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.

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Notes to the Group’s financial statements

13 Intangible assets
Download as Excel            
               
P&C insurance
          2012
EURm       Goodwill Other
intangible
assets
Total
  At 1 Jan.            
  Cost       564 119 682
  Accumulated amortisation       - -102 -102
  Net carrying amount       564 17 580
               
  Opening net carrying amount       564 17 580
  Exchange differences       22 1 22
  Additions            
         Acquired separately       - 6 6
  Disposals       0 -1 -1
  Amortisation       - -2 -2
  Closing net carrying amount       585 21 606
               
  At 31 Dec.            
  Cost       585 125 710
  Accumulated amortisation       - -104 -104
  Net carrying amount       585 21 606
               
          2011
EURm       Goodwill Other
intangible
assets
Total
  At 1 Jan.            
  Cost       564 113 677
  Accumulated amortisation       - -100 -100
  Net carrying amount       564 13 577
               
  Opening net carrying amount       564 13 577
  Exchange differences       3 0 4
  Additions            
         Acquired separately       - 5 5
  Disposals       -4 - -4
  Amortisation       - -2 -2
  Closing net carrying amount       564 17 580
               
  At 31 Dec.            
  Cost       564 119 682
  Accumulated amortisation       - -102 -102
  Net carrying amount       564 17 580
               
               
Life insurance
    2012 2011
EURm Goodwill Other
intangible
assets
Total Goodwill Other
intangible
assets
Total
  At 1 Jan.            
  Cost 153 40 193 153 36 190
  Accumulated amortisation - -28 -28 - -25 -25
  Net carrying amount 153 12 165 153 12 165
               
  Opening net carrying amount 153 12 165 153 12 165
  Additions - 2 2 - 3 3
  Amortisation - -3 -3 - -3 -3
  Closing net carrying amount 153 11 164 153 12 165
               
  At 31 Dec.            
  Cost 153 42 195 153 40 193
  Accumulated amortisation - -31 -31 - -28 -28
  Net carrying amount 153 11 164 153 12 165
               
               
EURm         2012 2011
Group, total         771 745
               
Other intangible assets in all segments comprise mainly IT software.
               
Depreciation and impairment losses are included in the income statement item Other operating 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 and Mandatum Life.
               
The recoverable amounts for If have been determined by using a discounted cash flow model. The model is based on Sampo’s management’s best estimates of both historical evidence and economic conditions such as volumes, margins, income and cost development. The value in use model for Mandatum Life has been fundamentally based on the embedded value model where the cash flow estimates for existing policies are based on budgets approved by the management and on historical evidence in terms of policy surrendering, death and accident frequencies etc. The derived cash flows were discounted at the pre-tax rates of the weighted average cost of capital which for If was 9.1 % and for Mandatum Life 9.5 %.
               
Forecasts for If, approved by the management, cover years 2013 – 2015. The cash flows beyond that have been extrapolated using a 2 % growth rate. A 2 % growth rate for years beyond 2012 has been used for the markets where Mandatum Life operates.
               
In Mandatum Life, the recoverable amount exceeds its carrying amount by some EURm 130. With the calculation method used, e.g. a long-term decline of several percentage points in annual investment returns 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.