FULLTEXT DEL 1 AV 1
Kvartalsrapport Q2 2024
===== SIDA 1 ===== ===== SIDA 2 ===== Contents Group CEO’s comment ................................................................................................................................................... 4 Outlook ................................................................................................................................................................................. 5 Outlook for 2024 ..................................................................................................................................................................... 5 The major risks and uncertainties for the Group in the near-term ........................................................................ 5 Financial highlights .......................................................................................................................................................... 6 Second quarter 2024 in brief ...................................................................................................................................... 8 Business areas .................................................................................................................................................................... 10 If ..................................................................................................................................................................................................... 10 Topdanmark .............................................................................................................................................................................. 13 Hastings ...................................................................................................................................................................................... 14 Holding ........................................................................................................................................................................................ 15 Financial position ............................................................................................................................................................. 16 Group solvency ........................................................................................................................................................................ 16 Financial leverage position .................................................................................................................................................. 16 Ratings ........................................................................................................................................................................................ 16 Other developments ....................................................................................................................................................... 17 Public exchange offer for Topdanmark ........................................................................................................................... 17 Sale of holding in Saxo Bank ............................................................................................................................................... 17 Shares and shareholders ....................................................................................................................................................... 18 Remuneration ........................................................................................................................................................................... 18 Personnel .................................................................................................................................................................................... 19 Events after the end of the reporting period ................................................................................................................ 19 Key figures .......................................................................................................................................................................... 22 Calculation of key figures ..................................................................................................................................................... 24 Tables .................................................................................................................................................................................... 27 Group quarterly result ........................................................................................................................................................... 27 Statement of profit and other comprehensive income ............................................................................................. 28 Consolidated balance sheet ................................................................................................................................................ 29 Statement of changes in equity ......................................................................................................................................... 30 Statement of cash flows ....................................................................................................................................................... 31 Notes ..................................................................................................................................................................................... 32 Accounting principles ............................................................................................................................................................ 32 Result by segment for six months ended 30 June 2024 .......................................................................................... 34 Result by segment for six months ended 30 June 2023 ........................................................................................... 35 Balance sheet by segment at 30 June 2024 ................................................................................................................. 36 Balance sheet by segment at 31 December 2023 ........................................................................................................ 37 Other notes ......................................................................................................................................................................... 38 1 Insurance service result ...................................................................................................................................................... 38 2 Net investment income ...................................................................................................................................................... 39 3 Net finance income or expense from insurance contracts ................................................................................... 40 4 Other income ........................................................................................................................................................................ 40 5 Intangible assets .................................................................................................................................................................. 40 6 Financial assets ................................................................................................................................................................... 41 7 Determination and hierarchy of fair values .............................................................................................................. 42 8 Movements in level 3 financial instruments measured at fair value ................................................................ 48 9 Insurance contract liabilities .......................................................................................................................................... 50 10 Financial liabilities ............................................................................................................................................................. 50 11 Discontinued operations .................................................................................................................................................. 51 12 Contingent liabilities and commitments ................................................................................................................... 52 13 Subsequent events after the balance sheet date .................................................................................................. 53 Summary .............................................................................................................................................................................. 3 HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 2 ===== SIDA 3 ===== Sampo Group’s results for January- June 2024 • Sampo Group achieved top line growth of 11 per cent in the first half on a currency adjusted basis, driven by continued strong development in all business areas • The underwriting result decreased to EUR 580 million (598) and the combined ratio increased to 85.8 per cent (83.8) due to harsh Nordic winter conditions and elevated large claims experience • The Group underlying combined ratio improved by 1.5 percentage points, driven by positive development across the Nordics and the UK only partly offset by a weakening in Topdanmark • Profit before taxes increased to EUR 909 million (722), supported by strong investment returns and robust underwriting performance in the UK, while operating EPS was up 2 per cent to EUR 1.09 (1.07) • Solvency II coverage remained strong at 179 per cent, net of announced capital deployment and dividend accrual, and financial leverage amounted to 26.1 per cent • On 17 June 2024, Sampo announced a recommended public exchange offer for Topdanmark and a related EUR 800 million deployment of capital in share buybacks and a potential squeeze-out Key figures EURm 1–6/2024 1–6/2023 Change, % 4–6/2024 4–6/2023 Change, % Profit before taxes 909 722 26 444 363 22 If 735 657 12 379 320 18 Topdanmark 112 105 7 49 42 17 Hastings 71 27 163 45 17 155 Holding -10 -60 — -29 -15 — Net profit for the equity holders 653 575 13 310 304 2 Operating result 549 546 1 296 285 4 Underwriting result 580 598 -3 321 306 5 Change, % Change, % Earnings per share (EUR) 1.30 1.13 15 0.62 0.60 3 Operating EPS (EUR) 1.09 1.07 2 0.59 0.56 5 Net profit for the equity holders and earnings per share for January–June 2023 include result from life operations. The figures in this report have not been audited. Sampo Group key financial targets for 2024–2026 Target 1-6/2024 Operating EPS growth: over 7% (period average) 2% Group combined ratio: below 85% 85.8% Solvency ratio: 150-190% 179% (including dividend accrual) Financial leverage: below 30% 26.1% Financial targets for 2024–2026 announced at the Capital Markets Day on 6 March 2024. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 7 August 2024 3 ===== SIDA 4 ===== Group CEO’s comment Sampo’s solid second quarter performance ran along the now-familiar themes of strong premium growth and positive underlying margin development, driven by underwriting discipline and execution on our key operational initiatives. Profit before taxes was up 22 per cent year-on-year. The announced offer for the remaining shares in Topdanmark is another milestone on our journey that unlocks new levers for operational value creation. The second quarter saw a continuation of the bifurcation in performance amongst the Nordic P&C insurers, with the large, pan-regional groups, including Sampo, delivering strong results despite pockets of challenging claims trends. It is tempting to attribute of our strength squarely to scale and diversification, but these qualities only provide a firm basis for value creation when paired with operational excellence. As I explain below, our success rests on long-term investments into our operational capabilities and customer offering, and on the underwriting and customer service cultures that we foster. Let me start with growth. Sampo delivered FX-adjusted top line growth of 11 per cent in the quarter, despite continued low new car sales volumes, on the back of investments made into areas such as the UK, personal insurance and SME. Premium growth was also supported by continued very high retention, reflecting the competitiveness of our prices and services and the stability of the Nordic market. Notably, customers with claims are often amongst our most satisfied. We work closely with our claims partners and invest heavily in our cooperation with these to enable us to fulfil our customer promise with speed and efficiency. On the sales side, we continue to leverage our unique capabilities to win major motor insurance distribution partnerships as these come up for renewal, including one of the largest agreements in Sweden in the second quarter. Turning to margins, P&C insurance growth requires technical excellence, so I am pleased to report another set of solid underwriting results. In the Nordics, it is the stability of margins across business areas that really stands out; despite a harsh winter and heavy large claims burden, the first half combined ratios of our four business areas fit within 5 percentage points. This reflects the constant focus that we have in every part of the business on ensuring technical excellence. For example, we have been early to adjust prices and deductibles in Norway in response to shifting claims trends. Our stable result further illustrates our commitment to giving customers the right price, which we see as key to building long term relationships. The second quarter underlying combined ratio improved by almost 2 percentage points, despite softening in Topdanmark, helped by strong development in the UK, where we grew the underwriting result by 37 per cent. Our UK business is benefiting from early rate increases in response to claims inflation and investments in anti-fraud and enhanced risk mix that, together with benign weather, have reduced claims frequency. However, please remember that our objective in the UK is to drive higher profits through customer and premium growth at attractive returns, not by widening margins. I am therefore delighted to see that the UK motor book returned to customer growth in the quarter. Looking ahead, underlying UK margins could both rise and fall as we adjust rates to grow profits. Ending on a strategic note, we expect to initiate the acceptance period on the offer for Topdanmark on 9 August. The transaction would complete our transformation from a financial conglomerate to a unified P&C insurance group and represents an operational investment that enables us to improve our competitive positioning in Denmark. We aim to deliver annual pre-tax synergies of EUR 95 million that neither company can realise on its own, and to sharpen our customer proposition through complementary product and distribution expertise. The deal represents another avenue for operational value creation, to be enriched by our scale and diversification, and our financial strength will remain comfortably within target-levels, even after adjusting for the related deployment of EUR 800 million into buybacks and the potential squeeze-out. Torbjörn Magnusson Group CEO HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Group CEO’s comment 4 ===== SIDA 5 ===== Outlook Outlook for 2024 Following the first half result, Sampo has maintained its 2024 outlook for a Group combined ratio of 83–85 per cent. The outlook excludes potential one-off integration costs related to the realisation of synergies with Topdanmark. Sampo Group’s combined ratio is subject to volatility driven by, among other factors, seasonal weather patterns, large claims and prior year development. The net financial result will be significantly influenced by capital markets’ developments. The major risks and uncertainties for the Group in the near-term In its current day-to-day business activities Sampo Group is exposed to various risks and uncertainties, mainly through its major business units. Major risks affecting the Group companies’ profitability and its variation are market, credit, insurance and operational risks. At the Group level, sources of risks are the same, although they are not directly additive due to the effects of diversification. Uncertainties in the form of major unforeseen events may have an immediate impact on the Group’s profitability. The identification of unforeseen events is easier than the estimation of their probabilities, timing, and potential outcomes. Macroeconomic and financial market developments affect Sampo Group primarily through the market risk exposures it carries via its insurance company investment portfolios and insurance liabilities and through strategic investments. Over time, adverse macroeconomic effects could also have an impact on Sampo’s operational business, for example by reducing economic growth or increasing claims costs. Inflation has fallen in 2024 with euro-area headline inflation being already relatively close to the central bank target. However, the fall in inflation has largely come from lower goods inflation and a decline in energy prices. Whereas the fall in goods inflation has been supported by easing supply-chain frictions, energy prices continue to be vulnerable to geopolitical events. Furthermore, the continued strength of Europe’s labour market and rapid wage growth has kept services inflation high and could keep price pressures elevated. This creates uncertainty on whether central banks will be keeping interest rates elevated longer than expected. This may lead to both a significant slowdown in economic growth and a deterioration in the debt service capacity of businesses, households and governments, raising the risk of abrupt asset repricing in financial markets. Furthermore, the potential escalation of wars in Ukraine and the Middle East represent a major economic risk. These developments are currently causing significant uncertainties in economic and capital market development. At the same time rapidly evolving hybrid threats create new challenges for states and businesses. There are also a number of widely identified macroeconomic, political and other sources of uncertainty which can, in various ways, affect the financial services industry in a negative manner. Sampo Group’s insurance exposures in Russia or Ukraine are limited to certain Nordic industrial line clients, with coverage subject to war exclusions. On the asset side, Sampo has no material direct investments in Russia or Ukraine. Given the limited direct exposure, the biggest risk from the war in Ukraine to Sampo relates to the second order capital markets and macroeconomic effects outlined above. Other sources of uncertainty are unforeseen structural changes in the business environment and already identified trends and potential wide-impact events. These external drivers may have a long-term impact on how Sampo Group’s business will be conducted. Examples of identified trends are demographic changes, climate change, and technological developments in areas such as artificial intelligence and digitalisation including threats posed by cybercrime. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Outlook 5 ===== SIDA 6 ===== Financial highlights for January–June 2024 Sampo Group’s top line growth continued be robust throughout the first half of 2024, supported by strong development across the group. Underlying margin development remained positive but headline underwriting profitability was affected by a harsh Nordic winter in the first quarter and elevated large claims experience in the second quarter. The result benefited from a strong investment result on the back of higher interest rates and positive equity markets. Gross written premiums and brokerage income increased by 11 per cent on a currency adjusted basis and by 10 per cent on a reported basis to EUR 5,631 million (5,097) in January-June 2024. In the Nordics, currency adjusted GWP growth amounted to 7.3 per cent, driven by high and stable retention and pricing exceeding claims inflation. Private saw 6.7 per cent currency adjusted GWP growth with continued positive development in personal insurance and property. The UK enjoyed 22 per cent top line growth on a local currency basis, supported by policy growth in both motor and home, while the large price increases taken during the second half of 2023 in response to significant claims inflation continued to earn through the P&L. Corporate lines showed healthy top line growth, with Commercial growing 5.9 and Industrial 10.4 per cent on a currency adjusted basis, driven by successful 1 January renewals and rate increases. The underlying margin trend was positive in the first half of 2024, with 1.5 percentage point improvement in the Group underlying combined ratio on the back of positive development in both the Nordics and the UK, albeit partly offset by a weakening in Topdanmark. If reported an undiscounted adjusted risk ratio improvement of 0.3 percentage points year-on-year, supported by disciplined underwriting and rate actions to mitigate Nordic claims inflation, which remained in the lower end of the 4-5 per cent range. In the UK, motor pricing has been stable over 2024 while loss cost development has benefited from benign claims frequency trends that have offset continued elevated severity inflation. The UK operating ratio stood at 89.6 per cent (90.8) and the underwriting result grew by 49 per cent. The first half of 2024 was affected by severe Nordic winter weather and several large property claims, leading to an adverse severe weather and large claims-effect of 5.0 percentage points on If’s first half risk ratio. As this was only partly offset by the robust performance in the UK, the group underwriting result decreased by 2 per cent on a currency adjusted basis and by 3 per cent to EUR 580 million (598) on a reported basis. The Group combined ratio amounted to 85.8 per cent (83.8). The outlook for the 2024 Group combined ratio has been kept at 83–85 per cent. Sampo Group underlying combined ratio development for January–June 2024 1–6/2024 1–6/2023 Change Combined ratio, % 85.8 83.8 2.0 Large claims, % 0.4 0.2 0.2 Severe weather, % 3.3 2.4 0.9 Prior year development, risk adjustment and other technical effects, % -0.8 -3.0 2.2 Discounting effect, current year, % -2.9 -3.2 0.3 Undiscounted underlying combined ratio, current year, % 85.8 87.3 -1.5 Large claims measured against budget but severe weather claims are reported in full; negative figures indicate a positive outcome. Severe weather includes natural catastrophes. Negative figures for prior year development indicate positive reserve run-off. The discounting effect represents the impact of discounting of current year claims reserves on the underlying combined ratio. The net financial result increased to EUR 445 million (229), driven by strong investment returns and positive effect from changes in discount rates. Net investment income increased to EUR 478 million (362), supported by strong fixed income and equity returns. The Group fixed income running yield stood at 4.0 per cent and mark-to-market yield at 4.7 per cent at the end of June 2024. Insurance finance income or expense (IFIE) amounted to EUR -33 million (-133), including a negative effect from unwind of discounting of EUR -120 million (-113) and a positive effect of EUR 88 million (9) from changes in discount rates. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Financial highlights 6 ===== SIDA 7 ===== Operating EPS increased to EUR 1.09 (1.07), as strong investment returns and capital management actions to reduce the share count offset lower underwriting results in the Nordics. Sampo targets more than 7 per cent operating EPS growth on average over 2024–2026. The Group Solvency II ratio, net of announced capital deployment of EUR 800 million and dividend accrual, stood at 179 per cent, broadly unchanged compared to 180 per cent (pro forma) at the end of March 2024. Financial leverage amounted to 26.1 per cent, up from 24.6 per cent at the end of the first quarter mainly due to the dividend payment. Sampo targets a solvency ratio of 150–190 per cent and a financial leverage of below 30 per cent. On 17 June 2024, Sampo announced that Sampo and Topdanmark have entered into a combination agreement, pursuant to which Sampo will make a recommended best and final public exchange offer to acquire Topdanmark. The offer is summarised in section Other developments. Sampo Group results for January–June 2024 EURm If Topdanmark Hastings Holding Elim. Sampo Group GWP & brokerage income 3,502 929 1,222 — -23 5,631 Insurance revenue, net (incl. brokerage) 2,587 722 768 — 0 4,077 Claims incurred and claims handling costs, net -1,802 -483 -441 — 0 -2,725 Operating expenses -395 -129 -248 — 0 -772 Underwriting result 390 110 80 — 0 580 Net investment income 381 29 24 48 -4 478 Insurance finance income or expense, net -27 6 -12 — 0 -33 Net financial result 354 35 12 48 -4 445 Other items -9 -34 -21 -57 4 -117 Profit before taxes 735 112 71 -10 0 909 Net profit for the equity holders 653 - of which from life operations* -13 Combined ratio, % 84.9 84.7 89.6 85.8 Sampo Group results for January–June 2023 EURm If Topdanmark Hastings Holding Elim. Sampo Group GWP & brokerage income 3,273 846 977 — — 5,097 Insurance revenue, net (incl. brokerage) 2,466 635 584 — — 3,686 Claims incurred and claims handling costs, net -1,659 -403 -330 — — -2,392 Operating expenses -380 -115 -200 — — -695 Underwriting result 427 117 54 — — 598 Net investment income 339 37 -2 -4 -7 362 Insurance finance income or expense, net -101 -28 -4 — — -133 Net financial result 238 9 -6 -4 -7 229 Other items -8 -21 -21 -56 1 -105 Profit before taxes 657 105 27 -60 -6 722 Net profit for the equity holders 575 - of which from life operations* 70 Combined ratio, % 82.7 81.5 90.8 83.8 *) Net profit from life operations in January–June 2024 includes Topdanmark’s extraordinary cost related to the sale of life business to Nordea. Net profit from life operations in January–June 2023 includes Mandatum’s result. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Financial highlights 7 ===== SIDA 8 ===== Second quarter 2024 in brief Strong top line growth and solid underlying performance drove the underwriting result growth in the second quarter, offsetting the negative effect from an elevated large claims outcome. Gross written premiums and brokerage income increased by 11 per cent on a currency adjusted basis and by 12 per cent on a reported basis to EUR 2,333 million (2,081) in April-June 2024. The Nordics saw 6.7 per cent GWP growth on a currency adjusted basis, supported by all business areas. In Private, currency adjusted growth remained robust at 6.2 per cent, driven by growth in key areas such as personal insurance and property, and continued high retention. In the UK, top line growth amounted to 22 per cent on a local currency basis, while the operating environment enabled healthy policy growth of 6 per cent year-on-year. This was driven by 2 per cent growth in motor, which returned to growth in the second quarter, and 26 per cent growth in home. Commercial saw 8.4 per cent currency adjusted growth, supported on the back of price increases and strong performance within the SME portfolio, while growth in Industrial amounted 6.0 per cent, primarily driven by rate increases. After a favourable large claims outcome at the beginning of the year, large claims had a 4.4 percentage points negative effect on If’s risk ratio but this was offset by continued solid underlying development and strong top line growth, particularly in the UK. Hence, the underwriting result increased by 5 per cent on a currency adjusted and a reported basis to EUR 321 million (306), even though the Group combined ratio softened to 84.4 per cent (83.5). The Group underlying combined ratio improved by 1.9 percentage points, driven mainly by the UK, and If’s undiscounted adjusted risk ratio by 0.3 percentage points year-on-year. Sampo Group underlying combined ratio development for April–June 2024 4–6/2024 4–6/2023 Change Combined ratio, % 84.4 83.5 0.9 Large claims, % 2.7 2.3 0.4 Severe weather, % 0.6 2.9 -2.3 Prior year development, risk adjustment and other technical effects, % -0.4 -4.5 4.0 Discounting effect, current year, % -2.8 -3.5 0.7 Undiscounted underlying combined ratio, current year, % 84.3 86.3 -1.9 Large claims measured against budget but severe weather claims are reported in full; negative figures indicate a positive outcome. Severe weather includes natural catastrophes. Negative figures for prior year development indicate positive reserve run-off. The discounting effect represents the impact of discounting of current year claims reserves on the underlying combined ratio. The net financial result increased to EUR 180 million (106). This was primarily driven by net investment income of EUR 183 million (108), as the fixed income portfolios continued to benefit from higher running yields. IFIE was stable at EUR -3 million (-2), as the EUR -62 million (-54) negative effect from unwind of discounting was offset by EUR 54 million (70) positive effect from changes in discount rates. Operating EPS increased to EUR 0.59 (0.56), driven by underwriting result and capital management actions. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Second quarter 2024 in brief 8 ===== SIDA 9 ===== Sampo Group results for April–June 2024 EURm If Topdanmark Hastings Holding Elim. Sampo Group GWP & brokerage income 1,407 276 662 — -12 2,333 Insurance revenue, net (incl. brokerage) 1,297 361 399 — 0 2,057 Claims incurred and claims handling costs, net -876 -242 -221 — 1 -1,338 Operating expenses -202 -67 -130 — 0 -399 Underwriting result 219 52 48 — 0 321 Net investment income 167 7 13 -2 -2 183 Insurance finance income or expense, net -2 6 -6 — 0 -3 Net financial result 165 13 7 -2 -2 180 Other items -5 -16 -10 -27 2 -57 Profit before taxes 379 49 45 -29 0 444 Net profit for the equity holders 310 - of which from life operations* -13 Combined ratio, % 83.1 85.5 87.9 84.4 Sampo Group results for April–June 2023 EURm If Topdanmark Hastings Holding Elim. Sampo Group GWP & brokerage income 1,307 242 532 — — 2,081 Insurance revenue, net (incl. brokerage) 1,231 317 309 — — 1,857 Claims incurred and claims handling costs, net -830 -200 -168 — — -1,198 Operating expenses -191 -57 -106 — — -353 Underwriting result 210 61 35 — — 306 Net investment income 100 10 -16 18 -4 108 Insurance finance income or expense, net 13 -18 3 — — -2 Net financial result 112 -8 -12 18 -4 106 Other items -2 -11 -6 -33 2 -50 Profit before taxes 320 42 17 -15 -2 363 Net profit for the equity holders 304 - of which from life operations* 41 Combined ratio, % 82.9 80.8 88.6 83.5 *) Net profit from life operations in April–June 2024 includes Topdanmark’s extraordinary cost related to the sale of life business to Nordea. Net profit from life operations in April–June 2023 includes Mandatum’s result. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Second quarter 2024 in brief 9 ===== SIDA 10 ===== Business areas If If P&C is the leading property and casualty insurer in the Nordic region, where it offers solutions in all major lines of business through its four business areas; Private, Commercial, Industrial and Baltic. If P&C’s business model is based on high customer satisfaction, best in class underwriting and leveraging the scale benefits that its unified Nordic model offers. Excellent digital sales and service capabilities are a core part of If’s strategy, particularly in the Private and SME Commercial market segments. Results EURm 1–6/2024 1–6/2023 Change, % 4–6/2024 4–6/2023 Change, % Gross written premiums 3,502 3,273 7 1,407 1,307 8 Insurance revenue, net 2,587 2,466 5 1,297 1,231 5 Claims incurred, net -1,660 -1,520 9 -806 -761 6 Operating expenses and claims handling costs -537 -519 3 -272 -260 4 Insurance service result / underwriting result 390 427 -9 219 210 4 Net investment income 381 339 13 167 100 68 Insurance finance income or expense, net -27 -101 -73 -2 13 0 Net financial result 354 238 49 165 112 47 Other items -9 -8 10 -5 -2 119 Profit before taxes 735 657 12 379 320 18 Key figures 1–6/2024 1–6/2023 Change 4–6/2024 4–6/2023 Change Combined ratio, % 84.9 82.7 2.2 83.1 82.9 0.2 Cost ratio, % 20.8 21.0 -0.3 21.0 21.1 -0.2 Risk ratio, % 64.2 61.6 2.5 62.2 61.8 0.4 Large claims 0.8 0.2 0.6 4.4 3.1 1.3 Severe weather 4.2 2.6 1.5 0.4 4.0 -3.6 Risk adjustment and other technical effects, current year % 1.5 1.1 0.3 1.2 0.7 0.4 Prior year development, % -4.0 -4.1 0.2 -3.8 -6.0 2.2 Adjusted risk ratio, current year, % 61.7 61.8 -0.1 60.0 59.8 0.1 Discounting effect, current year, % -3.0 -3.2 0.2 -3.0 -3.4 0.4 Undiscounted adjusted risk ratio, current year, % 64.7 65.0 -0.3 62.9 63.2 -0.3 Loss ratio, % 69.7 67.3 2.4 67.6 67.4 0.1 Expense ratio, % 15.3 15.4 -0.1 15.6 15.5 0.1 All key figures in the table above are calculated on a net basis. Key ratios are based on SEK figures. Large claims measured against budget but severe weather claims are reported in full; negative figures indicate a positive outcome. Severe weather includes natural catastrophes. Negative figures for prior year development indicate positive reserve run-off. The discounting effect represents the impact of discounting of current year claims reserves on the risk ratio. Underwriting performance If reported an insurance service result of EUR 390 million (427) and a combined ratio of 84.9 per cent (82.7) for the first half of 2024. The underlying margin trend remained positive with an undiscounted adjusted risk ratio improvement of 0.3 percentage points and a reduction in the cost ratio. The second quarter was affected by several large claims in Industrial and Commercial, while severe weather claims were limited. If delivered a second quarter insurance service result of EUR 219 million (210) and the combined ratio stood at 83.1 per cent (82.9). The undiscounted adjusted risk ratio improved by 0.3 percentage points and the cost ratio reduced compared to the second quarter last year. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Business areas 10 ===== SIDA 11 ===== Premium development If reported gross written premiums, GWP, of EUR 3,502 million (3,273) in the first six months of 2024. Excluding currency effects, premiums grew by 7.3 per cent year-on-year. Growth was robust across business areas and countries and driven primarily by rate increases exceeding Nordic claims inflation. The strong development benefited from successful 1 January renewals in business areas Industrial and Commercial with continued rate increases, and high retention. Currency adjusted premium growth in the second quarter stood at 6.7 per cent. In January-June 2024 business area Private’s currency adjusted premium growth was 6.7 per cent mainly driven by rate increases to cover claims inflation. The positive development was supported by 12 per cent growth in personal insurance, and 6 per cent growth in property insurance. Growth in the motor product was dampened by continued low new car sales volumes and stood at 5 per cent. Geographically, growth was particularly strong in Norway. Currency adjusted premium growth in the second quarter amounted to 6.2 per cent. The retention rate in Private in the second quarter of 2024 remained at 89 per cent, despite rate adjustments. Private digital sales growth momentum continued to be strong, with an increase of 6 per cent year-on-year. In the first six months, new car sales remained weak across the region, with numbers down by 6 per cent year-on- year for both the Nordics and If’s largest market Sweden. Excluding the impact of the Swedish mobility business, currency adjusted GWP growth January–June was 7.5 per cent for Private and 7.6 per cent for If. Currency adjusted GWP growth in Commercial for January–June 2024 was 5.9 per cent. The positive development was supported by healthy growth in all countries, with Sweden and Norway being particularly strong. Successful renewals and rate actions in line with claims inflation supported the growth. Second quarter currency adjusted GWP growth stood at 8.4 per cent and benefited from SME segment growth of 8 per cent. Commercial digital sales increased by 18 per cent year-on-year, driven by increased usage of self-service solutions and an expansion of the digital offerings. In the first six months of 2024 Industrial saw GWP growth of 10.4 per cent on a currency adjusted basis. Inflation driven rate increases, particularly in the property segment, and a good outcome in renewals at the beginning of the year contributed to the positive development. Currency adjusted premium growth in the second quarter stood at 6.0 per cent. If’s Baltic business delivered GWP growth of 8.7 per cent in January–June 2024. The positive development was mainly driven by an increase in policy numbers and repricing initiatives to mitigate claims inflation. Growth was strong across the Baltics, particularly in Latvia and Estonia. Second quarter premium growth was 8.9 per cent. Combined ratio development If reported combined ratios of 84.9 per cent (82.7) and 83.1 per cent (82.9) for the first half and second quarter, respectively. After a favourable large claims outcome in the first quarter, the second quarter saw several large claims affecting both Industrial and Commercial. Conversely, the first quarter was adversely affected by an unusually severe Nordic winter, while second quarter severe weather claims were limited. If’s large claims outcome is reported as a deviation against budget, while severe weather and natural catastrophe effects are disclosed in full. Prior year gains in the first six months stood at 4.0 per cent (4.1) and the risk adjustment and other technical effects had an impact of 1.5 percentage points (1.1). In the second quarter, prior year gains amounted to 3.8 per cent (6.0) and the risk adjustment and other technical effects amounted stood at 1.2 per cent (0.7). The discounting effect was 3.0 per cent (3.2), and 3.0 per cent (3.4) for the first half of the year and the second quarter respectively. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Business areas 11 ===== SIDA 12 ===== In total, the risk ratio deteriorated by 2.5 percentage points year-on-year to 64.2 per cent (61.6) in the first half of 2024. The undiscounted adjusted risk ratio improved by 0.3 percentage points year-on-year. In the second quarter the risk ratio was 62.2 (61.8), while the undiscounted adjusted risk ratio improved by 0.3 percentage points. The cost ratio developed in line with If P&C’s target for 2024–2026 of a ~20 basis point yearly cost ratio reduction, both for the quarter and half-year. Education and development costs are included in the cost ratio. Combined ratio, % Risk ratio, % 1–6/2024 1–6/2023 Change, % 1–6/2024 1–6/2023 Change, % Private 84.6 81.9 2.6 64.0 61.0 3.0 Commercial 85.9 82.2 3.6 64.4 60.4 4.0 Industrial 86.9 88.3 -1.5 67.6 69.4 -1.8 Baltic 87.6 88.0 -0.3 61.8 61.9 -0.1 Sweden 79.0 84.1 -5.1 59.5 64.9 -5.3 Norway 84.0 86.9 -3.0 64.0 66.4 -2.3 Finland 87.5 76.4 11.2 66.1 54.2 11.9 Denmark 105.3 79.8 25.5 80.2 54.5 25.7 Combined ratio, % Risk ratio, % 4–6/2024 4–6/2023 Change, % 4–6/2024 4–6/2023 Change, % Private 79.9 81.8 -1.9 59.2 60.8 -1.6 Commercial 87.9 80.6 7.4 66.5 58.6 7.9 Industrial 90.3 95.5 -5.2 70.4 75.9 -5.5 Baltic 85.1 85.9 -0.8 58.6 59.9 -1.3 Sweden 69.1 87.7 -18.6 49.2 68.2 -19.0 Norway 79.8 87.8 -8.0 59.9 67.3 -7.4 Finland 89.7 74.0 15.8 68.2 51.6 16.7 Denmark 129.7 74.8 54.9 104.1 49.1 55.0 Net financial result For the first half of 2024, If reported a net financial result of EUR 354 million (238). The mark-to-market return on investments stood at 3.4 per cent (3.2), driven by increased interest rates and positive development in equity markets. The corresponding numbers for the second quarter were EUR 165 million (112) and 1.6 per cent (0.9). The investment portfolio has gradually been reinvested at higher rates. At the end of June, fixed income running yield was 4.3 per cent (3.8), broadly unchanged from the first quarter. In January–June 2024 the unwind of discounting amounted to EUR -87 million (-83) and changes in discount rates had an impact of EUR 64 million (-10). The second quarter the unwind of discounting was EUR -44 million (-38), and effects from changes in discount rates amounted to EUR 40 million (54). HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Business areas 12 ===== SIDA 13 ===== Topdanmark Topdanmark is one of the largest P&C insurance companies in Denmark. It focuses on the private, agricultural, and SME markets. The company is listed on Nasdaq Copenhagen. Results EURm 1–6/2024 1–6/2023 Change, % 4–6/2024 4–6/2023 Change, % Gross written premiums 929 846 10 276 242 14 Insurance revenue, net 722 635 14 361 317 14 Claims incurred and claims handling costs, net -483 -403 20 -242 -200 21 Operating expenses -129 -115 12 -67 -57 18 Insurance service result / underwriting result 110 117 -6 52 61 -14 Net investment income 29 37 -21 7 10 -34 Insurance finance income or expense, net 6 -28 — 6 -18 — Net financial result 35 9 311 13 -8 — Other items -34 -21 60 -16 -11 46 Profit before taxes 112 105 7 49 42 17 Key figures 1–6/2024 1–6/2023 Change 4–6/2024 4–6/2023 Change Combined ratio, % 84.7 81.5 3.2 85.5 80.8 4.6 Loss ratio, % 66.8 63.4 3.4 67.0 62.9 4.1 Expense ratio, % 17.9 18.1 -0.2 18.5 17.9 0.6 All key figures in the table above are calculated on a net basis. Sampo plc held 44.0 million shares in Topdanmark at 30 June 2024. The holding remains unchanged from the end of March 2024 and corresponds to approximately 49.5 per cent of all outstanding shares and votes in Topdanmark (excluding Topdanmark treasury shares). The market value of the holding was EUR 2,171 million on 30 June 2024. The first half of 2024 was marked by a high frequency of weather-related claims and a deterioration in the underlying claims ratio, with the combined ratio for Topdanmark increasing to 84.7 per cent (81.5) and underwriting result decreasing to EUR 110 million (117) in January–June 2024. With the support of increased net financial result, Topdanmark’s profit before taxes increased to EUR 112 million (105) for January–June 2024 in Sampo Group’s profit and loss account. The result included one-off costs of DKK 195 million (EUR 26 million) after tax related to the agreement Topdanmark entered with Nordea on 1 May 2024 on the completion of the IT separation of Topdanmark Liv Holding A/S. At the same time, Topdanmark renewed the distribution agreement with Nordea by up to five years. On 17 June 2024, Topdanmark and Sampo entered into a combination agreement pursuant to which Sampo will make a recommended public tender offer (share exchange offer) to the shareholders of Topdanmark. The offer period is expected to be launched on 9 August 2024. Further details on the offer are available at section Other developments. Further information on Topdanmark A/S and its January–June 2024 result is available at www.topdanmark.com. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Business areas 13 ===== SIDA 14 ===== Hastings Hastings is one of the leading digital P&C insurance providers in the UK predominantly focused on serving UK car, van, bike and home insurance customers. Hastings has over 3 million customers and operates via its two main trading subsidiaries, Hastings Insurance Services Limited in the UK and Advantage Insurance Company in Gibraltar. Results EURm 1–6/2024 1–6/2023 Change, % 4–6/2024 4–6/2023 Change, % Gross written premiums 1,028 798 29 562 435 29 Brokerage revenue 194 179 8 101 97 4 Insurance revenue, net (incl. brokerage) 768 584 32 399 309 29 Claims incurred and claims handling costs, net -441 -330 33 -221 -168 32 Operating expenses -248 -200 24 -130 -106 23 Underwriting result 80 54 49 48 35 37 Net investment income 24 -2 — 13 -16 — Insurance finance income or expense, net -12 -4 216 -6 3 — Net financial result 12 -6 — 7 -12 — Other items -21 -21 0 -10 -6 86 Profit before taxes 71 27 163 45 17 155 Key figures 1–6/2024 1–6/2023 Change 4–6/2024 4–6/2023 Change Operating ratio, % 89.6 90.8 -1.2 87.9 88.6 -0.7 Live customer policies (millions) 3.6 3.4 0.2 All key figures in the table above are calculated on a net basis. Hastings’ gross written premium for the period increased 26 per cent year-on-year on a constant currency basis to EUR 1,028 million (798), reflecting rate increases implemented during 2023 in response to significant claims inflation, together with increases in live customer policies (LCP). Total LCP increased to 3.6 million, up 6 per cent year-on-year, as consumer usage of price comparison websites (‘PCWs’) remained strong. Motor policies increased by 2 per cent year-on-year after solid growth in the second quarter, while home LCP grew by 26 per cent year-on- year. In the first six months of 2024, Hastings has observed a moderate slow-down in claims cost inflation in comparison to the prior year, with ongoing increases in settled claims costs offset by reduced claims frequencies. The reduction in claims volumes reflect both a benign weather experience and the impact of pricing and claims initiatives. The ongoing uncertainty in claims trends has been prudently reflected in the assumptions used to book the loss ratio for the first half of 2024. The underwriting result for the first half increased by 49 per cent year-on-year to EUR 80 million (54). Operating expenses increased at a slower rate than revenue growth, predominantly driven by acquisition expenses related to higher levels of new business, alongside investment in customer service and digital initiatives. Hastings’ operating ratio for the first six months of the year improved to 89.6 per cent (90.8), with an operating ratio of 87.9 per cent (88.6) for the second quarter, driven mainly by a stronger loss ratio. The net financial result improved to EUR 12 million (-6) as a result of the higher earned interest rates on invested assets, partially offset by a higher discounting impact in 2024. As a result of both the higher underwriting and higher net financial result, Hastings’ profit before taxes increased to EUR 71 million (27). Included within other items is EUR 23 million (19) of non-operational amortisation related to intangible assets identified on acquisition of the Hastings Group by Sampo plc in 2020, without which profit before taxes would have been EUR 94 million (45). HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Business areas 14 ===== SIDA 15 ===== Holding Sampo plc is the parent company of Sampo Group and responsible for the Group’s strategy and capital management activities. In addition to the Group’s insurance subsidiaries, a small number of direct investments are held in the holding company. Results EURm 1–6/2024 1–6/2023 Change, % 4–6/2024 4–6/2023 Change, % Net investment income 48 -4 — -2 18 — Other income 0 0 110 0 0 858 Other expenses -24 -20 -20 -11 -12 11 Finance expenses -34 -36 8 -16 -20 21 Profit before taxes -10 -60 84 -29 -15 -93 Holding segment’s profit before taxes for January–June 2024 was EUR -10 million (-60), as net investment income increased to EUR 48 million (-4) in the first half of 2024. The second quarter net investment income included a valuation change of EUR -40 million on Nexi, broadly offsetting the valuation gain of EUR 41 million on the first quarter. The second quarter valuation loss on Nexi was partly offset by gains on FX and hedging instruments. The holding in Saxo Bank was sold to Mandatum at EUR 302 million on a transaction finalized in May. Further details on the transaction are available at Other developments. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Business areas 15 ===== SIDA 16 ===== Financial position Group solvency Sampo Group’s Solvency II ratio, net of EUR 800 million capital deployment announced on 17 June 2024 and dividend accrual based on the regular dividend of EUR 1.60 per share for 2023, amounted to 179 per cent at the end of June 2024. The Solvency II coverage stood broadly unchanged compared to 180 per cent (pro forma of demerger related transactions) at the end of the first quarter. Sampo targets a Solvency II ratio of 150–190 per cent. During the second quarter, Sampo received approval for its Group Partial Internal Model (PIM) from the Swedish FSA (Finansinspektionen). The adoption of PIM in the Group’s Solvency II calculation had a 17 percentage points positive effect on Solvency II coverage. In addition, solvency was supported by solid second quarter results and favourable market movements. Combined with the positive effect from PIM, these offset the effect of from the EUR 800 million capital deployment being deducted from own funds. The regulatory Solvency II ratio, excluding dividend accrual, amounted to 192 per cent based on own funds of EUR 5,695 million and solvency capital requirement of EUR 2,962 million at the end of June 2024. Financial leverage position Sampo Group’s financial leverage is calculated as Group financial debt divided by the sum of IFRS shareholders’ equity and financial debt. The Group targets financial leverage of below 30 per cent. The Group’s shareholders’ equity amounted to EUR 7,349 million and financial debt to EUR 2,599 million at the end of June 2024, translating into a financial leverage of 26.1 per cent, up from 24.6 per cent at the end of March 2024. The increase was driven by the dividend payment for 2023 in May. Adjusted for the dividend payment, the financial leverage improved 0.7 percentage points from 26.8 per cent, driven by second quarter results. More information on Sampo Group’s outstanding debt issues is available at www.sampo.com/debtfinancing. Ratings Relevant ratings for Sampo Group companies remained unchanged during the second quarter. The ratings on 30 June 2024 are presented in the table below. Rated company Moody’s Standard & Poor’s Rating Outlook Rating Outlook Sampo plc – Issuer Credit Rating A2 Stable A Stable If P&C Insurance Ltd – Insurance Financial Strength Rating Aa3 Stable AA- Stable If P&C Insurance Holding Ltd (publ) - Issuer Credit Rating - - A Stable HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Financial position 16 ===== SIDA 17 ===== Other developments Public exchange offer for Topdanmark On 17 June 2024, Sampo announced that Sampo and Topdanmark have entered into a combination agreement, pursuant to which Sampo will make a recommended best and final public exchange offer to acquire all of the outstanding shares in Topdanmark not already owned by Sampo. Under the terms of the offer, Topdanmark shareholders will receive 1.25 newly issued Sampo A shares in exchange for each share held in Topdanmark. Based on Sampo’s closing share price of EUR 39.29 on Nasdaq Helsinki on 14 June 2024, the offer represents a value per Topdanmark share of DKK 366.38, valuing the entire outstanding share capital of Topdanmark at DKK 33 billion. The consideration represents a premium of 27 per cent to the closing share price of Topdanmark on Nasdaq Copenhagen on 14 June 2024 of DKK 289.60. In aggregate, up to a total of 57,468,782 new A shares in Sampo will be issued as share consideration. Subject to all Topdanmark shares (not including Topdanmark shares already owned by Sampo) being tendered in the offer, the Topdanmark shareholders will receive new A shares representing in aggregate an approximate ownership of up to 10.3 per cent of Sampo. The offer period is expected to be launched on 9 August 2024 and to expire on 9 September 2024. Sampo reserves the right to extend the offer period. Settlement and completion of the offer are expected to occur during September. Following completion of the offer, Sampo intends to integrate Topdanmark into If P&C to strengthen its position as one of the leading insurers in the Danish P&C insurance market and to consolidate Sampo Group’s leadership position in the Nordics. The total annual pre-tax run-rate cost and revenue synergies are expected to amount to approximately EUR 95 million and expected to drive EPS accretion of approximately 6 per cent, based on 2025 consensus earnings expectations. Approximately two-thirds of the EPS accretion relates to the EUR 800 million deployed to offset share count dilution through buybacks, and for the potential squeeze out, and approximately one-third relates to pure transaction effects. The realization of synergies is expected to be phased in until 2028 and one-off integration costs are estimated at approximately EUR 150 million and expected to be incurred upfront (pending closing). Additional potential net savings from lower one-off IT investments related to Topdanmark’s ongoing digital transformation (not included in run-rate synergies), may also be possible. After the end of the reporting period, Sampo’s Extraordinary General Meeting held on 9 July 2024 authorised the Board to resolve on a share issue to acquire Topdanmark shares. In addition, Sampo announced on 8 July that all necessary regulatory approvals have been obtained for the exchange offer. Further information on the offer is available at www.sampo.com/topdanmark. Sale of holding in Saxo Bank On 13 May 2024, Sampo completed the sale of its 19.8 per cent stake in Saxo Bank to Mandatum, as agreed in connection with the partial demerger completed in 2023. The transaction price was EUR 302 million, representing the price agreed in the demerger adjusted for dividends received. Mandatum opted to settle the transaction in cash rather than to utilise the vendor loan of EUR 280 million offered by Sampo. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Other developments 17 ===== SIDA 18 ===== Shares and shareholders On 17 June 2024, Sampo announced a EUR 800 million capital deployment through a new share buyback programme and potential squeeze-out of Topdanmark minority shares. As the first step of the capital deployment, Sampo launched a buyback programme of EUR 400 million, which started on 18 June 2024 and will end no later than 31 October 2024. The maximum number of shares that can be repurchased is 20 million, corresponding to 4 per cent of the total number of shares in Sampo. The repurchased shares will be cancelled. In January-June 2024, Sampo repurchased 857,830 own A shares through the buyback programme announced on 17 June 2024, representing 0.17 per cent of the total share count. Sampo’s total share count, excluding the repurchased shares held by the company, amounted to 500,938,922 shares at the end of June 2024. Further details on the company’s share buyback programmes is available at www.sampo.com/sharebuyback. Share count development A shares of which held by the company B shares Total 2020 554,151,850 1,200,000 555,351,850 2021 554,151,850 -8,539,956 1,200,000 546,811,894 2022 516,379,512 -2,210,197 200,000 514,369,315 2023 501,596,752 200,000 501,796,752 3/2024 501,596,752 200,000 501,796,752 6/2024 501,596,752 -857,830 200,000 500,938,922 Repurchased own shares that were not yet cancelled at the end of each reporting period have been deducted from the total share count in the table above. Sampo did not receive any flagging notifications of change in holding pursuant to Chapter 9, Section 5 of the Securities Markets Act in January–June 2024. The latest notifications are available at www.sampo.com/flaggings. Remuneration A total of EUR 59 million (63), including social costs, was paid as short-term incentives in January–June 2024 in Sampo Group. In the same period, a total of 3 million (17) was paid as long-term incentives, all of which was paid out in Hastings and Topdanmark. The long-term incentive schemes in force in Sampo Group produced a negative result impact of EUR 10 million (-1). The terms of the long-term incentive schemes based on the financial instruments of Sampo plc are available www.sampo.com/incentiveterms. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Other developments 18 ===== SIDA 19 ===== Personnel Sampo Group’s average number of employees (FTE) was 13,787 (13,148) in January–June 2024. On 30 June 2024, the total number of staff was 13,976 (13,272). Sampo Group personnel Average personnel (FTE) 1–6/2024 % Average personnel (FTE) 1–6/2023 % By company If 8,001 58 7,793 59 Hastings 3,558 26 3,154 24 Topdanmark 2,167 16 2,149 16 Sampo plc 60 0.4 53 0.4 Total 13,787 100 13,148 100 By country United Kingdom 3,533 26 3,129 24 Denmark 2,740 20 2,751 21 Sweden 2,479 18 2,441 19 Finland 1,953 14 1,916 15 Norway 1,649 12 1,592 12 Other countries 1,432 10 1,319 10 Total 13,787 100 13,148 100 Events after the end of the reporting period Regulatory approvals for the exchange offer for Topdanmark On 8 July 2024, Sampo announced that it has received the necessary authorisation from the Danish Business Authority to complete the exchange offer for Topdanmark pursuant to the Danish Investment Screening Act. Following this, all regulatory approvals upon which the offer will be conditioned have been obtained. Extraordinary General Meeting Sampo’s Extraordinary General Meeting, held on 9 July 2024, authorised the Board of Directors to resolve on a share issue in accordance with the proposal of the Board of Directors. In order to enable the issuance of Sampo plc A shares to holders of Topdanmark shares as consideration for the acquisition of shares in Topdanmark in the exchange offer announced on 17 June 2024 (including in the exchange offer, in a subsequent compulsory acquisition of the remaining minority Topdanmark shares pursuant to sections 70 to 72 of the Danish Companies Act and otherwise), the Board of Directors was authorised to resolve, on one or several occasions, upon the issuance of up to a maximum of 57,468,782 new Sampo A shares which corresponds to approximately 11.5 per cent of all Sampo A shares on the date of the General Meeting’s notice, 17 June 2024, in deviation from the shareholders’ pre-emptive rights (directed share issue). The authorisation remains valid until 30 June 2025, and it does not revoke the authorisation to resolve upon a share issue without payment granted to the Board of Directors of Sampo plc by the Annual General Meeting held on 25 April 2024. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Other developments 19 ===== SIDA 20 ===== Share buyback programme Sampo’s share buyback programme announced on 17 June 2024 continued after the end of the reporting period. By 2 August 2024 market close, the company had bought in total 3,591,673 Sampo A shares representing 0.72 per cent of the total share count. The progress of the buyback programme can be followed on www.sampo.com/ sharebuyback. SAMPO PLC Board of Directors HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Other developments 20 ===== SIDA 21 ===== Conference call A conference call for investors and analysts will be arranged at 2:30 pm Finnish time (12:30 pm UK time). Please call tel. +1 786 697 3501, +44 (0) 33 0551 0200, +46 (0) 8 5052 0424, or +358 9 2319 5437. Conference passcode: Sampo Q2 The conference call can also be followed live at www.sampo.com/result. A recorded version will later be available at the same address. For more information, please contact Knut Arne Alsaker, Group CFO, tel. +358 10 516 0010 Sami Taipalus, Head of Investor Relations, tel. +358 10 516 0030 Maria Silander, Communications Manager, Media Relations, tel. +358 10 516 0031 The Investor Presentation and a video review with Group CEO Torbjörn Magnusson are available at www.sampo.com/result. Sampo will publish the Interim Statement for January-September 2024 on 6 November 2024. Distribution: Nasdaq Helsinki Nasdaq Stockholm London Stock Exchange FIN-FSA The principal media www.sampo.com HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Further information 21 ===== SIDA 22 ===== Key figures > Financial highlights 1–6/2024 1–6/2023 Group Gross written premiums & brokerage income EURm 5,631 5,097 Insurance revenue, net EURm 4,011 3,620 Insurance service result, net EURm 614 608 Underwriting result EURm 580 598 Net financial result EURm 445 229 Profit before taxes (P&C operations) EURm 909 722 Net profit for the equity holders EURm 653 575 Operating result EURm 549 546 Combined ratio % 85.8 83.8 Undiscounted underlying combined ratio, current year, % % 85.8 87.3 Solvency ratio 1 % 192 224 Financial leverage % 26.1 26.7 Return on own funds % 19.0 18.3 Return on equity % 17.9 10.1 Average number of staff 13,787 13,148 If Gross written premiums EURm 3,502 3,273 Insurance revenue, net EURm 2,587 2,466 Insurance service result/underwriting result EURm 390 427 Net financial result EURm 354 238 Profit before taxes EURm 735 657 Combined ratio % 84.9 82.7 Cost ratio % 20.8 21.0 Risk ratio % 64.2 61.6 Adjusted risk ratio, current year, % 3 % 61.7 61.8 Undiscounted adjusted risk ratio, current year, % 4 % 64.7 65.0 Loss ratio % 69.7 67.3 Expense ratio % 15.3 15.4 Return on equity % 29.7 19.8 Average number of staff 8,001 7,793 Topdanmark Gross written premiums EURm 929 846 Insurance revenue, net EURm 722 635 Insurance service result/underwriting result EURm 110 117 Net financial result EURm 35 9 Profit before taxes EURm 112 105 Combined ratio % 84.7 81.5 Loss ratio % 66.8 63.4 Expense ratio % 17.9 18.1 Average number of staff 2,167 2,149 HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Key figures 22 ===== SIDA 23 ===== > Key figures 1–6/2024 1–6/2023 Hastings GWP & brokerage income EURm 1,222 977 Insurance revenue, net EURm 702 518 Insurance service result, net EURm 114 64 Underwriting result EURm 80 54 Net financial result EURm 12 -6 Profit before taxes EURm 71 27 Operating ratio % 89.6 90.8 Loss ratio % 62.7 63.8 Return on equity % 18.6 17.5 Average number of staff 3,558 3,154 Holding Profit before taxes EURm -10 -60 Average number of staff 60 53 Per share key figures Earnings per share EUR 1.30 1.13 Earnings per share, continuing operations EUR 1.30 0.99 Earnings per share, discontinuing operations EUR — 0.14 Operating result per share EUR 1.09 1.07 Equity per share EUR 13.91 16.45 Net asset value per share EUR 15.27 17.42 Adjusted share price, high 2 EUR 41.80 49.73 Adjusted share price, low 2 EUR 37.38 40.64 Market capitalisation 2 EURm 20,088 20,744 1 The Group solvency is calculated according to the consolidation method defined in the Solvency II Directive (2009/138/EC). 2 Share prices for 2023 have been adjusted to reflect the separation of Mandatum Group in the partial demerger. 3 Adjusted risk ratio illustrates the underlying underwriting performance as it excludes certain volatile effects such as large and severe weather and prior year development on risk ratio. 4 Undiscounted adjusted risk ratio excludes the effect from current year discounting on adjusted risk ratio and illustrates the underlying current year underwriting performance. The number of shares used at the reporting date was 500,938,922 and the average number during the financial period 501,760,937. In calculating the key figures the tax corresponding to the result for the accounting period has been taken into account. In the net asset value per share, the Group valuation difference on the listed subsidiary Topdanmark has been taken into account. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Key figures 23 ===== SIDA 24 ===== Calculation of key figures Return on equity, % + total comprehensive income attributable to owners of the parent (annualised) x 100 % + total equity attributable to owners of the parent (average of values 1 Jan. and the end of reporting period) Return on Own funds, % + operating result (annualised) + SII own funds x 100 %(average of values 1 Jan. and the end of reporting period) Financial leverage financial debt x 100 %equity + financial debt Insurance revenue, net + insurance revenue, gross - reinsurers' share of insurance revenue - quota share premium expense (Hastings) insurance revenue, net Underwriting result + insurance revenue, net + other income (Hastings) - claims incurred - operating expenses underwriting result Operating result + P&C operations’ (incl. Sampo plc) profit after tax - non-controlling interest in P&C operations - unrealised gains/losses on investments (excl. derivatives) in P&C operations - result effect from changes in discount rates in P&C operations - non-operational amortisations in P&C operations - non-recurring items - adjustment on taxes operating result Combined ratio for P&C insurance, % + claims incurred + operating expenses x 100 % + insurance revenue, net + other revenue (Hastings) Risk ratio for P&C insurance, % + claims incurred – claims settlement expenses x 100 %insurance revenue, net HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Key figures 24 ===== SIDA 25 ===== Cost ratio for P&C insurance, % + operating expenses + claims settlement expenses x 100 %insurance revenue, net Loss ratio for P&C insurance, % + claims incurred x 100 %insurance revenue, net Expense ratio for P&C insurance, % + operating expenses x 100 %insurance revenue, net Operating ratio for Hastings, % + claims incurred + acquisition costs + other operating expenses + depreciation and operational amortisation x 100 % + insurance revenue, net + other revenue Per share key figures Earnings per share profit for the financial period attributable to owners of the parent adjusted average number of shares Operating result per share operating result adjusted average number of shares Equity per share equity attributable to owners of the parent adjusted number of shares at the balance sheet date Net asset value per share + equity attributable to owners of the parent ± valuation differences on listed Group companies adjusted number of shares at balance sheet date Market capitalisation number of shares at the balance sheet date x closing share price at the balance sheet date HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Key figures 25 ===== SIDA 26 ===== Exchange rates used in reporting 1–6/2024 1–3/2024 1–12/2023 1–9/2023 1–6/2023 EURSEK Income statement (average) 11.3945 11.2814 11.4745 11.4787 11.3310 Balance sheet (at end of period) 11.3595 11.5250 11.0960 11.5325 11.8055 DKKSEK Income statement (average) 1.5274 1.5127 1.5406 1.5411 1.5219 Balance sheet (at end of period) 1.5232 1.5453 1.4888 1.5465 1.5852 NOKSEK Income statement (average) 0.9912 0.9880 1.0048 1.0116 1.0013 Balance sheet (at end of period) 0.9968 0.9851 0.9871 1.0248 1.0087 EURDKK Income statement (average) 7.4579 7.4562 7.4510 7.4486 7.4464 Balance sheet (at end of period) 7.4575 7.4580 7.4529 7.4571 7.4474 EURGBP Income statement (average) 0.8547 0.8563 0.8697 0.8707 0.8764 Balance sheet (at end of period) 0.8464 0.8551 0.8691 0.8646 0.8583 HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 Key figures 26 ===== SIDA 27 ===== Group quarterly result EURm 4–6/2024 1–3/2024 10–12/2023 7–9/2023 4–6/2023 GWP & brokerage income 2,333 3,297 1,864 1,909 2,081 Insurance revenue, net (incl. brokerage) 2,057 2,020 1,939 1,911 1,857 Claims incurred, net -1,338 -1,387 -1,282 -1,278 -1,198 Operating expenses -399 -373 -376 -348 -353 Underwriting result 321 260 281 284 306 Net investment income 183 295 517 127 108 Insurance finance income or expense, net -3 -30 -342 29 -2 Net financial result 180 265 175 156 106 Other items -57 -60 -88 -50 -50 Profit before taxes 444 465 368 391 363 Income taxes -101 -96 -88 -79 -81 Profit from the continuing operations 343 369 280 312 281 Discontinued operations, net of tax — — 111 71 41 Divested operations, net of tax -26 — — — — Net profit 317 369 391 383 323 Other comprehensive income Items reclassifiable to profit or loss Exchange differences 70 -87 87 51 -76 Cash flow hedges 1 1 -2 -1 2 Total items reclassifiable to profit or loss, net of tax 71 -87 85 50 -74 Items not reclassifiable to profit or loss Actuarial gains and losses from defined pension plans -3 3 -25 1 18 Taxes 1 -1 5 0 -4 Total items not reclassifiable to profit or loss, net of tax -3 2 -20 1 14 Other comprehensive income total, net of tax 68 -84 65 51 -60 Total comprehensive income 385 285 457 433 263 Profit attributable to Owners of the parent 310 343 382 366 304 Non-controlling interests 7 26 9 17 18 Total comprehensive income attributable to Owners of the parent 378 259 447 417 245 Non-controlling interests 7 26 9 17 18 In the comparative year 2023, Mandatum subgroup is presented as discontinued operations in one line. For further information, please see note 11. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 27 ===== SIDA 28 ===== Statement of profit and other comprehensive income EURm Note 1-6/2024 1-6/2023 Insurance revenue 4,593 4,093 Insurance service expenses -3,811 -3,355 Reinsurance result -169 -130 Insurance service result 1 614 608 Net investment income 2 478 362 Net finance income or expense from insurance contracts 3 -33 -133 Insurance finance income or expense, gross -44 -128 Insurance finance income or expense, reinsurance 11 -5 Net financial result 445 229 Other income 4 158 139 Other expenses -258 -208 Finance expenses -52 -47 Profit before taxes 909 722 Income taxes -196 -172 Profit from the continuing operations 712 550 Discontinued operations, net of tax 11 — 70 Divested operations, net of tax 12 -26 — Net profit 686 619 Other comprehensive income Items reclassifiable to profit or loss Exchange differences -17 -139 Cash flow hedges 1 1 Total items reclassifiable to profit or loss, net of tax -16 -137 Items not reclassifiable to profit or loss Actuarial gains and losses from defined pension plans 0 17 Taxes 0 -4 Total items not reclassifiable to profit or loss, net of tax 0 14 Other comprehensive income total, net of tax -16 -124 Total comprehensive income 670 496 Profit attributable to Owners of the parent 653 575 Non-controlling interests 33 44 Total comprehensive income attributable to Owners of the parent 637 452 Non-controlling interests 33 44 Earnings per share (EPS), EUR 1.30 1.13 Earnings per share, continuing operations, EUR 1.30 0.99 In the comparative period 2023, Mandatum subgroup was segregated from the Group in a partial demerger and is presented as discontinued operations in one line. For further information, please see note 11. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 28 ===== SIDA 29 ===== Consolidated balance sheet EURm Note 6/2024 12/2023 Assets Property, plant and equipment 299 318 Intangible assets 5 3,637 3,637 Investments in associates 13 12 Financial assets 6,7,8 15,882 15,757 Deferred income tax 1 3 Reinsurance contract assets 9 2,511 2,282 Other assets 907 800 Cash and cash equivalents 1,487 1,415 Total assets 24,739 24,225 Liabilities Insurance contract liabilities 9 12,418 11,716 Subordinated debts 10 1,642 1,645 Other financial liabilities 10 1,303 1,269 Deferred income tax 570 567 Other liabilities 1,457 1,342 Total liabilities 17,390 16,538 Equity Share capital 98 98 Reserves 1,530 1,530 Retained earnings 6,099 6,378 Other components of equity -760 -743 Equity attributable to owners of the parent 6,967 7,263 Non-controlling interests 382 424 Total equity 7,349 7,687 Total equity and liabilities 24,739 24,225 HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 29 ===== SIDA 30 ===== Statement of changes in equity EURm Share capital Legal reserve Invested unres- tricted equity Transla- tion of foreign opera- tions Available- for-sale financial assets Cash flow hedges Total Non- control- ling interest Total Equity at 31 December 2022 (IFRS 17) 98 4 1,527 8,482 -741 248 0 9,618 560 10,178 Impact of IFRS 9 transition 1 January 2023 — — — 248 — -248 — — — — Restated equity at 1 January 2023 98 4 1,527 8,730 -741 0 0 9,618 560 10,178 Changes in equity Dividends — — — -1,321 — — — -1,321 -187 -1,508 Acquisition of own shares — — — -448 — — — -448 — -448 Other changes in equity — — — -2 — — — -2 -5 -8 Profit for the reporting period — — — 575 — — — 575 44 619 Other comprehensive income for the period — — — 14 -139 — 1 -124 — -124 Total comprehensive income — — — 589 -139 — 1 452 44 496 Equity at 30 June 2023 98 4 1,527 7,548 -880 — 2 8,298 411 8,709 Equity at 1 January 2024 98 4 1,527 6,378 -742 — -1 7,263 424 7,687 Changes in equity Dividends — — — -903 — — — -903 -69 -972 Acquisition of own shares — — — -34 — — — -34 — -34 Other changes in equity — — — 6 — — 0 5 -6 -1 Profit for the reporting period — — — 653 — — — 653 33 686 Other comprehensive income for the period — — — 0 -17 — 1 -16 — -16 Total comprehensive income — — — 653 -17 — 1 637 33 670 Equity at 30 June 2024 98 4 1,527 6,099 -759 — -1 6,967 382 7,350 Retained earnings1 1 IAS 19 Pension benefits had a net effect of -0 million (14) on retained earnings. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 30 ===== SIDA 31 ===== Statement of cash flows EURm 1–6/2024 1–6/2023 Operating activities Profit before tax 882 809 Adjustments Depreciation and amortisation 87 63 Unrealised gains and losses arising from valuation -113 -229 Realised gains and losses on investments -73 -283 Change in liabilities for insurance and investment contracts 595 1,548 Other adjustments -56 271 Adjustments total 439 1,369 Change (+/-) in assets of operating activities Investments 1 -112 -427 Other assets -121 -112 Total -233 -540 Change (+/-) in liabilities of operating activities Financial liabilities 34 57 Other liabilities 92 -62 Paid taxes -156 -114 Paid interest -41 -47 Total -71 -166 Net cash from (or used in) operating activities 1,017 1,473 Investing activities Net investment in equipment and intangible assets -5 9 Net cash from (or used in) investing activities -5 9 Financing activities Dividends paid -903 -1,321 Dividends paid to non-controlling interests -69 -187 Acquisition of own shares -34 -448 Issue of debt securities 84 71 Repayments of debt securities in issue -25 -127 Net cash used in (or from) financing activities -947 -2,012 Total cash flows 65 -530 Cash and cash equivalents at the beginning of reporting period 1,415 3,073 Effects of exchange rate changes 7 -26 Cash and cash equivalents at the end of reporting period 1,487 2,517 Net change in cash and cash equivalents 65 -530 1 Investments include investment property and financial assets. Both in the financial year and the comparative year, the statement of cash flows includes both continuing and discontinued/divested operations. Profit before tax is therefore the total of Group’s profit and the discontinued/divested operations’ profit before taxes. In the financial year, subsequently, operating activities include EUR -26 million from divested activities. In the comparative year, the operating activities include EUR 290 million from the discontinued operations, investing activities EUR 19 million and financing activities EUR -180 million. The items of the statement of cash flows cannot be directly concluded from the balance sheets due to e.g. exchange rate differences, and acquisitions and disposals of subsidiaries during the period. Cash and cash equivalents include cash at bank and in hand EUR 1,173 million (2,907) and short-term deposits (max 3 months) EUR 314 million (166). HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 31 ===== SIDA 32 ===== Notes Accounting principles Sampo Group’s consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS) adopted by the EU. These interim financial statements are presented in accordance with IAS 34 Interim Financial Reporting. The same accounting principles and methods of computation are applied in this financial statement release as were applied in Sampo’s consolidated financial statements 2023, with the exception of an addition to the accounting principles described below. The financial statements 2023 are available on Sampo’s website www.sampo.com/year2023. Information presented in the Interim Statement is unaudited. Addition to accounting principles Investment component During the reporting period, investment components have been identified in reinsurance contracts held for cash flows repaid to a policyholder in all circumstances, i.e. regardless of whether an insured event occurs or not. Identified amounts of investment components are excluded from recognised amounts for reinsurance result in the statement of profit and other comprehensive income. Change in presentation The accounting policies for presentation applied in the financial statement release are the same as those applied in the financial statements 2023, except for the updated accounting policy for the presentation of the change in discounting effect relating to risk adjustment. The change in discounting effect is now allocated between the insurance service expenses and insurance finance income or expenses. Accounting principles requiring management judgement and key sources of estimation uncertainties Application of new or revised IFRSs and interpretations The Group will apply new or amended standards and interpretations related to the Group’s business in the financial years when they become effective, or if the effective date is other than the beginning of the financial year, during the financial year following the effective date. The new IFRSs coming into effect in financial year 2024 will not have any significant influence on the Group's financial reporting. Pillar II Sampo Group is within the scope of Pillar II regulations (EU Minimum Tax Directive and OECD Safe Harbour rules). Sampo Group companies have applied a temporary mandatory relief from deferred tax accounting for any potential impacts of the top-up tax and account for it as a current tax should it occur. Sampo Group will, as of fiscal year 2024, be subject to the global minimum top-up tax rules either at the ultimate parent entity level, by Sampo plc in Finland, or domestic top-up tax in the countries where Sampo Group companies operate and where such rules are enacted. At the reporting date, Sampo Group has identified that Hastings’ operations in Gibraltar are subject to the global minimum top-up tax rules. Discontinued operations in 2023 In order to to segregate Mandatum subgroup in the demerger of Sampo plc, Mandatum’s assets and liabilities were reclassified as a disposal group held for distribution to owners and related liabilities on 31 March 2023. In the statement of profit and other comprehensive income, the result of Mandatum is reported as a single line item as profit from the discontinued operations. The partial demerger was completed on 1 October 2023 and the first trading day for Mandatum on Nasdaq Helsinki was 2 October 2023. In the demerger, all the shares in Mandatum Holding Ltd (a wholly owned direct subsidiary of Sampo plc) and the related assets and liabilities were transferred HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 32 ===== SIDA 33 ===== without a liquidation procedure to Mandatum plc, a company incorporated in the demerger on the effective date. In addition, EUR 102 million of Sampo's general liabilities, not allocated to any specific business operations, were allocated to Mandatum plc. These liabilities cannot be legally transferred due to their nature, and therefore Sampo and Mandatum agreed on forming an equivalent debt relationship between them on 2 October 2023. Other significant events Public exchange offer for Topdanmark On 17 June 2024, Sampo announced that Sampo and Topdanmark have entered into a combination agreement, pursuant to which Sampo will make a recommended best and final public exchange offer to acquire all of the outstanding shares in Topdanmark not already owned by Sampo. Following completion of the offer, Sampo intends to integrate Topdanmark into If P&C to strengthen its position as one of the leading insurers in the Danish P&C insurance market and to strengthen Sampo Group’s leadership position in the Nordics. Further details on the offer are available at Half-year Financial report’s sections Other developments and Events after the balance sheet date. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 33 ===== SIDA 34 ===== Result by segment for six months ended 30 June 2024 EURm If Topdanmark Hastings Holding Elim. Sampo Group GWP & brokerage income 3,502 929 1,222 — -23 5,631 Insurance revenue, net (incl. brokerage) 2,587 722 768 — 0 4,077 Claims incurred, net -1,802 -483 -441 — 0 -2,725 Operating expenses -395 -129 -248 — 0 -772 Underwriting result 390 110 80 — 0 580 Net investment income 381 29 24 48 -4 478 Insurance finance income or expense, net -27 6 -12 — 0 -33 Net financial result 354 35 12 48 -4 445 Other items -9 -34 -21 -57 4 -117 Profit before taxes 735 112 71 -10 0 909 Income taxes -153 -30 -13 0 — -196 Profit after taxes 582 82 58 -9 0 712 Divested operations, net of tax — -26 — — — -26 Net profit 686 Other comprehensive income Items reclassifiable to profit or loss Exchange differences -72 -1 55 — — -17 Cash flow hedges — — 1 — — 1 Total items reclassifiable to profit or loss, net of tax -72 -1 57 — — -16 Items not reclassifiable to profit or loss Actuarial gains and losses from defined pension plans 0 — — — — 0 Taxes 0 — — — — 0 Total items not reclassifiable to profit or loss, net of tax 0 — — — — 0 Other comprehensive income, total net of tax -16 Total comprehensive income 510 55 115 -9 0 670 Profit attributable to Owners of the parent 653 Non-controlling interests 33 Total comprehensive income attributable to Owners of the parent 637 Non-controlling interests 33 HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 34 ===== SIDA 35 ===== Result by segment for six months ended 30 June 2023 EURm If Topdanmark Hastings Holding Elim. Sampo Group GWP & brokerage income 3,273 846 977 — — 5,097 Insurance revenue, net (incl. brokerage) 2,466 635 584 — — 3,686 Claims incurred, net -1,659 -403 -330 — — -2,392 Operating expenses -380 -115 -200 — — -695 Underwriting result 427 117 54 — — 598 Net investment income 339 37 -2 -4 -7 362 Insurance finance income or expense, net -101 -28 -4 — — -133 Net financial result 238 9 -6 -4 -7 229 Other items -8 -21 -21 -56 1 -105 Profit before taxes 657 105 27 -60 -6 722 Income taxes -138 -28 -5 0 — -172 Profit from the continuing operations 519 76 22 -60 -6 550 Discontinued operations, net of tax 1 — — — — 6 70 Net profit 619 Other comprehensive income Items reclassifiable to profit or loss Exchange differences -200 -2 63 — — -139 Cash flow hedges — — 1 — — 1 Total items reclassifiable to profit or loss, net of tax -200 -2 65 — — -137 Items not reclassifiable to profit or loss Actuarial gains and losses from defined pension plans 17 — — — — 17 Taxes -4 — — — — -4 Total items not reclassifiable to profit or loss, net of tax 14 — — — — 14 Total other comprehensive income for the continuing operations, net of tax -187 -2 65 — — -124 Total comprehensive income 332 74 86 -60 -6 496 Profit attributable to Owners of the parent 575 Non-controlling interests 44 Total comprehensive income attributable to Owners of the parent 452 Non-controlling interests 44 In the comparison year, Mandatum segment has been presented on a single line as discontinued operation, and therefore, Group total by lines do not reconcile to the segment totals. 1 The elimination totalling EUR 6 million is related to intra-segment operations between the reportable segments and discontinued operation. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 35 ===== SIDA 36 ===== Balance sheet by segment at 30 June 2024 EURm If Topdanmark Hastings Holding Elim. Sampo Group Assets Property, plant and equipment 162 116 16 4 — 299 Intangible assets 567 1,534 1,535 1 — 3,637 Investments in associates 4 9 — — — 13 Financial assets 10,704 2,152 1,793 7,345 -6,112 15,882 Deferred income tax 3 2 — 0 -4 1 Reinsurance contract assets 634 81 1,814 — -17 2,511 Other assets 635 95 153 26 -2 907 Cash and cash equivalents 244 25 426 793 — 1,487 Total assets 12,954 4,014 5,737 8,169 -6,135 24,739 Liabilities Insurance contract liabilities 7,307 2,035 3,093 — -17 12,418 Subordinated debts 132 148 — 1,490 -127 1,642 Other financial liabilities 23 50 252 978 — 1,303 Deferred income tax 371 127 71 — — 570 Other liabilities 1,075 164 143 76 -2 1,457 Total liabilities 8,909 2,523 3,560 2,544 -146 17,390 Equity Share capital 98 Reserves 1,530 Retained earnings 6,099 Other components of equity -760 Equity attributable to owners of the parent 6,967 Non-controlling interests 382 Total equity 7,349 Total equity and liabilities 24,739 . HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 36 ===== SIDA 37 ===== Balance sheet by segment at 31 December 2023 EURm If Topdanmark Hastings Holding Elim. Sampo Group Assets Property, plant and equipment 177 117 19 4 — 318 Intangible assets 579 1,545 1,512 1 — 3,637 Investments in associates 4 8 — — — 12 Financial assets 10,838 2,060 1,407 7,564 -6,112 15,757 Deferred income tax 4 4 — 0 -4 3 Reinsurance contract assets 563 79 1,640 — — 2,282 Other assets 553 89 136 23 0 800 Cash and cash equivalents 197 24 448 747 — 1,415 Total assets 12,915 3,926 5,162 8,339 -6,117 24,225 Liabilities Insurance contract liabilities 7,134 1,855 2,726 — — 11,716 Subordinated debts 135 148 — 1,490 -127 1,645 Other financial liabilities 58 46 186 979 — 1,269 Deferred income tax 352 139 76 — — 567 Other liabilities 1,011 162 112 58 0 1,342 Total liabilities 8,689 2,350 3,100 2,527 -128 16,538 Equity Share capital 98 Reserves 1,530 Retained earnings 6,378 Other components of equity -743 Equity attributable to owners of the parent 7,263 Non-controlling interests 424 Equity 7,687 Total equity and liabilities 24,225 HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 37 ===== SIDA 38 ===== Other notes 1 Insurance service result EURm 1-6/2024 1-6/2023 Insurance revenue Insurance contracts measured under PAA Gross written premiums 5,437 4,917 Change in liability for remaining coverage -971 -938 Brokerage revenue 128 113 Total insurance revenue from contracts measured under PAA 4,593 4,093 Total insurance revenue 4,593 4,093 Insurance service expenses Expenses related to claims incurred Claims paid and benefits -2,883 -2,591 Claims handling expenses -252 -226 Change in liability for incurred claims 61 65 Change in risk adjustment -82 11 Change in loss component 18 4 Insurance service expenses related to claims incurred -3,139 -2,736 Operating expenses -672 -619 Total insurance service expenses -3,811 -3,355 Reinsurance result Premiums -437 -473 Claims recovered 268 343 Total reinsurance result -169 -130 Total insurance service result 614 608 HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 38 ===== SIDA 39 ===== 2 Net investment income The table includes investment income and expenses from financial assets and liabilities held by the group companies. EURm 1-6/2024 1-6/2023 Derivative financial instruments Interest income 3 1 Interest expense -1 -2 Net gains or losses 25 83 Derivative financial instruments, total 27 82 Financial assets at fair value through profit or loss Debt securities Interest income 247 213 Net gains or losses -5 -12 Equity securities Dividend income 26 44 Net gains or losses 124 66 Funds Distributions 3 3 Interest income 4 7 Net gains or losses 47 45 Financial assets at fair value through profit or loss, total 446 365 Financial assets at amortised cost 17 5 Total income or expenses from financial assets 490 452 Other Expenses from asset management -10 -9 Other income 40 13 Other expenses -40 -90 Fee expenses 0 -1 Expenses from investment property -2 -4 Total other -12 -91 Total net investment income 478 362 The amount of expected credit losses on financial assets measured at amortised cost is presented in the note 6. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 39 ===== SIDA 40 ===== 3 Net finance income or expense from insurance contracts EURm 1-6/2024 1-6/2023 Insurance contracts Unwinding of discount rate -161 -147 Effect of changes in interest rates and other financial assumptions 117 19 Total finance income or expenses from insurance contracts -44 -128 Reinsurance contracts Unwinding of discount rate 41 34 Reinsurers' share of effect of changes in interest rates and other financial assumptions -30 -38 Total finance income or expenses from reinsurance contracts 11 -5 Net finance result insurance and reinsurance contracts -33 -133 4 Other income EURm 1-6/2024 1-6/2023 Other income 152 133 Income related to broker activities (IFRS 15) 6 6 Total other income 158 139 If’s other operating income includes approximately EUR 80 million (72) income from insurance operations without a transfer of insurance risk. Such income is primarily attributable i.e. to sales commission and services for administration and claims settlement in insurance contracts on behalf of other parties. This operating income is accounted for under IFRS 15 Revenue from Contracts with Customers. In addition, other operating income includes income from roadside assistance services provided by If’s subsidiary Viking Assistance Group AS, recognised when roadside assistance has been provided. Hastings’ operating income includes total of EUR 63 million (60) revenue recognised under IFRS 15 and consisting of fees and commission on panel providers, ancillary product income and other retail income. Income related to broker activities is also accounted for under IFRS 15, if there is no insurance risk transferred to Hastings. 5 Intangible assets EURm 6/2024 12/2023 Goodwill 2,480 2,469 Customer relations 409 452 Trademark 420 396 Other intangible assets 328 320 Group intangible assets, total 3,637 3,637 HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 40 ===== SIDA 41 ===== 6 Financial assets EURm 6/2024 12/2023 Financial assets Derivative financial instruments 23 38 Financial assets at fair value through profit or loss Debt securities 13,131 12,925 Equity securities 1,379 1,640 Funds 742 662 Deposits and other 47 40 Total financial assets at fair value through profit or loss 15,299 15,267 Financial assets measured at amortised cost Loans 560 451 Other 1 1 Total financial assets measured at amortised cost 560 452 Total financial assets 15,882 15,757 Loans measured at amortised cost include Hastings’ loans to customers amounting to EUR 303 million (EUR 186 million). The gross carrying amounts of the financial assets measured at amortised cost was EUR 577 million (EUR 468 million) and loss allowance was EUR 17 million (EUR 16 million). During the reporting period, the expected credit losses recognised in the income statement was EUR -2 million and in the comparative period EUR -4 million. On 13 May 2024, Sampo completed the sale of its 19.8 per cent stake in Saxo Bank to Mandatum, as agreed in connection with the partial demerger completed in 2023. The transaction price was EUR 302 million, representing the price agreed in the demerger adjusted for dividends received. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 41 ===== SIDA 42 ===== 7 Determination and hierarchy of fair values A majority of Sampo Group's financial assets are valued at fair value. The valuation is based on either published price quotations 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, for example, whether the market for the instrument is active, or if the inputs used in the valuation technique are observable. The classification of financial assets in hierarchy levels is assessed quarterly. 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. Fair values are "clean" fair values, i.e. less interest accruals. On level 1, the measurement of the instrument is based on quoted prices in active markets for identical assets or liabilities. Quoted prices in active markets are considered to represent the best estimate of fair value for related financial assets. On an active market quoted prices are easily and regularly available and represent actual and regularly occurring transactions at arm’s length distance. On level 2, inputs for the measurement of the instrument also include 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. Sampo Group’s level 3 assets consist mainly of few larger equity investments and investments in private equity and alternative funds. In level 3 equity investment is valued by using excess return model, in which value of a company is sum of capital invested currently in the company and the present value of excess returns that the company expects to make in the future. For private equity funds the valuation of the underlying investments is conducted by the fund manager who has all the relevant information required in the valuation process. The valuation is usually updated quarterly based on the value of the underlying assets and the amount of debt in the fund. There are several valuation methods, which can be based on, for example, the acquisition value of the investments, the value of publicly traded peer companies, the multiple based valuation or the cash flows of the underlying investments. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 42 ===== SIDA 43 ===== The carrying amounts and fair values of financial assets and financial liabilities, including their fair value hierarchy levels, are presented in the following table. Fair value information of financial assets and financial liabilities not measured at fair value is not presented in the table, if the carrying amount is a reasonable estimate of the fair value. Reporting period figures are presented in accordance with IFRS 9 Financial Instruments. EURm 30 June 2024 Carrying amount Level 1 Level 2 Level 3 Total Financial assets at fair value Derivative financial instruments Interest rate swaps 2 — 2 — 2 Foreign exchange derivatives 6 — 6 — 6 Other derivatives 15 — 15 — 15 Total 23 — 23 — 23 Financial assets at fair value through profit or loss Debt securities 13,131 8,722 4,390 19 13,131 Equity securities 1,379 927 24 428 1,379 Funds 742 479 104 159 742 Deposits and other 47 — 47 — 47 Total 15,299 10,129 4,565 606 15,299 Total financial assets measured at fair value 15,322 10,129 4,588 606 15,322 Financial assets measured at amortised cost Loans 560 — — 560 560 Other 1 — — 1 1 Total 560 — — 560 560 Total financial assets 15,882 10,129 4,588 1,166 15,882 HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 43 ===== SIDA 44 ===== EURm 30 June 2024 Carrying amount Level 1 Level 2 Level 3 Total Financial liabilities at fair value Derivative financial instruments Interest derivatives 50 — 50 — 50 Foreign exchange derivatives 23 — 23 — 23 Other derivatives 13 — 13 — 13 Total financial liabilities at fair value 87 — 87 — 87 Financial liabilities measured at amortised cost Subordinated debt securities Subordinated loans 1,642 1,485 148 — 1,633 Debt securities in issue Bonds 956 966 — — 966 Amounts owed to credit institutions 260 — 9 251 260 Financial liabilities measured at amortised cost total 2,859 2,452 157 251 2,860 Group financial liabilities, total 2,946 2,452 243 251 2,946 HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 44 ===== SIDA 45 ===== EURm 31 December 2023 Carrying amount Level 1 Level 2 Level 3 Total Financial assets at fair value Derivative financial instruments Interest rate swaps 3 — 3 — 3 Foreign exchange derivatives 20 — 20 — 20 Other derivatives 16 — 16 — 16 Total 38 — 38 — 38 Financial assets at fair value through profit or loss Debt securities 12,925 8,476 4,430 19 12,925 Equity securities 1,640 886 24 730 1,640 Funds 662 480 31 151 662 Deposits and other 40 — 40 — 40 Total 15,267 9,842 4,525 900 15,267 Total financial assets measured at fair value 15,305 9,842 4,563 900 15,305 Financial assets measured at amortised cost Loans 451 — — 451 451 Other 1 — — 1 1 Total 452 — — 452 452 Total financial assets 15,757 9,842 4,563 1,352 15,756 HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 45 ===== SIDA 46 ===== EURm 31 December 2023 Carrying amount Level 1 Level 2 Level 3 Total Financial liabilities at fair value Derivative financial instruments Interest derivatives 46 2 44 — 46 Foreign exchange derivatives 58 — 58 — 58 Other derivatives 12 — 12 — 12 Total financial liabilities at fair value 116 2 114 — 116 Financial liabilities measured at amortised cost Subordinated debt securities Subordinated loans 1,645 1,448 148 — 1,596 Debt securities in issue Bonds 959 936 — — 936 Amounts owed to credit institutions 194 — 9 184 194 Financial liabilities measured at amortised cost total 2,798 2,385 157 184 2,726 Group financial liabilities, total 2,914 2,387 271 184 2,842 HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 46 ===== SIDA 47 ===== Transfers between levels 1 and 2 EURm 1-6/2024 1-12/2023 Transfers between levels 1 and 2 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 at fair value through profit or loss Debt securities 147 163 378 334 Total 147 163 378 334 Transfers are based mainly on the changes of trading volume information provided by an external service provider. Sensitivity analysis of fair values The sensitivity of financial assets and liabilities to changes in exchange rates is assessed on business area level due to different base currencies. EURm 06/2024 12/2023 Recognised in profit or loss Recognised in profit or loss If 10 percentage point depreciation of all other currencies against SEK 4 4 Topdanmark 10 percentage point depreciation of all other currencies against DKK -1 -1 Hastings 10 percentage point depreciation of all other currencies against GBP 3 — Holding 10 percentage point depreciation of all other currencies against EUR -71 -73 The sensitivity analysis of the Group’s fair values of financial assets and liabilities in different market risk scenarios is presented in the following table. The effects represent the instantaneous effects of a one-off change in the underlying market variable on the fair values on 30 June 2024. The sensitivity analysis includes the effects of derivative positions. All sensitivities are calculated before taxes. EURm Interest rate Interest rate Equity Other financial assets 1% parallel shift down 1% parallel shift up 20% fall in prices 20% fall in prices Effect in profit/loss 369 -346 -281 -141 Total effect 369 -346 -281 -141 HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 47 ===== SIDA 48 ===== 8 Movements in level 3 financial instruments measured at fair value EURm Financial assets At 1 Jan Total gains/ losses in income statement Purchases and re- classifi- cations Sales Settle- ments At 30 June 2024 Financial assets at fair value through profit or loss Debt securities 19 0 — 0 -1 19 Equity securities 730 — — -302 — 428 Funds 151 1 7 — — 159 Total 900 1 7 -302 -1 606 EURm Financial assets At 1 Jan Total gains/ losses in income statement Purchases and re- classifi- cations Sales At 31 Dec 2023 Financial assets at fair value through profit or loss Debt securities 134 1 11 -126 19 Equity securities 763 -14 9 -28 730 Funds 212 -61 — 0 151 Total 1,109 -74 20 -155 900 Mandatum Group’s financial instruments on level 3 are not included in the opening balance as the reclassification as discontinued operation took place during Q1/2023. For further information on classification of Mandatum Group as discontinued operation, please see note 11. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 48 ===== SIDA 49 ===== Sensitivity analysis of level 3 financial instruments measured at fair value 06/2024 12/2023 EURm Carrying amount Effect of reasonably possible alternative assumptions (+/-) Carrying amount Effect of reasonably possible alternative assumptions (+/-) Financial assets at fair value through profit or loss (IFRS 9) Debt securities 19 0 19 0 Equity securities 428 -86 730 -146 Funds 159 -32 151 -30 Total 606 -117 900 -176 The value of financial assets regarding the debt security instruments has been tested by assuming a rise of 1 per cent in interest rate level in all maturities. For other financial assets, the prices were assumed to go down by 20 per cent. During the reporting period, on the basis of these alternative assumptions, a possible change in interest levels would cause a reduction of EUR -0 (-0) million for the debt instruments, and EUR -117 (-176) million valuation loss for other instruments in the Group’s statement of profit or loss. The reasonably possible effect, proportionate to the Group’s equity, would thus be 1.7 (2.4) per cent. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 49 ===== SIDA 50 ===== 9 Insurance contract liabilities Insurance liabilities reflect the liability the Group has for its insurance undertakings, in other words, the insurance contracts underwritten. The liability consists of two parts, the liability for remaining coverage and acquisition cash flow assets as well as the liability for incurred claims. The liability for remaining coverage relates to the obligation to investigate and pay valid claims that have not yet occurred. The liability consists of the premium payments received for insurance services to be provided after the closing date, i.e. relating to the unexpired portion of the insurance coverage, and adjusted for acquisition cash flows. The liability for incurred claims relates to the obligation to investigate and pay valid claims that have occurred. The liability is designed to cover anticipated future payments for all claims incurred, including claims not yet reported. EURm 6/2024 12/2023 Insurance contract liability - contracts measured under PAA Liability for remaining coverage 2,282 1,709 Liability for incurred claims 10,135 10,007 Total insurance contract liabilities 12,418 11,716 Reinsurance contract assets Assets for remaining coverage 236 258 Assets for incurred claims 2,275 2,024 Reinsurance contract assets, total 2,511 2,282 Total insurance contracts, net of reinsurance 9,907 9,434 10 Financial liabilities EURm 6/2024 12/2023 Subordinated debt liabilities Subordinated loans 1,642 1,645 Total subordinated debt liabilities 1,642 1,645 Other financial liabilities Derivative financial instruments 86 116 Financial liabilities measured at amortised cost Debt securities in issue 956 959 Amounts owed to credit institutions 260 194 Total financial liabilities measured at amortised cost 1,217 1,153 Total other financial liabilities 1,303 1,269 Total financial liabilities 2,946 2,914 Hastings has a revolving credit facility with a financial institution totalling EUR 100 million, of which EUR 80 million was undrawn at the end of the reporting period. The revolving credit facility is maturing on 23 November 2024, after which the contract has an extension option of one more year. Hastings has an undrawn credit facility also with Sampo plc totalling EUR 89 million with a maturity date of 29 October 2026. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 50 ===== SIDA 51 ===== 11 Discontinued operations Mandatum Group’s business Mandatum was a wholly-owned direct subsidiary of Sampo plc until 1 October 2023 when it was separated from the Group in the partial demerger of Sampo plc. In the comparative year, Mandatum Group was presented as a discontinued operation, in accordance with IFRS 5 Non-current assets held for sale and discontinued operations, until the demerger. Result of discontinued operations EURm 1-6/2023 Insurance revenue 171 Insurance service expenses -146 Reinsurance result -1 Insurance service result 23 Net investment result 621 Net finance income or expense from insurance contracts -225 Net result from investment contracts -338 Net financial result 58 Other income 14 Other expenses -7 Finance expenses -3 Profit before taxes 87 Income taxes -17 Discontinued operations, net of tax 70 The profit from the discontinued operations for the discontinued operations is attributable entirely to the owners of the parent company. Other comprehensive income did not include any items from the discontinued operations. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 51 ===== SIDA 52 ===== 12 Contingent liabilities and commitments EURm 6/2024 12/2023 Off-balance sheet items Guarantees 9 9 Investment commitments 34 15 IT acquisitions — 1 Other 3 2 Total 46 27 Assets pledged as collateral for liabilities or contingent liabilities 6/2024 12/2023 EURm Assets pledged Liabilities/ commitments Assets pledged Liabilities/ commitments Assets pledged as collateral Investment securities 406 302 408 293 Subsidiary shares 93 26 91 27 Cash and cash equivalents 63 8 63 36 Total 561 336 561 356 Assets pledged as security for derivative contracts Investment securities 8 9 Cash and cash equivalents 41 42 Assets pledged as security for insurance undertakings Investment securities 397 399 Assets pledged as security for loans Shares in subsidiaries 93 91 The pledged assets are included in the balance sheet item Financial assets, Other assets or Cash. Policyholder's beneficiary rights EURm 6/2024 12/2023 Assets covered by policyholders' beneficiary rights 9,885 10,034 Technical provisions, net -6,212 -6,171 Surplus of registered securities 3,673 3,863 The assets are registered as assets covering technical provisions (Solvency II). In the event of an insolvency situation, policyholders have a beneficiary right to assets registered for coverage of technical provisions. Topdanmark Group In December 2022, Sampo plc´s subsidiary Topdanmark Forsikring A/S sold Topdanmark Liv Holding A/S and all its subsidiaries to Nordea Life Holding AB. On 1 May 2024, Topdanmark announced that Topdanmark Forsikring A/S had entered into an agreement with Nordea regarding the process for completion of the IT separation of Topdanmark Liv Holding A/S (today Nordea Pension Holding Danmark A/S). Associated with the agreement, Topdanmark recognised an one-off net cost of EUR 26 million (DKK 195 million) in Q2 2024. In Sampo Group’s statement of profit and other comprehensive income, these costs are included in the line item divested operations. Simultaneously, Topdanmark renewed the distribution agreement with Nordea by up to five years. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 52 ===== SIDA 53 ===== As announced by Topdanmark in the first quarter of 2024, Nordea Group has reserved the right to raise claims against Topdanmark Forsikring A/S for certain potential losses. At present, it is not possible for Topdanmark A/S to determine the size or existence of the potential losses, and thus it is not possible to assess whether they would constitute losses for which Topdanmark Forsikring A/S may be held liable under the signed Share Purchase Agreement (SPA). Topdanmark has not reported any new updates on potential claims, and thus contingent liability remains. 13 Subsequent events after the balance sheet date Regulatory approvals for the exchange offer for Topdanmark On 8 July 2024, Sampo announced that it had received the necessary authorisation from the Danish Business Authority to complete the offer pursuant to the Danish Investment Screening Act. Following this, all regulatory approvals, upon which the offer will be conditioned, have been obtained. Extraordinary General Meeting Sampo’s Extraordinary General Meeting, held on 9 July 2024, authorised the Board of Directors to resolve on a share issue in accordance with the proposal of the Board of Directors. In order to enable the issuance of Sampo plc A shares to holders of Topdanmark shares as consideration for the acquisition of shares in Topdanmark in the exchange offer announced on 17 June 2024 (including in the exchange offer, in a subsequent compulsory acquisition of the remaining minority Topdanmark shares pursuant to sections 70 to 72 of the Danish Companies Act and otherwise), the Board of Directors was authorised to resolve, on one or several occasions, upon the issuance of up to a maximum of 57,468,782 new Sampo A shares which corresponds to approximately 11.5 per cent of all Sampo A shares on the date of the General Meeting’s notice, 17 June 2024, in deviation from the shareholders’ pre-emptive rights (directed share issue). Share buyback programme Sampo’s share buyback programme announced on 17 June 2024 continued after the end of the reporting period. By 2 August 2024 market close, the company had bought in total 3,591,673 Sampo A shares representing 0.72 per cent of the total share count. The progress of the buyback programme can be followed on www.sampo.com/ sharebuyback. HALF–YEAR FINANCIAL REPORT FOR JANUARY–JUNE 2024 53 ===== SIDA 54 =====