Interim Statement Q3/2022

INTERIM STATEMENT FOR JANUARY-SEPTEMBER 2022

Contents
Summary..........................................................................................................................................................................................	3
Third quarter in brief ..................................................................................................................................................................	6
Group CEO's comment...............................................................................................................................................................	7
Outlook.............................................................................................................................................................................................	8
Outlook for 2022...........................................................................................................................................................................	8
The major risks and uncertainties for the Group in thenear-term..............................................................................	8
Business areas ...............................................................................................................................................................................	9
If ..........................................................................................................................................................................................................	9
Topdanmark....................................................................................................................................................................................	13
Hastings............................................................................................................................................................................................	14
Mandatum........................................................................................................................................................................................	15
Holding..............................................................................................................................................................................................	16
Other developments ...................................................................................................................................................................	17
Exit from Nordea...........................................................................................................................................................................	17
Group solvency..............................................................................................................................................................................	17
Financial leverage position........................................................................................................................................................	17
Ratings..............................................................................................................................................................................................	18
Shares and shareholders ............................................................................................................................................................	18
Effects of external events on Sampo Group .......................................................................................................................	19
Remuneration.................................................................................................................................................................................	19
Personnel .........................................................................................................................................................................................	20
Events after the end of the reporting period......................................................................................................................	20
Tables................................................................................................................................................................................................	22
Group financial review.................................................................................................................................................................	22
Calculation of key figures...........................................................................................................................................................	24
Group quarterly comprehensive income statement.........................................................................................................	26
Statement of profit and other comprehensive income ...................................................................................................	27
Consolidated balance sheet ......................................................................................................................................................	28
Statement of changes in equity...............................................................................................................................................	29
Statement of cash flows .............................................................................................................................................................	30
Notes .................................................................................................................................................................................................	31
Accounting policies......................................................................................................................................................................	31
Comprehensive income statement by segment for nine months ended 30 September 2022 .........................	33
Comprehensive income statement by segment for nine months ended 30 September 2021 ..........................	34
Consolidated balance sheet by segment at 30 September 2022 ...............................................................................	35
Consolidated balance sheet by segment at 30 September 2021 ................................................................................	36
Other notes.....................................................................................................................................................................................	37
1 Insurance premiums written...................................................................................................................................................	37
2 Net income from investments...............................................................................................................................................	38
3 Other operating income..........................................................................................................................................................	39
4 Financial assets ..........................................................................................................................................................................	39
5 Liabilities for insurance and investment contracts........................................................................................................	40
6 Financial liabilities .....................................................................................................................................................................	40
7Non-currentassets held for sale .........................................................................................................................................	41
8 Subsequent events after the balance sheet date ..........................................................................................................	42

INTERIM STATEMENT FOR JANUARY-SEPTEMBER 2022

2 November 2022

Sampo Group's results for

January-September 2022

Group P&C gross written premiums increased by 7 per cent year-on-year.
Strong Group combined ratio of 81.6 per cent (80.9).
Underwriting profit increased by 3 per cent to EUR 1,009 million (985). Excluding COVID-19 effects reported in the 2021 comparison period, underwriting profit grew 13 per cent.
Profit before taxes amounted to EUR 1,472 million (1,974) and earnings per share to EUR 2.19 (2.74). Excluding all Nordea-related items, profit before taxes was EUR 1,212 million (1,356).
Group Solvency II coverage including dividend accrual increased to 238 per cent from 185 per cent at the 2021 year-end and 233 per cent at the end of the second quarter.

Key figures

EURm	1-9/2022	1-9/2021	Change, %	7-9/2022	7-9/2021	Change, %

Profit before taxes	1,472	1,974	-25	407	632	-36
If	932	818	14	270	252	7
Topdanmark	92	256	-64	32	48	-33
Hastings	65	115	-43	40	31	30
Mandatum	189	201	-6	74	59	24
Holding	194	584	-67	-10	242	-
Profit for the period	1,218	1,662	-27	321	550	-42
Underwriting profit	1,009	985	3	330	327	1
			Change			Change
Earnings per share, EUR	2.19	2.74	-0.55	0.58	0.93	-0.35
EPS (without eo. items), EUR *)	2.00	2.31	-0.31	0.58	0.67	-0.09
EPS (including OCI), EUR **)	-0.97	3.67	-4.64	-0.28	1.01	-1.63
RoE (including OCI), %	-6.3	22.7	-29.0	-	-	-

*) Nordea-related accounting effects of EUR 103 million in January-September 2022 have been defined as extraordinary items in accordance with Sampo Group's dividend policy. The comparison figures included extraordinary items of EUR 237 million in January-September and EUR 144 million in the third quarter.

**) OCI refers to Other comprehensive income.

The figures in this report have not been audited.

Sampo Group financial targets for 2021-2023

	Target	1-9/2022

	Mid-single digit UW profit growth annually on	3% (13% excluding reported COVID-19 effects in
	average (excluding COVID-19 effects)	1-9/2021)
Group
Group combined ratio: below 86%	81.6%

	Solvency ratio: 170-190%	256% (238% including dividend accrual)

	Financial leverage: below 30%	25.9%

If	Combined ratio: below 85%	79.8%
Hastings	Operating ratio: below 88%	88.0%

Loss ratio: below 76%	77.6%

Financial targets for 2021-2023 announced at the Capital Markets Day on 24 February 2021

January-September 2022 effects related to the COVID-19 pandemic have been very limited; hence, these will not be reported separately.

INTERIM STATEMENT FOR JANUARY-SEPTEMBER 2022

SUMMARY

Financial highlights for January-September 2022

Sampo Group's core business, P&C insurance delivered strong results in January-September 2022. Underwriting profit exceeded EUR 1 billion, increasing by 3 per cent year-on-year or 13 per cent adjusted for COVID-19 effects reported in the 2021 comparison period. The Group combined ratio remained strong at 81.6 per cent (80.9), supported by good underlying development and continued benefits from higher discount rates. Excluding the reported COVID-19 effects in the comparison period, the combined ratio would have improved by 1.0 percentage point year-on-year. Gross written premiums increased by 7 per cent to EUR 6,493 million, driven by strong renewals, high retention and rate actions across key business lines. Sampo targets mid-single digit per cent underwriting profit growth on average and a combined ratio below 86 per cent for 2021-2023.

If P&C reported robust results for January-September 2022 as its underwriting profit increased by 11 per cent to EUR 756 million (680). The growth was driven by a 1.0 percentage point improvement in the combined ratio to 79.8 per cent (80.8) and a currency adjusted premium growth of 7.0 per cent. The premium growth was particularly strong in Industrial and Baltic, whereas continued weak Nordic new car sales weighed on growth in Private. If's adjusted risk ratio improved by 0.6 percentage points and the combined ratio outlook for 2022 was strengthened to 80-82 per cent. If's investment portfolio continued to be gradually reinvested at higher rates, increasing the fixed income running yield to 2.7 per cent at the end of September, from 2.1 per cent at the end of the second quarter and 1.5 per cent at year end 2021. Profit before taxes increased to EUR 932 million (818).

Topdanmark's profit before taxes decreased to EUR 92 million (256) in Sampo Group's profit and loss account as investment returns continued to be affected by the adverse market environment. The combined ratio was 83.4 per cent (82.9).

Hastings delivered solid performance in a challenging UK motor insurance market, in which market prices still lagged behind elevated claims inflation. Hastings remained disciplined and continued to apply rate increases, supporting currency adjusted GWP growth of 11 per cent in January-September 2022 and 20 per cent in the third quarter. Live customer policies increased 2 per cent year-on-year to nearly 3.2 million, driven by a 28 per cent growth in home insurance, while motor insurance policies remained stable. The operating ratio increased to 88.0 per cent (78.1). Hastings' profit before taxes excluding non-operational amortisation amounted to EUR 109 million (145) and reported profit before taxes was EUR 65 million (115).

The Mandatum segment's profit before taxes for January-September 2022 decreased to EUR 189 million (201), as the investment results continued to be affected by the adverse market environment. Mandatum's third- party assets under management decreased to EUR 10.1 billion from EUR 11.1 billion at the year-end 2021 and EUR 10.3 billion at the end of the second quarter, as the decline in market values outweighed positive net flows. Mandatum Life's Solvency II ratio increased to 282 per cent (190), driven by higher interest rates and continued decline in solvency capital requirement.

The Holding segment's profit before taxes amounted to EUR 194 million (584), including a dividend of EUR 157 million from Nordea and a gain of EUR 103 million from selling all the remaining Nordea shares during the first half of 2022.

Sampo's third buyback programme of EUR 1 billion, launched on 9 June 2022, continued at a good pace during the third quarter with the repurchase of 8.7 million Sampo A shares for a total consideration of EUR 379 million. Prior to the launch of the ongoing programme, Sampo had already completed its first two buyback programmes. In total, Sampo repurchased 24.4 million shares for a total of EUR 1.1 billion in January- September 2022.

Sampo Group's Solvency II ratio increased to 238 per cent from 185 per cent at the end of 2021 and 233 per cent at the end of June 2022, net of dividend accrual based on the 2021 insurance dividend of EUR 1.70 per share. The 5 percentage points increase from the end of the second quarter was mainly driven by strong underwriting profit and continued benefits from higher interest rates. Sampo targets a solvency ratio of 170-190 per cent.

INTERIM STATEMENT FOR JANUARY-SEPTEMBER 2022

SUMMARY

Sampo Group's financial leverage increased to 25.9 per cent from 23.8 per cent at the end of 2021, but decreased from 29.2 per cent at the end of June 2022. The 3.3 percentage point decrease in the quarter was driven by the EUR 501 million tender offer of Sampo plc senior bonds and the redemption of Hastings' GBP 250 million senior bond in September 2022. Sampo targets a financial leverage ratio below 30 per cent.

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Sampo Oyj published this content on 02 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2022 07:45:11 UTC.

Interim Statement Q3/2022

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