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


Sampo Group aims to create value for its shareholders. Value is created through efficient and highly profitable operating units and by investments in situations offering significant upside potential with manageable downside risk. Shareholders benefit from the value creation through a high and stable dividend yield.

Sampo Group's business areas are P&C insurance and life insurance under If and Mandatum Life brands, respectively. The Group is also the largest shareholder in Nordea Bank, the leading Nordic banking franchise. On a Group level Sampo has no stated strategy but the business areas have well-defined strategies based on return on equity targets.

The parent company Sampo plc’s A shares are listed on the Nasdaq OMX Helsinki. The parent company sets financial targets for the subsidiaries. For both P&C and life insurance operations the return on equity target is to exceed 17.5 per cent. In addition a separate target has been set for the combined ratio in the P&C insurance operation, i.e. the annual combined ratio to be below 95 per cent each and every year.

Financial Targets 2012

If P&C Insurance – Security and Stability

If's mission is to offer insurance solutions that provide customers security and stability in their business operations, housing and daily life. The company's vision is to be the leading property and casualty insurance company in the Nordic and Baltic regions with the most satisfied customers, leading edge insurance expertise and superior profitability.

If's strategic goal is to establish better profitability and customer satisfaction in the long run than competitors, coupled with high creditworthiness. The financial targets are to achieve a combined ratio of less than 95 per cent and a return on equity (RoE) of at least 17.5 per cent.

If's long-term priorities to ensure a strong and stable profitability development are based on a sound operating platform, leading cost position, most satisfied customers, leading edge insurance expertise and an investment strategy based on balanced risk. The following four areas constitute the key elements in If's strategic direction:

  • Customer value – If will exceed customer expectations through superior insurance solutions, fast and accurate claims management and sympathetic behavior.
  • Focused Insurance Expertise – If will purposefully strengthen the organisation's skills in developing, pricing and distributing insurance products, as well as in the areas of liability loss prevention and claims management.
  • Nordic Business Platform – If will create competitive advantage through economies of scale and know-how transfer through an integrated Nordic and Baltic platform
  • Investment Strategy with Balanced Risk – If has adopted a low risk strategy in investments by maintaining a balance between insurance commitments and investment assets in terms of currency and duration. Surplus capital is invested to enhance total returns.


Mandatum Life – an Expert in Money and Life

Mandatum Life is the leading provider of cover against life and health risks and a well respected manager of customer assets in Finland and the Baltic countries. In new business, Mandatum Life’s core product areas consist of unit-linked savings contracts and group pensions as well as risk insurance. As a result of the existing balance sheet, unit-linked individual pension policies and the with-profit portfolio in general play a significant role in the company, even though they are not being sold actively. In 2011, operations were expanded beyond the life insurance sector to cover the management of personnel fund services and corporate pension funds. Since, as a result of the changes made to the lowest possible retirement age, the company no longer grants new individual corporate pension policies, it will also look into other opportunities outside the life insurance sector to guarantee comprehensive services for its customers.

In Finland, Mandatum Life relies on three sales channels: in-house corporate sales teams, wealth management focusing on high-net-worth individuals, and Danske Bank’s network.

The company estimates that there is still a growing need for Finns to make preparations to secure their income during retirement. That is why the company believes that voluntary corporate pension schemes will play an increasingly important role in complementing the statutory earnings-related pension scheme in the future. As far as the corporate sales channel is concerned, even greater emphasis will be placed on meeting the investment-related needs of customers. In addition, companies are believed to gain significant value by covering their employees’ life and health risks through voluntary insurance policies.

Mandatum Life started its own wealth management and investment solutions activities in 2008, with a focus on high-net-worth individuals and institutions.

In the private segment, Mandatum Life’s main service channel is Danske Bank’s network. Co-operation with Danske Bank has been successful, and there is no apparent need to alter the strategy in this respect.

Mandatum Life’s result consists of three components – investment result, risk result and expense result. The company’s strategy in investment activities is to maintain adequate solvency in relation to market risks in the balance sheet, which makes it possible to strive for a long-term return that is higher than the return requirement on with-profit technical provisions. In expense and risk result Mandatum Life seeks growth both through higher operational efficiency and volume growth. The company’s financial target is to produce an RoE of at least 17.5 per cent.

Dividend Policy

Sampo plc, the listed parent company of Sampo Group, is a good dividend payer. Sampo aims to pay at least 50 per cent of Group’s net profit as dividend. Share buy-backs can be used to complement the dividend. The Board proposes to the AGM a dividend of EUR 1.35 per share for the year 2012. The proposed dividend corresponds to a pay-out ratio of 54 per cent.