalents	296	8	246	761	1,762	—	3,073
Total assets	12,197	4,094	4,521	15,004	10,077	-6,682	39,212

Liabilities
Insurance contract liabilities	6,693	1,763	2,434	5,321	—	—	16,210
Investment contract liabilities	—	—	—	7,103	—	—	7,103
Subordinated debts	224	148	—	350	1,489	-228	1,983
Other financial liabilities	7	55	73	3	1,320	—	1,457
Deferred income tax	306	120	79	160	0	—	666
Other liabilities	1,079	166	118	224	64	-34	1,617
Total liabilities	8,309	2,252	2,704	13,159	2,873	-262	29,035

Equity
Share capital							98
Reserves							1,530
Retained earnings							8,482
Other components of equity							-492
Equity attributable to owners of the parent							9,618
Non-controlling interests							560
Equity							10,178

Total equity and liabilities							39,212

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	FINANCIAL STATEMENTS 2023	76

Geographical information


EURm
2023	Finland	Sweden	Norway	Denmark	UK	Baltic	Total
Revenue from external customers	1,343	1,801	1,654	1,897	1,308	223	8,225
Non-current assets	111	454	189	1,675	1,531	7	3,968


EURm
2022	Finland	Sweden	Norway	Denmark	UK	Baltic	Total
Revenue from external customers	1,682	1,840	1,730	1,848	1,030	189	8,319
Non-current assets	481	457	208	1,354	1,523	7	4,030

Geographical information has been disclosed on income from external customers and

non-current assets. The reported areas are Finland, Sweden, Norway, Denmark, UK and

the Baltic countries.

The revenue includes insurance revenue according to the underwriting country.

Holding includes net investment income and other operating income. For Hastings,

income from broker activities has been included as well. Revenue from external

customers during the reporting period 2023 includes Mandatum’s revenue until the

date of demerger i.e. 1 October 2023.

Non-current assets comprise of intangible assets, investments in associates, property,

plant and equipment, and investment property. At the end of the reporting period,

non-current assets no longer include Mandatum’s assets or liabilities.

Board of Directors’

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	FINANCIAL STATEMENTS 2023	77

Other notes

1 Insurance service result


EURm	1-12/2023	1-12/2022

Insurance revenue
Insurance contracts measured under PAA
Gross written premiums	8,513	8,053
Change in liability for remaining coverage	-329	-204
Brokerage revenue	233	213
Total insurance revenue from contracts measured under PAA	8,417	8,062

Total insurance revenue	8,417	8,062

Insurance service expenses
Expenses related to claims incurred
Claims paid and benefits	-5,292	-4,844
Claims handling expenses	-468	-481
Change in liability for incurred claims	-29	-220
Change in risk adjustment	-9	13
Change in loss component	-12	12
Insurance service expenses related to claims incurred	-5,810	-5,519

Operating expenses	-1,266	-1,239

Total insurance service expenses	-7,076	-6,759

Reinsurance result
Premiums	-1,005	-894
Claims recovered	857	652
Total reinsurance result	-148	-242

Total insurance service result	1,193	1,062

The table does not include Mandatum Group’s figures. For further information, please see note 32.

During Q4/2023 Sampo decided to change the reference point in discounting used in

If for disaggregation from the beginning of year to the beginning of quarter. The

change in reference point had an impact on the split of discounting effects between

the insurance service result and insurance finance income and expenses. Under the

new methodology, current year discounting effects identified in If’s insurance service

result are estimated at EUR 168 million for the full-year 2023.

Board of Directors’

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	FINANCIAL STATEMENTS 2023	78

2 Net investment income

The net investment income consists of investment income and expenses from financial

assets and liabilities held by the group companies. Figures for the comparative year

are presented in accordance with IAS 39 Financial Instruments: Recognition and

Measurement.


EURm	1-12/2023	1-12/2022
Derivative financial instruments
Interest income	6	1
Interest expense	-23	-12
Net gains or losses	5	136
Derivative financial instruments, total	-12	126

Financial assets at fair value through profit or loss
Debt securities
Interest income	447	43
Net gains or losses	364	-147
Equity securities
Dividend income	59	32
Net gains or losses	64	-26
Funds
Distributions	5	—
Interest income	11	2
Net gains or losses	60	-1
Financial assets at fair value through profit or loss, total	1,010	-97

Financial assets available-for-sale (IAS 39)
Debt securities	n/a	255
Equity securities	n/a	45
Funds	n/a	6
Financial assets available-for-sale, total	n/a	305

Financial assets at amortised cost	23	n/a
Loans and receivables	n/a	-4

Total income or expenses from financial assets	1,021	330


EURm	1-12/2023	1-12/2022

Other
Dividend income from associates	—	157
Expenses from asset management	-19	-23
Other income	34	16
Other expenses	-26	-153
Fee expenses	-1	0
Expenses from investment property	-4	-7
Total other	-15	-10

Total net investment income	1,006	320

The table does not include Mandatum Group’s figures. For further information, please see note 32.

Net gains or losses for debt securities include exchange differences of EUR -3 million

(2).

The amount of expected credit losses on financial assets measured at amortised cost is

presented in the note 14.

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	FINANCIAL STATEMENTS 2023	79

3 Net finance income or expense from

insurance contracts


EURm	1-12/2023	1-12/2022

Insurance contracts
Unwinding of discount rate	-322	-132
Effect of changes in interest rates and other financial assumptions	-207	959
Total finance income or expenses from insurance contracts	-529	827

Reinsurance contracts
Unwinding of discount rate	74	39
Reinsurers' share of effect of changes in interest rates and other financial assumptions	9	-130
Total finance income or expenses from reinsurance contracts	83	-90

Net finance result insurance and reinsurance contracts	-446	736

The table does not include Mandatum Group’s figures. For further information, please see note 32.

Due to the change in reference point in discounting in If, the unwind of discount rate

included in finance income or expense was EUR -180 million for the full year.

4 Other income


EURm	1-12/2023	1-12/2022

Other income	265	345
Income related to broker activities	12	6
Total other income	277	350

The table does not include Mandatum Group’s figures. For further information, please see note 32.

If’s other operating income includes approximately EUR 144 million (138) income from

insurance operations without a transfer of insurance risk. Such income is primarily

attributable, e.g. to sales commission and services for administration and claims

settlement in insurance contracts on behalf of other parties. This operating income is

accounted for under IFRS 15 Revenue from Contracts with Customers. In addition,

other operating income includes income from roadside assistance services provided by

If’s subsidiary Viking Assistance Group AS, recognised when roadside assistance has

been provided.

Hastings’ operating income includes total of EUR 115 million (106) revenue recognised

under IFRS 15 and consisting of fees and commission on panel providers, ancillary

product income and other retail income. Income related to broker activities is also

accounted for under IFRS 15 if there is no insurance risk transferred to Hastings.

5 Other expenses


EURm	1-12/2023	1-12/2022

Other expenses	-300	-127
Depreciation and amortisation	-99	-117
Salaries and other staff costs	-57	-192
Total other expenses	-457	-436

The table does not include Mandatum Group’s figures. For further information, please see note 32.

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	FINANCIAL STATEMENTS 2023	80

Expenses by nature

As Sampo presents expenses by function in the statement of profit or loss, the

following table provides additional information on the nature of the expenses including

the total of depreciation, amortisation and employee benefit expense.


EURm	1-12/2023	1-12/2022

Staff costs
Salaries and wages	-893	-892
Cash-settled share-based payments	-4	-34
Share-settled share-based payments	-2	-2
Pension costs
Pension expenses - defined contribution plans	-99	-101
Pension expenses - defined benefit plans	-15	-17
Other social security costs	-168	-176
Depreciations
Depreciation on plant and equipment	-15	-8
Depreciation IFRS 16	-33	-34
Amortisations
Amortisation on customer relations	-64	-65
Amortisation on other intangibles	-46	-62
Rental expenses	-34	-36
IT costs	-244	-250
Marketing expenses	-62	-65
Other	-654	-594
Total expenses split by nature	-2,335	-2,337

The table includes Mandatum Group’s figures.

The main items in line Other include commissions of EUR 138 million (157), other

technical expenses of EUR 132 million (20), acquisition costs of EUR 92 million (78),

and levies EUR 48 million (42).

6 Auditor's fees


EUR thousand	1-12/2023	1-12/2022

Auditing fees	-4,666	-4,300
Deloitte	-4,032	-4,000
KPMG	-634	-300
Other fees	-612	-1,000
Deloitte	-460	-700
KPMG	-152	-300
Total	-5,278	-5,300

7 Finance expenses


EURm	1-12/2023	1-12/2022

Interest expense on financial liabilities	-24	-32
Interest expense on subordinated loans	-48	-49
Other items	-22	-17
Total finance expenses	-93	-98

The table does not include Mandatum Group’s figures. For further information, please see note 32.

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	FINANCIAL STATEMENTS 2023	81

8 Components of other comprehensive

income


EURm	1-12/2023	1-12/2022

Other comprehensive income

Items reclassifiable to profit or loss
Exchange differences	-1	-268
Available-for-sale financial assets
Gains/losses arising during the year	n/a	-1,102
Reclassification adjustments (IAS 1.93)	n/a	-19
Cashflow hedges	-1	0
Taxes	—	209
Total items reclassifiable to profit or loss, net of tax	-3	-1,180

Items not reclassifiable to profit or loss
Actuarial gains and losses from defined pension plans	-6	32
Taxes	1	-7
Total items not reclassifiable to profit or loss, net of tax	-5	26

Total other comprehensive income for the continuing operations, net of tax	-8	-1,154

Other comprehensive income for the discontinued operations, net of tax	n/a	-484

Other comprehensive income total, net of tax	-8	-1,639

The table does not include Mandatum Group’s figures in 2023 . For further information, please see

note 32.

9 Earnings per share


EURm	1-12/2023	1-12/2022

Profit or loss attributable to the equity holders of the parent company	1,323	2,107
Weighted average number of shares outstanding during the financial year*	506	530
Earnings per share (EUR per share)	2.62	3.97
Earnings per share, continuing operations	2.12	2.88
Earning per share, discontinuing operations	0.50	1.09

* The weighted average number of treasury shares during the financial year has been taken into

account in the number of shares. There were no other share-related transactions during the

financial year.

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	FINANCIAL STATEMENTS 2023	82

10 Property, plant and equipment


	2023
EURm	Right-of- use assets1	Land and buildings	Plant and equipment2	Total

At 1 January
Cost	289	119	162	570
Accumulated depreciation	-92	-8	-115	-216
Net carrying amount at 1 January	197	111	47	355

Carrying amount at 1 January
Business acquisitions	—	1	0	1
Additions	19	1	25	45
Disposals	-20	-4	-5	-29
Depreciation	-32	0	-14	-46
Exchange differences	-4	0	-1	-4
Other changes	—	-3	—	-3
Carrying amount at 31 December	160	106	52	318

At 31 December
Cost	286	114	182	582
Accumulated depreciation	-126	-9	-130	-264
Net carrying amount at 31 December	160	106	52	318

The disposals in the financial year include the PP&E of Mandatum Group, separated

from Sampo on 1 October 2023. For further information, please see note 32.


	2022
EURm	Right-of- use assets1	Land and buildings	Plant and equipment2	Total

At 1 January
Cost	276	127	162	566
Accumulated depreciation	-70	-8	-113	-191
Net carrying amount at 1 January	207	119	50	375

Carrying amount at 1 January
Additions	33	—	18	50
Disposals	-3	—	-13	-17
Depreciation	-34	-1	-8	-43
Exchange differences	-6	-7	0	-12
Carrying amount at 31 December	197	111	47	355

At 31 December
Cost	294	120	163	577
Accumulated depreciation	-97	-9	-116	-222
Net carrying amount at 31 December	197	111	47	355

1 The Group acts as a lessee in various leases of office premises, vehicles, and office equipment.

Right-of-use assets relate to lease contracts for large office premises. The Group leases premises

mainly for its own use. The expected lease term varies from 2 to 12 years. Most contracts include an

option to extend the contract at the term end. Some lease contracts have an option to terminate

the contract before the term end. Variable lease payments are generally linked to consumer price

indexes.

More information on leases is in note 25 Other liabilities.

2 Equipment in different segments comprise IT equipment and furniture.

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	FINANCIAL STATEMENTS 2023	83

11 Intangible assets


	2023
EURm	Goodwill	Customer relations	Trademark	Work in progress	Other intangible assets	Total

At 1 January
Cost	2,385	679	224	72	625	3,985
Accumulated amortisation	—	-216	—	—	-275	-492
Net carrying amount at 1 January	2,385	463	224	72	350	3,494

Net carrying amount at 1 January
Business acquisitions	238	72	7	—	8	325
Additions	—	—	—	102	4	106
Disposals	-163	-31	—	-2	-4	-200
Amortisation	—	-65	0	-1	-44	-109
Transfers from WIP	—	—	—	-81	81	—
Exchange differences	10	3	3	—	5	21
Net carrying amount at 31 December	2,469	443	233	90	401	3,637

At 31 December
Cost	2,469	726	233	91	722	4,241
Accumulated amortisation	—	-282	0	-1	-321	-604
Net carrying amount at 31 December	2,469	443	233	90	401	3,637

The disposals in the financial year include the intangibles of Mandatum Group,

separated from Sampo on 1 October 2023. For further information, please see note 32.


	2022
EURm	Goodwill	Customer relations	Trademark	Work in progress	Other intangible assets	Total

At 1 January
Cost	2,490	716	277	36	681	4,200
Accumulated amortisation	—	-157	—	—	-249	-406
Net carrying amount at 1 January	2,490	560	277	36	432	3,794

Net carrying amount at 1 January
Business acquisitions	—	5	—	1	2	7
Additions	3	1	—	102	7	114
Disposals	-12	-28	-43	-6	-72	-162
Amortisation	—	-65	—	—	-60	-125
Transfers from WIP	—	—	—	-41	41	—
Other changes	-4	1	—	-19	16	-5
Exchange differences	-92	-11	-10	-1	-15	-129
Net carrying amount at 31 December	2,385	463	224	72	350	3,494

At 31 December
Cost	2,385	680	224	72	626	3,988
Accumulated amortisation	—	-218	—	—	-276	-494
Net carrying amount at 31 December	2,385	463	224	72	350	3,494

The comparison year includes Mandatum. For further information, please see note 32.


Goodwill is split between the segments as follows:	2023	2022
If	556	562
Topdanmark	1,038	802
Hastings	876	858
Mandatum	—	163
Total	2,469	2,385

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	FINANCIAL STATEMENTS 2023	84

The useful life for customer relations in the Group is 3–10 years. They are amortised

using the straight-line method. The useful life of trademark is deemed indefinite and it

will not be amortised.

Other intangible assets in all segments comprise mainly IT software. Amortisations and

impairment losses are included in the income statement item Other expenses.

Testing goodwill for impairment

Goodwill is tested for impairment in accordance with IAS 36 Impairment of assets. No

impairment losses have been recognised based on these tests.

For the purpose of testing goodwill for impairment, Sampo determines the recoverable

amount of its cash-generating units, to which goodwill has been allocated, on the basis

of value in use. Sampo has defined these cash-generating units as If Group,

Topdanmark Group, and Hastings Group.

The recoverable amounts for If and Hastings have been determined by using a

discounted cash flow model. The model is based on the best estimates of companies’

management of both historical evidence and financial conditions such as premiums,

claims, reinsurance, margins, interest rates, capital structure, and income and cost

development. The derived cash flows were discounted at the pre-tax rate of the cost

of equity which for both If and Hastings was 10.1 per cent. The cost of capital is defined

based on the CAPM model from external sources to reflect the risk of each company

relative to the market.

Forecasts for If, approved by the management, cover the years 2024–2026. The cash

flows beyond that have been extrapolated using a 2 per cent growth rate. Hastings’

long-term growth rate for years beyond 2028 is 2.0 per cent.

For Hastings, the recoverable amount exceeds its carrying amount by some EUR 700

million. With the calculation method used, e.g. an increase of about 2 percentage

points in the cost of equity could lead to a situation where the recoverable amount of

the entity would equal its carrying amount.

As for the If Group, the management believes that any reasonably possible change in

any of these key assumptions would not cause the aggregate carrying amount to

exceed the aggregate recoverable amount.

IAS 36 permits determining the recoverable amount by using the fair value less costs

to sell. For Topdanmark, the valuation of goodwill has been tested on the balance

sheet date by using that method. The fair value of Topdanmark of EUR 1,904 million on

the balance sheet date exceeds its carrying amount in the Group.

Sensitivity analysis


Impact on the present value from the following changes (EURbn)	2023
If
Long-term Combined ratio +2.5 p.p.	-1.7
Long-term Combined ratio -2.5 p.p.	1.7
Long-term growth rate -1 p.p.	-1.8
Long-term growth rate +1 p.p.	2.6
Cost of equity +1 p.p.	-2.1
Cost of equity -1 p.p.	3.0

Hastings
Long-term growth rate -1 p.p.	-0.3
Long-term growth rate +1 p.p.	0.4
Cost of Equity +1 p.p.	-0.4
Cost of Equity -1 p.p.	0.5

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	FINANCIAL STATEMENTS 2023	85

Acquisition of Oona Health AS, impairment testing of goodwill

On 1 December 2023, Topdanmark acquired 100% of the shares of Oona Health A/S.

The purchase price includes goodwill of EUR 237 million (DKK 1,770 million). For

further information on the acquisition, please see note 34.

Calculation of value in use is based on 10 years expected cash flows as approved by

the management. The pre-tax discount rate is 13.8%, and the post-tax rate 10.2%.


	2023
Assumptions
Earned premiums, CAGR, 0-10 years	8.9%
Earned premiums CAGR >10 years (terminal growth)	3.0%
Long-term combined ratio	84.2%

Sensitivities (EURm)
Earned premiums CAGR >10 years (terminal growth) -1pp	-25
Long-term combined ratio +1pp	-10
Post-tax discount rate +1pp	-41

12 Investment property


EURm	12/2023	12/2022
Net carrying amount at 1 January	166	568
Additions	—	17
Disposals	-166	-375
Net gains and losses from fair value adjustments	—	5
Other changes	0	-49
Exchange differences	0	0
Net carrying amount at 31 December	0	166

The disposals in the financial year include the investment property of Mandatum

Group, separated from Sampo on 1 October 2023. For further information, please see

note 32.

The premises in investment property for different segments are leased on market-

based, irrevocable contracts. The lengths of the contracts vary from those for the time

being to those for several years.

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	FINANCIAL STATEMENTS 2023	86

13 Investments in associates and joint ventures

Associates and joint ventures that have been

accounted for by the equity method at 31 December

2023


EURm Name	Domicile	Carrying amount	Interest held %
Associates
CAB Group AB	Sweden	3	21.98
Rogaland Forsikring AS	Norway	1	33.00
Bornholms Brandforsikring A/S	Denmark	8	27.00

Associates and joint ventures that have been accounted

for by the equity method at 31 December 2022


EURm Name	Domicile	Carrying amount	Interest held %
Associates
Precast Holding Oy	Finland	4	24.43
CAB Group AB	Sweden	3	21.98
Rogaland Forsikring AS	Norway	1	33.00
Bornholms Brandforsikring A/S	Denmark	7	27.00

Changes in investments in associates and in joint

ventures


EURm	2023	2022
At 1 January	16	777
Share of profit or loss	1	22
Additions	—	1
Disposals	-4	-313
Changes in the equity of associates	—	-12
Exchange differences	—	-33
Reclassification as an investment at fair value through p/l	—	-425
At 31 December	12	16

The carrying amount of investments in associates included goodwill of EUR - million (4).

The disposals in the financial year include the investments in associates of Mandatum

Group, separated from Sampo on 1 October 2023. For further information, please see

note 32.

Changes in holding of associate shares in 2022

NOBA Holding AB (former Nordax)

At the end of the financial year 2022 the associate shares in NOBA Holding were

reclassified to equity securities at fair value through profit or loss at the balance sheet

date, in accordance with IAS 39 Financial Instruments: Recognition and Measurement.

The valuation difference between the book value and fair value was recognised in the

income statement in other operating income.

Until the reclassification date, NOBA Holding was accounted for under IAS 28

Investments in associates and joint ventures. Other comprehensive income of EUR -37

million, recognised in earlier periods and remaining, was recycled to the income

statement at the reclassifcation.

Nordea

In April 2022, Sampo sold its remaining Nordea holding through an accelerated

bookbuild offering of 200 million shares. The sale of Nordea shares ended the

classification of shares as non-current assets held for sale.

The transactions in 2022 generated total gross proceeds of EUR 2.3 billion, of which

EUR 2.1 billion was raised in the second quarter. The positive accounting effect from

the transactions on Sampo’s consolidated statement of profit and loss was EUR 103

million, of which EUR 75 million was booked for the second quarter.

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	FINANCIAL STATEMENTS 2023	87

14 Financial assets

The financial assets for the reporting period are presented in accordance with IFRS 9

Financial Instruments. Figures for comparative year are presented in accordance with

IAS 39 Financial Instruments: Recognition and Measurement.


EURm	12/2023	12/2022
Financial assets

Derivative financial instruments	38	101

Financial assets at fair value through profit or loss
Debt securities	12,925	1,941
Equity securities	1,640	560
Funds	662	—
Deposits and other	40	544
Total financial assets at fair value through profit or loss	15,267	3,045

Financial assets available-for-sale (IAS 39)
Debt securities	n/a	12,815
Equity securities	n/a	1,581
Funds	n/a	1,652
Total financial assets available-for-sale	n/a	16,048

Financial assets measured at amortised cost
Loans	451	n/a
Other	1	n/a
Total financial assets measured at amortised cost	452	n/a

Loans and receivables (IAS 39)	n/a	371

Total financial assets	15,757	19,565

The comparative period includes Mandatum Group’s figures. For further information, please see

note 32.

Due to the demerger on 1 October 2023, Sampo recognised the loan receivable from

Mandatum plc amounting to EUR 102 million in order to allocate general liabilities. Loan

receivable is measured at amortised cost. In connection with the demerger, Sampo

sold certain financial assets to Mandatum at fair market value. These assets included

holdings in Enento Group, guarantee shares of Kaleva Mutual Insurance Company, and

other smaller equity, debt and alternative investments. In addition, Sampo and

Mandatum have agreed on the sale of shares in Saxo Bank, but the sale is subject to

approvals from authorities. For more information regarding the sale of Saxo, please see

note 35.

Loans measured at amortised cost include Hastings’ loans to customers amounting to

EUR 186 million (75).

Financial assets measured at amortised cost by stages

The financial assets measured at amortised cost are in the scope of impairment. The

impairment model is based on a forward-looking expected credit loss model (ECL).

The expected credit loss model has a three-stage approach based on changes in

credit risk. A 12-month ECL (Stage 1) applies to all items, unless there is a significant

increase in credit risk since initial recognition. For items where there is a significant

increase in credit risk (Stage 2), or in default (Stage 3), lifetime ECL applies.

The determination of expected credit losses is described in detail in the section

Accounting principles. The next table presents the gross amounts of financial assets

measured at amortised cost and loss allowance by stages.

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	FINANCIAL STATEMENTS 2023	88


12/2023
EURm	Stage 1 - 12-month ECL	Stage 2 - Lifetime ECL - not credit- impaired	Stage 3 - Lifetime ECL - credit- impaired	Total

Financial assets at amortised cost
Loans	451	8	7	466
Deposits	1	—	—	1
Loss allowance	-9	-1	-5	-16
Total	442	6	2	451

The gross carrying amounts of the financial assets measured at amortised cost was

EUR 468 million and loss allowance was EUR 16 million on 31 December 2023. During

the reporting period, the expected credit losses recognised in P&L was EUR 10 million.

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	FINANCIAL STATEMENTS 2023	89

Derivative financial instruments


		2023 Fair value			2022 Fair value
EURm	Contract/ Notional Amount	Assets	Liabilities	Contract/ Notional Amount	Assets	Liabilities
Derivatives held for trading

Interest rate derivatives
OTC derivatives
Interest rate swaps	340	3	44	394	5	45
Inflation cover	211	16	12	274	22	3
Total interest rate derivatives	551	18	56	668	27	48

Foreign exchange derivatives
OTC derivatives
Currency forwards	3,032	18	57	5,092	58	6
Currency options, bought and sold	53	1	1	31	4	2
Total foreign exchange derivatives	3,085	20	58	5,123	62	7

Total derivatives held for trading	3,636	38	114	5,791	89	55


		2023 Fair value			2022 Fair value
EURm	Contract/ Notional Amount	Assets	Liabilities	Contract/ Notional Amount	Assets	Liabilities
Derivatives held for hedging

Fair value hedges
Currency forwards	—	—	—	328	12	—
Total derivatives held for fair value hedging	—	—	—	328	12	—

Cash flow hedges
Currency forwards	—	—	—	6	—	—
Interest rate swaps	228	—	2	—	—	—
Total cash flow hedges	228	—	2	6	—	—

Total derivatives held for hedging	228	—	2	334	12	—

Group financial derivatives, total	3,864	38	116	6,124	101	55

Fair value hedges

During comparative period 2022 in Mandatum, fair value hedging was applied to

hedge a proportion of foreign exchange risk in available-for-sale financial assets. The

interest elements of foreign exchange forward contracts were excluded from hedging

relationships.

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	FINANCIAL STATEMENTS 2023	90

15 Determination and hierarchy of fair values

A majority of Sampo Group's financial assets are valued

at fair value. The valuation is based on either published

price quotations or valuation techniques based on

market observable inputs, where available. For a limited

amount of assets the value needs to be determined

using other techniques. The financial instruments

measured at fair value have been classified into three

hierarchy levels in the notes, depending on, for example,

whether the market for the instrument is active, or if the

inputs used in the valuation technique are observable.

The classification of financial assets in hierarchy levels is

assessed quarterly.

The fair value of the derivative instruments is assessed

using quoted market prices in active markets,

discounting method or option pricing models.

The fair value of loans and other financial instruments

which have no quoted price in active markets is based

on discounted cash flows, using quoted market rates.

The market’s yield curve is adjusted by other

components of the instrument, e.g. by credit risk.

Fair values are "clean" fair values, i.e. less interest

accruals.

On level 1, the measurement of the instrument is based

on quoted prices in active markets for identical assets

or liabilities. Quoted prices in active markets are

considered to represent the best estimate of fair value

for related financial assets. On an active market quoted

prices are easily and regularly available and represent

actual and regularly occurring transactions at arm’s

length distance.

In level 2, inputs for the measurement of the instrument

also include other than quoted prices observable for the

asset or liability, either directly or indirectly by using

valuation techniques.

In level 3, the measurement is based on other inputs

rather than observable market data. Sampo Group’s

level 3 assets consist mainly of a few larger equity

investments and investments in private equity and

alternative funds.

In level 3, the two most prominent equity investments

are valued by using excess return model, in which the

value of a company is sum of capital invested currently

in the company and the present value of excess returns

that the company expects to make in the future.

For private equity funds the valuation of the underlying

investments is conducted by the fund manager who has

all the relevant information required in the valuation

process. The valuation is usually updated quarterly

based on the value of the underlying assets and the

amount of debt in the fund. There are several valuation

methods, which can be based on, for example, the

acquisition value of the investments, the value of

publicly traded peer companies, the multiple based

valuation or the cash flows of the underlying

investments.

The carrying amounts and fair values of financial assets

and financial liabilities, including their fair value

hierarchy levels, are presented in the following table.

Fair value information of financial assets and financial

liabilities not measured at fair value is not presented in

the table, if the carrying amount is a reasonable

estimate of the fair value. Reporting period figures are

presented in accordance with IFRS 9 Financial

Instruments.

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	FINANCIAL STATEMENTS 2023	91


EURm
31 December 2023	Carrying amount	Level 1	Level 2	Level 3	Total

Financial assets at fair value

Derivative financial instruments
Interest rate swaps	3	—	3	—	3
Foreign exchange derivatives	20	—	20	—	20
Other derivatives	16	—	16	—	16
Total	38	—	38	—	38

Financial assets at fair value through profit or loss
Debt securities	12,925	8,476	4,430	19	12,925
Equity securities	1,640	886	24	730	1,640
Funds	662	480	31	151	662
Deposits and other	40	—	40	—	40
Total	15,267	9,842	4,525	900	15,267

Total financial assets measured at fair value	15,305	9,842	4,563	900	15,305

Financial assets measured at amortised cost
Loans	451	—	—	451	451
Other	1	—	—	1	1
Total	452	—	—	452	452

Total financial assets	15,757	9,842	4,563	1,352	15,756


EURm
31 December 2023	Carrying amount	Level 1	Level 2	Level 3	Total

Financial liabilities at fair value

Derivative financial instruments
Interest derivatives	46	2	44	—	46
Foreign exchange derivatives	58	—	58	—	58
Other derivatives	12	—	12	—	12
Total financial liabilities at fair value	116	2	114	—	116

Financial liabilities measured at amortised cost

Subordinated debt securities
Subordinated loans	1,645	1,448	148	—	1,596

Debt securities in issue
Bonds	959	936	—	—	936
Amounts owed to credit institutions	194	—	9	184	194
Financial liabilities measured at amortised cost total	2,798	2,385	157	184	2,726

Group financial liabilities, total	2,914	2,387	271	184	2,842

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	FINANCIAL STATEMENTS 2023	92


EURm
31 December 2022	Carrying amount	Level 1	Level 2	Level 3	Total

Financial assets at fair value

Derivative financial instruments
Interest rate swaps	5	—	5	—	5
Foreign exchange derivatives	74	—	74	—	74
Other derivatives	22	—	22	—	22
Total	101	—	101	—	101

Financial assets at fair value through profit or loss
Equity securities	560	111	24	425	560
Debt securities	1,881	1,718	159	5	1,881
Total	2,441	1,829	183	430	2,441

Financial assets designated as at fair value through profit or loss
Deposits	544	—	544	—	544
Debt securities	1	—	1	—	1
Debt securities (unit-trusts)	60	43	16	—	60
Total	604	43	561	—	604


EURm
31 December 2022	Carrying amount	Level 1	Level 2	Level 3	Total
Financial assets related to unit- linked insurance
Equity securities	676	643	2	31	676
Debt securities	941	90	757	94	941
Funds	7,883	4,880	676	2,327	7,883
Derivative financial instruments	18	—	18	—	18
Other assets	412	—	412	—	412
Total	9,930	5,612	1,865	2,453	9,930

Financial assets available-for- sale
Equity securities	1,581	1,224	2	354	1,581
Debt securities	12,815	7,941	4,832	43	12,815
Other assets	1,652	775	72	806	1,652
Total	16,048	9,940	4,906	1,203	16,048

Total financial assets at fair value	29,125	17,425	7,614	4,086	29,125

Other financial assets

Financial assets at amortised cost
Loans and receivables	371	—	—	370	370
Total	371	—	—	370	370

Group's financial assets, total	29,495	17,425	7,614	4,456	29,495

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	FINANCIAL STATEMENTS 2023	93


EURm
31 December 2022	Carrying amount	Level 1	Level 2	Level 3	Total

Financial liabilities at fair value

Derivative financial instruments
Interest rate derivatives	45	—	45	—	45
Foreign exchange derivatives	7	—	7	—	7
Other derivatives	3	—	3	—	3
Total	55	—	55	—	55

Total financial liabilities at fair value	55	—	55	—	55

Financial liabilities measured at amortised cost

Subordinated debt securities
Subordinated loans	1,983	1,409	478	—	1,887

Debt securities in issue
Bonds	1,306	1,126	110	—	1,236
Borrowings on Revolving Credit Facility	73	—	—	73	73
Amounts owed to credit institutions	23	23	—	—	23
Financial liabilities measured at amortised cost total	3,384	2,558	588	73	3,219

Group financial liabilities, total	3,439	2,558	643	73	3,274

Comparative year figures are presented in accordance with IAS 39 Financial

Instruments: Recognition and Measurement. The comparative period includes

Mandatum Group’s figures. For further information, please see note 32.

Transfers between levels 1 and 2


EURm	1-12/2023		1-12/2022
Transfers between levels 1 and 2	Transfers from level 2 to level 1	Transfers from level 1 to level 2	Transfers from level 2 to level 1	Transfers from level 1 to level 2

Financial assets at fair value through profit or loss
Debt securities	378	334	—	—
Total	378	334	—	—

Financial assets related to unit- linked insurance
Debt securities	—	—	13	6
Total			13	6

Financial assets available-for-sale
Debt securities	—	—	632	500
Total			632	500

Transfers are based mainly on the changes of trading volume information provided by

an external service provider.

Comparative year figures are presented in accordance with IAS 39 Financial

Instruments: Recognition and Measurement. The comparative period includes

Mandatum Group’s figures. For further information, please see note 32.

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	FINANCIAL STATEMENTS 2023	94

Sensitivity analysis of fair values

Sensitivities presented for the reporting period do not include Mandatum’s figures. The

sensitivity of financial assets and liabilities to changes in exchange rates is assessed on

business area level due to different base currencies.


	12/2023	12/2022
EURm	Recognised in profit or loss	Recognised in profit or loss	Recognised in equity

If
10 percentage point depreciation of all other currencies against SEK	4	13	2

Topdanmark
10 percentage point depreciation of all other currencies against DKK	-1	-11	No impact

Hastings
10 percentage point depreciation of all other currencies against GBP	—	n/a	n/a

Holding
10 percentage point depreciation of all other currencies against EUR	-73	No impact	-109

The sensitivity analysis of the Group’s fair values of financial assets and liabilities in

different market risk scenarios is presented in the following table. The effects represent

the instantaneous effects of a one-off change in the underlying market variable on the

fair values on 31 December 2023. The sensitivity analysis includes the effects of

derivative positions. All sensitivities are calculated before taxes.


	Interest rate	Interest rate	Equity	Other financial assets
EURm	1% parallel shift down	1% parallel shift up	20% fall in prices	20% fall in prices

Effect in profit/loss	358	-340	-266	-166
Total effect	358	-340	-266	-166

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	FINANCIAL STATEMENTS 2023	95

16 Movements in level 3 financial instruments measured at fair value


EURm
Financial assets	At 1 Jan	Total gains/ losses in income statement	Purchases and re-classifi- cations	Sales	At 31 December 2023

Financial assets at fair value through profit or loss
Debt securities	134	1	11	-126	19
Equity securities	763	-14	9	-28	730
Funds	212	-61	—	—	151
Total	1,109	-74	20	-155	900

Mandatum Group’s financial instruments on level 3 are not included in the opening balance 1 January 2023. For further information on classification of Mandatum Group as

discontinued operation, please see note 32.

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	FINANCIAL STATEMENTS 2023	96


EURm
Financial assets	At 1 Jan	Total gains/ losses in income statement	Total gains/ losses recorded in other compre- hensive income	Purchases and re- classifi- cations	Sales	Settlements	Transfers from level 1 and 2	Transfers to levels 1 and 2	At 31 Dec 2022	Gains/ losses included in p/l for financial assets 1-12/2022

Financial assets at fair value through profit or loss
Equity securities	—	—	—	425	—	—	—	—	425	—
Debt securities	11	0	—	—	-6	—	—	—	5	1
Total	11	0	—	425	-6	—	—	—	430	1

Financial assets related to unit- linked insurance contracts
Equity securities	20	1	—	15	-5	—	—	—	31	1
Debt securities	61	-8	—	108	-81	-23	40	-3	94	-8
Funds	2,065	-16	—	598	-315	—	—	-5	2,327	-23
Total	2,145	-22	—	721	-401	-23	40	-7	2,453	-30

Financial assets available-for-sale
Equity securities	394	6	-41	2	-7	—	—	—	354	-41
Debt securities	73	0	0	17	-18	—	—	-30	43	2
Funds	1,078	11	-226	44	-101	—	—	—	806	-216
Total	1,545	16	-267	64	-125	—	—	-30	1,203	-255

Total financial assets measured at fair value	3,702	-6	-267	1,210	-533	-23	40	-37	4,086	-284

Purchases and reclassifications include the reclassification of Nordax associate shares EUR 425 million to equity securities at fair value through profit or loss. The comparative

period includes Mandatum Group’s figures. For further information, please see note 32.


	1–12/2022
EURm	Realised gains and losses	Fair value gains and losses	Total
Total gains or losses included in profit or loss for the financial year	-6	-267	-273
Total gains or losses included in profit or loss for assets held at the end of the financial year	-17	-267	-284

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	FINANCIAL STATEMENTS 2023	97

Sensitivity analysis of level 3 financial instruments

measured at fair value


	12/2023		12/2022
EURm	Carrying amount	Effect of reasonably possible alternative assumptions (+/-)	Carrying amount	Effect of reasonably possible alternative assumptions (+/-)

Financial assets at fair value through profit or loss (IFRS 9)
Debt securities	19	0	—	—
Equity securities	730	-146	—	—
Funds	151	-30	—	—
Total	900	-176	—	—

Financial assets available-for-sale (IAS 39)
Debt securities	—	—	43	-1
Equity securities	—	—	354	-71
Funds	—	—	806	-161
Total	—	—	1,203	-233

The comparative period includes Mandatum Group’s figures. For further information, please see

note 32.

The value of financial assets regarding the debt security instruments has been tested

by assuming a rise of 1 per cent in interest rate level in all maturities. For other financial

assets, the prices were assumed to go down by 20 per cent.

During the reporting period, on the basis of these alternative assumptions, a possible

change in interest levels would cause a reduction of EUR -0 million for the debt

instruments, and EUR -176 million valuation loss for other instruments in the Group’s

statement of profit or loss. The reasonably possible effect, proportionate to the

Group’s equity, would thus be 2.4 per cent.

During the comparison period, Sampo Group carried no investment risks related to

unit-linked insurance, so a change in assumptions regarding these assets did not affect

profit or loss. On the basis of these alternative assumptions, a possible change in

interest levels would have caused a reduction of EUR -1 million for the debt

instruments, and EUR -232 million valuation loss for other instruments in the Group’s

other comprehensive income. The reasonably possible effect, proportionate to the

Group’s equity, would have been 2.6 per cent.

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	FINANCIAL STATEMENTS 2023	98

17 Deferred tax assets and liabilities

Changes in deferred tax during the financial year 2023


EURm	1 Jan	Business acquisitions/ disposals	Recognised in comprehensive income statement	Recognised in equity	Exchange differences	31 Dec

Deferred tax assets
Tax losses carried forward	2	0	-1	—	0	1
Changes in fair values	5	—	-5	—	0	0
Other deductible temporary differences	128	-3	-11	0	2	116
Total	135	-3	-17	—	2	117

Netting of deferred taxes						-114

Deferred tax assets in the balance sheet, total	135	-3	-17	0	2	3

Deferred tax liabilities
Depreciation differences and untaxed reserves	209	-2	21	—	-4	224
Changes in fair values	194	-70	67	0	2	194
Pension assets	7	—	-1	—	—	7
Other taxable temporary differences	379	-93	-32	0	1	255
Total	790	-164	56	0	-1	680

Netting of deferred taxes						-114

Deferred tax liabilities in the balance sheet, total	790	-164	56	0	-1	567

The disposals include the deferred tax assets and liabilities of Mandatum Group, separated from Sampo on 1 October 2023. For further information, please see note 32.

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	FINANCIAL STATEMENTS 2023	99

Changes in deferred tax during the financial year 2022


EURm	1 Jan	Business acquisitions/ disposals	Recognised in comprehensive income statement	Recognised in equity	Exchange differences	31 Dec

Deferred tax assets
Tax losses carried forward	2	—	0	0	0	2
Changes in fair values	6	—	0	—	0	5
Other deductible temporary differences	141	1	-6	0	-7	128
Total	148	1	-6	0	-8	135

Netting of deferred taxes						-124

Deferred tax assets in the balance sheet, total	148	1	-6	0	-8	11

Deferred tax liabilities
Depreciation differences and untaxed reserves	219	0	-7	7	-10	209
Changes in fair values	513	7	-307	—	-18	194
Pension assets	—	—	7	—	—	7
Other taxable temporary differences	226	-19	175	1	-4	379
Total	957	-12	-131	9	-33	790

Netting of deferred taxes						-124

Deferred tax liabilities in the balance sheet, total	957	-12	-131	9	-33	666

The line items in deferred tax assets and liabilities for the comparison year 2022 have been restated due to the transition to IFRS 17.

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	FINANCIAL STATEMENTS 2023	100

Pillar II - tax losses

Sampo Group companies have applied a temporary mandatory relief from deferred tax accounting for any impacts of the top-up tax and accounts for it as a current tax should it

occur.


EURm
Tax losses carried forward 2023	Country	Tax losses carried forward in local currency	Tax losses carried forward	Of which no deferred tax asset has been recognised	Of which deferred tax asset has been recognised	Recognised deferred tax asset	Applicable tax rate	Potential deferred tax asset not recognised
Sampo Plc	Finland	EURm 267	267	267	—	—	20.00%	53

If P&C Insurance Holding Ltd (publ)	Norway	NOKm 83	7	7	—	—	22.00%	-*

If P&C Insurance Ltd (publ)	Germany	EURm 2	2	2	—	—	27.38%	-*
If P&C Insurance Ltd (publ)	France	EURm 16	16	16	—	—	25.83%	-*
If P&C Insurance Ltd (publ)	UK	GBPm 20	23	23	—	—	25.00%	-*

If P&C Insurance AS	Latvia	—	—	—	—	—	20.00%	-

Insrt AB	Sweden	SEKm 6	1	1	—	—	20.60%	—

Viking Sverige AB	Sweden	SEKm 42	4	—	4	1	20.60%	—
Viking Assistance A/S	Denmark	DKKm 33	4	4	—	—	22.00%	1
Viking Nordic Assistance S.L	Spain	—	—	—	—	—	25.00%	—

Hastings Group Finance plc	UK	GBPm 7	8	8	—	—	25.00%	2
Total						1		56

* Loss has occurred in a foreign branch and has been deducted in the head office. Utilisation of the loss locally in the foreign branch would not affect the tax expense for the company as a whole. Therefore,

no deferred tax asset can be recognised relating to the foreign branch.

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	FINANCIAL STATEMENTS 2023	101


MEUR
Tax losses carried forward 2022	Country	Tax losses carried forward in local currency	Tax losses carried forward	Of which no deferred tax asset has been recognised	Of which deferred tax asset has been recognised	Recognised deferred tax asset	Applicable tax rate	Potential deferred tax asset not recognised
Sampo Plc	Finland	EURm 172	172	172	—	—	20.00%	34

If P&C Insurance Holding Ltd (publ)	Norway	—	—	—	—	—	22.00%	-*

If P&C Insurance Ltd (publ)	Germany	EURm 5	5	5	—	—	27.38%	-*
If P&C Insurance Ltd (publ)	France	EURm 24	24	24	—	—	25.83%	-*
If P&C Insurance Ltd (publ)	UK	GBPm 25	28	28	—	—	25.00%	-*

If P&C Insurance AS	Latvia	EURm 3	3	3	—	—	20.00%	1

Insrt AB	Sweden	SEKm 6	1	1	—	—	20.60%	—

Viking Sverige AB	Sweden	SEKm 22	2	—	2	—	20.60%	—
Viking Assistance A/S	Denmark	DKKm 33	4	4	—	—	22.00%	1
Viking Nordic Assistance S.L	Spain	EURm 0	—	—	—	—	25.00%	—

Hastings Group Finance plc	UK	GBPm 7	8	8	—	—	25.00%	2
Total						—		38

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	FINANCIAL STATEMENTS 2023	102

18 Taxes


EURm	2023	2022

Profit before tax	1,481	1,924

Tax calculated at parent company's tax rate	-296	-385
Different tax rates in foreign jurisdictions	-40	-153
Income from associates not subject to tax	0	21
Income not subject to tax	46	49
Non-deductible expenses	-40	-17
Tax losses for which no deferred tax asset has been recognised	-36	-28
Changes in tax rates	-8	2
Tax from previous years	2	5
Total	-372	-505

The taxes include the tax from the discontinued operations EUR -33 million (-139).

19 Other assets


EURm	12/2023	12/2022

Assets arising from direct insurance operations	245	213
Assets arising from reinsurance operations	92	22
Settlement receivables	5	83
Accrued interest	130	113
Net pension asset	32	34
Other	296	310
Total other asset	800	775

Item Other includes, e.g. assets related to patient insurance pool EUR 63 million (68),

other receivables, prepaid expenses and damaged goods.

Other assets include non-current assets EUR 61 million (65).

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	FINANCIAL STATEMENTS 2023	103

20 Insurance contract liabilities

Insurance liabilities reflect the liability the Group has for its insurance undertakings,

meaning the insurance contracts underwritten. The liability consists of two parts, the

liability for remaining coverage and acquisition cash flow assets as well as the liability

for incurred claims.

The liability for remaining coverage relates to the obligation to investigate and pay

valid claims that have not yet occurred. The liability consists of the premium payments

received for insurance services to be provided after the closing date, i.e. relating to the

unexpired portion of the insurance coverage, and adjusted for acquisition cash flows.

The liability for incurred claims relates to the obligation to investigate and pay valid

claims that have occurred. The liability is designed to cover anticipated future

payments for all claims incurred, including claims not yet reported.

For further information on accounting principles related to insurance contract

liabilities, please see the section Accounting principles.


EURm	12/2023	12/2022

Insurance contract liability - contracts measured under PAA
Liability for remaining coverage	1,709	1,514
Liability for incurred claims	10,007	9,376

Insurance contract liability - contracts measured under GMM and VFA
Liability for remaining coverage	—	5,299
Liability for incurred claims	—	22

Total insurance contract liabilities	11,716	16,210

Reinsurance contract assets
Assets for remaining coverage	258	221
Assets for incurred claims	2,024	1,600
Reinsurance contract assets, total	2,282	1,821

Total insurance contracts, net of reinsurance	9,434	14,389

The comparative period includes Mandatum Group’s figures. For further information, please see

note 32.

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	FINANCIAL STATEMENTS 2023	104

21 Reconciliation of insurance contract liabilities

Insurance contracts

The first table presents the reconciliation of the carrying

amounts of the liability for remaining coverage and the

liability for incurred claims for issued insurance

contracts during the reporting period as a result of

amounts recognized in the statement of total

comprehensive income and cash flows.

Reinsurance contracts

Following table presents the reconciliation of the

carrying amounts of the asset for remaining coverage

and the asset for incurred claims for reinsurance

contracts during the reporting period as a result of

amounts recognized in the statement of profit and

other comprehensive income and cash flows.

Information is presented on Sampo Group level and on

the reporting segment level. Information regarding

insurance contract liability is presented on contracts

measured under PAA model.

Mandatum Group’s figures are not included in the

reconciliation tables as Mandatum is reported as

disposal group held for distribution to owners.

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	FINANCIAL STATEMENTS 2023	105

Sampo Group - Insurance contract liabilities, gross at 31 December 2023 and 31 December 2022


	2023					2022
	Liabilities for remaining coverage		Liabilities for incurred claims			Liabilities for remaining coverage		Liabilities for incurred claims
EURm	Excluding loss component	Loss component	Estimates of present value of future cash flows	Risk adjustment for non- financial risk	Total	Excluding loss component	Loss component	Estimates of present value of future cash flows	Risk adjustment for non- financial risk	Total

Opening balance	1,499	14	8,931	444	10,889	1,504	28	9,686	477	11,695

Changes in the statement of comprehensive income
Insurance revenue	-8,417	—	—	—	-8,417	-8,062	—	—	—	-8,062

Insurance service expenses
Incurred claims and other insurance service expenses	—	—	6,503	154	6,657	—	—	5,897	151	6,047
Amortisation of insurance acquisition cash flows	223	—	—	—	223	213	—	—	—	213
Changes that relate to past service (LIC)	—	—	-395	-145	-540	—	—	-71	-163	-234
Changes that relate to future service (LRC)	—	12	—	—	12	—	-12	—	—	-12
Total insurance service expenses	223	12	6,108	9	6,351	213	-12	5,826	-13	6,014

Insurance service result	-8,195	12	6,108	9	-2,066	-7,849	-12	5,826	-13	-2,048

Insurance finance income or expense	—	—	529	—	529	-1	—	-826	—	-827
Other items (including FX effects)	-185	—	91	4	-89	244	-1	-475	-20	-252
Total changes in the statement of comprehensive income	-8,379	12	6,728	13	-1,626	-7,606	-14	4,525	-32	-3,127

Cash flows during the period
Premiums received	8,785	—	—	—	8,785	7,808	—	—	—	7,808
Claims and other insurance service expenses paid	—	—	-6,111	—	-6,111	—	—	-5,280	—	-5,280
Insurance acquisition cash flows paid	-221	—	—	—	-221	-207	—	—	—	-207
Total cash flows during the period	8,564	—	-6,111	—	2,453	7,601	—	-5,280	—	2,321
Transfer to other items in the balance sheet	17	—	—	1	18	—	—	—	—	—

Closing balance - liabilities relating to insurance contracts	1,701	27	9,547	459	11,734	1,499	14	8,931	444	10,889
Acquisition cash flow asset					-18					—
Closing balance					11,716					10,889

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	FINANCIAL STATEMENTS 2023	106

Sampo Group - Reinsurance contracts at 31 December 2023 and 31 December 2022


	2023				2022
	Assets for remaining coverage	Assets for incurred claims			Assets for remaining coverage	Assets for incurred claims
EURm		Estimates of present value of future cash flows	Risk adjustment for non- financial risk	Total		Estimates of present value of future cash flows	Risk adjustment for non- financial risk	Total

Opening assets	221	1,384	215	1,820	251	1,523	232	2,007

Changes in the statement of comprehensive income
Allocation of reinsurance premiums paid	-1,005	—	—	-1,005	-894	—	—	-894

Amounts recoverable from reinsurers
Recoveries of incurred claims and other insurance service expenses	—	935	72	1,007	—	600	67	667
Adjustments to assets for incurred claims	—	-80	-70	-150	—	155	-73	82
Effect of changes in non-performance risk of reinsurers	—	—	—	—	—	—	—	—
Net expenses from reinsurance contracts	-1,005	855	2	-148	-894	756	-6	-144
Insurance finance income or expenses from reinsurance contracts	—	83	—	83	—	-90	—	-90
Effect of movements in exchange rates	-8	31	4	26	22	-85	-11	-75
Total changes in the statement of comprehensive income	-1,014	969	6	-39	-872	580	-17	-310

Cash flows
Premiums paid	1,051	—	—	1,051	842	—	—	842
Amounts received	—	-550	—	-550	—	-719	—	-719
Total cash flows	1,051	-550	—	501	842	-719	—	123
Closing assets	258	1,803	220	2,282	221	1,384	215	1,820

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	FINANCIAL STATEMENTS 2023	107

If - Insurance contract liabilities, gross at 31 December 2023 and 31 December 2022


	2023					2022
	Liabilities for remaining coverage		Liabilities for incurred claims			Liabilities for remaining coverage		Liabilities for incurred claims
EURm	Excluding loss component	Loss component	Estimates of present value of future cash flows	Risk adjustment for non- financial risk	Total	Excluding loss component	Loss component	Estimates of present value of future cash flows	Risk adjustment for non- financial risk	Total

Opening balance - liabilities relating to insurance contracts	868	7	5,655	162	6,693	873	25	6,230	172	7,301

Changes in the statement of comprehensive income
Insurance revenue	-5,330	—	—	—	-5,330	-5,322	—	—	—	-5,322

Insurance service expenses
Incurred claims and other insurance service expenses	—	—	3,924	58	3,981	—	—	3,570	52	3,621
Amortisation of insurance acquisition cash flows	100	—	—	—	100	102	—	—	—	102
Changes that relate to past service (LIC)	—	—	-184	-43	-228	—	—	118	-56	62
Changes that relate to future service (LRC)	—	10	—	—	10	—	-17	—	—	-17
Total insurance service expenses	100	10	3,739	14	3,863	102	-17	3,688	-4	3,769

Insurance service result	-5,230	10	3,739	14	-1,467	-5,220	-17	3,688	-4	-1,553

Insurance finance income or expense	—	—	340	—	340	—	—	-619	—	-619
Other items (including FX effects)	-191	—	57	-2	-135	211	-1	-333	-6	-130
Total changes in the statement of comprehensive income	-5,420	10	4,136	13	-1,261	-5,009	-18	2,735	-10	-2,302

Cash flows during the period
Premiums received	5,572	—	—	—	5,572	5,102	—	—	—	5,102
Claims and other insurance service expenses paid	—	—	-3,754	—	-3,754	—	—	-3,311	—	-3,311
Insurance acquisition cash flows paid	-108	—	—	—	-108	-98	—	—	—	-98
Total cash flows during the period	5,463	—	-3,754	—	1,710	5,004	—	-3,311	—	1,693
Transfer to other items in the balance sheet

Closing balance - liabilities relating to insurance contracts	911	17	6,038	175	7,141	868	7	5,655	162	6,693
Acquisition cash flow asset					-7					—
Closing balance - Insurance contract liabilities					7,134					6,693

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Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	108

If - Reinsurance contracts at 31 December 2023 and 31 December 2022


	2023				2022
	Assets for remaining coverage	Assets for incurred claims			Assets for remaining coverage	Assets for incurred claims
EURm		Estimates of present value of future cash flows	Risk adjustment for non- financial risk	Total		Estimates of present value of future cash flows	Risk adjustment for non- financial risk	Total

Opening assets	28	226	10	264	23	242	11	276

Changes in the statement of comprehensive income
Allocation of reinsurance premiums paid	-334	—	—	-334	-299	—	—	-298

Amounts recoverable from reinsurers
Recoveries of incurred claims and other insurance service expenses	—	339	10	348	—	84	3	87
Adjustments to assets for incurred claims	—	41	-3	38	—	34	-4	30
Effect of changes in non-performance risk of reinsurers	—	—	—	—	—	—	—	—
Net expenses from reinsurance contracts	-334	380	7	52	-299	118	-1	-181
Insurance finance income or expenses from reinsurance contracts	—	8	—	8	—	-9	—	-9
Effect of movements in exchange rates	-12	8	0	-4	13	-2	0	11
Total changes in the statement of comprehensive income	-346	396	7	57	-285	107	-1	-179

Cash flows
Premiums paid	354	—	—	354	291	—	—	291
Amounts received	—	-112	—	-112	0	-123	—	-123
Total cash flows	354	-112	—	242	291	-123	—	167
Closing assets	36	510	17	563	28	226	10	264

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Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	109

Topdanmark - Insurance contract liabilities, gross at 31 December 2023 and 31 December 2022


	2023					2022
	Liabilities for remaining coverage		Liabilities for incurred claims			Liabilities for remaining coverage		Liabilities for incurred claims
EURm	Excluding loss component	Loss component	Estimates of present value of future cash flows	Risk adjustment for non- financial risk	Total	Excluding loss component	Loss component	Estimates of present value of future cash flows	Risk adjustment for non- financial risk	Total

Opening balance - liabilities relating to insurance contracts	285	2	1,441	35	1,763	303	1	1,529	40	1,872

Changes in the statement of comprehensive income
Insurance revenue	-1,369	—	—	—	-1,369	-1,330	—	—	—	-1,330

Insurance service expenses
Incurred claims and other insurance service expenses	—	—	1,093	15	1,108	—	—	1,015	17	1,031
Amortisation of insurance acquisition cash flows	31	—	—	—	31	33	—	—	—	33
Changes that relate to past service (LIC)	—	—	-27	-16	-43	—	—	-25	-21	-46
Changes that relate to future service (LRC)	0	1	0	—	1	0	1	0	0	1
Total insurance service expenses	31	1	1,066	-1	1,097	33	1	989	-5	1,018

Insurance service result	-1,337	1	1,066	-1	-272	-1,298	1	989	-5	-312

Insurance finance income or expense	—	—	81	—	81	-1	—	-116	—	-117
Other items (including FX effects)	—	—	-5	1	-4	-1	—	—	—	—
Total changes in the statement of comprehensive income	-1,337	1	1,142	—	-194	-1,299	1	874	-5	-429

Cash flows during the period
Premiums received	1,336	—	—	—	1,336	1,314	—	—	—	1,314
Claims and other insurance service expenses paid	—	—	-1,038	—	-1,038	—	—	-961	—	-961
Insurance acquisition cash flows paid	-18	—	—	—	-18	-33	—	—	—	-33
Total cash flows during the period	1,318	—	-1,038	—	280	1,281	—	-961	—	320
Transfer to other items in the balance sheet	17	—	—	1	18	—	—	—	—	—

Closing balance - liabilities relating to insurance contracts	282	2	1,546	37	1,867	285	2	1,441	35	1,763
Acquisition cash flow asset					-12					—
Closing balance - liabilities relating to insurance contracts					1,855					1,763

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Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	110

Topdanmark - Reinsurance contracts at 31 December 2023 and 31 December 2022


	2023				2022
	Assets for remaining coverage	Assets for incurred claims			Assets for remaining coverage	Assets for incurred claims
EURm		Estimates of present value of future cash flows	Risk adjustment for non- financial risk	Total		Estimates of present value of future cash flows	Risk adjustment for non- financial risk	Total

Opening assets	-2	80	1	79	3	83	2	88

Changes in the statement of comprehensive income
Allocation of reinsurance premiums paid	-80	—	—	-80	-75	—	—	-75

Amounts recoverable from reinsurers
Recoveries of incurred claims and other insurance service expenses	—	49	—	49	—	44	—	44
Adjustments to assets for incurred claims	—	1	—	1	—	-5	—	-5
Effect of changes in non-performance risk of reinsurers	—	—	—	—	—	—	—	—
Net expenses from reinsurance contracts	-80	49	—	-31	-75	39	—	-37
Insurance finance income or expenses from reinsurance contracts	—	2	—	2	0	-2	—	-2
Effect of movements in exchange rates	—	—	—	0	0	0	—	0
Total changes in the statement of comprehensive income	-80	51	0	-29	-75	37	—	-39

Cash flows
Premiums paid	82	—	—	82	70	—	—	70
Amounts received	0	-54	0	-54	0	-39	—	-39
Total cash flows	82	-54	0	28	70	-39	—	30
Closing assets	-1	78	1	79	-2	80	1	79

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	FINANCIAL STATEMENTS 2023	111

Hastings - Insurance contract liabilities, gross at 31 December 2023 and 31 December 2022


	2023					2022
	Liabilities for remaining coverage		Liabilities for incurred claims			Liabilities for remaining coverage		Liabilities for incurred claims
EURm	Excluding loss componen t	Loss componen t	Estimates of present value of future cash flows	Risk adjustment for non- financial risk	Total	Excluding loss componen t	Loss componen t	Estimates of present value of future cash flows	Risk adjustment for non- financial risk	Total

Opening balance - liabilities relating to insurance contracts	347	5	1,835	247	2,434	328	3	1,927	265	2,522

Changes in the statement of profit or loss
Insurance revenue	-1,719	—	—	—	-1,719	-1,409	—	—	—	-1,409

Insurance service expenses
Incurred claims and other insurance service expenses	—	—	1,486	81	1,568	—	—	1,312	82	1,394
Amortisation of insurance acquisition cash flows	92	—	—	—	92	79	—	—	—	79
Changes that relate to past service (LIC)	—	—	-184	-86	-269	—	—	-163	-86	-250
Changes that relate to future service (LRC)	0	2	0	0	2	0	3	0	0	3
Total insurance service expenses	92	2	1,303	-4	1,391	79	3	1,149	-4	1,226

Insurance service result	-1,628	2	1,303	-4	-328	-1,331	3	1,149	-4	-183

Insurance finance income or expense	—	—	108	—	108	—	—	-91	—	-91
Other items (including FX effects)	6	—	39	5	50	34	—	-142	-14	-122
Total changes in the statement of profit or loss	-1,622	2	1,449	1	-170	-1,297	3	916	-18	-396

Cash flows during the period
Premiums received	1,877	—	—	—	1,877	1,393	—	—	—	1,393
Claims and other insurance service expenses paid	—	—	-1,320	—	-1,320	—	—	-1,008	—	-1,008
Insurance acquisition cash flows paid	-95	—	—	—	-95	-77	—	—	—	-77
Total cash flows during the period	1,782	—	-1,320	0	462	1,316	—	-1,008	—	308
Transfer to other items in the balance sheet	—	—	—	—	—	—	—	—	—	—

Closing balance - liabilities relating to insurance contracts	508	7	1,964	247	2,726	347	5	1,835	247	2,434
Closing balance - liabilities relating to insurance contracts					2,726					2,434

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	FINANCIAL STATEMENTS 2023	112

Hastings - Reinsurance contracts at 31 December 2023 and 31 December 2022


	2023				2022
	Assets for remaining coverage	Assets for incurred claims			Assets for remaining coverage	Assets for incurred claims
EURm		Estimates of present value of future cash flows	Risk adjustment for non- financial risk	Total		Estimates of present value of future cash flows	Risk adjustment for non- financial risk	Total

Opening assets	195	1,078	203	1,477	225	1,198	219	1,643

Changes in the statement of comprehensive income
Allocation of reinsurance premiums paid	-591	—	—	-591	-520	—	—	-520

Amounts recoverable from reinsurers
Recoveries of incurred claims and other insurance service expenses	—	548	62	610	—	473	64	537
Adjustments to assets for incurred claims	—	-121	-67	-188	—	126	-69	57
Effect of changes in non-performance risk of reinsurers	—	—	—	—	—	—	—	—
Net expenses from reinsurance contracts	-591	426	-5	-170	-520	599	-5	73
Insurance finance income or expenses from reinsurance contracts	—	73	—	73	—	-80	—	-80
Effect of movements in exchange rates	4	22	4	30	8	-83	-11	-86
Total changes in the statement of comprehensive income	-588	521	-1	-68	-512	436	-16	-92

Cash flows
Premiums paid	615	—	—	615	482	—	—	482
Amounts received	—	-384	—	-384	—	-556	—	-556
Total cash flows	615	-384	—	231	482	-556	—	-74
Closing assets	223	1,215	202	1,640	195	1,078	203	1,477

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	FINANCIAL STATEMENTS 2023	113

22 Assets for insurance acquisition cash flows

The table presents the reconciliation from opening to closing balances of the carrying

amount of the acquisition cash flow asset during the reporting periods.


EURm	2023
Reconciliation of acquisition cash flow asset
Opening balance	10
Cash flows recognised as an asset	36
Amounts transferred to liability for remaining coverage	-28
Closing balance	18

The table does not include Mandatum Group’s figures.

The following table presents the expected timing of when the acquisition cash flow

asset will be derecognised and instead be included in the liability for remaining

coverage of the group of insurance contracts to which they are allocated.

Time bands: Assets for insurance acquisition cash flows


2023	Expected timing of derecognition
EURm	2024	2025-2026	2027-2028	Total
Acquisition cash flow asset	12	4	2	18

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	FINANCIAL STATEMENTS 2023	114

23 Non-life claims development

Prior-year estimates of the claims expense for individual

claims years also represent a measure of Sampo

Group’s and its reporting segment’s ability to foresee

final claims expenses. The following tables present the

expense trend for the claims for individual claims in the

years before and after reinsurance. For accident years

2013 and earlier, the information is aggregated to one

row. Information is presented on Sampo Group level

and on the reporting segment level.

The upper part of the table shows how an estimate of

the total claims expense per accident year evolves

annually relating to the undiscounted fulfilment cash

flows (i.e. consisting of both best estimate and risk

adjustment). The lower section shows how large a share

of this is presented in the balance sheet. More

information on insurance liabilities is in the risk

management note 37.

Since Sampo Group’s group companies have operations

in various countries, their portfolios are exposed to a

number of currencies. To adjust for currency effects, the

local reporting currency has been translated to EUR at

the closing rate on 31 December 2023. Consequently,

the table is not directly comparable with the

corresponding tables reported in previous years, since

all accident years include translated information and

closing rates are used throughout. The table is not

directly comparable with the income statement either

where average rates throughout the year are applied,

and since the effect is partially presented in claims

incurred and partially within insurance finance income

or expense when relating to changes in indexation of

annuities.

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	FINANCIAL STATEMENTS 2023	115

Sampo Group - Claims development before reinsurance


EURm
Claims expense, gross Accident year	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	Total
Estimated claims expense
at the close of the claims year	3,838	3,928	4,072	4,192	4,424	4,667	4,748	4,914	5,451	6,412
one year later	3,837	3,995	4,131	4,188	4,508	4,683	4,692	5,006	5,480
two years later	3,851	3,970	4,086	4,178	4,547	4,729	4,687	4,912
three years later	3,857	3,937	4,052	4,177	4,583	4,717	4,615
four years later	3,868	3,899	3,950	4,152	4,562	4,674
five years later	3,793	3,858	3,992	4,127	4,505
six years later	3,735	3,853	3,967	4,102
seven years later	3,736	3,860	3,950
eight years later	3,732	3,827
nine years later	3,708
ten years later

Current estimate of total claims expense	3,708	3,827	3,950	4,102	4,505	4,674	4,615	4,912	5,480	6,412
Total disbursed	3,516	3,612	3,671	3,801	4,095	4,117	3,889	3,831	3,907	3,017
Liability (gross) reported in the balance sheet	192	215	279	301	410	558	725	1,081	1,572	3,394	8,727

Liability (gross) relating to 2013 and prior years											2,933

Discounting effect, gross											-2,034
Liability for claims handling expenses and other items											380
Total liability for incurred claims											10,007

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	FINANCIAL STATEMENTS 2023	116

Sampo Group - Claims development after reinsurance


EURm
Claims expense, net of reinsurance Accident year	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	Total
Estimated claims expense
at the close of the claims year	3,509	3,544	3,515	3,597	3,805	4,002	3,999	4,089	4,657	5,287
one year later	3,508	3,571	3,527	3,620	3,866	3,998	3,916	4,094	4,675
two years later	3,501	3,546	3,511	3,603	3,907	4,023	3,901	4,038
three years later	3,509	3,532	3,474	3,617	3,950	4,053	3,875
four years later	3,494	3,485	3,445	3,601	3,948	4,033
five years later	3,434	3,472	3,462	3,610	3,911
six years later	3,393	3,463	3,462	3,584
seven years later	3,392	3,480	3,431
eight years later	3,396	3,453
nine years later	3,371
ten years later

Current estimate of total claims expense	3,371	3,453	3,431	3,584	3,911	4,033	3,875	4,038	4,675	5,287
Total disbursed	3,187	3,250	3,224	3,341	3,564	3,614	3,348	3,310	3,519	2,823
Liability (net) reported in the balance sheet	184	203	206	243	347	419	528	728	1,156	2,464	6,478

Liability (net) relating to 2013 and prior years											2,768

Discounting effect, gross											-1,626
Liability for claims handling expenses											349
Risk of non-performance by reinsurer											15
Total liability for incurred claims											7,983

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	FINANCIAL STATEMENTS 2023	117

If - Claims development before reinsurance


EURm
Claims expense, gross Accident year	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	Total
Estimated claims expense
at the close of the claims year	2,580	2,583	2,534	2,608	2,743	2,869	3,005	2,991	3,293	3,945
one year later	2,568	2,597	2,565	2,645	2,836	2,912	3,043	3,128	3,383
two years later	2,573	2,581	2,559	2,631	2,864	2,926	3,083	3,099
three years later	2,585	2,555	2,515	2,634	2,881	2,969	3,048
four years later	2,588	2,523	2,502	2,605	2,897	2,959
five years later	2,552	2,517	2,511	2,613	2,865
six years later	2,522	2,501	2,515	2,587
seven years later	2,511	2,510	2,484
eight years later	2,508	2,490
nine years later	2,488
ten years later

Current estimate of total claims expense	2,488	2,490	2,484	2,587	2,865	2,959	3,048	3,099	3,383	3,945
Total disbursed	2,345	2,330	2,306	2,397	2,601	2,659	2,682	2,591	2,577	1,905
Liability (gross) reported in the balance sheet	144	160	178	190	264	300	367	508	807	2,040	4,958

Liability (gross) relating to 2013 and prior years											2,474

Discounting effect, gross											-1,471
Liability for claims handling expenses											252
Total liability for incurred claims											6,213

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	FINANCIAL STATEMENTS 2023	118

If - Claims development after reinsurance


EURm
Claims expense, net of reinsurance Accident year	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	Total
Estimated claims expense
at the close of the claims year	2,544	2,542	2,481	2,553	2,693	2,810	2,829	2,868	3,205	3,571
one year later	2,529	2,553	2,491	2,594	2,768	2,842	2,848	2,973	3,270
two years later	2,520	2,534	2,484	2,576	2,796	2,853	2,889	2,926
three years later	2,532	2,516	2,447	2,579	2,814	2,898	2,857
four years later	2,530	2,483	2,434	2,550	2,827	2,891
five years later	2,492	2,476	2,439	2,569	2,796
six years later	2,462	2,461	2,443	2,543
seven years later	2,451	2,471	2,412
eight years later	2,449	2,451
nine years later	2,429
ten years later

Current estimate of total claims expense	2,429	2,451	2,412	2,543	2,796	2,891	2,857	2,926	3,270	3,571
Total disbursed	2,287	2,294	2,253	2,360	2,537	2,599	2,501	2,453	2,527	1,916
Liability (net) reported in the balance sheet	141	157	159	183	259	291	356	473	743	1,655	4,417

Liability (net) relating to 2013 and prior years											2,460

Discounting effect, gross											-1,445
Liability for claims handling expenses											239
Risk of non-performance by reinsurer											15
Total liability for incurred claims											5,686

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	FINANCIAL STATEMENTS 2023	119

Topdanmark - Claims development before reinsurance


EURm
Claims expense, gross Accident year	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	Total
Estimated claims expense
at the close of the claims year	839	827	800	728	787	790	820	843	883	974
one year later	849	836	800	744	799	810	802	835	876
two years later	841	821	786	735	807	816	780	844
three years later	833	819	774	744	815	817	793
four years later	815	813	757	737	813	815
five years later	795	793	760	735	816
six years later	783	788	755	741
seven years later	782	795	757
eight years later	788	789
nine years later	784
ten years later

Current estimate of total claims expense	784	789	757	741	816	815	793	844	876	974
Total disbursed	743	746	717	686	738	725	681	681	638	484
Liability (gross) reported in the balance sheet	42	44	40	55	79	90	112	163	238	490	1,351

Liability (gross) relating to 2013 and prior years											303

Discounting effect, gross											-119
Other items											48
Total liability for incurred claims											1,583

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	FINANCIAL STATEMENTS 2023	120

Topdanmark - Claims development after reinsurance


EURm
Claims expense, net of reinsurance Accident year	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	Total
Estimated claims expense
at the close of the claims year	791	776	742	703	735	757	782	785	837	923
one year later	798	784	746	716	746	774	764	777	830
two years later	792	770	731	708	754	780	744	785
three years later	784	768	720	717	762	781	758
four years later	766	756	702	711	759	779
five years later	745	747	701	708	763
six years later	733	742	698	715
seven years later	736	751	701
eight years later	742	745
nine years later	738
ten years later

Current estimate of total claims expense	738	745	701	715	763	779	758	785	830	923
Total disbursed	697	701	662	660	686	691	648	633	604	466
Liability (net) reported in the balance sheet	41	44	38	55	77	88	109	152	226	457	1,288

Liability (net) relating to 2013 and prior years											301

Discounting effect, gross											-117
Liability for claims handling expenses											30
Total liability for incurred claims											1,503

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	FINANCIAL STATEMENTS 2023	121

Hastings - Claims development before reinsurance


EURm
Claims expense, gross Accident year	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	Total
Estimated claims expense
at the close of the claims year	419	518	738	857	893	1,008	923	1,079	1,275	1,493
one year later	420	562	765	800	873	962	847	1,043	1,221
two years later	437	568	741	812	876	988	825	969
three years later	439	563	763	799	887	931	773
four years later	465	562	691	810	852	900
five years later	445	548	721	780	824
six years later	430	564	697	774
seven years later	443	555	710
eight years later	436	547
nine years later	435
ten years later

Current estimate of total claims expense	435	547	710	774	824	900	773	969	1,221	1,493
Total disbursed	428	536	649	717	757	732	526	559	693	629
Liability (gross) reported in the balance sheet	7	11	61	56	67	167	247	410	528	864	2,418

Liability (gross) relating to 2013 and prior years											156

Discounting effect, gross											-443
Liability for claims handling expenses											80
Total liability for incurred claims											2,211

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	FINANCIAL STATEMENTS 2023	122

Hastings - Claims development after reinsurance


EURm
Claims expense, net of reinsurance Accident year	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	Total
Estimated claims expense
at the close of the claims year	175	225	292	341	377	436	388	436	614	794
one year later	181	234	290	310	351	382	303	345	575
two years later	189	241	296	320	357	391	267	327
three years later	193	248	307	321	374	374	260
four years later	197	247	309	339	362	364
five years later	197	250	323	333	353
six years later	197	261	321	327
seven years later	205	259	318
eight years later	205	258
nine years later	204
ten years later

Current estimate of total claims expense	204	258	318	327	353	364	260	327	575	794
Total disbursed	203	256	309	322	342	324	198	224	388	441
Liability (net) reported in the balance sheet	1	2	9	5	11	39	62	103	187	353	772

Liability (net) relating to 2013 and prior years											6

Discounting effect, gross											-64
Liability for claims handling expenses											80
Total liability for incurred claims											794

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	FINANCIAL STATEMENTS 2023	123

24 Financial liabilities


EURm	12/2023	12/2022

Subordinated debt liabilities
Subordinated loans	1,645	1,983
Total subordinated debt liabilities	1,645	1,983

Other financial liabilities

Derivative financial instruments	116	55

Financial liabilities measured at amortised cost
Debt securities in issue	959	1,306
Amounts owed to credit institutions	194	96
Total financial liabilities measured at amortised cost	1,153	1,402

Total other financial liabilities	1,269	1,457

Total financial liabilities	2,914	3,439

The comparative period includes Mandatum Group’s figures. For further information, please see

note 32.

The segment financial liabilities include subordinated debts, derivatives, debt securities

in issue, and other financial liabilities.


EURm			12/2023	12/2022

Subordinated debt securities
Subordinated loans	Maturity	Interest
Subordinated loan, 2021 (nominal value SEKm 1,500)	30 years	3 month Stibor + 1.30%	135	134
Subordinated loan, 2018 (nominal value SEKm 1,000)	perpetual	3 month Stibor + 2.75%	-	90
Total subordinated debt securities			135	224

Other financial liabilities
Derivative financial instruments			58	7

Total financial liabilities			193	231

The loan of 2018 was issued with floating interest rate terms. The loan included terms

stating the right of redemption after five years and at any interest payment date

thereafter. The loan was redeemed in March 2023.

The loan of 2021 was issued with floating interest rate terms. The loan includes terms

stating the right of redemption after five years, at any date for a three-month period

after the first five years and thereafter at any interest payment date. The loan is listed

on the Luxembourg Stock Exchange (BdL Market).

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	FINANCIAL STATEMENTS 2023	124

Topdanmark


EURm			12/2023	12/2022

Subordinated debt securities
Subordinated loans	Maturity	Interest
Subordinated loan tier 1, 2022 (nominal value DKKm 400)	perpetual	3 month Cibor + 4.75 %	54	54
Subordinated loan, 2021 (nominal value DKKm 700)	12/2031	3 month Cibor + 1.25 %	94	94
Total subordinated debt securities			148	148

Other financial liabilities
Derivative financial instruments			36	32
Amounts owed to credit institutions			9	23

Total financial liabilities			193	203

Subordinated loans are wholly included in Topdanmark’s own funds. Approximately

EUR 127 million (128) (DKK 950 million) of the subordinated loans are subscribed by If.

Hastings


EURm	12/2023	12/2022

Other financial liabilities
Amounts owed to credit institutions	184	73

Total financial liabilities	186	73

Hastings has a revolving credit facility with a financial institution totalling EUR 98

million, of which EUR 56 million was undrawn at the end of the reporting period. The

revolving credit facility matures on 23 November 2024, after which the contract has an

extension option of one more year. Hastings has an undrawn credit facility also with

Sampo plc totalling EUR 86 million with a maturity date of 29 October 2026.

Mandatum

Table presents Mandatum segment’s financial liabilities for the comparative period

2022.


EURm			12/2022

Subordinated debt securities
Subordinated loans	Maturity	Interest
Subordinated loan, 2019 (nominal value EURm 250)	30 years	12 month Euribor + 4.5 %	250
Subordinated loan, 2002 (nominal value EURm 100)	perpetual	—	100
Total subordinated debt securities			350

Other financial liabilities
Derivative financial instruments			3

Total financial liabilities			352

Mandatum Life issued in 2002 EUR 100 million Capital Notes, which were wholly

subscribed by Sampo plc. At the time of the partial demerger, with the consent of the

Financial Supervisory Authority, Mandatum redeemed the loan.

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	FINANCIAL STATEMENTS 2023	125

Holding


EURm			12/2023	12/2022

Subordinated debt securities
Subordinated loans	Maturity	Interest
Subordinated loan, 2020 (nominal value EURm 1,000)	32 years	2.50 %	993	993
Subordinated loan, 2019 (nominal value EURm 500)	30 years	3.38 %	496	496
Total subordinated debt securities			1,490	1,489

Other financial liabilities
Derivative financial instruments			20	14
Debt securities in issue	Maturity	Interest
Bond 2016, (nominal value EURm 750)	7 years	1.00 %	—	318
Bond 2017, (nominal value EURm 500)	8 years	1.25 %	162	161
Bond 2018, (nominal value EURm 500)	10 years	1.625 %	311	311
Bond 2018, (nominal value EURm 500)	12 years	2.25 %	395	400
Bond 2018, (nominal value NOKm 1,000)	10 years	3.10 %	89	95
Other			2	21
Total bonds			959	1,306

Total financial liabilities			2,469	2,808

The subordinated loan of 2019 has a fixed interest rate for the first ten years, and the

2020 loan for the first 12 years. After that, the loans become subject to a variable

interest rate but they also include terms stating the right of redemption at this point in

time or at any interest payment date thereafter. The loans are listed on the London

Stock Exchange.

The determination and hierarchy of fair values of financial assets and liabilities

measured at acquisition cost is disclosed in note 15. According to this determination,

the subordinated debt securities and bonds are categorised either on level 1 or 2.

Eliminations between segments


EURm	12/2023	12/2022

Eliminations between segments	-127	-228

Group financial liabilities total	2,914	3,439

Change in liabilities from financing activities


EURm	1 January 2023	Incoming cash flows	Outgoing cash flows	Exchange differences	Other	31 December 2023
Subordinated debt	1,983	—	-87	-3	-248	1,645
Bonds	1,306	—	-340	-7	—	959
Other loans	96	143	-46	2	—	194
Total	3,384	143	-473	-8	-248	2,798


EURm	1 January 2022	Incoming cash flows	Outgoing cash flows	Exchange differences	Other	31 December 2022
Subordinated debt	2,016	54	-69	-19	2	1,983
Bonds	2,200	—	-859	-10	-25	1,306
Other loans	43	69	-13	-3	—	96
Total	4,259	122	-942	-32	-24	3,384

Item Other for the reporting period 2023 is mainly related to the separation of

Mandatum.

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	FINANCIAL STATEMENTS 2023	126

25 Other liabilities


EURm	12/2023	12/2022

Liabilities arising out of direct insurance operations	227	252
Liabilities arising out of reinsurance operations	69	10
Settlement liabilities	5	61
Provisions	6	6
Interests	29	9
Tax liabilities	2	20
Lease liabilities	160	197
Employee benefit liability	21	—
Prepayments and accrued income	241	287
Other	581	776
Total other liabilities	1,342	1,617

Item Other includes, e.g. premium taxes EUR 164 million (176), other tax liabilities,

employee withholding taxes, and liabilities related with patient insurance pool.

In the provisions, EUR 3 million (3) of the provision consist of funds reserved for

futures expenses for previously implemented or planned development of efficient

administrative, and claims adjustment processes and structural changes in distribution

channels, resulting in organisational changes that affect all business areas. In addition,

the item includes a provision of approximately EUR 4 million (3) for lawsuits and other

uncertain liabilities.

The non-current share of other liabilities is EUR 82 million (95).

Leases

The total effect of leases on the statement of cash flows was EUR -33 million (-15).

Non-cash flow additions from IFRS 16 leases to the balance sheet items were EUR 15

million (32).


EURm	1-12/2023	1-12/2022

Items recognised in the p/l from lease liabilities
Interest expenses	-2	-3
Expenses from short-term and low-value lease liabilities	-4	-7

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	FINANCIAL STATEMENTS 2023	127

26 Employee benefits

Sampo Group’s subsidiary If had defined benefit plans in Sweden and Norway during

the financial year 2023.

If applies IAS 19 Employee Benefits and recognizes defined-benefit pension plans in

Sweden and Norway. Other pension plans existing in the Group have either been

classified as defined-contribution plans or have been classified as defined-benefit

plans, but recognized as defined-contribution plans. This occurs because If lacks the

information necessary to recognize them as defined-benefit plans or they have been

deemed as insignificant.

For the defined-contribution pension plans, If pays fixed contributions and has no

further payment obligations once the contributions have been paid. The pension

expense for the defined-contribution plans is equal to the premiums paid by If for the

fiscal year.

Employee benefit obligations of If


EURm	2023	2022

Defined benefit pension obligations, including social costs	209	210
Fair value of plan assets	220	220
Net liability (asset) recognised in the balance sheet	-11	-9
of which recognised as Net pension assets in Other assets	32	34
of which recognised as Net pension liabilities in Other liabilities	21	25

The Swedish defined-benefit pension plan, FTP2, is a multiemployer plan and is closed

to new employees born in 1972 or later. In Norway, there are a few smaller pension

plans, mainly unfunded pension plans, for which If is responsible for ongoing payments.

These include an early retirement plan, covering all employees born in 1957 or earlier

and who were employed by If in 2013, as well as a small number of pension obligations

on salary above 12G or individual pension agreements.

A common feature of the defined-benefit plans is that the employees and survivors

encompassed by the plans are entitled to a guaranteed pension that depends on the

employees’ service period and pensionable salary at the time of retirement. The

dominating benefit is the old-age pension, referring to a life-long pension after the

anticipated retirement age.

The anticipated retirement age for Sweden in connection with life-long pension is 65

years. Life-long old-age pension following a complete service period is payable at a

rate of 10% of the pensionable salary between 0 and 7.5 income base amounts, 65% of

salary between 7.5 and 20 income base amounts and 32.5% between 20 and 30

income base amounts. Paid-up policies and pension payments from the Swedish plans

are normally indexed annually with an amount corresponding to the change in the

consumer price index. However, there is no agreement guaranteeing the value and

future supplements, in addition to the contractual pension benefit, which could either

rise or fall.

The pensions in Sweden are primarily funded through insurance whereby the insurer

establishes the premiums and disburse the benefits. If’s obligation is primarily fulfilled

through payment of the premiums. Should the assets that are attributable to the

pension benefits not be sufficient to enable the insurer to cover the guaranteed

pension benefits, If could be forced to pay supplementary insurance premiums or

secure the pension obligations in some other way. However, given the insurer’s high

consolidation ratio, the risk that If will be forced to take any such action is low.

To cover the insured pension benefits in Sweden, as well as for a small plan in Norway,

the related capital is managed as part of the insurers’ management portfolios. New and

existing asset categories are evaluated on an ongoing basis, in order to diversify the

asset portfolios with a view to optimize the anticipated risk-adjusted return. Any

surplus that arises from management of the assets normally accrues to If and/or the

insured and there is no form of transfer of the asset value to other members of the

insurance collective.

The insurers and If are jointly responsible for monitoring the pension plans, including

investment decisions and contributions. The pension plans are essentially exposed to

similar material risks regarding the final amount of the benefits, longevity, the

investment risk associated with the plan assets, and the fact that the choice of

discount interest rate affects the valuation in the financial statements.

When applying IAS 19, the pension obligation and the pension cost attributed to the

fiscal period are calculated annually, using the Projected Unit Credit method. The

calculation of the defined benefit obligation is based on future expected pension

payments and includes yearly updated actuarial assumptions such as salary growth,

inflation, mortality and employee turnover. The expected pension payments are then

discounted to a present value, using a discount rate set with reference to AAA and AA

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	FINANCIAL STATEMENTS 2023	128

corporate bonds issued in local currency, including mortgage-backed bonds, as of

mid- December. The discount rates chosen in Sweden and Norway take into account

the duration of the company’s pension obligations in each respective country. After a

deduction for the plan assets, a net asset or a net liability is recognized in the balance

sheet.

The following tables contain a number of material assumptions, specifications of

pension costs, assets and liabilities, and a sensitivity analysis showing the potential

effect on the obligations of reasonable changes in those assumptions, as of the end of

the fiscal year.

The carrying amounts have been stated, including special payroll tax in Sweden

(24.26%) and a corresponding fee in Norway (14.1%-19.1%).

During 2022, the main defined benefit plan in Norway was closed for accounting

purposes, as only a few individuals remain in the plan, as well as two small plans in

Sweden. This has been reported as a settlement under IAS 19 as of December 31 2022.

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	FINANCIAL STATEMENTS 2023	129

Specification of employee benefit obligations by country


	2023			2022
EURm	Sweden	Norway	Total	Sweden	Norway	Total
Recognised in income statement and other comprehensive income
Current service cost	3	0	3	4	0	4
Past service cost and settlements	—	—	—	0	1	1
Total defined benefit pensions costs in insurance service result	3	0	3	4	1	5
Interest expense on net pension liability	-1	1	-1	0	0	0
Remeasurement of the net pension liability	6	0	6	-31	-2	-32
Total net cost (income) in comprehensive income statement	8	1	8	-26	0	-27

Recognised in balance sheet
Defined benefit pension obligations, including social costs	186	23	209	184	27	210
Fair value of plan assets	218	2	220	218	2	220
Net liability (net assets) recognised in balance sheet	-32	21	-11	-34	25	-9

Distribution by asset class

Bonds	42%	—		42%	—
Equities	20%	—		20%	—
Properties	10%	—		10%	—
Other	28%	—		28%	—

The following actuarial assumptions have been used for the calculation of defined benefit pension plans in Norway and Sweden:


	Sweden	Sweden	Norway	Norway
	31 Dec 2023	31 Dec 2022	31 Dec 2023	31 Dec 2022
Discount rate	3.50%	3.50%	3.75%	3.25%
Future salary increases	3.00%	2.75%	3.25%	3.00%
Price inflation	2.00%	2.00%	2.25%	2.00%
Mortality table	DUS23	DUS21	K2013	K2013
Average duration of pension liabilities	17 years	18 years	11 years	10 years
Expected contributions to the defined benefit plans during 2023 and 2022	6	6	-	-

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	FINANCIAL STATEMENTS 2023	130


	2023			2022
Sensitivity analysis of effect of reasonably possible changes	Sweden	Norway	Total	Sweden	Norway	Total
Discount rate, +0.50%	-15	-1	-15	-15	-1	-16
Discount rate, -0.50%	16	1	17	17	1	18
Future salary increases, +0.25%	4	0	4	4	0	4
Future salary increases, -0.25%	-3	0	-3	-3	0	-3
Expected longevity, +1 year	6	1	6	6	1	7


	2023			2022
EURm	Funded plans	Unfunded plans	Total	Funded plans	Unfunded plans	Total
Distribution of obligations on funded and unfunded plans
Defined benefit pension obligations, including social costs	188	20	209	186	24	210
Fair value of plan assets	220	—	220	220	—	220
Net pension liability (net assets) recognised in the balance sheet	-31	20	-11	-34	24	-9

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	FINANCIAL STATEMENTS 2023	131

Analysis of the change in net liability recognised in the

balance sheet


EURm	2023	2022

Pension liabilities
At the beginning of the year	204	288
Current cost	3	4
Interest cost	7	5
Actuarial gains (-) / losses (+) on financial assumptions	—	-66
Actuarial gains (-) / losses (+) on demographic assumptions	0	-6
Actuarial gains (-) / losses (+), experience adjustments	-3	25
Exchange differences on foreign plans	-1	-19
Benefits paid	-7	-20
Settlements	—	-7
Defined benefit pension obligations on Dec 31, excl. social security costs	203	204
Social security costs	6	7
Defined benefit plans on Dec 31, incl. social security costs	209	210

Reconciliation of plan assets
At the beginning of the year	220	268
Interest income	7	5
Difference between actual return and calculated interest income	-9	-16
Contributions paid	5	10
Exchange differences on foreign plans	0	-19
Benefits paid	-4	-20
Settlements	—	-7
Plan assets at 31 December	220	220

Other short-term employee benefits

There are other short-term employee incentive programmes in the Group, the terms of

which vary according to country, business area or company. Benefits are recognised in

the profit or loss for the year they arise. An estimated amount of these short-term

incentives, social security costs included, for 2023 is EUR 62 million.

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	FINANCIAL STATEMENTS 2023	132

27 Equity and reserves

Equity (1,000 shares)


	12/2023	12/2022

Equity (1,000 shares)	501,797	514,369

The shares are divided into A and B classes, with the number of A shares being

179,000,000 at minimum and 711,200,000 at maximum, and the number of B shares

being 0 at minimum and 4,800,000 at maximum. Each A share entitles its holder to

one vote and each B share entitles its holder to five votes at a General Meeting of

Shareholders. The shares have no nominal value.

At the end of the financial year 2023, the number of A shares amounted to 501,596,752

and B shares to 200,000 shares.

Treasury shares (1,000 shares)


	12/2023	12/2022

Own shares held by Sampo plc (1,000 shares)	—	2,141

Reserves and retained earnings

Legal reserve

The legal reserve comprises the amounts to be transferred from the distributable

equity, according to the Articles of Association or on the basis of the decision of the

AGM.

Invested unrestricted equity

The reserve includes other investments of equity nature, as well as the issue price of

shares to the extent it is not recorded in the share capital by an express decision.

Other components of equity

Other components of equity include derivatives used in cash flow hedges and

exchange differences. In the comparison year, fair value changes of financial assets

available for sale were also included in other components of equity.

Changes in the reserves and retained earnings are presented in the Group’s statement

of changes in equity.

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	FINANCIAL STATEMENTS 2023	133

28 Incentive schemes

Long-term incentive schemes 2017 I–2020 I

The Board of Directors of Sampo plc has decided on the long-term incentive schemes

2017:1 and 2020:1 for the key employees of Sampo Group. The Board of Directors of

Sampo plc has authorised the Group CEO to decide on the allocation of incentive units,

which are used to determine the incentive reward. The Board decides on the number

of incentive units allocated to the Group CEO and the Group Executive Committee

members. Some 90 persons in Sampo plc and If were included in the long-term

incentive schemes at the end of 2023.

The amount of the incentive reward is based on the share price development of the

Sampo A share and Sampo Group’s return on capital at risk (RoCaR). In addition, in

accordance with the terms updated in September 2023, the amount of the incentive

paid in 2024 is partly based on the share price development of Mandatum plc. The

value of one calculated incentive unit is the trade-weighted average price of the

Sampo A share (and for rewards paid in 2024 Mandatum share price) at the time

period specified in the terms of the incentive scheme, reduced by the dividend-

adjusted starting price. The starting price of the incentive schemes varies between

EUR 32.94–44.74. The maximum value of one incentive unit varies between EUR

56.94–68.74. In the 2020:1 incentive scheme, the calculation of the incentive reward

furthermore takes into account the RoCaR. If the RoCaR is at least risk-free return + 5

per cent, the reward is paid out in full. If the RoCaR is at least risk-free return + 3 per

cent but less than risk-free return + 5 per cent, the payout is 50 per cent. If the RoCaR

is below risk-free return + 3 per cent, no incentive reward will be paid.

Each plan has three performance periods and incentive rewards are paid in cash in

three instalments. Identified staff shall buy Sampo A shares with 50 per cent of the

amount of the instalment after deducting income tax and other comparable charges.

The shares are subject to disposal restrictions for three years from the date when the

instalment was paid. A premature payment of the incentive reward may occur in the

event of changes in the group structure. The fair value of the incentive schemes is

estimated by using the Black-Scholes pricing model.


		2017:I/2	2020:I	2020:I/2	2020:I/3

Terms approved*		14 Sep 2017	5 Aug 2020	5 Aug 2020	5 Aug 2020
Granted (1,000) 31 Dec 2020		85	3,877	—	—
Granted (1,000) 31 Dec 2021		60	3,815	220	—
Granted (1,000) 31 Dec 2022		30	3,805	220	208
Granted (1,000) 31 Dec 2023**		—	2,124	170	158

End of performance period I 30%		Q2-2021	Q2-2023	Q2-2024	Q2-2025
End of performance period II 35%		Q2-2022	Q2-2024	Q2-2025	Q2-2026
End of performance period III 35%		Q2-2023	Q2-2025	Q2-2026	Q2-2027
Payment I 30%		09/2021	09/2023	09/2024	09/2025
Payment II 35%		09/2022	09/2024	09/2025	09/2026
Payment III 35%		09/2023	09/2025	09/2026	09/2027

Price of Sampo A at terms approval date EUR*		44.02	30.30	30.30	30.30
Starting price EUR***		44.10	32.94	43.49	44.74
Dividend-adjusted starting price EUR at 31 December 2023		—	24.54	36.79	42.14

Sampo A closing price EUR at 31 December 2023	39.61
Mandatum closing price EUR at 31 December 2023	4.07

Total intrinsic value, EURm			31	1	—

Total debt	32
Total cost for the financial period, EURm (incl. social cost)	10

* Grant dates vary

** Without Mandatum

** In the 2017:1 incentive scheme, the trade-weighted average price of the Sampo A share during

ten trading days from the adoption of the scheme and in the 2020:1 incentive scheme, the trade-

weighted average price of the Sampo A share during twenty-five trading days commencing the

day after Sampo plc’s publication of its Half-Year Financial Report in 2020.

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	FINANCIAL STATEMENTS 2023	134

Long-term incentive scheme of Topdanmark

Topdanmark’s long-term option-based scheme is for its Executive Board and senior

executives. The strike price has been fixed at 110% of the market price on the last

trading date in the prior financial year (average of all trades). The options may be

exercised 3-5 years subsequent to the granting. The scheme is settled by shares.

The only earnings conditions to the option scheme requires employment during the

whole year of the allocation. Options are allocated at the beginning of the year and, in

connection with resignations in the year of allocation, a proportional deduction in the

number of allocated options is made.

The tables below show option holder’s standing at the year end.


	Strike price	Executive board	Senior executives	Resigned	Total

Total number of options (1,000)

At 1 January 2023	38	85	425	470	981
Granted	54	25	101	—	126
Transferred	—	—	-56	56	—
Exercised	30	-12	-73	-131	-216
Forfeited	46	—	—	-16	-16
At 31 December 2023	167	98	397	379	874

At 1 January 2022	36	108	765	249	1,121
Granted	54	38	180	—	218
Transferred	—	-53	-414	467	—
Exercised	28	-8	-105	-239	-352
Forfeited	37	—	—	-7	-7
At 31 December 2022	155	85	425	470	981

Per granting
2019, exercise period January 2022–2024	30	6	31	72	108
2020, exercise period January 2023–2025	36	17	72	103	192
2021, exercise period January 2024–2026	28	23	100	122	245
2022, exercise period January 2025–2027	45	27	104	75	206
2023, exercise period January 2026–2028	50	25	90	7	122


	Executive board	Senior executives	Resigned	Total
Average market price on date of exercise 2023	47
Fair value of granting 2023	—	1	—	1
Fair value at 31 December 2023	1	3	4	8

Board of Directors’

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Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	135

The fair value of the granting for the year has been calculated using the Black and

Scholes model, assuming a share price of EUR 49 (49). The interest rate corresponds

to the zero-coupon rate based on the swap curve on 31 December of the previous

year. Future volatility is assumed to be 22 per cent (22) p.a and the average life of the

options approximately 4 years. The volatility based on previous years’ volatility is still

management’s best estimate of the future volatility. The strike prices are adjusted by

dividend distribution for outstanding options.

On 31 December 2023, there were 300,000 options (290,000), which could be

exercised.

Long-term incentive scheme of Hastings

The total charge for the share-based payments recognised in the profit or loss during

2023 was EUR 7 million (2) with a share-based payment liability of EUR 8 million (15)

held at 31 December 2023.

Long term incentive plan

Certain management personnel of Hastings Group participate in the Group’s Long

Term Incentive Plan (’LTIP’), which is a cash settled scheme. Vesting is subject to a

three-year service period and the achievement of certain performance conditions. The

performance conditions for the LTIP are profit before tax and live customer policies.

Cash awards totalling EUR 13 million (12) were granted in 2023 and EUR 6 million (2) of

cash awards were forfeited. The expected life is the contractual life of the award

adjusted to reflect management’s best estimate of holder behaviour. There were cash

awards with a value of EUR 32 million (38) outstanding on 31 December 2023.

Restricted stock awards

Restricted Stock Awards are whereby certain individuals are granted cash awards

conditional upon their continued employment with the Group. The expected life is the

contractual life of the award adjusted to reflect management’s best estimate of holder

behaviour. During 2023, certain key management personnel were granted cash awards

with a value of EUR 0.7 million (0.5) conditional upon continued employment within

the Group. There were cash awards with a value of EUR 0.9 million (0.8) outstanding at

31 December 2023.

Capital appreciation plan

At the year end, 31 December 2021, certain key management personnel were invited to

participate in the Hastings Group’s Capital Appreciation Plan (’CAP’), under which they

may be awarded up to five free B Ordinary Shares in HGCL, for every B Ordinary Share

they purchase, subject to performance thresholds, based upon total shareholder return

(’TSR’). The total number of B Ordinary Shares purchased and allotted under the

scheme in 2023 was zero (-). Potential matching awards of B Ordinary Shares have the

potential to vest in two tranches, with 50% being conditional upon a TSR measured

over a four-year period, and 50% being conditional upon TSR measured over a five-

year period, with the number of awards dependent upon the level of return between a

minimum and maximum target. At the end of each performance period, one half of

shares will vest immediately, and one half will be deferred for 12 months before

becoming exercisable. The vesting is dependent on continuing service by the

participant over the period of any deferment, ranging from three to six years.

The TSR measure for these awards is calculated using the Monte Carlo valuation

model. The fair value of the matching shares was EUR 4 million, or approximately EUR

4 per matching share.

Board of Directors’

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Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	136

29 Investments in subsidiaries


Name	Group holding %	Carrying amount
If P&C Insurance Holding Ltd	100	1,886
If P&C Insurance Ltd	100	1,488
If P&C Insurance AS	100	40
Vertikal Helseassistanse AS	100	31
Viking Assistance Group AS	100	83
Topdanmark A/S*	49.6	1,488
Topdanmark Forsikring A/S	49.6	559
Topdanmark EDB A/S	49.6	40
Topdanmark BidCo A/S**	48.4	265
Oona Health A/S	48.4	31
Forsikringsselskabet Dansk Sundhedssikring A/S	48.4	38
Daytona Midco Ltd**	48.4	249
Daytona Acquisitions Ltd	48.4	249
Hastings Group (Consolidated) Ltd	100	2,611
Hastings Group Holdings Limited	100	1,961
Hastings Group (Finance) plc	100	1,058
Hastings Group Limited	100	348
Advantage Global Holdings Limited	100	270
Hastings (Holdings) Limited	100	23

* The Group’s ownership of votes.

** Topdanmark BidCo A/S and Daytona Midco Ltd are related to the acquisition of Oona Health A/S.

The table excludes dormant companies in Great Britain as well as property and housing companies

accounted for in the consolidated accounts, and other companies that are insignificant to the

consolidated financial statements.

Changes in the subsidiary shares in 2023

Topdanmark A/S acquired 100% of the shares of Oona Health A/S on 1 December

2023.

Sampo plc made an additional investment of approximately EUR 14 million in

Topdanmark A/S in the third quarter of 2023.

Mandatum Group was separated from the Group due to a partial demerger in October

2023.

Board of Directors’

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Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	137

30 Material partly-owned subsidiaries


		Equity interest held by non-controlling interests
Subsidiary	Country	2023	2022
Topdanmark A/S	Denmark	50.4	50.7

Accumulated balances of material non- controlling interests
Topdanmark A/S		424	560

The summarised financial information

Amounts before the separation of non-controlling interests can be seen in the Group’s

segment income statement and balance sheet.

Non-controlling interests’ share of the income statement


EURm	2023	2022
Insurance revenue	690	674
Insurance service expenses	-577	-541
Reinsurance result	-15	-19
Insurance service result	98	114

Net investment result	54	-72
Net finance income or expense from insurance contracts	-40	58
Net financial result	14	-14

Other income	1	11
Other expenses	-12	-4
Finance expenses	-6	-3
Profit before taxes	95	104
Income taxes	-25	-23
Share of discontinued operations	-	52
Net profit attributable to the non-controlling interests	70	133

Non-controlling interests’ share of the balance sheet


EURm	2023	2022
Assets
Property, plant and equipment	59	57
Intangible assets	406	249
Investments in associates	4	4
Financial assets	1,038	1,309
Deferred income tax	2	3
Reinsurance contract assets	40	40
Other assets	45	33
Cash and cash equivalents	12	4
Total assets	1,608	1,700

Liabilities
Insurance contract liabilities	935	893
Subordinated debts	74	75
Other financial liabilities	23	28
Deferred income tax	70	61
Other liabilities	82	84
Total liabilities	1,184	1,141

Total equity attributable to non-controlling interests	424	560


EURm	2023	2022
Dividends paid to non-controlling interests	187	207
Cash flows allocated to non-controlling interests	4	-73

Board of Directors’

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Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	138

31 Related party disclosures

The related parties of Sampo Group include subsidiaries, associates and joint ventures.

In addition, related parties include, as mentioned below, key management personnel

and their related parties. The Group’s subsidiaries are included in note 29 and

significant associates in note 13.

All intra-group transactions and balances are eliminated upon consolidation. The

related party transactions disclosed in the note include transactions with related

parties that are not eliminated in the preparation of consolidated financial statements.

Transactions with related parties are on an arm’s length basis.

Key management personnel and their related parties

The key management personnel in Sampo Group consists of the members of the Board

of Directors of Sampo plc, the Chief Executive Officer (CEO) and Sampo Group’s

Executive Committee. Their related parties include close family members and the

entities over which the members of the key management personnel or their close

family members have control or significant influence.

Key management compensation


EURm	2023	2022
Short-term employee benefits	-8	-10
Post employment benefits	-3	-3
Other long-term benefits	-6	-6
Total	-17	-19

Short-term employee benefits comprise salaries and other short-terms benefits,

including profit-sharing bonuses accounted for the year, and social security costs.

Post employment benefits include pension benefits under the Employees’ Pensions Act

(TyEL) in Finland and voluntary supplementary pension benefits.

Other long-term benefits consist of the benefits under long-term incentive schemes

accounted for the year (see note 28).

Related party transactions of the key management

The key management does not have any loans from the Group companies.

32 Discontinued operations

Mandatum Group’s business

Mandatum is a major financial services provider that combines expertise in money and

life and offers customers a wide array of services covering asset and wealth

management, savings and investment, compensation and rewards, pension plans and

personal risk insurance. Mandatum offers services to three customer segments:

corporate customers, retail customers as well as institutional and wealth management

customers.

Mandatum was a wholly-owned direct subsidiary of Sampo plc. In Sampo Group

financial reporting, it constituted a reporting segment in accordance with IFRS 8

Operating Segments. Mandatum Group was presented as a discontinued operation, in

accordance with IFRS 5 Non-current assets held for sale and discontinued operations

until the demerger on 1 October 2023. For more information related to classification of

Mandatum, please see section Accounting principles.

Key accounting principles

Sampo Group applies IFRS 17 Insurance Contracts from 1 January 2023 and the

comparative information for the year 2022 is restated. Sampo Group applied the

temporary exemption regarding the adoption of IFRS 9 Financial Instruments and

implemented IFRS 9 at the same time as IFRS 17 Insurance Contracts i.e. on 1 January

2023. The IFRS 9 comparative figures 2022 are not restated. As the new standards,

IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments, are applied from 1

January 2023 in Sampo Group, Mandatum’s reporting is done in accordance with these

standards as well.

In the following chapters the key accounting principles related to IFRS 17 Insurance

Contracts of Mandatum Group, are presented in short. New accounting principles

related to IFRS 9 Financial Instruments are included in section Accounting principles.

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

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Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	139

IFRS 17 Insurance Contracts

General measurement model (GMM)

IFRS 17 introduces a general measurement model

(GMM) applicable to all insurance contracts to measure

insurance contract liabilities. In Mandatum, GMM is

applied to with profit policies and risk policies.

Under the general measurement model insurance

contracts are measured based on future cash flows,

adjusted to reflect the time value of money, including a

risk adjustment, and a contractual service margin

(CSM). CSM represents the unearned profit that will be

recognised when insurance contract services are

provided in the future.

On initial recognition, life operations measure a group of

insurance contracts as the total of the fulfilment cash

flows, comprising of estimates of future cash flows,

discounting and risk adjustment for non-financial risk. In

addition, the measurement includes the contractual

service margin, which is measured at initial recognition

on the group of the insurance contracts.

For insurance contracts related to life operations,

estimates of future cash flows are based on cash flow

projections and are estimated until the maturity of the

contract. Only risk policies with no death benefit or

permanent disability cover are short term (yearly)

contracts. Cash flows are estimated for every reporting

period and assumptions are updated yearly or more

often, if needed.

Insurance acquisition cash flows are determined at

inception of the group of insurance contracts. Insurance

acquisition cash flows are considered directly

attributable to a portfolio and are allocated to individual

contracts. Where actual and expected acquisition cash

flows are not equal at the end of the reporting period,

an experience adjustment is recognized in the

statement of profit or loss.

Mandatum has determined the discount rates based on

a top-down approach where a theoretical reference

portfolio of assets is used to define the applicable

discount curve, consisting of risk-free rate and illiquidity

premium. For insurance contracts without a direct

participation feature, a so called locked-in rate is

applied, meaning that the discount rate is determined at

the initial recognition and is applied in the accretion of

CSM.

IFRS 17 introduces an explicit risk adjustment included

in the measurement of insurance liabilities. The risk

adjustment reflects the cost of uncertainty associated

with the amount and timing of cash flows arising from

non-financial risk and the degree of risk aversion. In

Sampo Group the risk adjustment will be derived

through a confidence level technique whereby

management determines the appropriate quantile. The

risk adjustment is calculated at the subsidiary level and

aggregated into the consolidated Sampo Group level

risk adjustment, without any diversification effects

assumed. Under the general measurement model, the

risk adjustment is included in the calculation of both

LRC and LIC. In regards to the risk adjustment, the

following risks are considered in life operations:

mortality, longevity, disability (including permanent

disability), lapse and expense risk.

At the subsequent reporting periods, the amount of

insurance liabilities is a sum of the LRC consisting of the

present value of future cash flows for services that will

be provided during future periods, risk adjustment,

remaining CSM at that date and LIC. LIC includes

reported but not settled claims and incurred but not

reported claims.

Variable fee approach (VFA)

Under IFRS 17, the variable fee approach (VFA) is to be

applied to direct participating insurance contracts. The

variable fee approach represents a modification from

the general measurement model where the treatment of

contractual service margin is modified. The CSM is

adjusted to reflect the variable nature of the fees, which

represent the amount of the entity’s share of the fair

value of underlying items. In Mandatum VFA is applied

to unit-linked insurance contracts measured under IFRS

17.

In addition, a significant part of life insurance liabilities

is under the scope of IFRS 9. Mandatum recognises

these investment contract liabilities (unit-linked

policies) at fair value through profit or loss. The fair

value is based on the financial assets underlying these

policies and recognised at FVPL.

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	140

Result of discontinued operations


EURm	1-9/2023	1-12/2022

Insurance revenue	255	328
Insurance service expenses	-213	-292
Reinsurance result	-1	-2
Insurance service result	41	34

Net investment result	658	-829
Net finance income or expense from insurance contracts	-161	920
Net result from investment contracts	-369	577
Net financial result	127	668

Other income	22	80
Other expenses	-12	-59
Finance expenses	-4	-6
Share of associates' profit or loss	-1	0
Profit before taxes	173	718
Income taxes	-33	-139
Discontinued operations, net of tax	140	579

Other comprehensive income from discontinued operations, net of tax	—	-484

Total comprehensive income from discontinued operations	140	94

The profit from the discontinued operations and total comprehensive income for the

discontinued operations is attributable entirely to the owners of the parent.

The profit from discontinued operations, amounting to 251 million, includes

Mandatum’s result until 30 September 2023 amounting to 140 million, the difference

from the derecognition of the dividend liability amounting to 9 million and the

recognition of loan receivable from Mandatum, amounting to 102 million. Earning per

share from discontinued operations was EUR 0.5.

Effect on the financial position of the Group


EURm	9/2023
Assets
Property, plant and equipment	24
Investment property	132
Intangible assets	172
Investments in associates	3
Financial assets	3,555
Financial assets related to unit-linked contracts	10,979
Insurance contract assets	9
Reinsurance contract assets	1
Other assets	188
Cash and cash equivalents	673
Assets	15,736

Liabilities
Insurance contract liabilities	5,290
Investment contract liabilities	7,972
Subordinated debts	250
Other financial liabilities	22
Deferred income tax	133
Other liabilities	244
Liabilities	13,910

Cash flows from discontinued operations


EURm	1-9/2023	1-9/2022

Net cash flows from operating activities	173	-129
Net cash flows from investing activities	20	-8
Net cash flows from financing activities	-280	-166
Total cash flows	-88	-303

Cash flows from financing activities include an internal dividend of EUR 150 million (150) and a

group contribution of EUR 29 million (15) to Sampo plc.

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	141

33 Business operations divested

Topdanmark Forsikring's life and pension business

On 18 March 2022, Sampo's subsidiary Topdanmark Forsikring A/S signed an

agreement to divest of Topdanmark Liv Holding A/S and all its subsidiaries to Nordea

Life Holding AB. Illness and Accident in the Liv Holding Group were included in the

divested operations. The transaction was approved by regulatory authorities and the

transaction was completed on 1 December 2022.

In Sampo Group, Topdanmark Life’s operations had been reported as part of

Topdanmark segment. As Topdanmark’s life business did not represent a major line of

business or geographic area of operations for Sampo Group, assets and liabilities

related to Topdanmark Life’s operations were classified to non-current assets held for

sale, in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued

Operations.

Results of divested operation


EURm	1-11/2022

Insurance revenue	244
Insurance service expenses	-194
Reinsurance result	2
Insurance service result	52

Net investment result	-1,114
Net finance income or expense from insurance contracts	1,106
Net financial result	-9

Other income	3
Other expenses	-13
Profit before taxes	32
Income taxes	-2
Divested operations, net of tax	31
Sales gain	117
Net profit from the divested operations	148

Due to the disposal, trademark related to Topdanmark Life was derecognised in the

statement of profit in the Group, totalling net EUR -46 million.

Board of Directors’

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Sampo plc’s Financial Statements

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	142

34 Business combinations

On 1 December 2023, Topdanmark acquired 100% of the shares of Oona Health A/S,

owner of Dansk Sundhedssikring A/S (DSS), PrimaCare A/S and DSS Hälsa AB. DSS is

an insurance company that offers health insurance to companies and private

individuals. PrimaCare A/S is a network healthcare company, providing physiotherapy,

chiropractic and psychology services to insurance companies. DSS Hälsa AB is an

insurance agency in Sweden, providing health insurance products and administration in

connection with the insurance policies.

The purchase price includes goodwill of EUR 237 million (DKK 1,770 million) which

relates to the unique business model and operational setup of DSS. Goodwill will not

be deductible for income tax purposes. The following table summarises the

consideration paid for Oona Health, and the assets acquired and liabilities assumed at

the acquisition date.


EURm	1 Dec 2023
Cash	257
Contingent consideration	12
Total purchase price	269

Acquisition related costs	5

Identified assets acquired and liabilities assumed
Financial assets	39
Cash and cash equivalents	8
Intangible asset	87
Other assets	11
Total assets	146

Insurance contract liabilities	18
Other liabilities	96
Total liabilities	114

Total identifiable net assets	31
Goodwill	237
Purchase price	269

In accordance with the purchase agreement Topdanmark A/S took over 97% of the

shares of Oona Health A/S at closing and will acquire the remaining 3% at a purchase

price which is variable and dependent on profit after tax in 2026.

The intangible assets include customer relationships EUR 72 million (DKK 535 million)

and trade names EUR 7 million (DKK 50 million). The revenue included in the

statement of comprehensive income since 1 December 2023 contributed by Oona

Health A/S was EUR 12 million (DKK 93 million) and profit EUR 2 million (DKK 14

million).

The following table summarises the acquired assets and assumed liabilities:


EURm	12/2023
Assets and liabilities
Tangible and intangible assets	326
Financial assets	39
Other assets	9
Cash and cash equivalents	8
Total assets	383

Insurance contract liabilities	18
Other liabilities	108
Total liabilities	126

Total consideration paid in cash	257

Board of Directors’

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Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	143

35 Contingent liabilities, commitments and legal proceedings


EURm	12/2023	12/2022

Off-balance sheet items
Guarantees	9	9
Investment commitments	15	2,069
IT acquisitions	1	11
Other	2	2
Total	27	2,091

The comparative period includes Mandatum Group’s figures. The investment commitments in the

above table in 2022 were for the most part Mandatum’s commitments to private equity and credit

funds. For further information, please see note 32.

Assets pledged as collateral for liabilities or contingent liabilities


	12/2023		12/2022
EURm	Assets pledged	Liabilities/ commitments	Assets pledged	Liabilities/ commitments

Assets pledged as collateral
Investment securities	408	293	362	169
Subsidiary shares	91	27	94	28
Cash and cash equivalents	63	36	19	32
Total	561	356	476	230

Assets pledged as security for derivative contracts
Investment securities	9		8
Cash and cash equivalents	42		60
Assets pledged as security for insurance undertakings
Investment securities	399		354
Assets pledged as security for loans
Shares in subsidiaries	91		94

The pledged assets are included in the balance sheet item Financial assets, Other assets or Cash.

Policyholder's beneficiary rights


EURm	2023	2022
Assets covered by policyholders' beneficiary rights	10,034	9,644
Technical provisions, net	-6,171	-6,082
Surplus of registered securities	3,863	3,562

The assets are registered as assets covering technical provisions (Solvency II). In the

event of an insolvency situation, policyholders have a beneficiary right to assets

registered for coverage of technical provisions.

Other financial commitments

Sampo and Mandatum have agreed on the sale of shares in Saxo Bank, but the sale is

subject to approvals from authorities. Sampo has granted a loan amounting to EUR

280 million to Mandatum, which still remains undrawn at the end of reporting period.

The loan is expected to be repaid within a period of 4 years from its issuance.

The subsidiary If P&C Insurance Ltd provides insurance with mutual undertakings

within several pools, such as the Nordic Nuclear Insurance Pool, Norwegian Natural

Perils’ Pool and the Dutch Terror Pool.

In connection with the transfer of property and casualty insurance business from the

Skandia Group to the If Group as of March 1, 1999, If P&C Holding Ltd and If P&C

Insurance Ltd issued a guarantee for the benefit of Försäkringsaktiebolaget Skandia

(publ.), whereby the aforementioned companies in the If Group mutually guarantee

that companies in the Skandia group will be indemnified against any claims or actions

due to guarantees or similar commitments made by companies in the Skandia Group,

within the property and casualty insurance business transferred to the If Group.

Board of Directors’

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	FINANCIAL STATEMENTS 2023	144

If P&C Insurance Holding Ltd and If P&C Insurance Ltd

have separately entered into agreements with

Försäkringsaktiebolaget Skandia (publ.) and Tryg-

Baltica Forsikrings AS, whereby Skandia and Tryg-

Baltica will be indemnified against any claims

attributable to guarantees issued

byFörsäkringsaktiebolaget Skandia (publ.) and Vesta

Forsikring AS, on behalf of Skandia Marine Insurance

Company (U.K.) Ltd. (renamed Marlon Insurance

Company Ltd., company dissolved in July 2017) in

favour of the Institute of London Underwriters. Marlon

was sold during 2007, and the purchaser issued a

guarantee in favour of the aforementioned companies

in the If Group for the full amount that they may be

required to pay under these guarantees.

If P&C Insurance Company Ltd has outstanding

commitments to private equity funds totalling EUR 3

million, which is the maximum amount that the

company has committed to invest in the funds. Capital

will be called to these funds over several years as the

funds make investments.

With respect to certain IT systems If and Sampo use

jointly, If P&C Insurance Holding Ltd has undertaken to

indemnify Sampo for any costs caused by If that Sampo

may incur in relation to the owners of the systems.

Sampo Group’s Danish companies and Topdanmark

Group’s companies are jointly taxed, with Topdanmark

A/S being the management company. Pursuant to the

specific rules on corporation taxes etc. in the Danish

Companies Act, the companies are liable for the jointly

taxed companies and for any obligations to withhold

tax from interests, royalties and dividend for companies

concerned.

In connection with the implementation of a new

customer and core system, Topdanmark Forsikring A/S

has undertaken to provide support towards specific

suppliers to fulfil Topdanmark EDB IV ApS’ obligations

in accordance with the contracts.

Contingent liability

Entities within Hastings Group are subject to review by

tax authorities in the UK and Gibraltar. The Hastings

Group commenced discussion with HMRC in December

2016 regarding aspects of its business model and the

allocation of certain elements of its profit between the

Group’s operating subsidiaries, Hastings Insurance

Services Limited (’HISL’) in the UK and Advantage

Insurance Company Limited (’AICL’) in Gibraltar. During

the year, management has engaged in correspondence

and meetings with HMRC. Management has reviewed

current and previous tax filings and considered the

nature of the ongoing enquiries, and does not consider

it appropriate to provide for any additional tax due.

Hastings Group provides for potential tax liabilities that

may arise on the basis of the amount expected to be

paid to the tax authorities, having taken into

consideration any ongoing enquiries or reviews and

based on guidance from professional firms. The final

amounts paid may differ from the amounts provided

depending on the ultimate resolution of such matters

and any changes to the estimates or amounts payable

in respect of prior periods are reported through

adjustments relating to prior periods. In the event that

the tax authorities do not ultimately accept the filed tax

position, it is possible that the Hastings Group will have

an additional tax liability. However the ongoing nature

of the enquiry means that it is inherently difficult to

predict a range of potential outcomes with certainty.

Based on the information received from HMRC to date,

management does not believe that it is probable that

any additional amounts will ultimately become payable.

Further information in respect of the enquiries has,

therefore, not been provided in accordance with IAS 37,

on the grounds it is not practicable to do so.

Legal proceedings

There are a number of legal proceedings against the

Group companies outstanding on 31 December 2023,

arising in the ordinary course of business. The

companies estimate it unlikely that any significant loss

will arise from these proceedings.

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	FINANCIAL STATEMENTS 2023	145

36 Subsequent events after the balance sheet date

Change in reference point for

disaggregation of IFRS 17

discounting effects in If

On 18 January 2024, Sampo published a press release

regarding technical changes in the calculation

methodology for discounting effects in If. Following an

analysis of the application of IFRS 17 over 2023, the

reference point used in If P&C for disaggregation of

IFRS 17 discounting effects has been changed from the

beginning of year to the beginning of quarter. The

change in reference point impacts on the split of

discounting effects between the insurance service result

(ISR) and insurance finance income or expenses (IFIE),

but not profit before taxes. This reflects the Group’s

practice of providing financial results for individual

quarters, and a desire to align more closely with

common market practice and the approach taken by

other Group companies. For more information, please

see accounting principles.

Dividend proposal to the AGM

In the meeting of 8 February 2024, the Board of

Directors decided to proposet, at the Annual General

Meeting on 25 April 2024, a divided distribution of EUR

1.80 per share (totalling approx. EUR 903 million based

on the number the number of outstanding shares at the

balance sheet date). The dividends to be paid will be

accounted for in the equity in 2024 as a deduction of

retained earnings.

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37 Risk Management disclosure

Sampo Group business and risk

strategy

Sampo’s strategy is to create long-term value from its

non-life insurance operations. The Group’s focus within

non-life insurance is on the private and SME business in

the Nordic countries and the digital distribution market

in the United Kingdom. Sampo Group is first and

foremost exposed to the general performance of the

Nordic economies. However, the Nordic economies

typically are at any given time at different stages of

their economic cycles, because of reasons such as

different economic structures and separate currencies.

Also, geographically the Nordics as a large area is more

a source of underwriting diversification than

concentration. Hence, inherently the Nordic area is a

good basis for a diversified business. Geographic

diversification is extended also outside of the Nordics

into the United Kingdom via Hastings.

To further maintain diversification of businesses Sampo

Group proactively prevents concentrations, to the

extent possible, by segregating the duties of separate

business areas. As a result, separate companies have

very few overlapping areas in their underwriting and

investments activities. Despite proactive strategic

decisions on segregation of duties, concentrations in

underwriting and investments may appear and hence

liabilities and assets are monitored at the Group level to

identify potential concentrations at a single company or

risk factor level.

It is regarded that the current business model where all

companies have their own operational processes and

agreements with counterparties mitigates accumulation

of counterparty default risks and operational risks.

Hence, these risks are mainly managed at company

level.

The number of intragroup exposures between the

Group companies is small and the parent company is

the main source of internal liquidity and capital within

the Group. This effectively prevents contagion risk, and

hence potential problems of one company will not

directly affect the other Group companies.

Underwriting and market risk concentrations and their

management are described in the later sections as well

as the parent company’s role as a risk manager of

group-wide risks and as a source of liquidity.

Sampo's risk management strategy is to:

• Ensure that risks affecting the profit and loss account

and the balance sheet are identified, assessed,

managed, monitored and reported in all business

activities and at the Group level;

• Ensure cost-efficient customer business that is

soundly priced in terms of risks and adding value to

our clients;

• Ensure the overall efficiency, security and continuity

of operations;

• Ensure that risk buffers – in the form of capital and

foreseeable profitability – are adequate in relation to

the current risks inherent in business activities and

existing market environment;

• Limit M&A transactions to bolt-ons in non-life

insurance;

• Dispose non-strategic or otherwise unnecessary

balance sheet items and distribute the released

capital and reserves to the parent company as

appropriate; and

• Arrange its activities in ways that safeguard the

Group’s reputation, since in addition to the ability to

provide value-adding services for its clients and

sound capitalisation, the confidence of the clients and

other stakeholders is among the most significant

assets of Sampo Group.

Sampo Group risk management

system

The purpose of risk management is the creation and

protection of value. The risk management system is part

of the larger internal control system, and it integrates

risk management into the governance of the Group and

into its significant activities and functions, including

decision making. The risk management system includes

the risk management principles and the corresponding

policies, in addition to the organisational structures and

processes by which risks are being managed.

The central tasks in the risk management process are as

follows:

• Identification of risks: The risks involved in business

operations and business environment, are monitored

continuously together with earnings potential. In

particular, when new services are launched or

business environment is changing, earnings potential

and risks including reputational risks shall be

thoroughly analysed.

• Assessment of capital need: The capital need to cover

measured risks, risk-based capital, is assessed and

analysed regularly by risk types and over risks and

business areas. In addition, management considers

the size of the buffers over risk-based capital to get

actual amount of capital.

• Pricing of risks: Sound pricing of customer

transactions and careful risk/return consideration of

investments is the prerequisite for achieving the

targeted financial performance and profitability over

time. In general, the starting points of insurance policy

pricing and investment decisions are (i) adequate

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	FINANCIAL STATEMENTS 2023	147

expected return on allocated capital and (ii) operating

costs.

• Managing risk exposures, capital positions and

operational processes: The risks of insurance

liabilities, investment portfolios and operative

processes and capital positions are adjusted to

maintain a sound risk to return ratio and return on

capital.

• Measuring and reporting of risks: Results, risks,

profitability and needed capitalisation are measured,

analysed and reported by Finance and Risk

Management functions, which are independent from

business activities

Classification of risks

In Sampo Group, the risks associated with business

activities fall into the categories shown in the picture

Classification of risks in Sampo Group.

Classification of risks in Sampo Group

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Risks inherent in business

operations

In its underwriting and investment operations, Sampo

Group is consciously taking certain risks to generate

earnings. These earnings risks are carefully selected and

actively managed. Underwriting risks are priced to

reflect their inherent risk levels and the expected return

of investments is compared to the related risks.

Furthermore, earnings related risk exposures are

adjusted continuously and their impact on the capital

need is assessed regularly.

Successful management of underwriting risks and

investment portfolio market risks is the main source of

earnings for Sampo Group companies. Day-to-day

management of these risks, i.e., maintaining them within

given limits and authorisations is the responsibility of

the business areas and the investment units.

Some risks, such as counterparty default risks and

operational risks presented in the graph Classification of

Risks in Sampo Group are indirect repercussions of

Sampo’s normal business activities. They are one-sided

risks, which in principle have no related earnings

potential. Accordingly, the risk management objective is

to mitigate these risks efficiently rather than actively

manage them. Mitigation of consequential risks is the

responsibility of the business areas and the investment

units. The capital need for these risks is measured by

independent risk management functions. It must be

noted that the categorisation of risks between earnings

and consequential risks varies depending on the

industry. For Sampo Group’s clients, for instance, the

events that are subject to insurance policies are

consequential risks and for Sampo Group these same

risks are earnings risks.

Some risks such as interest rate, currency and liquidity

risks are by their nature simultaneously linked to various

activities. To manage these risks efficiently, Sampo

Group companies must have a detailed understanding

of expected cash flows and their variance within each of

the company’s activities. In addition, a thorough

understanding of how the market values of assets and

liabilities may fluctuate at the total balance sheet level

under different scenarios is needed. These balance

sheet level risks are commonly defined as Asset and

Liability Management (“ALM”) risks. In addition to

interest rate, currency and liquidity risk, inflation risk

and risks relating to GDP growth rates are central ALM

risks in Sampo Group. The ALM risks are one of the

focus areas of senior management because of their

relevance to risks and earnings in the long run.

In general, concentration risk arises when the

company’s risk exposures are not diversified enough.

When this is the case, an individual extremely

unfavourable claim or financial market event, for

instance, could threaten the solvency of the company.

Concentrations can evolve within separate activities –

large single name or industry specific insurance or

investment exposures – or across activities when a

single name or an industry is contributing widely to the

profitability and risks of the company through both

insurance and investment activities.

Concentration risk may also materialise indirectly when

profitability and the capital position react similarly to

general economic developments or to structural

changes in the institutional environment in different

areas of business.

Sustainability approach

Sampo Group has a sustainability programme, which

drives Group level sustainability work. The programme

consists of five strategic sustainability themes: Business

management and practices, Corporate culture,

Investment management and operations, Products and

services, and Communities. In addition, the Group is

committed to protecting the environment and

combatting climate change.

Climate-related risks and opportunities at Sampo Group

are identified, assessed, and managed primarily in the

insurance subsidiaries, where the actual business

operations are being carried out.

Environmental issues and climate change are factors

that are expected to have a mid and long-term effect

on Sampo Group’s businesses. Climate-related risks can

be categorised into physical risks and transition risks.

Physical risks can be further classified into long-term

weather changes (chronic risks) and extreme weather

events such as storms, floods, or droughts (acute risks).

Transition risks refer to risks arising from the shift to a

low carbon economy, for example changes in

technology, legislation, and consumer sentiment.

The strength of the risks depends on the trajectory of

global warming. A scenario in line with the Paris Climate

Agreement, limiting the temperature rise to 1.5°C, would

have moderate consequences, whereas 3–5°C scenarios

would have severe consequences for industry,

infrastructure, and public health. Especially in

geographically vulnerable regions, abandonment of

low-lying coastal areas due to rising sea levels and food

and water shortages, can lead to large-scale migration

and outbreaks of diseases.

Physical risks are risk factors affecting especially the

financial position and results of Sampo Group. The

increasing likelihood of extreme weather conditions and

natural disasters is included in internal risk models.

Climate-related risks are also managed effectively with

reinsurance programs and price assessments. Since

climate change could increase the frequency and/or

severity of physical risks, the Sampo Group companies

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	FINANCIAL STATEMENTS 2023	149

conduct sensitivity analyses using scenarios in which

the severity of natural catastrophes is assumed to

increase.

Sampo Group’s investments can be exposed to both

physical risks and transition risks, depending on the

investment in question. Investments are particularly

exposed to physical risks in the form of losses incurred

from extreme weather events. The transition to a low-

carbon society with potentially increasing

environmental and climate regulation, more stringent

emission requirements, and changes in market

preferences could in turn cause transition risks for the

Group’s investments and possible revaluation of assets

as operating models in carbon intense sectors change.

To manage physical risks and transition risks,

investment opportunities are carefully analysed before

any investments are made and climate-related risks are

considered along with other factors affecting the risk-

return ratio of individual investments. The methods

used by Sampo Group include, for example, annual

analysis of the carbon footprint and climate impact of

investments, sector-based screening and ESG

integration, monitoring the geographical distribution of

investments and engagement with investee companies.

Core risk management activities

To create value for all stakeholders in the long run,

Sampo Group must have the following forms of capital

in place:

• Financial flexibility in the form of adequate capital and

liquidity.

• Good technological infrastructure.

• Intellectual capital in the form of comprehensive

proprietary actuarial data and analytical tools to

convert this data into information.

• Human capital in the form of skilful and motivated

employees.

• Social and relationship capital in the form of good

relationships with society and clients to understand

the changing needs of different stakeholders.

These resources are being continuously developed in

Sampo Group. They are in use when the following core

activities related to risk pricing, risk taking, and active

management of risk portfolios are conducted.

Appropriate selection and pricing of underwriting risks

• Underwriting risks are carefully selected and are

priced to reflect their inherent risk levels.

• Insurance products are developed proactively to

meet clients’ changing needs and preferences.

Effective management of underwriting exposures

• Diversification is actively sought.

• Reinsurance is used effectively to reduce largest

exposures.

Careful selection and execution of investment

transactions

• Risk return ratios and sustainability issues of separate

investments opportunities are carefully analysed.

• Transactions are executed effectively.

Effective mitigation of consequential risks

• Counterparty default risks are mitigated by carefully

selecting counterparties, applying collateral

agreements, and assuring adequate diversification.

• High quality and cost-efficient business processes are

maintained.

• Continuity and recovery plans are continuously

developed to secure business continuity.

Effective management of investment portfolios and the

balance sheet

• Balance between expected returns and risks in

investment portfolios and the balance sheet is

optimised, considering the features of insurance

liabilities, internally assessed capital needs, regulatory

solvency rules and rating requirements.

• Liquidity risks are managed by having an adequate

portion of investments in liquid instruments. The

portion is mainly dependent on the features of the

liabilities.

At the Group level, the risk management focus is on

capitalisation, leverage, and liquidity. It is also essential

to identify potential risk concentrations and to have a

thorough understanding of how solvency and reported

profits of Group companies would develop under

different scenarios. These concentrations and

correlations may influence Group level capitalisation,

leverage, and liquidity as well as on Group level

management actions.

When the above-mentioned core activities are

successfully implemented, a balance between profits,

risks and capitalisation can be achieved and shareholder

value can be created.

Accounting principles

Sampo Group applies IFRS 17 Insurance Contracts and

IFRS 9 Financial Instruments from 1 January 2023.

Comparative information (IFRS 17) for the year 2022

has been restated, and IAS 39 is applied. For more

information on the implementation, please see note on

accounting principles section IFRS 17 and IFRS 9

transition impacts.

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	FINANCIAL STATEMENTS 2023	150

Underwriting risks at Sampo Group

With respect to the underwriting businesses carried out in the subsidiary companies, it

has been established that If and Topdanmark operate within the Nordic countries, but

mostly in different geographical areas and in different lines of business and hence their

underwriting risks are different by nature. There are some overlapping areas in

Denmark in If and Topdanmark. However, there are no material underwriting risk

concentrations in the normal course of business. Hastings operates solely in the United

Kingdom, and hence its underwriting risks are geographically distinct from the Nordics.

Consequently, business lines as such are contributing diversification benefits rather

than a concentration of risks.

Key sensitivities

Effects from instant change on profit or loss in year 2023


EURm	Shock	2023
UW profit	Discount rate +100 bps	45
UW profit	Discount rate -100 bps	-50
Insurance finance income and expense, net	Discount rate +100 bps	315
Insurance finance income and expense, net	Discount rate -100 bps	-360
Net investment income	Interest rates +100 bps	-335
Net investment income	Interest rates -100 bps	355
Net investment income	Spreads +100 bps	-330
Net investment income	Equities -10%	-220

Underwriting risks at If Group

As shown in the graph Breakdown of gross written premiums by business area,

country, and line of business, If, 31 December 2023, the If insurance portfolio is well

diversified across business areas, countries, and lines of business. The six lines of

business are segmented in accordance with the insurance class segmentation used in

IFRS.

Breakdown of gross written premiums by business area, country, and line of business

If, 31 December 2023, total EUR 5,468 million (5,432)

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There are minor differences between the figures

reported by Sampo Group and If due to differences in

foreign exchange rates used in the consolidation.

Premium and catastrophe risk and their

management and control

The main factors affecting If’s premium risk are claims

volatility, claims inflation, and pricing methodology.

Given the inherent uncertainty of P&C insurance

operations, there is a risk of losses due to unexpectedly

high claims expenses. Examples of what could lead to

high claims expenses include large fires, natural

catastrophes or an unforeseen increase in the frequency

or the average size of small and medium-sized claims.

The principal methods for mitigating premium risks are

by reinsurance, diversification, prudent underwriting,

and regular follow-ups linked to the strategy and

financial planning process.

An analysis of how changes in the combined ratio,

insurance revenue (net of reinsurance premium

expense) and claims incurred affect the result before

tax is presented in the table Sensitivity analysis,

premium risk, If, 31 December 2023 and 31 December

2022.

Sensitivity analysis, premium risk

If, 31 December 2023 and 31 December 2022


	Level 2023		Change in current level	Effect on result before tax (Gross)		Effect on result before tax (Net)
	(Gross)	(Net)		2023	2022	2023	2022
Combined ratio, business area Private	83.5%	83.1%	+/- 1 percentage point	+/ 28.7	+/ 29.5	+/ 28.4	+/ 29.3
Combined ratio, business area Commercial	82.1%	81.9%	+/- 1 percentage point	+/ 13.2	+/ 13.4	+/ 13.1	+/ 13.2
Combined ratio, business area Industrial	96.5%	87.3%	+/- 1 percentage point	+/ 9.2	+/ 8.5	+/ 6.3	+/ 5.9
Combined ratio, business area Baltics	85.6%	85.9%	+/- 1 percentage point	+/ 2.3	+/ 1.9	+/ 2.2	+/ 1.9
Insurance revenue (net of reinsurance premium expenses EURm)	5,330	4,996	+/- 1 per cent	+/ 53.3	+/ 53.3	+/ 49.9	+/ 50.2
Claims incurred (EURm)	3,763	3,377	+/- 1 per cent	+/ 37.6	+/ 36.7	+/ 33.7	+/ 35.5

The Underwriting Committee is an advisory and

preparatory body to the CEOs in the respective

companies. In accordance with the instructions for the

Underwriting Committee, the committee monitors

compliance with the established underwriting principles.

The Chairman of the Underwriting Committee is, among

other things, responsible for the approval of

underwriting deviations defined in the Underwriting

Policy.

The Underwriting Policy sets general principles,

restrictions, and directions for the underwriting

activities. The Underwriting Policy is supplemented by

guidelines outlining in greater detail how to conduct

underwriting within each business area.

The Reinsurance Policy stipulates guidelines for the

purchase of reinsurance. The optimal choice of

reinsurance program is evaluated by comparing the

expected cost with the benefit of the reinsurance, the

impact on result volatility and capital requirements. The

main tool for this evaluation is If’s internal model in

which small claims, large claims and natural

catastrophes are modelled.

The Reinsurance Policy includes limitations on

permitted reinsurers and their rating for each line of

business. In addition, limits relating to concentration risk

and exposure to reinsurance risk are included. The

reinsurers are continuously assessed and evaluated

through in-house financial and qualitative pre-defined

analyses.

A group-wide reinsurance program is in place in If since

2003. In 2023, retention levels were between SEK 100

million (approximately EUR 9.0 million) and SEK 300

million (approximately EUR 27.0 million) per risk and

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	FINANCIAL STATEMENTS 2023	152

SEK 300 million (approximately EUR 27.0 million) per

event.

Reserve risk and its management and control

If's main reserve risks are claims inflation and increased

retirement age.

Reserves, especially in long tailed business, are sensitive

to assumptions of future claims inflation since they

affect the future claim amount. An increased retirement

age, through for instance a political decision, will

increase the duration and present value of annuities as

they decrease, or expire, at retirement. An increase in

life expectancy will likewise increase the duration and

present value of annuities.

Valuation of the liability for incurred claims always

includes a degree of uncertainty since it is based on

estimates of the size and the frequency of future claims

payments. The uncertainty in the valuation is normally

greater for new portfolios for which complete run-off

statistics are not yet available, and for portfolios

including claims that take a long time to settle. Workers’

compensation, motor third party liability (MTPL),

personal accident and liability insurance are products

with the latter characteristics.

The value of the net liability for incurred claims is in

addition to risk factors relating to reserve risk also

impacted by changes in discount rates and exchange

rates. These market risks are described in sections for

interest rate risk and currency risk. The reserve risk

differs from interest rate risk since it relates to the size

of future cash flows, while the interest rate risk only

impacts the present value of future cash flows.

The duration of the provisions, and thus the sensitivity

to changes in discount rates, varies with each product

portfolio. The weighted average duration for 2023

across the product portfolios was 6.2 (6.0) years.

A large part of the exposure relates to lines of business

MTPL and workers’ compensation, where a part of the

liability for these lines includes annuities. In 2023 the

proportion of liability for incurred claims related to

MTPL and workers’ compensation was 52 (54) per cent.

In the tables Net liability for incurred claims by line of

business and major geographical area, If, 31 December

2023 and 31 December 2022, the size and duration of

If’s IFRS net liability for incurred claims are presented

by line of business and major geographical area.

Net liabilities for incurred claims by line of business and major geographical area

If, 31 December 2023


	Sweden		Norway		Finland		Denmark		Baltics		Total
	EURm	Duration	EURm	Duration	EURm	Duration	EURm	Duration	EURm	Duration	EURm	Duration
Motor other and MTPL	868	9.2	226	1.7	669	10.8	103	3.0	107	4.0	1,972	8.2
- whereof MTPL	774	10.2	159	2.3	647	11.1	89	3.1	93	4.5	1,762	9.2
Workers' compensation	0	0.0	116	2.9	805	10.4	300	8.2	0	0.0	1,220	9.1
Liability	249	4.0	120	1.5	117	3.3	74	2.9	20	2.0	580	3.1
Accident	283	6.4	319	6.1	163	7.0	80	1.7	3	0.3	847	5.9
Property	330	1.0	364	0.8	175	0.7	101	0.4	26	0.6	996	0.8
Marine, aviation, transport	17	0.7	16	0.7	9	1.1	26	0.6	3	0.7	70	0.7
Total	1,747	6.3	1,162	2.7	1,938	8.9	681	4.7	158	3.1	5,686	6.2

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	FINANCIAL STATEMENTS 2023	153

Net liabilities for incurred claims by line of business and major geographical area

If, 31 December 2022


	Sweden		Norway		Finland		Denmark		Baltics		Total
	EURm	Duration	EURm	Duration	EURm	Duration	EURm	Duration	EURm	Duration	EURm	Duration
Motor other and MTPL	845	8.2	270	1.7	642	11.4	106	2.9	94	4.2	1,957	7.9
- whereof MTPL	761	9.0	209	2.1	621	11.7	94	3.0	82	4.8	1,767	8.7
Workers' compensation	0	0.0	140	3.0	846	10.5	279	7.7	0	0.0	1,264	9.0
Liability	245	4.0	113	1.4	108	2.7	70	2.7	21	2.2	557	3.0
Accident	291	5.3	310	5.2	146	6.8	82	1.7	2	0.2	831	5.2
Property	261	1.0	356	0.8	161	0.7	98	0.4	26	0.6	902	0.8
Marine, aviation, transport	16	0.7	17	0.7	10	1.1	26	0.3	2	0.8	70	0.6
Total	1,657	5.8	1,206	2.5	1,913	9.2	661	4.3	144	3.2	5,582	6.0

A sensitivity analysis of the reserve risk is presented in

the table below as well as the interest rate risk relating

to insurance contracts. The effects represent the

immediate impact on the liability’s values as a result of

changes in the different risk factors as per December 31

each year. The sensitivity analysis is calculated before

tax. Change in the liability for incurred claims, net will

result in a corresponding change in result before

income taxes. The effect in the income statement is

presented in either the insurance service result or the

net financial result.

Sensitivity analysis, reserve risk

If, 31 December 2023 and 31 December 2022


Insurance liabilities item	Risk factor	Change in risk parameter	Country	Effect EURm 2023 Gross	Effect EURm 2023 Net	Effect EURm 2022 Gross	Effect EURm 2022 Net
Discounted estimated future cash flows	Inflation increase	Increase by 1 percentage point	Sweden	124.5	120.1	114.9	112.1
			Denmark	33.6	33.0	30.6	29.9
			Finland	25.5	25.2	27.6	27.4
			Norway	21.5	20.2	20.3	19.9
Annuities and reated INBR	Decrease in mortality	Life expectancy increase by 1 year	Sweden	15.1	15.1	12.8	12.8
			Denmark	1.0	1.0	0.8	0.8
			Finland	49.2	49.2	46.4	46.4
			Norway	0.2	0.2	0.1	0.1
Discounted liability for incurred claims	Decrease in discount rate	Decrease by 1 percentage point to liquid part of yield curve	Sweden	87.0	82.6	79.0	76.4
			Denmark	33.5	32.9	29.8	29.2
			Finland	171.6	171.3	172.8	172.6
			Norway	31.4	30.1	29.0	28.6

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	FINANCIAL STATEMENTS 2023	154

The IFRS Insurance liabilities are further analysed by

claims years. The output from this analysis is illustrated

both before and after reinsurance in the claims cost

trend tables. These are disclosed in the note 23.

The Boards of Directors decide on the guidelines

governing the calculation of insurance liabilities. The

Chief Actuary is responsible for developing and

presenting guidelines on how the insurance liabilities

are to be calculated and for assessing whether the level

of total liability is sufficient. The Actuarial function is

responsible for ensuring compliance with the steering

documents and that local rules and regulations are

reflected in guidelines and working routines.

The Actuarial Committee is a preparatory and advisory

board for If’s Chief Actuary. The committee secures a

comprehensive view over reserve risk, discusses, and

gives recommendations on policies and guidelines for

calculating insurance liabilities.

The calculation of liabilities for incurred claims

according to IFRS is carried out by actuaries within

each business area. The premium and claims provisions

according to the Solvency II regulations are based on

parameters from each business area and the Chief

Actuary unit. The actuarial estimates are based on

historical claims data and exposures that are available

at the closing date. Factors that are considered include

loss development trends, the level of unpaid claims,

changes in legislation, case law and economic

conditions. When estimating the liability, established

actuarial methods are generally used, combined with

projections of the number of claims and average claims

costs.

Underwriting risks in Topdanmark Group

As shown in the graph Breakdown of gross written

premiums by business area, country and line of

business, Topdanmark, 31 December 2023,

Topdanmark’s insurance portfolio is diversified across

Business areas and lines of business.

Breakdown of gross written premiums by business area, country and line of business

Topdanmark, 31 December 2023, Total EUR 1,339 million (1,308)

Breakdown_of_gross_written_premiums_a_Topdanmark_15-2-24.svg

Breakdown_of_gross_written_premiums_b_Topdanmark_15-2-24.svg

Breakdown_of_gross_written_premiums_c_Topdanmark_15-2-24.svg

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	FINANCIAL STATEMENTS 2023	155

Premium and catastrophe risk and their

management and control

The main underwriting risk that influences the

performance is the risk of catastrophe events. However,

the insurance risk of Topdanmark Forsikring is

mitigated by a comprehensive reinsurance program.

The reinsurance program focuses on catastrophe risks

such as storm, cloudburst, fire and other cumulative

risks, where several policyholders are affected by the

same event. The biggest retentions are on storm with

DKK 150 million plus reinstatement for each event, while

the biggest retention on fire is DKK 30 million with a

maximum capacity of DKK 1,245 billion. In workers'

compensation risks are covered up to DKK 1 billion with

a retention of DKK 50 million.

Nearly all insurance risks in Topdanmark Forsikring are

measured by a partial internal model instead of the

Solvency ll standard model. The partial internal model

has been approved by the Danish Supervisory

Authorities for solvency calculations. The efficiency of

the reinsurance programme is assessed by the partial

internal model.

With certain restrictions, acts of terrorism are covered

by the reinsurance contracts. The NBCR (nuclear,

biological, chemical, radiological) acts of terrorism are

covered by a public organisation. This is based on an

Act on NBCR acts of terrorism. Under this scheme the

costs from a NBCR attack in Denmark will initially be

borne by the State, but those costs will subsequently be

recovered from policyholders.

Premium risk reduction measures taken at different

levels of operations are as follows:

• Collection of data on risk and claims history

• Use of collected and processed data in profitability

reporting, risk analyses and in the internal model

• Ongoing follow-up on risk developments as well as

quarterly forecasts for future risk development

• Pricing using a statistical model tool including

customer scoring tools

• Reinsurance cover that reduces the risk especially for

catastrophe events

• Ongoing follow-up on the risk overview and

reinsurance coverage in Topdanmark's Risk

Committee.

To maintain product and customer profitability,

Topdanmark monitors changes in its customer

portfolios. Provisions are recalculated, and the

profitability reports are updated in the same context on

a monthly basis. Based on this reporting, trends in claim

levels are carefully assessed and price levels may be

adjusted if considered necessary.

In the private market segment, customer scoring is

used, and customers are divided into groups according

to their expected profitability levels. The customer

scoring has two roles. First it helps to maintain the

balance between the individual customer's price and

risk. Secondly it facilitates the fairness between

individual customers by ensuring that no customers are

paying too large premiums to cover losses from

customers who pay too small premiums.

The historical profitability of major SME customers with

individual insurance schemes is monitored using

customer assessment systems. These assessment

systems enable Topdanmark to achieve accurate

information about income, claims expenses, combined

ratio etc. for each customer.

In addition to the analysis described above,

Topdanmark continuously improves its administration

systems to achieve more detailed data, which in turn

enables the company to continuously improve the

pricing and gain even better insight into how the

different types of claims are composed.

The insurance risk scenarios are presented in the table

Sensitivity analysis, premium risk, Topdanmark, 31

December 2023 and 31 December 2022.

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	FINANCIAL STATEMENTS 2023	156

Sensitivity analysis, premium risk

Topdanmark, 31 December 2023 and 31 December 2022


Key figures	Current level 2023 (Gross)	Current level 2023 (Net)	Change in current level	Effect on result before tax (Gross)		Effect on result before tax (Net)
Key figures	Current level 2023 (Gross)	Current level 2023 (Net)	Change in current level	2023	2022	2023	2022
Combined ratio, business area Private	82.6%	81.5%	+/- 1 percentage point	+/- 7.6	+/- 6.4	+/- 6.4	+/- 6.3
Combined ratio, business area Commercial	88.5%	85.2%	+/- 1 percentage point	+/- 7	+/- 6.9	+/- 6.4	+/- 6.2
Insurance revenue (net of insurance premium expense, EURm)		1,460	+/- 1 per cent			+/- 13.8	+/- 12.5
Claims incurred (EURm)	953	912	+/- 1 per cent	+/- 9.5	+/- 8.5	+/- 9.1	+/- 8.1

Reserve risk and its management and control

The insurance lines of business are divided into short-

tail i.e., those lines where the period from notification

until settlement is short and long-tail i.e., those lines

where the period from notification until settlement is

long. The main short-tail lines in Topdanmark are

buildings, other property, motor other and health

products registered via Oona A/S. For the short-tail

lines the claims are mainly settled within the first year.

Long-tail lines relate to personal injury and liability and

consist of the lines Workers' compensation, Accident,

Motor third party insurance and Commercial liability.

Composition of non-life provisions for outstanding

claims is presented in the following table.

Net liability for incurred claims by line of business

Topdanmark, 31 December 2023 and 31 December 2022


	2023		2022
	EURm	Duration	EURm	Duration
Motor other and MTPL	159	1.8	156	1.1
- whereof MTPL	133	2.3	133	2.3
Workers' compensation	813	7.4	773	7.0
Liability	105	2.0	99	2.3
Accident	179	2.1	173	1.7
Property	209	1.3	167	1.5
Marine, aviation, transport	1	1.0	2	1.2
Travel insurance	4	0.8	4	0.9
Income protection	23	0.9	21	0.9
Other	11	0.8	0	0.0
Total	1,503	4.4	1,395	4.2

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	FINANCIAL STATEMENTS 2023	157

Due to the longer period of claims settlement, the risk

profile of the long-tail lines of business are generally

more uncertain than that of the short-tail lines. It is not

unusual that claims in long-tail lines are settled three to

five years after notification and in rare cases up to ten

to fifteen years.

The reserve risk is calculated using Topdanmark’s

partial internal model for insurance risk. Workers’

compensation claims provision has by far the biggest

risk, followed by the other long-tail lines’ claims

provisions.

During such a long period of settlement, the levels of

compensation could be significantly affected by

changes in legislation, case-law or practice in the

compensation of claim incidents adopted by the Danish

Labour Market Insurance which decides on

compensation for injury and loss of earnings potential in

all cases of serious industrial injuries. The practice

adopted by the Danish Labour Market Insurance also

has some impact on the levels of compensation for

accident and personal injury within motor liability and

commercial liability insurance. Supreme court decisions

can also influence the provisions for former years

especially for Workers’ compensation.

The reserve risk represents mostly the ordinary

uncertainty of calculation and claims inflation, i.e., an

increase in the level of compensation due to the annual

increase in compensation per policy being higher than

the general development in prices or due to a change in

judicial practice or legislation. The sufficiency of the

provisions is tested in key lines by calculating the

provisions using alternative models as well, and then

comparing the compensation with information from

external sources, primarily statistical material from the

Danish Labour Market Insurance and the Danish Road

Sector/Road Directorate.

Sensitivity analysis, reserve risk

Topdanmark, 31 December 2023 and 31 December 2022


Insurance liabilities item	Risk factor	Change in risk parameter	Country	Effect EURm 2023	Effect EURm 2023 Net	Effect EURm 2022	Effect EURm 2022 Net
Discounted estimated future cash flows	Inflation increase	Increase by 1 percentage point	Denmark	50.7	50.7	46.5	46.5
Annuities and reated INBR	Decrease in mortality	Life expectancy increase by 1 year	Denmark	0.9	0.9	0.9	0.9
Discounted insurance liabilities, net	Decrease in discount rate	Decrease by 1 percentage point	Denmark	62.4	61.7	57.3	56.6

Underwriting risks in Hastings Group

Hastings provides motor, home insurance products, and

is a provider of regulated consumer credit in the current

for of personal loans. To the United Kingdom (UK)

market the motor and home insurance products are

provided through its Gibraltar-based general insurance

underwriting company Advantage.

For Solvency II reporting purposes the lines of business

are:

• Motor vehicle liability insurance (Motor liability)

• Other motor insurance (Motor other)

• Fire and other damage to property insurance

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	FINANCIAL STATEMENTS 2023	158

Net liability for incurred claims by line of business

Hastings, 31 December 2023 and 31 December 2022


	31 Dec 2023		31 Dec 2022
	EURm	Duration	EURm	Duration
Motor	755	2.2	763	2.1
Workers' compensation	0	0	0	0
Liability	0	0	0	0
Accident	0	0	0	0
Property	40	1.8	37	1.2
Marine, aviation, transport	0	0	0	0
Other
Total	794	2.2	800	2.1

Sensitivity analysis, premium risk

Hastings, 31 December 2023 and 31 December 2022


Key figure	Level, 2023 (Gross)	Level, 2023 (Net)	Change	Effect on pre-tax profit (Gross), EURm		Effect on pre-tax profit (Net), EURm
Key figure	Level, 2023 (Gross)	Level, 2023 (Net)	Change	2023	2022	2023	2022
Operating ratio		90%	+/- 1 percentage point			+/- 12.5	+/- 9.9
Insurance revenue (net of reinsurance premium expense)	1719	1128	+/- 1 per cent	+/- 17.2	+/- 14.1	+/- 11.3	+/- 8.8
Claims incurred	1135	714	+/- 1 per cent	+/- 11.4	+/- 10.1	+/- 7.1	+/- 4.9

Pricing risk

Advantage's risk appetite require management to

maintain rates that are projected to achieve loss ratios

within the target loss ratio range. As a response to

market conditions rates were regularly adjusted, after

review by management, to remain competitive and

provide customer-focused benefits to policyholders.

The rate changes were regularly reviewed and amended

in keeping with an agile approach to pricing and

appropriately factoring in ongoing claims cost inflation

risk. Robust technical product pricing with strong

governance controls for both Motor and Household

products is the principal way Advantage manages

insurance risk exposures in order to mitigate the risk of

pricing ineffectively.

Changes to technical rates are constructed based upon

the analysis of current and future predicted frequency

and severity patterns, new business acquisition and

existing case models to ensure an appropriate risk

spread and balance. Competitor monitoring also feeds

into the development of pricing and product

segmentation.

Weekly governance arrangements approve changes to

rate plan and review account performance. The Rating

Analysis Committee approves decisions for segment

level rate changes and book level rate changes. The

goal is to ensure that the business being written will be

profitable.

Audits are conducted on a regular basis to ensure that

all underwriting and rating rules are being applied

correctly.

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	FINANCIAL STATEMENTS 2023	159

Reserve risk

Advantage does not take significant reserve risk and

holds an internal risk margin to a 75 per cent confidence

level versus internal best estimate. Since reserving is

subject to expert judgment the Group Chief Actuary

calculates the best estimate, the Hastings Group Senior

Actuary verifies the data, appropriateness of techniques

utilised, and assumptions used to create the best

estimate and an additional best estimate is created by a

fully independent third party. Advantage has a series of

monthly, quarterly, and semi-annual controls to ensure

reserve adequacy.

Hastings’ Gross Written Premiums (GWP) for 2023

amounted to EUR 1,706 million.

Breakdown of Gross Written Premiums

Hastings, 31 December 2023, Total EUR 1,706 million (1,313)

Breakdown_of_gross_written_premiums_b_Hastings_15-2-24.svg

Breakdown_of_gross_written_premiums_c_Hastings_15-2-24.svg

Advantage maintained a disciplined approach to pricing

despite continued market competition. Live customer

policies grew year on year in 2023. This disciplined but

agile underwriting and pricing approach led to many

selective rate adjustments during 2023.

Claims cost inflation had a large influence on the risk

profile for 2023. Advantage implemented a number of

standard monthly rate increases over the year to

mitigate the impact of this. Effective pricing, claims

management and frequency experience has resulted in

profits and capital with the solvency ratio within or

above of Advantage’s target range during the year.

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	FINANCIAL STATEMENTS 2023	160

Sensitivity analysis, reserve risk

Hastings, 31 December 2023 and 31 December 2022


Insurance liabilities item	Risk factor	Change in risk parameter	Effect Gross EURm 2023	Effect Net EURm 2023	Effect Gross EURm 2022	Effect Net EURm 2022
Discounted estimated future cash flows	Inflation increase	Increase by 1 percentage point	63.0	10.1	56.3	8.9
Periodic Payment Orders (PPOs)	Decrease in mortality	Life expectancy increase by 1 year	3.1	0.1	3.2	0.1
Discounted insurance liabilities, net	Decrease in discount rate	Decrease by 1 percentage point	37.4	10.2	33.4	9.0

Market risks at Sampo Group

For all subsidiaries, their insurance liabilities and the

company specific risk appetite are the starting points

for their investment activities. The insurance liabilities

including loss absorbing buffers as well as the risk

appetite of If, Topdanmark, and Hastings differ, and as a

result the structures and risks of the investment

portfolios and the balance sheets of the three

companies differ respectively. Sampo Group’s

investment assets presented in the tables and graphs in

this section do not include investments in the shares of

subsidiaries.

The total amount of Sampo Group’s investment assets

as at 31 December 2023 was EUR 17,160 million (22,346)

as presented in the following graph.

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	FINANCIAL STATEMENTS 2023	161

Development of investments

If, Topdanmark, Hastings, and Sampo plc, 31 December 2023 and 31 December 2022

The content of the figures in this graph is different compared to financial asset line presented in the balance sheet.

Sampo plc figures do not include intragroup items.

* For 2023 private equity also includes direct holdings in non-

listed equities.

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	FINANCIAL STATEMENTS 2023	162

Investment activities and market risk taking are

arranged pro-actively in such a way that there is no

significant overlap between the wholly owned

subsidiaries’ single name risks except with regards to

Nordic banks where the companies have their extra

funds in short-term money market assets and cash.

From the diversification of the assets of the balance

sheet perspective, Topdanmark is a positive factor

because the role of Danish assets is dominant in its

portfolios and especially the role of Danish covered

bonds is central. In Sampo Group’s other insurance

companies’ portfolios the weight of Danish investments

has been immaterial. Even though Hastings’ investment

portfolio is smaller than other Group companies’

portfolios, it has had a positive impact on the

diversification of Sampo Group’s investments. Most

Hastings’ assets are British investments, denominated in

pound sterling, which is a market that other Sampo

Group companies have very limited exposure to.

Moreover, Hastings’ investment portfolio consists

mainly of investment grade fixed income investments.

In the next paragraphs concentrations by homogenous

risk groups and by single names are presented first and

after that balance sheet level risks are discussed.

Holdings by sector, geographical area and

asset class

Regarding fixed income and equity exposures financial

institutions and covered bonds have a material weight

in the group-wide portfolios whereas the role of public

sector investments is quite limited. Most of these assets

are issued by Nordic corporates and institutions,

although Hastings brings some diversification in this

respect. Most corporate issuers, although being based

in the Nordic countries, are operating at global markets

and hence their performance is not that dependent on

the Nordic markets. Exposures by sector, asset class

and rating are presented in the following table. Sampo

considers that the balance sheet values describe the

maximum exposure amount exposed to credit risk.

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	FINANCIAL STATEMENTS 2023	163

Exposures by sector, asset class and rating

Sampo Group, 31 December 2023


EURm	AAA	AA+ - AA-	A+ - A-	BBB+ - BBB-	BB+ - C	D	Non- rated	Fixed income total	Listed equities	Other	Counter- party risk	Total	Change from 31 Dec 2022
Basic industry	0	0	42	198	31	0	35	307	40	0	0	346	-33
Capital goods	0	14	147	143	34	0	140	478	520	0	0	998	105
Consumer products	1	40	232	388	23	0	92	776	191	0	0	967	-45
Energy	0	19	19	0	0	0	63	100	18	0	0	119	-110
Financial institutions	33	1,420	2,339	773	51	0	45	4,661	0	728	67	5,456	-1,304
Governments	427	46	0	0	0	0	0	473	0	0	0	473	-21
Government guaranteed	46	25	0	0	0	0	0	71	0	0	0	71	-17
Health care	0	1	15	125	9	0	46	196	1	0	0	197	-20
Insurance	9	10	51	109	7	0	234	420	0	112	0	532	117
Media	0	0	0	0	0	0	15	15	0	0	0	15	-14
Packaging	0	0	0	0	25	0	0	25	0	0	0	25	1
Public sector, other	504	18	0	0	0	0	0	523	0	0	0	523	-190
Real estate	0	58	140	221	20	0	184	623	0	14	0	637	-122
Services	0	0	41	183	108	0	26	358	0	2	0	360	214
Supranationals	197	0	0	0	0	0	0	197	0	0	0	197	-30
Technology and electronics	0	12	27	51	0	0	65	155	0	1	0	156	4
Telecommunications	0	0	12	213	0	0	24	248	37	0	0	285	37
Transportation	0	49	73	15	0	0	80	217	0	0	0	217	-55
Utilities	0	0	72	207	60	0	65	404	0	0	0	404	-3
Others	0	0	16	17	0	0	31	64	4	22	0	90	74
Asset-backed securities	0	0	0	0	0	0	0	0	0	0	0	0	0
Covered bonds	3,895	0	32	0	0	0	95	4,022	0	0	0	4,022	-292
Funds	0	0	0	11	0	0	40	51	663	516	0	1,230	7
Clearing house	0	0	0	0	0	0	0	0	0	0	2	2	-33
Total	5,113	1,712	3,257	2,652	368	0	1,280	14,382	1,475	1,395	69	17,321	-1,731
Change from 31 Dec 2022	-141	-417	-204	251	-153	3	-208	-870	-1,074	692	-429	-1,681

In the table, both fixed income instruments and listed equities include direct and indirect investments.

Total assets differ from the graph Development of investments

due to derivatives.

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	FINANCIAL STATEMENTS 2023	164

Most of the financial institutions and covered bonds are

in the Nordic countries, which can be seen in the table

Fixed income investments in the financial sector, Sampo

Group, 31 December 2023 and 31 December 2022.

Fixed income investments in the financial sector

Sampo Group, 31 December 2023


EURm	Covered bonds	Cash and money market securities	Long-term senior debt	Long-term subordinated debt	Total	%
Sweden	1,776	191	566	169	2,702	32,1 %
Denmark	1,863	79	315	162	2,419	28,7 %
Finland	52	750	275	125	1,202	14,3 %
Norway	338	0	384	319	1,041	12,4 %
France	0	249	133	5	388	4,6 %
United States	0	2	179	0	181	2,2 %
Netherlands	0	0	92	21	113	1,3 %
Iceland	0	0	60	2	62	0,7 %
Switzerland	0	0	52	0	52	0,6 %
Canada	0	0	51	0	51	0,6 %
Ireland	0	0	47	0	47	0,6 %
United Kingdom	0	0	41	0	41	0,5 %
Australia	0	0	36	0	36	0,4 %
Austria	0	0	20	0	20	0,2 %
Germany	0	0	18	0	18	0,2 %
Spain	0	0	15	0	15	0,2 %
Belgium	0	0	15	0	15	0,2 %
New Zealand	0	0	11	0	11	0,1 %
Bermuda	0	0	0	7	7	0,1 %
Total	4,028	1,271	2,310	811	8,420	100,0 %

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	FINANCIAL STATEMENTS 2023	165

Fixed income investments in the financial sector

Sampo Group, 31 December 2022


EURm	Covered bonds	Cash and money market securities	Long-term senior debt	Long-term subordinated debt	Total	%
Denmark	1,813	869	156		2,839	24,3 %
Finland	1,729	157	552	165	2,603	22,3 %
Sweden	44	2,028	291	127	2,490	21,3 %
France	520		515	283	1,318	11,3 %
Norway	179		328	264	771	6,6 %
United States		2	346	2	350	3,0 %
United Kingdom		62	176	2	240	2,1 %
Canada	32		197		230	2,0 %
Netherlands			161	50	211	1,8 %
Ireland		138	27	24	188	1,6 %
Iceland			56	33	89	0,8 %
Germany		1	81		82	0,7 %
Spain			40		40	0,3 %
Gibraltar		40			40	0,3 %
Switzerland			26	13	40	0,3 %
Luxembourg		6	34		39	0,3 %
New Zealand			25		25	0,2 %
Australia			25		25	0,2 %
Austria			18		18	0,2 %
Bermuda			16		16	0,1 %
Belgium			14		14	0,1 %
Estonia				8	8	0,1 %
Cayman Islands			5		5	0,0 %
Jersey		0			0	0,0 %
Total	4,318	3,302	3,087	971	11,679	100,0 %

The public-sector exposure includes government bonds,

government guaranteed bonds and other public-sector

investments as shown in the tables Fixed income

investments in the public sector, Sampo Group 31

December 2023 and 31 December 2022. The public

sector has had a relatively minor role in Sampo Group’s

portfolios and these exposures have been mainly in the

Nordic countries.

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	FINANCIAL STATEMENTS 2023	166

Fixed income investments in the public sector

Sampo Group, 31 December 2023


EURm	Governments	Government guaranteed	Public sector, other	Total
Sweden	421	0	131	552
Norway	0	0	391	391
Supranationals	0	6	191	197
United States	46	0	0	46
Germany	0	46	0	46
Finland	0	25	0	25
Denmark	7	0	0	7
Total	473	77	713	1,264

Sampo Group, 31 December 2022


EURm	Governments	Governments guaranteed	Public sector, other	Total
Sweden	404		184	588
Norway			369	369
Finland	19	24		42
Supranationals			135	135
United Kingdom	71			71
Germany		52		52
France		10		10
Total	493	87	687	1,267

The listed equity investments of Sampo Group totalled

EUR 1,474 million at the end of year 2023 (2,884).

The geographical core of Sampo Group’s equity

investments is in the Nordic companies. The proportion

of Nordic companies’ equities corresponds to 50 per

cent of the total equity portfolio. This is in line with

Sampo Group’s investment strategy of focusing on

Nordic companies. However, these Nordic companies

are mainly competing in global markets, only a few are

operationally purely domestic companies. Hence, the

ultimate risk is not highly dependent on the Nordic

economies. A breakdown of the listed equity exposures

of Sampo Group is shown in the graph Breakdown of

listed equity investments by geographical regions,

Sampo Group, 31 December 2023 and 31 December

2022.

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	FINANCIAL STATEMENTS 2023	167

Breakdown of listed equity investments by geographical regions

Sampo Group, 31 December 2023 and 31 December 2022

Breakdown_of_listed_equity_investments_by_geographical_regions_b_Sampo_Group_19-2-24.svg

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	FINANCIAL STATEMENTS 2023	168

Largest holdings by single name

The largest exposures by individual issuers and

counterparties are presented in the tables Largest

exposures by issuer and asset class, Sampo Group 31

December 2023 and 31 December 2022.

Largest exposures by issuer and asset class

Sampo Group, 31 December 2023


Issuer	Total, EURm	% of total investment assets	Cash & short-term fixed income	Long-term fixed income, total	Long-term fixed income: Government guaranteed	Long-term fixed income: Covered bonds	Long-term fixed income: Senior bonds	Long-term fixed income: Tier 1 and Tier 2	Equities	Uncolla- teralised part of derivatives
Nordea Bank	959	6%	284	672	0	489	125	57	0	2
Svenska Handelsbanken	814	5%	108	705	0	622	44	39	0	0
Swedbank	713	4%	0	713	0	589	99	25	0	0
Nykredit Realkredit A/S	598	3%	0	598	0	598	0	0	0	0
Realcredit Danmark	592	3%	0	592	0	592	0	0	0	0
Sweden	552	3%	0	552	0	0	552	0	0	0
NOBA	471	3%	0	46	0	0	34	12	425	0
Skandinaviska Enskilda Banken	439	3%	252	186	0	22	133	31	0	2
Danske Bank	429	2%	251	176	0	24	133	20	0	1
Norway	391	2%	0	391	0	0	391	0	0	0
Total top 10 exposures	5,958	35%	896	4,631	0	2,936	1,512	183	425	5
Other	11,202	65%
Total investment assets	17,160	100%

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	FINANCIAL STATEMENTS 2023	169

Largest exposures by issuer and asset class

Sampo Group, 31 December 2022


Issuer	Total, EURm	% of total investment assets	Cash & short-term fixed income	Long-term fixed income, total	Long-term fixed income: Government guaranteed	Long-term fixed income: Covered bonds	Long-term fixed income: Senior bonds	Long-term fixed income: Tier 1 and Tier 2	Equities	Uncolla- teralised part of derivatives
Nordea Bank	1,416	6%	715	699	0	496	130	73	0	2
Skandinaviska Enskilda Banken	818	4%	639	178	0	65	93	20	0	1
Danske Bank	801	4%	516	286	0	119	137	29	0	0
Nykredit Realkredit A/S	645	3%	0	645	0	645	0	0	0	0
BNP Paribas	601	3%	541	60	0	0	60	0	0	0
Sweden	588	3%	0	588	0	0	588	0	0	0
Realkredit Danmark	514	2%	0	514	0	514	0	0	0	0
Nordax	425	2%	0	0	0	0	0	0	425	0
Norway	369	2%	0	369	0	0	369	0	0	0
Saxo Bank	345	2%	0	31	0	0	13	17	314	0
Total top 10 exposures	6,522	29%	2,411	3,368	0	1,840	1,389	140	739	3
Other	15,824	71%
Total investment assets	22,346	100%

The largest high-yield and non-rated fixed income

investment single-name exposures are presented in the

tables Ten largest direct high yield and non-rated fixed

income investments, Sampo Group, 31 December 2023

and 31 December 2022. Furthermore, the largest direct

listed equity exposures are presented in the tables Ten

largest direct listed equity investments, Sampo Group,

31 December 2023 and 31 December 2022.

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	FINANCIAL STATEMENTS 2023	170

Ten largest direct high yield and non-rated fixed income investments and direct listed equity investments

Sampo Group, 31 December 2023


Ten largest direct high yield and non-rated fixed income investments	Rating	Total, EURm	% of total direct fixed income investments	Ten largest direct listed equity investments	Total, EURm	% of total direct equity investments
Saab	NR	56	0,4 %	NOBA*	425	19,3 %
NOBA	NR	46	0,3 %	Saxo Bank*	302	13,7 %
ALM Equity	NR	38	0,3 %	Volvo	180	8,2 %
Ellevio Holding 1 AB	NR	35	0,2 %	Nexi S.p.A.**	149	6,8 %
Visma Group Holding	NR	35	0,2 %	ABB	86	3,9 %
Altera Infrastructure Holdings LLC	NR	30	0,2 %	Autoliv Inc	64	2,9 %
Swedavia	NR	30	0,2 %	Husqvarna	59	2,7 %
Campus Byen A/S	NR	29	0,2 %	Nederman Holding	56	2,6 %
Resource Group TRG	NR	27	0,2 %	Veidekke	46	2,1 %
Huhtamaki	BB+	25	0,2 %	Volvo Cars	38	1,7 %
Total top 10 exposures		351	2,4 %	Total top 10 exposures	1,405	63,8 %
Other direct fixed income investments		13,980	97,6 %	Other direct equity investments	797	36,2 %
Total direct fixed income investments		14,331	100,0 %	Total direct equity investments	2,202	100,0 %

* Although NOBA and Saxo Bank are not listed companies, they are major equity investments in Sampo plc's portfolio and are therefore included in the table.

** Investment in Nexi S.p.A is managed by HF Evergood

partners.

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	FINANCIAL STATEMENTS 2023	171

Ten largest direct high yield and non-rated fixed income investments and direct listed equity investments

Sampo Group, 31 December 2022


Ten largest direct high yield and non-rated fixed income investments	Rating	Total, EURm	% of total direct fixed income investments	Ten largest direct listed equity investments	Total, EURm	% of total direct equity investments
Ellevio Holding 1 AB	NR	60	0,4 %	Nordax*	425	21,3 %
Teollisuuden Voima	BB+	54	0,3 %	Saxo Bank*	314	15,7 %
Saab	NR	53	0,3 %	Volvo	131	6,6 %
Granite Debtco 9 Limited	NR	49	0,3 %	ABB	114	5,7 %
Granite Debtco 10 Limited	NR	45	0,3 %	Enento Group	62	3,1 %
Huhtamaki	BB+	44	0,3 %	Volvo Car	55	2,8 %
ALM Equity	NR	43	0,3 %	Nederman Holding	54	2,7 %
Pohjolan Voima	NR	41	0,3 %	Husqvarna	52	2,6 %
Visma Group Holding	NR	36	0,2 %	Vaisala	50	2,5 %
Schibsted	NR	35	0,2 %	Yara International	48	2,4 %
Total top 10 exposures		459	2,8 %	Total top 10 exposures	1,306	65,5 %
Other direct fixed income investments		15,790	97,2 %	Other direct equity investments	689	34,5 %
Total direct fixed income investments		16,249	100,0 %	Total direct equity investments	1,995	100,0 %

The exposures in fixed income instruments issued by

non-investment grade issuers are significant, because a

relatively small number of Nordic companies are rated.

Furthermore, many of the Nordic rated companies have

a high yield rating.

Balance sheet concentrations

In general, Sampo Group is structurally dependent on

the performance of the Nordic economies as already

described earlier. Sampo Group is also economically

exposed to a fall in interest rates. This follows from the

duration of insurance liabilities being longer than fixed

income asset duration in If. In Topdanmark and Hastings

interest rate risk of the balance sheet is limited and

hence Topdanmark or Hastings are not increasing

interest rate risk materially at the Group level.

Sampo Group benefits when interest rates rise, as the

economic value of insurance liabilities decreases more

than the value of assets backing them.

Market risks at If Group

The total market value of If’s investment portfolio at 31

December 2023 was EUR 11,156 million (10,719). A large

part of the fixed income portfolio was concentrated to

corporate bonds issued by financial institutions and

bank account balances amounted to 29.6 per cent of

the fixed income portfolio. When including covered

bonds, the concentration to financial institutions was

52.0 per cent. The remainder of the fixed income

portfolio consists of exposure to other sectors with real

estate representing the second largest concentration of

6.3 per cent.

The composition of the If investment portfolios by asset

class at year end 2023 and at year end 2022 as well as

average maturities of fixed income investments, are

shown in the table Investment allocation, If, 31

December 2023 and 31 December 2022.

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	FINANCIAL STATEMENTS 2023	172

Investment allocation

If, 31 December 2023 and 31 December 2022


	2023			2022
Asset class	Market value, EURm	Weight, %	Average maturity, years	Market value, EURm	Weight, %	Average maturity, years
Fixed income total	9,905	89%	3.1	9,541	89%	2.9
Money market securities and cash	240	2%	0.0	272	3%	0.0
Government bonds	1,065	10%	3.7	1,030	10%	3.5
Credit bonds, funds and loans	8,600	77%	3.2	8,239	77%	2.9
Covered bonds	2,181	20%	2.8	2,505	23%	3.0
Investment grade bonds and loans	4,327	39%	3.5	3,649	34%	2.8
High-yield bonds and loans	1,137	10%	2.8	1,088	10%	2.7
Subordinated / Tier 2	490	4%	3.0	555	5%	2.9
Subordinated / Tier 1	466	4%	2.9	442	4%	3.0
Hedging swaps	0	0%	-	0	0%	-
Listed equity total	1,244	11%	-	1,169	11%	-
Finland	0	0%	-	0	0%	-
Scandinavia	718	6%	-	630	6%	-
Global	526	5%	-	539	5%	-
Alternative investments total	5	0%	-	5	0%	-
Real estate	0	0%	-	1	0%	-
Private equity	4	0%	-	4	0%	-
Biometric	0	0%	-	0	0%	-
Commodities	0	0%	-	0	0%	-
Other alternative	0	0%	-	0	0%	-
Trading derivatives	2	0%	-	4	0%	-
Asset classes total	11,156	100%	-	10,719	100%	-
FX Exposure, gross position	134	-	-	73	-	-

If’s investment management strategy is conservative,

with a low equity share and low fixed-income duration.

The Investment Policy is the principal document for

managing market risk. If also has a separate

Responsible Investment Policy, expanding the scope of

the responsible investment processes and increasing

alignment across the Sampo Group. Both investment

performance and market risk are actively monitored

and controlled by the Investment Control Committee

monthly. Other limits, such as the allocation limits, issuer

and counterparty limits, sensitivity limits for interest

rates and credit spreads as well as the regulatory capital

requirements are regularly monitored.

Market risks of balance sheet

Asset and liability management risk

If's exposure to ALM risk arises mainly from changes in

interest rates, inflation, and currency movements. The

ALM risk is considered through the risk appetite

framework and its management and governance are

based on If’s investment policies. To maintain the ALM

risk within the overall risk appetite, the insurance

liabilities may be matched by investing in appropriate

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	FINANCIAL STATEMENTS 2023	173

fixed income instruments and by using currency and

interest rate derivatives.

Interest rate risk

If's exposure to interest rate risk from insurance

contracts issued and reinsurance contracts held arises

from the net liability for incurred claims, where future

claims payments are discounted to a present value and

therefore impacted by changes in discount rates. The

duration sensitivity to changes in interest rates in the

net liability for incurred claims is analysed in the

Reserve risk section. For more information see the

tables Sensitivity analysis, reserve risk, If, 2023 and

2022 in the section Underwriting risks.

If’s exposure to interest rate risk from financial

instruments arises primarily from fixed income

investments.

If is negatively affected when interest rates are

decreasing, as the duration of insurance liabilities is

longer than the duration of investment assets. During

2023 interest rates maintained their higher level

compared to recent history and If invested in

instruments with somewhat longer maturities. Interest

rate sensitivity in terms of the average duration of fixed

income investments was 2.4 years on 31 December

2023 (1.9). The respective duration of insurance

liabilities was 6.2 years (6.0). However, the fixed income

portfolio is significantly larger than the amount of

insurance liabilities which mitigates the duration

mismatch respectively.

Interest rate risk relating to insurance liabilities is, in

accordance with the Investment Policy, considered in

the composition of investment assets. The overall

interest rate risk is managed by sensitivity limits for

instruments sensitive to interest rate changes.

Currency risk

If writes insurance policies that are mostly denominated

in the Scandinavian currencies and in euro. Currency

risk is reduced by matching insurance liabilities with

investment assets in corresponding currencies or by

using currency derivatives. The currency exposure in

insurance operations is hedged to the base currency on

a regular basis. The currency exposure in investment

assets is monitored weekly and hedged when the

exposure has reached a specific level, set with respect

to cost efficiency and minimum transaction size. An

active currency management can be performed within

set limits. The transaction risk positions against the

Swedish krona are shown in the tables Transaction risk

position, If, 31 December 2023 and 31 December 2022.

The tables show the net transaction risk exposures and

the changes in the value of positions given a 10 per cent

decrease in the value of the functional currency

Transaction risk position

If, 31 December 2023


Base currency SEK (in EURm)	EUR	USD	JPY	GBP	SEK	NOK	DKK	Other	Total, net
Insurance operations	-3,255	-180	0	-49	37	-2,233	-1,114	-29	-6,823
Investments	3,091	319	0	24	113	1,869	187	0	5,604
Derivatives	117	-123	5	22	-168	350	916	22	1,141
Transaction risk, net position	-47	15	5	-4	-18	-13	-11	-7	-79
Sensitivity: SEK -10%	-5	2	0	0	-2	-1	-1	-1	-8

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	FINANCIAL STATEMENTS 2023	174

Transaction risk position

If, 31 December 2022


Base currency SEK (in EURm)	EUR	USD	JPY	GBP	SEK	NOK	DKK	Other	Total, net
Insurance operations	-3,739	-185	0	-33	-11	-2,318	-1,029	-28	-7,342
Investments	2,304	297	1	11	108	2,071	263	5	5,058
Derivatives	1,370	-113	13	16	-78	229	760	15	2,211
Transaction risk, net position	-66	-1	13	-7	19	-18	-6	-8	-73
Sensitivity: SEK -10%	-7	0	1	-1	2	-2	-1	-1	-7

The transaction risk position in SEK represents exposure in foreign subsidiaries/branches within If with a functional currency other than SEK.

In addition to transaction risk, If is also exposed to

translation risk which at a Group level stems from

foreign operations with other functional currencies than

SEK.

Liquidity risk

If’s liquidity risk is limited since premiums are collected

in advance and large claim payments are usually known

a long time before they fall due. The Cash Management

unit is responsible for liquidity planning. To identify

liquidity risk, expected cash flows from investment

assets and insurance liabilities are analysed regularly,

taking both normal market conditions and stressed

conditions into consideration. Liquidity risk is reduced

by investing in assets that are traded in liquid markets.

The maturities of cash flows from financial instruments,

insurance liabilities and reinsurance contracts are

presented in the tables Cash flows according to

contractual maturity, If, 31 December 2023 and 31

December 2022. The average maturity of fixed income

investments was 3.2 years (2.9). In the table, financial

assets and liabilities are divided into contracts with a

contractual maturity profile, and other contracts. Only

the carrying amount is shown for the other contracts.

The table also shows expected future cash flows for

insurance liabilities and reinsurance assets, which by

nature are inherently associated with a degree of

uncertainty.

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	FINANCIAL STATEMENTS 2023	175

Cash flows according to contractual maturity

If, 31 December 2023


EURm	Carrying amount total	Carrying amount without contractual maturity	Carrying amount with contractual maturity	Cash flows
EURm	Carrying amount total	Carrying amount without contractual maturity	Carrying amount with contractual maturity	2024	2025	2026	2027	2028	2029- 2038	2039-
Financial assets	11,296	1,485	9,812	1,605	1,835	2,142	2,561	1,400	1,487	0
Financial assets (non-derivatives)	11,275	1,485	9,791	1,585	1,835	2,142	2,561	1,400	1,487	0
Interest rate swaps	2	0	2	2
FX derivatives	19	0	19	19
Asset for incurred claims	527	0	527	328	108	44	19	11	18	1
Financial liabilities	-550	0	-550	-402	-31	-137	0	0	0	0
Financial liabilities (non-derivatives)	-492		-492	-344	-31	-137	0	0	0	0
Interest rate swaps
FX derivatives	-58	0	-58	-58	0	0	0	0	0	0
Lease liabilities	-148	0	-148	-27	-26	-23	-20	-14	-47	0
Liability for incurred claims and other insurance related payables	-6,443	0	-6,443	-2,483	-794	-471	-339	-262	-1,301	-795

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	FINANCIAL STATEMENTS 2023	176

Cash flows according to contractual maturity

If, 31 December 2022


EURm	Carrying amount total	Carrying amount without contractual maturity	Carrying amount with contractual maturity	Cash flows
EURm	Carrying amount total	Carrying amount without contractual maturity	Carrying amount with contractual maturity	2023	2024	2025	2026	2027	2028- 2037	2038-
Financial assets	10,943	1,464	9,479	1,647	2,178	1,811	2,023	2,266	862	0
Financial assets (non-derivatives)	10,888	1,464	9,424	1,596	2,177	1,811	2,023	2,266	862	0
Interest rate swaps	4	0	4	3	1	0	0	0	0	0
FX derivatives	50	0	50	48	0	0	0	0	0	0
Asset for incurred claims	236	0	236	127	48	24	13	8	15	1
Financial liabilities	-628	-48	-580	-436	-8	-35	-138	0	0	0
Financial liabilities (non-derivatives)	-621	-48	-573	-429	-8	-35	-138	0	0	0
Interest rate swaps
FX derivatives	-7	0	-7	-6	0	0	0	0	0	0
Lease liabilities	-160	0	-160	-26	-23	-23	-22	-18	-59	0
Liability for incurred claims and other insurance related payables	-6,014	0	-6,014	-2,215	-734	-469	-334	-271	-1,248	-743

In the table, financial assets and liabilities are divided

into contracts that have an exact contractual maturity

profile, and other contracts. Only the carrying amount is

shown for the other contracts. In addition, the table

shows expected cash flows for net technical provisions,

which by their nature, are associated with a certain

degree of uncertainty. Cashflows related to assets

without contractual maturity are not included in the

table, although they are covering the 2023 cashflows,

which in the table are negative..

Market risks at Topdanmark Group

In general, long-term value creation shall be based

mainly on the acceptance of insurance risks. To

supplement the profit from insurance activities,

Topdanmark accepts a certain level of market risks,

given its strong liquidity position and stable, high

earnings from insurance operations. Hence, in addition

to fixed income instruments, Topdanmark has invested,

among other things, in equities and fixed income assets

to improve the average investment return.

Market risks are kept on an appropriate level in order to

limit negative profit and loss effects to very

unfavourable financial market scenarios. The investment

portfolio shall be managed to ensure that market risks

will not endanger the insurance operations even in

unfavourable market conditions.

To achieve company level targets, the investment policy

sets the company's objectives, strategies, organisation,

and reporting practices on investments. The investment

strategy is more precisely determined in terms of

market risk limits and specific requirements for certain

investments and sub-portfolios (risk appetite). The

investment strategy is determined by the Board and

revised at least once a year. Appropriate financial risk

mitigation techniques are used.

When selecting the investment assets, a portfolio

composition that matches the risk features of the

corresponding liabilities is sought. The purpose of the

investment policy is also to ensure that the company

has effectively implemented the organisation, systems,

and processes necessary to identify, measure, monitor,

manage and report on investment risks to which it is

exposed.

When market risks are measured and managed, all

exposures are included, regardless of whether they

arise from active portfolio management of investments

or from annuities, which are considered market risk.

As of 1 December 2022, when the closing deal between

Topdanmark Forsikring and Nordea was finalised, the

new investment department took over all front office

capabilities for Topdanmark Forsikring. The investment

policy and thereby the overall risk profile and strategic

asset allocation is mainly unchanged. However, the

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	FINANCIAL STATEMENTS 2023	177

investment strategy has been altered. As part of the

closing deal, the co-investing arrangement between

Topdanmark Forsikring and Topdanmark Livsforsikring

has been terminated. The exposures have been shifted

to ETFs (Exchange Traded Funds). The original asset

classes and geographical exposures are unchanged. The

CLO-portfolio has been sold. The credit exposure is

managed through a High Yield ETF (EUR).

The purpose of these changes is to keep the risk profile

unchanged and use index trackers to have the right

exposures that comply with the set risk limits, ESG

policy etc.

Investment allocation

Topdanmark, 31 December 2023 and 31 December 2022


	Topdanmark
	31 Dec 2023		31 Dec 2022
Asset class	Market value, EURm	Weight, %	Market value, EURm	Weight,%
Fixed income total	1,898	94%	2,422	94%
Money market securities and cash	1	0%	544	21%
Government and mortgage bonds	1,766	88%	1,722	67%
Credit bonds	43	2%	39	2%
Index-linked bonds	88	4%	91	4%
CLOs	0	0%	26	1%
Listed equity total	81	4%	111	4%
Denmark	15	1%	25	1%
Scandinavia	2	0%	2	0%
Global	64	3%	85	3%
Alternative investments total	34	2%	35	1%
Real estate	0	0%	0	0%
Unlisted equities and hedge funds	34	2%	35	1%
Trading derivatives	1	0%	1	0%
Asset classes total	2,014	100%	2,569	100%

The exposure in equities outside Denmark and credit bonds has been adjusted by the use of derivatives. Unlisted equities and hedge funds include also private equity and direct holdings in non-listed

equities

The equity portfolios, excluding associated companies,

are well-diversified and without large concentrations.

Investment assets are mostly comprised of government

and Danish mortgage bonds. These assets are interest

rate sensitive and to a significant extent equivalent to

the total interest rate sensitivity of the non-life

insurance liabilities. Consequently, the return on

government and mortgage bonds should be assessed in

connection with return and revaluation of non-life

insurance liabilities.

The small allocation to credit bonds is primarily exposed

to European issuers.

Index-linked bonds comprise primarily Danish mortgage

bonds for which the coupon and principal are index-

linked.

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	FINANCIAL STATEMENTS 2023	178

Market risks of balance sheet

Interest rate risk

Interest rate risk is calculated for assets, liabilities, and

derivative instruments, for which the carrying amount is

dependent on the interest rate level. Regarding

insurance liabilities Topdanmark is exposed to interest

rate risk due to provisions for outstanding claims.

Shifting the market yield curve upwards and

downwards or changing its shape leads to changed

market values of assets and derivatives and thus to

unrealised gains or losses.

When assessing the value and sensitivity of insurance

provisions Topdanmark has used the Solvency II

discount curve that is based on the market yield curve.

Generally, the interest rate risk is limited and controlled

by investing in interest-bearing assets in order to

reduce the overall interest rate exposure of the assets

and liabilities to the desired level. Therefore, the Danish

mortgage bonds and government bonds have a central

role in the asset portfolios. To further reduce the

interest rate sensitivity of the balance sheet, interest

rate swaps have been used for hedging purposes.

Equity risk

The Danish part of the equity portfolio is based on the

OMXCCAP index and is approximated by the ETF Xact

OMXC25. The rest of the equity holdings are in the

foreign equity portfolio that seeks to track the MSCI

World DC index by the relevant geographical ETF in

USA, Europe and Japan. As a result, Topdanmark’s

equity holdings are well-diversified both in terms of

geographical and company-specific risks.

Real estate risk

Real estate risk is limited to properties in own use and

located in Ballerup and Viby. The properties are valued

in accordance with the rules of the Danish FSA i.e., at

market value taking the level of rent and the terms of

the tenancy agreements into consideration.

Spread risk

Most of Topdanmark's interest-bearing assets comprise

of AAA rated Danish mortgage bonds. The risk of credit

losses is minor due to the high credit quality of the

issuers and because investments have been made at

spreads that are in balance with Topdanmark’s desired

risk ratio levels. The portfolio is well-diversified by

issuer, issuer type and capital centres, and therefore, the

exposure to concentration risk is insignificant.

The investment policy stipulates that the portfolio must

be well-diversified by the number of counterparties and

by the amount of exposure to individual counterparties.

The main source of spread risk is the mortgage bonds.

Due to high allocation of these investments in the

portfolios, spread risk is the most material source of

market risk SCR.

Currency risk

In practice, the investment assets are the only source of

currency risk while the insurance liabilities are in Danish

krones. The currency risk is mitigated by derivatives and

net exposures in different currencies are minor except

in the euro.

The currency risk is assessed based on the SCR. The

value of the base currency is shocked by 25 per cent

against most of the currencies except against the euro

where the largest exposure exists, and the shock is 0.39

per cent, because the Danish krone is pegged to the

euro.

Inflation risk

Future inflation is implicitly included in the models

Topdanmark uses to calculate its insurance liabilities.

The insurance liabilities are calculated based on the

expected future indexation of wages and salaries.

An expected higher future inflation rate would generally

be included in the insurance liabilities with a certain

time delay, while at the same time the result would be

impacted by higher future indexation of premiums. To

reduce the risk of inflation within Workers'

compensation, Topdanmark uses index-linked bonds

and inflation derivatives to hedge a proportion of the

expected cash flows sensitive to future inflation. The

inflation sensitivity of capitalisation factors is not

hedged.

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

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≡

Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	179

Liquidity risk

Topdanmark Group has a strong liquidity position.

Firstly, as premiums are paid in the beginning of the

coverage period, liquidity risk related to customers’

payments is very limited. Secondly, the nature of a

diversified insurance business means that it is highly

unlikely that a liquidity shock could occur. Insurance

liabilities are quite stable and on the investment side

money market investments are complemented by a

large portfolio of liquid listed Danish government and

mortgage bonds.

The maturities of cash flows from financial instruments,

insurance liabilities and reinsurance contracts are

presented in the table Cash flows according to

contractual maturity, Topdanmark, 31 December 2023. .

Cash flows according to contractual maturity

Topdanmark, 31 December 2023


EURm	Carrying amount total	Carrying amount without contractual maturity	Carrying amount with contractual maturity	Cash flows
EURm	Carrying amount total	Carrying amount without contractual maturity	Carrying amount with contractual maturity	2024	2025	2026	2027	2028	2029- 2038	2039-
Financial assets	1,861		1,861	420	424	321	170	166	505	113
Financial assets (non-derivatives)	1,859		1,859	420	424	321	170	166	504	113
Interest rate swaps	1		1	0	0	0	0	0	1	0
FX forwards	0		0	0
Asset for incurred claims	79		79	58	9	4	3	2	4
Financial liabilities	299	128	172	10	9	102	59	1	21	1
Financial liabilities (non-derivatives)	275	128	148	9	7	101	57
Interest rate swaps	24		24	1	2	1	1	1	21	1
FX derivatives	0		0	0
Lease liabilities
Liability for incurred claims and other insurance related payables	1,582		1,582	603	249	183	118	87	303	184

Market risks at Hastings Group

Hastings’ investment portfolio has been designed to

generate a targeted return whilst operating within the

conservative risk appetite parameters set by the Board.

Management aims to prudently operate within its risk

appetite. The risk appetite includes a low appetite for

losses arising from volatility of market prices affecting

values of assets and liabilities and for assets not

matching the profile of liabilities. As a result,

the investment strategy includes only a very limited

amount of equity exposure.

The total market value of Hastings' investment portfolio

at 31 December 2023 was EUR 1,680 million (1,320). The

investment portfolio was dominated by investment

grade fixed income investments, which comprised 69

per cent of total investment assets. The rest was

invested in money market securities and cash

amounting to 27 per cent, and high yield and alternative

investments with a combined allocation of 4 per cent.

The composition of the Hastings investment portfolios

by asset class at year end 2023 and at year end 2022 as

well as average maturities of fixed income investments,

are shown in the table Investment allocation, Hastings,

31 December 2023 and 31 December 2022.

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	FINANCIAL STATEMENTS 2023	180

Investment allocation

Hastings, 31 December 2023 and 31 December 2022


	2023			2022
Asset class	Market value, EURm	Weight, %	Average maturity, years	Market value, EURm	Weight, %	Average maturity, years
Fixed income total	1,646	98%	2.2	1,287	98%	3.3
Money market securities and cash	448	27%	0.0	246	19%	0.0
Government bonds	0	0%	3.9	71	5%	0.1
Credit bonds, funds, and loans	1,198	71%	3.0	970	74%	4.3
Covered bonds	0	0%	0.0	0	0%	0.0
Investment grade bonds and loans	1,164	69%	5.0	954	72%	4.4
High-yield bonds and loans	27	2%	4.9	16	1%	4.0
Subordinated / Tier 2	7	0%	—	0	0%	—
Subordinated / Tier 1	0	0%	—	0	0%	—
Hedging swaps	0	0%	—	0	0%	—
Listed equity total	0	0%	—	0	0%	—
UK	0	0%	—	0	0%	—
Global	0	0%	—	0	0%	—
Alternative investments total	34	2%	—	32	2%	—
Real estate	0	0%	—	0	0%	—
Private equity	0	0%	—	0	0%	—
Biometric	0	0%	—	0	0%	—
Commodities	0	0%	—	0	0%	—
Other alternative	34	2%	—	32	2%	—
Trading derivatives	0	0%	—	0	0%	—
Asset classes total	1,680	100%	—	1,320	100%	—
FX Exposure, gross position	0	—%		0	—%	—

The core investment portfolio of debt securities,

supplemented by a diversified portfolio of holdings in

collective investment schemes, is held by Advantage.

The Advantage Board works with the investment

managers and investment consultants to maximise

return whilst minimising risk and preserving capital. The

criteria for the portfolio structure, classes of holdings

and individual limits are consistent with a very low risk

appetite. These investment rules are monitored on a

quarterly basis internally and using an external

consultancy. The monitoring outputs are provided to

the Investment Committee and Risk & Compliance

Committee quarterly.

Advantage made no direct use of derivatives during the

period. Derivatives are, however, utilised within

Investment Funds in which Advantage has a share, both

for hedging purposes and to generate additional return.

Interest rate risk

Hastings manages balance sheet interest rate risk

principally through matched duration of assets and

liabilities, meaning that interest rates are aligned as far

as possible, and interest rate risk is reduced. This is

monitored in the quarterly Investment Committee

meetings and includes adherence to tight duration

mismatch tolerances which form part of the relevant

risk appetite statement.

Liquidity risks

Hastings maintains a short duration and highly liquid

portfolio, in line with its low risk appetite. Liquidity Risk

is largely managed at Advantage. Cash and cash

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	FINANCIAL STATEMENTS 2023	181

equivalent balances are held in current accounts or

short-term money market instruments. These are

generally less than 60 days in duration, with low

sensitivity to movements in interest rates compared to

longer duration assets.

The liquidity profile and cashflow of investments is

monitored at the quarterly Investment Committee to

ensure Advantage can meet its liabilities into the future.

Advantage’s investment managers actively manage

liquidity risk in the portfolio to ensure that bonds can be

sold efficiently to meet cash needs. Informed by market

data, they look to purchase bonds with less than 5 years

since issue date, larger issue sizes and which trade

regularly. Liquidity scoring is conducted by

Advantage’s investment managers, based on time since

issue, issue size, traded volumes and observed bid-ask

spreads.

Cash flows according to contractual maturity

Hastings, 31 December 2023


EURm	Carrying amount total	Carrying amount without contractual maturity	Carrying amount with contractual maturity	Cash flows
EURm	Carrying amount total	Carrying amount without contractual maturity	Carrying amount with contractual maturity	2024	2025	2026	2027	2028	2029- 2038	2039-
Financial assets	1,869	704	1,165	143	341	349	179	154	0	0
Financial assets (non-derivatives)	1,869	704	1,165	143	341	349	179	154	0	0
Interest rate swaps	0	0	0	0	0	0	0	0	0	0
FX forwards	0	0	0	0	0	0	0	0	0	0
Asset for incurred claims	1,333	1,333	0	349	236	183	61	96	169	240
Financial liabilities	187	0	187	73	71	43	0	0	0	0
Financial liabilities (non-derivatives)	185	0	185	71	71	43	0	0	0	0
Interest rate swaps	2	0	2	2	0	0	0	0	0	0
FX derivatives	0	0	0	0	0	0	0	0	0	0
Lease liabilities	10	0	10	6	3	1	0	0	0	0
Liability for incurred claims and other insurance related payables	2,125	2,125	0	670	404	302	127	137	211	275

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Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	182

Counterparty risks at If Group

In If, the major sources of counterparty risk stem from

reinsurance recoverables, bank balances, financial

derivatives, and other receivables.

Counterparty default risk arising from receivables from

policyholders and other receivables related to

commercial transactions is limited, as non-payment of

premiums generally results in cancellation of insurance

policies.

Reinsurance counterparty risk

Reinsurance is used regularly to utilise If’s own funds

efficiently, reduce the cost of capital, limit large

fluctuations of underwriting results, and to have access

to reinsurers’ competence base.

The distribution of reinsurance recoverables and pooled

solutions is presented in the table below. In the table,

EUR 206 (151) million is excluded, which mainly relates

to captives and statutory pool solutions.

Reinsurance recoverables and pooled solutions

If, 31 December 2023 and 31 December 2022


	31 Dec 2023		31 Dec 2022
Rating	Total EURm	% of total	Total EURm	% of total
AAA	0	0%	0	0%
AA+ - A-	450	100%	134	100%
BBB+ - BBB-	0	0%	0	0%
BB+ - C	0	0%	0	0%
D	0	0%	0	0%
Non-rated	0	0%	0	0%
Total	450	100%	135	100%

The amount of the recoverables reported above is

exposed to counterparty risk as recoverables are

typically not covered by collaterals.

If’s Reinsurance Policy sets requirements for the

reinsurers’ minimum financial strength rating and the

maximum exposure limits to individual reinsurers. In

addition, internal credit risk analysis plays a central role

when counterparties are approved.

The Reinsurance Committee is a collaboration forum

with the role to secure appropriate reinsurance cover

for insurance risk in accordance with If’s risk appetite

and provides an opinion as well as proposes actions in

respect of such issues.

The Reinsurance Security Committee in If shall give

input and suggestions in respect to various issues

regarding reinsurance default risk and risk exposure, as

well as proposed deviations from the Reinsurance

Policy.

Reinsurance assets for incurred claims for the ten

largest reinsurer counterparties amounted to EUR 272

(144) million, representing 52 (61) per cent of the total

reinsurance assets for incurred claims. Out of the ten

largest reinsurer counterparties, 59 (32) per cent of the

reinsurers had an A rating or higher, while the rest were

from non-rated captives.

The total ceded written premium related to treaty and

facultative reinsurance agreements amounted to EUR

89 (82) million.

Counterparty risk related to financial derivatives

In If, the default risk of derivative counterparties is a by-

product of managing market risks. The role of long-term

interest rate derivatives has been immaterial and

counterparty risk mainly stems from short-term FX

derivatives. The counterparty risk of bilaterally settled

derivatives is mitigated by a careful selection and

diversification of counterparties to prevent risk

concentrations and by using collateral techniques, e.g.

ISDA Master Agreements backed by Credit Support

Annexes. If settles interest rate swaps in central clearing

Board of Directors’

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	FINANCIAL STATEMENTS 2023	183

houses, which mitigates bilateral counterparty risk but

also results in a systemic risk exposure related to

centralised clearing parties.

Counterparty risks at Topdanmark Group

Topdanmark is exposed to counterparty risk in both its

insurance and investment activities. The default risk

related to fixed income and equity investments is

covered by spread-risk and equity-risk models in SCR

calculations and hence they are not discussed in this

context.

The main sources of counterparty risk are deposits

made to individual banks, derivative contracts with

banks and current receivables from reinsurance

companies with the addition of potential receivables

that will arise in case of a 1-in-200-year catastrophe

event. Topdanmark's counterparty risk is assessed by

the SCR standard formula

Reinsurance

Within insurance activities the reinsurance companies'

ability to pay is the most important counterparty risk

factor. Topdanmark minimises this risk by primarily

buying reinsurance cover from reinsurance companies

with a minimum rating of A- and by spreading

reinsurance cover over many reinsurers.

For reinsurance counterparties, the Board approves

security guidelines which determine the maximum size

of reinsurance contract cover per a separate reinsurer.

This portion is dependent on the reinsurer's rating as

well as on Topdanmark’s own assessment of the

reinsurer. The largest risk concentrations may occur in

case of major catastrophe events, including storms and

cloudbursts.

Investments

Topdanmark may suffer losses due to their

counterparties’ inability to meet their obligations on

bonds, loans, and other contracts including derivatives.

The majority of Topdanmark’s interest bearing assets

comprise of Danish mortgage bonds.

To limit the counterparty risk of financial contracts,

including derivative contracts, the choice of

counterparties is restrictive, and collateral is required

when the value of the financial contracts exceeds the

predetermined limits. The size of the limits depends on

the counterparty's credit rating and the terms of the

contract.

Counterparty risks at Hastings Group

Hastings is exposed to counterparty risk through

reinsurance assets, financial assets and cash and cash

equivalents. A number of controls exist within the

Hastings Group to mitigate against counterparty

default, such as annual reviews of reinsurance panels,

credit rating tolerances in line with a low-risk appetite,

and a low-risk, diversified investment portfolio..

Reinsurance counterparty risk

A key component of risk mitigation is reinsurance.

Advantage manages the tender of the reinsurance

programme, which consists of both non-capitalised

Excess of Loss (“XoL”) and Quota Share (“QS”)

protection. Under the 2023 arrangements, the Motor

exposure risk to Advantage is capped at GBP 1 million

per loss, net of XoL reinsurance, and Household

exposure is capped at GBP 16.0 million (approximately

EUR 18.4 million) per event loss. In 2023, the

Advantage Board reduced the motor QS participation

from 35 per cent to 30 per cent, driven principally by a

change in risk appetite. Advantage’s reinsurance

strategy will continue to be reviewed in line with risk

appetite.

Board of Directors’

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	FINANCIAL STATEMENTS 2023	184

Reinsurance recoverables

Hastings, 31 December 2023 and 31 December 2022


	2023		2022
Rating	Total, EURm	% of total	Total, EURm	% of total
AAA	0	0%	0	0%
AA	1,031	63%	962	65%
A	608	37%	512	35%
BBB	2	0%	3	0%
Less than BBB	0	0%	0	0%
Unrated	0	0%	0	0%
Total	1,640	100%	1,477	100%

To mitigate the inherent counterparty and credit risk

posed by the reinsurance programme to Advantage’s

balance sheet, Advantage has set criteria for the

minimum credit quality of the reinsurance

counterparties and for concentration limits. These

tolerances are monitored and mitigated on a continual

basis, with line of sight to the Board quarterly, or ad-hoc

as needed.

To better protect itself where possible, Advantage aims

to:

• place with parent entities within reinsurance groups

to mitigate counterparty risk in accepting reinsurance

from small regional branches

• introduce collateralisation or cut through terms and/

or parental guarantees to mitigate counterparty risk

• ensure special termination clauses are in place in the

event of rating downgrade or reorganisation of

reinsurance groups to which Advantage is exposed

Board of Directors’

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	FINANCIAL STATEMENTS 2023	185

Capitalisation

Sampo’s core business competences are skilful pricing

of risks inherent in business operations and high-quality

management of arising risk-exposures and capital

needed to cover these risks. A balance between

earnings, risks, and capital contributes positively to

return on equity and to stakeholder confidence,

facilitating the creation of shareholder value.

Sampo plc is responsible for the group’s capital

management activities. These actions are guided by

targets set for group-level solvency and financial

leverage and they include decisions on group-level

investment exposures, business growth and

performance targets, reinsurance strategies, capital

distributions, and capital instrument issuances.

Group level capitalisation is managed within Sampo’s

capital management framework, which sets targets for

solvency and informs potential risk management

actions.

Group-level capitalisation and the factors affecting it

are illustrated in the graph Sampo Group’s capitalisation

framework.

Sampo Group’s capitalisation framework

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	FINANCIAL STATEMENTS 2023	186

The Group’s capital requirement is dependent mainly on

the capital requirements of the sub-groups and

investments in the Nordic financial service companies

on Sampo plc's balance sheet. Otherwise, the parent

company’s contribution to the Group capital need is

relatively small, because Sampo plc does not have any

business activities of its own other than the

management of its capital structure and liquidity

portfolio.

Diversification benefit exists at two levels, within the

companies and between the companies. The former is

included in the companies’ solvency capital requirement

(SCR).

Conceptually, the Group’s own funds equals the

difference between the market value of assets and

liabilities plus the subordinated liabilities. This difference

has accrued during the lifetime of the Group and it

includes the following main components:

• accrued profits that have not been paid as dividends

over the years

• valuation differences between IFRS and Solvency II

• issued capital and subordinated liabilities meeting

Solvency II requirements.

At the Group level, the capital requirement and own

funds are both exposed to foreign currency translation

risk. The actual capital and the capital needs of If,

Topdanmark, and Hastings are converted from their

reporting currencies to the euro. When the reporting

currencies of If, Topdanmark, and Hastings depreciate,

the actual amount of the Group’s capital in euros

decreases and the capital requirements of If,

Topdanmark, and Hastings will be lower in euro terms.

Translation currency risk is monitored internally and its

effect on Sampo Group’s solvency on a going concern

basis is analysed regularly. However, internally no

capital need is set for translation risk, because it is

realised only when a sub-group is divested.

The Group-level buffers equal in total to the difference

between the amount of the Group’s own funds and the

Group capital requirement. In addition to sub-group

level factors – expected profits and their volatility,

business growth prospects, volatility of the balance

sheet due to fluctuations in the market value of

investments and insurance liabilities, and ability to issue

Solvency II compliant capital instruments – there are

factors that are additionally relevant when considering

the size of the Group-level buffers. The most material of

them are correlation of sub-groups’ profits, parent

company’s capacity to generate liquidity, probability of

business arrangements and shareholders’ dividend

expectations.

The role of Sampo plc

As the Group’s holding company, Sampo plc is

responsible for the Group’s capital management

activities. These actions are guided by targets set for

group-level solvency and financial leverage and they

include decisions on group-level investment exposures,

business growth and performance targets, reinsurance

strategies, capital distributions and capital instrument

issuances. In addition, group-level risk accumulations

and concentrations are monitored regularly and

managed by adjusting aggregated risks where

necessary.

The parent company Sampo plc is also a source of

liquidity within the Group. Hence, the healthy funding

structure and the capacity to generate funds if needed

are a continuous focus. Sampo plc needs liquidity to

manage the group’s financing needs, enable dividend

security and to finance potential transactions. Sampo

plc funding is mainly limited to internal dividends and

investment returns but can periodically be

complemented with new debt and capital or asset sales.

Hence, holding company liquidity needs to be managed

holistically together with the dividend policy, strategic

ambitions, and balance sheet targets.

As at 31 December 2023, Sampo had long-term

strategic holdings of EUR 5,635 million in the subsidiary

companies and they were funded mainly by capital of

EUR 5,465 million. Sampo plc had outstanding senior

debt of EUR 959 million and subordinated debt of EUR

1,490 million. Average remaining maturity of senior debt

was 4.8 years and EUR 395 million of it had a maturity

longer than five years. Funding structure of strategic

holdings and other holdings can be considered strong.

The capacity to generate funds is dependent on

leverage and liquidity buffers which can be inferred

from the table Balance sheet structure, Sampo plc, 31

December 2023 and 31 December 2022.

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	FINANCIAL STATEMENTS 2023	187

Balance sheet structure

Sampo plc, 31 December 2023 and 31 December

2022


EURm	31 Dec 2023	31 Dec 2022
Assets total	7,990	9,685
Liquidity	1,352	2,467
Investment assets	979	990
Other investments	2	2
Fixed income	101	27
Equity & private equity	876	961
Subordinated loans	0	100
Equity holdings	5,635	6,066
Subsidiaries	5,635	6,066
Associated	0	0
Other assets	24	62

EURm	31 Dec 2023	31 Dec 2022
Liabilities total	7,990	9,685
CPs issued	0	0
Long-term senior debt	959	1,306
Private placements	2	21
Bonds issued	957	1,285
Subordinated debt	1,490	1,489
Capital	5,465	6,814
Undistributable capital	98	98
Distributable capital	5,367	6,716
Other liabilities	76	77

The leverage of Sampo plc was moderate at year end

according to for example these measures:

• The financial leverage measured as the portion

of debt within all liabilities was 31 (29) per cent.

• Sampo’s net debt is EUR 996 (201) million.

Regarding liquidity, Sampo plc held EUR 1,352 (2,467)

million in bank account balances and short-term money

market investments. Liquidity is mainly affected by

received and paid dividends as well as changes in

issued debt instruments and changes in investments.

Sampo’s dividend payment takes place in May and it will

significantly lower the liquidity position of the holding

company. A part of the investment assets (979) can be

sold in case liquidity is needed. Short-term liquidity can

be considered adequate.

All in all, Sampo plc is in a good position to refinance its

current debt and even issue more debt. This capacity

together with the tradable financial assets means that

Sampo plc can generate liquid funds.

Sampo plc is able to balance risks within Sampo Group.

When Sampo plc is managing its funding, capital

structure, and liquidity, it takes into account that some

of its operative companies have other base currencies

than the euro (the Swedish krona, the Danish krone,

pound sterling), and are exposed to lower interest rates.

These risks may affect Sampo’s decisions on the

issuance of debt instruments and the composition of

the liquidity portfolio.

The maturities of financial assets and liabilities and lease

liabilities are presented in the table Cash flows

according to contractual maturity, Sampo plc, 31

December 202 3 and 31 December 2022.

Board of Directors’

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	FINANCIAL STATEMENTS 2023	188

Cash flows according to contractual maturity

Sampo plc, 31 December 2023 and 31 December 2022


31 Dec 2023	Carrying amount total			Cash flows
EURm	Carrying amount total	Carrying amount without contractual maturity	Carrying amount with contractual maturity	2024	2025	2026	2027	2028	2029- 2038	2039-
Financial assets	2,325	1,623	702	617	14	2	2	30	65	0
Financial assets (non-derivatives)	2,325	1,623	702	617	14	2	2	30	65	0
Interest rate swaps	0	0	0	0	0	0	0	0	0	0
FX forwards	0	0	0	0	0	0	0	0	0	0
Asset for incurred claims	0	0	0	0	0	0	0	0	0	0
Financial liabilities	2,527	0	2,527	-72	-223	-59	-59	-475	-2,032	0
Financial liabilities (non-derivatives)	2,507	0	2,507	-70	-223	-59	-59	-461	-2,032	0
Interest rate swaps	20	0	20	-2	0	0	0	-14	0	0
FX derivatives	0	0	0	0	0	0	0	0	0	0
Lease liabilities	2	0	2	-1	1	0	0	0	0	0
Liability for incurred claims and other insurance related payables	0	0	0	0	0	0	0	0	0	0


31 Dec 2022	Carrying amount total			Cash flows
EURm	Carrying amount total	Carrying amount without contractual maturity	Carrying amount with contractual maturity	2023	2024	2025	2026	2027	2028- 2037	2038-
Financial assets	3,596	2,799	797	688	24	8	8	8	77	183
Financial assets (non-derivatives)	3,596	2,799	797	688	24	8	8	8	77	183
Interest rate swaps	0	0	0	0	0	0	0	0	0	0
FX forwards	0	0	0	0	0	0	0	0	0	0
Asset for incurred claims	0	0	0	0	0	0	0	0	0	0
Financial liabilities	2,816	0	2,816	-416	-65	-224	-60	-60	-2,513	0
Financial liabilities (non-derivatives)	2,802	0	2,802	-416	-63	-223	-59	-59	-2,504	0
Interest rate swaps	14	0	14	0	-2	-1	-1	-1	-9	0
FX derivatives	0	0	0	0	0	0	0	0	0	0
Lease liabilities	2	0	2	-1	-1	0	0	0	0	0
Liability for incurred claims and other insurance related payables	0	0	0	0	0	0	0	0	0	0

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Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	189

Sampo plc’s Financial Statements


Sampo plc’s income statement ...........................	191
Sampo plc’s balance sheet ...................................	192
Sampo plc’s statement of cash flows ...............	193

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Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	190

Sampo plc’s income statement


EURm	Note	1–12/2023	1–12/2022
Sales		1	—

Staff expenses
Salaries and remunerations		-14	-21
Social security costs
Pension costs		-2	-2
Other		-3	-6

Other operating expenses	1	-39	-19

Operating profit		-57	-48

Financial income and expense	3
Income from shares in Group companies		1,039	1,008
Income from other shares		23	182
Other interest and financial income
Group companies		—	4
Other		23	6
Other investment income and expense		-9	704
Other interest income		37	11
Interest and other financial expense		-95	-111
Exchange result		3	-12

Profit before appropriations and taxes		963	1,744

Group contribution		—	29
Income taxes		0	8

Profit for the financial year		963	1,780

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Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	191

Sampo plc’s balance sheet


EURm	Note	2023	2022
Assets
Intangible assets		1	1
Tangible assets		3	3
Investments
Shares in Group company	21	5,635	6,066
Receivables from Group companies	4	—	100
Other shares and participations	5	876	961
Other investments	6	706	696
Short-term receivables
Other receivables	7	20	44
Prepayments and accrued income	8	2	16
Cash and cash equivalents		747	1,798
Total assets		7,990	9,685


EURm	Note	2023	2022
Liabilities
Equity	9,10
Share capital		98	98
Invested unrestricted equity		1,527	1,527
Other reserves		273	273
Retained earnings		2,604	3,136
Profit for the financial year		963	1,780

Liabilities
Long-term liabilities	13
Bonds		959	1,306
Subordinated debt securities		1,490	1,489
Short-term liabilities
Deferred tax liability	14	—	—
Other liabilities	11	5	12
Accruals and deferred income	12	71	65
Total liabilities		7,990	9,685

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Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	192

Sampo plc’s statement of cash flows


EURm	1–12/2023	1–12/2022

Operating activities
Profit before tax	963	1,773
Adjustments
Realised gains and losses on investments	9	—
Other adjustments	-14	-830
Adjustments total	-5	-830

Change (+/-) in assets of operating activities
Investments	341	48
Other assets	11	13
Total	351	60

Change (+/-) in liabilities of operating activities
Financial liabilities	-2	-35
Other liabilities	1	9
Paid interests	-72	-90
Paid taxes	0	8
Total	-73	-107

Net cash from operating activities	1,237	896

Investing activities
Investment in subsidiaries	-108	-427
Divestments in associates	—	2,291
Dividend received from associates	—	157
Other investments	0	—
Net cash from investing activities	-108	2,022


EURm	1–12/2023	1–12/2022
Financing activities
Dividends paid	-1,321	-2,186
Purchase of own shares	-555	-1,444
Repayments of debt securities in issue	-334	-571
Received group contribution	29	15
Net cash used in financing activities	-2,180	-4,186

Total cash flows	-1,051	-1,269

Cash and cash equivalents at 1 January	1,798	3,067
Cash and cash equivalents at 31 December	747	1,798
Net change in cash and cash equivalents	-1,051	-1,269

Additional information to the statement of cash flows


EURm	1–12/2023	1–12/2022
Interest income received	63	23
Interest expense paid	-72	-90
Dividend income received	1,062	1,190

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Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	193

Sampo plc’s notes to the financial statements


Summary of significant accounting policies ..	195
Notes .............................................................................	196
1 Other operating expenses ...................................	196
2 Auditors' fees ..........................................................	196
3 Financial income and expense ..........................	196
4 Receivables from Group companies ...............	196
5 Other shares and participations .......................	196
6 Other investments .................................................	197
7 Other receivables ...................................................	197
8 Prepayments and accrued income ..................	197
9 Movements in the parent company's equity .............................................................................	198
10 Share capital ..........................................................	199
11 Other liabilities .......................................................	199
12 Accruals and deferred income ........................	199
13 Long-term liabilities .............................................	199
14 Deferred tax assets and liabilities ..................	199
15 Pension liabilities ..................................................	199
16 Rental commitments ...........................................	199
17 Other liabilities and commitments .................	199
18 Number of personnel ..........................................	200
19 Salaries and remuneration of the Board and the Group CEO ..................................................	200
20 Pension contributions to the CEO, deputy CEO and the members of the Board ..................	200
21 Shares held ............................................................	201

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	FINANCIAL STATEMENTS 2023	194

Sampo plc’s notes to the financial statement

Summary of significant

accounting policies

Sampo plc (business ID 0142213-3) is Sampo Group’s

parent company and a Finnish public company listed in

Helsinki Nasdaq. It is domiciled in Helsinki and the

headquarters are at Fabianinkatu 27, 00100 Helsinki,

Finland.

The presentation of Sampo plc’s financial statements

have been prepared in accordance with the Finnish

Accounting Act and Ordinance.

Partial demerger

On 7 December 2022, Sampo Group announced a

strategic review of Mandatum Group’s role in the Group.

Following an assessment of options, on 29 March 2023,

the Board resolved to propose a partial demerger of

Sampo plc to separate Mandatum from Sampo Group.

The Annual General Meeting approved the partial

demerger on 17 May 2023 as set forth in the demerger

plan, approved and signed by the Board on 29 March

2023. The demerger plan was registered in the Finnish

Trade Register on 30 March 2023.

The partial demerger was completed as planned on 1

October 2023. The first trading day for Mandatum on

Nasdaq Helsinki was 2 October 2023. In the demerger,

all the shares in Mandatum Holding Ltd amounting to

EUR 538 million were transferred without a liquidation

procedure to Mandatum plc, a company incorporated in

the demerger on the effective date. In addition, a part of

Sampo's general liabilities, not allocated to any specific

business operations, were allocated to Mandatum plc.

The recognition of loan receivable had an impact on the

parent company’s equity amounting to EUR 102 million.

Foreign currency translation

Foreign currency transactions are translated using the

exchange rate prevailing at the date of transactions or

the average rate for the month. The Balance sheet items

denominated in foreign currencies are translated at the

rate prevailing at the balance sheet date. The exchange

differences are recognised in the income statement.

Non-current assets

Intangible and tangible assets are stated at acquisition

cost less depreciation or amortisation.

Investments are measured at acquisition cost and, in

case there is objective evidence of an impairment, the

impairment is recognised through profit or loss.

Previously the financial instruments were measured at

fair value through Fair Value reserve applying Chapter 5

section 2a § of the Finnish Accounting Act. The change

in the accounting policy is recognised through retained

earnings on 1 January 2022.

Derivatives

Financial derivatives held for trading are initially

recognised at fair value, and gains and losses arising

from changes in fair value together with realised gains

and losses are recognised in the income statement.

Derivative instruments are carried as assets when the

fair value is positive and as liabilities when the fair value

is negative.

Derivative financial instruments have been used only for

operative hedging purposes. For more information see

the Group note Summary of Significant Accounting

Policies.

Risk management

The risk management note 37 includes detailed

information on the risk management.

Revenue recognition

Revenue is recognised when it occurs.

Leases

Lease payments are treated as rentals.

Income taxes

The income statement includes the company's income

taxes based on taxable profit for the period. Income tax

includes tax expense based on taxable profit for the

period as well as deferred tax. Tax expense is

recognised in profit or loss except for the items

recognised directly in equity, in which case tax is

recognised accordingly. Tax is adjusted for possible

items related to previous reporting periods.

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Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	195

1 Other operating expenses


EURm	1–12/2023	1–12/2022

Rental expenses	-1	-1
IT expenses	-1	-1
External services	-28	-10
Other staff costs	-1	-1
Other	-7	-6
Total	-38	-19

Item Other includes e.g. administration fees.

2 Auditors' fees


EUR thousand	1–12/2023	1–12/2022

Auditing fees	-414	-1,065
Tax consultancy	—	—
Other fees	—	—
Total	-414	-1,065

3 Financial income and expense


EURm	1–12/2023	1–12/2022

Dividend income	1,062	1,190
Interest income	60	20
Interest expense	-72	-86
Gains on disposal	—	704
Exchange result	3	-12
Other	-32	-25
Total	1,020	1,792

4 Receivables from Group companies


EURm	2023	2022

Carrying amount at the beginning of the year	100	100
Disposals	-100	—
Carrying amount at the end of the year	—	100

Mandatum Life issued in 2002 EUR 100 million Capital Notes, which were wholly

subscribed by Sampo plc. At the time of partial demerger, with the consent of the

Financial Supervisory Authority, Mandatum redeemed the loan in full.

5 Other shares and participations


EURm	2023	2022

Fair value at 1 January	—	795
Change of accounting policy	—	-200
Acquisition cost 1 January	961	595
Transfer from associates	—	368
Increase	7	3
Decrease	-92	-5
Acquisition cost 31 December	876	961

In connection with the demerger, Sampo sold certain financial assets to Mandatum.

These assets included holdings in Enento Group, guarantee shares of Kaleva Mutual

Insurance Company and other smaller equity, debt, and alternative investments.

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	FINANCIAL STATEMENTS 2023	196

6 Other investments


EURm	2023	2022

Acquisition cost 1 January	696	704
Increase	2,325	3,766
Decrease	-2,315	-3,773
Acquisition cost 31 December	706	696


EURm	2023	2022

Bonds	15	26
Money market	590	670
Loan receivable	101	—
Total	706	696

Due to the demerger on 1 October 2023, Sampo recognised the loan receivable from

Mandatum plc amounting to EUR 102 million in order to allocate general liabilities.

7 Other receivables


EURm	2023	2022

Trading receivables	—	1
Other	20	43
Total	20	44

Item Other includes derivative guarantees EUR 20 (14) million and Group receivables

of EUR 0 (29) million.

8 Prepayments and accrued income


EURm	2023	2022

Accrued interest	2	5
Other	0	11
Total	2	16


EURm	2023	Fair value		2022	Fair value
Derivatives	Contract /notional value	Assets	Liabilities	Contract /notional value	Assets	Liabilities

Derivatives held for trading
Interest rate derivatives	89	—	20	95	—	14
Total	89	—	20	95	—	14

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Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	197

9 Movements in the parent company's equity


	Restricted equity	Unrestricted equity
EURm	Share capital	Invested unrestricted capital	Other reserves	Retained earnings	Total

Carrying amount at 1 January 2022	98	1,527	273	6,766	8,663
Dividends	—	—	—	-2,186	-2,186
Acquisition of own shares	—	—	—	-1,444	-1,444
Profit for the year	—	—	—	1,780	1,780
Carrying amount at 31 December 2022	98	1,527	273	4,916	6,814


	Restricted equity	Unrestricted equity
EURm	Share capital	Invested unrestricted capital	Other reserves	Retained earnings	Total

Carrying amount at 1 January 2023	98	1,527	273	4,916	6,814
Dividends	—	—	—	-1,321	-1,321
Acquisition of own shares	—	—	—	-555	-555
Partial demerger	—	—	—	-539	-539
Loan receivable due to partial demerger	—	—	—	102	102
Profit for the year	—	—	—	963	963
Carrying amount at 31 December 2023	98	1,527	273	3,567	5,465

Distributable funds


EURm	2023	2022

Parent company
Profit for the year	963	1,780
Retained earnings	2,604	3,136
Invested unrestricted capital	1,527	1,527
Other reserves	273	273
Total	5,367	6,716

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Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	198

10 Share capital

Information on share capital is disclosed in note 27 in the consolidated financial

statements.

11 Other liabilities


EURm	2023	2022

Other	5	12
Total	5	12

12 Accruals and deferred income


EURm	2023	2022

Deferred interest	29	29
Derivatives	20	14
Other	23	22
Total	71	65

13 Long-term liabilities


EURm	2023	2022

Bonds	959	1,306
Subordinated debt securities	1,490	1,489
Total	2,449	2,794

More information in Sampo Group’s consolidated note 24 Financial liabilities.

14 Deferred tax assets and liabilities

The parent company did not have any deferred tax liability or asset in the balance

sheet at the end of 2023 or 2022.

15 Pension liabilities

The basic and supplementary pension insurance of Sampo plc’s staff is handled

through insurance policies in pension insurance companies in Finland and Sweden.

16 Rental commitments


EURm	2023	2022

Not more than one year	1	1
Over one year but not more than five years	1	1
Total	2	2

17 Other liabilities and commitments

Sampo plc has granted a credit facility to Hastings Group Holdings Ltd of GBP 75

million, which will terminate in October 2026. The credit facility was undrawn at the

end of the reporting period. More information is in Sampo Group’s note 24 Financial

liabilities.

Sampo and Mandatum have agreed on the sale of shares in Saxo Bank, but the sale is

subject to approvals from authorities. Sampo has granted Mandatum a loan amounting

to EUR 280 million, which still remains undrawn at the end of reporting period. The

loan is expected to be repaid within a period of four years from its issuance.

The fund commitments given total EUR 7 (7) million.

The joint liability related to the Finnish VAT group was terminated on 30 April 2023, so

there was no joint VAT liability on the balance sheet date (EUR 3 million).

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	FINANCIAL STATEMENTS 2023	199

18 Number of personnel


	2023 Average during the year	2022 Average during the year

Full-time personnel	54	50
Part-time personnel	1	—
Total	55	50

19 Salaries and remuneration of the Board

and the Group CEO


EUR thousand		2023	2022

Group CEO	Torbjörn Magnusson	3,139	3,328

Members of the Board of Directors
Antti Mäkinen		228	—
Björn Wahlroos		—	190
Christian Clausen		101	98
Fiona Clutterbuck		107	104
Georg Ehrnrooth		107	104
Jannica Fagerholm		159	152
Johanna Lamminen		45	104
Steve Langan		107	104
Risto Murto		101	98
Markus Rauramo		101	98
Annica Withchard		107	—

In accordance with the decision of the Annual General Meeting in 2023, the company

has compensated the transfer tax related to the acquisition of the company shares, in

total EUR 8,446.39 (EUR 1,819.48 pertaining to the Chairman, EUR 1,268.84 EUR to the

Vice Chairman and EUR 5,358.07 to the other members of the Board).

20 Pension contributions to the CEO, deputy

CEO and the members of the Board


EUR thousand	Supplementary pension costs	Statutory pension costs	Total

Pension contributions paid during the year

President/CEO1	869	468	1,337
Former Chairmen of the Board
Kalevi Keinänen2	90		90
Former Presidents/CEO:s
Harri Hollmen3	225		225
Total	1,184	468	1,652

1 The Group CEO is entitled to a supplementary defined contribution pension in accordance with

the present pension contract.

2 Group pension agreement with a retirement age of 60 years and pension benefit of 66 per cent of

the pensionable TyEL-salary (TyEL: Employees’s Pension Act). The payment for 2023 is based on a

TyEL index adjustment.

3 Group pension agreement with a retirement age of 60 years and a pension benefit of 60 per cent

of the pensionable TyEL-salary. The payment for 2023 is based on a TyEL index adjustment.

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	FINANCIAL STATEMENTS 2023	200

21 Shares held


	31 December 2023		31 December 2022
Company name	Percentage of share capital held	Carrying amount EURm	Percentage of share capital held	Carrying amount EURm

Group undertakings

P&C insurance
If P&C Insurance Holding Ltd, Stockholm, Sweden	100.00	1,886	100.00	1,886

P&C insurance
Topdanmark A/S, Copenhague, Denmark	48.92	1,121	48.53	1,107

P&C insurance
Hastings Group (Consolidated) Plc, London, United Kingdom	100.00	2,611	100.00	2,534

Life insurance
Mandatum Holding Ltd, Helsinki, Finland	—	—	100.00	539

Sampo Plc has a branch located in Sweden.

Due to the demerger, all the shares in Mandatum Holding Ltd were transferred without

a liquidation procedure to Mandatum plc, a company incorporated in the demerger on

the effective date.

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	FINANCIAL STATEMENTS 2023	201

Approval of the Financial Statements and

the Board of Directors’ Report

Helsinki, 6 March 2024

Sampo plc

Board of Directors


Christian Clausen		Fiona Clutterbuck		Georg Ehrnrooth

Jannica Fagerholm		Steve Langan		Risto Murto

	Markus Rauramo		Annica Witschard

	Antti Mäkinen Chairman		Torbjörn Magnusson Group CEO

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	FINANCIAL STATEMENTS 2023	202

Auditor’s note

An auditor's report on the audit performed has been issued today.

Helsinki, 12 March 2024

Deloitte Oy

Audit firm

Jukka Vattulainen

APA

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	FINANCIAL STATEMENTS 2023	203

Auditor’s Report (Translation of the Finnish Original)

To the Annual General Meeting of Sampo plc

Report on the Audit of

the Financial Statements

Opinion

We have audited the financial statements of Sampo plc

(business identity code 0142213-3) for the year ended 31

December, 2023. The financial statements comprise the

consolidated balance sheet, income statement,

statement of comprehensive income, statement of

changes in equity, statement of cash flows and notes,

including material accounting policy information, as well

as the parent company’s balance sheet, income

statement, statement of cash flows and notes.

In our opinion

• the consolidated financial statements give a true and

fair view of the group’s financial position, financial

performance and cash flows in accordance with IFRS

Accounting Standards as adopted by the EU

• the financial statements give a true and fair view of

the parent company’s financial performance and

financial position in accordance with the laws and

regulations governing the preparation of financial

statements in Finland and comply with statutory

requirements.

Our opinion is consistent with the additional report

submitted to the Audit Committee.

Basis for Opinion

We conducted our audit in accordance with good

auditing practice in Finland. Our responsibilities under

good auditing practice are further described in the

Auditor’s Responsibilities for the Audit of the Financial

Statements section of our report.

We are independent of the parent company and of the

group companies in accordance with the ethical

requirements that are applicable in Finland and are

relevant to our audit, and we have fulfilled our other

ethical responsibilities in accordance with these

requirements.

In our best knowledge and understanding, the non-

audit services that we have provided to the parent

company and group companies are in compliance with

laws and regulations applicable in Finland regarding

these services, and we have not provided any

prohibited non-audit services referred to in Article 5(1)

of regulation (EU) 537/2014. The non-audit services that

we have provided have been disclosed in note 6 to the

consolidated financial statements and in note 2 to the

parent company notes.

We believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our

opinion.

Key Audit Matters

Key audit matters are those matters that, in our

professional judgment, were of most significance in our

audit of the financial statements of the current period.

These matters were addressed in the context of our

audit of the financial statements as a whole, and in

forming our opinion thereon, and we do not provide a

separate opinion on these matters.

We have also addressed the risk of management

override of internal controls. This includes consideration

of whether there was evidence of management bias

that represented a risk of material misstatement due to

fraud.

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	FINANCIAL STATEMENTS 2023	204


Key Audit Matter	How our audit addressed the Key Audit Matter
Valuation of insurance contract liabilities We refer to Summary of Material Accounting policies in the financial statements as well as notes 20 and 21. As of 31 December 2023, Sampo Group has insurance contract liabilities totalling EUR 11,716 million (2022: EUR 16,210 million), consisting primarily of property and casualty (P&C) insurance contract liabilities. The measurement of insurance liabilities consists of the liability for remaining coverage (LRC) and the liability for incurred claims (LIC) including both reported but not settled claims as well as incurred but not reported claims (IBNR). Sampo Group adopted IFRS 17 Insurance Contracts standard from 1 January 2023, and comparative figures have been restated. Sampo Group’s operations are focused on the P&C business and Sampo primarily uses the premium allocation approach (PAA) under IFRS 17. As of 1 January 2022, Sampo Group's opening balance sheet amounted to EUR 58.7 billion and equity to EUR 13.5 billion. Compared to the IFRS 4 closing balance sheet of EUR 61.1 billion, the opening IFRS 17 balance sheet decreased by EUR 2.4 billion. Discounting of reserves decreased insurance liabilities whereas introduction of risk adjustment increased insurance liabilities. The introduction of the loss component related to onerous contracts had only an insignificant impact on transition. The result of management's assessments regarding the calculation of the liability for incurred claims depends on inputs, the choice of actuarial methods and the precision of management judgment in determining actuarial assumptions. Key assumptions with the greatest impact on the carrying amount include inflation, discount rates as well as estimated future payments for claims. Valuation of insurance contract liabilities requires significant management judgment and accounting assumptions about uncertain future events, which may materially affect the carrying amount, and thus this is a key audit matter.	We have assessed the measurement of the provisions for insurance contracts as calculated by Management. Our audit procedures included testing of the key controls relating to valuation of insurance liabilities and key assumptions. We have involved Deloitte´s actuarial experts together with IFRS 17 subject matter experts in our audit procedures and evaluated methods and models used by the management. We have compared the information used in the calculations with the historical data and we have analysed the developments in risk, interest and cost trends. We have evaluated management’s significant estimations and judgments and performed independent calculations based on actuarial methods for a substantial part of the insurance contract liabilities. We have evaluated management’s interpretation of the new accounting standard IFRS 17 and its application to the relevant insurance contracts as well as assessed the changes introduced to the financial statements and related disclosures following the adoption of IFRS 17. We have evaluated and examined a selection of general IT controls linked to relevant systems and applications assessed as critical to the data that forms the basis for the calculation of the liability for incurred claims. On a sample basis we have examined input data used in the calculations of the liability for incurred claims.

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Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	205


Key Audit Matter	How our audit addressed the Key Audit Matter
Valuation of financial assets We refer to Summary of Material Accounting policies in the financial statements as well as notes 14–16. The Group's investments amount to EUR 15,757 million (2022: EUR 19,565 million). Financial assets represent a significant part of the group's balance sheet. Major part of the Group's financial assets are measured at fair value. At level 1, the valuation of the financial asset is based on the quoted price in an active market. Level 2 valuation also uses other verifiable prices as inputs, either directly or derived from them, using valuation techniques. At level 3, valuation is based on non-observable market data. Audit focus areas relate to valuations on level 2 and 3 in line with IFRS in which the valuation techniques include inputs which are not directly observable from the markets. The use of different valuation techniques and assumptions may result in different estimates of fair value and hence this is a key audit matter.	Our audit procedures have included the evaluation of the internal controls, appropriateness of accounting policies used and the reasonableness of accounting estimates made by management. We have evaluated the appropriateness of the valuation models and accounting policies used by the company to assess whether the fair value measurement is in accordance with generally accepted standards and industry practices. We have requested external confirmations to verify the existence of the investment. Together with our valuation specialists, we have assessed the assumptions used by management in the valuation calculation. We have utilized Deloitte´s valuation analytics and performed the recalculation of fair values based on the information available on the market. For financial assets that are valued on the basis of non-market information, we have also evaluated the practices and assumptions used by management in determining fair values. We have assessed the disclosures of the investments in the financial statements.

There are no significant risks of material misstatement referred to in EU regulation No 537/2014, point (c) of Article 10(2) relating to the parent company’s financial statements.

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	206

Responsibilities of the Board of

Directors and the Group CEO for

the Financial Statements

The Board of Directors and the Group CEO are

responsible for the preparation of consolidated financial

statements that give a true and fair view in accordance

with IFRS Accounting Standards as adopted by the EU,

and of financial statements that give a true and fair view

in accordance with the laws and regulations governing

the preparation of financial statements in Finland and

comply with statutory requirements. The Board of

Directors and the Group CEO are also responsible for

such internal control as they determine is necessary to

enable the preparation of financial statements that are

free from material misstatement, whether due to fraud

or error.

In preparing the financial statements, the Board of

Directors and the Group CEO are responsible for

assessing the parent company’s and the group’s ability

to continue as a going concern, disclosing, as

applicable, matters relating to going concern and using

the going concern basis of accounting. The financial

statements are prepared using the going concern basis

of accounting unless there is an intention to liquidate

the parent company or the group or cease operations,

or there is no realistic alternative but to do so.

Auditor’s Responsibilities for the

Audit of Financial Statements

Our objectives are to obtain reasonable assurance

about whether the financial statements as a whole are

free from material misstatement, whether due to fraud

or error, and to issue an auditor’s report that includes

our opinion. Reasonable assurance is a high level of

assurance, but is not a guarantee that an audit

conducted in accordance with good auditing practice

will always detect a material misstatement when it

exists. Misstatements can arise from fraud or error and

are considered material if, individually or in the

aggregate, they could reasonably be expected to

influence the economic decisions of users taken on the

basis of the financial statements.

As part of an audit in accordance with good auditing

practice, we exercise professional judgment and

maintain professional skepticism throughout the audit.

We also:

• Identify and assess the risks of material misstatement

of the financial statements, whether due to fraud or

error, design and perform audit procedures

responsive to those risks, and obtain audit evidence

that is sufficient and appropriate to provide a basis

for our opinion. The risk of not detecting a material

misstatement resulting from fraud is higher than for

one resulting from error, as fraud may involve

collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant

to the audit in order to design audit procedures that

are appropriate in the circumstances, but not for the

purpose of expressing an opinion on the effectiveness

of the parent company’s or the group’s internal

control.

• Evaluate the appropriateness of accounting policies

used and the reasonableness of accounting estimates

and related disclosures made by management.

• Conclude on the appropriateness of the Board of

Directors’ and the Group CEO’s use of the going

concern basis of accounting and based on the audit

evidence obtained, whether a material uncertainty

exists related to events or conditions that may cast

significant doubt on the parent company’s or the

group’s ability to continue as a going concern. If we

conclude that a material uncertainty exists, we are

required to draw attention in our auditor’s report to

the related disclosures in the financial statements or,

if such disclosures are inadequate, to modify our

opinion. Our conclusions are based on the audit

evidence obtained up to the date of our auditor’s

report. However, future events or conditions may

cause the parent company or the group to cease to

continue as a going concern.

• Evaluate the overall presentation, structure and

content of the financial statements, including the

disclosures, and whether the financial statements

represent the underlying transactions and events so

that the financial statements give a true and fair view.

• Obtain sufficient appropriate audit evidence

regarding the financial information of the entities or

business activities within the group to express an

opinion on the consolidated financial statements. We

are responsible for the direction, supervision and

performance of the group audit. We remain solely

responsible for our audit opinion.

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

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Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	207

We communicate with those charged with governance

regarding, among other matters, the planned scope and

timing of the audit and significant audit findings,

including any significant deficiencies in internal control

that we identify during our audit.

We also provide those charged with governance with a

statement that we have complied with relevant ethical

requirements regarding independence, and

communicate with them all relationships and other

matters that may reasonably be thought to bear on our

independence, and where applicable, related

safeguards.

From the matters communicated with those charged

with governance, we determine those matters that were

of most significance in the audit of the financial

statements of the current period and are therefore the

key audit matters. We describe these matters in our

auditor’s report unless law or regulation precludes

public disclosure about the matter or when, in

extremely rare circumstances, we determine that a

matter should not be communicated in our report

because the adverse consequences of doing so would

reasonably be expected to outweigh the public interest

benefits of such communication.

Other Reporting

Requirements

Information on our audit

engagement

We were first appointed as auditors by the Annual

General Meeting on 19 May 2021, and our appointment

represents a total period of uninterrupted engagement

of 3 years.

Other information

The Board of Directors and the Group CEO are

responsible for the other information. The other

information comprises the report of the Board of

Directors.

Our opinion on the financial statements does not cover

the other information.

In connection with our audit of the financial statements,

our responsibility is to read the other information and, in

doing so, consider whether the other information is

materially inconsistent with the financial statements or

our knowledge obtained in the audit, or otherwise

appears to be materially misstated. Our responsibility

also includes considering whether the report of the

Board of Directors has been prepared in accordance

with the applicable laws and regulations.

In our opinion, the information in the report of the

Board of Directors is consistent with the information in

the financial statements and the report of the Board of

Directors has been prepared in accordance with the

applicable laws and regulations.

If, based on the work we have performed, we conclude

that there is a material misstatement of the report of

the Board of Directors, we are required to report that

fact. We have nothing to report in this regard.

Other opinions

We support that the financial statements should be

adopted. The proposal by the Board of Directors

regarding the use of the profit shown in the balance

sheet is in compliance with the Limited Liability

Companies Act. We support that the Members of the

Board of Directors of the parent company and the

Group CEO should be discharged from liability for the

financial period audited by us.

Helsinki, 12 March 2024

Deloitte Oy

Audit Firm

Jukka Vattulainen

Authorised Public Accountant (KHT)

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

≡

Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	208

Independent auditor’s report on the ESEF consolidated financial

statements of Sampo plc (Translation of the Finnish Original)

To the Board of Directors of Sampo plc

We have performed a reasonable assurance

engagement on whether the iXBRL tagging of the

consolidated financial statements in the ESEF

consolidated financial statements

(743700UF3RL386WIDA22-2023-12-31-en.zip) of

Sampo plc (0142213-3) for the financial year ended 31

December 2023 has been prepared in accordance with

the requirements of Article 4 of Commission Delegated

Regulation (EU) 2018/815 (ESEF RTS).

Responsibilities of

the board of directors

and the Group CEO

The Board of Directors and the Group CEO are

responsible for the preparation of the report of the

Board of Directors and financial statements (ESEF

financial statements) that comply with the requirements

of ESEF RTS. This responsibility includes:

• preparation of ESEF financial statements in XHTML

format in accordance with Article 3 of ESEF RTS

• tagging the consolidated financial statements’

primary statements, disclosures and identifying

information in the ESEF financial statements with

iXBRL tags in accordance with Article 4 of ESEF RTS,

and

• ensuring consistency between ESEF financial

statements and audited financial statements.

The Board of Directors and the Group CEO are also

responsible for such internal control as they determine

is necessary to enable the preparation of ESEF financial

statements in accordance with the requirements of

ESEF RTS.

Auditor’s independence

and quality control

We are independent of the company in accordance

with the ethical requirements that are applicable in

Finland and are relevant to the engagement we have

performed, and we have fulfilled our other ethical

responsibilities in accordance with these requirements.

The auditor applies International Standard on Quality

Management 1 and, accordingly, an audit firm shall

design, implement, and maintain a system of quality

control including policies and procedures regarding

compliance with ethical requirements, professional

standards, and applicable legal and regulatory

requirements.

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

≡

Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	209

Auditor’s responsibilities

In accordance with the engagement letter, we express

an opinion on whether the tagging of the consolidated

financial statements in the ESEF financial statements

has been prepared in all material respects in accordance

with the requirements of Article 4 of ESEF RTS. We

conducted a reasonable assurance engagement in

accordance with International Standard on Assurance

Engagements ISAE 3000.

The engagement includes procedures to obtain

evidence on:

• whether the tagging of the consolidated financial

statements’ primary statements in ESEF financial

statements has been prepared in all material respects

in accordance with the requirements of Article 4 of

ESEF RTS

• whether the tagging of the consolidated financial

statements’ disclosures and identifying information in

the ESEF financial statements has been prepared in all

material respects in accordance with the

requirements of Article 4 of ESEF RTS, and

• whether the ESEF financial statements are consistent

with the audited financial statements.

The nature, timing and extent of the procedures

selected depend on the auditor’s judgment. This

includes the assessment of risk of material departures

from the requirements set out in ESEF RTS, whether

due to fraud or error.

We believe that the evidence we have obtained is

sufficient and appropriate to provide a basis for our

opinion.

Opinion

In our opinion, the tagging of the consolidated financial

statements in the ESEF financial statements

(743700UF3RL386WIDA22-2023-12-31-en.zip) of

Sampo plc for the financial year ended 31 December

2023 has been prepared in all material respects in

accordance with the requirements of Article 4 of ESEF

RTS.

Our audit opinion on the consolidated financial

statements of Sampo plc for the financial year ended 31

December 2023 has been expressed in our auditor’s

report dated 12 March 2024. In this report, we do not

express an audit opinion or any other assurance

conclusion on the consolidated financial statements.

Helsinki 12 March 2024

Deloitte Oy

Audit Firm

Jukka Vattulainen

APA

Sampo plc (business id 0142213-3) is a Finnish public company listed in Helsinki Nasdaq. It is domiciled in Helsinki and the headquarters are at Fabianinkatu 27, 00100 Helsinki, Finland. The consolidated

financial statements of Sampo Group include Sampo plc together with its subsidiaries and associates as of 31 December 2022. The group subsidiaries have insurance and financing activities in Finland,

Sweden, Norway, Denmark, the Baltic countries, and the United Kingdom. A copy of Group’s financial statements is available at internet address www.sampo.com. Copyright Sampo plc, Finland.

Board of Directors’

Report

Group’s IFRS Financial Statements

Sampo plc’s Financial Statements

Auditor’s

Report

≡

Group’s notes to the financial statements

Sampo plc’s notes to the financial statements


	FINANCIAL STATEMENTS 2023	210