Slide 1: Investor Presentation January – December 2023
Investor Presentation January – December 2023 1
Slide 2: Sampo Group 2023 results
Sampo Group 2023 results 8 February 2024 8 February 2024 2
Slide 3: Disclaimer
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 assuran
Slide 4: 2023: Resilient performance in challenging conditions
2023: Resilient performance in challenging conditions Strong FX-adjusted premium growth of 12 per cent in Q4 driven by Private and the UK Underlying margin trends remained positive as claims inflation stabilised Results affected by adverse weather conditions across the Nordics Pricing trends in the
Slide 5: Strong top line growth and solid underlying margins
Strong top line growth and solid underlying margins Profit before taxes (P&C operations), EURm P&C underwriting result, EURm Combined ratio, % 1,924 13% -1.2%-p 2,000 1,400 88% 1,481 1,200 1,164 1,031 85.8 % 1,500 86% 1,000 84.6 % 800 1,000 84% 803 600 500 400 82% 200 0 0 80% 2022 2022 2023 2022 202
Slide 6: Key developments in Sampo's P&C operations
Key developments in Sampo’s P&C operations Premium growth and pricing Claims cost development ✓ The Nordic P&C market remains disciplined, with dynamics ≈ Nordic claims inflation remained at the lower end of 4-5% in Q4 broadly unchanged year-to-date driven by the property line ✓ Nordic price increas
Slide 7: Solid contribution from investment returns to earnings
Solid contribution from investment returns to earnings Sampo Group net investment income 2023, EURm • Sampo achieved an investment return of 6.3 per cent in 2023, supported by higher running yields and strong net gains 484 1,006 +32% • Short duration at the beginning of the higher interest rate peri
Slide 8: Strong Nordic GWP growth driven by increased rates and high retention
Strong Nordic GWP growth driven by increased rates and high retention FX-adjusted GWP growth FY 2023 Q4/2023 Key developments If total 6.7% If total 5.6% • Strong organic GWP growth of 6.7% in FY 2023 (excl. currency effects) Private 5.0% Private 5.0% Commercial 5.6% Commercial 6.7% • Robust growth
Slide 9: Nordic underwriting profits supported by healthy growth and margins
Nordic underwriting profits supported by healthy growth and margins 2023 combined ratio Key developments • 2023 underwriting result of EUR 842 million (673) driven by healthy FX-adjusted GWP growth and solid margins • Continued improvement from targeted rate increases to mitigate claims inflation •
Slide 10: Solid premium growth momentum in Private
Solid premium growth momentum in Private FX-adjusted GWP growth in Private, yoy • FX-adjusted GWP growth in Private 5.0% in Q4, driven by continued strong performance in non-motor lines 10% 8% 5.6% • Q4 online sales in Private up 8% year-on-year, supported by 6% several activities 5.0% 4% • Despite
Slide 11: Nordic claims inflation has stabilised
Nordic claims inflation has stabilised • Claims inflation remains somewhat above historical levels, Property insurance mainly due to weak currencies and persistent general inflation Materials Labour Claims inflation, % • Average Nordic claims inflation declined to the lower end of the 4-5% range in
Slide 12: Successful 1 January 2024 renewals in corporate lines
Successful 1 January 2024 renewals in corporate lines Renewal profile corporate lines (%, accumulated) • Significant renewal on 1 January: More than 40% of Commercial and Industrial portfolios renewed 100 100 • Implemented high-single digit price increases across the book, 89 securing inflation expe
Slide 13: Continued strong UK growth with disciplined margins
Continued strong UK growth with disciplined margins • Currency adjusted GWP growth of 32%, driven by price increases and LCP Live customer policies (million) growth 3.1 3.1 3.2 3.5 2.6 2.7 2.8 2.3 2.0 • Motor pricing continued to harden during Q4, albeit at a slower pace than in the second and third
Slide 14: Hastings and If collaboration benefits realise on schedule
Hastings and If collaboration benefits realise on schedule Identified pre-tax benefits of EUR >45 million • On track for original run-rate benefits of EUR 45 million by Q4/2024 Capital management EUR >15 mn 100% • Run rate benefits of EUR 32 million realised as benefits from the collaboration agreem
Slide 15: Resilient Group performance relative to financial targets
Resilient Group performance relative to financial targets Financial target 2021 2022 2023 • Mid-single digit growth in UW profit • 19% • 13% • 13% annually on average • Group combined ratio <86% • 81.4% • 82.1% • 84.6% • Mid-single digit growth in UW profit • 15% • 26% • 25% annually on average • Co
Slide 16: Solvency and leverage well within target
Solvency and leverage well within target Sampo Group Solvency II ratio, pro forma, % Sampo Group financial leverage, % Own funds: EURm 6,589 EURm 5,856 IFRS equity: EURm 7,309 EURm 7,687 SCR: EURm 3,087 EURm 3,217 Financial debt: EURm 2,610 EURm 2,604 210% 30% 9% -7% -5% Target: <30% 200% 2.4 % 27.7
Slide 17: Sampo committed to set group-level SBTi targets
Sampo committed to set group-level SBTi targets • Sampo joined the Science Based Targets initiative (SBTi)* in October 2023 to If P&C’s targets approved by SBTi set group-level near-term greenhouse gas emission reduction targets aligned with the Paris Agreement • Sampo’s subsidiaries If, Topdanmark,
Slide 18: Sampo Group
Sampo Group 8 February 2024 18
Slide 19: Financials
Financials 8 February 2024 19
Slide 20: Group key figures
Group key figures EURm 2023 2022 Change, % Q4/2023 Q4/2022 Change, % Profit before taxes (P&C operations) 1,481 1,924 -23 368 67 449 If 1,358 1,550 -12 369 60 552 Topdanmark 162 158 3 19 79 -77 Hastings 129 107 21 59 6 886 Holding -160 146 - -78 -48 64 Net profit for the equity holders 1,323 2,107 -
Slide 21: Profit before taxes (P&C operations) and EPS by quarter
Profit before taxes (P&C operations) and EPS by quarter EURm EUR 900 1.80 824 1.66 800 1.60 692 1.42 700 1.40 600 1.20 500 1.00 359 363 391 368 0.75 0.73 0.76 400 0.80 342 0.53 0.60 300 0.60 200 0.40 67 0.14 100 0.20 0 0.00 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q1/22 Q2/22 Q3/22 Q4/22 Q1/2
Slide 22: Key result movements Q4/2023
Key result movements Q4/2023 Q4/2023 Q4/2022 Comments - UW result of EUR 281 million negatively affacted by severe weather and currency headwind. Net financial result of EUR 175 million, including net investment income of EUR 517 million and IFIE of EUR -342 million Group PBT 368 67 (P&C operations)
Slide 23: EPS and operational result calculation
EPS and operational result calculation EPS calculation Operational result calculation 2023 2022 Q4/2023 Q4/2022 EURm 2023 Net profit for the equity Profit before taxes (P&C operations) 1,481 1,323 2,107 382 61 holders, EURm - from continuing - Net unrealised gains or losses on investment -327 1,072
Slide 24: Share buybacks development
Share buybacks development Buyback programmes Buybacks by quarter Announced, Executed, Launch Start End EURm EURm Shares repurchased EURm 1. programme 1 Oct 2021 4 Oct 2021 25 Mar 2022 750 750 Q4/2021 8,539,956 380 2. programme 30 Mar 2022 31 Mar 2022 17 May 2022 250 228 Total 2021 8,539,956 380 3.
Slide 25: Underwriting
Underwriting 8 February 2024 25
Slide 26: Top line development
Top line development GWP and brokerage income Insurance revenue, net (incl. brokerage) EURm EURm IFRS 4 IFRS 17 IFRS 4 IFRS 17 10,000 8,000 7,535 8,870 7,337 7,277 9,000 6,887 8,375 7,000 1,251 8,136 1,010 998 7,644 6,516 8,000 2,063 830 7,241 1,636 805 1,313 6,000 1,127 5,566 7,000 5,434 1,326 1,25
Slide 27: Underwriting result and combined ratio development
Underwriting result and combined ratio development Underwriting result Combined ratio EURm IFRS 4 IFRS 17 IFRS 4 IFRS 17 1,400 88% 1,314 1,282 104 85.8% 86% 1,200 164 1,164 84.6% 84.6% 1,087 84.0% 224 128 84% 1,031 83.3% 103 1,000 227 128 81.4% 82.1% 892 194 82% 837 182 800 210 230 80% 202 600 78% 9
Slide 28: Net insurance liabilities
Net insurance liabilities Q4/2023 LIC per country and durations 2023 year-end EURm If P&C Topdanmark Hastings Sampo If Sampo Group Group LIC, % Duration, years LIC, % Duration, years Liability for remaining coverage, net 892 285 292 1,469 Sweden 31 6.3 22 6.3 Liability for incurred claims, net 5,686
Slide 29: Sampo Group P&C operations – key sensitivities under IFRS
Sampo Group P&C operations – key sensitivities under IFRS FY2023 effects from instant change on P&L EURm If Hastings Sampo Group * • Loss and combined ratio sensitive to UW profit Discount rate +100 bps +30 +5 +45 changes in discount rates UW profit Discount rate -100 bps -35 -5 -50 • Net investment
Slide 30: Investments
Investments 8 February 2024 30
Slide 31: Sampo Group investment mix, 31 December 2023
Sampo Group investment mix, 31 December 2023 If Topdanmark Hastings Sampo plc Sampo Group Fixed income total 89% 89% 98% 62% 86% Credit bonds, funds and loans 58% 2% 69% 4% 44% Covered bonds 20% 81% 0% 0% 23% Government bonds 6% 0% 3% 0% 4% Index-linked bonds 4% 4% 0% 0% 3% Money market and cash 1%
Slide 32: Sampo Group net financial result bridge 2023
Sampo Group net financial result bridge 2023 1200 -4 1000 -30 -38 -180 800 488 -160 600 -38 33 1,006 31 61 400 IFIE EUR -446 million 560 200 398 0 Interest & dividend Net gains or losses Other Net investment Unwind of Changes in discount Indexation of Net financial result income income discounting r
Slide 33: Sampo Group net financial result bridge Q4/2023
Sampo Group net financial result bridge Q4/2023 600 -8 -8 500 -11 -62 400 388 -271 300 517 200 10 11 10 100 16 175 IFIE 101 EUR -342 million 0 Interest & dividend Net gains or losses Other Net investment Unwind of Changes in discount Indexation of Net financial result income income discounting rates
Slide 34: Sampo Group P&C operations' net investment income 2023
Sampo Group P&C operations’ net investment income 2023 EURm If P&C Topdanmark Hastings Holding Eliminations Sampo Group Fixed income 360 48 29 23 -13 447 Equities 33 4 0 23 0 59 Funds 5 9 2 0 0 16 Interest & dividend income 398 61 31 46 -13 522 Fixed income 276 43 45 0 0 364 Equities 128 20 0 -84 0
Slide 35: Sampo Group P&C operations' net investment income Q4/2023
Sampo Group P&C operations’ net investment income Q4/2023 EURm If P&C Topdanmark Hastings Holding Eliminations Sampo Group Fixed income 97 11 9 4 -2 120 Equities 3 3 0 9 0 14 Funds 1 2 1 0 0 3 Interest & dividend income 101 16 10 13 -2 137 Fixed income 255 43 34 -1 0 332 Equities 56 10 0 -38 0 27 Fu
Slide 36: Solvency
SAMPO = GROUP Solvency 8 February 2024 36
Slide 37: Sampo Group Solvency II ratio development
Pro forma adjusted for demerger and including Sampo Group Solvency II ratio development dividend accrual based on the regular dividend of EUR 1.50 per share for 2022 Pro forma of demerger related transactions 240% 236 % 224% 220% 213% 210% 200% 195% 185% 177 % 182 % 180% 174% 176% 160% 155% 156% 140
Slide 38: Sampo Group Solvency II, 31 December 2023, pro forma
Sampo Group Solvency II, 31 December 2023, pro forma EURm 7,000 Solvency II ratio 182% 6,000 5,000 272 200 4,000 -816 -404 0 18 3,000 2,027 5,856 2,000 3,217 1,000 1,920 0 8 February 2024 38
Slide 39: Sampo Group Solvency II, estimated sensitivities on market risk factors
Sampo Group Solvency II, estimated sensitivities on market risk factors Pro forma, 31 December 2023 200% 182% 177% 187% 183% 182% 179% 176% 150% 100% 50% 0% Base case 2023 RFR -100 bps RFR +100 bps Spread +100 bps Equity prices -10% Equity prices -20% Equity prices -30% Symmetric The Solvency II sym
Slide 40: Financial leverage
Financial leverage 8 February 2024 40
Slide 41: Sampo Group financial leverage
Sampo Group financial leverage IFRS 4 IFRS 17 Total debt, EURm 4,531 4,616 4,905 4,210 3,288 3,288 3,184 3,171 2,860 2,604 IFRS equity, EURm 13,014 12,542 12,258 13,464 9,543 10,178 10,252 8,709 7,309 7,687 35% 25.8% 26.9% 28.6% 23.8% 25.6% 24.4% 23.7% 26.7% 26.3% 25.3% 27.7% 30% 25% 20% 15% 10% 5%
Slide 42: Sampo Group financial debt 31 December 2023
Sampo Group financial debt 31 December 2023 Sampo plc If Topdanmark Hastings Eliminations* Group, total Sub/hybrid 1,490 135 148 - -127 1,645 Senior bonds 959 - - - - 959 Total 2,464 135 148 - -127 2,604 * Topdanmark EUR 127 million held by If. Key Credit Metrics Financial debt, EURm 2,604 IFRS equi
Slide 43: Sampo Group outstanding debt instruments, 31 December 2023
Sampo Group outstanding debt instruments, 31 December 2023 Sampo Plc Subsidiaries Instrument & Principal Coupon Maturity/call Instrument & Principal Coupon Maturity/call Senior Bond 162 EURm 1.250% 30 May 2025 If P&C - Subordinated 1,500 SEKm Stibor 3M + 1.30% 17 Mar 2026 Senior Bond 313 EURm 1.625%
Slide 44: If
If 8 February 2024 44
Slide 45: Combined ratio development
Combined ratio development 90% IFRS 4 IFRS 17 85% 88.9% 88.1% 80% 87.7% 86.6% 86.5% 86.1% 85.3% 85.2% 84.5% 83.1% 82.1 % 81.3 % 80.3% 75% 70% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022 2023 Combined ratio Target for 2021-2023 (<85%) 8 February 2024 Note: 2015 and 2016 excluding one-
Slide 46: Results by quarter
Results by quarter EURm Q4/2023 Q3/2023 Q2/2023 Q1/2023 Q4/2022 Q3/2022 Q2/2022 Q1/2022 Gross written premiums 1,095 1,100 1,307 1,966 1,084 1,081 1,343 1,923 Insurance revenue, net 1,266 1,263 1,231 1,235 1,257 1,285 1,259 1,222 Claims incurred, net -772 -802 -761 -759 -954 -790 -749 -775 Operating
Slide 47: Key figures by quarter
Key figures by quarter Q4/2023 Q3/2023 Q2/2023 Q1/2023 Q4/2022 Q3/2022 Q2/2022 Q1/2022 Combined ratio, % 83.1 84.1 82.9 82.4 98.5 83.1 80.3 83.9 Cost ratio, % 22.2 20.7 21.1 21.0 23.1 21.7 20.9 20.5 Risk ratio, % 60.9 63.4 61.8 61.5 75.4 61.5 59.5 63.4 Large losses and severe weather, % 3.8 9.2 7.1
Slide 48: Key figures by business area and country
Key figures by business area and country 2023 (2022) Private Commercial Industrial Baltic Sweden Norway Finland Denmark Other GWP, EURm 2,924 (2,984) 1,340 (1,352) 966 (890) 238 (206) 1,847 (1,858) 1,704 (1,782) 1,145 (1,050) 534 (536) 0 (0) Insurance revenue, net, EURm 2,838 (2,926) 1,310 (1,320) 6
Slide 49: Key figures by business area and country
Key figures by business area and country Q4/2023 (Q4/2022) Private Commercial Industrial Baltic Sweden Norway Finland Denmark Other GWP, EURm 707 (710) 215 (213) 117 (112) 56 (49) 401 (384) 364 (382) 174 (163) 100 (105) 0 (0) Insurance revenue, net, EURm 717 (724) 331 (330) 160 (153) 59 (50) 415 (41
Slide 50: FX-adjusted GWP quarterly growth by business area and country
FX-adjusted GWP quarterly growth by business area and country Private Commercial Industrial Baltic Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 3.3 3.9 5.9 7.3 1.6 3.3 4.0 5.1 11.7 12.6 22.6 38.3 -1.9 2.2 0.1 -0.3 2020 6.4 0.4 4.9 3.6 7.3 4.4 -1.0 -1.5 7.6 13.0 17.7 6.2 6.6 -2.7 3.5 1.9 2021
Slide 51: Number of customers, customer satisfaction and retention in Private
Number of customers, customer satisfaction and retention in Private Number of customers, million Customer satisfaction, NPS Customer retention, % households 3.3 3.3 62 90% 90% 90% >89% 3.2 3.2 61 60 60 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023 8 February 2024 51
Slide 52: Nordic new car sales
Nordic new car sales If P&C had a market share of 25% in Q4/2023 Number of new cars sold Number of new cars sold 878,000 -16% 841,000 838,000 221,000 218,000 214,000 213,000 761,000 180,000 181,000 179,000 728,000 -2% 692,000 677,000 2017 2018 2019 2020 2021 2022 2023 Q4/2017 Q4/2018 Q4/2019 Q4/2020
Slide 53: Topdanmark
Topdanmark 8 February 2024 53
Slide 54: Results and key figures by quarter
Results and key figures by quarter EURm Q4/2023 Q3/2023 Q2/2023 Q1/2023 Q4/2022 Q3/2022 Q2/2022 Q1/2022 Gross written premiums 241 252 242 604 221 245 245 597 Insurance revenue, net 333 321 317 318 315 313 315 312 Claims incurred, net -242 -217 -200 -203 -195 -202 -180 -232 Operating expenses and cl
Slide 55: Hastings
Hastings 8 February 2024 55
Slide 56: Operating ratio and loss ratio development
Operating ratio and loss ratio development Operating ratio Loss ratio 100% 100% IFRS 4 IFRS 4 IFRS 17 IFRS 17 95% 95% 90% 89.7 % 89.8 % 83.7 % 90% 87.5 % 87.4 % 87.2 % 85% 82.6 % 80% 76.5 % 85% 80.3 % 75% 80% 70% 65% 62.2 % 63.3 % 75% 60% 57.2 % 70% 55% 50% 65% 45% 60% 40% 2019 2020 2021 2022 2022 2
Slide 57: Profit before taxes by quarter (consolidated)
Profit before taxes by quarter (consolidated) EURm 80 69 70 70 11 60 15 54 50 11 40 36 40 15 30 15 59 54 24 21 22 20 43 5 14 25 15 10 21 17 10 6 0 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Profit before taxes Non-operational D&A Figures for 2022 restated for IFRS 17 but not for IFRS 9. The qua
Slide 58: Results and key figures by quarter
Results and key figures by quarter EURm Q4/2023 Q3/2023 Q2/2023 Q1/2023 Q4/2022 Q3/2022 Q2/2022 Q1/2022 Gross written premiums 440 467 435 363 328 380 331 275 Brokerage revenue 88 90 97 83 78 82 80 81 Insurance revenue, net (incl. Brokerage) 340 327 309 275 279 258 250 211 Claims incurred and claims
Slide 59: LCP and market share development
LCP and market share development Live customer policies Private car market share Million 9% 4.0 8.3% 8.4% 8.3% 8.1% 8% 7.7% 3.5 7.5% 3.5 7.3% 3.1 3.2 3.1 0.54 7% 2.8 6.5% 3.0 0.27 0.31 0.41 2.6 2.7 5.8% 0.21 6% 2.3 0.16 2.5 0.17 2.0 0.17 5% 2.0 0.13 4% 1.5 2.9 2.8 2.8 2.8 3% 2.5 2.6 2.5 2.2 1.0 1.9
Slide 60: Holding & other
Holding & other 8 February 2024 60
Slide 61: Sampo plc balance sheet, 31 December 2023
Sampo plc balance sheet, 31 December 2023 Assets total, EURm 7,990 Liabilities total, EURm 7,990 Liquidity 1,352 CPs issued 0 Investment assets 979 LT senior debt 959 Tangible assets 2 Private placements 2 Fixed income 101 Bonds issued 957 Equity and private equity 876 Subordinated debt 1,490 Equity
Slide 62: Sampo Group overview
Sampo Group overview 8 February 2024 62
Slide 63: Sampo's P&C operations have a uniquely attractive profile
Sampo’s P&C operations have a uniquely attractive profile Top line: EUR 8.9 billion Private Commercial Industrial Baltic UK EUR 3.6 bn EUR 2.0 bn EUR 1.0 bn EUR 0.2 bn EUR 2.1 bn Combined ratio: 84.6% Underwriting profit: EUR 1.2 bn UW profit CAGR: 8% ✓ Leading digital sales and ✓ Strong pricing pow
Slide 64: P&C Insurance market shares
P&C Insurance market shares 22% Sweden Q2/2023 18% Nordics 20% Norway Q2/2023 Gjensidige 26% LF 31% If & Topdanmark 20% If 22% If 18% Tryg 15% Fremtid 15% Tryg 17% LF 9% Tryg 14% Folksam 16% Gjensidige 9% Storebrand 5% Others 18% OP 5% Others 18% Others 41% 6% 21% Finland Denmark Q2/2023 16% Finland
Slide 65: Sampo plc's ownership structure 31 December 2023
Sampo plc’s ownership structure 31 December 2023 Largest Finnish-registered shareholders Ownership development 230,000 70% 210,000 Solidium Oy 6.63%* 68% 190,000 Varma Mutual Pension Insurance Company 4.43% 66% 170,000 Ilmarinen Mutual Pension Insurance Company 1.20% 150,000 64% Oy Lival AB 0.80% 13
Slide 66: Sampo Group ESG overview
Sampo Group ESG overview 8 February 2024 66
Slide 67: Allocation of direct fixed income and equity investments according to ESG risk categories
Allocation of direct fixed income and equity investments according to the ESG risk categories, Sampo Group excluding Topdanmark and Hastings 31 December 2023 Weighted average ESG risk rating of Sampo Group’s direct fixed income and equity investments (0-100) 18 Market value of Sampo Group’s direct f
Slide 68: Sampo plc's ESG ratings
Sampo plc’s ESG ratings Target: To be rated in the top quartile within the industry among the leading rating agencies’ rankings. Examples of ESG rating agencies Rating and scale Rating distribution and/or ranking Industry best is B-. Rating of Sampo plc: 55/100 Percentile rank of Sampo plc: 86 Indus
Slide 69: If P&C – Targets approved by Science Based Targets initiative (SBTi)
If P&C – Targets approved by Science Based Targets initiative (SBTi) ESG framework for underwriting Science Based Target initiative (SBTi) SBTi is a joint initiative between the UN, WWF, CDP and World Resources Institute If’s internal framework for ESG in underwriting: If P&C’s targets approved by S
Slide 70: Sampo plc
Sampo plc Fabianinkatu 27 00100 Helsinki, Finland Phone: +358 10 516 0100 Business ID: 0142213-3 www.sampo.com @Sampo_plc sampo-plc sampo_oyj 70