Sampo Oyj: Record low combined ratio for P&C insurance operations

SAMPO PLC                 PRESS RELEASE           10 August 2016 at 9:35 am

Record low combined ratio for P&C insurance operations

Sampo Group's profit before taxes for January - June 2016 amounted to EUR 893 million compared to EUR 1,015 a year earlier.

- Profits decreased because investment income was negatively affected by the difficult investment environment and low interest rates. P&C insurance had a strong first half of 2016 in terms of technical result. The combined ratio was record low at 83.7 per cent including non-recurring items, says Group CEO and President Kari Stadigh.

- Excluding these non-recurring items, the combined ratio for January - June 2016 was 87.1 per cent which was the best ever as well, Stadigh says.

For the corresponding period in 2015, the combined ratio excluding non-recurring items was 87.2 per cent.

Other key figures

• Sampo Group's total comprehensive income for January-June 2016, taking changes in the market value of assets into account, decreased to EUR 607 million (1,147).
• Earnings per share were EUR 1.40 (1.60).
• The return on equity for the Group was 10.9 per cent (20.9).
• Net asset value per share on 30 June 2016 amounted to EUR 18.83 (23.79).
• Profit before taxes for the P&C insurance segment amounted to EUR 436 million (511).
• Sampo's share of Nordea's net profit for the first half of 2016 amounted to EUR 364 million (418).
• Profit before taxes in life insurance operations rose to EUR 103 million (81).

Outlook for 2016

Sampo Group's business areas are expected to report good operating results for 2016.

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 a combined ratio of 87-90 per cent excluding the release from the Swedish MTPL reserves.

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

Please find Sampo Group's Half-Year Financial Report for January-June 2016 and the Supplementary Financial Information Package is available at www.sampo.com/result (http://www.sampo.com/result).

For more information, please contact:

Maria Silander, Communications Manager, tel. [phone]

Sampo will arrange a press conference at Hotel Kämp (Conference room Paavo Nurmi, Pohjoisesplanadi 29, Helsinki) today at 12:30 pm Finnish time. The press conference will be held in Finnish.

An English-language conference call will be arranged at 4:00 pm Finnish time (2:00 pm UK time). Please call tel. [phone], or [phone].

The conference call can also be followed live at www.sampo.com/result (http://www.sampo.com/result).

Distribution:
The principal media
www.sampo.com (http://www.sampo.com/)

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Source: Sampo Oyj via Globenewswire

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