Parent Company’s Oversight and Activities
Sampo plc reviews Group as a business portfolio and is active especially in matters related to Group’s capitalization and risks as well as related to the parent company’s capital structure and liquidity.
Sampo plc reviews the performance of Sampo Group both on a company level and on a group level based on the reporting provided by the subsidiaries and the associated company, Nordea Bank AB. The information on Nordea Bank AB is, however, based on publicly available material and is therefore less detailed. Reporting on the subsidiaries’ performance to the Board of Directors and Audit Committee of Sampo plc is based mainly on the reporting produced by the subsidiaries. The reporting concentrates on the balance between risks, capitalization and profitability. The parent company is responsible for reporting on its own activities.
At group level, the central focus areas are potential concentrations arising from Group companies’ operations as well as Group’s capitalization and the parent company’s ability to generate liquidity. The parent company is also projecting and analyzing Group companies’ profitability, risks and capitalization with uniform scenarios to have company specific forecasts that are additive at group level.
Based on both the company and group level information, the Board of Directors of Sampo plc decides on Group’s capitalization as well as sets the guidelines on the parent company’s capital structure and liquidity reserve. The underlying objective for Sampo plc is to maintain a prudent capital structure and adequate liquidity in order to be able to arrange financing for strategic projects if needed. Strong liquidity and the ability to acquire financing are essential factors in maintaining Sampo Group’s strategic flexibility.