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Notes to the Group’s Financial Statements

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13 Intangible assets
P&C insurance
2015
EURm Goodwill *) Other intangible assets Total
At 1 Jan.
Cost 535 24 559
Accumulated amortisation - -5 -5
Net carrying amount 535 20 554
At 31 Dec.
Cost 547 24 570
Accumulated amortisation - -6 -6
Net carrying amount 547 17 564
2014
EURm Goodwill *) Other intangible assets Total
At 1 Jan.
Cost 567 31 598
Accumulated amortisation - -8 -8
Net carrying amount 567 13 590
At 31 Dec.
Cost 535 24 559
Accumulated amortisation - -5 -5
Net carrying amount 535 20 554
*) The change in the cost is due to exchange differences.
Life insurance
2015 2014
EURm Goodwill Other intangible assets Total Goodwill Other intangible assets Total
At 1 Jan.
Cost 153 43 196 153 43 196
Accumulated amortisation - -36 -36 - -34 -34
Net carrying amount 153 7 160 153 9 162
At 31 Dec.
Cost 153 43 196 153 43 196
Accumulated amortisation - -36 -36 - -36 -36
Net carrying amount 153 7 160 153 7 160
EURm 2015 2014
Group, total 724 714
Other intangible assets in all segments comprise mainly IT software.
Depreciation and impairment losses are included in the income statement item Other operating expenses.
Testing goodwill for impairment
Goodwill is tested for impairment in accordance with IAS 36 Impairment of assets. No impairment losses have been recognised based on these tests.
For the purpose of testing goodwill for impairment, Sampo determines the recoverable amount of its cash-generating units, to which goodwill has been allocated, on the basis of value in use. Sampo has defined these cash-generating units as If Group and Mandatum Life.
The recoverable amounts for If have been determined by using a discounted cash flow model. The model is based on Sampo’s management’s best estimates of both historical evidence and economic conditions such as volumes,interest rates, margins, capital structure and income and cost development. The value in use model for Mandatum Life is greatly influenced by the long-term development of insurance liabilities, affecting e.g. the required solvency capital and thus the recoverable amount. That is why the forecast period is longer for Mandatum Life, 10 years. The derived cash flows were discounted at the pre-tax rates of the weighted average cost of capital which for If was 7.8% and for Mandatum Life 8.4%. These are somewhat lower than last year due to the decrease in interest rates.
Forecasts for If, approved by the management, cover years 2015 – 2016. The cash flows beyond that have been extrapolated using a 2% growth rate. A 2% growth rate for years beyond 2024 has been used for the for Mandatum Life as well, as it is believed to be close to the anticipated inflation.
In Mandatum Life, the recoverable amount exceeds its carrying amount by some EURm 780. With the calculation method used, e.g. an increase of about 4.7% in the weighted average cost of capital could lead to a situation where the recoverable amount of the entity would equal its carrying amount.
As for the If Group, the management believes that any reasonably possible change in any of these key assumptions would not cause the aggregate carrying amount to exceed the aggregate recoverable amount.