Sampo Group...• Personal Risk insurance • Group pension & Reward Services • The leading...

Sampo Group Debt Investor Presentation

Prepared February 10, 2017Figures December 31, 2016

DEBT INVESTOR CONTACTS

Markku Pehkonen, CROtel. +358 10 516 [email protected]

Peter Johansson, CFOtel. +358 10 516 [email protected]

Jarmo Salonen, Head of Investor Relations and Group Communicationstel. +358 10 516 [email protected]

FINANCIAL CALENDAR 2017

08/02/2017 Financial Statement Release for 2016Silent period 09/01/2017-08/02/2017

Week 12 Annual Report 201627/04/2017 AGM11/05/2017 Interim Statement Q1/2017

Silent period 11/04/2017-11/05/2017

09/08/2017 Half-year report 2017Silent period 10/07/2017-09/08/2017

02/11/2017 Interim Statement Q1-Q3/2017Silent period 03/10/2017-02/11/2017

Issuer Rating Moody's Standard and Poor's

Rating Outlook Rating Outlook

Sampo plc Baa1 Stable A- Stable

If P&C Insurance (Sweden) A1 Stable A+ Stable

If P&C Insurance Co. (Finland) A1 Stable A+ Stable

Disclaimer

This presentation may contain forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Sampo believes that the expectations reflected in such forward looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors.Important factors that may cause such a difference for Sampo include, but are not limited to: (i) the macroeconomic development,(ii) change in the competitive climate and (iii) developments in capital markets.This presentation does not imply that Sampo has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided.

2

10-Feb-17

Mission Value Creation in the Nordic Financials 3-10

If P&C The Leading Nordic P&C Insurer 11-18Mandatum Life A Finnish Financial Services Company 19-25Sampo Group A Diversified Business Portfolio with Strong Capitalization 26-36Sampo plc Parent Company with Capacity to Generate Funds 37-43Outlook Sampo Group Outlook 2017 44-45Appendix Separate Supplementary Information 46-57 3

10-Feb-17

• Listed company Sampo plc• Long-term investor

• Manager of capital structure and liquidity• Pay-out ratio ≥ 50%

Nordic Financial Group with Strong Brands

Sampo Group ― Value creation in the Nordic financials

MARKET

POSITION

STRATEGY

INVESTMENT

ASSETS

RETURN /

PROFIT

TARGET

21.2%

• The leading P&C insurerin the Nordic region

• Focus on customer value• Most professional &

innovative people• Stable profitability• Underwriting excellence• Operational efficiency

~ EUR 12.2bn

• RoE above 17.5%• CR% below 95%

>40% 100%

• The largest financialservices group inthe Northern Europe

• Simplification• Cost & capital efficiency• One operating model• Compliance• Digital Offering

~ B/S EUR 616bn~ AuM EUR 323bn

• ROE above the Nordicpeer average

• The second largest P&C insurer in Denmark

• Customer satisfaction• Pricing• Efficiency• Distribution power

• Share buy-back

~ EUR 2.6bn P&C

• Profit margin of 10%• CR% 91%

• Unit-linked products• Wealth management• Personal Risk insurance • Group pension &

Reward Services

• The leading provider ofcover against health andLife risks, well-respected manager of customer wealth

~ EUR 6.6bn

• RoE above 17.5%

100%

4

10-Feb-17

Sampo Group Steering Model and Principles

• Three separate and independent business areas, and Parent Company acting

merely as a Portfolio Manager

• General Principles of Business activities

– Straightforward and transparent legal structure combined with limited

intragroup exposures

– Clear responsibilities

– Simple and flat operational structures

• Parent company gives guidance to the subsidiaries by setting

– Targets for their capitalization and return on equity (RoE)

– Group-wide principles for Risk Management, Remuneration, Compliance,

Code of Conduct

• Subsidiaries organize underwriting activities independently taking into account

– The specific characteristics of their operations

– The above guidance from the parent company

– The stakeholders’ expectations and external regulations5


10-Feb-17

• If generated EUR 883m (960) in pre-tax profits

• Excellent combined ratio of 84.4% (85.4)

– Risk ratio 62.3% (66.6)

– Cost ratio 22.1% (18.8)

– Expense ratio 16.6% (13.0)

• Resilient business model over the cycle

If P&C Well-diversified and Profitable

Pan-Nordic Non-life Insurer

Well-established Insurance Subsidiaries

• Mandatum Life is a leading life and pension

insurer in Finland

• Mandatum has a strong market position in Finland

with ca.20% of the market

• Mandatum contributed with EUR 210m (181) in

pre-tax profit to the Group

Mandatum Life Respected Finnish Expert in

Wealth Management, Investments, Rewards and Risk Insurance

6

• If P&C provides insurance solutions and services in the Nordic and Baltic regionsas well as to Nordic customers with international operations.

• Business activities areoperated on a pan-Nordic basis.

• The business is divided into customer segments Private, Commercial and Industrial.The Baltic countries comprisea separate business area.

• Mandatum Life Provides a comprehensive range of services in Finland and Baltics for private and corporate customers.

• Services provided‒ Wealth management‒ Savings‒ Personal risk insurance‒ Pension and incentive &

reward services.


10-Feb-17

Nordea ‒ Diversified and Stable Nordic Bank

17 24 36 55

74

131

Nordea Peer 4Peer 3Peer 1 Peer 5Peer 2

Nordea and Peers 2006-Q3/2016Quarterly net profit volatility,%

7


Country Retail Customers

Corporates &

Institutions

Relationships,

million

Market

Position

Market

Position

Sweden 4.1 2-3 1-2

Norway 1 2 2

Finland 3.2 1-2 1

Denmark 1.8 2 1-2

Nordic Total 10.1 (10.5*) 1 1

Baltics** 406,700

Russia** 67,000

* including the Baltics and Russia

** including Retail, corporate & institutional customers

Nordea’s market position

10-Feb-17

Source: nordea.com

Topdanmark ‒ Insurer with a Robust Business Model

8


10-Feb-17

Value Creation in the Nordic Financialsas Group StrategyLONG-TERM VALUE CREATION

• Value creation through investments in Nordic financials based on knowledge of Nordic markets, Nordic financial institutions & Nordic people.

• Commitment to the long-term development of affiliated companies.

OPERATIONAL EXCELLENCE IN SUBSIDIARIES

• Subsidiaries have focus on continuous development of services.• Economies of scale.• Pan-Nordic diversification & operational excellence facilitate low volatility.

CONSERVATIVE PARENT WITH PROFIT FOCUS

• Conservative capital structure, low leverage and strong liquidity.• Parent company steers subsidiaries through Boards by approving (in Nordea

and Topdanmark by contributing to) strategies, guiding principles and ROE targets.

GROUP LEVEL PORTFOLIO BENEFITS

• Profitable companies, mostly with the lowest volatility in the peer group.• Profits of affiliated companies have low correlation creating diversification

benefits at the Group level.

LONG-TERM VALUE

FOR SHAREHOLDERS & BONDHOLDERS

CENTRALIZEDINVESTMENT MANAGEMENT

• Company specific liabilities and solvency driving risk profiles, supported bya Group-wide investment philosophy. Common investment infrastructure facilitates effective monitoring and fast actions, also at the Group level.

9


10-Feb-17

45.5

30.3

26.5

26.5

25.1

24.1

22.5

17.0

7.9

5.1

5.0

4.5

2.5

2.3

1.2

0.7

0.5

0 10 20 30 40 50

Nordea

Danske

SHB

Swedbank

DNB

Sampo

SEB

Investor

Gjensidige

Industrivärden

Tryg

Jyske

Storebrand

Topdanmark

Alm.Brand

Protector

Aktia

Efficient and Stable Operations as Basis for Value

Source: Thomson Reuters

>40%

Sampo ownership structure

*100% owned by the Republic of Finland; 30.12.2016

Market cap January 30, 2017, EURbn

Strong relative performance

10Y Total Shareholder Return

A Mixed Financial Conglomerate

Bank

Insurance

Investment company

Foreign and Nominee registered 60.95%

Solidium 11.90%*

Varma Mutual Pension Ins.Co. 6.35%

Björn Wahlroos 2.10%

The State Pension Fund 0.68

Ilmarinen Mutual Pension Ins.Co. 0.67%

Other domestic owners 17.35%10

>21%


10-Feb-17


If P&C The Leading Nordic P&C Insurer 11-18

Mandatum Life A Finnish Financial Services Company 19-25Sampo Group A Diversified Business Portfolio with Strong Capitalization 26-36Sampo plc Parent Company with Capacity to Generate Funds 37-43 Outlook Sampo Group Outlook 2017 44-45Appendix Separate Supplementary Information 46-57 11

10-Feb-17

Expense Ratios 2015, %

Leading Nordic P&C Insurer with Synergies

Norway 2015

Gjensidige 25%

If 22%

Tryg 14%

Sparebank 1 10%

Denmark 2015

Tryg 18%

Topdanmark 17%

Codan (RSA) 11%

Alm. Brand 10%

If 6%

Finland 2015

Pohjola 32%

LähiTapiola 25%

If 24%

Fennia 10%Sweden 2015

LF 30%

If 18%

RSA (T-H) 14%

Folksam 16%

Baltics 2015

PZU 24%

If 14%

BTA 12%

Ergo 12%

Gjensidige 7%

Market Shares by Country

If17%

Topdanmark5%

Tryg9%

Gjensidige8%

RSA9%

LF10%

Folksam5%

Pohjola6%

LähiTapiola4%

Other27%

16.6

16.5

27.3

31.7

26.1

28.4

20.2

30.1

If P&C 2016

Nordic peer group

Generali

Zürich

AXA

Allianz

RSA Scandinavia

Aviva

If P&C

Nordic Market Shares

12

Total GWP ~EUR 25bn

10-Feb-17

Nordic P&C Insurance Market

CONSOLIDATED MARKET

LOW EXPENSE RATIOS

• In addition to the traditional channels, Internet continues to grow in importance both as a distribution and as a service channel.

• Also, distribution via partnerships with banks and car-dealers etc.is increasingly important.

GOOD PROFITABILITY

• The Nordic P&C market has generally experienced good profitability. The low interest rate environment and hence the low return on investments has made the industry to focus on profitability in the insurance operations.

• Renewal rates are around 80-90%.LOYAL CLIENTS

DISTRIBUTION

• The market is characterized by low expense ratios in the range of 15-20%. European competitors' expense ratios are usually considerably higher.

• The four largest companies account for 75-90% of the markets in Norway, Finland and Sweden. In Denmark the market is less consolidated.

If P&C

13

10-Feb-17

By Business Area By Country

Private, 431, 65%

Commercial, 155, 24%

Industrial, 43, 7%

Baltic, 13, 2%

Other, 16, 2%

Technical Results, EUR 658m

Norway, 216 , 33%

Sweden, 247 , 38%

Finland , 147 , 22%

Denmark, 18 , 3%

Baltic, 13, 2%

Other, 16 , 2%

Gross Written Premiums, EUR 4,458m

By Business Area By Country

Private, 2633, 59%

Commercial, 1166, 26%

Industrial, 528, 12%

Baltic, 131, 3%

Norway, 1,334 , 30%

Sweden, 1,599 , 36%

Finland , 987 , 22%

Denmark, 407 , 9%

Baltic, 131, 3%

If P&C

Diversified Client Base

14

10-Feb-17

If- Total If Sweden If NorwayIf Finland If Denmark

Geographical Diversification in CR

Combined Ratio ‒ If P&C and Nordic Peers

Combined Ratio Development

Standard deviation 2008-2015

2.7%

4.4%

4.7%

3.7%

3.5%

66.2

65.9

66.9

68.1

68.0

69.1

68.4

65.9

65.4

65.1

66.6

62.3

24.3

24.0

23.7

23.7

24.1

23.7

23.5

23.0

22.8

22.5

18.8

22.1

90

.5

89

.9

90

.6

91

.8

92

.1

92

.8

92

.0

88

.9

88

.1

87

.7

85

.4

84

.4

0

20

40

60

80

100

%

Risk ratio Cost ratio Target CR

If P&C

92.1 92.8 92

88.9 88.1 87.785.4

93

96.1 95.2

90.7 90.688.3 88.2

80

85

90

95

100

2009 2010 2011 2012 2013 2014 2015If P&C Nordic Market (incl.If)

Disciplined Underwriting and Diversification work

15

%

10-Feb-17

Conservative Investment Portfolio

• Duration 1.4 years• Average Maturity 2.8 years• Fixed Income Running Yield 1.7%

Mark-to-Market Investment Return, %Investment Allocation

4.3%5.8%

4.4%2.6%

-3.1%

12.4%

7.4%

1.8%

6.1%5.0%

4.1%1.5%

2.9%

-4%

-2%

1%

4%

6%

9%

11%

14%

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

Mark-to-Market Investment Return, EURm

821

113

689558

459

190334

0

200

400

600

800

1,000

2010 2011 2012 2013 2014 2015 2016

16

Total EUR 12.2bn

If P&C

Money market 8%

Public sector 10%

Other fixed

income69%

Equities13%

Private equity 0.2 %

Real Estate0.2 %

Other-0.03%

10-Feb-17

Strong & Stable Annual Profit Development

800730

534 549

644707

636

864929 931 960

883

-267

1,127

943

308

978

689

526

624

714

-400

-200

0

200

400

600

800

1,000

1,200

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Profit before tax

Comprehensive income

EURm

If P&C

17

10-Feb-17

0

50

100

150

200

250

300

350Technical result Investment result Operating result

Seasonality in Quarterly Results and CR%

Q4 Q3 Q2 Q1Average Quarterly CR%, 2006-2016 89.5 88.3 87.9 92.2Year 2015 CR% 87.7 83.8 80.9 89.2

Year 2016 CR% 85.6 84.6 84.5 83.0*

If P&C

EURm

18

* incl. positive one-off10-Feb-17


If P&C The Leading Nordic P&C Insurer 11-18Mandatum Life A Finnish Financial Services Company 19-25

Sampo Group A Diversified Business Portfolio with Strong Capitalization 26-36Sampo plc Parent Company with Capacity to Generate Funds 37-43 Outlook Sampo Group Outlook 2017 44-45Appendix Separate Supplementary Information 46-57 19

10-Feb-17

Finnish Life Insurer with Wealth Management Focus

Client

Segment

Underlying

Market

Critical Success Factors Sales &

Client

Services

CorporateCustomers

EmployeeBenefit

• Expertise in Rewards and Incentives, Pension & Risk Life Solutions and Asset Management

Mandatum Life

HNWI WealthManagement

• Professional Wealth Management• Management of Client Relationships

Mandatum Life

PrivateCustomers

Savings and Insurance Products

• Efficient Distribution Mandatum LifeDanske Bank*(Sales agreement to beterminated)

Mandatum Life

Cro

ss-s

elli

ng

20

*Mandatum life has ended distribution agreement and decided to exercise its option to sell the insurance portfolio to Danske Bank. The portfolio has been distributed through Danske Bank's branch network in Finland. The portfolio is expected to be transferred to Danske Bank at earliest 31.12.2017.The portfolio consists of more than 150,000 policies and the technical reserves related to the portfolio amounted to EUR 3,202 million at the end of 2016. The portfolio contains almost exclusively unit-linked and loan insurance products. The amount of with-profit technical reserves is EUR 210 million. The portfolio is treated as Assets held for sale in the balance sheet for 2016.

10-Feb-17

Premiums Written, total EUR 1,119m Insurance Savings, total EUR 10,385m

343

131472

2767

76

2

Unit-linked life Unit-linked pension Unit-linked capital redemptionUnit-linked Baltic Other life Other pensionOther capital redemption Other Baltic

2,346

1,956

1,977161

179

3,721

28 17

Mandatum Life Business Volumes

U-LEUR 6,439m

With-ProfitEUR 3,945

U-L EUR 974m

With-ProfitEUR 145m

4,652 4,626 4,738 4,695 4,621 4,487 4,431 4,410 4,249 4,071 3,927 5,065 5,014 4,821

607 884 1,262 1,752 2,071 1,637 2,359 3,124 3,054 3,833 4,6165,312 5,858 6,440

0

2,000

4,000

6,000

8,000

10,000

12,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Guaranteed interest rates Unit-linked

Technical Provisions, EUR 11,261m

EU

Rm

Mandatum Life

21

10-Feb-17

Finnish With-Profit Life Insurance Market

PRINCIPLE OF FAIRNESS

• There is no exact rule on profit sharing (e.g. 90%/10%). • In the current markets, the principle in ML is reflected in policyholdersʼ

reasonable expectations for total accrual, which is an average annual yield of Finnish government bonds over time.

SMOOTHENED BONUSES AND DIVIDENDS OVER TIME

• When company decides on bonuses and dividends, it takes into account (i) policyholders' reasonable expectations, (ii) realized investment returns and current solvency and (iii) uncertainty aboutthe future market environment => Bonuses and dividends can be smoothened over time.

BETTER POSITION FOR RISK TAKING BENEFITS STAKEHOLDERS

• Finnish Profit sharing mechanism facilitates and encourages for active investment strategies and risk taking.

• Profit sharing mechanism has benefited both policyholders and shareholders over the years.

Mandatum Life

22

10-Feb-17

Investment Portfolio covering With-Profit liabilities

Mark-to-Market Investment Return, %Investment Allocation

8.3%

12.0%9.7%

5.0%

-7.8%

16.8%

11.1%

-1.4%

9.4%

7.1%

4.6%

6.9%6.70%

-10%

-5%

0%

5%

10%

15%

20%

Mandatum Life

615

-59

504391

251

427 440

-1000

100200300400500600700

2010 2011 2012 2013 2014 2015 2016

23

• Duration 2.0 years• Average Maturity 2.7 years• Fixed Income Running Yield 2.6%

Mark-to-Market Investment Return, EURm

10-Feb-17

Asset Allocation 31.12.2016, 6 582 EURm

Money Market

Securities and Cash

13 %

Government Bonds1 %

Credit Bonds,

Funds and Loans46%

Policy Loans0 %

Listed Equity26%

Real Estate4 %

Private Equity4 %

Unlisted Equity

0%

Biometric0 %

Commodities0 %

Other Alternative

5 %

Trading Derivatives

0 %

Profit Development

295342

140 121142 137 136 153 163 181

210

286

80

-378

495

332

-115

286

220

149 168

232

-500

-250

0

250

500

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EURm

Profit before taxes

Comprehensive income

Mandatum Life

24

10-Feb-17

Mandatum Life Profit by Components

Total expense ratio, % 98.7 98.4

Incl. kick backs, % 80.5 80.3

EURm 2016 2015

Net investment income 634.4 632.0

- Transferred to expense result -24.6 -25.0

- Return on Unit-linked policies -276.0 -238.8

- Return on With-profit policies* -176.1 -260.9

INVESTMENT RESULT 157.6 107.3

EXPENSE RESULT** 24.1 25.0

RISK RESULT 31.3 33.0

OTHERS -3.5 15.4

PROFIT BEFORE TAXES 209.6 180.7

Change in the market value of investments 82.2 32.5

PROFIT AT MARKET VALUES 291.8 213.2

Mandatum Life Group, expense ratio

Mandatum Life

* Includes guaranteed interest, bonuses and change in the reserves of the above items** Result of Unit-linked business EUR 20.5 million

25

10-Feb-17


If P&C The Leading Nordic P&C Insurer 11-18Mandatum Life A Finnish Financial Services Company 19-25Sampo Group A Diversified Business Portfolio with Strong Capitalization 26-36

Sampo plc Parent Company with Capacity to Generate Funds 37-43Outlook Sampo Group Outlook 2017 44-45Appendix Separate Supplementary Information 46-57 26

10-Feb-17

• Geographical diversification

• Strong Retail P&C Franchise

• Several Lines of Businesses

- Motor, Cargo

- Workersʼ compensation

- Liability

- Accident

- Property

• Low C/R volatility and Conservative Investments

Diversified Companies & Diversified Portfolio*

• Geographical diversification

• Strong Retail Banking Franchise

• Diversified earnings base:

- Banking (Retail, Wholesale)

- Wealth Management (AssetManagement, Private Banking, Life & Pensions)

• Low earnings volatility & stableROE over the cycle

• Finland & Baltics

• Strong Finnish Position

• Product areas

- Wealth Management

- Unit-linked Business

- With-profit Business

- Remuneration services

- Risk insurance

• Dependency on Capital Markets

* Correlations of quarterly Reported Profits Q1/2005–Q4/2016

PBT 2010-16

IF 45%ML 10%Nordea 45%

P/L CONTRIBUTIONS

27

LOW VOLATILITY EARNINGS LOW VOLATILITY C/R FOCUS ON U-L & WM

0.29

0.14

1

0.85 1

1

Sampo Group

10-Feb-17

948

1,295 1,353

870 825

1,3201,228

1,6161,668

1,7591,888 1,871

-200

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

P&C Life Banking Other

Steady Development of Profit before Taxes

* One-off item – sale of Sampo Bank

EURm

*

• If P&C

• Mandatum Life

• Sampo Bank

• If P&C

• Mandatum

Life

• Nordea /

Investment

• If P&C

• Topdanmark / Associated

• Mandatum Life

• Nordea / Associated

Sampo Group

3,833

28

10-Feb-17

Different Risk Profiles of Investments

Sampo Group

29

10-Feb-17

Total Group (MEUR)19,615 18,844 19,652 20,708

03/16 06/16 09/16 12/16

Money Market 6% 5% 72% 7% 9% 48% 11% 10% 43% 8% 13% 75%

Long-Term Fixed Income 80% 54% 17% 81% 51% 41% 76% 49% 45% 79% 47% 20%

Equity 13% 26% 10% 12% 26% 8% 12% 27% 9% 13% 26% 5%

Private Equity 0% 4% 0% 0% 4% 0% 0% 4% 0% 0% 4% 0%

Other 0% 11% 1% 0% 10% 2% 0% 10% 2% 0% 10% 1%

11,092

6,450

2,073

11,517

6,448

879

12,305

6,569

778

12,192

6,582

1,933

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000If

P&

C

Man

datu

mLife

Sam

po

Plc If

P&

C

Man

datu

mLife

Sam

po

Plc If

P&

C

Man

datu

mLife

Sam

po

Plc If

P&

C

Man

datu

mLife

Sam

po

Plc

Investments & Counterparty Exposures*

* In Exposure tables the calculation rules may differ slightly from Allocation tables in some areas.

Sampo Group

30

10-Feb-17

31.12.2016AAA

AA+ -

AA-

A+ -

A-

BBB+ -

BBB-

BB+ -

CD

Non

Rated

Fixed Income

TotalEquities Other

Derivatives

(Counter-

party Risk)Total

Change

from

30.9.2016

Basic Industry - - 20 40 107 - 72 239 191 - - 429 - 20

Capital Goods - 32 103 55 5 - 90 285 685 - - 970 - 20

Consumer Products - 176 311 271 78 - 74 909 643 - - 1,553 + 18

Energy - 78 115 - 55 - 239 487 15 0 - 502 + 78

Financial Institutions - 3,128 2,561 959 106 - 38 6,793 98 1 24 6,917 + 823

Governments 141 - - - - - - 118 - - - 118 + 0

Government Guaranteed 78 78 - - - - - 179 - - - 179 + 23

Health Care 7 15 66 34 45 - 59 225 107 - - 332 - 18

Insurance - - 42 110 4 - 100 256 3 37 - 295 + 15

Media - - 11 - 12 - 54 77 - - - 77 - 12

Packaging - - - - 61 - 12 73 1 - - 74 - 1

Public Sector, other 781 198 44 - - - - 1,022 - - - 1,022 - 19

Real Estate - 6 58 58 - - 541 663 - 253 - 916 + 127

Services - - 0 93 168 - 79 340 109 0 - 449 + 73

Technology and Electronics 4 44 36 30 7 - 58 178 158 - - 336 + 14

Telecommunications - - 87 43 40 0 58 228 90 0 - 318 + 15

Transportation - 107 51 57 23 - 169 407 35 - - 442 + 45

Utilities - 2 1 467 75 - 62 607 - - - 607 + 30

Others - 15 - - 19 - 2 36 0 59 - 96 + 4

Asset-backed Securities - - - - - - - - - - - - + 0

Covered Bonds 3,027 107 - 11 - - - 3,145 - - - 3,145 - 16

Funds - - - - - - 108 108 1,217 622 - 1,946 - 97

Clearing House - - - - - - - - - - 5 5 + 5

Total 4,038 3,986 3,505 2,228 805 0 1,813 16,375 3,351 973 29 20,727 + 1,068

Change from 30.9.2016 - 12 + 678 + 253 + 22 + 64 + 0 + 84 + 1,088 - 37 - 9 + 26 + 1,068 EURm

Principles of Capital Management

1. Sub-Groups are adequately capitalized to ensure normal business

operations

2. At Group level the following issues are managed/monitored

– Direct risk concentrations

– Correlations of the sub-groupsʼ profits

– Sub-groups do not cross-capitalize each others, parent is the source of capital

– The funds generating capacity of the parent company is maintained by having low leverage and adequate liquidity buffers in normal situations

1 +2 => Sampo Group is well-capitalized

31

Sampo Group

10-Feb-17

EURm

819

1,4

94

250

949

179 211

1,5

81

3,8

55

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1,4

33

1,0

29

91

477

179 3121,9

42

3,8

22

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Internally assessed Solvency ratio 244%Standard Formula Solvency Ratio 197%

LAC = Loss Absorbing Capacity, DT = Deferred Taxes, SCR= Solvency Capital Requirement

EURm

32

S&P TTC for A rating 2,967 S&P TTC for A rating 2,967

If P&C Solvency Capital Requirement, December 31, 2016

Sampo Group

10-Feb-17

1,324

59

392285

38 51

295

1,182

295

1,893

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Mandatum Life – Solvency II Capital Requirement (SCR)With Transitional Measures, December 31, 2016

LAC = Loss Absorbing Capacity, TP = Technical Provision, DT = Deferred Taxes

*

* Own Funds without transitional measures EUR 1,441m

EURm SF with Transitional Measures Solvency ratio 160%

33

Sampo Group

10-Feb-17

Mandatum Life Technical Provisions Forecast

34

EURm

Sampo Group

10-Feb-17

0

1,000

2,000

3,000

4,000

5,000

6,000

WP-liabilities (4.5% guarantee) WP-liabilities (3.5% guarantee)

Segregated Group Pension Other WP-liabilities

• Liabilities with highest guarantees (3.5 and 4.5%) decreasingand expected to be EUR 2.0 bn in 2022 (Equity transitional) and EUR 1.0 bn in 2031 (Liability transitional)

�SCR trend expected to be decreasing and Own Funds trendwithout transitional measures on technical provision expectedto be increasing � positive Solvency II trend expected.

Calculation of Sampo Group Solvency

Group Solvency Capital:

– Under FICOD rules, capital is Group equity with some additional items added or deducted (subordinated loans, deferred tax assets, planned dividends…)

– Under SII rules capital – referred to as Own funds (OF) – consists mainly of excess of assets

over liabilities

– Under normal circumstances Group OF by Solvency II and FICOD rules are close to each other

SCR by Financial Conglomerate Rules:

– The Group’s SCR is the sum of the separate sub-groups’ requirements (sectoral rules)

– Banking rules are applied for the parent company

– No diversification effect between the companies

SCR by Solvency II rules:

– One capital requirement is calculated for the insurance group including the parent company Sampo plc, If P&C and Mandatum Life. This includes diversification effects and also capital requirement for the translation risk related to SEK denominated equity of If P&C

– Nordea’s and Topdanmark’s capital requirements are added to the requirement

– The SII SCR takes into account diversification only within the insurance group

=> Sampo Group Solvency Ratios are not comparable with most Insurance Groupsʼ solvency ratios35

Sampo Group

10-Feb-17

1,942

1,182247

3,668

50

7,088

10,937

0

2,000

4,000

6,000

8,000

10,000

12,000

If P&C (SF*) MandatumLife (SCR**)

Topdanmark Sampo plc'sshare ofNordea

Sampo plc Total capitalrequirement

GroupSolvencyCapital

Group Solvency Capital by Financial Conglomerates Rules December 31, 2016

EURmGroup solvency ratio 154% / SII Standard Formula applied for Insurance Subsidiaries

36

*) Standard formula, **) SCR with transition rules

Sampo Group

10-Feb-17


If P&C The Leading Nordic P&C Insurer 11-18Mandatum Life A Finnish Financial Services Company 19-25Sampo Group A Diversified Business Portfolio with Strong Capitalization 26-36Sampo plc Parent Company with Capacity to Generate Funds 37-43

Outlook Sampo Group Outlook 2017 44-45 Appendix Separate Supplementary Information 46-57 37

10-Feb-17

Simple Cash Flows, low leverage and adequate liquidity

Dividends • If P&C• Mandatum Life• Nordea

• Internal Administration Costs

• Discretionary Dividends for Shareholders• Interest Expenses for Bondholders

Income• Interest on Liquidity • Income from other

investments

Sampo plc

Assets 11,196 Liabilities 11,196

Liquidity 1,439 CPs Issued 671

Investment assets 179 LT Senior Debt 2,877

- Real Estate 2 - Private Placements 132

- Fixed Income 28 - Bonds Issued 2,745

- Equity & Private Equity

148 - Pension Insurance Loans

Subordinated Loans 637 Subordinated Debt 0

Equity Holdings 8,900 Capital 7,549

- Subsidiaries 2,370 - Undistributable 98

- Associated 6,530 - Distributable 7,451

Other Assets 41 Other Liabilities 99

Flow of Funds Balance Sheet, EURm

Key Credit Metrics well in Single A range

Sampo plc 31.12.2016Gross Debt, EURm 3,548Gross Debt to Equity 47%Financial Leverage 32% (= Debt/(Debt+Equity)

Sampo Group, EURm Q4/2016 Q4/2015

Shareholders' Equity 11,934 11,411

Hybrid Bonds 218 10 Senior Debt 3,548 2,302Financial leverage 29.2% 20.2%

38

Sampo plc

10-Feb-17

Liquid Investments as Buffer

39

Sampo plc

Instrument & Principal Running Yield Call/ Maturity

Mandatum Capital Loan 100m€ 4.57% Every year

IF PerpNC5.5 90m€ 4.71% 26.11.2018

IF 30NC10 99m€ 6.07% 08.12.2021

Nordea AT1 PerpNC5 171m$ 5.95% 23.9.2019

Nordea AT1 PerpNC5 98m$ 6.48% 13.9.2021

Topdanmark Tier1 33m€ 5.96% 15.9.2017

Topdanmark 10NC5 135mDKK 2.92% 11.12.2020

Topdanmark 10NC5.5 270mDKK 2.50% 11.6.2021

Hybrids (MV) 637m€ ≈ 5.30%

Cash / Other FI 1,467m€

Other Investments 151m€

TOTAL * 2,255m€

• In case subordinated loans are sold, both liquidity and Own Funds are generated• This buffer of liquidity and Own Funds comes with positive interest margin

* Before dividend payments

10-Feb-17

Sampo Group ―Conservative Leverage

-4,000

-2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Q1/0

5

Q1/0

6

Q1/0

7

Q1/0

8

Q1/0

9

Q1/1

0

Q1/1

1

Q1/1

2

Q1/1

3

Q1/1

4

Q1/1

5

Q1/1

6

Q1/1

7

Sampo plc Net debt

Group NAV

Group Equity

EURm

0%

5%

10%

15%

20%

25%

30%

35%

40%

Q1/0

5

Q1/0

6

Q1/0

7

Q1/0

8

Q1/0

9

Q1/1

0

Q1/1

1

Q1/1

2

Q1/1

3

Q1/1

4

Q1/1

5

Q1/1

6

Q1/1

7

Net debt/NAV

40

• ”Loan-To-Values” based on above figures is low• Parent Companyʼs Financial Leverage is 32%

=> Sampoʼs position to refinance its debt is strong

Sampo plc

10-Feb-17

Dividends Received by Payment Year

EURm

249

1,031

519

181

488 540406

544 490597 587 586

293

100

300

200

200

100100

100 100

125

125

141

75

35

13080

204 250 224293

370533

551

559

490

1,406

754

511568

744756 768

883

1,067

1,220

1,555

684

0

200

400

600

800

1,000

1,200

1,400

1,600

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017**

If P&C

If P&C Extra Dividend

Mandatum Life

Nordea

Sampo plc

Sampo Bank 2005-2006, Nordea 2007->

41

10-Feb-17

*

*) If P&C made a sales gain in connection to the mandatory offer on Topdanmark shares and paid an extra SEK 2.8 billion (EUR 293 million) dividend to Sampo plc on 22 September 2016. In December 2016 If P&C paid a normal dividend of SEK 5.8 billion to Sampo plc.

**) On 26 January 2017 Nordea Bank AB’s Board of Directors proposed to the Annual General meeting to be held on 16 March 2017, a dividend of EUR 0.65 per share. With its current holding Sampo plc’s share amounts to EUR 559 million. The dividend is proposed to be paid on 27 March 2017. A dividend of EUR 125 million is planned to be paid by Mandatum Life during the first quarter of 2017. If P&C normally pays its dividend towards the end of the calendar year.

Reported Profits facilitates Debt Servicing

* Parent Company is not equal to Holding Segment; Dividend Income includes also dividends from Private Equity investments

747

-8 -37

702762

-10-70

683773

-17 -20

737

879

-20 -26

832

1,069

-18 -1

1,050

1,226

-14

17

1,229

1,567

-17

17

1,567

-100

100

300

500

700

900

1,100

1,300

1,500

1,700

Dividend income Operatingexpenses

Net financialexpenses

Profit before taxes

2010 2011 2012 2013

2014 2015 2016*

EURm

Sampo plc

42

10-Feb-17

Issued Debt Instruments

Sampo plc

EU

Rm

Instrument & Principal Coupon SwapEffective

RateMaturity

Senior Bond 500 EURm (EMTN) 4.2500% --- 4.2500% 27.02.2017

Senior Bond 2,000 SEKm (EMTN) Stibor3M + 1.45% Euribor3M+1.375% 0.9990% 29.05.2018


Senior Bond 2,000 SEKm (EMTN) Stibor3M + 0.77% Euribor3M+0.586125% 0.2721% 28.05.2020

Senior Bond 1,000 SEKm (EMTN) 1.2500% EUR 1.007% 1.0070% 28.05.2020



CPs issued 671 EURm Euribor + Margin 0.2500% Average 3M

Public debt 3,416 EURm 1.3756%

Private placements 132 EURm 1.3731%

Total 3,548 EURm 1.3755%

43

10-Feb-17

0

500

1,000

1,500

2017 2018 2019 2020 2021 2022 2023

CP´s Senior under EMTN Senior Retail Private


If P&C The Leading Nordic P&C Insurer 11-18Mandatum Life A Finnish Financial Services Company 19-25Sampo Group A Diversified Business Portfolio with Strong Capitalization 26-36Sampo plc Parent Company with Capacity to Generate Funds 37-43Outlook Sampo Group Outlook 2017 44-45

Appendix Separate Supplementary Information 46-57 44

10-Feb-17

Sampo Group’s Outlook for 2017

Sampo Group Outlook 2017

45

10-Feb-17

Sampo Group’s business areas are expected to report good operating results for 2017.

However, the mark-to-market results are, particularly in life insurance,

highly dependent on capital market developments. The continuing low interest rate level also creates a challenging environment for reinvestment

in fixed income instruments.

The P&C insurance operations are expected to reach their long-term combined ratio target of below 95 per cent in 2017 by a margin.

Nordea’s contribution to the Group’s profit is expected to be significant.

46

Appendix Separate Supplementary Information 46-57

10-Feb-17

Fixed Income Investments in the Financial Sector

Exposure tables vs. Allocation tables – small differences.

EURmCovered

bondsMoney market

Long-term senior debt

Long-term subordinated

debt Total %

Sweden 1,998 352 798 458 3,606 36%

Finland 132 2,207 251 6 2,596 26%

Norway 651 396 224 1,272 13%

Denmark 207 7 312 71 597 6%

the United States 5 356 361 4%

United Kingdom 12 282 24 2 321 3%

France 22 194 62 14 292 3%

Canada 72 142 214 2%

the Netherlands 0 201 201 2%

Switzerland 178 11 189 2%

Iceland 91 91 1%

Others 49 34 115 0 199 2%

Total 3,145 3,083 2,924 786 9,938 100%

47

10-Feb-17

Appendix - Separate Supplementary Information

Public Sector Fixed Income Investments

EURm Government

Government

guaranteed

Public sector,

other Total

Sweden 100 679 779

Norway 250 250

Finland 78 75 153

Germany 67 67

United States 41 41

Japan 19 19

Denmark 11 11

Total 141 156 1,022 1,319Exposure tables vs. Allocation tables – small differences

48

10-Feb-17


If P&C Quarterly Results and C/R

EURmQ4/16

Q3/16

Q2/16

Q1/16

Q4/15

Q3/15

Q2/15

Q1/15

Q4/14

Q3/14

Q2/14

Q1/14

Premiums earned 1,074 1,080 1,073 1,059 1,077 1,087 1,103 1,076 1,108 1,124 1,122 1,104

Claims incurred -740 -738 -727 -700 -764 -735 -864 -780 -776 -793 -783 -811

Operating expenses -180 -175 -180 -179 -180 -176 -29 -180 -189 -183 -187 -186

Other technical income and expenses

-4 -1 -1 -1 0 0 0 -1 -1 0 1 1

Allocated investment return transferred from the non-technical account

-7 -3 3 5 2 5 7 9 5 7 10 15

Technical result 144 162 168 184 135 180 217 124 147 155 162 124

Investment result 56 44 48 40 75 68 99 84 81 75 139 88

Allocated investment return transferred tothe technical account

1 -3 -10 -13 -11 -14 -17 -18 -16 -18 -21 -27

Other income and expenses

23 21 14 4 5 11 11 10 8 16 9 9

Operating result 223 224 220 216 204 245 310 200 219 228 289 194

Risk ratio, % 63.2 62.8 62.4 60.7 65.2 61.9 72.7 66.6 64.4 64.7 64.0 67.5

Combined ratio, % 85.6 84.6 84.5 83.0 87.7 83.8 80.9 89.2 87.1 86.9 86.5 90.349

10-Feb-17


If P&C Reinsurance ProgrammesIf is using reinsurance to:- Utilize its own capital base efficiently and reduce cost of capital- Limit large fluctuations of underwriting results- Get access to reinsurers’ competence base

If has the following Reinsurance Programmes in place

• Largest & most diversifiedportfolio in the Nordics

• Focus purely on underwriting• Specialised Reinsurance Unit

• Reinsurance partners having reinsurance as core business

• Diversified financially strong panel of reinsurers

• Stable reinsurance program • Efficient pricing and

broad terms

In Million

Catastrophe/

Event

Property/

Risk Casualty

Personal

Accident Motor TPL Cargo Reporter

Capacity SEK 6,300 SEK 2,500/4,750 SEK 500/€50/$50 SEK 1,100 Unlimited SEK 850

Retention SEK 250 SEK 250 SEK 100/€10/$15 SEK 100 SEK 100 SEK 100

50

In Million

Marine Hull

Reporter

Small Vessels

Clash Cover

Marine Hull I.V. Reporter

Marine Hull WarRisk Reporter

US TerrorismRisk

Capacity SEK 400 SEK 250 SEK 310 USD 60 USD 250

Retention SEK 100 SEK 100 SEK 100 USD 0.25 USD 25

Casualty/Cyber Event

SEK 400/€40/$50

SEK 200/€20/$25

Additional reinsurance purchased for risks with property value accumulations according to Solvency II requirements.

10-Feb-17


NordeaProfitable & Diversified Nordic Bank

88

5

88

3

84

7

78

1

83

3

81

8

83

2

59

2

87

8

73

0 96

0

1,0

71

1,0

03

94

9

56

6

1,0

29

1,0

37

1,0

99

92

2

1,0

59

1,0

41

1,0

48

1,0

21

1,0

06

1,1

06

93

5 1,1

26

1,1

57

1,4

08

1,2

35

1,0

33

1,0

27

1,0

06

1,2

23

1,1

48

1,2

48

21 36

89 320 356

425

358

347

261

245

207 1

66

242

118

112

263

218 217

254

244

198

186

171

180 158

135

112

129

122

103

112

142

111

127

135 1

29

-200

0

200

400

600

800

1,000

1,200

1,400

1,600

1Q

08

2Q

08

3Q

08

4Q

08

1Q

09

2Q

09

3Q

09

4Q

09

1Q

10

2Q

10

3Q

10

4Q

10

1Q

11

2Q

11

3Q

11

4Q

11

1Q

12

2Q

12

3Q

12

4Q

12

Q1

13

Q2

13

Q3

13

Q4

13

Q1

14

Q2

14

Q3

14

Q4

14

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

EURmRestructuring/impairment charges/gains Loan losses Operating profit

51

10-Feb-17


Nordea BV on Consolidated Balance Sheet

Nordea in Sampo Group’s B/S EURm

Acquisition price 5,557.3

Retained earnings 1,804.2

Accumulated other changes in Nordea’s equity -56.0

Share of Nordea’s net profit 800.3

Amortisation -35.4

Deferred tax 7.8

Dividends -550.7

Share of Nordea’s other comprehensive income -35.1

Share of Nordea’s other changes in equity 8.2

Share of Nordea’s goodwill change -16.4

Total 7,554.3

Figures Per ShareEUR

Acquisition price 6.46Book value 8.78Market Value* 10.60

No. of shares860,440,497

* As of 30/12/2016

52

10-Feb-17


Principles of Investment Management

• Company specific needs form the basis for all investments

– Liabilities intensively analysed and modelled

– Regulatory requirements

• Strategy

– Absolute Return targets taking into account the liabilities and general

business targets

– Direct Investments into Nordic countries mainly, outside Nordics mainly Funds

– No diversification for the sake of diversification

• Centrally Managed

– Sampo plc Chief Investment Officer is responsible for all investments, all portfolio managers have a direct reporting line to him

– Common infrastructure for investment administration and reporting

– Investment strategies coordinated and streamlined, no overlapping activities

to prevent Group-wide concentrations

53

10-Feb-17


Risk Management Principles

• Scope

– Sampo’s Board of Directors requires that all activities involving the exposure

of any Sampo Group company to risks, as well as activities controlling those

risks, are arranged to comply with these general guidelines and related

instructions as well as with applicable legislation and regulations

– The Board of Directors will supervise the risk taking and risk control activities

– The Principles apply to all Sampo Group companies

• The Key Objectives

– Balance between risks, capital and earnings

– Cost efficiency and high quality processes

– Strategic and operational flexibility

• The Central Tasks

– Identification of risks

– Assessment of required capital

– Pricing of risks

– Managing risk exposures, capital positions and operative processes

– Measuring and reporting risksFor more detailed description of Sampo Group´s Risk Management Principles, see http://www.sampo.com/governance/internal-control/risk-management/

54

10-Feb-17


Sampo’s P&C insurance operations are merged with If 2002). Following the transaction, Sampoowns 38 per cent of If. If becomes fully owned by Sampo (2004).• Business areas:P&C insurance, Long-term savings,Banking

Sampo Insurance Companyand Leonia Bank merge into Sampo-Leonia Financial Group. • Business areas: P&C insurance, Long-term savings (life insurance, asset management, mutual funds); Banking, Investment banking

Mandatum Bank is merged into Sampo-Leonia, and the Group’s name is shortenedto Sampo.

Sampo divests Sampo Bank to Danske Bank.• Business areas: P&C insurance, Life insurance & Wealth Management

Sampo’s Nordea holding exceeds 20%. • Nordea becomes an associated company.

20072004200220012000 2010 2011

Sampo Group’s(If P&Cʼs) • Topdanmark holding exceeds 23%. Topdanmark becomes Ifʼs associated company.

2012

Sampo Group (If P&C)acquires Tryg’s FinnishBusiness.• If P&C signs a partnership agreement with Nordea.

Sampo Group ― Through Structural Changes to the Leading Nordic Financial Group

2013 2014

Sampo Group(Mandatum Life) acquires Suomi Mutualʼs With-ProfitGroup Pension portfolio.

2016

55

Sampo commencesthe mandatory offerfor Topdanmarkafter which Sampo plc´sholding is 41.1.% of shares.Topdanmark becomesSampo´s associatedcompany

10-Feb-17

2017


Mandatum Life ends distribution agreement withDanske Bank.

Financial Strength Rating HistoryIf P&C Insurance Ltd (Sweden), If P&C Insurance Company Ltd (Finland),Sampo plc

The Sampo Groupʼs P&C insurance companies became part of If in January 2002.

2002 2003 2004 2005 2006 2007 2008 2009 -10 -11 -12 -13 -14 -15 -16 -17

Possib

le d

ow

ng

rade J

an 0

3

Sta

ble

Feb 0

2

Neg

ative

Aug

02

Sta

ble

Apr

03

Possib

le u

pg

rade F

eb 0

4

Sta

ble

May

04

Positiv

e M

ay

06

Sta

ble

Nov

08

Apr 04 First-time issuer rating

Aa3

A1

A2

A3

Baa1

Baa256

Positiv

e D

ec 1

5

Moodyʼs If P&CS&P If P&CMoodyʼs Sampo plc

S&P Sampo plc

10-Feb-17

Sta

ble

Dec 1

6AA-/

A+

A/

A-/

BBB+/

BBB/


SAMPO FICO GROUP

NORDEA

BANKING

GROUP

TOPDANMARK

INSURANCE

GROUP

Nordea Bank AB

(SE) 21.3%

SII

GROUP

BANKING

GROUP

FICO

GROUP

INSURANCE

GROUP

Insurance BankingInvestment

Services

Other

(non-regulated

unit)

Topdanmark A/S

(DK) >41%

If IT Services A/S

(DK)

IF P&C Insurance AS

(EE)

IF

INSURANCE

GROUP

If P&C Insurance

Holding Ltd (SE)

IF P&C Insurance Ltd

(SE)

IF P&C Insurance

Company Ltd (FI)

Svithun Assurance AS

(NO) 33%

Autovahinko-

keskus Oy

(FI) 33.5%

Latvia

Lithuania

Denmark

Norway

MANDATUM

INSURANCE

GROUP

Mandatum Life

Services Oy (FI)

Innova Pension

Services Oy (FI)

Mandatum Life

Ltd (FI)

Mandatum Life

Baltic SE (EE)

Mandatun Life

Investment

Services Ltd (FI)

Mandatun Life

Fund Manag.

Services Ltd (LU)

Latvia

Lithuania

IF Livförsäkring AB(SE)

CAB Group AB (SE) 22%

Urzus Group AS(NO) 30%

Various

subsidiaries

Various

subsidiaries

SAMPO SII GROUP

Source: FSA Finland, January 2017

Sampo Group ‒ Legal Supervision Structure

Sampo plc (FI)

Subsidiary

Associated Company

Branch57


10-Feb-17

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