Sampo Group in 2012
Sampo Group reported good results for 2012 in all of its businesses despite the challenging economic environment. P&C insurance achieved a better combined ratio than ever before, Nordea achieved an all-time high operating profit and the volume development in life insurance was exceptionally strong. Sampo Group’s profit before taxes for 2012 rose to EUR 1,616 million (1,228). Total comprehensive income for the period, taking changes in the market value of assets into account, increased to EUR 1,855 million (686).
Earnings per share amounted to EUR 2.51 (1.85). Mark-to-market earnings per share were EUR 3.31 (1.22) and return on equity for the Group increased to 19.5 per cent for 2012 (7.7).
The Board proposes to the Annual General Meeting to be held on 18 April 2013 a dividend of EUR 1.35 per share (1.20) and an authorization to repurchase a maximum of 50 million Sampo A shares.
Net asset value per share on 31 December 2012 was EUR 17.55 (14.05). Fair value reserve on the Group level amounted to EUR 749 million (355).
Profit before taxes in the P&C insurance segment increased 35 per cent to EUR 858 million (636). Combined ratio was exceptionally strong both for the full year 2012 and the fourth quarter, 89.3 per cent (92.0) and 88.8 per cent (90.2), respectively. Return on equity was 36.2 per cent (12.4) and fair value reserve increased to EUR 364 million (139).
Sampo’s share of Nordea’s net profit in 2012 rose to EUR 653 million (534). Nordea’s RoE was 11.6 per cent (10.6) and core Tier 1 ratio (excluding transition rules) rose to 13.1 per cent (11.2). In segment reporting the share of Nordea’s profit is included in the segment ‘Holding’.
In life insurance profit before taxes amounted to EUR 136 million (137). The discount rate of 2.5 per cent will be used to discount the guaranteed rate portfolios in 2013 and 3.25 per cent in 2014. Premiums grew 15 per cent to EUR 977 million (849). Fair value reserve increased to EUR 391 million (214) as at 31 December 2012. Return on equity increased to 28.5 per cent (-11.7).
Sampo Group’s total investment assets at the end of 2012 amounted to EUR 18.2 billion (17.6), of which 79 per cent was invested in fixed income instruments (80), 16 per cent in equities (15) and 5 per cent in other assets (5).
The Group’s equity as at 31 December 2012 amounted to EUR 10,113 million (8,920). Equity was strengthened mainly by the comprehensive result for the year of EUR 1.855 million and reduced by the EUR 672 million of dividends paid.
Sampo Group’s own funds exceeded the minimum solvency requirements at the end of 2012 by EUR 3,358 million (1,892) and the conglomerate solvency ratio stood at 170.4 per cent (138.6).
Sampo Group, 2012
|Profit before taxes||1,616||1,228||32|
|Holding (excl. Nordea)||-30||-77||-61|
|Profit for the period||1,404||1,038||35|
|Earnings per share, EUR||2.51||1.85||0.66|
|EPS (incl. change in FVR), EUR||3.31||1.22||2.09|
|NAV per share, EUR||17.55||14.05||3.50|
|Average number of staff (FTE)||6,823||6,874||-51|
|Group solvency ratio, %||170.4||138.6||31.8|
Income statement items are compared on a year-on-year basis and comparison figures for balance sheet items are from 31 December 2011 unless otherwise stated.
The average EUR-SEK exchange rate used for income statement items is 8.7040 and the year-end exchange rate used for balance sheet items is 8.5820.