Sampo Oyj · OMXHEX:SAMPO
Sampo Oyj — Investor Presentation (March 2023)
14 slides from Sampo Oyj's investor presentation, Mar 30, 2023
Slide 1: IFRS 17 restatement deck
IFRS 17 restatement deck Sampo Group 30 March 2023
Slide 2: Disclaimer
Disclaimer This presentation is not intended to contain forward-looking statements or reflect management’s views with respect to certain future events and potential financial performance. Although Sampo believes that the presented restated figures reflect the potential implications of IFRS 17 accoun
Slide 3: Restating Sampo's 2022 results for IFRS 17
Restating Sampo’s 2022 results for IFRS 17 • IFRS 17 Insurance contracts is a new accounting standard for insurers, effective from 1 January 2023 What is • Sampo is also applying IFRS 9 Financial instruments from 1 January 2023 new? • Sampo’s first report under IFRS 17/9 will be the Q1 2023 result o
Slide 4: Key IFRS 17/9 accounting considerations for Sampo Group
Key IFRS 17/9 accounting considerations for Sampo Group • P&C operations use the simplified Premium Allocation Approach (PAA) P&C • Introduction of risk adjustment and discounting of claims operations • Assumptions and methodologies to reflect entity-specific circumstances • Underwriting metrics and
Slide 5: Sampo Group – FY 2022 restated for IFRS 17
Sampo Group – FY 2022 restated for IFRS 17 Key differences in 2022 - IFRS 17 vs IFRS 4 Sampo P&C operations Topdan- Sampo Elimina- Sampo Sampo Group, FY 2022 (EURm) If Hastings • P&L impact on transition to IFRS 17 dominated by mark Holding tion Group the rise in interest rates over 2022 GWP & other
Slide 6: Sampo Group – FY 2022 quarterly and full year restatement
Sampo Group – FY 2022 quarterly and full year restatement EURm 1-3/2022 4-6/2022 7-9/2022 10-12/2022 2022 GWP & Other income from insurance contracts 2,849 1,972 1,759 1,687 8,266 Insurance revenue, net 1,718 1,797 1,826 1,827 7,168 Claims incurred and claims handling costs, net -1,173 -1,115 -1,190
Slide 7: If P&C – key considerations
If P&C – key considerations Under IFRS 17, If’s full claims reserves will be discounted • Increased 2022 PBT under IFRS 17 as full LIC* is discounted, which c40% of enhances the benefit of the rise in interest rates over the year reserves IFRS 4 IFRS 17 • Effect of discount rate changes moved to the
Slide 8: If P&C – line by line analysis
If P&C – line by line analysis If P&C, FY 2022 (EURm) IFRS 17 IFRS 4 Differences & specifications Gross written premiums 5,432 5,432 No change - GWP is a management KPI and an alternative performance metric Insurance revenue, net 5,024 5,002 Minor changes relate to reclassification of ceded commissi
Slide 9: If P&C – FY 2022 quarterly and full year restatement
If P&C – FY 2022 quarterly and full year restatement EURm 1-3/2022 4-6/2022 7-9/2022 10-12/2022 2022 Gross written premiums 1,923 1,343 1,081 1,084 5,432 Insurance revenue, net 1,222 1,259 1,285 1,257 5,024 Claims incurred, net -775 -749 -790 -954 -3,267 Operating expenses and claims handling costs
Slide 10: Hastings – key considerations
Hastings – key considerations Hastings: additional revenue included in insurance services result 295 889 • On transition to IFRS 17, certain items, such as internal broker 594 revenue, are moved into insurance revenue Inclusion of internal • As a result, the Hastings loss ratio improves substantiall
Slide 11: Hastings – line by line analysis
Hastings – line by line analysis Hastings, FY 2022 (EURm) IFRS 17 IFRS 4 Differences & specifications Gross written premiums 1,314 1,313 No material change Other income from insurance contracts 213 416 No longer includes external broker income, which is booked below the insurance services result und
Slide 12: Hastings – FY 2022 quarterly and full year restatement
Hastings – FY 2022 quarterly and full year restatement EURm 1-3/2022 4-6/2022 7-9/2022 10-12/2022 2022 Gross written premiums 275 331 380 328 1,314 Other income from insurance contracts 54 53 53 54 213 Insurance revenue, net 184 222 228 255 889 Claims incurred and claims handling costs, net -101 -11
Slide 13: Sampo Group – key sensitivities under IFRS 17
Sampo Group – key sensitivities under IFRS 17 FY2022 effects from instant change on P&L EURm If Hastings Sampo Group * UW profit Discount rate +100 bps +40 +10 +60 UW profit Discount rate -100 bps -40 -10 -60 Insurance finance income & expense, net Discount rate +100 bps +250 +40 +370 Insurance fina
Slide 14: www.sampo.com
www.sampo.com Sampo plc Phone: +358 10 516 0100 Sampo_plc Fabianinkatu 27 Business ID: 0142213-3 sampo_oyj 00100 Helsinki sampo-plc Finland