GROUP’S IFRS FINANCIAL STATEMENTS SAMPO PLC’S FINANCIAL STATEMENTS BOARD OF AUDITOR’S DIRECTORS’ REPORT Group’s Notes to the Accounts Sampo plc’s Notes to the Accounts REPORT 2020 BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS GROUP’S IFRS FINANCIAL STATEMENTS SAMPO PLC’S FINANCIAL STATEMENTS BOARD OF AUDITOR’S DIRECTORS’ REPORT Group’s Notes to the Accounts Sampo plc’s Notes to the Accounts REPORT CONTENTS Board of Directors’ Report for 2020 ............... 3 Shares, Share Capital and Shareholders .................28 Group’s Notes to the Accounts .......................48 Sampo Group ............................................................ 4 Shares and Share Capital ..................................28 Summary of Significant Accounting Policies ........ 49 Economic Environment............................................. 7 Authorizations Granted to the Board ...............30 Segment Information ........................................ 67 Effects of COVID-19 on Sampo Group ..................... 8 Shareholders .....................................................30 Material Partly-Owned Subsidiaries .................... 74 If .......................................................................... 9 Holdings of the Board and Business Combinations ..................................... 76 Executive Management .....................................32 Topdanmark ........................................................ 9 Notes to the Income Statement 1–40 .................. 78 Financial Standing ..................................................33 Hastings .............................................................. 9 Internal Dividends .............................................33 Sampo plc’s Financial Statements ............. 185 Mandatum Life ..................................................10 Ratings ..............................................................33 Sampo plc’s Income Statement ........................... 186 Investment Activities ........................................10 Solvency .................................................................34 Sampo plc’s Balance Sheet .................................. 187 Solvency Positions ............................................10 Sampo plc’s Statement of Cash Flows ................ 188 Group Solvency .................................................34 Business Areas ........................................................ 11 Solvency Position in the Subsidiaries ...............34 Sampo plc’s Notes to the Accounts ........... 190 If ........................................................................ 11 Debt Financing ..................................................35 Summary of Significant Accounting Policies ....... 190 Topdanmark ......................................................13 Outlook ..................................................................36 Notes to the Income Statement 1–4 .................... 190 Hastings ............................................................14 Outlook for 2021 ...............................................36 Notes to the Assets 5–9 ....................................... 191 Nordea ..............................................................14 The Major Risks and Uncertainties for Notes to the Liabilities 10–13 .............................. 192 Mandatum Life ..................................................15 the Group in the Near-term .............................36 Note to the Income Taxes 14 ............................... 193 Holding ..............................................................17 Dividends ...............................................................37 Notes to the Off-Balance Sheet Liabilities and Other Developments...............................................18 Dividend Proposal .............................................37 Commitments 15–16 .............................................. 194 Disposal of Nordea Shares ................................18 Key Figures .............................................................38 Notes to the Staff and Management 17–19 ......... 194 Hastings Acquisition .........................................18 Calculation of the Key Figures ..........................41 Note to the Shares Held 20 .................................. 195 Governance and Related Issues ..............................21 Group’s IFRS Financial Statements .............43 Approval of the Financial Statements Changes in Group Management .......................21 Statement of Profit and Other Comprehensive and the Board of Directors' Report ...........196 Governance .......................................................23 Income, IFRS .......................................................... 44 Auditor’s Report ...........................................197 Annual General Meeting ....................................23 Consolidated Balance Sheet, IFRS .........................45 Corporate Responsibility ..................................24 Statement of Changes in Equity, IFRS ....................46 Personnel ..........................................................25 Statement of Cash Flows, IFRS ..............................47 Remuneration ....................................................25 REPORTS FOR THE YEAR 2020 Risk Management ..............................................27 WWW.SAMPO.COM/YEAR2020 This Board of Directors’ report and Financial Statements in pdf format is not an xHTML document compliant with the ESEF (European Single Electronic Format) regulation. Sampo’s ESEF Financial Statements is available at www.sampo.com/year2020. BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2020 2 GROUP’S IFRS FINANCIAL STATEMENTS SAMPO PLC’S FINANCIAL STATEMENTS BOARD OF AUDITOR’S DIRECTORS’ REPORT Group’s Notes to the Accounts Sampo plc’s Notes to the Accounts REPORT BOARD OF DIRECTORS’ REPORT Sampo Group .................................................... 4 Other Developments ..................................... 18 Solvency ........................................................... 34 Disposal of Nordea shares ......................................18 Group Solvency ................................................ 34 Economic Environment ................................. 7 Hastings Acquisition ...............................................18 Solvency Position in the Subsidiaries .....................34 Effects of COVID-19 on Sampo Group ......... 8 Debt Financing .......................................................35 Governance and Related Issues .................. 21 If ................................................................................ 9 Changes in Group Management ............................ 21 Outlook ............................................................ 36 Topdanmark .............................................................. 9 Governance .............................................................23 Outlook for 2021 .....................................................36 Hastings .................................................................... 9 Annual General Meeting .........................................23 The Major Risks and Uncertainties for Mandatum Life ........................................................10 the Group in the Near-term .................................... Corporate Responsibility ........................................24 36 Investment Activities ..............................................10 Personnel ................................................................25 ........................................................ Solvency Positions ..................................................10 Dividends 37 Remuneration ........................................................25 Dividend Proposal ..................................................37 Business Areas ............................................... 11 Risk Management ...................................................27 ...................................................... If .............................................................................. 11 Key Figures 38 Shares, Share Capital and Shareholders ... 28 Calculation of the Key Figures ................................ Topdanmark ............................................................13 41 Shares and Share Capital ........................................28 Hastings ..................................................................14 Authorizations Granted to the Board .....................30 Nordea ....................................................................14 Shareholders ...........................................................30 Mandatum Life ........................................................15 Holdings of the Board and Executive Management ..32 Holding ...................................................................17 Financial Standing ......................................... 33 Internal Dividends ...................................................33 Ratings ....................................................................33 BOARD OF DIRECTORS’ REPORT 2020 3 GROUP’S IFRS FINANCIAL STATEMENTS SAMPO PLC’S FINANCIAL STATEMENTS BOARD OF AUDITOR’S DIRECTORS’ REPORT Group’s Notes to the Accounts Sampo plc’s Notes to the Accounts REPORT Board Of Directors’ Report For 2020 Sampo Group Sampo Group’s largest business area If had an extremely Sampo plc’s Board of Directors has today, after applying Topdanmark segment’s profit before taxes for 2020 was strong year 2020 in all respects. The combined ratio for management judgement,