sampo group...sampo group debt investor presentation prepared may 21, 2015 figures march 31, 2015

Sampo Group Debt Investor Presentation Prepared May 21, 2015 Figures March 31, 2015

www.sampo.com/archive/presentations/

DEBT INVESTOR CONTACTS Markku Pehkonen, CRO tel. +358 10 516 0014 [email protected] Peter Johansson, CFO tel. +358 10 516 0010 [email protected] Jarmo Salonen, Head of IR Relations and Group Communications tel. +358 10 516 0030 [email protected]

FINANCIAL CALENDAR 07/05/2015 Interim Report Q1/2015 Silent period 09/04/2015-07/05/2015 12/08/2015 Interim Report Q2/2015 Silent period 15/07/2015-12/08/2015 05/11/2015 Interim Report Q3/2015 Silent period 08/10/2015-05/11/2015

Rated Company Moody's Standard and Poor's

Rating Outlook Rating Outlook

Sampo plc Baa2 Stable Not rated -

If P&C Insurance (Sweden) A2 Stable A Stable

If P&C Insurance Co. (Finland) A2 Stable A Stable

Disclaimer This presentation may contain forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Sampo believes that the expectations reflected in such forward looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors. Important factors that may cause such a difference for Sampo include, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate and (iii) developments in capital markets. This presentation does not imply that Sampo has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided.

2

mailto:[email protected]

mailto:[email protected]

Sampo Group Basic Facts 3-10 If P&C The Leading Nordic P&C Insurer 11-18 Mandatum Life A Finnish Financial Services Company 19-26 Sampo Group A Productive Value Creator 27-35 Sampo plc The Listed Parent Company – A Stable Dividend Payer 36-43 Appendix 44-56

3

46,7

26,7

26,3

25,5

24,6

23,4

16,5

7,5

5,9

5,0

3,1

1,5

1,0

0,8

0,5

0 10 20 30 40 50

Nordea

DnB

Danske Bank

Handelsbanken

Sampo

Swedbank

Investor

Gjensidige

Tryg

Industrivärden

Topdanmark

Storebrand

Alm.Brand

Protector

Aktia

Solidium*,11.9%

Varma Mutual Pension, 6.35%

Ilmarinen Mutual Pension, 0.94%

Björn Wahlroos, 2.1%

Kaleva Mutual Insurance, 0.82%

Other domestic owners, 17.71%

Foreign and nominee registeredowners, 60.18%

Sampo has created Value

Source: Datastream

>30%

>21%

Sampo ownership structure

*100 % owned by the Republic of Finland; 31.3.2015

Market cap May 8, 2015, EURbn

Strong relative performance

4

Sampo Group ― Basic Facts

10Y Total Shareholder Return

A Mixed Financial Conglomerate

Bank Insurance Inv.company

MARKET POSITION

STRATEGY

INVESTMENT ASSETS

RETURN / PROFIT TARGET

21.2%

• Wealth management • Unit-linked products • Risk insurance

• TOP3 company in life & pension in Finland with Baltic operations

~ EUR 6.7bn*+ 5.7bn (U-L)

• RoE above 17.5%

• The leading P&C insurer in the Nordic region

• Underwriting focus • Cost efficiency • Pan-Nordic synergies

~ EUR 11.8bn

• RoE above 17.5% • CR% below 95%

> 30%

100% 100%

• Listed company Sampo plc • Long-term investor

• Manager of capital structure and liquidity • Pay-out ratio ≥ 50%

• The largest financial group in Northern Europe

• Strong profit generation • Low volatility • Strong capital generation

~ EUR 669bn B/S

• ROE of 13% at the required CET1

• The second largest P&C insurer in Denmark

• Growth in GPE • Expenses • Profit

~ EUR 2.5bn

• Profit margin of 10% • CR% 91%

Nordic Financial Group with Strong Brands


5 * Old W-P and NovaS

http://www.topdanmark.dk/

Sampo Group Steering Model and Principles

6

• Non-complex structures and no contagion risks – straightforward and transparent legal structure – limited amount of intercompany exposures

• Principles of Business activities – clear responsibilities – simple and flat operational structures

• Parent company steers the subsidiaries by – setting targets for capitalization and ROE – group wide principles for Risk Management,

Remuneration, Compliance, Code of Conduct • Subsidiaries organize underwriting activities

independently taking into account – the specific characteristics of their operations – the guidance from parent company – the stakeholders´ expectations – external regulation


• If generated EUR 200m (194) in pre-tax profits • Excellent combined ratio of 89.2% (90.3)

– Risk ratio 66.6% (67.5) – Cost ratio 22.6% (22.8) – Expense ratio 16.8% (16.8)

• Resilient business model over the cycle • Topdanmark - Danish non-life, life insurance and pension funds – as an associate company

If P&C ― Well-diversified and Profitable Pan-Nordic

Non-life Insurer

• If P&C provides insurance solutions and services in the Nordic and Baltic regions as well as to Nordic customers with international operations

• Business activities are operated with a pan-Nordic perspective

• The business is conducted by client segments Private, Commercial and Industrial, the Baltic countries forming a separate business area

Well-established Insurance Subsidiaries

• Mandatum Life is a leading life and pension insurer in Finland • Mandatum has a strong market position in Finland

with ca. 18% of the market • Mandatum contributed with EUR 39m (37) in pre-tax profit to the Group

Mandatum Life ― Respected Finnish Expert in Wealth Management, Rewards

and Risk Insurance

• Provides a comprehensive range of services in Finland and Baltics for corporate and private customers

• Services provided - tailored unit-linked insurance - wealth management - personal risk insurance - pension and reward services


7


8

Well-diversified Leading Nordic bank

• Strong profit generating capacity - Improved income mix and growth - Continued cost efficiency

• Low volatility

• Strong capital generation

- Disciplined capital management - Stringent risk management

Danish Insurer with a Robust Business Modell

9


Group Strategy: Value Creation in Nordic Financials

10


LONG TERM VALUE CREATION

• Value creation through investments in Nordic financials based on knowledge of Nordic markets, Nordic financial institutions & Nordic people.

• Commitment to the long-term development of affiliated companies.

OPERATIONAL EXCELLENCE IN SUBSIDIARIES

• Subsidiaries have focus on continuous development of services. • Economies of scale. • Pan-Nordic diversification & operational excellence facilitate low volatility.

CONSERVATIVE PARENT WITH PROFIT FOCUS

• Conservative capital structure, low leverage and strong liquidity. • Parent company steers subsidiaries through Boards by approving (in Nordea and

Topdanmark by contributing to) strategies, guiding principles and ROE-targets.

GROUP LEVEL PORTFOLIO BENEFITS

• Profitable companies, mostly with the lowest volatility in the peer group. • Profits of affiliated companies have low correlation creating diversification

benefits at the group level.

LONG-TERM VALUE FOR SHAREHOLDERS & BONDHOLDERS

CENTRALIZED INVESTMENT MANAGEMENT

• Company specific liabilities and solvency driving risk profiles, supported by a Group-wide investment philosophy. Common investment infrastructure facilitates effective monitoring and fast actions, also at the Group level.

11


Expense Ratios 2014, %

Leading Nordic P&C Insurer with Synergies

Norway 2014 GWP EUR 6.8bn Gjensidige 25% If 23% Tryg 14% Sparebank 1 10%

Denmark 2013 GWP EUR 6.8bn Tryg 19% Topdanmark 18% (of which If´s share 5%) Codan (RSA) 12% Alm. Brand 10% If 6%

Finland 2013 GWP EUR 4.1bn Pohjola 31% LähiTapiola 26% If 26% Fennia 10%

Sweden 2014 GWP EUR 7.7bn LF 30% If 18% RSA (T-H) 16% Folksam 16% Baltics 2014

GWP ~EUR 0.8bn RSA 22% If 14% BTA 13% Ergo 12% Gjensidige 7%

Market Shares by Country

If; 18 Topdanmark; 5

Tryg; 10

Gjensidige; 9

RSA; 9 LF; 9 Folksam; 5

Pohjola; 4 LähiTapiola; 4

Other; 27

16,7

17

27,1

30,5

26

28,3

19,8

31,7

IFNordic peer group*

GeneraliZürich

AXAAllianz

RSA ScandinaviaAviva

If P&C

12 *2012

Nordic Market shares Total GWP ~EUR 25bn

Nordic P&C Insurance Market CONSOLIDATED MARKET

LOW EXPENSE RATIOS

• In addition to traditional channels, the Internet continues to grow in importance both as a distribution and as a service channel.

• Also, distribution via partnerships with banks and car-dealers etc. is increasingly important.

GOOD PROFITABILITY

• The Nordic P&C market has generally experienced good profitability since the beginning of 2000. The low interest rate environment and hence low return on investments has made the industry focus on profitability in the insurance operations.

• Renewal rates are around 80-90%.

LOYAL CLIENTS

DISTRIBUTION

• The market is characterized by low expense ratios in the rage of 15-20%. European competitors' expense ratios are usually considerably higher.

• The four largest companies account for 75-90% of the markets in Norway, Finland and Sweden. In Denmark the market is less consolidated.

13

If P&C

By Business Area By Country

Private; 72; 60 %

Commercial; 30; 25 %

Industrial; 13; 11 %

Baltic; 5; 4 %

Technical Results, EUR 124m

Norway; 30 ; 24 %

Sweden; 41 ; 33 %

Finland ; 45 ; 37 %

Denmark; (2); -2 %

Baltic; 5; 4 %

Gross Written Premiums, EUR 1,669m

By Business Area By Country

Private; 665; 40% Commercial;

663; 40%

Industrial; 305; 18%

Baltic; 35; 2% Norway;

515 ; 31 %

Sweden; 446 ; 27

%

Finland ; 527 ; 31

%

Denmark; 145 ; 9 %

Baltic; 35; 2 %

If P&C

14

Diversification in Sales and Results

If - Total If Sweden If Norway If Finland If Denmark

Geographical Diversification in CR

Combined Ratio ― If P&C and Nordic Peers

Combined Ratio Development

Standard deviation 2008-2014

2.1%

4.6%

4.2%

4.7%

3.8%

66,2 65,9 66,9 68,1 68,0 69,1 68,4 65,9 65,4 65,1 67,5 66,6

24,3 24,0 23,7 23,7 24,1 23,7 23,5 23,0 22,8 22,5 22,8 22,6

90,5 89,9 90,6 91,8 92,1 92,8 92,0 88,9 88,1 87,7 90,3 89,2

0

20

40

60

80

100%

Risk ratio Cost ratio Target CR

15

If P&C

92,1 92,8 92 88,9 88,1

93 96,1 95,2

90,7 90,6

80859095

100

2009 2010 2011 2012 2013

%

If P&C Nordic Market (incl. If)

Disclipined Underwriting and Diversification works

http://www.topdanmark.dk/

Strong & Stable Annual Profit Development

800 730

534 549 644

707 636

864 929 931

-267

1 127

943

308

978

689

526

-400

-200

0

200

400

600

800

1 000

1 200

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Profit before taxComprehensive income

EURm

16

If P&C

EURm 3M/2015 3M/2014 Profit before taxes 200 194 Comprehensive Income 265 209

0

50

100

150

200

250

300

350Technical result Investment result Operating result

Seasonality in Quarterly Results and CR%

Q4 Q3 Q2 Q1 Average Quarterly CR%, 2006-2014 90.1 89.2 86.5 93.5 Year 2014 CR% 87.1 86.9 86.5 90.3 Year 2015 CR% 89.2

If P&C

17

EURm

Conservative Investment Portfolio

• Duration 0.9 years • Average Maturity 2.4 years • Fixed Income Running Yield 2.2%

Mark-to-Market Investment Return Investment Allocation of Total EUR 11.8bn

4,3% 5,8%

4,4% 2,6%

-3,1%

12,4%

7,4%

1,8%

6,1% 5,0% 4,1%

-4%

-2%

1%

4%

6%

9%

11%

14%

Money Market

9%

Public sector 17%

Other fixed income

61%

Equities 13%

Private Equity 0,2%

Real Estate 0,2%

18

If P&C

821

113

689 558

459

0200400600800

1 000

2010 2011 2012 2013 2014

Investment Return, EURm

Q1/2015 EUR 237m

Q1/2015 2.0%

19


Finnish Life Insurer with Wealth management Focus

Client Segment

Underlying Market

Critical Success Factors Sales & Client Services

Corporates Employee Benefit • Expertise in Rewards and Incentives, Pension & Risk Life Solutions and Asset Management

Mandatum Life

HNWI Wealth Management

• Professional Wealth Management • Management of Client Relationships

Mandatum Life

Retail Clients Savings and Insurance Products

• Distribution Power Danske Bank

Mandatum Life

20

Cros

s-sa

les

Premiums Written*, total EUR 378m Insurance Savings, total EUR 10,183m

*) Direct insurance

128

33 139

5 29

23 20

1

Unit-linked life Unit-linked pension Unit-linked capital redemptionUnit-linked Baltic Other life Other pensionOther capital redemption Other Baltic

2 039

1 856

1 833

158

212

4 043

24 18

Mandatum Life Business Volumes

U-L EUR 5,886m

With-Profit EUR 4,297

U-L EUR 305m

With-Profit EUR 73m

Focus area

4 652 4 626 4 738 4 695 4 621 4 487 4 431 4 410 4 249 4 071 3 927 3 837 3 834

1 228 1 219 607 884 1 262 1 752 2 071 1 637 2 359 3 124 3 054 3 833 4 616 5 312 5 890

02 0004 0006 0008 000

10 00012 000

Guaranteed interest rates Segregated funds Unit-linked

Technical Reserves, EUR 10,377m EURm

Mandatum Life

21

Market Position by Premiums Written, % Market Shares in Finland

Mandatum Life

22

17,9 17,9

43,8

12,6

39,5

10,7

All Products Unit-Linked Group Pension PrivateCustomers

Corporates Baltics

Finnish With-Profit Life Insurance Market PRINCIPLE OF FAIRNESS

• There is no exact rule on profit sharing (e.g. 90%/10%). • In the current markets, the principle is reflected in policyholders´

reasonable expectations for total accrual, which is an average annual yield of Finnish government bonds over time.

SMOOTHENED BONUSES AND DIVIDENDS OVER TIME

• When company decides on bonuses and dividends, it takes into account (i) policy holders´ reasonable expectations, (ii) realized investment returns and current solvency and (iii) uncertainty about the future market environment => Bonuses and dividends can be smoothened over time.

BETTER POSITION FOR RISK TAKING BENEFITS STAKEHOLDERS

• Finnish Profit sharing mechanism facilitates and incentives for active investment strategies and risk taking.

• Profit sharing mechanism have benefited both policyholders and shareholders over the years.

Mandatum Life

23

Profit Development

295 342

140 121 142 137 136 153 163

286

80

-378

495

332

-115

286 220

149

-500

-250

0

250

500

2006 2007 2008 2009 2010 2011 2012 2013 2014

EURm

Profit before taxesComprehensive income

Mandatum Life

24

EURm 3M/2015 3M/2014 Profit before taxes 39 37 Comprehensive Income 171 18

Mandatum Life Profit by Components

Mandatum Life Group, expense ratio

Mandatum Life

25

Total expense ratio, % 103.7 104.6 Incl. kick backs, % 84.7 84.8 * Includes guaranteed interest, bonuses and change in the reserves of the above items ** Result of unit-linked business EURm 5.4

EURm 1-3/2015 1-3/2014 Net investment income 534.2 118.6

- Transferred to expense result -6.3 -5.5 - Return on unit-linked policies -465.8 -40.4 - Return on with-profit policies* -43.9 -46.0

INVESTMENT RESULT 18.2 26.8 EXPENSE RESULT** 4.8 4.1 RISK RESULT 6.4 4.4 OTHERS 9.0 1.6 PROFIT BEFORE TAXES 38.5 36.9 Change in the market value of investments 200.0 -15.6 PROFIT AT MARKET VALUES 238.5 21.2

Absolute Return Investment Portfolio

• Duration 1.7 years • Average Maturity 2.1 years • Fixed Income Running Yield 3.4%

Mark-to-Market Investment Returns Investment Allocation of Total EUR 5.5bn*

8,3% 12,0%

9,7%

5,0%

-7,8%

16,8%

11,1%

-1,4%

9,4% 7,1%

4,6%

-10%

-5%

0%

5%

10%

15%

20%

Mandatum Life

26

615

-59

504 391

251

-2000

200400600800

2010 2011 2012 2013 2014

ML Investment Return, EURm

Money market 17%

Public sector 3%

Other fixed income 37% Equities 31%

Private equity 4%

Real estate 4% Other 6%

Q1/2015 EUR 265m

Q1/2015 4.2%

*excluding the segregated fund

27

Sampo Group Basic Facts 3-10 If P&C The Leading Nordic P&C Insurer 11-18 Mandatum Life A Finnish Financial Services Company 19-26 Sampo Group A Productive Value Creator 27-35 Sampo plc The Listed Parent Company - A Stable Dividend Payer 36-43 Appendix 44-56

948 1 295 1 353

870 825

1 320 1 228 1 622 1 668 1 759

-500

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

P&C Life Banking Nordea dividends Other

Stable Development of Profit before Taxes

* One-off item – sale of Sampo Bank

EURm

*

•If P&C •Mandatum Life •Sampo Bank

•If P&C •Mandatum Life •Nordea / Investment

•If P&C •Mandatum Life •Nordea / Associated

Sampo Group ― Results, Capitalisation and Investments

28

3,833

EURm 3M/2015 3M/2014 P&C 200 194 Life 39 37 Nordea 223 170 Holding 26 -4 Group 487 396

Stable Companies & Group Level Diversification*

LOW VOLATILITY EARNINGS • Geographical diversification • Strong Retail Banking Franchise • Diversified earnings base: -Banking (Retail, Wholesale) -Wealth Management (Asset

Management, Private Banking, Life & Pensions)

• Low earnings volatility & stable ROE over the cycle

LOW VOLATILITY C/R • Geographical diversification • Strong Retail P&C Franchise • Several Lines of Businesses -Motor, Cargo -Workers´ compensation -Liability -Accident -Property • Low C/R volatility and

Conservative Investments

FOCUS IN U-L & WM • Finland & Baltics • Strong Finnish Position • Product areas -Wealth Management -Unit-linked Business -With-profit Business -Remuneration services -Risk insurance • Dependency on Capital

Markets

1 0.30 1 0.18 0.85 1

* Correlations of quarterly Reported Profits Q1/2005–Q1/2015

PBT 2010-14 IF 45% ML 10% Nordea 45%

P/L CONTRIBUTIONS


29

1 899

1 324

3 500

-866

5 856

9 764

P&C 857 -886

381

-1 0000

1 0002 0003 0004 0005 0006 0007 0008 0009 000

10 000

P&C Life Nordea Diversific. Group EC Group ASC Regulatoryminimum

Strong Group Solvency

• Economic Capital (EC)need is measured at 99.5% confidence level

• By nature, SII framework is similar to EC techniques used by Sampo

• EC models are developed to be in line with regulatory requirements for Internal models

• Current Ratio of Adjusted Solvency Capital and EC is 158% (9,258/5,856)

EURm

Nordea 3,879

Internal Treatment ≈ S II

• Minimum requirement (5,060) is sum of IF, ML (SI) and Nordea (BII) with transition rules

• Additive figure does not include diversification effects. Nordea´s requirement is calculated at 99.90% confidence level

• Current Ratio 183% (9,258/5,060)

Regulatory Treatment = S I

Sampo plc, 46

*) Liability side adjustments which equal discount effect less risk margin **) Finnish equalisation provisions

*

Life 279

9,258

5,060

**


30

Internal Capital Base above Capital Needs 1

976

2 65

7

3 27

9

3 78

3

4 02

4

4 13

1

4 18

9

4 28

1

4 28

1

4 22

2

4 39

4

4 37

4

4 62

9

4 61

9

4 67

8

4 56

0 5 38

9

5 27

6

5 38

0

5 36

1

5 49

0

5 43

0

5 64

7

5 51

0

5 85

6

2 29

4 3 05

4

3 73

8

4 24

5

4 60

0

4 72

2

4 79

9

4 95

4

4 94

7

4 85

8

5 07

6

5 01

5

5 26

2

5 23

4

5 31

7

5 17

9 6 22

1

6 08

8

6 20

5

6 10

7

6 24

1

6 15

7

6 40

3

6 31

1

6 72

2

4 10

9

6 40

1 7 66

6

7 07

6

7 56

5

7 16

8

7 27

9 8 52

1

8 43

2

8 12

0

6 83

0

7 26

2

7 87

5

7 58

1

8 07

5

8 19

7 8 87

2

9 03

9

9 39

1

9 41

7

9 69

7

9 49

9

9 58

6

9 10

0

9 25

8

0

2 000

4 000

6 000

8 000

10 000

12 000

31.3

.09

30.6

.09

30.9

.09

31.1

2.09

31.3

.10

30.6

.10

30.9

.10

31.1

2.10

31.3

.11

30.6

.11

30.9

.11

31.1

2.11

31.3

.12

30.6

.12

30.9

.12

31.1

2.12

31.3

.13

30.6

.13

30.9

.13

31.1

2.13

31.3

.14

30.6

.14

30.9

.14

31.1

2.14

31.3

.15

EC,Diversified EC,Undiversified ASC

EURm


31

Investment Allocation by Risk Profile


32

Total Group (MEUR) 17,611 18,409 19,215 20,211

06/14 09/14 12/14 03/15

Money Market 16% 20% 41% 14% 19% 66% 11% 25% 73% 9% 19% 79%Long-Term Fixed Income 73% 36% 28% 75% 36% 21% 76% 35% 19% 77% 39% 13%Equity 11% 30% 19% 11% 30% 8% 12% 26% 5% 13% 27% 7%Private Equity 0% 5% 12% 0% 5% 4% 0% 4% 3% 0% 4% 1%Other 0% 10% 1% 0% 10% 0% 0% 10% 0% 0% 10% 0%

11,925

5,405

281

12,293

5,343

774

11,513

6,644

1,058

11,827

6,716

1,667

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000If P&

C

Man

datu

mLi

fe Sam

poPl

c If P&C

Man

datu

mLi

fe Sam

poPl

c If P&C

Man

datu

mLi

fe Sam

poPl

c If P&C

Man

datu

mLi

fe Sam

poPl

c

Investments & Counterparty Exposures*

* In Exposure tables the calculation rules may differ slightly from Allocation tables in some areas.


33

31.3.2015 AAA AA+ - AA-

A+ - A-

BBB+ - BBB-

BB+ - C

D NonRated

Fixed Income Total

Equities OtherDerivatives

(Counterparty Risk)

Total Change from 31.12.2014

Basic Industry - - 0 105 294 - 121 520 209 - - 729 + 29

Capital Goods - - 32 51 30 - 111 224 661 - - 885 + 165

Consumer Products - 88 120 66 148 - 138 560 557 - - 1,117 + 246

Energy - 31 - 21 87 - 334 473 4 0 - 477 + 29

Financial Institutions 2 2,639 2,756 443 402 - 23 6,264 148 24 8 6,444 + 427

Governments 582 217 - 1 - - - 800 - - - 800 - 504

Government Guaranteed 106 82 - - - - - 188 - - - 188 + 3

Health Care - - 21 36 55 - 52 163 81 - - 245 + 55

Insurance - - 11 67 - - 41 119 6 40 - 165 + 3

Media - - - - 14 - 46 60 - - - 60 + 1

Public Sector, other 948 153 - - - - - 1,101 - - - 1,101 + 114

Real Estate - 9 - 1 - - 587 597 - 282 - 879 + 53

Services - - 0 9 136 - 35 180 48 0 - 228 + 20

Technology and Electronics 1 - 24 1 2 - 37 64 106 3 - 173 + 39

Telecommunications - - 102 26 53 - 44 225 88 0 - 314 + 11

Transportation - 77 79 24 23 - 193 397 13 - - 410 + 75

Utilities - - 174 271 1 - 83 528 - - - 528 + 88

Others - - - - 7 - 10 17 0 16 - 33 - 0

Asset-backed Securities - - - - - - - - - - - - -

Covered Bonds 2,657 255 13 - - - - 2,924 - - - 2,924 + 81

Funds - - 70 43 16 - 126 256 1,575 750 - 2,582 + 132

Total 4,294 3,550 3,403 1,164 1,267 - 1,981 15,660 3,498 1,116 8 20,283 + 1,064

Change from 31.3.2015 - 336 + 116 + 572 + 89 + 103 - + 75 + 618 + 393 + 74 - 21 + 1,064 EURm

Note: Category Other includes private equity, unlisted equity and non-listed real estate. Category Derivatives includes only OTC derivatives and corresponding collaterals.

Fixed Income Investments in the Financial Sector*

*Exposure tables vs. Allocation tables – small differences.


34

EURm Covered bonds

Money market

Long-term senior debt

Long-term subord.

debt Total % Sweden 1,522 1,178 814 277 3,791 41% Finland 224 2,335 168 11 2,738 30% Norway 813 544 89 1,446 16% Denmark 259 265 22 546 6% Switzerland 133 12 145 2% France 36 63 15 113 1% the Netherlands 2 107 110 1% Germany 19 58 0 77 1% the United States 0 65 1 66 1% Iceland 58 58 1% Austria 32 32 0.4% Others 17 23 4 9 54 1% Total 2,924 3,537 2,279 437 9,176 100%

Sampo Group Public Sector Fixed Income Investments ― no Periphery*

* Exposure tables vs. Allocation tables – small differences 35


EURm

Government

Government guaranteed

Public sector, other

Total

Sweden 260 809 1,069

Norway 272 272

France 210 4 214

the Netherlands 191 191 Germany 109 71 180 Finland 22 77 20 119 Denmark 35 35 Belgium 5 5 Austria 3 3 Slovenia 1 1 Total 800 188 1,101 2,089

36


Straightforward Cash Flows & Strong Balance Sheet

Dividends • If P&C • Mandatum Life • Nordea

• Internal Administration Costs • Discretionary Dividends for Shareholders • Interest Expenses for Bondholders

Income • Interest on Liquidity • Income from other

investments

Sampo plc

Assets EURm 9,960 Liabilities EURm 9,960

Liquidity 1,315 CPs Issued 298

Investment assets 157 LT Senior Debt 1,873

-Real Estate 2 -Private Placements 149

-Fixed Income 21 -Bonds Issued 1,724

-Equity & Private Eq. 134 -Pension Insurance Loans 0

Subordinated Loans 501 Subordinated Debt 0

Equity Holdings 7,928 Capital 7,686

-Subsidiaries 2,370 -Undistributable 98

-Associated 5,557 -Distributable 7,588

Other Assets 60 Other Liabilities 103

Flow of Funds Balance Sheet

Key Credit Metrics well in Single A -range

Sampo plc 31.3.2015 Gross Debt, EURm 2,171 Gross Debt to Equity 28% Financial Leverage* 22%

Sampo Group, EURm Q4/2014 Q1/2015 Shareholders' Equity 10,924 11,617 Hybrid Bonds 111 109.8 Senior Debt 2,192 2,027 Financial leverage 17.4% 15.5%

Sampo plc

37 *= Debt/(Debt+Equity)

Dividends & Reported Profits

* Parent Company is not equal to Holding Segment; Dividend Income includes also dividends from Private Equity investments

747

-8 -37

702 762

-10 -70

683

773

-17 -20

737

879

-20 -26

832

1 069

-18 -1

1 050

-100

100

300

500

700

900

1100

Dividend income Operating expenses Net financialexpenses

Profit before taxes

2010 2011 2012 2013 2014*

EURm

Sampo plc

38

EURm 3M/2015 3M/2014 Profit before taxes -4 -4 Comprehensive Income 659 466

Dividends Received by Payment Year

*) Sampo Bank 2005-2006, Nordea 2007->

EURm

**

249

1 031

519

181

488 540 406

544 490 597 100

300

200

200

100 100

100

100

141

75

35

130 80

204 250 224 293

370

533

490

1 406

754

511 568

744 756 768 883

1 067

633

0

200

400

600

800

1 000

1 200

1 400

1 600

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015If Mandatum Life Banking*

Sampo plc

39

Low Net Debt vs. stable Dividend Inflows

Sampo Group ― Conservative Leverage

-4 000

-2 000

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

Q1/0

5Q3

/05

Q1/0

6Q3

/06

Q1/0

7Q3

/07

Q1/0

8Q3

/08

Q1/0

9Q3

/09

Q1/1

0Q3

/10

Q1/1

1Q3

/11

Q1/1

2Q3

/12

Q1/1

3Q3

/13

Q1/1

4Q3

/14

Q1/1

5

Sampo plc Net debt

Group NAV

Group Equity

40

Sampo plc

EURm

0%

5%

10%

15%

20%

25%

30%

35%

40%

Q1/0

5Q3

/05

Q1/0

6Q3

/06

Q1/0

7Q3

/07

Q1/0

8Q3

/08

Q1/0

9Q3

/09

Q1/1

0Q3

/10

Q1/1

1Q3

/11

Q1/1

2Q3

/12

Q1/1

3Q3

/13

Q1/1

4Q3

/14

Q1/1

5

Net Debt/NAV

Sampo plc Investments and Debt Instruments Instrument & Principal Coupon Swap Effective

Rate Maturity

Senior Bond 2,000 SEKm SEK3M+ 0.75% --- 0.7190% 28.05.2015

Senior Bond 300 EURm 4.2500% EUR3M+1,4727% 1.5207% 22.02.2016

Senior Bond 500 EURm 4.2500% EUR3M+2,7910% 2.8330% 27.02.2017

Senior Bond 2,000 SEKm SEK3M + 1.45% --- 1.4190% 29.05.2018

Senior Bond 500 EURm 1.50% --- 1.5920% 16.9.2021

CP’s issued 298 EURm EUR + Margin 0.5350% Average 3M

Public debt 2,022 EURm 1.6204%

Private placements 149 EURm 2.0063%

Total 2,171 EURm 1.6470%

41

Sampo plc

0

100

200

300

400

500

600

2015 2016 2017 2018 2019 2020 2021

CP´s Senior under EMTN Senior Retail Private

Instrument & Principal Coupon Call/ Maturity

Mandatum Capital Loan 100 m€ 4.828% Every year

IF PerpNC1029,65m€ 4.943% 16.06.2015

IF 30NC6.5 90 m€ 4.6970% 26.11.2018

IF 30NC10 98,935 m€ 6.000% 29.05.2018

Nordea AT1 PerpNC5 148.5 m$ 5.5000% 23.9.2019

Topdanmark Tier1 33.5 m€ EUR3m+1.9% 15.9.2017

Subordinated Loans 501 m€ 5.04%

Other Fixed Income 21 m€ 5.20%

Equity, P.E., Real Estate 136m€ 3.50%

• Total Debt at running cost of 1.6470% • Fixed Income Assets at running yield of 5.05% • Running yield of other investments also

higher than cost of debt • In case subordinated loans are sold to markets

group wide capital base would increase

EURm

Sampo plc Key Credit Considerations

Diversification through Insurance & Banking in the Nordic Region

Management with a proven Track Record in long-term Value Creation

Conservative Financial Profile, strong Capitalization and Liquidity

Stable Dividend Flows from Affiliated Companies with strong Brands

Bondholder Value Created

Sampo plc

42

43

Appendix

Sampo Group’s outlook for 2015

• Sampo Group’s business areas are expected to report good operating results for 2015.

• However, the mark-to-market results are, particularly in life insurance, highly dependent on capital market developments. The very

low interest rate level also creates a challenging environment for reinvestment in fixed income instruments.

• The P&C insurance operations are expected to reach their long-term combined ratio target of below 95 per cent in 2015 and achieve a combined ratio of 88-91 per cent excluding the effect of the Norwegian pension reform and the change in discount rate for Finnish annuities.

• Nordea’s contribution to the Group’s profit is expected to be significant.

44

Appendix 44-56

Principles of Investment Management

• Company specific needs form the basis for all investments – Liabilities intensively analysed and modelled. – Regulatory requirements.

• Strategy – Absolute Return targets taking into account the liabilities and general business targets. – Direct Investments into Nordic countries mainly, outside Nordics Funds mainly. – No diversification for the sake of diversification.

• Centrally Managed – Sampo plc Chief Investment Officer responsible for all investments, all portfolio

managers have a direct reporting line to him. – Common infrastructure for investment administration and reporting. – Investment strategies coordinated and streamlined, no overlapping activities to prevent Group wide concentrations.

45

Appendix

Risk Management Principles • Scope

– Sampo´s Board of Directors requires that all activities involving the exposure of any Sampo Group company to risks, as well as activities controlling those risks, are arranged to comply with these general guidelines and related instructions as well as with applicable legislation and regulations

– The Board of Directors will supervise the risk taking and risk control activities – The Principles apply to all Sampo Group companies

• The Key Objectives – Balance between risks, capital and earning – Cost efficient and high quality processes – Strategic and operational flexibility

• The Central Tasks – Identification of risks – Assessment of required capital – Pricing of risks – Managing risk exposures, capital positions and operative processes – Measuring and reporting risks 46

Appendix

For more detailed description of Sampo Group´s Risk Management Principles, see http://www.sampo.com/governance/internal-control/risk-management/

Principles of Capital Management

• Risk Capital Available > Risk Capital needed – Risk Capital Available = Solvency I (SI) Capital + Other items absorbing economic

losses. – Risk Capital Need = Measured Economic Capital + ”Non-measurable” risks. – Buffer between measures under constant considerations. – Pro-Active management of Risks/Capitalisation.

• Economic Capital at 99.5% as a basis for Risk Capital Need – Economic capital is an estimate of Risk Capital needed to keep the Group solvent. – EC is calculated at 99.5% confidence level and 1Y risk horizon. – ”Non-measurable” risks include liquidity, market, illiquidity and business

environment risks.

• Adjusted Solvency Capital is a measure of Risk Capital Available – Solvency I capital items included as such. – The difference between Undiscounted technical provisions in balance sheet and

their discounted value (so called Liability Side adjustment). – Capital instruments excluded from regulatory capital in SI.

Appendix

47

48

Appendix

Sampo FiCo Coordination duties as of 31.12.2014

48

Sampo’s P&C insurance operations are merged with If (2002). Following the transaction, Sampo owns 38 per cent of If. If becomes fully owned by Sampo (2004). Business areas: - P&C insurance - Long-term savings - Banking

Sampo Insurance Company and Leonia Bank merge into Sampo-Leonia Financial Group. Business areas: - P&C insurance - Long-term savings -life insurance -asset management -mutual funds - Banking - Investment banking

Mandatum Bank is merged into Sampo-Leonia, and the Group’s name is shortened to Sampo.

Sampo divests Sampo Bank to Danske Bank. Business areas: - P&C insurance - Life insurance &

wealth management

Sampo’s Nordea holding exceeds 20%. Nordea becomes an associated company.

2007 2004 2002 2001 2000 2010 2011

Sampo Group’s (If P&C´s) Topdanmark holding exceeds 23%. Topdanmark becomes If´s associated company.

2012

Sampo Group (If P&C) acquires Tryg’s Finnish Business. If P&C signs a partnership agreement with Nordea.

Sampo Group Through Structural Changes

to the Leading Nordic Financial Group

2013 2014

Sampo Group (Mandatum Life) acquires Suomi Mutual´s with-profit group pension portfolio.

49

Appendix

http://intra.ifint.biz/nav.nsf?Open&Co=fi&BA=Corporate&Frameset=Body&url=http://intranet.ifint.biz/news/Pages/Main.aspx?newsLanguage=5&newsBA=1

Financial Strength Rating History If P&C Insurance Ltd (Sweden), If P&C Insurance Company Ltd (Finland), Sampo plc

The Sampo Group’s P&C insurance companies became part of If in January 2002.

AA-/

A+/

A/

A-/

BBB+/

BBB/

Moody´s If P&C S&P If P&C

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Poss

ible

dow

ngra

de Ja

n 03

Stab

le F

eb 0

2

Neg

ativ

e Au

g 02

Stab

le A

pr 0

3

Poss

ible

upg

rade

Feb

04

Stab

le M

ay 0

4

Posi

tive

May

06

Stab

le N

ov 0

8

50

Moody´s Sampo plc

Apr 04 First-time issuer rating

Appendix

Aa3

A1

A2

A3

Baa1

Baa2

IF P&C Quarterly Results and C/R EURm Q1/15 Q4/14 Q3/14 Q2/14 Q1/14 Q4/13 Q3/13 Q2/13 Q1/13 Q4/12

Premiums earned 1,076 1,108 1,124 1,122 1,104 1,112 1,139 1,140 1,115 1,121

Claims incurred -780 -776 -793 -783 -811 -791 -802 -800 -824 -801

Operating expenses -180 -189 -183 -187 -186 -186 -191 -188 -190 -198

Other technical income and expenses -1 -1 0 1 1 1 0 0 1 0

Allocated investment return transferred from the non-technical account

9 5 7 10 15 12 16 17 20 14

Technical result 124 147 155 162 124 148 161 170 122 136

Investment result 84 81 75 139 88 104 89 115 102 84

Allocated investment return transferred to the technical account

-18 -16 -18 -21 -27 -25 -30 -31 -34 -27

Other income and expenses 10 8 16 9 9 3 6 15 14 11

Operating result 200 219 228 289 194 230 227 269 204 205

Risk ratio, % 66.6 64.4 64.7 64.0 67.5 65.1 64.7 64.2 67.7 65.5

Combined ratio, % 89.2 87.1 86.9 86.5 90.3 87.9 87.2 86.7 90.9 89.1

Appendix

51

IF Regulatory Solvency Capital & Ratio*

54%

70%

88%

74% 71% 66%

77% 79%

72%

75% 81% 82% 87%

0%

20%

40%

60%

80%

100%

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500% EURm

Solvency capital (lhs) Solvency ratio (rhs)* Solvency ratio, (IFRS) % = + solvency capital

+ premiums earned from 12 months x 100% 52

Appendix

IF P&C Reinsurance Programmes

53

IF is using reinsurance to: - Utilize its own capital base efficiently and reduce cost of capital - Limit large fluctuations of underwriting results - Get access to reinsurers´ competence base

IF has the following Reinsurance Programmes in place

• Largest & most diversified portfolio in the Nordics

• Focus purely on underwriting • Specialised Reinsurance Unit

• Reinsurance partners having

reinsurance as core business • Relatively high retentions

• Stable reinsurance program • Efficient pricing and terms

Appendix

In Millions Marine Hull

Reporter Small Vessels Clash Cover

Marine Hull I.V. Reporter

Marine Hull War Risk Reporter

Energy Offshore Per Event

US Terrorism Per risk

Capacity SEK 400 SEK 250 SEK 310 USD 60 USD 40 USD 150

Retention SEK 100 SEK 100 SEK 100 USD 0,25 USD 25 USD 25

In Millions Catastrophe per

Event Property per

Risk Casualty Personal Accident Motor TPL Cargo Reporter

Capacity SEK 6,300 SEK 2,000 / 3,500 SEK 500/€50/$50 SEK 1,100 Unlimited SEK 850

Retention SEK 250 SEK 250 SEK 100/€10/$15 SEK 100 SEK 100 SEK 100

Mandatum Life Regulatory Solvency Ratio*

* Solvency ratio, % of technical provision, (IFRS) = + solvency capital + liabilities for insurance and investment contracts - reinsurers’ share of insurance liabilities - 75% x technical provisions relating to unit-linked insurance

x 100%

17,7%

21,3% 20,1%

16,5%

7,9%

18,5%

25,8%

20,9%

27,7% 27,6%

22,9%

26,3%

0%

5%

10%

15%

20%

25%

30%

54

Appendix

Nordea Profitable & The Most Diversified Nordic Bank

885

8

83

847

7

81

833

8

18

832

5

92 8

78

730

960

1

071

1

003

9

49

566

1

029

1

037

1

099

9

22

1 0

59

1 0

41

1 0

48

1 0

21

1 0

06

1 1

06

935

1

126

1

157

1

408

21

36

89 32

0 356

425

358

347

261

245

207 16

6 24

2 11

8 11

2 26

3 21

8 217

254

244

198

186

171

180 15

8 13

5 11

2 129

122

0

200

400

600

800

1 000

1 200

1 400

1 600

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

Q113

Q213

Q313

Q413

Q114

Q214

Q314

Q414

Q115

EURm Restructuring provision Loan losses Operating profit

55

Appendix

Nordea BV on Consolidated Balance Sheet

Figures Per Share EUR Acquisition price 6.46 Book value 7.85 Market Value* 11.93 No. of shares 860,440,497

* As of 27/4/2015

Nordea in Sampo Group’s B/S EURm

Acquisition price 5,557.3

Retained earnings 1,570.7

Accumulated other changes in Nordea’s equity -62.7

Share of Nordea’s net profit 230.0

Amortisation -8.8

Deferred tax 1.9

Dividends -533.5

Share of Nordea’s other comprehensive income -20.8

Share of Nordea’s other changes in equity -7.3

Share of Nordea’s goodwill change -13.0

Total 6,755.4

Appendix

56

sampo group...sampo group debt investor presentation prepared may 21, 2015 figures march 31, 2015

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