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

Notes to the Group’s financial statements

17 Determination and hierarchy of fair values
Download as Excel            
               
A large majority of Sampo Group's financial assets are valued at fair value. The valuation is based on either published price quatations 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 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.
 
In level 3, the measurement is based on other inputs rather than observable market data.
               
EURm     Level 1 Level 2 Level 3 Total
               
FINANCIAL ASSETS 31 Dec. 2012            
               
Derivative financial instruments            
  Interest rate swaps     2 62 - 64
  Other interest derivatives     - 2 - 2
  Foreign exchange derivatives     - 87 - 87
  Equity derivatives     - 16 - 16
        2 16 - 168
               
Financial assets designated at fair value through profit or loss          
  Equity securities     3 - - 3
  Debt securities     - 66 - 66
        3 66 - 70
               
Financial assets related to unit-linked insurance        
  Equity securities     239 67 14 320
  Debt securities     - 808 17 826
  Derivative financial instruments     1,821 520 50 2,390
  Mutual funds     - 16 - 16
        2,060 1,412 81 3,553
               
Financial assets available-for-sale *)            
  Equity securities     1,535 - 69 1,603
  Debt securities     253 12,439 73 12,764
  Mutual funds     1,131 118 894 2,143
        2,918 12,557 1,036 16,511
               
Total financial assests measured at fair value 4,984 14,051 1,117 20,301
               
FINANCIAL LIABILITIES 31 Dec. 2012            
               
Derivative financial instruments            
  Interest rate derivatives     - 4 - 4
  Foreign exchange derivatives     - 39 0 39
  Equity derivatives     - - 19 19
  Other derivatives     - - - 0
Total financial liabilities measured at fair value 0 43 19 62
*) During the financial year, debt securities EURm 7 have been transferred from level 1 to level to 2. Mutual funds EURm 34 have been transferred from level 2 to level 1.
               
               
EURm     Level 1 Level 2 Level 3 Total
               
FINANCIAL ASSETS 31 Dec. 2011            
               
Derivative financial instruments            
  Interest rate swaps     - 67 - 67
  Foreign exchange derivatives     - 98 - 98
  Equity derivatives     0 13 - 13
        0 13 - 179
               
Financial assets designated at fair value through profit or loss          
  Equity securities     1 - - 1
  Debt securities     31 174 - 205
        32 174 - 206
               
Financial assets related to unit-linked insurance          
  Equity securities     150 1 0 151
  Debt securities     4 566 0 570
  Derivative financial instruments     0 2 - 2
  Mutual funds     1,458 519 62 2,039
        1,612 1,087 63 2,762
               
Financial assets available-for-sale            
  Equity securities     1,394 - 71 1,465
  Debt securities     317 12,290 99 12,706
  Mutual funds     1,053 127 905 2,084
        2,764 12,417 1,074 16,254
               
Total financial assests measured at fair value   4,409 13,690 1,137 19,401
               
FINANCIAL LIABILITIES 31 Dec. 2011            
               
Derivative financial instruments            
  Interest rate derivatives     - 1 - 1
  Foreign exchange derivatives     - 265 - 265
  Equity derivatives     - 17 - 17
               
Total financial assests measured at fair value   - 282 - 282
               
Sensitivity analysis of fair values
               
The sensitivity of financial assets and liabilites to changes in exchange rates is assessed on business area level due to differenct base currencies. In P&C insurance, 10 percentage point depreciation of all other currencies against SEK would result in an effect recognised in profit/loss of EURm 15 (9) and in an effect recognised directly in equity of EURm 11 (1). In Life insurance, 10 percentage point depreciation of all other currencies against EUR would result in an effect recognised in profit/loss of EURm 52 (20) and in an effect recognised directly in equity of EURm 64 (60). In Holding, 10 percentage point depreciation of all other currencies against EUR would have no impact in profit/loss, but an effect recognised in equity of EURm 3 (2). The sensitivity analysis of the Group's fair values of financial assets and liabilities in differenct market risk scenarios is presented below. The effects represent the instantaneous effects of a one-off change in the underlying market variable on the fair values on 31 Dec. 2012. The sensitivity analysis includes the effects of derivative positions. All sensitivities are calculated before taxes.
               
The debt issued by Sampo plc is not included.
        Interest rate Equity Other
financial
investments
        1 %
parallel
shift down
1 %
parallel
shift up
20 %
fall in
prices
20 %
fall in
prices
  Effect recognised in profit/loss     -62 39 0 -4
  Effect recognised directly in equity     171 -166 -569 -176
               
  Total effect     109 -127 -569 -180