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All notes

Select note 1–41
1 Insurance premiums written
P&C insurance
EURm 2015 2014
Premiums from insurance contracts
Premiums written, direct insurance 4,464 4,550
Premiums written, assumed reinsurance 95 84
Premiums written, gross 4,559 4,634
Reinsurers' share of premiums written -181 -170
Premiums written, net 4,378 4,464
Change in unearned premium provision -39 -3
Reinsurers' share 5 -3
Change in unearned premium provision, net -34 -6
Premiums earned, total 4,344 4,457
Life insurance
EURm 2015 2014
Premiums from insurance contracts
Premiums written, direct insurance 723 658
Premiums written, assumed reinsurance 2 4
Insurance contracts total, gross 725 661
Premium revenue ceded to reinsurers on insurance contracts issued -5 -5
Insurance contracts total, net 720 656
Investment contracts 424 449
Premiums written, net 1) 1,144 1,105
Elimination items between segments - -24
Group, total 5,522 5,544
¹) The change in unearned premiums is presented in note 4 " The change in insurance and investment liabilities".
Specification of premiums written in Life insurance
EURm 2015 2014
Premiums from insurance contracts
Premiums from contracts with discretionary participation feature 146 143
Premiums from unit-linked contracts 575 513
Premiums from other contracts 2 2
Total 723 658
Assumed reinsurance 2 4
Premiums from investment contracts
Premiums from contracts with discretionary participation feature 30 1
Premiums from unit-linked contracts 394 448
Total 424 449
Insurance and investment contracts, total 1,149 1,110
Reinsurers' share -5 -5
Premiums written, total 1,144 1,105
Single and regular premiums from direct insurance
Regular premiums, insurance contracts 287 282
Single premiums, insurance contracts 436 375
Single premiums, investment contracts 424 449
Total 1,147 1,106
2 Net income from investments
P&C insurance
EURm 2015 2014
Financial assets
Derivative financial instruments
Gains/losses -4 -28
Loans and receivables
Interest income 18 21
Financial assets available-for-sale
Debt securities
Interest income 191 247
Impairment losses 10 -14
Gains/losses -5 18
Equity securities
Gains/losses 121 134
Impairment losses -11 -5
Dividend income 47 44
Total 353 424
Total from financial assets 366 417
Other assets
Investment properties
Gains/losses -1 -0
Other -0 -0
Total from other assets -1 -1
Expense on other than financial liabilities -4 -4
Effect of discounting annuities -38 -45
Fee and commission expenses
Asset management -19 -14
P&C insurance, total 304 353
Included in gains/losses from financial assets available-for-sale is a net gain of EURm 83 (133) transferred from the fair value reserve.
Life insurance
EURm 2015 2014
Financial assets
Derivative financial instruments
Gains/losses -90 -97
Financial assets designated as at fair value through p/l
Debt securities
Interest income 1 1
Gains/losses 1 1
Total 2 2
Investments related to unit-linked contracts
Debt securities
Interest income 58 58
Gains/losses -40 -10
Equity securities
Gains/losses 219 213
Dividend income 22 19
Loans and receivables
Interest income 1 3
Other financial assets
Gains/losses -21 -16
Total 239 267
Loans and receivables
Interest income 3 2
Gains/losses 27 42
Total 30 44
Financial assets available-for-sale
Debt securities
Interest income 96 98
Gains/losses 48 49
Equity securities
Gains/losses 192 107
Impairment losses -19 -41
Dividend income 108 89
Total 423 302
Total financial assets 604 518
Other assets
Investment properties
Gains/losses 2 3
Other 13 5
Total other assets 15 8
Net fee income
Asset management -17 -14
Fee income 29 27
Total 13 13
Life insurance, total 632 540
Included in gains/losses from financial assets available-for-sale is a net gain of EURm 259 (10) transferred from the fair value reserve.
Holding
EURm 2015 2014
Financial assets
Derivative financial instruments
Gains/losses 7 1
Loans and receivables 9 -4
Financial assets available-for-sale
Debt securities
Interest income 28 22
Gains/losses 15 7
Equity securities
Gains/losses 13 2
Impairment losses -0 -1
Dividend income 5 2
Total 60 32
Holding, total 76 28
Included in gains/losses from financial assets available for-sale is a net gain of EURm 12 (2) transferred from the fair value reserve.
Elimination items between segments -14 -23
EURm 2015 2014
Group, total 998 898
The changes in the fair value reserve are disclosed in the Statement of changes in equity. Other income and expenses comprise rental income, maintenance expenses and depreciation of investment property. All the income and expenses arising from investments are included in Net income from investments. Gains/losses include realised gains/losses on sales, unrealised and realised changes in fair values and exchange differences. Unrealised fair value changes for financial assets available-for-sale are recorded in other comprehensive income and presented in the fair value reserve in equity. The effect of discounting annuities in P&C insurance is disclosed separately. The provision for annuities is calculated in accordance with actuarial principles taking anticipated inflation and mortality into consideration, and discounted to take the anticipated future return on investments into account. To cover the costs for upward adjustment of annuity provisions required for the gradual reversal of such discounting, an anticipated return on investments is added to annuity results.
3 Claims incurred
P&C insurance
2015 2014
EURm Gross Ceded Net Gross Ceded Net
P&C insurance
Claims cost attributable to current-year operations
Claims paid -1,607 17 -1,590 -1,643 14 -1,629
Change in provision for claims outstanding (incurred and reported losses) -691 20 -672 -695 15 -680
Change in provision for claims outstanding (incurred but not reported losses, IBNR) -574 12 -562 -594 11 -583
Claims-adjustment costs -8 - -8 -8 - -8
Change in claims provision for annuities -1 - -1 -3 - -3
Total claims cost attributable to current-year operations -2,881 48 -2,833 -2,943 41 -2,902
Claims costs attributable to prior-year operations
Claims paid -1,011 45 -966 -1,199 181 -1,019
Annuities paid -204 -0 -204 -261 0 -260
Change in provision for claims outstanding (incurred and reported losses) 635 -26 609 798 -183 615
Change in provision for claims outstanding (incurred but not reported losses, IBNR) 516 -16 500 687 -21 666
Total claims cost attributable to prior-year operations -64 3 -61 26 -24 2
Insurance claims paid
Claims paid -2,618 61 -2,557 -2,843 195 -2,648
Annuities paid -132 - -132 -127 - -127
Total claims paid -2,750 61 -2,689 -2,969 195 -2,774
Change in provision for claims outstanding
Change in provision for claims outstanding (incurred and reported losses) -56 -6 -62 103 -168 -65
Change in provision for claims outstanding (incurred but not reported losses, IBNR) -127 -4 -131 -88 -10 -98
Change in claims provision for annuities -11 -0 -11 37 0 37
Claims-adjustment costs -1 - -1 -3 - -3
Total change in provision for claims outstanding -195 -10 -205 50 -178 -128
P&C insurance, total -2,945 51 -2,894 -2,919 17 -2,902
The provision for annuities is valued in accordance with normal actuarial principles taking anticipated inflation and mortality into consideration, and discounted to take the anticipated future investment return into account. To cover costs for the costs for the upward adjustment of annuity provisions required for the gradual reversal of such discounting, an anticipated return is added to the annuity results. Provisions for incurred but not reported losses pertaining to annuities in Finland are discounted. The provisions in 2015 amounted to EURm 261 (257). The non-discounted value was EURm 351 (388). The exchange effect on the discounted provisions was a decrease of EURm 6. The real increase was EURm 8, explained by the decrease in the discount rate from 2.0 percent to 1.5 percent.
Interest rate used in calculating the technical provisions of annuities (%)
2015 2014
Sweden 2.01% 1.75%
Finland 1.50% 2.00%
Denmark 1.71% 1.47%
Life insurance
Claims paid Change in provision for claims outstanding Claims incurred
EURm 2015 2014 2015 2014 2015 2014
Insurance contracts
Life insurance
Contracts with discretionary participation feature (DPF) -47 -45 2 1 -45 -44
Other contracts -0 -0 -0 -12 -1 -12
Unit-linked contracts -183 -177 14 0 -170 -177
Total -231 -223 16 -11 -215 -233
Pension insurance
Contracts with discretionary participation feature (DPF) -397 -350 -19 35 -417 -316
Unit-linked contracts -15 -13 -21 -23 -36 -36
Total -412 -364 -40 12 -453 -351
Assumed reinsurance -0 -1 -0 1 -1 0
Insurance contracts total, gross -644 -587 -25 3 -669 -584
Reinsurers´ share 3 3 0 -0 3 3
Insurance contracts total, net -641 -585 -25 3 -666 -582
Investment contracts
Capital redemption policies
Contracts with discretionary participation feature (DPF) -0 -0 - - -0 -0
Unit-linked contracts -358 -294 - - -358 -294
Investment contracts, total -358 -294 - - -358 -294
Life insurance, total -999 -879 -25 3 -1,023 -876
Claims paid by type of benefit
EURm 2015 2014
Insurance contracts
Life insurance
Surrender benefits -8 -8
Death benefits -19 -21
Maturity benefits -10 -5
Loss adjustment expenses 0 -0
Other -10 -10
Total -48 -45
Life insurance, unit-linked
Surrender benefits -132 -114
Death benefits -41 -50
Maturity benefits -10 -13
Loss adjustment expenses 0 -0
Total -183 -177
Pension insurance
Pension payments -386 -319
Surrender benefits -6 -25
Death benefits -5 -6
Loss adjustment expenses -0 -0
Total -397 -350
Pension insurance, unit-linked
Pension payments -1 -
Surrender benefits -11 -10
Death benefits -3 -3
Other -0 -0
Total -15 -13
Assumed reinsurance -0 -1
Insurance contracts total, gross -644 -587
Reinsurers' share 3 3
Insurance contracts total, net -641 -585
Investment contracts
Capital redemption policy, with-profit
Surrender benefits -375 -316
Loss adjustment expenses 17 22
Total -358 -295
Investment contracts total, gross -358 -295
Claims paid total, gross -1,001 -882
Claims paid total, net -999 -879
Elimination items between segments - 8
EURm 2015 2014
Group, total -3,917 -3,771
4 Change in liabilities for insurance and investment contracts
P&C insurance
EURm 2015 2014
Change in unearned premium provision -39 -3
Reinsurers' share 5 -3
Change in unearned premium provision, net -34 -6
Life insurance
EURm 2015 2014
Insurance contracts
Life-insurance
Contracts with discretionary participation feature (DPF) 15 17
Unit-linked contracts -292 -292
Total -278 -275
Pension insurance
Contracts with discretionary participation feature (DPF) 94 144
Unit-linked contracts -143 -177
Total -49 -34
Assumed reinsurance 0 2
Insurance contracts total -327 -306
Investment contracts
Capital redemption policy
Contracts with discretionary participation feature (DPF) -33 -4
Unit-linked contracts -102 -188
Investment contracts, total -135 -192
Change in liabilities for insurance and investment contracts in total, net -462 -499
Elimination items between segments -5 16
Group, total -502 -489
5 Staff costs
P&C insurance
EURm 2015 2014
Staff costs
Wages and salaries -373 -374
Cash-settled share-based payments -17 -18
Pension costs
- defined contribution plans 213 -64
- defined benefit plans (Note 31) -137 -7
Other social security costs -57 -75
P&C insurance, total -371 -537
Life insurance
EURm 2015 2014
Staff costs
Wages and salaries -35 -33
Cash-settled share-based payments -4 -4
Pension costs - defined contribution plans -6 -5
Other social security costs -3 -4
Life insurance, total -47 -46
Holding
EURm 2015 2014
Staff costs
Wages and salaries -8 -8
Cash-settled share-based payments -8 -9
Pension costs - defined contribution plans -2 -2
Other social security costs -1 -0
Holding, total -20 -20
EURm 2015 2014
Group, total -438 -603
More information on share-based payments in note 36 Incentive schemes.
6 Other operating expenses
P&C insurance
EURm 2015 2014
IT costs -114 -101
Other staff costs -15 -15
Marketing expenses -38 -42
Depreciation and amortisation -9 -15
Rental expenses -45 -48
Change in deferred acquisition costs -5 -14
Direct insurance comissions -167 -171
Commissions on reinsurance ceded 14 14
Other -98 -111
P&C insurance, total -477 -502
Life insurance
EURm 2015 2014
IT costs -17 -14
Other staff costs -2 -2
Marketing expenses -4 -3
Depreciation and amortisation -2 -2
Rental expenses -4 -3
Direct insurance comissions -9 -10
Comissions of reinsurance assumed -1 -2
Commissions on reinsurance ceded 1 2
Other -38 -25
Life insurance, total -74 -60
Item Other for P&C and Life Insurance includes e.g. expenses related to communication, external services and other administrative expenses.
Holding
EURm 2015 2014
IT costs -1 -1
Marketing expenses -1 -1
Rental expenses -1 -1
Other -9 -9
Holding, total -12 -12
Item Other includes e.g. consultancy fees and rental and other administrative expenses.
Elimination items between segments 17 16
EURm 2015 2014
Group, total -545 -558
7 Result analysis of P&C insurance
EURm 2015 2014
Insurance premiums earned 4,344 4,457
Claims incurred -3,143 -3,162
Operating expenses -566 -745
Other insurance technical income and expense -1 0
Allocated investment return transferred from the non-technical account 23 37
Technical result 657 588
Net investment income account 325 378
Allocated investment return transferred to the technical account -60 -82
Other income and expense 38 47
Operating result 960 931
Specification of activity-based operating expenses included in the income statement
EURm 2015 2014
Claims-adjustment expenses (Claims paid) -249 -260
Acquisition expenses (Operating expenses) -497 -499
Joint administrative expenses for insurance business (Operating expenses) -78 -246
Administrative expenses pertaining to other technical operations (Operating expenses) -71 -27
Asset management costs (Investment expenses) -19 -14
Total -914 -1,046
8 Performance analysis per class of P&C insurance
EURm Accident and health Motor, third party liability Motor, other classes Marine, air and transport Fire and other damage to property Third party liability Credit insurance
Premiums written, gross
2015 754 635 1,294 125 1,296 202 2
2014 774 657 1,309 130 1,317 212 2
Premiums earned, gross
2015 740 636 1,266 123 1,299 204 2
2014 769 664 1,288 130 1,330 211 3
Claims incurred, gross 1)
2015 -525 -581 -854 -83 -851 -132 -1
2014 -554 -523 -885 -86 -881 -84 -0
Operating expenses, gross 2)
2015 -133 -136 -184 -21 -210 -33 -0
2014 -133 -140 -192 -22 -213 -34 -0
Profit/loss from ceded reinsurance
2015 -9 -1 -1 -12 -76 -12 -
2014 -13 2 -2 -9 -83 -31 -
Technical result before investment return
2015 73 -83 226 7 162 28 1
2014 69 3 209 14 152 62 2
EURm Legal expenses Other Total direct insurance Reinsurance assumed Elimination Total
Premiums written, gross
2015 45 114 4,465 94 0 4,559
2014 41 112 4,555 84 -5 4,634
Premiums earned, gross
2015 44 111 4,424 96 -0 4,520
2014 41 111 4,547 89 -5 4,631
Claims incurred, gross 1)
2015 -27 -99 -3,153 -48 7 -3,194
2014 -29 -72 -3,115 -71 6 -3,180
Operating expenses, gross 2)
2015 -7 -16 -740 -17 135 -622
2014 -7 -16 -756 -15 13 -758
Profit/loss from ceded reinsurance
2015 - -7 -117 6 0 -112
2014 - -8 -144 -4 5 -143
Technical result before investment return
2015 9 -10 414 37 142 592
2014 6 15 533 -1 19 551
1) Activity-based operating costs EURm 249 (260) have been allocated to claims incurred.
2) Includes other technical income EURm 28 (27) and other technical expenses EURm 28 (27).
9 Earnings per share
EURm 2015 2014
Earnings per share
Profit or loss attributable to the equity holders of the parent company 1,656 1,540
Weighted average number of shares outstanding during the period 560 560
Earnings per share (EUR per share) 2.96 2.75
10 Financial assets and liabilities
Financial assets and liabilities have been categorised in accordance with IAS 39.9. In the table are also included interest income and expenses, realised and unrealised gains and losses recognised in P/L, impairment losses and dividend income arising from those assets and liabilities. The financial assets in the table include balance sheet items Financial assets and Cash and cash equivalents.
2015
EURm Carrying amount Interest inc./exp. Gains/
losses		 Impairment losses Dividend income
FINANCIAL ASSETS
Financial assets at fair value through p/l
Derivative financial instruments 53 -9 -79 - -
Financial assets designated as at fair value through p/l 48 1 2 - 0
Loans and receivables 2,129 20 44 - -
Financial assets available-for-sale 16,955 295 382 -20 159
Financial assets, group total 19,185 307 350 -20 160
FINANCIAL LIABILITIES
Financial liabilities at fair value through p/l
Derivative financial instruments 63 - -
Other financial liabilities 2,312 -59 -8
Financial liabilities, group total 2,375 -59 -8
2014
EURm Carrying amount Interest inc./exp. Gains/
losses		 Impairment losses Dividend income
FINANCIAL ASSETS
Financial assets at fair value through p/l
Derivative financial instruments 79 -2 - -
Financial assets designated as at fair value through p/l 48 1 1 - 0
Loans and receivables 2,340 23 38 - -
Financial assets available-for-sale 16,537 345 317 -62 135
Financial assets, group total 19,004 366 356 -62 135
FINANCIAL LIABILITIES
Financial liabilities at fair value through p/l
Derivative financial instruments 120 - -
Other financial liabilities 2,302 -53 24
Financial liabilities, group total 2,423 -53 24
11 Property, plant and equipment
P&C insurance
EURm 2015
Equipment		 2014
Equipment
At 1 Jan.
Cost 63 64
Accumulated depreciation -46 -48
Net carrying amount 16 16
At 31 Dec.
Cost 65 63
Accumulated depreciation -47 -46
Net carrying amount 19 16
Life insurance
2015 2014
EURm Land and buildings Equipment Total Land and buildings Equipment Total
At 1 Jan.
Cost 4 8 12 4 8 12
Accumulated depreciation -1 -7 -7 -1 -6 -6
Net carrying amount 4 1 5 4 2 5
At 31 Dec.
Cost 4 8 12 4 8 12
Accumulated depreciation -1 -7 -8 -1 -6 -7
Net carrying amount 4 1 5 4 1 5
Holding
2015 2014
EURm Land and buildings Equipment Total Land and buildings Equipment Total
At 1 Jan.
Cost 2 5 7 2 5 7
Accumulated depreciation -1 -3 -4 -1 -2 -3
Net carrying amount 1 2 3 1 3 4
At 31 Dec.
Cost 2 4 6 2 5 7
Accumulated depreciation -1 -2 -3 -1 -3 -4
Net carrying amount 1 2 3 1 2 3
EURm 2015 2014
Group, total 26 24
Equipment in different segments comprise IT equipment and furniture.
12 Investment property
P&C insurance
EURm 2015 2014
At 1 Jan.
Cost 29 29
Accumulated depreciation -8 -7
Accumulated impairment losses -1 -0
Net carrying amount 20 22
Opening net carrying amount 20 22
Additions -4 0
Disposals -1 -1
Depreciation -1 -1
Impairment losses - 0
Reversal of impairment losses -0 -1
Exchange differences - 0
Closing net carrying amount 15 20
At 31 Dec.
Cost 25 29
Accumulated depreciation -8 -8
Accumulated impairment losses -2 -1
Net carrying amount 15 20
Rental income from investment property 2 2
Property rented out under operating lease
Non-cancellable minimum rental
- not later than one year 1 1
- later than one year and not later than five years 1 1
- later than five years - 0
Total 2 2
Expenses arising from investment property
- direct operating expenses arising from investment property generating rental income during the period -1 -1
- direct operating expenses arising from investment property not generating rental income during the period -1 -1
Total -2 -2
Fair value of investment property at 31 Dec. 22 22
Life insurance
EURm 2015 2014
At 1 Jan.
Cost 247 172
Accumulated depreciation -51 -48
Accumulated impairment losses -17 -17
Net carrying amount 179 107
Opening net carrying amount 179 107
Additions 27 74
Disposals -17 -0
Depreciation -4 -3
Impairment losses -6 -0
Closing net carrying amount 180 179
At 31 Dec.
Cost 257 247
Accumulated depreciation -55 -51
Accumulated impairment losses -23 -17
Net carrying amount 180 179
Rental income from investment property 21 17
Property rented out under operating lease
Non-cancellable minimum rental
- not later than one year 9 10
- later than one year and not later than five years 6 6
- later than five years 0 0
Total 14 17
Expenses arising from investment property
- direct operating expenses arising from investment property generating rental income during the period -9 -8
- direct operating expenses arising from investment property not generating rental income during the period -1 -1
Total -10 -10
Fair value of investment property at 31 Dec. 203 196
Elimination items between segments -4 -4
EURm 2015 2014
Group, total 191 195
Fair values for the Group's investment property are entirely determined by the Group based on the market evidence. The determination and hierarchy of financial assets and liabilities at fair value is disclosed in note 17. Based on the principles of this determination, the investment property falls under level 2.
The premises in investment property for different segments are leased on market-based, irrevocable contracts. The lengths of the contracts vary from those for the time being to those for several years.
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.
14 Investments in associates
Associates that have been accounted for by the equity method at 31 Dec. 2015
EURm

Name		 Domicile Carrying amount Fair value*) Interest held %
Nordea Bank Abp Sweden 7,305 8,735 21.25
Topdanmark A/S Denmark 362 827 32.90
Autovahinkokeskus Oy Finland 3 35.54
CAP Group AB Sweden 2 21.98
Urzus Group AS Norway 1 28.57
Svithun Assuranse AS (Norway) Norway 1 33.00
Watercircles Skandinavia AS (Norway) Norway 3 35.75
Contemi Holding AS Norway 1 28.57
Associates that have been accounted for by the equity method at 31 Dec. 2014
EURm

Name		 Domicile Carrying amount Fair value*) Interest held %
Nordea Bank Abp Sweden 7,305 8,325 21.25
Topdanmark A/S Denmark 371 846 30.41
Autovahinkokeskus Oy Finland 3 35.54
CAP Group AB Sweden 2 21.98
Urzus Group AS Norway 2 28.57
Svithun Assuranse AS (Norway) Norway 1 33.00
Watercircles Skandinavia AS (Norway) Norway 3 39.57
Contemi Holding AS Norway 0 28.57
*) Published price quatation
Changes in investments in associates
2015 2014
EURm Nordea Other associates Total Nordea Other associates Total
At beginning of year 7,065 382 7,447 6,906 375 7,282
Share of loss/profit 751 42 793 680 54 735
Additions - 1 1 - - 0
Disposals -533 -1 -534 -370 -0 -370
Changes in the equity of associates 23 -51 -28 -151 -47 -198
Exchange differences - -0 -0 - -1 -1
At end of year 7,305 374 7,679 7,065 382 7,447
At 31 Dec. 2015, the carrying amount of investments in associates included goodwill EURm 1,101 (1,101), including goodwill from the Nordea acquisition EURm 978 (978).
Sampo's holding in Nordea
Nordea is an universal bank with positions within corporate merchant banking as well as retail banking and private banking. With approximately 1,400 branches, call centers in all Nordic countries and an e-bank, Nordea also has a large distribution network for customers in the Nordic and Baltic sea region.
Financial information on Nordea
EURm 2015 2014
Assets 646,868 669,342
Liabilities 615,836 639,505
Revenue 10,140 10,241
Other comprehensive income items 13 -1,042
Comprehensive income statement 3,675 2,290
Dividend income from the associate during the financial year 533 370
Sampo's share of Nordea's loss/profit consists of the following as of 31 Dec. 2015:
EURm 2015 2014
Share of loss/profit of the associate 778 708
Amortisation of the customer rlations -35 -35
Change in deferred tax 8 8
Share of the loss/profit of an associate 751 680
15 Financial assets
Group's financial assets comprise investments in derivatives, financial assets designated as at fair value through p/l, loans and receivables, available-for-sale financial assets and investments in subsidiaries. The Holding segment includes also investments in subsidiaries.
The Group uses derivative instruments for trading and for hedging purposes. The derivatives used are foreign exchange, interest rate and equity derivatives. Fair value hedging has been applied during the financial year both in P&C and Life insurance.
EURm 2015 2014
P&C insurance
Derivative financial instruments 21 42
Loans and receivables 108 238
Financial assets available-for-sale 10,437 10,741
P&C insurance, total 10,566 11,021
Life insurance
Derivative financial instruments 11 3
Financial assets designated as at fair value through p/l 48 48
Loans and receivables 24 27
Financial assets available-for-sale 5,956 5,587
Life insurance, total 6,039 5,665
Holding
Derivative financial instruments 21 34
Loans and receivables 1 1
Financial assets available-for-sale 852 555
Investments in subsidiaries 2,370 2,370
Holding, total 3,243 2,959
Elimination items between segments -2,659 -2,715
Group, total 17,189 16,930
P&C insurance
Derivative financial instruments
2015 2014
Contract/ Fair value Contract/ Fair value
EURm notional amount Assets Liabilities notional amount Assets Liabilities
Derivatives held for trading
Interest rate derivatives
OTC derivatives
Intrerest rate swaps 2,069 0 2 68 - -2
Exchange traded derivatives
Interest rate futures - - - 85 - -1
Total interest rate derivatives 2,069 0 2 153 0 -3
Foreign exchange derivatives
OTC derivatives
Currency forwards 2,777 19 15 2,714 41 20
Currency options, bought and sold 101 1 0 294 2 1
Total foreign exchange derivatives 2,878 21 15 3,008 42 21
Total derivatives held for trading 4,948 21 17 3,162 42 18
Other financial assets
EURm 2015 2014
Loans and receivables
Deposits with ceding undertakings 1 1
Other 108 237
Total loans and receivables 108 238
Financial assets available-for-sale
Debt securities
Issued by public bodies 1,392 1,606
Certificates of deposit issued by banks 3,120 3,031
Other debt securities 4,404 4,551
Total debt securities 8,916 9,188
Equity securities
Listed 1,497 1,365
Unlisted 25 188
Total 1,522 1,553
Total financial assets available-for-sale 10,437 10,741
Financial assets available-for-sale for P&C insurance include impairment losses EURm 197 (243).
P&C insurance, total financial assets 10,566 11,021
Life insurance
Derivative financial instruments
2015 2014
Contract/ Fair value Contract/ Fair value
EURm notional amount Assets Liabilities notional amount Assets Liabilities
Derivatives held for trading
Interest rate derivatives
OTC derivatives
Interest rate swaps 4,618 0 1 1,443 - 19
Credit risk swaps 643 - 0 577 - 1
Total 5,261 - 2 2,019 0 20
Foreign exchange derivatives
OTC derivatives
Currency forwards 1,633 8 22 1,184 1 14
Currency options, bought and sold 156 1 1 193 2 1
Total foreign exchange derivatives 1,789 9 22 1,377 3 15
Equity derivatives
OTC derivatives
Equity and equity index options - - - 1 0 0
Total derivatives held for trading 7,050 9 24 3,398 3 35
Derivatives held for hedging
Fair value hedges
Currency forwards 602 2 9 583 0 50
Interest rate swaps - - -
Total 602 2 9 583 0 50
Total derivatives held for hedging 602 2 9 583 0 50
Total derivatives 7,651 11 33 3,981 3 86
Fair value hedges
Fair value hedging is used to hedge a proportion of foreign exchange and interest risk in available-for-sale financial assets. The interest elements of forward contracts have been excluded from hedging relationships in foreign exchange hedges. Net result from exchange derivatives designated as fair value hedges amounted to EURm -69 (-74). Net result from hedged risks in fair value hedges of available for sale financial assets amounted to EURm 68 (74).
Other financial assets
EURm 2015 2014
Financial assets designated as at fair value through p/l
Debt securities
Issued by public bodies 13 1
Issued by banks 10 4
Other debt securities 23 43
Total debt securities 47 47
Listed equity securities 2 2
Total financial assets designated as at fair value through p/l 48 48
Loans and receivables
Loans 24 27
Financial assets available-for-sale
Debt securities
Issued by public bodies 30 388
Issued by banks 488 889
Other debt securities 2,896 1,619
Total debt securities 3,414 2,895
Equity securities
Listed 1,669 1,852
Unlisted 873 839
Total 2,542 2,691
Total financial assets available-for-sale 5,956 5,587
Financial assets available-for-sale for life insurance include impairment losses EURm 19 (41).
Life insurance, total financial assets 6,039 5,695
Financial assets available for sale / debt securities: Debt securities available for sale include EURm 3,334 (1,963) investments in bonds and EURm 95 (932) investments in money market instruments.
Financial assets available for sale / shares and participations: Listed equity securities include EURm 831 (632) listed equities. Unlisted equity securities include EURm 768 (708) investments in capital trusts.
Holding
Derivative financial instruments
2015 2014
Contract/ Fair value Contract/ Fair value
EURm notional amount Assets Liabilities notional amount Assets Liabilities
Derivatives held for trading
Interest derivatives
OTC-derivatives
Interest rate swaps 800 10 - 800 23 -
Foreign exchange derivatives
OTC-derivatives
Currency forwards 74 1 2 3 1 0
Equity derivatives
Exchange traded derivatives
Equity and equity index options 60 10 10 69 10 11
Total derivatives 933 21 12 872 34 11
Other financial assets
EURm 2015 2014
Loans and receivables
Deposits 1 1
Financial assets available-for-sale
Debt securities
Certificates of deposit issued by banks 196 110
Other debt securities 407 360
Total debt securities 603 470
Equity securities
Listed 228 41
Unlisted 20 45
Total 248 85
Total financial assets available-for-sale 852 555
Financial assets available-for-sale for Holding business do not include impairment losses.
Investments in subsidiaries 2,370 2,370
Holding, total financial assets 3,243 2,959
Elimination items between segments -2,659 -2,715
EURm 2015 2014
Group, total 17,188 16,960
16 Fair values
2015 2014
EURm Fair value Carrying amount Fair value Carrying amount
Financial assets, group
Financial assets 17,192 17,189 16,933 16,930
Investments related to unit-linked contracts 5,847 5,847 5,259 5,259
Other assets 28 28 79 79
Cash and cash equivalents 1,997 1,997 2,071 2,074
Total 25,064 25,060 24,343 24,342
Financial liablities, group
Financial liabilities 2,424 2,375 2,517 2,423
Other liabilities 64 64 90 90
Total 2,488 2,439 2,607 2,513
In the table above are presented fair values and carrying amounts of financial assets and liabilities. The detailed measurement bases of financial assets and liabilities are disclosed in Group Accounting policies.
The fair value of investment securities is assessed using quoted prices in active markets. If published price quotations are not available, the fair value is assessed using discounting method. Values for the discount rates are taken from the market’s yield curve.
The fair value of the derivative instruments is assessed using quoted market prices in active markets, discounting method or option pricing models.
The fair value of loans and other financial instruments which have no quoted price in active markets is based on discounted cash flows, using quoted market rates. The market’s yield curve is adjusted by other components of the instrument, e.g. by credit risk.
The fair value for short-term non-interest-bearing receivables and payables is their carrying amount.
Disclosed fair values are "clean" fair values, i.e. less interest accruals.
17 Determination and hierarchy of fair values
A large majority of Sampo Group's financial assets are valued at fair value. The valuation is based on either published price quatations or valuation techniques based on market observable inputs, where available. For a limited amount of assets the value needs to be determined using other techniques. The financial instruments measured at fair value have been classified into three hierarchy levels in the notes, depending on e.g. if the market for the instrument is active, or if the inputs used in the valuation technique are observable.

On level 1, the measurement of the instrument is based on quoted prices in active markets for identical assets or liabilities.

On level 2, inputs for the measurement of the instrument include also other than quoted prices observable for the asset or liability, either directly or indirectly by using valuation techniques.

On level 3, the measurement is based on other inputs rather than observable market data.
EURm Level 1 Level 2 Level 3 Total
FINANCIAL ASSETS 31.12.2015
Derivative financial instruments
Interest rate swaps - 10 - 10
Other interest rate derivatives - - - 0
Foreign exchange derivatives - 33 - 33
Equity derivatives - 10 - 10
- 53 - 53
Financial assets designated at fair value through profit or loss
Equity securities 2 - - 2
Debt securities 18 29 0 47
20 29 0 48
Financial assets related to unit-linked insurance
Equity securities 616 7 17 639
Debt securities 751 453 27 1,231
Derivative financial instruments 2,720 987 46 3,753
Mutual funds - 7 - 7
4,087 1,454 89 5,630
Financial assets available-for-sale
Equity securities 2,129 - 46 2,175
Debt securities 9,227 3,327 89 12,643
Mutual funds 1,296 39 801 2,136
12,652 3,366 936 16,954
Total financial assests measured at fair value 16,759 4,901 1,026 22,686
FINANCIAL LIABILITIES 31.12.2015
Derivative financial instruments
Interest rate derivatives - 4 - 4
Foreign exchange derivatives - 48 - 48
Equity derivatives - 10 - 10
Total financial liabilities measured at fair value - 63 - 63
EURm Level 1 Level 2 Level 3 Total
FINANCIAL ASSETS 31.12.2014
Derivative financial instruments
Interest rate swaps - 24 - 24
Foreign exchange derivatives - 46 - 46
Equity derivatives - 10 - 10
- 79 - 79
Financial assets designated at fair value through profit or loss
Equity securities 2 - - 2
Debt securities 19 27 - 47
21 27 - 48
Financial assets related to unit-linked insurance
Equity securities 449 8 16 472
Debt securities 543 645 24 1,212
Derivative financial instruments 2,464 896 57 3,417
Mutual funds - 9 - 9
3,456 1,558 96 5,110
Financial assets available-for-sale
Equity securities 1,658 - 228 1,887
Debt securities 8,086 4,037 77 12,200
Mutual funds 1,595 106 748 2,450
11,340 4,143 1,054 16,537
Total financial assests measured at fair value 14,817 5,808 1,150 21,775
FINANCIAL LIABILITIES 31.12.2014
Derivative financial instruments
Interest rate derivatives 2 21 - 23
Foreign exchange derivatives - 87 - 87
Equity derivatives - 11 - 11
Total financial liabilities measured at fair value 2 118 - 120
Transfers between levels 1 and 2
During the last quarter 2014, the Group started to utilise the BVAL Score information for level determination. Most of the classifiation changes in the table result from this.
2015 2014
Transfers from level 2 to level 1 Transfers from level 1 to level 2 Transfers from level 2 to level 1 Transfers from level 1 to level 2
Financial assets designated at fair value through profit or loss
Debt securities - - 19 -
Financial assets related to unit-linked insurance
Equity securities - - 68 -
Debt securities 324 4 368 -
Financial assets available-for-sale
Debt securities 339 257 5439 -
Sensitivity analysis of fair values
The sensitivity of financial assets and liabilites to changes in exchange rates is assessed on business area level due to differenct base currencies. In P&C insurance, 10 percentage point depreciation of all other currencies against SEK would result in an increase recognised in profit/loss of EURm 9 (30) and in a decrease recognised directly in equity of EURm 3 (13). In Life insurance, 10 percentage point depreciation of all other currencies against EUR would result in an increase recognised in profit/loss of EURm 23 (35) and in a decrease recognised directly in equity of EURm 79 (94). In Holding, 10 percentage point depreciation of all other currencies against EUR would have no impact in profit/loss, but a decrease recognised in equity of EURm 68 (71).
The sensitivity analysis of the Group's fair values of financial assets and liabilities in differenct market risk scenarios is presented below. The effects represent the instantaneous effects of a one-off change in the underlying market variable on the fair values on 31 Dec. 2015.
The sensitivity analysis includes the effects of derivative positions. All sensitivities are calculated before taxes.
The debt issued by Sampo plc is not included.
Interest rate Equity Other financial investments
1% parallel shift down 1% parallel shift up 20% fall in prices 20% fall in prices
Effect recognised in profit/loss 65 -61 - -5
Effect recognised directly in equity 222 -204 -690 -209
Total effect 287 -265 -690 -213
18 Movements in level 3 financial instruments measured at fair value
EURm At Jan. 2015 Total gains/losses in income statement Total gains/losses recorded in other comprehensive income Purchases Sales Transfers between levels 1 and 2 At 31 Dec. 2015 Gains/losses included in p/l for financial assets 31 Dec. 2015
FINANCIAL ASSETS 2015
Financial assets related to unit-linked insurance
Equity securities 16 2 - 3 -4 - 17 1
Debt securities 24 -0 - 0 -0 3 27 -0
Mutual funds 57 2 11 -23 - 46 2
96 3 - 14 -27 3 89 3
Financial assets available-for-sale
Equity securities 228 14 -2 0 -194 - 46 2
Debt securities 78 9 -0 90 -86 - 90 -0
Mutual funds 748 25 13 174 -159 - 801 7
1,054 48 10 264 -440 - 936 9
Total financial assests measured at fair value 1,150 51 10 278 -467 3 1,026 12
2015
EURm Realised gains Fair value gains and losses Total
Total gains or losses included in profit or loss for the financial year 51 6 57
Total gains or losses included in profit and loss for assets held at the end of the financial year 6 6 12
EURm At Jan. 2014 Total gains/losses in income statement Total gains/losses recorded in other comprehensive income Purchases Sales Transfers between levels 1 and 2 At 31 Dec. 2014 Gains/losses included in p/l for financial assets 31 Dec. 2014
FINANCIAL ASSETS 2014
Financial assets related to unit-linked insurance
Equity securities 14 2 - 3 -3 - 16 1
Debt securities 19 -1 - 18 -1 -10 24 0
Mutual funds 64 0 - 30 -20 -18 57 1
97 1 - 51 -24 -28 96 2
Financial assets available-for-sale
Equity securities 243 11 1 30 -23 -33 228 -1
Debt securities 39 2 2 10 -6 30 78 2
Mutual funds 720 29 46 215 -262 - 748 62
1,002 42 49 255 -291 -3 1,054 64
Total financial assests measured at fair value 1,099 43 49 306 -316 -31 1,150 66
2014
EURm Realised gains Fair value gains and losses Total
Total gains or losses included in profit or loss for the financial year 43 56 99
Total gains or losses included in profit and loss for assets held at the end of the financial year 10 56 66
19 Sensitivity analysis of level 3 financial instruments measured at fair value
2015 2014
EURm Carrying amount Effect of reasonably possible alternative assumptions (+ / -) Carrying amount Effect of reasonably possible alternative assumptions (+ / -)
Financial assets
Financial assets available-for-sale
Equity securities 46 -9 228 -18
Debt securities 89 -2 77 -4
Mutual funds 801 -160 748 -148
Total 936 -171 1,054 -170
The value of financial assets regarding the debt security instruments has been tested by assuming a rise of 1 per cent unit in interest rate level in all maturities. For other financial assets, the prices were assumed to go down by 20%. The Sampo Group bears no investment risks relatted to unit-linked insurance, so a change in assumptions regarding these assets does not affect profit or loss. On the basis of the these alternative assumptions, a possible change in interest levels would cause descend of EURm 2 (4) for the debt instruments, and EURm 169 (166) valuation loss for other instruments in the Group's other comprehensive income. The reasonably possible effect, proportionate to the Group's equity, would thus be 1.5% (1.6).
20 Investments related to unit-linked insurance contracts
Life insurance
EURm 2015 2014
Financial assets designated at fair value through p/l
Debt securities
Issued by public bodies 49 64
Other debt securities 1,199 1,171
Total 1,248 1,234
Equity securities
Listed 4,328 3,768
Unlisted 64 121
Total 4,392 3,890
Total financial assets designated at fair value through p/l 217 149
Other 7 9
Investment related to unit-linked contracts, total 5,865 5,282
Elimination items between segments -18 -23
Group total 5,847 5,259
The historical cost of the equity securities related to unit-linked contracts was EURm 3,645 (3,248) and that of the debt securities EURm 1,305 (1,246).
21 Deferred tax assets and liabilities
Changes in deferred tax during the financial period 2015
EURm 1.1. Recognised in comprehensive income statement Recognised in equity Exchange differences 31.12.
Deferred tax assets
Tax losses carried forward 15 -0 - -0 15
Employee benefits 85 -50 -3 3 35
Other deductible temporary differences 8 -14 4 -1 -3
Total 107 -63 0 2 46
Netting of deferred taxes -12
Deferred tax assets in the balance sheet 35
Deferred tax liabilities
Depreciation differences and untaxed reserves 275 -21 - -3 251
Changes in fair values 231 4 -16 2 221
Other taxable temporary differences 19 12 -25 1 7
Total 526 -5 -41 -0 479
Netting of deferred taxes -12
Total deferred tax liabilities in the balance sheet 468
Changes in deferred tax during the financial period 2014
EURm 1.1. Recognised in comprehensive income statement Recognised in equity Exchange differences 31.12.
Deferred tax assets
Tax losses carried forward 15 0 - -0 15
Changes in fair values 66 -2 26 -5 85
Other deductible temporary differences -5 15 1 -2 8
Total 75 13 26 -7 107
Netting of deferred taxes -22
Deferred tax assets in the balance sheet 86
Deferred tax liabilities
Depreciation differences and untaxed reserves 294 -7 - -13 275
Changes in fair values 202 7 25 -3 231
Other taxable temporary differences 18 3 -0 -1 19
Total 514 3 25 -17 526
Netting of deferred taxes -22
Total deferred tax liabilities in the balance sheet 504
In Sampo plc, EURm 25 of deferred tax asset has not been recognised on unused tax losses. The first losses will expire in 2021.

In life insurance, EURm 3 of deferred tax asset has not been recognised on unused tax losses.
22 Taxes
EURm 2015 2014
Profit before tax 1,888 1,759
Tax calculated at parent company's tax rate -378 -352
Different tax rates on overseas earnings -25 -16
Income not subject to tax 2 3
Expenses not allowable for tax purposes -2 -3
Consolidation procedures and eliminations 168 149
Tax losses for which no deferred tax asset has been recognised 0 -1
Changes in tax rates 5 1
Tax from previous years -1 -1
Total -232 -220
23 Components of other comprehensive income
EURm 2015 2014
Other comprehensive income:
Items reclassifiable to profit or loss
Exchange differences -35 -174
Available-for-sale financial assets
Gains/losses arising during the year 257 212
Reclassification adjustments -353 -140
The share of the segretated Suomi portfolio -10 -
Share of associate's other comprehensive income 16 -168
Taxes 21 -15
Total items reclassifiable to profit or loss, net of tax -103 -285
Items not reclassifiable to profit or loss
Actuarial gains and losses from defined pension plans 14 -101
Taxes -3 26
Total items not reclassifiable to profit or loss, net of tax 11 -76
24 Tax effects relating to components of other comprehensive income
2015 2014
Before-tax amount Tax Net-of-tax amount Before-tax amount Tax Net-of-tax amount
Items reclassifiable to profit or loss
Exchange differences -35 - -35 -174 - -174
Available-for-sale financial assets -106 21 -85 72 -15 57
Share of associate's other comprehensive income 16 - 16 -168 - -168
Total -124 21 -103 -270 -15 -285
25 Other assets
P&C insurance
EURm 2015 2014
Interests 54 66
Assets arising from direct insurance operations 1,132 1,103
Assets arising from reinsurance operations 38 34
Settlement receivables 2 2
Deferred acquisition costs 1) 131 138
Assets related to Patient Insurance Pool 120 117
Other 62 73
P&C insurance, total 1,541 1,533
Other assets include non-current assets EURm 112 (122).
Item Other comprise rental deposits, salary and travel advancements and assets held for resale.
1) Change in deferred acquisition costs in the period
EURm 2015 2014
At 1 Jan. 138 159
Net change in the period -4 -14
Exchange differences -2 -7
At 31 Dec. 131 138
Life insurance
EURm 2015 2014
Interests 30 30
Receivables from policyholders 9 3
Assets arising from reinsurance operations -0 1
Settlement receivables 21 68
Assets pledged for trading in derivatives 19 72
Other 48 33
Life insurance, total 127 208
Item Other comprise e.g. pensions paid in advance and receivables from co-operation companies.
Holding
EURm 2015 2014
Interests 38 37
Settlement receivables 5 9
Other 8 4
Holding, total 51 50
Item Other includes e.g. asset management fee receivables.
Elimination items between segments -10 -11
EURm 2015 2014
Group, total 1,708 1,781
26 Cash and cash equivalents
P&C insurance
EURm 2015 2014
Cash at bank and in hand 368 281
Short-term deposits (max 3 months) 407 167
P&C insurance, total 775 448
Life insurance
EURm 2015 2014
Cash at bank and in hand 378 389
Short-term deposits (max 3 months) 104 469
Life insurance, total 482 858
Holding
EURm 2015 2014
Cash 739 501
Short-term deposits (max 3 months) - 266
Holding, total 739 768
Group, total 1,997 2,074
27 Liabilities from insurance and investment contracts
P&C insurance
Change in insurance liabilities
2015 2014
EURm Gross Ceded Net Gross Ceded Net
Provision for unearned premiums
At 1 Jan. 1,999 41 1,958 2,065 43 2,053
Exchange differences -20 1 -20 -69 1 -70
Change in provision 39 5 44 3 -3 6
At 31 Dec. 2,017 46 1,971 1,999 41 1,958
2015 2014
EURm Gross Ceded Net Gross Ceded Net
Provision for claims outstanding
At 1 Jan. 7,185 197 6,988 7,435 377 7,225
Disposed insurance holdings 38 - 38 45 - 45
Exchange differences -1 6 -8 -245 -2 -243
Change in provision 195 -10 205 -50 -178 128
At 31 Dec. 7,416 193 7,223 7,185 197 6,988
Liabilities from insurance contracts
EURm 2015 2014
Provision for unearned premiums 2,017 1,999
Provision for claims outstanding 7,416 7,185
Incurred and reported losses 1,657 1,609
Incurred but not reported losses (IBNR) 3,352 3,298
Provisions for claims-adjustment costs 269 269
Provisions for annuities and sickness benefits 2,138 2,009
P&C insurance total 9,433 9,183
Reinsurers' share
Provision for unearned premiums 46 41
Provision for claims outstanding 193 197
Incurred and reported losses 95 98
Incurred but not reported losses (IBNR) 98 98
Total reinsurers' share 239 237
As the P&C insurance is exposed to various exchange rates, comparing the balance sheet data from year to year can be misleading.
Claims cost trend of P&C insurance
The tables below show the cost trend for the claims for different years. The upper part of the tables shows how an estimate of the total claims costs per claims year evolves annually. The lower section shows how large a share of this is presented in the balance sheet. More information on P&C insurance's insurance liabilities in the Risk Management section of the Annual accounts.
Claims costs before reinsurance
Estimated claims cost
EURm < 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total
At the close of the claims year 12,216 2,494 2,558 2,681 2,681 2,789 2,877 2,924 2,818 2,803 2,831
One year later 12,182 2,473 2,554 2,638 2,632 2,831 2,988 2,911 2,848 2,796
Two years later 12,142 2,446 2,519 2,581 2,604 2,776 2,984 2,928 2,845
Three years later 12,081 2,445 2,487 2,554 2,565 2,775 2,972 2,917
Four years later 12,094 2,405 2,441 2,531 2,547 2,768 2,951
Five years later 12,127 2,357 2,417 2,518 2,524 2,770
Six years later 12,083 2,328 2,408 2,498 2,527
Seven years later 12,014 2,318 2,395 2,501
Eight years later 12,020 2,308 2,394
Nine years later 12,042 2,293
Ten years later 12,122
Current estimate of total claims costs 12,122 2,293 2,394 2,501 2,527 2,770 2,951 2,917 2,845 2,796 2,831 38,948
Total disbursed 9,370 2,043 2,153 2,249 2,254 2,470 2,602 2,508 2,378 2,188 1,585 31,800
Provision reported in the balance sheet 2,752 251 241 252 273 300 349 408 467 608 1,246 7,147
of which established vested annuities 1,490 85 82 72 62 78 72 70 74 45 8 2,138
Provision for claims-adjustment costs 269
Total provision reported in the BS 7,416
Claims costs after reinsurance
Estimated claims cost
EURm < 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total
At the close of the claims year 11,315 2,390 2,459 2,561 2,567 2,654 2,721 2,725 2,768 2,763 2,783
One year later 11,262 2,361 2,449 2,532 2,535 2,701 2,793 2,710 2,797 2,752
Two years later 11,216 2,334 2,422 2,478 2,505 2,659 2,781 2,726 2,796
Three years later 11,163 2,338 2,390 2,452 2,479 2,653 2,775 2,727
Four years later 11,132 2,301 2,347 2,433 2,462 2,649 2,751
Five years later 11,181 2,259 2,324 2,421 2,439 2,652
Six years later 11,152 2,232 2,317 2,403 2,442
Seven years later 11,098 2,223 2,304 2,406
Eight years later 11,107 2,214 2,303
Nine years later 11,139 2,182
Ten years later 11,225
Current estimate of total claims costs 11,225 2,182 2,303 2,406 2,442 2,652 2,751 2,727 2,796 2,752 2,783 37,019
Total disbursed 8,521 1,955 2,066 2,157 2,176 2,359 2,415 2,336 2,348 2,164 1,569 30,065
Provision reported in the balance sheet 2,704 227 237 249 266 294 336 391 449 588 1,214 6,954
of which established vested annuities 1,490 85 82 72 62 78 72 70 74 45 8 2,138
Provision for claims-adjustment costs 269
Total provision reported in the BS 7,223
Life insurance
Change in liabilities arising from other than unit-linked insurance and investment contracts
EURm Insurance contracts Investment contracts Total
At 1 Jan. 2015 5,058 4 5,062
Premiums 148 30 178
Claims paid -445 -0 -445
Expense charge -38 -0 -38
Guaranteed interest 153 0 153
Bonuses 0 - 0
Portfolio transfers 17 - 17
Other 85 1 86
At 31 Dec. 2015 4,978 36 5,014
Reinsurers' share -3 - -3
Net liability at 31 Dec. 2015 4,976 36 5,012
EURm Insurance contracts Investment contracts Total
At 1 Jan. 2014 3,924 4 3,928
Premiums 148 1 149
Claims paid -397 -0 -397
Expense charge -36 - -36
Guaranteed interest 131 - 131
Bonuses 0 - 0
Portfolio transfers 1,337 - 1,337
Other -48 -0 -48
At 31 Dec. 2014 5,061 4 5,065
Reinsurers' share -3 - -3
Net liability at 31 Dec. 2014 5,058 4 5,062
Change in liabilities arising from unit-linked insurance and investment contracts
EURm Insurance contracts Investment contracts Total
At 1 Jan. 2015 3,599 1,714 5,312
Premiums 575 394 969
Claims paid -198 -358 -556
Expense charge -44 -22 -66
Other 110 89 200
At 31 Dec. 2015 4,042 1,817 5,858
At 1 Jan. 2014 3,095 1,522 4,617
Premiums 513 448 961
Claims paid -191 -294 -485
Expense charge -39 -21 -60
Other 220 59 279
At 31 Dec. 2014 3,599 1,714 5,312
The liabilities at 1 Jan. and at 31 Dec. include the future bonus reserves and the effect of the reserve for the decreased discount rate. The calculation is based on items before reinsurers' share. A more detailed specification of changes in insurance liabilities is presented in Group's Risk Management.
EURm 2015 2014
Insurance contracts
Liabilities for contracts with discretionary participation feature (DPF)
Provision for unearned premiums 2,516 2,625
Provision for claims outstanding 2,461 2,434
Total 4,976 5,059
Assumed reinsurance
Provision for unearned premiums 1 1
Provision for claims outstanding 1 0
Total 2 2
Insurance contracts total
Provision for unearned premiums 2,517 2,626
Provision for claims outstanding 2,462 2,434
Total 4,978 5,061
Investment contracts
Liabilities for contracts with discretionary participation feature (DPF)
Provision for unearned premiums 36 4
Liabilities for insurance and investment contracts total
Provision for unearned premiums 2,552 2,631
Provision for claims outstanding 2,462 2,434
Life insurance total 5,014 5,065
Reinsurers' share
Provision for claims outstanding 3 -3
Investment contracts do not include a provision for claims outstanding.
Liability adequacy test does not give rise to supplementary claims.
Exemption allowed in IFRS 4 Insurance contracts has been applied to investment contracts with DPF or contracts with a right to trade-off for an investment contract with DPF. These investment contracts have been valued like insurance contracts.
EURm 2015 2014
Group, total 14,447 14,248
28 Liabilities from unit-linked insurance and investment contracts
Life insurance
EURm 2015 2014
Unit-linked insurance contracts 4,042 3,599
Unit-linked investment contracts 1,817 1,714
Total 5,858 5,312
Elimination items between segments -18 -23
EURm 2015 2014
Group, total 5,841 5,289
29 Financial liabilities
The segment financial liabilities include derivatives, debt securities and other financial liabilities.
P&C insurance
EURm 2015 2014
Derivative financial instruments (note 15) 17 24
Subordinated debt securities
Subordinated loans
Euro-denominated loans Maturity Interest
Preferred capital note, 2005 (nominal value EURm 150) perpetual 4.94% - 150
Preferred capital note, 2011 (nominal value EURm 110) 30 years 6.00% 109 109
Preferred capital note, 2013 (nominal value EURm 90) perpetual 4.70% 90 90
Total subordinated debt securities 199 349
P&C insurance, total financial liabilities 216 373
The loan 2005 was repaid in June 2015.
The loan 2011 was issued with fixed interest rates for the first ten years, after which it becomes subject to variable interest rates. The subordinated loan issued in 2013 has a fixed interest rate for the first 5.5 years afther which it becomes subject to variable interest rates. At the point of change, there is the possibility of redemption for all the loans. All loans and their terms are approved by supervisory authorities and the loans are utilised for solvency purposes.
The loan issued in 2011 is listed on the Luxembourg Exchange.
Life insurance
EURm 2015 2014
Derivative financial instruments (note 15) 33 86
Subordinated debt securities
Subordinated loans 100 100
Life insurance, total 133 186
Mandatum Life issued in 2002 EURm 100 Capital Notes. The loan is perpetual and pays floating rate interest. The interest is payable only from distributable capital. The loan is repayable only with the consent of the Insurance Supervisory Authority and at the earliest on 2012 or any interest payment date after that. The loans is wholly subscribed by Sampo Plc.
Holding
EURm 2015 2014
Derivative financial instruments (note 15) 12 11
Debt securities in issue
Commercial papers 305 305
Bonds *) 1,997 1,888
Total 2,302 2,192
Holding, total 2,314 2,203
*) The determination and hierarchy of financial assets and liabilities at fair value is disclosed in note 17. Based on the principles of this determination, the bonds of the Holding Company fall under level 2.
Elimination items between segments -289 -339
EURm 2015 2014
Group, total 2,375 2,423
30 Provisions
P&C insurance
EURm 2015
At 1 Jan. 2015 63
Exchange rate differences 1
Additions 12
Amounts used during the period -20
Unused amounts reversed during the period -5
At 31 Dec. 2015 51
Current (less than 1 year) 14
Non-current (more than 1 year) 37
Total 51
EURm 17 of the provision consist of assets reserved for the development of efficient administrative and claims-adjustment processes and structural changes in distribution channels result in organisational changes that affect all business areas. In addition, the item includes a provision of about EURm 30 for law suits and other uncertain liabilities.
31 Employee benefits
Employee benefits
Sampo has defined benefit plans in P&C insurance business in Sweden and Norway.
In addition to statutory retirement pension insurance, the Group has certain voluntary defined benefit plans. The voluntary defined benefit plans are intra-Group and included in the insurance liabilities of Mandatum Life. The amount is negligible and they have no material impact on the Group profit or loss or equity.
Employee benefit obligations of P&C Insurance 31 Dec.
EURm 2015 2014
Present value of estimated pension obligation, including social costs 303 664
Fair value of plan assets 213 399
Net pension obligation recognised in the balance sheet 90 265
Since January 1, 2008, the main Swedish pension plan has been closed to new employees born in 1972 or later and the corresponding Norwegian pension plan has been closed to new employees since January 1, 2006 regardless of age. In May 2015, If decided that all employees born in 1958 or later that are covered by the Norwegian defined-benefit pension plan would be switched to a defined-contribution plan as of January 1, 2016. As of the same date, it was also decided that existing retirees would no longer be covered by the plan, and that future retirees would cease being covered by the plan when they are no longer employed by If. Accordingly, as of year-end 2015, the Norwegian pension plan consists solely of active people employed prior to 2006 and born no later than 1957.
The pension benefits referred to are old-age pension and survivors’ pension in Sweden and old-age pension, survivors’ pension and disability pension in Norway. A common feature of all of the pension plans is that the employees and survivors encompassed by the plans are entitled to a guaranteed pension that depends on the employees’ service period and pensionable salary at the time of retirement. The dominating benefit is the old-age pension, which refers in part to temporary pension before the anticipated retirement age and in part to a life-long pension after the anticipated retirement age.
The retirement age for receiving premature pension is normally 62 years in Sweden and normally 65 years in Norway. In Sweden, premature old-age pension following a complete service period is payable at a rate of approximately 65% percent of the pensionable salary and applies to all employees born in 1955 or earlier and who were covered by the insurance sector’s collective bargaining agreement of 2006. In Norway, premature old-age pension following a complete service period is payable at a rate of approximately 70% percent of the pensionable salary and applies to all employees born in 1957 or earlier and who were employed by If in 2013.
The anticipated retirement age in connection with life-long pension is 65 years for Sweden and 67 years for Norway. In Sweden, life-long old-age pension following a complete service period is payable at a rate of approximately 10% of the pensionable salary between 0 and 7.5 income base amounts, 65% of salary between 7.5 and 20 income base amounts and 32.5% between 20 and 30 income base amounts. In Norway, life-long old-age pension following a complete service period is payable at a rate of approximately 70% of the pensionable salary up to 12 National Insurance base amounts, together with the estimated statutory old-age pension. Paid-up policies and pension payments from the Swedish plans are normally indexed upwards in an amount corresponding to the change in the consumer price index. However, there is no agreement guaranteeing the value and future supplements in addition to the contractual pension benefit could either rise of fall. Pension payments from the Norwegian plans are were earlier indexed upwards in an amount corresponding to 80 - 100% of the change in the consumer price index. Instead, as of January 1, 2016, a paid-up policy is issued on retirement, whereby If is no longer responsible for and has no obligation in respect of future indexation of the insured plans.
The pensions are primarily funded through insurance whereby the insurers establish the premiums and disburse the benefits. If’s obligation is primarily fulfilled through payment of the premiums. Should the assets that are attributable to the pension benefits not be sufficient to enable the insurers to cover the guaranteed pension benefits, If could be forced to pay supplementary insurance premiums or secure the pension obligations in some other way. In addition to insured pension plans, there are also unfunded pension benefits in Norway for which If is responsible for ongoing payment.
To cover the insured pension benefits, the related capital is managed as part of the insurers’ management portfolios. In such management, the characteristics of the investment assets are analyzed in relation to the characteristics of the obligations, in a process known as Asset Liability Management. New and existing asset categories are evaluated continuously in order to diversify the asset portfolios with a view to optimizing the anticipated risk-adjusted return. Any surplus that arises from management of the assets normally accrues to If and/or the insured and there is no form of transfer of the asset value to other members of the insurance collective.
The insurers and If are jointly responsible for monitoring the pension plans, including investment decisions and contributions. The pension plans are essentially exposed to similar material risks regarding the final amount of the benefits, the investment risk associated with the plan assets and the fact that the choice of discount interest rate affects their valuation in the financial statements.
When applying IAS 19, the pension obligations are calculated, as is the pension cost attributable to the fiscal period, using actuarial methods. Pension rights are considered to have been vested straight line during the service period. The calculation of pension obligations is based on future anticipated pension payments and includes assumptions regarding mortality, employee turnover and salary growth. The nominally calculated debt is discounted to the present value using an interest rate based on current market interest rates adjusted to take into account the duration of the company’s pension obligations. As a basis for determining the discount interest rate for the Swedish obligation, If uses liquid covered mortgage bonds issued by a mortgage institution. Covered mortgage bonds are also used for the Norwegian obligation. After a deduction for the plan assets, a net asset or net liability is recognised in the balance sheet.
The following tables contain a number of material assumptions, specifications of pension costs, assets and liabilities and a sensitivity analysis showing the potential effect on the obligations of reasonable changes in those assumptions as at the end of the fiscal year. As apparent from the tables, the said amendments to the insured plan in Norway have been taken into account when preparing the annual accounts for 2015 and had a material impact on both recognized costs and assets and obligations.
The carrying amounts have been stated including special payroll tax in Sweden (24.26%) and a corresponding fee in Norway (14.1%).
Specification of employee benefit obligations by country
2015 2014
Sweden Norway Total Sweden Norway Total
Recognised in income statement and other comprehensive income
Current service cost 6 9 15 -5 -11 -16
Past service cost 0 -156 -156 -1 - -1
Interest expense on net pension liability 1 3 4 -1 -6 -7
Total in income statement 7 -144 -137 -7 -17 -24
Remeasurement of the net pension liability -9 -4 -14 -34 -71 -105
Total in comprehensive income statement -2 -148 -150 -40 -88 -129
Recognised in balance sheet
Present value of estimated pension liability, including social costs 196 107 303 194 470 664
Fair value of plan assets 156 57 213 140 259 399
Net liability recognised in balance sheet 40 49 90 55 211 265
2015 2014
Distribution by asset class Sweden Norway Sweden Norway
Debt instruments, level 1 39% 50% 40% 52%
Debt instruments, level 2 1% 13% 1% 13%
Equity instruments, level 1 26% 5% 28% 9%
Equity instruments, level 3 10% 3% 8% 3%
Property, level 3 10% 12% 10% 9%
Other, level 1 4% 14% 3% 10%
Other, level 2 6% 3% 6% 4%
Other, level 3 4% 0 % 4% 0 %
The following actuarial assumptions have been used for the calculation of defined benefit pension plans in Norway and Sweden:
Sweden Sweden Norway Norway
31.12.2015 31.12.2014 31.12.2015 31.12.2014
Discount rate 3.00% 2.75% 2.50% 2.75%
Future salary increases 2.75% 2.75% 3.00% 3.50%
Price inflation 1.75% 1.75% 2.00% 2.00%
Mortality table FFFS 2007:31 +1 year FFFS 2007:31 +1 year K2013 K2013
Average duration of pension liabilities 21 years 22 years 14 years 17 years
Expected contributions to the defined benefit plans during 2015 and 2016 10 8 4 15
2015 2014
Sensitivity analysis of effect of reasonably possible changes Sweden Norway Total Sweden Norway Total
Discount rate, +0,50% -23 -7 -30 -23 -40 -63
Discount rate, -0,50% 27 8 35 27 45 71
Future salary increases, +0,25% 8 1 9 8 8 16
Future salary increases, -0,25% -7 -1 -9 -7 -8 -15
Expected longevity, +1 year 7 2 10 7 15 22
2015 2014
EURm Funded plans Unfunded plans Total Funded plans Unfunded plans Total
Analysis of the employee benefit obligation
Present value of estimated pension liability, including social costs 267 36 303 620 44 664
Fair value of plan assets 213 - 213 399 - 399
Net pension liability recognised in the balance sheet 54 36 90 222 44 265
Analysis of the change in net liability recognised in the balance sheet
EURm 2015 2014
Pension liabilities:
At the beginning of the year 664 580
Earned during the financial year 15 16
Costs pertaining to prior-year service -156 1
Interest cost 15 23
Actuarial gains (-)/losses (+) on financial assumptions 4 123
Actuarial gains (-)/losses (+), experience adjustments -14 -3
Exchange differences on foreign plans -7 -48
Benefits paid -25 -27
Settlements -194 -
Defined benefit plans at 31 Dec. 303 664
Reconciliation of plan assets:
At the beginning of the year 399 385
Interest income 11 15
Difference between actual return and calculated interest income 4 15
Contributions paid 26 29
Exchange differences on foreign plans -10 -29
Benefits paid -16 -17
Settlements -200 -
Plan assets at 31 Dec. 213 399
Other short-term employee benefits
There are other short-term staff incentive programmes in the Group, the terms of which vary according to country, business area or company. Benefits are recognised in the profit or loss for the year they arise from. An estimated amount of these short-term incentives, social security costs included, for 2015 is EURm 72.
32 Other liabilities
P&C insurance
EURm 2015 2014
Liabilities arising out of direct insurance operations 163 155
Liabilities arising out of reinsurance operations 30 37
Liabilities related to Patient Insurance Pool 115 115
Premium taxes 49 48
Tax liabilities 91 85
Prepayments and accrued income 181 27
Other 39 236
P&C insurance, total 669 702
The non-current share of other liabilities is EURm 108 (102).
Item Other includes e.g. witholding taxes, social expenses related to Workers Compensation insurance policies and employee benefits, unpaid premium taxes and other accruals.
Life insurance
EURm 2015 2014
Interests 10 8
Tax liabilities 5 23
Liabilities arising out of direct insurance operations 21 7
Liabilities arising out of reinsurance operations 4 4
Settlement liabilities 61 90
Guarantees received 0 35
Other liabilities 66 43
Life insurance, total 167 209
Item Guarantees received comprise assets accepted as guarantees required in derivative trading and securities lending.
Item Other includes e.g. liabilities arising from withholding taxes and social security costs, liabilities to creditors and insurance premium advances.
Holding
EURm 2015 2014
Interests 34 34
Guarantees for trading in derivatives 38 47
Liability for dividend distribution 35 30
Other 26 24
Holding, total 133 134
Item Other includes e.g. reservations for share-based incentive programmes and other incentive salaries.
Elimination items between segments -11 -11
EURm 2015 2014
Group, total 957 1,035
33 Contingent liabilities and commitments
P&C insurance
EURm 2015 2014
Off-balance sheet items
Guarantees 5 7
Other irrevocable commitments 15 10
Total 20 17
Assets pledged as collateral for liabilities or contingent liabilities
2015 2014
EURm Assets pledged Liabilities/ commitments Assets pledged Liabilities/ commitments
Assets pledged as collateral
Cash at balances at central banks 0 0 0 1
Investments
- Investment securities 242 159 238 136
Total 242 160 239 137
EURm 2015 2014
Assets pledged as security for derivative contracts, carrying value
Investment securities 0 25
The pledged assets are included in the balance sheet item Other assets.
EURm 2015 2014
Commitments for non-cancellable operating leases
Minimum lease payments
not later than one year 32 31
later than one year and not later than five years 98 93
later than five years 48 59
Total 178 183
Lease and sublease payments recognised as an expense in the period
- minimum lease payments -20 -22
The subsidiary If P&C Insurance Ltd provides insurance with mutual undertakings within the Nordic Nuclear Insurance Pool, Norwegian Natural Perils’ Pool and the Dutch Terror Pool.
In connection with the transfer of property and casualty insurance business from the Skandia group to the If Group as of March 1, 1999, If P&C Holding Ltd and If P&C Insurance Ltd issued a guarantee for the benefit of Försäkringsaktiebolaget Skandia (publ.) whereby the aforementioned companies in the If Group mutually guarantee that companies in the Skandia group will be indemnified against any claims or actions due to guarantees or similar commitments made by companies in the Skandia group within the property and casualty insurance business transferred to the If Group.
If P&C Insurance Holding Ltd and If P&C Insurance Ltd have separately entered into contracts with Försäkringsaktiebolaget Skandia (publ.) and Tryg-Baltica Forsikrings AS whereby Skandia and Tryg-Baltica will be indemnified against any claims attributable to guarantees issued by Försäkringsaktiebolaget Skandia (publ.) and Vesta Forsikring AS, on behalf of Skandia Marine Insurance Company (U.K.) Ltd. (now Marlon Insurance Company Ltd.) in favor of the Institute of London Underwriters. Marlon Insurance Company Ltd. was disposed during 2007, and the purchaser issued a guarantee in favour of If for the full amount that If may be required to pay under these guarantees.
If P&C Insurance Company Ltd has outstanding commitments to private equity funds totalling EURm 15, which is the maximum amount that the company has committed to invest in the funds. Capital will be called to these funds over several years as the funds make investments.
With respect to certain IT systems If and Sampo use jointly, If P&C Insurance Holding Ltd has undertaken to indemnify Sampo for any costs caused by It that Sampo may incur in relation to the owners of the systems.
Life insurance
EURm 2015 2014
Off-balance sheet items
Investment commitments 397 384
Acquisition of IT-software 1 2
Total 398 386
EURm 2015 2014
Assets pledged as security for derivative contracts, carrying value
Cash and cash equivalents 19 72
The pledged assets are included in the balance sheet item Other assets.
Lended securities
Domestic shares
Remaining acquisition cost - 23
Fair value - 19
Security lendings can be interrupted at any time and they are secured.
EURm 2015 2014
Commitments for non-cancellable operating leases
Minimum lease payments
not later than one year 2 2
later than one year and not later than five years 8 9
later than five years 7 8
Total 18 19
Lease and sublease payments recognised as an expense in the period
- minimum lease payments -4 -4
- sublease payments 0 0
Total -4 -3
Holding
EURm 2015 2014
Commitments for non-cancellable operating leases
Minimum lease payments
not later than one year 1 1
later than one year and not later than five years 0 1
Total 1 2
The Group had at the end of 2015 premises a total of 171,254 m2 (171,598) taken as a lessee. The contracts have been made mainly for 3 to 10 years.
34 Equity and reserves
Equity
The number of Sampo plc’s shares at the end of the financial year was 560,000,000, of which 558,000,000 were A-shares and 1,200,000 B-shares. There was no change in the company's share capital of EURm 98 during the financial year.

At the end of the financial year, the mother company or other Group companies held no shares in the parent company.
Reserves and retained earnings
Legal reserve
The legal reserve comprises the amounts to be transferred from the distributable equity according to the articles of association or on the basis of the decision of the AGM.
Invested unrestricted equity
The reserve includes other investments of equity nature, as well as issue price of shares to an extent it is not recorded in share capital by an express decision.
Other components of equity
Other components of equity include fair value changes of financial assets available for sale and derivatives used in cash flow hedges, and exchange differences. Changes in the reserves and retained earnings are presented in the Group's statement of changes in equity.
35 Related party disclosures
Key management personnel
The key management personnel in Sampo Group consists of the members of the Board of Directors of Sampo plc and Sampo Group’s Executive Committee, and the entities over which the members of the key management personnel have a control.
Key management compensation
EURm 2015 2014
Short-term employee benefits 8 8
Post employment benefits 4 3
Other long-term benefits 13 10
Total 25 21
In addition, deferred compensation EUR 119,269 (134,779) was paid to former members of the Group Executive Committee during the financial year.
Short-term employee benefits comprise salaries and other short-terms benefits, including profit-sharing bonuses accounted for for the year, and social security costs.
Post employment benefits include pension benefits under the Employees’ Pensions Act (TyEL) in Finland and voluntary supplementary pension benefits.
Other long-term benefits consist of the benefits under long-term incentive schemes accounted for for the year (see Note 36).
Related party transactions of the key management
The key management does not have any loans from the Group companies.
Associates
Outstanding balances with related parties/Associate Nordea
EURm 2015 2014
Assets 2,004 1,483
Liabilities 102 114
The Group's receivables from Nordea coprise mainly long-term investments in bonds and deposits. In addition, the Group has several on-going derivative contracts related to the Group's risk management of investments and liabilities.
36 Incentive schemes
Long-term incentive schemes 2011 I - 2014 I
The Board of Directors of Sampo plc has decided on the long-term incentive schemes 2011 I - 2014 I for the management and key employees of Sampo Group. The Board has authorised the CEO to decide who will be included in the scheme, as well as the number of calculated incentive units granted for each individual used in determining the amount of the incentive reward. In the schemes, the number of calculated incentive units granted for the members of the Group Executive Committee is decided by the Board of Directors. Some 130 persons were included in the schemes at the end of year 2015.
The amount of the performance-related bonus is based on the value performance of Sampo's A share and on the insurance margin (IM) and on Sampo's return on the risk adjusted capital (RORAC). The value of one calculated incentive unit is the trade-weighted average price of Sampo's A-share at the time period specified in the terms of the scheme, and reduced by the starting price adjusted with the dividends per share distributed up to the payment date. The pre-dividend starting prices vary between eur 18.37 - 43.38. The maximum value of one incentive unit varies between eur 33.37 - 62.38, reduced by the dividend-adjusted starting price. In all the schemes, the incentive reward depends on two benchmarks. If the IM is 6 per cent or more, the IM-based reward is paid in full. If the IM is between 4 - 5.99 per cent, half of the incentive reward is paid. No IM-related reward will be paid out, if the IM stays below these. In addition, the return on the risk adjusted capital is taken into account. If the return is at least risk free return + 4 per cent, the RORAC-based incentive reward is paid out in full. If the return is risk free return + 2 percent, but less than risk free return + 4 percent, the payout is 50 per cent. If the return stays below these benchmarks, no RORAC-based reward will be paid out.
Each plan has three performance periods and incentive rewards are settled in cash in three installments. The employee shall authorise Sampo plc to buy Sampo's A-shares with 60 per cent of the amount of the reward after taxes and other comparable charges. The shares are subject to transfer restrictions for three years from the day of payout. A premature payment of the reward may occur in the event of changes in the group structure or in the case of employment termination on specifically determined bases. The fair value of the incentive schemes is estimated by using the Black-Scholes pricing model.
2011 I 2011 I/2 2014 I 2014 I/2
Terms approved *) 14.9.2011 14.9.2011 17.9.2014 17.9.2014
Granted (1,000) 31 Dec. 2012 4,199 130 - -
Granted (1,000) 31 Dec. 2013 4,134 100 - -
Granted (1,000) 31 Dec. 2014 2,855 100 4,434 -
Granted (1,000) 31 Dec. 2015 1,415 70 4,380 62
End of performance period I 30% Q2-2014 Q2-2015 Q2-2017 Q2-2018
End of performance period II 35% Q2-2015 Q2-2016 Q2-2018 Q2-2019
End of performance period III 35% Q2-2016 Q2-2017 Q2-2019 Q2-2020
Payment I 30% 9-2014 9-2015 9-2017 9-2018
Payment II 35% 9-2015 9-2016 9-2018 9-2019
Payment III 35% 9-2016 9-2017 9-2019 9-2020
Price of Sampo A at terms approval date *) 18.10 18.10 37.22 37.22
Starting price **) 18.37 24.07 38.26 43.38
Dividend-adjusted starting price at 31 Dec. 2015 12.22 19.12 36.31 43.38
Sampo A - closing price 31 Dec. 2015 47.00
Total intrinsic value, meur 28 1 15 0
Total debt 44
Total cost for the financial period, meur (incl. social costs) 33
*) Grant dates vary
**) Trade-weighted average for ten trading days from the approval of terms
37 Auditors' fees
EURm 2015 2014
Auditing fees -2 -2
Other fees -0 -0
Total -3 -3
38 Legal proceedings
There are a number of legal proceedings against the Group companies outstanding on 31 Dec. 2015, arising in the ordinary course of business. The companies estimate it unlikely that any significant loss will arise from these proceedings.
39 Investments in subsidiaries
Name Group holding % Carrying amount
P&C insurance
If P&C Insurance Holding Ltd 100 1,886
If P&C Insurance Ltd 100 1,315
If P&C Insurance Company Ltd 100 483
If P&C Insurance AS 100 48
AS If Kinnisvarahaldus 100 0
CJSC If Insurance 100 10
If Livförsäkring Ab 100 8
Life insurance
Mandatum Life Insurance Company Ltd 100 484
Innova Services Ltd 100 3
Mandatum Life Services Ltd 100 2
Mandatum Life Investment Services Ltd 100 1
Saka Hallikiinteistöt GP Oy 100 0
Mandatum Life Fund Management S.A. 100 1
Mandatum Life Insurance Baltic SE 100 11
Other business
If IT Services A/S 100 0
Sampo Capital Oy 100 1
The table excludes property and housing companies accounted for in the consolidated accounts.
40 Investments in shares and participations other than subsidiaries and associates
Holdings exceeding EURm 5 and holdings in listed companies exceeding five per cent specified.
The table does not include life insurance's investments related to unit-linked insurance contracts.
P&C insurance
Country Holding % Carrying amount /
Fair value
Listed companies
A P Moller - Maersk Denmark 0.03% 7
ABB Switzerland 0.19% 72
Atlas Copco A+B Sweden 0.15% 40
BB Tools Sweden 0.64% 2
Clas Ohlson Sweden 4.75% 52
CTT Systems Sweden 4.08% 3
Beijer Ab Gl Sweden 0.44% 4
Gunnebo AB Norway 11.67% 43
Hennes Mauritz AB Sweden 0.18% 99
Husqvarna AB Sweden 1.01% 35
Husqvarna AB Sweden 0.39% 14
Investor AB Sweden 0.13% 33
Lindab Intl AB Sweden 4.94% 27
Nederman Holding AB Sweden 9.90% 32
Nobia AB Sweden 10.10% 204
Nolato AB Sweden 0.92% 7
Sandvik AB Sweden 0.42% 43
Sectra AB Sweden 11.15% 53
Svedbergs i Dalstrop Sweden 11.45% 9
Teliasonera AB Sweden 0.36% 73
VBG Group AB Sweden 3.94% 7
Veidekke ASA Norway 7.46% 113
Volvo AB Sweden 0.06% 11
Volvo AB Sweden 0.39% 71
Yara Intl ASA Norway 0.27% 29
Marine Harvest ASA Norway 0.23% 12
Team Tankers Intl AS Norway 0.91% 3
Total listed companies 1,097
Other 2
Unit trusts
Danske Invest Finland 77
Danske Invest Finland 57
DB Platinum Advisors Luxemburg 17
PEQ Eqt III Guernsey 0
PEQ Eqt IV Guernsey 0
PEQ GS Loan Partn I Cayman islands 3
Investec Asset Mgmt Great Britain 48
Barclays Global Investment Ireland 5
Lyxor Int AM France 0
PEQ Mandatum I Finland 0
PEQ Mandatum II Finland 2
PEQ Mandatum II Finland 5
PEQ Private Egy mkt Finland 3
State Street Global Finland 67
PEQ Eqt Mid Market Great Britain 8
Handelsbanken Fonder Sweden 19
Hermes Investment Ireland 47
Blackrock AM DE Denmark 20
PEQ OMP Capital Norway 2
Blackrock AM DE Denmark 42
Total unit trusts 422
P&C insurance, total shares and participations 1,522
Life insurance
Country Holding % Carrying amount /
Fair value
Listed companies
Amer Sports OYJ Finland 3.32% 106
Asiakastieto Group Oyj Finland 9.27% 21
Comptel OYJ Finland 18.94% 38
Elecster OYJ A Finland 6.43% 1
eQ Oyj Finland 5.17% 12
F-Secure OYJ Finland 3.65% 15
Kemira OYJ Finland 0.58% 10
Lassila & Tikanoja OYJ Finland 5.96% 42
Metso OYJ Finland 0.99% 31
Nokia OYJ Finland 0.04% 12
Nokian Renkaat OYJ Finland 0.58% 26
Norvestia OYJ Finland 11.68% 14
Okmetic OYJ Finland 4.63% 6
Oriola-KD OYJ B Finland 2.86% 16
Stora Enso OYJ Finland 0.24% 12
Teleste OYJ Finland 8.84% 16
Tikkurila Oyj Finland 3.58% 25
UPM-Kymmene OYJ Finland 0.85% 78
Uponor OYJ Finland 0.82% 8
Vaisala Oyj A Finland 4.24% 15
Valmet Corp Finland 0.81% 11
Wartsila OYJ Finland 0.21% 18
YIT OYJ Finland 3.37% 22
Total listed companies 555
Other listed companies Finland 14
Listed companies in total 569
Unit trusts
KJK Fund SICAV-SIF Baltic States B1 C Finland 13
EVLI EUROPE-B Finland 9
FONDITA NORDIC MICRO CAP-B Finland 8
Fourton Odysseus Finland 47
FOURTON STAMINA NON-UCITS Finland 24
OP-Eurooppa Nousevat Tähdet A Finland 7
OP-KEHITTYVA AASIA Finland 5
Total unit trusts 112
Capital trusts
Amanda III Eastern Private Equity L.P. Finland 14
Amanda IV West L.P. Finland 23
CapMan Hotels RE Ky Finland 10
Capman Real Estate I Ky Finland 11
Capman Real Estate II Ky Finland 8
CapMan RE II Ky Finland 6
MB Equity Fund IV Ky Finland 11
Total capital trusts 83
Other shares and participations 40
Domestic shares and participations in total 803
Other companies
Unilever NV Netherlands 0.01% 7
Pension Corporation Group Limited Guernsey 1.39% 9
Schneider Electric SA France 0.02% 8
BASF SE Germany 0.01% 6
Bayerische Motoren Werke AG Germany 0.02% 9
Deutsche Post AG Germany 0.02% 6
SAP AG Germany 0.01% 8
Kuehne + Nagel International AG Switzerland 0.04% 7
Nestle SA Switzerland 0.00% 9
Roche Holding AG Switzerland 0.00% 9
Syngenta AG Switzerland 0.02% 6
British American Tobacco PLC United kingdom 0.01% 7
GlaxoSmithKline PLC United kingdom 0.01% 6
Royal Dutch Shell PLC United kingdom 0.01% 7
SABMiller PLC United kingdom 0.01% 5
Total other companies 109
Foreign unit trusts
The Forest Company Limited Guernsey 7
Comgest Growth Asia Ex Japan USD I Acc Class Ireland 58
DJ STOXX 600 OPT HEALTHCARE Ireland 33
NOMURA FDS IR-JP STR V-I JPY Ireland 14
Allianz RCM Europe Equity Growth W Luxemburg 76
Danske Invest Europe High Dividend I Luxemburg 58
FIDELITY FDS-JPN AGGRE-IJPY Luxemburg 7
LUX Mandatum Life Nordic High Yield Total Return Fund SICAV-SIF G EUR Share Class Luxemburg 13
MFS MER-EUROPE SM COS-I1EUR Luxemburg 18
MFS European Value Fund Z Luxemburg 56
UNIDEUTSCHLAND XS Germany 28
ISHARES SMI CH Switzerland 60
INVESTEC GSF-ASIA PACIFIC-I United kingdom 66
ISHARES CORE S&P 500 INDEX FUND United States 302
Total foreign unit trusts 795
Foreign capital trusts
Activa Capital Fund II FCPR France 7
Apollo Offshore Energy Opportunity Fund Limited Cayman islands 15
Avenue Special Situations Fund VI (C-Feeder), L.P. Cayman islands 17
Broad Street Real Estate Credit Partners II Treaty Fund, L.P. Cayman islands 10
Financial Credit Investment I, L.P. Cayman islands 13
Fortress Credit Opportunities Fund II (C) L.P. Cayman islands 49
Fortress Credit Opportunities Fund III (C) L.P. Cayman islands 33
Fortress Credit Opportunities Fund IV (C) L.P. Cayman islands 8
Fortress Life Settlement Fund (C) L.P. Cayman islands 7
Petershill Offshore LP Cayman islands 25
Highbridge Specialty Fund III Cayman islands 41
Highbridge Liquid Loan Opportunities Fund, L.P Cayman islands 54
Lunar Capital Partners III L.P. Cayman islands 10
Mount Kellet Capital Partners (Cayman), L.P. Cayman islands 14
Mount Kellett Capital Partners (Cayman) II, L.P. Cayman islands 16
Petershill II Offshore LP Cayman islands 15
Russia Partners II, L.P. Cayman islands 9
Victory Park Capital Fund II (Cayman), L.P. Cayman islands 22
Capman Buyout IX Fund A L.P. Guernsey 8
EQT Credit (No.1) L.P. Guernsey 7
EQT Credit (No.2) L.P. Guernsey 39
EQT V (No.1) L.P. Guernsey 7
EQT VI (No.1) L.P. Guernsey 30
M&G Debt Opportunities Fund II Ireland 27
Verdane Capital VII K/S Denmark 14
Broad Street Loan Partners 2013 Europe L.P. United kingdom 31
EQT Auris Co-Investment L.P. United kingdom 12
EQT Mid Market (No.1) Feeder Limited Partnership United kingdom 8
M&G Debt Opportunities Fund United kingdom 20
Avenue Energy Opportunities Fund L.P. United States 11
HRJ Global Buy-out III (Asia) L.P. United States 7
Total foreign capital trusts 587
Other share and participations 249
Foreign shares and participations in total 1,740
Life insurance, total shares and participations 2,543
Holding
Country Holding % Carrying amount /
Fair value
Listed companies
Aktia Oyj Finland 5.73% 39
Asiakastieto Group Oyj Finland 10.06% 23
Swedbank Ab Sweden 0.59% 135
Other Finland 3
Domestic other than listed companies
Varma Mutual Pension Insurance Company Finland 80.28% 14
LUX Mandatum Life European Small & Mid Cap Equity Fund SICAV-SIF G EUR Share Class Luxemburg 10
Other 24
Holding, total shares and participations 248
41 Events after the balance sheet date
In the meeting of 10 Feb. 2016, the Board of Directors decided to propose at the Annual General Meeting on 21 April 2016 a dividend distribution of EUR 2.15 per share, or total EUR 1.204.000.000, for 2015. The dividends to be paid will be accounted for in the equity in 2016 as a deduction of retained earnings.