Sampo Group’s Online Annual Report 2012 and Sampo’s video ‘25 Years as a Listed Company’ have been granted the international Red Dot Communication Design 2013 Awards.

Red Dot design award winner 2013

Group Solvency

With Nordea Bank AB (publ) as its associated company as of 31 December 2009 Sampo Group became a financial and insurance conglomerate according to the Act on the Supervision of Financial and Insurance Conglomerates (2004/699).

Group solvency has in 2012 been calculated according to Chapter 3 of the Act on the Supervision of Financial and Insurance Conglomerates (2004/699). The Act is based on Directive 2002/87/EC of the European Parliament and of the Council on the supplementary supervision of credit institutions, insurance undertakings and investment.

Sampo Group Solvency

EURm

31 Dec 2012

31 Dec 2011

Group capital

10,113 

8,920

Sectoral items

1,285 

1,091

Intangibles and other deductibles

-2,518 

-2,545

Dividends for the current period

-756 

-672

Group's own funds, total

8,125 

6,794

     

Minimum requirements for own funds, total

4,767 

4,902

     

Group solvency

3,358 

1,892

     

Group solvency ratio

(Own funds % of minimum requirements)


170.4


138.6

Group solvency ratio (own funds in relation to minimum requirements for own funds) increased significantly during 2012 and amounted to 170.4 per cent (138.6) as at 31 December 2012. The increase was mainly caused by higher equity in Sampo Group and strong capital generation in Nordea. Changes in other items were relatively small.

In addition to the aforementioned conglomerate solvency considerations, Sampo Group’s solvency is assessed internally by comparing the capital required to the capital available. Capital requirement assessment is based on an economic capital framework, in which Group companies quantify the amount of capital required for measurable risks over a one year time horizon at 99.5 per cent’s confidence level. In addition to economic capital, companies assess their capital need related to non-measurable risks like risks in business environment.

Capital available or Adjusted Solvency Capital include regulatory capital and in addition other loss absorbing items like the effect of discounting technical reserves and other reserves excluded from regulatory capital.

The economic capital tied up in Group’s operations on 31 December 2012 was EUR 4,560 million (4,374) and adjusted solvency capital was EUR 8,197 million (7,262).