===== SIDA 1 ===== ===== SIDA 2 ===== Contents Group CEO’s comment ................................................................................................................................................... 4 Financial highlights .......................................................................................................................................................... 5 Fourth quarter 2023 in brief ........................................................................................................................................ 8 Dividend proposal ............................................................................................................................................................ 10 The major risks and uncertainties for the Group in the near-term ............................................................... 11 Business areas .................................................................................................................................................................... 12 If ..................................................................................................................................................................................................... 12 Topdanmark .............................................................................................................................................................................. 16 Hastings ...................................................................................................................................................................................... 17 Holding ........................................................................................................................................................................................ 19 Financial position ............................................................................................................................................................. 20 Group solvency ........................................................................................................................................................................ 20 Financial leverage position .................................................................................................................................................. 20 Ratings ........................................................................................................................................................................................ 20 Other developments ....................................................................................................................................................... 21 Demerger of Sampo plc ........................................................................................................................................................ 21 Changes in the Group management and the Board of Directors ........................................................................... 21 Group Partial Internal Model application ........................................................................................................................ 22 Shares and shareholders ....................................................................................................................................................... 22 Remuneration ........................................................................................................................................................................... 23 Personnel .................................................................................................................................................................................... 23 Events after the end of the reporting period ................................................................................................................ 23 Tables .................................................................................................................................................................................... 25 Group financial review ........................................................................................................................................................... 25 Calculation of key figures ..................................................................................................................................................... 27 Group quarterly result ........................................................................................................................................................... 30 Statement of profit and other comprehensive income ............................................................................................. 31 Consolidated balance sheet ................................................................................................................................................ 32 Statement of changes in equity ......................................................................................................................................... 33 Statement of cash flows ....................................................................................................................................................... 34 Notes ..................................................................................................................................................................................... 35 Accounting principles ............................................................................................................................................................ 35 Result by segment for twelve months ended 31 December 2023 ......................................................................... 42 Result by segment for twelve months ended 31 December 2022 ......................................................................... 43 Balance sheet by segment at 31 December 2023 ........................................................................................................ 44 Balance sheet by segment at 31 December 2022 ........................................................................................................ 45 Other notes ......................................................................................................................................................................... 46 1 Insurance service result written ....................................................................................................................................... 46 2 Net investment income ...................................................................................................................................................... 47 3 Net finance income or expense from insurance contracts ................................................................................... 48 4 Other income ........................................................................................................................................................................ 48 5 Intangible assets .................................................................................................................................................................. 48 6 Financial assets ................................................................................................................................................................... 49 7 Determination and hierarchy of fair values .............................................................................................................. 50 8 Movements in level 3 financial instruments measured at fair value ................................................................ 56 9 Insurance contract liabilities .......................................................................................................................................... 59 10 Financial liabilities ............................................................................................................................................................. 59 11 Discontinued operations .................................................................................................................................................. 60 12 Business operations divested ...................................................................................................................................... 63 13 Business combinations .................................................................................................................................................... 63 14 Contingent liabilities and commitments ................................................................................................................... 65 15 Subsequent events after the balance sheet date .................................................................................................. 65 Summary .............................................................................................................................................................................. 3 SAMPO GROUP RESULTS FOR 2023 2 ===== SIDA 3 ===== Sampo Group’s results for 2023 • Sampo Group achieved top line growth of 11 per cent on a currency adjusted basis, supported by strong development both in the Nordics and in the UK • The underwriting result was EUR 1,164 million (1,031) and the combined ratio 84.6 per cent (85.8) • Underlying Nordic margin trends remained positive throughout the year, with If achieving a 0.5 percentage point improvement in the undiscounted adjusted risk ratio • Profit before taxes increased to EUR 1,481 million after adjusting for IFRS 9 (803), but declined on a reported basis (1,924) • Solvency II coverage stood at 182 per cent (210), pro forma of demerger-related transactions, and financial leverage at 25.3 per cent (25.6) • The Board proposes a EUR 1.80 dividend per share, including a regular dividend of EUR 1.60 per share and an extra dividend of EUR 0.20 per share • Sampo will issue an outlook statement for 2024 in connection with the publication of its 2024-2026 financial targets at its Capital Markets Day on 6 March 2024 Key figures Profit before taxes (P&C Operations) 1,481 1,924 -23 368 67 449 If 1,358 1,550 -12 369 60 520 Topdanmark 162 158 3 19 79 -77 Hastings 129 107 21 59 6 866 Holding -160 146 — -78 -48 64 Net profit for the equity holders 1,323 2,107 -37 382 61 526 Underwriting result 1,164 1,031 13 281 109 159 Change Change Earnings per share (EUR) 2.62 3.97 -1.36 0.76 0.14 0.62 Operational result per share (EUR) 2.07 — — 0.42 — — Return on equity, % 15.6 4.2 11.4 — — — Profit before taxes (adjusted for IFRS 9), EURm* 1,481 803 84 % 368 176 110 % EURm 1–12/2023 1–12/2022 Change, % 10–12/2023 10–12/2022 Change, % The comparison figures for 2022 have been restated for IFRS 17 but not for IFRS 9, meaning some figures, such as investment income, are not presented on a comparable basis between the reporting periods. Net profit for the equity holders, EPS and return on equity figures include results from life operations. Mandatum was classified as discontinued operations as of 31 March 2023. *) To enhance comparability, a Group profit before taxes (P&C operations) figure adjusted for IFRS 9, reflecting market value movements, has been provided for the prior year. The figures in this report have not been audited. Sampo Group key financial targets for 2021-2023 Group Mid-single digit UW profit growth annually on average 13% Group combined ratio: below 86% 84.6% Solvency ratio: 170-190% 182% (pro forma of demerger-related transactions) Financial leverage: below 30% 25.3% If Combined ratio: below 85% 83.1% Hastings Operating ratio: below 88% 89.8% Target 2023 SAMPO GROUP RESULTS FOR 2023 8 February 2024 3 ===== SIDA 4 ===== Group CEO’s comment Sampo maintained strong operational momentum through the fourth quarter, with solid premium growth, resilient underwriting margins and an excellent investment result. Profit before taxes for 2023 increased to EUR 1,481 million (803), under comparable accounting assumptions. I believe the strong result achieved by the Group in 2023, despite a tough claims environment, illustrates our scale, diversification and disciplined underwriting. Sampo delivered currency adjusted top line growth of 11 per cent in 2023, broadly based across the Group. In the Nordics, growth was driven mainly by continued high retention, despite rate increases, enabled by the investments into service and digitalisation we can afford as the largest P&C insurer in the region. We continue to see particularly positive development in our target growth areas, such as personal, home and SME insurance. Nonetheless, the UK was the stand-out performer in terms of top line growth, delivering an increase in GWP of 32 per cent in 2023, on a currency adjusted basis, on the back of substantial rate increases in motor, and volume and price growth in home. Monthly price increases in the UK motor market moderated over the fourth quarter, following a large step up in prices in the previous two quarters, but at premium levels that appear much more sustainable than at the start of the year. The claims environment has proven challenging in 2023, substantially denting the financial performance of many P&C insurers in both the Nordics and the UK. We have seen adverse weather conditions, some of the largest single claims in Nordic history, fluctuations in claims frequency and elevated UK claims inflation. The fourth quarter was no exception, with storms and an unusually early start to the Nordic winter. Despite this, Sampo delivered a robust underwriting result, thanks to our diversification and disciplined underwriting. We are present in all the Nordic countries, the UK and the Baltics, and in all lines of business and customer groups in the Nordics. We have made cautious assumptions around claims inflation, even though this appears to be moderating, and avoided the temptation to call a “new normal” on claims frequency after COVID-19. Our discipline was once again in evidence at 1 January 2024 renewals, where we implemented significant further rate increases and took action to reduce our exposures to single large property risks. Leveraging our scale to improve productivity is another hallmark of Sampo P&C insurance strategy, as is our ability to generate pan-Nordic synergies. The cost ratio in If P&C fell by 0.3 percentage points in 2023, making it the 14th consecutive year in which this metric has improved. Importantly, these efficiency gains have not been achieved at the expense of volume growth or by cutting business investment – indeed, we expect to continue to invest heavily in further efficiency improvements in the future. Looking to the asset side of our balance sheet, Sampo enjoyed an excellent investment result in the fourth quarter, on the back of broad-based gains across our portfolio. As a Group, we are comfortable taking measured investment risk in order to enhance earnings over the medium term. Since 2009, we have earned an average spread of roughly 290 basis points above the 5-year swap rate in If P&C, equivalent to around EUR 300 million per annum based on our current investment portfolio. In summary, I am pleased to conclude on another good year. Our operational performance remains excellent and our competitive advantages are as strong as ever. I look forward to updating the investors and analysts on our plans at our upcoming Capital Markets Day on 6 March 2024. Torbjörn Magnusson Group CEO SAMPO GROUP RESULTS FOR 2023 Group CEO’s comment 4 ===== SIDA 5 ===== Financial highlights for 2023 Sampo Group delivered strong premium growth and resilient underwriting margins in 2023, despite the year being characterised by elevated severe weather and large claims experience, as well as unfavourable currency movements. Gross written premiums (GWP) and brokerage income increased by 11 per cent on a currency adjusted basis and 6 per cent on a reported basis to EUR 8,870 million (8,375). The growth was broad-based and supported by all business lines, both in the Nordics and in the UK. In the Nordics, the Group’s largest business area, Private, saw currency adjusted growth of 5.0 per cent, up from 3.5 per cent in the prior year. This was driven by strong development in non-motor lines, particularly in personal insurance, and continued high and stable retention. Meanwhile, corporate lines benefited from successful 1 January renewals, rate action and continued strong trends in SME. In the UK, the pricing environment continued to improve throughout the year, enabling substantial price increases and selective volume growth. The UK premiums increased by 32 per cent on a local currency basis and policy count grew by 8 per cent year-on-year to 3.5 million, driven by 4 per cent growth in motor insurance and 31 per cent growth in home insurance. Despite elevated severe weather and large claims experience over the year, Sampo achieved its combined ratio target of below 86 per cent. The group underwriting result amounted to EUR 1,164 million (1,031) and the combined ratio was 84.6 per cent (85.8). The fourth quarter 2022 combined ratio under IFRS 4 included significant items related to prior year development, some of which have been recognised in the net financial results under IFRS 17. Hence, the figures are not fully comparable between years. Large claims and severe weather had a negative effect of 4.7 percentage points on If’s risk ratio, clearly up from 1.3 percentage points in 2022. The underlying trend remained positive throughout the year and as a result, If’s undiscounted adjusted risk ratio improved 0.5 percentage points year-on-year. This was achieved by disciplined underwriting and pricing exceeding Nordic claims inflation, which fell to the lower end of 4-5 per cent range towards the end of the year. Hastings reported an operating ratio of 89.8 per cent (87.2) on the back of improving pricing trends and high but stabilised claims inflation of around 12 per cent for most of the year 2023. The net financial result amounted to EUR 560 million. This was driven by strong net investment income of EUR 1,006 million, of which more than half was booked for the fourth quarter, as a steep decline in interest rates pushed asset values higher. Insurance finance income or expense (IFIE) amounted to EUR -446 million. Changes in discount rates had an effect of EUR -160 million and the unwind of discounting had an effect of EUR -248 million on IFIE. Sampo plc’s Board of Directors proposes a dividend of EUR 1.80 per share for 2023 to the Annual General Meeting to be held on 25 April 2024, representing a payout ratio of 86 per cent based on the operational result of EUR 2.07 per share. The proposed total dividend consists of a regular dividend of EUR 1.60 per share and an extra dividend of EUR 0.20 per share. The proposed regular dividend represents growth of 7 per cent from the prior year regular dividend of EUR 1.50 per share adjusted for the partial demerger. Sampo Group’s pro forma Solvency II ratio, adjusted for demerger-related transactions, amounted to 182 per cent at the end of 2023, down from 210 per cent at the year-end 2022. The decrease was primarily driven by the demerger successfully completed in October. The decrease from the pro forma figure (adjusted for the demerger) of 195 per cent at the end of the third quarter was driven by the decrease in interest rates, increased symmetric adjustment, Topdanmark’s Oona Health acquisition and the accrual of the proposed dividend, offsetting the solid operational performance during the quarter. The financial leverage was 25.3 per cent at the end of 2023, down from 25.6 per cent at the end of 2022 and from the third quarter’s pro forma figure of 26.3 per cent. Adjusting for the proposed dividend of EUR 1.80 per share, financial leverage was 27.7 per cent. Sampo Group’s targets for 2021-2023 were a solvency ratio of 170-190 per cent and a financial leverage ratio of below 30 per cent. The partial demerger of Sampo plc was completed on 1 October 2023, as planned, and the first trading day for Mandatum on Nasdaq Helsinki was 2 October 2023. Mandatum’s profit before taxes consolidated in Sampo Group’s P&L amounted to EUR 173 million and net profit to EUR 140 million in January-September 2023. SAMPO GROUP RESULTS FOR 2023 Financial highlights 5 ===== SIDA 6 ===== In addition, positive accounting effects of EUR 111 million on Group’s profit before taxes and net profit were booked for the fourth quarter of 2023, of which EUR 102 million related to the re-allocation of long-term debt from Sampo plc to Mandatum and EUR 9 million to a valuation effect related to the demerger. In 2023, Sampo returned over EUR 0.5 billion of excess capital to shareholders by repurchasing and cancelling 12.6 million own shares, representing 2 per cent of the total share count. Since the start of the buyback programmes in 2021, Sampo’s share count has decreased by 10 per cent. The application process for the Group Partial Internal Model has proceeded according to plans and it is expected to be completed during the first half of 2024, as previously communicated. Sampo estimates that the partial internal model would have reduced the group-level solvency capital requirement by up to EUR 0.3 billion in 2023. SAMPO GROUP RESULTS FOR 2023 Financial highlights 6 ===== SIDA 7 ===== Sampo’s 2023 figures are reported under the new accounting standards “IFRS 17 Insurance Contracts” and “IFRS 9 Financial Instruments”. The comparative figures for 2022 have been restated for IFRS 17 but not for IFRS 9, meaning some figures, such as investment income, are not comparable between the reporting periods. Sampo Group results for January-December 2023 EURm If Topdanmark Hastings Holding Elim. Sampo Group GWP & brokerage income 5,468 1,339 2,063 — — 8,870 Insurance revenue, net (incl. brokerage) 4,996 1,288 1,251 — — 7,535 Claims incurred and claims handling costs, net -3,377 -862 -714 — — -4,953 Operating expenses -777 -233 -409 — — -1,419 Underwriting result 842 194 128 — — 1,164 Net investment income 871 107 79 -37 -13 1,006 Insurance finance income or expense, net -331 -79 -35 — — -446 Net financial result 539 27 44 -37 -13 560 Other items -24 -59 -42 -122 4 -243 Profit before taxes 1,358 162 129 -160 -9 1,481 Net profit for the equity holders 1,323 - of which from life operations* 252 Combined ratio, % 83.1 85.0 89.8 84.6 Sampo Group results for January-December 2022 EURm If Topdanmark Hastings Holding Elim. Sampo Group GWP & brokerage income 5,432 1,308 1,636 — — 8,375 Insurance revenue, net (incl. brokerage) 5,024 1,255 998 — — 7,277 Claims incurred and claims handling costs, -3,550 -809 -509 — — -4,867 Operating expenses -801 -216 -361 — — -1,379 Underwriting result 673 230 128 — — 1,031 Net investment income 278 -142 16 177 -8 320 Insurance finance income or expense, net 610 115 11 — — 736 Net financial result 888 -28 27 177 -8 1,056 Other items -11 -45 -49 -31 -28 -163 Profit before taxes 1,550 158 107 146 -36 1,924 Net profit for the equity holders 2,107 - of which from life operations* 681 Combined ratio, % 86.6 81.7 87.2 85.8 *) Net profit from life operations in January-December 2022 includes Mandatum and Topdanmark’s life operations. The Group result table was simplified in the fourth quarter of 2023 by including all Hastings’ brokerage revenues in the gross top line figure and insurance revenue. Hastings’ brokerage expenses are included in operating expenses. As a result, the insurance service result is no longer presented in the table. These changes have no effect on the underwriting result and do not concern If’s or Topdanmark’s figures. SAMPO GROUP RESULTS FOR 2023 Financial highlights 7 ===== SIDA 8 ===== Fourth quarter 2023 in brief The year 2023 ended with elevated severe weather conditions as the stormy beginning of the quarter was followed by an early winter with heavy snowfall and freezing temperatures in the Nordics. Nonetheless, the Group’s top line development and underlying performance remained solid. Gross written premiums and brokerage income increased by 12 per cent on a currency adjusted basis and by 9 per cent on a reported basis to EUR 1,864 million (1,711). The growth was supported by continued solid development in the Nordics and strong pricing trends in the UK. In the Nordics, Private saw currency adjusted GWP growth of 5.0 per cent, driven by non-motor lines. Commercial had a strong quarter with growth accelerating to 6.7 per cent, while Industrial saw 3.5 per cent growth. In the UK, premiums increased by 34 per cent on a local currency basis as the pricing environment remained firm over the quarter. The group underwriting result amounted to EUR 281 million (109) and combined ratio to 85.5 per cent (94.1). The fourth quarter 2022 combined ratio under IFRS 4 included significant items related to prior year development, some of which have been recognised in the net financial results under IFRS 17. Hence, the figures are not fully comparable between years. In the Nordics, the positive underlying margin development continued to be strong, as If’s undiscounted adjusted risk ratio improved by 0.5 percentage points year-on-year. In addition, underwriting profit was supported by 19 per cent growth in the UK as price increases started to earn through the P&L. Hastings reported an operating ratio of 87.8 per cent (87.4). The fourth quarter saw significant severe weather effects; although the impact of this was diluted by diversification at group-level, it had a notable adverse impact on Sampo’s Danish operations through Topdanmark. On If’s risk ratio, large claims and severe weather had a negative effect of 3.8 percentage points (2.7), mainly driven by harsh winter conditions. This was offset by prior year development of 5.0 percentage points. The positive effect from discounting increased to 4.1 percentage points (3.1) following a change in calculation methodology that flattered the fourth quarter due to a true-up of year-to-date effects. The net financial result amounted to EUR 175 million, as strong investment returns offset negative discounting effects on the liability side. Net investment income amounted to EUR 517 million, as the steep decline in interest rates at the end of the quarter pushed asset prices higher. Insurance finance income or expense (IFIE) amounted to EUR -342 million, driven by EUR -271 million effect from changes in discount rates. The unwind of discounting had a EUR -81 million effect on IFIE. Following completion of the demerger in October, EUR 102 million of long-term debt was re-allocated from Sampo plc to Mandatum, in line with the demerger plan. This had a positive accounting effect of EUR 102 million on Group's profit before taxes. Net profit also includes a 9 million valuation effect related to the demerger. SAMPO GROUP RESULTS FOR 2023 Fourth quarter 2023 in brief 8 ===== SIDA 9 ===== Sampo’s fourth quarter 2023 figures are reported under the new accounting standards “IFRS 17 Insurance Contracts” and “IFRS 9 Financial Instruments”. The comparative figures for 2022 have been restated for IFRS 17 but not for IFRS 9, meaning some figures, such as investment income, are not comparable between the reporting periods. Sampo Group results for October-December 2023 EURm If Topdanmark Hastings Holding Elim. Sampo Group GWP & brokerage income 1,095 241 528 — — 1,864 Insurance revenue, net (incl. brokerage) 1,266 333 340 — — 1,939 Claims incurred and claims handling costs, net -846 -242 -193 — — -1,282 Operating expenses -206 -65 -105 — — -376 Underwriting result 214 26 42 — — 281 Net investment income 444 67 46 -38 -2 517 Insurance finance income or expense, net -278 -47 -17 — — -342 Net financial result 166 20 29 -38 -2 175 Other items -12 -26 -11 -41 2 -88 Profit before taxes 369 19 59 -78 — 368 Net profit for the equity holders 382 - of which from life operations* 111 Combined ratio, % 83.1 92.3 87.8 85.5 Sampo Group results for October-December 2022 EURm If Topdanmark Hastings Holding Elim. Sampo Group GWP & brokerage income 1,084 221 407 — — 1,711 Insurance revenue, net (incl. brokerage) 1,257 315 279 — — 1,852 Claims incurred and claims handling costs, net -1,031 -195 -164 — — -1,390 Operating expenses -214 -59 -80 — — -353 Underwriting result 12 61 35 — — 109 Net investment income 77 47 6 -10 -3 118 Insurance finance income or expense, net -16 -19 -19 — — -54 Net financial result 61 28 -13 -10 -3 63 Other items -14 -10 -16 -38 -27 -105 Profit before taxes 60 79 6 -48 -30 67 Net profit for the equity holders 61 - of which from life operations* 105 Combined ratio, % 98.5 80.5 87.4 94.1 *) Net profit from life operations in October-December 2022 includes Mandatum and Topdanmark’s life operations. The Group result table was simplified in the fourth quarter of 2023 by including all Hastings’ brokerage revenues in the gross top line figure and insurance revenue. Hastings’ brokerage expenses are included in operating expenses. As a result, the insurance service result is no longer presented in the table. These changes have no effect on the underwriting result and do not concern If’s or Topdanmark’s figures. SAMPO GROUP RESULTS FOR 2023 Fourth quarter 2023 in brief 9 ===== SIDA 10 ===== Dividend proposal Dividend Under Sampo Group’s capital management framework, the Group aims to return a significant share of ongoing surplus capital generation through a reliable regular dividend. In addition to this, excess capital is returned through additional dividends and/or buybacks, to the extent that it is not utilised to support business development. According to Sampo plc’s Dividend Policy applicable to the distribution of 2023 earnings, total annual dividends paid shall represent at least 70 per cent of Sampo Group’s operational result for the year. The parent company’s distributable capital and reserves totalled EUR 5,367 million of which profit for the financial year 2023 was EUR 963 million. Based on the policies outlined above, the Board proposes to the Annual General Meeting that a total dividend of EUR 1.80 per share be paid to all shares except for the shares held by Sampo plc on the dividend record date of 29 April 2024. The total dividend includes a regular dividend of EUR 1.60 per share as well as an extra dividend of EUR 0.20 per share. As the Group’s operational result amounted to EUR 1,046 million, the payout ratio for the total dividend equates to 86 per cent. The remainder of the distributable funds are left in the company’s equity capital. After adjusting for the proposed dividend, Sampo Group’s 2023 year-end distributable funds amounted to approximately EUR 4,463 million, Group Solvency II ratio to 177 per cent and financial leverage to 27.7 per cent. Dividend payment The dividend is proposed to be paid to the shareholders registered in the company’s shareholders register held by Euroclear Finland Oy as at the record date of 29 April 2024. The Board proposes that the dividends be paid on 7 May 2024. The issuer of the Swedish depository receipts shall ensure that the dividend is paid to the depository receipt holders registered in the securities depository and settlement register maintained by Euroclear Sweden AB as at the record date of 29 April 2024, which payment shall be made in Swedish kronor. Financial position No significant changes have taken place in the company's financial position since the end of the financial year. The company's liquidity position is good and in the view of the Board, the proposed distributions do not jeopardise the company's ability to fulfil its obligations. SAMPO GROUP RESULTS FOR 2023 Dividend proposal 10 ===== SIDA 11 ===== 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 declined significantly in Europe during 2023 due to lower energy prices. The worst of the recent inflation surge seems to be over unless geopolitical tensions cause new shocks to energy prices. However, the continued strength of Europe’s labour market and rapid wage growth could keep price pressures elevated. This creates uncertainty as to 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 war in Ukraine continues to 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 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. There were no material COVID-19 effects in the Group’s insurance operations in the fourth quarter of 2023. Given the limited impact of COVID-19 and the increasing difficulty in reliably estimating associated effects, Sampo has not disclosed quantitative COVID-19 effects in its financial reporting since February 2022. 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, sustainability issues, and technological developments in areas such as artificial intelligence and digitalisation including threats posed by cybercrime. SAMPO GROUP RESULTS FOR 2023 The major risks and uncertainties 11 ===== SIDA 12 ===== 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. EURm 2023 2022 Change, % 10– 12/2023 10– 12/2022 Change, % Gross written premiums 5,468 5,432 1 1,095 1,084 1 Insurance revenue, net 4,996 5,024 -1 1,266 1,257 1 Claims incurred, net -3,093 -3,267 -5 -772 -954 -19 Operating expenses and claims handling costs -1,061 -1,084 -2 -281 -291 -4 Insurance service result / underwriting result 842 673 25 214 12 — Net investment income 871 278 214 444 77 475 Insurance finance income or expense, net -331 610 — -278 -16 0 Net financial result 539 888 -39 166 61 171 Other items -24 -11 122 -12 -14 -17 Profit before taxes 1,358 1,550 -12 369 60 520 Key figures 2023 2022 Change 10– 12/2023 10– 12/2022 Change Combined ratio, % 83.1 86.6 -3.5 83.1 98.5 -15.5 Cost ratio, % 21.2 21.6 -0.3 22.2 23.1 -1.0 Risk ratio, % 61.9 65.0 -3.1 60.9 75.4 -14.5 Large claims and severe weather, % 4.7 1.3 3.4 3.8 2.7 1.1 Risk adjustment and other technical effects, current year % 1.2 0.8 0.4 1.5 1.3 0.2 Prior year development, % -5.3 0.6 -6.0 -5.0 9.3 -14.3 Adjusted risk ratio, current year, % 61.3 62.3 -1.0 60.6 62.1 -1.5 Discounting effect, current year, % -3.4 -2.9 -0.5 -4.1 -3.1 -1.0 Undiscounted adjusted risk ratio, current year, % 64.7 65.2 -0.5 64.7 65.2 -0.5 Loss ratio, % 67.6 70.7 -3.1 66.8 81.5 -14.7 Expense ratio, % 15.6 15.9 -0.4 16.3 17.0 -0.8 Results All the 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 underwriting result of EUR 842 million (673) for 2023 and a combined ratio of 83.1 per cent (86.6), after achieving improvements in the undiscounted adjusted risk ratio of 0.5 percentage points and a reduction in the cost ratio of 0.3 percentage points. In the fourth quarter, If delivered underwriting profit of EUR 214 million (12) and the combined ratio stood at 83.1 per cent (98.5). The fourth quarter 2022 combined ratio under IFRS 4 included significant items related to prior year development, some of which have been recognised in the net financial results under IFRS 17. Hence, the figures are not fully comparable between years. SAMPO GROUP RESULTS FOR 2023 Business areas 12 ===== SIDA 13 ===== Premium development If reported gross written premiums, GWP, of EUR 5,468 million (5,432) in 2023. Excluding currency effects, premiums grew by 6.7 per cent year-on-year. Growth was robust across business areas and driven primarily by successful pricing measures to mitigate claims inflation, and high retention. Currency adjusted premium growth in the fourth quarter stood at 5.6 per cent. Currency adjusted GWP growth in 2023 in Private was 5.0 per cent driven mainly by price increases covering claims inflation. Geographically, Norway and Finland saw the highest GWP growth. The year saw particularly solid growth in the personal and property insurance segments. Motor also contributed to GWP growth but was adversely affected by new car sales, which remained at a historically low level during the year. The Nordic new car sales market declined by 2 per cent, while Sweden, If P&C ‘s most important market for motor insurance, saw an increase of 1 per cent. Excluding the Swedish mobility business, currency adjusted GWP growth in 2023 was 6.3 per cent in Private and 7.6 per cent for If P&C. Despite rate actions and a general slowdown in the Nordic economies over the year, the demand for insurance was relatively stable, and in the fourth quarter Private retention stood at above 89 per cent (90). Currency adjusted premium growth in the fourth quarter was 5.0 per cent. Development in online services and digital engagement in business area Private remained good in 2023, following consistent investments into this area over many years. In 2023 online sales increased by 8 per cent compared to last year, and the digital share of incoming sales was 54 per cent. Currency adjusted GWP growth in Commercial in 2023 was 5.6 per cent year-on-year mainly driven by rate actions. Over the year all countries contributed to growth with the Swedish business being particularly strong. The positive development was supported by good growth in the SME segment during the period, successful renewals in the beginning of the year and high retention. Fourth quarter currency adjusted GWP growth was 6.7 per cent. Strong momentum in online sales and accelerated expansion of the digital offering with increased usage of self- service solutions also contributed to the positive development. In 2023 online sales in Commercial increased by more than 8 per cent year-on-year, and 30 per cent of new SME clients now start their customer journey online. Industrial saw strong GWP growth of 11.8 per cent on a currency adjusted basis in 2023. Growth was primarily driven by strong renewals at the beginning of the year with significant rate action and high retention. During the year, inflation driven price increases continued, with the largest contribution coming from the property segment. Geographically, Industrial saw GWP growth in all countries except Denmark which was affected by a small number of large policies not being renewed. Currency adjusted premium growth in the seasonally light fourth quarter was 3.5 per cent. The Baltic business delivered GWP growth of 15.7 per cent in 2023. The positive development was mainly driven by continued rate increases to mitigate claims inflation. All three Baltic countries showed strong growth in 2023 year- on-year. Currency adjusted premium growth in the fourth quarter stood at 14.4 per cent. Combined ratio development If reported a combined ratio of 83.1 per cent (86.6) and 83.1 per cent (98.5) for 2023 and the fourth quarter, respectively. After a favourable large claims outcome in the first quarter of the year, the following three quarters saw adverse large claims and severe weather development. Large claims and severe weather (including natural catastrophe event Hans) in 2023 had a 4.7 percentage points (1.3) negative effect on the risk ratio. In the fourth quarter, the corresponding number was 3.8 percentage points (2.7). The fourth quarter was mainly affected by weather claims following an earlier and more severe winter season than usual. Also, large claims were slightly above budget in the last quarter of the year, mainly driven by large losses in Denmark. If’s large claims outcome is reported as a deviation against budget, while severe weather effects are disclosed in full. SAMPO GROUP RESULTS FOR 2023 Business areas 13 ===== SIDA 14 ===== Prior year gains in 2023 increased to 5.3 percentage points from -0.6 percentage points in the prior year. In the fourth quarter, prior year gains amounted to 5.0 percentage points (-9.3). Prior year gains were mainly driven by inflation reserve releases as the uncertainty regarding claims inflation outlook reduced over the year. Risk adjustment and other technical effects had an impact of 1.2 percentage points (0.8) in 2023 and 1.5 (1.3) in the fourth quarter, respectively. Discounting effects in 2023 increased by 0.5 percentage points year-on-year to 3.4 per cent (2.9), while the discounting effect in the fourth quarter was 4.1 per cent (3.1). Following an analysis of the application of IFRS 17 over 2023, the reference point used in If P&C for disaggregation of IFRS 17 discounting effects has been changed from the beginning of year to the beginning of the quarter. The change in reference point impacts on the split of discounting effects between the ISR and IFIE, but not profit before taxes. In total, the risk ratio improved by 3.1 percentage points year-on-year to 61.9 per cent (65.0) in 2023. The fourth quarter risk ratio was 60.9 per cent (75.4). The undiscounted adjusted risk ratio improved by 0.5 percentage points year-on-year in 2023 and by 0.5 percentage points year-on-year in the fourth quarter, respectively. The cost ratio for 2023 improved by 0.3 percentage points to 21.2 per cent (21.6), while fourth quarter cost ratio was 22.2 per cent (23.1). The 2023 cost ratio development compares favourably to If P&C’s target for 2021-2023 of a ~20 basis point yearly cost ratio reduction. Education and development costs are included in the cost ratio. 2023 2022 Change, % 2023 2022 Change, % Private 83.1 84.7 -1.6 62.1 63.4 -1.3 Commercial 81.9 86.8 -4.8 60.0 64.6 -4.6 Industrial 87.3 97.3 -10.0 68.3 77.4 -9.0 Baltic 85.9 89.5 -3.6 59.8 62.4 -2.6 Sweden 83.2 82.5 0.7 63.8 62.6 1.1 Norway 87.2 88.4 -1.2 66.8 67.3 -0.5 Finland 75.7 80.3 -4.7 53.5 57.9 -4.5 Denmark 88.4 110.0 -21.6 62.9 84.3 -21.4 Combined ratio, % Risk ratio, % 10–12/2023 10–12/2022 Change, % 10–12/2023 10–12/2022 Change, % Private 84.4 96.0 -11.6 62.1 72.9 -10.8 Commercial 83.9 102.1 -18.2 61.2 78.3 -17.1 Industrial 78.5 108.6 -30.1 59.0 87.9 -28.9 Baltic 85.8 90.6 -4.8 59.0 63.0 -4.0 Sweden 85.1 95.5 -10.4 64.7 74.0 -9.3 Norway 83.8 96.2 -12.3 62.4 74.1 -11.7 Finland 74.6 96.3 -21.8 51.6 71.5 -19.9 Denmark 97.3 128.9 -31.5 69.2 101.0 -31.8 Combined ratio, % Risk ratio, % Net financial result For the full year 2023, If reported a net financial result of EUR 539 million (888), and EUR 166 million (61) for the fourth quarter. Mark-to-market return on investments stood at 8.3 per cent (-4.4), driven by increased interest rates and positive development in equity markets. For the fourth quarter the mark-to-market investment return was 4.1 per cent (1.9). During the period the investment portfolio was gradually reinvested at higher rates, improving the running yield. At the end of December, fixed income running yield was 4.2 per cent (3.2), equating to an increase of 0.1 percentage points from the 4.1 per cent reported at the end of the third quarter. SAMPO GROUP RESULTS FOR 2023 Business areas 14 ===== SIDA 15 ===== The unwind of discount rate amounted to EUR -180 million in 2023 and EUR -62 million in the fourth quarter. Changes in discount rates had an impact of EUR -136 million and EUR -214 million in the year and fourth quarter, respectively. Profit before taxes In total, If reported profit before taxes of EUR 1,358 million (1,550) for 2023, representing a decrease of 12 per cent year-on-year. For the fourth quarter reported profit before taxes was EUR 369 million (60). SAMPO GROUP RESULTS FOR 2023 Business areas 15 ===== SIDA 16 ===== 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. EURm 2023 2022 Change, % 10– 12/2023 10– 12/2022 Change, % Gross written premiums 1,339 1,308 2 241 221 9 Insurance revenue, net 1,288 1,255 3 333 315 6 Claims incurred and claims handling costs, net -862 -809 7 -242 -195 24 Operating expenses -233 -216 7 -65 -59 11 Insurance service result / underwriting result 194 230 -16 26 61 -58 Net investment income 107 -142 — 67 47 41 Insurance finance income or expense, net -79 115 — -47 -19 143 Net financial result 27 -28 — 20 28 -30 Other items -59 -45 32 -26 -10 169 Profit before taxes 162 158 3 19 79 -77 Key figures 2023 2022 Change 10– 12/2023 10– 12/2022 Change Combined ratio, % 85.0 81.7 3.3 92.3 80.5 11.8 Loss ratio, % 66.9 64.4 2.5 72.8 61.8 10.9 Expense ratio, % 18.1 17.2 0.8 19.5 18.7 0.9 Results All the key figures in the table above are calculated on a net basis. Comparison figures do not include Topdanmark’s life operations. Sampo plc held 44.0 million shares in Topdanmark at 31 December 2023. The holding remains unchanged from the end of the third quarter and corresponds to an ownership of 48.9 per cent of all shares and 49.6 per cent of all votes. The market value of the holding was EUR 1,904 million at 31 December 2023. The insurance service result for January - December 2023 decreased to EUR 194 million (230) due to a high frequency of weather-related events. At the same time, the combined ratio for 2023 increased to 85.0 per cent from 81.7 per cent in the comparison year. With the support of increased net investment income, Topdanmark reported a profit before taxes of EUR 162 million (158) for January - December 2023 in Sampo Group’s profit and loss account. The Board of Directors of Topdanmark will recommend to the AGM a distribution of a dividend of DKK 1,035 million, representing a dividend of DKK 11.5 per share. Subject to the approval from the AGM, Sampo will receive approximately EUR 68 million in dividends from Topdanmark after the Topdanmark AGM in April 2024. On 27 October 2023, Topdanmark received the final regulatory approval for the acquisition of Oona Health A/S from the Danish Competition and Consumer Authority, and the acquisition was completed on 1 December 2023. As a result, Oona Health is included in Topdanmark Group’s results from 1 December 2023. The fourth quarter 2023 result includes one-off costs of DKK 35 million related to the transaction. Further information is available in Note 13. Further information on Topdanmark A/S and its results for 2023 is available at www.topdanmark.com. SAMPO GROUP RESULTS FOR 2023 Business areas 16 ===== SIDA 17 ===== 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 2023 2022 Change, % 10–12/2023 10–12/2022 Change, % Gross written premiums 1,706 1,314 30 440 328 34 Brokerage revenue 357 322 11 88 78 12 Insurance revenue, net (incl. brokerage) 1,251 998 25 340 279 22 Claims incurred and claims handling costs, net -714 -509 40 -193 -164 18 Operating expenses -409 -361 13 -105 -80 31 Underwriting result 128 128 — 42 35 19 Net investment income 79 16 397 46 6 692 Insurance finance income or expense, net -35 11 — -17 -19 -8 Net financial result 44 27 61 29 -13 — Other items -42 -49 -14 -11 -16 -30 Profit before taxes 129 107 21 59 6 866 Key figures 2023 2022 Change 10–12/2023 10–12/2022 Change Operating ratio, % 89.8 87.2 2.6 87.8 87.4 0 Loss ratio, % 63.3 57.2 6.1 61.7 64.3 -3 Live customer policies (millions) 3.5 3.2 0.2 Hastings’ result table was simplified in the fourth quarter of 2023 by combining all brokerage revenues into one line (brokerage revenue), which is also included in the insurance revenue. Brokerage expenses are included in operating expenses. As a result, the insurance service result is no longer presented in the table. These changes have no effect on the underwriting result. All the key figures in the table above are calculated on a net basis. During the year, the UK motor insurance market saw significant market price increases in response to elevated claims inflation. Market wide claims inflation has remained persistent in the UK and is estimated to have been around 12 per cent per for most of the year, with a modest reduction observed in the fourth quarter. In this environment, Hastings has continued to increase prices whilst also benefiting from increased demand as consumers continue to use digital channels in order to find a more competitive price. Hastings’ gross written premium increased 32 per cent year-on-year on a constant currency basis to EUR 1,706 million (1,314), reflecting higher average premiums and an increase in live customer policies (LCP). In the fourth quarter, premiums grew by 34 per cent year-on-year to EUR 440 million (328). Total LCP increased to 3.5 million, up 8 per cent year-on-year, with an increase in motor insurance policy count of 4 per cent. Home insurance policies grew significantly, up 31 per cent year-on-year. The rise in policy count was achieved whilst prioritising rate increases to cover claims inflation. The loss ratio for the year increased to 63.3 per cent (57.2), reflecting claims inflation, the weather events experienced in the first quarter and increased claims frequencies in line with changing driving behaviours. The rate increases implemented by Hastings during 2023 are expected to support profitability as these continue to earn through into 2024. The operating ratio for the year increased to 89.8 per cent (87.2), mainly due to a higher loss ratio and the upfront recognition of distribution costs given the high level of new business volumes in the current period. In the fourth quarter, Hastings reported an operating ratio of 87.8 per cent (87.4). Hastings generated an underwriting result of EUR 128 million (128 million), as growth in premiums was largely offset by higher claims costs. In the fourth quarter, the underwriting result increased to EUR 42 million (35). SAMPO GROUP RESULTS FOR 2023 Business areas 17 ===== SIDA 18 ===== The net financial result increased to EUR 44 million (27 million) as net investment income of EUR 79 million, including EUR 46 million of unrealised gains, was partially offset by EUR -30 million of discount rate unwind and EUR -5 million of discount rate changes. In the fourth quarter, the net financial result benefited from higher investment returns and amounted to EUR 29 million (-13). Hastings’ profit before taxes increased to EUR 129 million (107) primarily due to the increase in net financial result for the reasons mentioned above. The profit before taxes includes EUR -41 million (-58) of non-operational amortisation related to intangible assets identified on acquisition of the Hastings Group by Sampo plc in 2020, without which it would have been EUR 171 million (165). The profit before taxes for the fourth quarter amounted to EUR 59 million (6), or EUR 70 million (21) excluding non-operational amortisation of EUR -11 million (-15). SAMPO GROUP RESULTS FOR 2023 Business areas 18 ===== SIDA 19 ===== 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. EURm 2023 2022 Change, % 10–12/2023 10–12/2022 Change, % Net investment income -37 177 — -38 -10 275 Other income 1 132 -99 — 29 -100 Other expenses -57 -48 20 -28 -19 53 Finance expenses -66 -96 -31 -12 -15 -18 Share of associates' profit or loss — -19 — — -33 — Profit before taxes -160 146 — -78 -48 64 Results The holding segment’s profit before taxes for 2023 decreased to EUR -160 million (146). Net investment income includes an impact of market value changes of EUR -73 million in 2023, which offset interest income and dividends. Market value changes and FX had a EUR -48 million negative impact on fourth quarter net investment income. The increase in other expenses in the fourth quarter was driven mainly by costs related to the Mandatum demerger process. Prior year net investment income includes Sampo's share of Nordea's dividend of EUR 157 million and prior year other income includes the positive accounting effect from Nordea transactions of EUR 103 million. Prior year other income in the fourth quarter includes also a group contribution of EUR 29 million from Mandatum. The accounting effect of EUR 111 million from the re-allocation of long-term debt and valuation effect in connection with the demerger is treated as profit from discontinued operations and not included in Holding segment's P&L. The share of NOBA’s (previously known as Nordax) profit is no longer consolidated into Holding segment’s P&L from the start of year 2023 due to reclassification from an associated company to a fair value investment. SAMPO GROUP RESULTS FOR 2023 Business areas 19 ===== SIDA 20 ===== Financial position Group solvency Sampo Group’s pro forma Solvency II ratio, adjusted for the demerger-related transactions, amounted to 182 per cent at the end of 2023, based on own funds of EUR 5,856 million and solvency capital requirement of EUR 3,217 million. The regulatory Solvency II ratio amounted to 177 per cent. The decrease from 210 per cent at the year-end 2022 was primarily driven by the demerger successfully completed in October. The decrease from the pro forma figure (adjusted for the demerger) of 195 per cent at the end of the third quarter was driven by the decrease in interest rates, increased symmetric adjustment, Topdanmark’s Oona Health acquisition and the accrual of the proposed dividend, offsetting the solid operational performance during the quarter. Sampo’s Solvency II ratio target for 2021-2023 was 170-190 per cent. 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. Sampo’s financial leverage target for 2021-2023 was below 30 per cent. Sampo Group’s shareholders’ equity amounted to EUR 7,687 million and financial debt to EUR 2,604 million on 31 December 2023, translating into a financial leverage of 25.3 per cent. The financial leverage improved from 26.3 per cent (adjusted for the demerger) at end of third quarter as the shareholders equity increased due to the addition of fourth quarter earnings, while gross debt stood stable. Adjusting for the proposed dividend of EUR 1.80 per share, financial leverage was 27.7 per cent. More information on Sampo Group’s outstanding debt issues is available at www.sampo.com/debtfinancing. Ratings Relevant ratings for Sampo Group companies on 31 December 2023 are presented in the table below. Rating Outlook Rating Outlook Sampo plc – Issuer Credit Rating A3 Positive A Stable If P&C Insurance Ltd – Insurance Financial Strength Rating A1 Positive AA- Stable If P&C Insurance Holding Ltd (publ) - Issuer Credit Rating - - A Stable Rated company Moody’s Standard & Poor’s Fitch rating on Hastings was discontinued during the second quarter due to no outstanding debt issues. SAMPO GROUP RESULTS FOR 2023 Financial position 20 ===== SIDA 21 ===== Other developments Demerger of Sampo plc On 29 March 2023, the Board of Directors proposed to the Annual General Meeting a partial demerger of Sampo plc to separate Mandatum from Sampo Group. The Annual General Meeting held on 17 May 2023 resolved to approve the partial demerger as set forth in the demerger plan approved by the Board on 29 March 2023. The demerger was successfully completed on 1 October 2023. In the demerger, all of the shares in Mandatum Holding Ltd (a wholly-owned direct subsidiary of Sampo plc) and related assets and liabilities were transferred without a liquidation procedure to Mandatum plc, a company incorporated in the demerger on the effective date. Mandatum shares were listed on Nasdaq Helsinki on 2 October 2023. Effects of the partial demerger The demerger and listing of Mandatum had material financial effects, illustrated with pro forma figures in the January-September 2023 Interim Statement published on 8 November 2023. In addition to the financial effects disclosed in November 2023, the re-allocation of EUR 102 million of long-term debt from Sampo plc to Mandatum had a positive accounting effect of the same size on Group’s profit before taxes and net profit for the fourth quarter of 2023. With the valuation difference of EUR 9 million related to the demerger, which was disclosed in November, the total effect on profit before taxes and net profit from amounted to EUR 111 million for the fourth quarter. Planned transactions in connection with the demerger Sampo sold or plans to sell certain assets to Mandatum in connection with the demerger. These assets include holdings in Saxo Bank and Enento Group, guarantee shares of Kaleva Mutual Insurance Company and other smaller equity, debt and alternative investments. Additional detail is available at www.sampo.com/demerger. Mandatum’s financial development Mandatum’s profit before taxes consolidated in Sampo Group’s P&L amounted to EUR 173 million and net profit to EUR 140 million in January-September 2023. The total net profit booked under life operations for 2023 amounted to EUR 252 million, as this includes the EUR 111 million of demerger related accounting effects in the fourth quarter. Changes in the Group management and the Board of Directors Following the completion of the partial demerger of Sampo plc on 1 October 2023, the Sampo Group Executive Committee (GEC) terms of Patrick Lapveteläinen, former Sampo Group CIO, and Petri Niemisvirta, CEO of Mandatum, ended. Sampo Group CIO Ville Talasmäki joined Sampo’s Group Executive Committee on 1 October 2023 and Head of BA Commercial Klas Svensson was appointed to the Group Executive Committee on 13 December 2023. Svensson started in the GEC on 1 January 2024. After the changes, there are seven members in the Sampo GEC, equivalent to the number of GEC members in the beginning of 2023. Antti Mäkinen was elected as Chair of the Board of Directors of Sampo plc at the Annual General Meeting on 17 May 2023. Björn Wahlroos, the former Chair of the Board of Directors, was not available for re-election. On 1 October 2023 as Johanna Lamminen left the Board of Directors upon the completion of the partial demerger of Sampo plc as set in the demerger plan. After the partial demerger, the Board of Directors consists of nine members until the close of the Annual General Meeting to be held in 2024. SAMPO GROUP RESULTS FOR 2023 Other developments 21 ===== SIDA 22 ===== Group Partial Internal Model application Following the completion of the demerger of Sampo plc, the Swedish FSA (Finansinspektionen) became Sampo’s group prudential supervisor as of 1 October 2023. As a result, Sampo refiled its application for a Group Partial Internal Model to the Swedish FSA on 2 October 2023. The application had previously been filed with the Finnish FSA. Sampo expects that the application process will be completed during the first half of 2024. The Partial Internal Model recognises the risk profile of Sampo’s P&C operations better than the Standard Formula and it is estimated that it would have reduced the group-level solvency capital requirement (SCR) by up to EUR 0.3 billion in 2023. Shares and shareholders Sampo plc’s total number of shares, including 200,000 B shares, was 501,796,752 at the end of December 2023. During 2023, the total share count decreased by 14.8 million shares due to the cancellations of the repurchased shares on 30 March 2023 and on 10 August 2023. Sampo did not hold any own shares at the end of December 2023. In 2023, Sampo repurchased 12.6 million of its own A shares under two buyback programmes based on the authorisation granted by the Annual General Meeting of 2022. The share buyback programme of EUR 1 billion announced on 9 June 2022 was completed on 8 February 2023. Through the programme, Sampo repurchased and cancelled 22.1 million of its own A shares at an average price of EUR 45.28 per share. Of this, 3.2 million shares were repurchased during the first quarter of 2023. On 29 March 2023, Sampo’s Board of Directors resolved to launch a new EUR 400 million share buyback programme. The programme started on 3 April 2023 and ended on 1 August 2023. Through this programme, Sampo repurchased and cancelled 9.4 million own shares at an average price per share of EUR 42.64. Of this, 6.7 million shares were repurchased during the second quarter and 2.7 million shares during the third quarter. 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 3/2023 510,977,769 200,000 511,177,769 6/2023 510,977,769 -6,497,623 200,000 504,680,146 9/2023 501,596,752 200,000 501,796,752 12/2023 501,596,752 200,000 501,796,752 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 during 2023. The latest notifications are available at www.sampo.com/flaggings. SAMPO GROUP RESULTS FOR 2023 Other developments 22 ===== SIDA 23 ===== Remuneration A total of EUR 71 million (77), including social costs, was paid as short-term incentives in January-December 2023 in Sampo Group. In the same period, a total of 38 million (35) was paid as long-term incentives. The long-term incentive schemes in force in Sampo Group produced a negative result impact of EUR 10 million (-43). The terms of the long-term incentive schemes based on financial instruments of Sampo plc are available www.sampo.com/incentiveterms. Personnel The average number of employees (FTE) in Sampo Group’s P&C operations in 2023 was 13,272 (12,947). On 31 December 2023, the total number of staff in the Group’s P&C operations was 13,450 (12,861). By company If 7,858 59 Hastings 3,200 24 Topdanmark 2,160 16 Sampo plc 54 0.4 Total 13,272 100 By country United Kingdom 3,176 24 Denmark 2,756 21 Sweden 2,446 18 Finland 1,934 15 Norway 1,613 12 Other countries 1,346 10 Total 13,272 100 Sampo Group personnel (P&C operations) Average personnel (FTE) 2023 % Events after the end of the reporting period Change in reference point for disaggregation of IFRS 17 discounting effects in If On 18 January 2024, Sampo published a press release regarding technical changes in the calculation methodology for discounting effects in If. Following an analysis of the application of IFRS 17 over 2023 the reference point used in If P&C for disaggregation of IFRS 17 discounting effects has been changed from the beginning of year to the beginning of quarter. The change in reference point impacts on the split of discounting effects between the ISR and IFIE, but not profit before taxes. This reflects the Group’s practice of providing financial results for individual quarters, and a desire to align more closely with common market practice and the approach taken by other Group companies. SAMPO PLC Board of Directors SAMPO GROUP RESULTS FOR 2023 Other developments 23 ===== SIDA 24 ===== 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 Q4 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-March 2024 on 7 May 2024. Distribution: Nasdaq Helsinki Nasdaq Stockholm London Stock Exchange FIN-FSA The principal media www.sampo.com SAMPO GROUP RESULTS FOR 2023 Further information 24 ===== SIDA 25 ===== Group financial review > Group Gross written premiums & brokerage income EURm 8,870 8,375 Insurance revenue, net EURm 7,412 7,168 Insurance service result, net EURm 1,193 1,062 Underwriting result EURm 1,164 1,031 Net financial result EURm 560 1,056 Profit before taxes (P&C operations) EURm 1,481 1,924 Net profit for the equity holders EURm 1,323 2,107 Combined ratio % 84.6 85.8 Solvency ratio 1) 3) % 182 210 Financial leverage % 25.3 24.4 Return on equity % 15.6 4.2 Average number of staff incl. Mandatum 13,935 13,550 If Gross written premiums EURm 5,468 5,432 Insurance revenue, net EURm 4,996 5,024 Insurance service result/underwriting result EURm 842 673 Net financial result EURm 539 888 Profit before taxes EURm 1,358 1,550 Combined ratio % 83.1 86.6 Cost ratio % 21.2 21.6 Risk ratio % 61.9 65.0 Adjusted risk ratio, current year, % 5) % 61.3 62.3 Undiscounted adjusted risk ratio, current year, % 6) % 64.7 65.2 Loss ratio % 67.6 70.7 Expense ratio % 15.6 15.9 Return on equity % 31.3 13.2 Average number of staff 7,858 7,496 Topdanmark Gross written premiums EURm 1,339 1,308 Insurance revenue, net EURm 1,288 1,255 Insurance service result/underwriting result EURm 194 230 Net financial result EURm 27 -28 Profit before taxes EURm 162 158 Combined ratio % 85.0 81.7 Loss ratio % 66.9 64.4 Expense ratio % 18.1 17.2 Average number of staff 2,160 2,381 Financial highlights 2023 2022 SAMPO GROUP RESULTS FOR 2023 25 ===== SIDA 26 ===== > Group financial review Hastings GWP & brokerage income EURm 2,063 1,636 Insurance revenue, net EURm 1,128 889 Insurance service result, net EURm 157 159 Underwriting result EURm 128 128 Net financial result EURm 44 27 Profit before taxes EURm 129 107 Operating ratio % 89.8 87.2 Loss ratio % 63.3 57.2 Return on equity % 13.2 -8.5 Average number of staff 3,200 3,021 Holding Profit before taxes EURm -160 146 Average number of staff 54 50 Per share key figures Earnings per share EUR 2.62 3.97 Earnings per share, continuing operations 2) EUR 2.12 2.88 Earning per share, discontinuing operations EUR 0.50 1.09 Operational result per share EUR 2.07 — Equity per share EUR 14.47 18.70 Net asset value per share EUR 15.30 20.01 Adjusted share price, high 4) EUR 45.21 49.97 Adjusted share price, low 4) EUR 34.53 35.85 Market capitalisation 4) EURm 19,876 25,112 2023 2022 1) The Group solvency is calculated according to the consolidation method defined in the Solvency II Directive (2009/138/EC). 2) Earnings per share on continuing operations for comparative period 2022 includes the divested operations i.e. Topdanmark Life operations. 3) The solvency ratio for 2023 is pro forma figure excluding the effect of Saxo Bank on the Group SCR. 4) Share prices have been adjusted to reflect the separation of Mandatum Group in the partial demerger. 5) 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. 6)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 501,796,752 and as the average number during the financial period 505,939,064. 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. SAMPO GROUP RESULTS FOR 2023 26 ===== SIDA 27 ===== Calculation of key figures Return on equity, % + total comprehensive income attributable to owners of the parent x 100 % + total equity attributable to owners of the parent (average of values 1 Jan. and the end of reporting period) Equity/assets ratio, % + total equity attributable to owners of the parent x 100 % + balance sheet total Financial leverage financial debt x 100 %equity + financial debt Underwriting result + insurance revenue, net + other income (Hastings) - claims incurred - operating expenses underwriting result Operational result + P&C operations’ (incl. Sampo plc) profit after tax - non-controlling interest in P&C operations - unrealised gains/losses on investments 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 operational 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 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 SAMPO GROUP RESULTS FOR 2023 27 ===== SIDA 28 ===== 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 Operational result per share operational 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 SAMPO GROUP RESULTS FOR 2023 28 ===== SIDA 29 ===== Exchange rates used in reporting EURSEK Income statement (average) 11.4745 11.4787 11.3310 11.2050 10.6286 Balance sheet (at end of period) 11.0960 11.5325 11.8055 11.2805 11.1218 DKKSEK Income statement (average) 1.5406 1.5411 1.5219 1.5052 1.4288 Balance sheet (at end of period) 1.4888 1.5465 1.5852 1.5145 1.4956 NOKSEK Income statement (average) 1.0048 1.0116 1.0013 1.0194 1.0522 Balance sheet (at end of period) 0.9871 1.0248 1.0087 0.9900 1.0578 EURDKK Income statement (average) 7.4510 7.4486 7.4464 7.4428 7.4396 Balance sheet (at end of period) 7.4529 7.4571 7.4474 7.4485 7.4365 EURGBP Income statement (average) 0.8697 0.8707 0.8764 0.8831 0.8527 Balance sheet (at end of period) 0.8691 0.8646 0.8583 0.8792 0.8869 1–12/2023 1–9/2023 1–6/2023 1–3/2023 1–12/2022 SAMPO GROUP RESULTS FOR 2023 29 ===== SIDA 30 ===== Group quarterly result GWP & brokerage income 1,864 1,909 2,081 3,016 1,711 Insurance revenue, net (incl. brokerage) 1,939 1,911 1,857 1,828 1,852 Claims incurred, net -1,282 -1,278 -1,198 -1,195 -1,390 Operating expenses -376 -348 -353 -342 -353 Underwriting result 281 284 306 292 109 Net investment income 517 127 108 253 118 Insurance finance income or expense, net -342 29 -2 -130 -54 Net financial result 175 156 106 123 63 Other items -88 -50 -50 -56 -105 Profit before taxes 368 391 363 359 67 Income taxes -88 -79 -81 -91 -33 Profit from the continuing operations 280 312 281 268 34 Discontinued operations, net of tax 111 71 41 28 33 Divested operations, net of tax — — — — 72 Net profit 391 383 323 297 139 Other comprehensive income Items reclassifiable to profit or loss Exchange differences 87 51 -76 -63 2 Available-for-sale financial assets — — — — 109 Cash flow hedges -2 -1 2 0 0 Share of other comprehensive income of associates — — — — 5 Taxes — — — — -28 Total items reclassifiable to profit or loss, net of tax 85 50 -74 -63 87 Items not reclassifiable to profit or loss Actuarial gains and losses from defined pension plans -25 1 18 -1 -27 Taxes 5 0 -4 0 6 Total items not reclassifiable to profit or loss, net of tax -20 1 14 0 -21 Total other comprehensive income for the continuing operations, net of tax 65 51 -60 -64 66 Other comprehensive income for discontinued operations, net of tax — — — — 44 Other comprehensive income total, net of tax 65 51 -60 -64 109 Total comprehensive income 457 433 263 233 249 Profit attributable to Owners of the parent 382 366 304 271 61 Non-controlling interests 9 17 18 26 78 Total comprehensive income attributable to Owners of the parent 447 417 245 207 170 Non-controlling interests 9 17 18 26 78 EURm 10–12/2023 7–9/2023 4–6/2023 1–3/2023 10–12/2022 Mandatum segment has been presented in the table on a single line as a discontinued operations. For further information, please see note 11. SAMPO GROUP RESULTS FOR 2023 30 ===== SIDA 31 ===== Statement of profit and other comprehensive income Insurance revenue 8,417 8,062 Insurance service expenses -7,076 -6,759 Reinsurance result -148 -242 Insurance service result 1 1,193 1,062 Net investment income 2 1,006 320 Net finance income or expense from insurance contracts 3 -446 736 Insurance finance income or expense, gross -529 827 Insurance finance income or expense, reinsurance 83 -90 Net financial result 560 1,056 Other income 4 277 350 Other expenses -457 -436 Finance expenses -93 -98 Share of associates' profit or loss 1 -10 Profit before taxes 1,481 1,924 Income taxes -339 -366 Profit from the continuing operations 1,142 1,559 Discontinued operations, net of tax 11 251 579 Divested operations, net of tax 12 — 102 Net profit 1,393 2,240 Other comprehensive income Items reclassifiable to profit or loss Exchange differences -1 -268 Available-for-sale financial assets — -1,121 Cash flow hedges -1 0 Taxes — 209 Total items reclassifiable to profit or loss, net of tax -3 -1,180 Items not reclassifiable to profit or loss Actuarial gains and losses from defined pension plans -6 32 Taxes 1 -7 Total items not reclassifiable to profit or loss, net of tax -5 26 Total other comprehensive income for the continuing operations, net of tax -8 -1,154 Other comprehensive income for the discontinued operations, net of tax — -484 Other comprehensive income total, net of tax -8 -1,639 Total comprehensive income 1,386 601 Profit attributable to Owners of the parent 1,323 2,107 Non-controlling interests 70 133 Total comprehensive income attributable to Owners of the parent 1,316 468 Non-controlling interests 70 133 Earnings per share (EPS), EUR 2.62 3.97 Earnings per share, continuing operations, EUR 2.12 2.88 EURm Note 1-12/2023 1-12/2022 Sampo Group applies IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments from 1 January 2023. Comparative information on IFRS 17 for the year 2022 is restated. For more information on the implementation, please see accounting principles section IFRS 17 and IFRS 9 transition impacts. Mandatum segment has been presented in the table on a single line as a discontinued operations. For further information, please see note 11. Earnings per share on continuing operations for comparative period 2022 includes the divested operations i.e. Topdanmark Life operations. SAMPO GROUP RESULTS FOR 2023 31 ===== SIDA 32 ===== Consolidated balance sheet Assets Property, plant and equipment 318 355 373 Investment property 0 166 236 Intangible assets 5 3,637 3,494 3,660 Investments in associates 12 16 475 Financial assets 6,7,8 15,757 19,565 19,862 Financial assets related to unit-linked contracts — 9,930 10,546 Deferred income tax 3 11 53 Insurance contract assets — 6 41 Reinsurance contract assets 2,282 1,821 2,008 Other assets 800 775 712 Cash and cash equivalents 1,415 3,073 4,690 Non-current assets held for sale* — — 16,029 Total assets 24,225 39,212 58,684 Liabilities Insurance contract liabilities 9, 11,716 16,210 18,266 Investment contract liabilities — 7,103 7,239 Subordinated debts 10 1,645 1,983 2,016 Other financial liabilities 10 1,269 1,457 2,315 Deferred income tax 567 666 851 Other liabilities 1,342 1,617 1,532 Liabilities related to non-current assets held for sale* 12 — — 13,010 Total liabilities 16,538 29,035 45,228 Equity Share capital 98 98 98 Reserves 1,530 1,530 1,530 Retained earnings 6,378 8,482 9,945 Other components of equity -743 -492 1,231 Equity attributable to owners of the parent 7,263 9,618 12,805 Non-controlling interests 424 560 651 Total equity 7,687 10,178 13,456 Total equity and liabilities 24,225 39,212 58,684 EURm Note 12/2023 12/2022 1 Jan 2022 Sampo Group applies IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments from 1 January 2023. Comparative information (IFRS 17) for the year 2022 has been restated. For more information on the implementation, please see accounting principles section IFRS 17 and IFRS 9 transition impacts. Mandatum is included in the IFRS 17 opening balance sheet on 1 January 2022, and in the comparative period 2022. For further information, please see note 11. *Topdanmark Life was classified as non-current assets held for sale on 1 January 2022 and the sale was completed on 1 December 2022. Topdanmark Life is accounted for under IFRS 17 in the opening balance 1 January 2022. Please see note 12 for further information. SAMPO GROUP RESULTS FOR 2023 32 ===== SIDA 33 ===== Statement of changes in equity Equity at 31 December 2021 (IFRS 4) 98 4 1,527 9,952 -415 1,622 0 12,788 676 13,464 Impact of IFRS 17 transition 1 January 2022 — — — -7 — 23 — 16 -25 -9 Equity at 1 January 2022 (IFRS 17) 98 4 1,527 9,945 -415 1,646 0 12,805 651 13,456 Changes in equity Acquired non- controlling interests — — — -6 — — — -6 -2 -8 Dividends4) — — — -2,186 — — — -2,186 -207 -2,393 Acquisition of own shares — — — -1,444 — — — -1,444 — -1,444 Changes in associate share holdings — — — -10 — — — -10 — -10 Other changes in equity — — — 51 -58 -1 — -9 -15 -24 Profit for the reporting period — — — 2,107 — — — 2,107 133 2,240 Other comprehensive income for the period — — — 26 -268 -1,396 0 -1,639 — -1,639 Total comprehensive income — — — 2,133 -268 -1,396 0 468 133 601 Equity at 31 December 2022 98 4 1,527 8,482 -741 248 0 9,618 560 10,178 Equity at 31 December 2022 (IFRS 17, restated) 98 4 1,527 8,482 -741 248 0 9,618 560 10,178 Impact of IFRS 9 transition 1 January 2023 — — — 248 — -248 — — — — Equity at 1 January 2023 98 4 1,527 8,730 -741 — 0 9,618 560 10,178 Changes in equity Acquired non- controlling interests — — — -11 — — — -11 -3 -14 Dividends4) — — — -1,321 — — — -1,321 -187 -1,508 Transferred assets at fair value in the demerger — — — -1,835 — — — -1,835 — -1,835 Acquisition of own shares — — — -555 — — — -555 — -555 Other changes in equity — — — 51 — — — 51 -15 36 Profit for the reporting period — — — 1,323 — — — 1,323 70 1,393 Other comprehensive income for the period — — — -5 -1 — -1 -8 — -8 Total comprehensive income — — — 1,318 -1 — -1 1,316 70 1,386 Equity at 31 December 2023 98 4 1,527 6,378 -742 — -1 7,263 424 7,687 EURm Share capital Legal reserve Inves- ted unres- tricted equity Retained earnings 1) Transla- tion of foreign opera- tions 2) Available- for-sale financial assets 3) Cash flow hedges Total Non- control- ling interest Total 1) IAS 19 Pension benefits had a net effect of -5 million (26) on retained earnings. 2) In the comparison year, the translation differences of the other comprehensive income include associate Nordax’ share of exchange differences EUR 8 million. 3) In accordance with IAS 39, the comparison year includes EUR -1,300 million recognised in equity and EUR -96 million was transferred to p/l from available-for-sale financial assets. 4) Dividend per share EUR 2.60 (4.10) Sampo plc has cancelled 5,401,743 acquired own shares on 30 March 2023 and 9,381,017 shares on 10 August 2023. SAMPO GROUP RESULTS FOR 2023 33 ===== SIDA 34 ===== Statement of cash flows Operating activities Profit before tax 1,765 2,744 Adjustments: Depreciation and amortisation 158 170 Unrealised gains and losses arising from valuation -559 1,119 Realised gains and losses on investments -280 217 Change in liabilities for insurance and investment contracts 1,146 -14,380 Other adjustments* -537 -2,193 Adjustments total -72 -15,068 Change (+/-) in assets of operating activities Investments** -86 10,384 Other assets -208 2,127 Total -294 12,511 Change (+/-) in liabilities of operating activities Financial liabilities 176 35 Other liabilities -196 291 Paid taxes -277 -290 Paid interest -132 -190 Total -429 -155 Net cash from (or used in) operating activities 970 33 Investing activities Investments in subsidiary shares -247 -7 Divestments in subsidiary shares 20 519 Divestments in associate shares — 2,291 Dividends received from associates — 160 Net investment in equipment and intangible assets 5 8 Net cash from (or used in) investing activities -223 2,970 Financing activities Dividends paid -1,321 -2,186 Dividends paid to non-controlling interests -187 -207 Acquisition of non-controlling interests -14 -9 Acquisition of own shares -555 -1,444 Issue of debt securities 142 62 Repayments of debt securities in issue -473 -920 Net cash used in (or from) financing activities -2,407 -4,704 Total cash flows -1,660 -1,701 Cash and cash equivalents at the beginning of reporting period 3,073 4,819 Effects of exchange rate changes 3 -44 Cash and cash equivalents at the end of reporting period 1,415 3,073 Net change in cash and cash equivalents -1,660 -1,701 EURm 1–12/2023 1–12/2022 *) Other adjustments in the comparison year relate mainly to the sale of Nordea shares. **) Investments include investment property and financial assets.. Statement of cash flows includes continuing and discontinued operations. Profit before tax for 2023 is the Group’s profit before taxes together with the discontinued operations’ profit before taxes. In the comparison year, the profit before tax includes the divested operations. The presentation of line items in the comparison year have changed due to the transition to IFRS 17. 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 1,081 million (2,907) and short-term deposits (max 3 months) EUR 334 million (166). SAMPO GROUP RESULTS FOR 2023 34 ===== SIDA 35 ===== 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 2022, with the exception of changes resulting from the adoption of IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments. The new accounting principles are summarised below in section New accounting principles applied from 1 January 2023. The financial statements 2022 are available on Sampo’s website www.sampo.com/year2022. Information presented in the Financial Statement Release is unaudited. Accounting principles requiring management judgement and key sources of estimation uncertainties Discontinued operations On 7 December 2022, Sampo Group announced a strategic review of Mandatum Group’s role in the Group. Following an assessment of options, on 29 March 2023, the Board resolved to propose a partial demerger of Sampo plc to separate Mandatum from Sampo Group. The Annual General Meeting approved the partial demerger on 17 May 2023 as set forth in the demerger plan, approved and signed by the Board on 29 March 2023. The demerger plan was registered in the Finnish Trade Register on 30 March 2023. Mandatum’s assets and liabilities were reclassified as a disposal group held for distribution to owners and related liabilities .The comparison numbers were not restated. 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 comparison numbers have been restated. The partial demerger was completed as planned on 1 October 2023. 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 without a liquidation procedure to Mandatum plc, a company incorporated in the demerger on the effective date. In addition, a part of Sampo's general liabilities, not allocated to any specific business operations, were allocated to Mandatum plc. These liabilities cannot be legally transferred as such, due to their nature, and therefore Sampo and Mandatum agreed on forming an equivalent debt relationship between them, amounting to EUR 102 million on 2 October 2023. Despite the allocation of general liabilities, Sampo’s original liabilities in the balance sheet remain unchanged in the arrangement and Sampo plc will remain as the primary debtor towards the creditors. Dividend liability on partial demerger Sampo analysed the accounting principles set in IFRIC 17 Distribution of Non-cash Assets to Owners interpretation regarding the timing of recognition of liability for dividend payable. IFRIC 17.10 states that the liability to pay a dividend is recognised against the equity when the dividend is appropriately authorised and is no longer at the discretion of the entity. An entity shall measure a liability to distribute non-cash assets as a dividend to its owners at the fair value of the assets to be distributed. In September 2023, the Board of Directors completed the final evaluation of the conditions for completing the demerger. In accordance with IFRIC 17.10, the dividend liability on the partial demerger of Mandatum was recognised in Sampo Group’s balance sheet, amounting to EUR 1,826 million. Sampo’s management concluded that Mandatum segment’s net assets represented the best estimate of Mandatum’s fair value prior listing at the end of the reporting period Q3/2023. SAMPO GROUP RESULTS FOR 2023 35 ===== SIDA 36 ===== The best estimate for the fair value of Mandatum after the demerger was considered to be the weighted average share price during the first day of listing on 2 October 2023 in Nasdaq Helsinki. The average price of Mandatum’s share was EUR 3.657, resulting therefore in a dividend liability of EUR 1,835 million on the payment date. Sampo recognised the difference between net assets, EUR 1,826 million, and carrying amount of dividend liability, EUR 1,835 million, totalling EUR 9 million euros in the last quarter of 2023. The income was recognised in the statement of comprehensive income as a part of the discontinued operations. In addition, Sampo recognised the loan receivable from Mandatum plc, both in financial assets in the balance sheet and in discontinued operations in the statement of comprehensive income. Change in reference point for disaggregation of IFRS 17 discounting effects in If IFRS 17 Insurance contracts, implemented on 1 January 2023, requires insurance liability cash flows to be discounted at rates consistent with observable market prices, and for the effect of this to be disaggregated between the insurance service result and insurance finance income and expense. Following an analysis of the application of IFRS 17 over 2023, Sampo Group has decided to change the reference point used in If for disaggregation from the beginning of year to the beginning of quarter. This reflects the Group’s practice of providing financial results for individual quarters, and a desire to align more closely with common market practice and the approach taken by other Group companies. The implementation of the new methodology for disaggregation is considered to be a change in accounting estimate per IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (IAS 8.32) and not a change in accounting policy. Accounting estimates are amounts “that are subject to measurement uncertainty” and measurement techniques and inputs are used to develop an accounting estimate. Consequently, no restatement of comparative year (2022) is required (IAS 8.36). For more information, please see notes 1 and 3. SAMPO GROUP RESULTS FOR 2023 36 ===== SIDA 37 ===== 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. New accounting principles applied from 1 January 2023 Sampo Group is applying IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments from 1 January 2023. Sampo Group’s operations are focused on the P&C business and Sampo primarily uses the premium allocation approach (PAA) under IFRS 17. Measurement based on the new PAA-model includes setting up an explicit risk adjustment for non-financial risk and discounting claims reserves with market rates. The application of IFRS 9 did not have significant impacts on the measurement of Sampo Group’s balance sheet items, as the main part of financial assets was already reported at fair value in the balance sheet. However, under IFRS 9, the fair value changes of financial instruments are recognised in the statement of profit or loss, which may increase earnings volatility. The main accounting principles related to IFRS 17 and IFRS 9 are included in this financial statement release. Sampo Group will publish the full set of accounting principles as part of the consolidated financial statements 2023. As Mandatum Group has been classified as discontinued operation as of 31 March 2023, the new accounting principles related to Mandatum’s operations are included in the note 11 Discontinued operations. IFRS 17 transition impacts In the transition to IFRS 17, Sampo Group P&C companies have applied a full retrospective approach and restated previous year’s comparatives. In the full retrospective approach Sampo Group identifies, recognises and measures each group of insurance contracts as if IFRS 17 had always been applied and derecognises any existing balances that would not exist if IFRS 17 had always been applied. The resulting net difference was recognised in retained earnings on 1 January 2022. Sampo Group's opening balance sheet as of 1 January 2022 amounted to EUR 58.7 billion and equity to EUR 13.5 billion. Compared to the IFRS 4 closing balance sheet as of 31 December 2021 of EUR 61.1 billion, the opening IFRS 17 balance sheet decreased by EUR 2.4 billion. The net transition impact on the IFRS 17 equity was insignificant, amounting to EUR 14 million in the opening balance sheet. At the time of transition to IFRS 17, Mandatum Group had not been classified as discontinued operation, and thus it is included in the figures presented. In the transition to IFRS 17, both the assets and the liabilities decreased mainly due to reclassifications of premium receivables and deferred acquisition costs from other assets to insurance liabilities. Discounting of the reserves decreased the insurance liabilities whereas an introduction of risk adjustment increased the insurance liabilities. The introduction of the loss component related to onerous contracts had only an insignificant impact on the transition. Sampo Group’s IFRS 17 balance sheet as of 31 December 2022 amounted to EUR 39.2 billion, and compared to IFRS 4 balance sheet of EUR 42.0 billion, decreased by EUR 2.8 billion. The total equity under IFRS 17 amounted to EUR 10.2 billion, compared to IFRS 4 equity of EUR 9.5 billion, increase by EUR 0.6 billion. SAMPO GROUP RESULTS FOR 2023 37 ===== SIDA 38 ===== IFRS 17 Insurance Contracts Scope In the Group’s P&C insurance contracts insurance risk is considered significant. Insurance contracts issued by third party underwriters (‘panel underwriters’), which do not transfer any insurance risk to the Group companies, are not in the scope of IFRS 17 but instead accounted for under IFRS 15 Revenue from Contracts with Customers. Insurance contracts may contain one or more components which would be within the scope of different accounting standards and accounted for separately. Sampo evaluates the insurance contracts in order to identify components from the contracts. For example, an insurance contract may include an investment component or a component for services other than insurance contract services (or both). Level of aggregation Insurance contracts are aggregated into portfolios of insurance contracts, which comprise contracts with similar risks that are managed together. Those portfolios are divided into annual cohorts i.e. contracts which are not issued more than one year apart. In Sampo Group's P&C operations, portfolios are determined based on a segmentation of business, or a combination of line of business (as defined by management), business area and country. Portfolios are determined separately for each legal entity, or based on product lines. Sampo Group has identified certain onerous contracts, but the amount of onerous contracts is modest. The carrying amount of the portfolios of insurance and reinsurance contracts determines if they are presented as assets or liabilities in the balance sheet. Contract boundary The initial measurement of the group of insurance contracts includes all future cash flows arising within the contract boundary. In determining which cash flows fall within the contract boundary, substantive rights and obligations arising from the terms of the contract, and also from applicable laws and regulations, are considered. In Sampo Group’s P&C operations, the majority of contracts have a one-year contract boundary, typically until the next renewal date; i.e. contract has one-year coverage period during which there are substantive rights and obligations. Measurement IFRS 17 introduces a general measurement model (GMM) applicable to all insurance contracts to measure insurance contract liabilities. Under the general measurement model insurance contracts are measured based on future cash flows, adjusted to reflect the time value of money, including a risk adjustment, and a contractual service margin (CSM). When certain eligibility criteria are met, insurers may apply a simplified approach, the premium allocation approach (PAA), for the measurement of insurance contracts. PAA is eligible for insurance contracts with a coverage period of one year or less. This approach is also available for contracts where the PAA would not materially differ from the results of the GMM. In Sampo Group's P&C operations, PAA is applied to all insurance contracts as the coverage period for the main part of insurance contracts is one year or less, and for longer insurance contracts the qualifying eligibility criteria are fulfilled. The measurement of insurance liabilities consists of liability for remaining coverage (LRC), and liability for incurred claims (LIC) including both reported but not settled claims as well as incurred but not reported claims (IBNR). On initial recognition of P&C operations’ groups of insurance contracts the carrying amount of LRC is measured as premiums initially received less insurance acquisition cash flows. In case of onerous contracts, a loss component is recognized. SAMPO GROUP RESULTS FOR 2023 38 ===== SIDA 39 ===== The acquisition cash flows mainly include staff costs related to sales personnel and commissions as well as certain costs related to selling policies through price comparison websites. Any overhead costs are expensed immediately. Sampo Group's P&C operations in the private business area have elected to recognise acquisition cash flows as an expense at the date when they are incurred. For other business areas, the acquisition costs are deferred over the coverage period of the contracts, generally one year, or longer in case of expected renewals. Any acquisition cash flows paid relating to a group of insurance contracts not yet recognized are presented as a separate acquisition cash flow asset. At subsequent reporting periods, the carrying amount of LRC is increased by premiums received during the period and decreased by the amount recognised as insurance revenue for services provided in the period, which for most products is based on the passage of time (straight line basis). Consequently, any premium receipts pertaining to insurance services to be provided after the closing date remains in this liability. The carrying amount is also increased for any premiums received in subsequent periods less additional insurance acquisition cash flows paid. The carrying amount of LRC is not discounted or adjusted with the effect of financial risk as the time between providing services and the related premium due date generally is no more than a year. The liability for incurred claims (LIC) is intended to cover the future payments of all claims incurred, including claims not yet reported to the company and all claims handling expenses. Sampo Group measures the liability for incurred claims (LIC) for the group of insurance contracts at the amount of estimated fulfilment cash flows relating to incurred claims. Fulfilment cash flows consist of three components, namely expected cash flows, discounting and risk adjustment. The estimated future cash flows (best estimate) are calculated with the aid of statistical methods or through individual assessments of individual claims. Discounting Sampo Group's P&C operations have determined the discount rates based on a bottom-up approach. The interest rate curve includes a risk-free rate (excluding credit risk adjustment) and an illiquidity premium for each currency. The illiquidity premium is mainly derived based on a portfolio of high-rated bonds for the liquid part of the interest rate curve. Beyond this, the curve converges to the ultimate forward rate, consistent with the EIOPA curves. The discounting effect of current year liabilities for incurred claims and changes in the cash flows are recognised in the insurance service result. Unwinding of interest rates, effect of changes in interest rates and other financial assumptions are presented as insurance finance income or expense in profit or loss. Sampo Group has elected not to apply the OCI option allowed under IFRS 17. Risk adjustment IFRS 17 introduces an explicit risk adjustment included in the measurement of insurance liabilities. The risk adjustment reflects the cost of uncertainty associated with the amount and timing of cash flows arising from non- financial risk and the degree of risk aversion. The risks typically considered in P&C operations, when assessing risk adjustment, are reserve risk, longevity risk, inflation risk and premium risk. In Sampo Group, the risk adjustment is derived through a confidence level technique whereby management determines the appropriate quantile. The risk adjustment is calculated at the subsidiary level and aggregated into the consolidated Sampo Group level risk adjustment, without any diversification effects assumed. Under the premium allocation approach, the risk adjustment is only included in LIC, unless a group of insurance contracts is onerous. Reinsurance contracts The PAA model is applied to reinsurance contracts held. The corresponding policies as for measuring the insurance contracts issued are applied when measuring the reinsurance contracts held. Thus, correspondingly to insurance liabilities for issued insurance contracts, the reinsurance assets for reinsurance contracts held consist of asset for remaining coverage and asset for incurred claims. The asset for incurred claims also takes into consideration the effect of the risk of non-performance by the issuer of the reinsurance contract. SAMPO GROUP RESULTS FOR 2023 39 ===== SIDA 40 ===== Presentation The implementation of IFRS 17 leads to significant changes in the presentation and the extent of disclosures in the financial statements during 2023. Statement of profit or loss and other comprehensive income The introduction of IFRS 17 changes the structure of the statement of profit or loss to reflect the key sources of profit. The insurance service result, comprising of insurance revenue, insurance service expenses and reinsurance result, reflects the result relating to underwriting and servicing insurance policies. The net financial result reflects the impacts arising from financial components of insurance contracts. Insurance revenue Insurance revenue reflects the compensation that Sampo receives from the policyholder in return for the transfer of risk (insurance contract services) on an earned basis. The insurance revenue recognized in the reporting period is based on premium receipts and expected premium receipts allocated linearly over the underlying terms of the insurance contracts, i.e. based on the passage of time. The liability for remaining coverage is reduced with a corresponding amount as the insurance revenue. Insurance service expenses The insurance service expenses comprise of both claims incurred and operating expenses. Claims incurred for the reporting period include claims payments during the period and changes in the liability for incurred claims. The change in liability for incurred claims includes the changes in undiscounted best estimate, discounted risk adjustment and the changes in discounting effect due to changes in underlying best estimate or changes in payment patterns. The claims incurred also include claims handling expenses and changes in the loss component. Operating expenses reported in the insurance service result relate to administrative expenses arising from the handling of insurance contracts. Additionally, the operating expenses include the acquisition cash flows recognised in profit or loss, where the liability for remaining coverage changes with a corresponding amount. Reinsurance result Reinsurance result comprises both reinsurance premium expenses and reinsurer’s share of claims incurred. Reinsurance premium expenses related to reinsurance contracts held are recognized similarly to insurance revenue and reflect the premium payments that are attributable to the reporting period for the reinsurance contract services received. Any commissions received reduce the reinsurance premium expenses. The reinsurers’ share of claims incurred is reported consistently with Insurance service expenses and also includes changes in the risk of non-performance. Insurance finance income or expenses The insurance finance income or expenses included in the net financial result reflects the impacts arising from financial components. This includes changes in the liability for incurred claims related to changes in discount rates and time value of money (unwinding). Therefore, the effect from changes in interest rates as well as interest expense is presented in its entirety as insurance finance income or expenses. The effect of changes in indexation of annuities is also presented within insurance finance income or expenses. Amounts related to reinsurance contracts are presented separately.The option to present changes in discounting effect in other comprehensive income is not applied. Key management judgement Sampo Group management applies judgement regarding the determination of discount rates and risk adjustment. As noted above, the interest rate curve includes a risk-free rate and an illiquidity premium. Management determines the principles for the illiquidity premium, which in Sampo Group is mainly derived based on a portfolio of high-rated bonds. SAMPO GROUP RESULTS FOR 2023 40 ===== SIDA 41 ===== Risk adjustment is determined separately for all Sampo Group’s companies and aggregated at the Group level. Management considers this to reflect the compensation that different entities would require for bearing non- financial risk and their degree of risk aversion. As noted above, a confidence level approach is applied in the Group companies. The confidence level applied in calculating the risk adjustment is varying between group companies from 75 percent to 85 percent. IFRS 9 Financial Instruments Financial assets - classification Financial assets are classified as being subsequently measured either at amortized cost, at fair value through other comprehensive income (FVOCI) or at fair value through profit or loss (FVPL). Under IFRS 9, the majority of Sampo Group’s financial assets are classified at fair value through profit or loss and only a limited amount of financial assets are measured at amortised cost and no financial assets are classified as FVOCI. The classification of financial assets into these measurement categories is based on Sampo Group’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets (solely payments of principal and interest -criteria, SPPI). SPPI criteria is met when the financial instrument’s contractual cash flows are solely payments of principal and interest on the principal amount outstanding. A financial asset is measured at amortized cost only if the objective of the business model is to hold a financial asset in order to collect contractual cash flows, and the contractual cash flows of the financial asset meet the SPPI criteria. Interest revenue is calculated using the effective interest rate method. Under IFRS 9 financial assets subsequently measured at amortized cost are subject to loss allowance, expected credit losses (ECL), requirements. Financial assets - impairment IFRS 9 introduces a forward-looking ECL model, which in Sampo Group, is mainly applicable to financial assets measured at amortized cost. Impairment requirements do not apply to equity instruments or other financial instruments measured at FVPL. Expected credit losses reflect past events, i.e. historical loss experience, current conditions and forecasts of future economic conditions. IFRS 9 introduces a general approach for impairment in which a loss allowance is calculated either for 12-month expected credit losses or lifetime expected credit losses. A three staged model is used to determine the ECL at each reporting date. In stage 1 the credit risk has not increased significantly. Loss allowance is measured at an amount equal to 12-month expected credit losses. In stage 2 and 3 the credit risk has increased significantly since initial recognition and the loss allowance is measured at an amount equal to the lifetime expected credit losses. In stage 3 the financial asset is assessed to be credit-impaired (at default) and the interest is calculated on the credit- impaired amount instead of gross carrying amount. In Sampo Group the general approach is based on three components, namely probability of default (PD), loss given default (LGD) and exposure at default (EAD). Financial liabilities Sampo Group measures derivative financial liabilities at fair value through profit or loss. Financial liabilities, including subordinated debt securities, debt securities in issue and other financial liabilities, are subsequently measured at amortised cost using the effective interest rate method. SAMPO GROUP RESULTS FOR 2023 41 ===== SIDA 42 ===== Result by segment for twelve months ended 31 December 2023 GWP & brokerage income 5,468 1,339 2,063 — — 8,870 Insurance revenue, net (incl. brokerage) 4,996 1,288 1,251 — — 7,535 Claims incurred, net -3,377 -862 -714 — — -4,953 Operating expenses -777 -233 -409 — — -1,419 Underwriting result 842 194 128 — — 1,164 Net investment income 871 107 79 -37 -13 1,006 Insurance finance income or expense, net -331 -79 -35 — — -446 Net financial result 539 27 44 -37 -13 560 Other items -24 -59 -42 -122 4 -243 Profit before taxes 1,358 162 129 -160 -9 1,481 Income taxes -285 -43 -11 0 — -339 Profit from the continuing operations 1,073 119 118 -160 -9 1,142 Discontinued operations, net of tax * — — — — 9 251 Net profit 1,393 Other comprehensive income Items reclassifiable to profit or loss Exchange differences -23 -3 24 — 0 -1 Cash flow hedges — — -1 — — -1 Total items reclassifiable to profit or loss, net of tax -23 -3 23 — 0 -3 Items not reclassifiable to profit or loss Actuarial gains and losses from defined pension plans -6 — — — — -6 Taxes 1 — — — — 1 Total items not reclassifiable to profit or loss, net of tax -5 — — — — -5 Total other comprehensive income for the continuing operations, net of tax -28 -3 23 — — -8 Total comprehensive income 1,045 117 141 -160 -9 1,386 Profit attributable to Owners of the parent 1,323 Non-controlling interests 70 Total comprehensive income attributable to Owners of the parent 1,316 Non-controlling interests 70 EURm If Topdanmark Hastings Holding Elim. Sampo Group Mandatum segment has been presented in the table on a single line as a discontinued operation, and therefore, the Group’s net profit by lines do not reconcile to the segment totals. *) The elimination totalling EUR 9 million is related to intra-segment operations between the reportable segments and discontinued operation. The segment result formula has been adjusted in Q4/2023 to align the presentation with the management’s follow-up and ratio calculation. Hastings’ income and expenses previously included in line-item “Other P&C other insurance related income/expense” are now split into ‘Insurance revenue, net (incl. brokerage)’ and ‘Operating expenses’. SAMPO GROUP RESULTS FOR 2023 42 ===== SIDA 43 ===== Result by segment for twelve months ended 31 December 2022 GWP & brokerage income 5,432 1,308 1,636 — — 8,375 Insurance revenue, net (incl. brokerage) 5,024 1,255 998 — — 7,277 Claims incurred, net -3,550 -809 -509 — — -4,867 Operating expenses -801 -216 -361 — — -1,379 Underwriting result 673 230 128 — — 1,031 Net investment income 278 -142 16 177 -8 320 Insurance finance income or expense, net 610 115 11 — — 736 Net financial result 888 -28 27 177 -8 1,056 Other items -11 -45 -49 -31 -28 -163 Profit before taxes 1,550 158 107 146 -36 1,924 Income taxes -325 -40 -8 8 — -366 Profit from the continuing operations 1,225 117 98 153 -36 1,559 Discontinued operations, net of tax — — — — 36 579 Divested operations, net of tax — 102 — — — 102 Net profit 2,240 Other comprehensive income Items reclassifiable to profit or loss Exchange differences -169 -1 -106 8 — -268 Available-for-sale financial assets -823 — -58 -240 — -1,121 Taxes 169 — — 40 — 209 Total items reclassifiable to profit or loss, net of tax -823 -1 -164 -192 — -1,180 Items not reclassifiable to profit or loss Actuarial gains and losses from defined pension plans 32 — — — — 32 Taxes -7 — — — — -7 Total items not reclassifiable to profit or loss, net of tax 26 — — — — 26 Total other comprehensive income for the continuing operations, net of tax -797 -1 -164 -192 — -1,154 Other comprehensive income for the discontinued operations, net of tax -484 Other comprehensive income, total net of tax -1,639 Total comprehensive income 428 117 -66 -39 -36 601 Profit attributable to Owners of the parent 2,107 Non-controlling interests 133 Total comprehensive income attributable to Owners of the parent 468 Non-controlling interests 133 EURm If Topdanmark Hastings Holding Elim. Sampo Group Mandatum segment has been presented in the table on a single line as a discontinued operation, and therefore, Group total by lines do not reconcile to the segment totals. SAMPO GROUP RESULTS FOR 2023 43 ===== SIDA 44 ===== Balance sheet by segment at 31 December 2023 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 Total equity 7,687 Total equity and liabilities 24,225 EURm If Topdanmark Hastings Holding Elim. Sampo Group . SAMPO GROUP RESULTS FOR 2023 44 ===== SIDA 45 ===== Balance sheet by segment at 31 December 2022 Assets Property, plant and equipment 190 112 23 26 4 — 355 Investment property 1 — — 166 — — 166 Intangible assets 588 1,232 1,501 172 1 — 3,494 Investments in associates 4 7 — 4 — — 16 Financial assets 10,451 2,584 1,149 3,776 8,250 -6,644 19,565 Financial assets related to unit-linked contracts — — — 9,930 — — 9,930 Deferred income tax 9 7 — — — -4 11 Insurance contract assets — — — 6 — — 6 Reinsurance contract assets 264 79 1,477 1 — — 1,821 Other assets 394 66 127 162 60 -34 775 Cash and cash equivalents 296 8 246 761 1,762 — 3,073 Total assets 12,197 4,094 4,521 15,004 10,077 -6,682 39,212 Liabilities Insurance contract liabilities 6,693 1,763 2,434 5,321 — — 16,210 Investment contract liabilities — — — 7,103 — — 7,103 Subordinated debts 224 148 — 350 1,489 -228 1,983 Other financial liabilities 7 55 73 3 1,320 — 1,457 Deferred income tax 306 120 79 160 0 — 666 Other liabilities 1,079 166 118 224 64 -34 1,617 Total liabilities 8,309 2,252 2,704 13,159 2,873 -262 29,035 Equity Share capital 98 Reserves 1,530 Retained earnings 8,482 Other components of equity -492 Equity attributable to owners of the parent 9,618 Non-controlling interests 560 Equity 10,178 Total equity and liabilities 39,212 EURm If Topdanmark Hastings Mandatum Holding Elim. Sampo Group SAMPO GROUP RESULTS FOR 2023 45 ===== SIDA 46 ===== Other notes, EURm 1 Insurance service result Insurance revenue Insurance contracts measured under PAA Gross written premiums 8,513 8,053 Change in liability for remaining coverage -329 -204 Brokerage revenue 233 213 Total insurance revenue from contracts measured under PAA 8,417 8,062 Total insurance revenue 8,417 8,062 Insurance service expenses Expenses related to claims incurred Claims paid and benefits -5,292 -4,844 Claims handling expenses -468 -481 Change in liability for incurred claims -29 -220 Change in risk adjustment -9 13 Change in loss component -12 12 Insurance service expenses related to claims incurred -5,810 -5,519 Operating expenses -1,266 -1,239 Total insurance service expenses -7,076 -6,759 Reinsurance result Premiums -1,005 -894 Claims recovered 857 652 Total reinsurance result -148 -242 Total insurance service result 1,193 1,062 EURm 1-12/2023 1-12/2022 The table does not include Mandatum Group’s figures. For further information, please see note 11. During Q4/2023 Sampo decided to change the reference point in discounting used in If for disaggregation from the beginning of year to the beginning of quarter. The change in the reference point had an impact on the split of discounting effects between the insurance service result and insurance finance income and expenses. Under the new methodology, current year discounting effects identified in If’s insurance service result are estimated at EUR 168 million for the full-year 2023. SAMPO GROUP RESULTS FOR 2023 46 ===== SIDA 47 ===== 2 Net investment income The net investment income consists of investment income and expenses from financial assets and liabilities held by the group companies. Figures for the comparative year are presented in accordance with IAS 39 Financial Instruments: Recognition and Measurement. Derivative financial instruments Interest income 6 1 Interest expense -23 -12 Net gains or losses 5 136 Derivative financial instruments, total -12 126 Financial assets at fair value through profit or loss Debt securities Interest income 447 43 Net gains or losses 364 -147 Equity securities Dividend income 59 32 Net gains or losses 64 -26 Funds Distributions 5 — Interest income 11 2 Net gains or losses 60 -1 Financial assets at fair value through profit or loss, total 1,010 -97 Financial assets available-for-sale (IAS 39) Debt securities n/a 255 Equity securities n/a 45 Funds n/a 6 Financial assets available-for-sale, total n/a 305 Financial assets at amortised cost 23 n/a Loans and receivables n/a -4 Total income or expenses from financial assets 1,021 330 Other Dividend income from associates — 157 Expenses from asset management -19 -23 Other income 34 16 Other expenses -26 -153 Fee expenses -1 0 Expenses from investment property -4 -7 Total other -15 -10 Total net investment income 1,006 320 EURm 1-12/2023 1-12/2022 The table does not include Mandatum Group’s figures. For further information, please see note 11. The amount of expected credit losses on financial assets measured at amortised cost is presented in the note 6. SAMPO GROUP RESULTS FOR 2023 47 ===== SIDA 48 ===== 3 Net finance income or expense from insurance contracts Insurance contracts Unwinding of discount rate -322 -132 Effect of changes in interest rates and other financial assumptions -207 959 Total finance income or expenses from insurance contracts -529 827 Reinsurance contracts Unwinding of discount rate 74 39 Reinsurers' share of effect of changes in interest rates and other financial assumptions 9 -130 Total finance income or expenses from reinsurance contracts 83 -90 Net finance result insurance and reinsurance contracts -446 736 EURm 1-12/2023 1-12/2022 The table does not include Mandatum Group’s figures. For further information, please see note 11. Due to the change in reference point in discounting in If, the unwind of discount rate included in finance income or expense was EUR -180 million for the full year. 4 Other income Other income 265 345 Income related to broker activities 12 6 Total other income 277 350 EURm 1-12/2023 1-12/2022 The table does not include Mandatum Group’s figures. For further information, please see note 11. If’s other operating income includes approximately EUR 144 million (138) 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 115 million (106) 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 Goodwill 2,469 2,385 Customer relations 452 463 Trademark 396 224 Other intangible assets 320 422 Group intangible assets, total 3,637 3,494 EURm 12/2023 12/2022 The comparative period includes Mandatum Group’s figures. For further information, please see note 11. On 1 December 2023, Topdanmark acquired 100% of the shares of Oona Health A/S. For more information regarding the acquisition and goodwill, please see note 13. SAMPO GROUP RESULTS FOR 2023 48 ===== SIDA 49 ===== 6 Financial assets The financial assets for the reporting period are presented in accordance with IFRS 9 Financial Instruments. Figures for comparative year are presented in accordance with IAS 39 Financial Instruments: Recognition and Measurement. The comparative period includes Mandatum Group’s figures. Financial assets Derivative financial instruments 38 101 Financial assets at fair value through profit or loss Debt securities 12,925 1,941 Equity securities 1,640 560 Funds 662 — Deposits and other 40 544 Total financial assets at fair value through profit or loss 15,267 3,045 Financial assets available-for-sale (IAS 39) Debt securities n/a 12,815 Equity securities n/a 1,581 Funds n/a 1,652 Total financial assets available-for-sale n/a 16,048 Financial assets measured at amortised cost Loans 451 n/a Other 1 n/a Total financial assets measured at amortised cost 452 n/a Loans and receivables (IAS 39) n/a 371 Total financial assets 15,757 19,565 EURm 12/2023 12/2022 The comparative period includes Mandatum Group’s figures. For further information, please see note 11. Due to the demerger on 1 October 2023, Sampo recognised the loan receivable from Mandatum plc amounting to EUR 102 million in order to allocate general liabilities. Loan receivable is measured at amortised cost. In connection with the demerger, Sampo sold certain financial assets to Mandatum at fair market value. These assets included holdings in Enento Group, guarantee shares of Kaleva Mutual Insurance Company and other smaller equity, debt and alternative investments. In addition, Sampo and Mandatum have agreed on the sale of shares in Saxo Bank, but the sale is subject to approvals from authorities. For more information regarding the sale of Saxo, please see note 14. Loans measured at amortised cost include Hastings’ loans to customers amounting to EUR 186 million (EUR 75 million). The gross carrying amounts of the financial assets measured at amortised cost was EUR 468 million and loss allowance was EUR 16 million on 31 December 2023. During the reporting period, the expected credit losses recognised in the income statement was EUR 10 million. SAMPO GROUP RESULTS FOR 2023 49 ===== SIDA 50 ===== 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 two most prominent equity investments are 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. SAMPO GROUP RESULTS FOR 2023 50 ===== SIDA 51 ===== 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 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 SAMPO GROUP RESULTS FOR 2023 51 ===== SIDA 52 ===== 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 SAMPO GROUP RESULTS FOR 2023 52 ===== SIDA 53 ===== Comparative year figures are presented in accordance with IAS 39 Financial Instruments: Recognition and Measurement. The comparative period includes Mandatum Group’s figures. For further information, please see note 11. EURm 31 December 2022 Carrying amount Level 1 Level 2 Level 3 Total Financial assets at fair value Derivative financial instruments Interest rate swaps 5 — 5 — 5 Foreign exchange derivatives 74 — 74 — 74 Other derivatives 22 — 22 — 22 Total 101 — 101 — 101 Financial assets at fair value through profit or loss Equity securities 560 111 24 425 560 Debt securities 1,881 1,718 159 5 1,881 Total 2,441 1,829 183 430 2,441 Financial assets designated as at fair value through profit or loss Deposits 544 — 544 — 544 Debt securities 1 — 1 — 1 Debt securities (unit-trusts) 60 43 16 — 60 Total 604 43 561 — 604 Financial assets related to unit- linked insurance Equity securities 676 643 2 31 676 Debt securities 941 90 757 94 941 Funds 7,883 4,880 676 2,327 7,883 Derivative financial instruments 18 — 18 — 18 Other assets 412 — 412 — 412 Total 9,930 5,612 1,865 2,453 9,930 Financial assets available-for-sale Equity securities 1,581 1,224 2 354 1,581 Debt securities 12,815 7,941 4,832 43 12,815 Other assets 1,652 775 72 806 1,652 Total 16,048 9,940 4,906 1,203 16,048 Total financial assets at fair value 29,125 17,425 7,614 4,086 29,125 Other financial assets Financial assets at amortised cost Loans and receivables 371 — — 370 370 Total 371 — — 370 370 Group's financial assets, total 29,495 17,425 7,614 4,456 29,495 SAMPO GROUP RESULTS FOR 2023 53 ===== SIDA 54 ===== EURm 31 December 2022 Carrying amount Level 1 Level 2 Level 3 Total Financial liabilities at fair value Derivative financial instruments Interest rate derivatives 45 — 45 — 45 Foreign exchange derivatives 7 — 7 — 7 Other derivatives 3 — 3 — 3 Total 55 — 55 — 55 Total financial liabilities at fair value 55 — 55 — 55 Financial liabilities measured at amortised cost Subordinated debt securities Subordinated loans 1,983 1,409 478 — 1,887 Debt securities in issue Bonds 1,306 1,126 110 — 1,236 Borrowings on Revolving Credit Facility 73 — — 73 73 Amounts owed to credit institutions 23 23 — — 23 Financial liabilities measured at amortised cost total 3,384 2,558 588 73 3,219 Group financial liabilities, total 3,439 2,558 643 73 3,274 SAMPO GROUP RESULTS FOR 2023 54 ===== SIDA 55 ===== Transfers between levels 1 and 2 EURm 1-12/2023 1-12/2022 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 378 334 — — Total 378 334 — — Financial assets related to unit-linked insurance Debt securities 13 6 Total 13 6 Financial assets available-for-sale Debt securities 632 500 Total 632 500 Transfers are based mainly on the changes of trading volume information provided by an external service provider. Comparative year figures are presented in accordance with IAS 39 Financial Instruments: Recognition and Measurement. The comparative period includes Mandatum Group’s figures. For further information, please see note 11. Sensitivity analysis of fair values Sensitivities presented for the reporting period do not include Mandatum’s figures. The sensitivity of financial assets and liabilities to changes in exchange rates is assessed on business area level due to different base currencies. EURm 12/2023 12/2022 Recognised in profit or loss Recognised in profit or loss Recognised in equity If 10 percentage point depreciation of all other currencies against SEK 4 13 2 Topdanmark 10 percentage point depreciation of all other currencies against DKK -1 -11 No impact Hastings 10 percentage point depreciation of all other currencies against GBP — n/a n/a Holding 10 percentage point depreciation of all other currencies against EUR -73 No impact -109 SAMPO GROUP RESULTS FOR 2023 55 ===== SIDA 56 ===== 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 31 December 2023. 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 358 -340 -266 -166 Total effect 358 -340 -266 -166 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 At 31 December 2023 Gains/ losses included in p/l for financial assets 1-12/2023 Financial assets at fair value through profit or loss Debt securities 134 1 11 -126 19 3 Equity securities 763 -14 9 -28 730 -14 Funds 212 0 — -61 151 — Total 1,109 -13 20 -216 900 -11 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. SAMPO GROUP RESULTS FOR 2023 56 ===== SIDA 57 ===== EURm Financial assets At 1 Jan Total gains/ losses in income statement Total gains/ losses recorded in other compre- hensive income Purchases and re- classifi- cations Sales Settle- ments Transfers from level 1 and 2 Transfers to levels 1 and 2 At 31 Dec 2022 Gains/ losses included in p/l for financial assets 1-12/2022 Financial assets at fair value through p/l Equity securities — — — 425 — — — — 425 — Debt securities 11 0 — — -6 — — — 5 1 Total 11 0 — 425 -6 — — — 430 1 Financial assets related to unit-linked insurance contracts Equity securities 20 1 — 15 -5 — — — 31 1 Debt securities 61 -8 — 108 -81 -23 40 -3 94 -8 Funds 2,065 -16 — 598 -315 — — -5 2,327 -23 Total 2,145 -22 — 721 -401 -23 40 -7 2,453 -30 Financial assets available-for-sale Equity securities 394 6 -41 2 -7 — — — 354 -41 Debt securities 73 0 0 17 -18 — — -30 43 2 Funds 1,078 11 -226 44 -101 — — — 806 -216 Total 1,545 16 -267 64 -125 — — -30 1,203 -255 Total financial assets measured at fair value 3,702 -6 -267 1,210 -533 -23 40 -37 4,086 -284 Purchases and reclassifications include the reclassification of Nordax associate shares EUR 425 million to equity securities at fair value through p/l. The comparative period includes Mandatum Group’s figures. For further information, please see note 11. 1–12/2022 EURm Realised gains and losses Fair value gains and losses Total Total gains or losses included in profit or loss for the financial year -6 -267 -273 Total gains or losses included in profit or loss for assets held at the end of the financial year -17 -267 -284 SAMPO GROUP RESULTS FOR 2023 57 ===== SIDA 58 ===== Sensitivity analysis of level 3 financial instruments measured at fair value 12/2023 12/2022 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 — — Equity securities 730 -146 — — Funds 151 -30 — — Total 900 -176 — — Financial assets available-for-sale (IAS 39) Debt securities — — 43 -1 Equity securities — — 354 -71 Funds — — 806 -161 Total — — 1,203 -233 The comparative period includes Mandatum Group’s figures. For further information, please see note 11. 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 million for the debt instruments, and EUR -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 2.4 per cent. During the comparison period, Sampo Group carried no investment risks related to unit-linked insurance, so a change in assumptions regarding these assets did not affect profit or loss. On the basis of these alternative assumptions, a possible change in interest levels would have caused a reduction of EUR -1 million for the debt instruments, and EUR -232 million valuation loss for other instruments in the Group’s other comprehensive income. The reasonably possible effect, proportionate to the Group’s equity, would have been 2.6 per cent. SAMPO GROUP RESULTS FOR 2023 58 ===== SIDA 59 ===== 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. Insurance contract liability - contracts measured under PAA Liability for remaining coverage 1,709 1,514 Liability for incurred claims 10,007 9,376 Insurance contract liability - contracts measured under GMM and VFA Liability for remaining coverage — 5,299 Liability for incurred claims — 22 Total insurance contract liabilities 11,716 16,210 EURm 12/2023 12/2022 The comparative period includes Mandatum Group’s figures. For further information, please see note 11. 10 Financial liabilities Subordinated debt liabilities Subordinated loans 1,645 1,983 Total subordinated debt liabilities 1,645 1,983 Other financial liabilities Derivative financial instruments 116 55 Financial liabilities measured at amortised cost Debt securities in issue 959 1,306 Amounts owed to credit institutions 194 96 Total financial liabilities measured at amortised cost 1,153 1,402 Total other financial liabilities 1,269 1,457 Total financial liabilities 2,914 3,439 EURm 12/2023 12/2022 The comparative period includes Mandatum Group’s figures. For further information, please see note 11. Hastings has a revolving credit facility with a financial institution totalling EUR 98 million, of which EUR 56 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 86 million with a maturity date of 29 October 2026. SAMPO GROUP RESULTS FOR 2023 59 ===== SIDA 60 ===== 11 Discontinued operations Mandatum Group’s business Mandatum is a major financial services provider that combines expertise in money and life and offers customers a wide array of services covering asset and wealth management, savings and investment, compensation and rewards, pension plans and personal risk insurance. Mandatum offers services to three customer segments: corporate customers, retail customers as well as institutional and wealth management customers. Mandatum was a wholly-owned direct subsidiary of Sampo plc. In Sampo Group financial reporting, it formed a reporting segment in accordance with IFRS 8 Operating Segments. 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 on 1 October 2023. For more information related to classification of Mandatum, please see section Accounting principles. Key accounting principles Sampo Group applies IFRS 17 Insurance Contracts from 1 January 2023. The comparative information for the year 2022 has been restated. Sampo Group applied the temporary exemption regarding the adoption of IFRS 9 Financial Instruments and implemented IFRS 9 at the same time as IFRS 17 Insurance Contracts i.e. on 1 January 2023. The IFRS 9 comparative figures 2022 are not restated. As the new standards, IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments, are applied from 1 January 2023 in Sampo Group, Mandatum’s reporting is done in accordance with these standards as well. In the following chapters, the key accounting principles related to IFRS 17 Insurance Contracts in Mandatum Group are presented in short. New accounting principles related to IFRS 9 Financial Instruments are included in section Accounting principles. IFRS 17 Insurance Contracts General measurement model (GMM) IFRS 17 introduces a general measurement model (GMM) applicable to all insurance contracts to measure insurance contract liabilities. In Mandatum, GMM is applied to with profit policies and risk policies. Under the general measurement, model insurance contracts are measured based on future cash flows, adjusted to reflect the time value of money, including a risk adjustment, and a contractual service margin (CSM). CSM represents the unearned profit that will be recognised when insurance contract services are provided in the future. On initial recognition, life operations measure a group of insurance contracts as the total of the fulfilment cash flows, comprising of estimates of future cash flows, discounting and risk adjustment for non-financial risk. In addition, the measurement includes the contractual service margin, which is measured at initial recognition on the group of the insurance contracts. For insurance contracts related to life operations, estimates of future cash flows are based on cash flow projections and are estimated until the maturity of the contract. Only risk policies with no death benefit or permanent disability cover are short term (yearly) contracts. Cash flows are estimated for every reporting period and assumptions are updated yearly or more often, if needed. Insurance acquisition cash flows are determined at inception of the group of insurance contracts. Insurance acquisition cash flows are considered directly attributable to a portfolio and are allocated to individual contracts. Where actual and expected acquisition cash flows are not equal at the end of the reporting period, an experience adjustment is recognized in the statement of profit or loss. Mandatum has determined the discount rates based on a top-down approach where a theoretical reference portfolio of assets is used to define the applicable discount curve, consisting of risk-free rate and illiquidity SAMPO GROUP RESULTS FOR 2023 60 ===== SIDA 61 ===== premium. For insurance contracts without a direct participation feature, a so called locked-in rate is applied, meaning that the discount rate is determined at the initial recognition and is applied in the accretion of CSM. IFRS 17 introduces an explicit risk adjustment included in the measurement of insurance liabilities. The risk adjustment reflects the cost of uncertainty associated with the amount and timing of cash flows arising from non- financial risk and the degree of risk aversion. In Sampo Group the risk adjustment will be derived through a confidence level technique whereby management determines the appropriate quantile. The risk adjustment is calculated at the subsidiary level and aggregated into the consolidated Sampo Group level risk adjustment, without any diversification effects assumed. Under the general measurement model, the risk adjustment is included in the calculation of both LRC and LIC. In regards the risk adjustment, the following risks are considered in life operations: mortality, longevity, disability (including permanent disability), lapse and expense risk. At the subsequent reporting periods, the amount of insurance liabilities is a sum of the LRC consisting of the present value of future cash flows for services that will be provided during future periods, risk adjustment, remaining CSM at that date and LIC. LIC includes reported but not settled claims and incurred but not reported claims. Variable fee approach (VFA) Under IFRS 17 the variable fee approach (VFA) is to be applied to direct participating insurance contracts. The variable fee approach represents a modification from the general measurement model where the treatment of contractual service margin is modified. The CSM is adjusted to reflect the variable nature of the fees, which represent the amount of the entity’s share of the fair value of underlying items. In Mandatum VFA is applied to unit-linked insurance contracts measured under IFRS 17. In addition, a significant part of life insurance liabilities is under the scope of IFRS 9. Mandatum recognises these investment contract liabilities (unit-linked policies) at fair value through profit or loss. The fair value is based on the financial assets underlying these policies and recognised at FVPL. Result of discontinued operations Insurance revenue 255 328 Insurance service expenses -213 -292 Reinsurance result -1 -2 Insurance service result 41 34 Net investment result 658 -829 Net finance income or expense from insurance contracts -161 920 Net result from investment contracts -369 577 Net financial result 127 668 Other income 22 80 Other expenses -12 -59 Finance expenses -4 -6 Share of associates' profit or loss -1 0 Profit before taxes 173 718 Income taxes -33 -139 Discontinued operations, net of tax 140 579 Other comprehensive income from discontinued operations, net of tax — -484 Total comprehensive income from discontinued operations 140 94 EURm 1-9/2023 1-12/2022 The profit from the discontinued operations and total comprehensive income for the discontinued operations is attributable entirely to the owners of the parent. SAMPO GROUP RESULTS FOR 2023 61 ===== SIDA 62 ===== Profit from discontinued operations, amounting to 251 million, includes Mandatum’s result until 30 September 2023 amounting to 140 million, the difference from the derecognition of the dividend liability amounting to 9 million and the recognition of loan receivable from Mandatum amounting to 102 million. Earnings per share from discontinued operations was EUR 0.5. Effect on the financial position of the Group Assets Property, plant and equipment 24 Investment property 132 Intangible assets 172 Investments in associates 3 Financial assets 3,555 Financial assets related to unit-linked contracts 10,979 Insurance contract assets 9 Reinsurance contract assets 1 Other assets 188 Cash and cash equivalents 673 Assets 15,736 Liabilities Insurance contract liabilities 5,290 Investment contract liabilities 7,972 Subordinated debts 250 Other financial liabilities 22 Deferred income tax 133 Other liabilities 244 Liabilities 13,910 EURm 9/2023 Cash flows from discontinued operations Net cash flows from operating activities 173 -129 Net cash flows from investing activities 20 -8 Net cash flows from financing activities -280 -166 Total cash flows -88 -303 EURm 1-9/2023 1-9/2022 Cash flows from financing activities include an internal dividend of EUR 150 million (150) and a group contribution of EUR 29 million (15) to Sampo plc. In addition, Mandatum repaid the subordinated loan to Sampo plc EUR 100 million in September 2023. SAMPO GROUP RESULTS FOR 2023 62 ===== SIDA 63 ===== 12 Business operations divested Topdanmark Forsikring's life and pension business On 18 March 2022, Sampo's subsidiary Topdanmark Forsikring A/S signed an agreement to divest of Topdanmark Liv Holding A/S and all of its subsidiaries to Nordea Life Holding AB. Illness and Accident in the Liv Holding Group were included in the divested operations. The transaction was approved by regulatory authorities and the transaction was completed on 1 December 2022. In Sampo Group, Topdanmark Life’s operations had been reported as part of Topdanmark’s segment. As Topdanmark’s life business did not represent a major line of business or geographic area of operations for Sampo Group, assets and liabilities related to Topdanmark Life’s operations were classified to non-current assets held for sale, in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. Results of divested operation Insurance revenue 244 Insurance service expenses -194 Reinsurance result 2 Insurance service result 52 Net investment result -1,114 Net finance income or expense from insurance contracts 1,106 Net financial result -9 Other income 3 Other expenses -13 Profit before taxes 32 Income taxes -2 Divested operations, net of tax 31 Sales gain 117 Net profit from the divested operations 148 EURm 1-11/2022 Due to the disposal, trademark related to Topdanmark Life was derecognised in the statement of profit in the Group, totalling EUR -46 million. SAMPO GROUP RESULTS FOR 2023 63 ===== SIDA 64 ===== 13 Business combinations On 1 December 2023, Topdanmark acquired 100% of the shares of Oona Health A/S, owner of Dansk Sundhedssikring A/S (DSS), PrimaCare A/S and DSS Hälsa AB. DSS is an insurance company that offers health insurance to companies and private individuals. PrimaCare A/S is a network healthcare company providing physiotherapy, chiropractic and psychology services to insurance companies. DSS Hälsa AB is an insurance agency in Sweden providing health insurance products and administration in connection with the insurance policies. The purchase price includes goodwill of EUR 237 million (DKK 1,770 million) which relates to the unique business model and operational setup of DSS. Goodwill will not be deductible for income tax purposes. The following table summarises the consideration paid for Oona Health and the assets acquired and liabilities assumed at the acquisition date. EURm 1 Dec 2023 Cash 257 Contingent consideration 12 Total purchase price 269 Acquisition related costs 5 Identified assets acquired and liabilities assumed Financial assets 39 Cash and cash equivalents 8 Intangible asset 87 Other assets 11 Total assets 146 Insurance contract liabilities 18 Other liabilities 96 Total liabilities 114 Total identifiable net assets 31 Goodwill 237 Purchase price 269 In accordance with the purchase agreement Topdanmark A/S took over 97% of the shares of Oona Health A/S at closing and will acquire the remaining 3% at a purchase price which is variable and dependent on profit after tax in 2026. The intangible assets include customer relationships of EUR 72 million (DKK 535 million) and trademarks of EUR 7 million (DKK 50 million). The revenue included in the statement of comprehensive income since 1 December 2023 contributed by Oona Health A/S was EUR 12 million (DKK 93 million) and profit EUR 2 million (DKK 14 million). The following table summarises the acquired assets and assumed liabilities: EURm 12/2023 Assets and liabilities Tangible and intangible assets 326 Financial assets 39 Other assets 9 Cash and cash equivalents 8 Total assets 383 Insurance contract liabilities 18 Other liabilities 108 Total liabilities 126 Total consideration paid in cash 257 SAMPO GROUP RESULTS FOR 2023 64 ===== SIDA 65 ===== 14 Contingent liabilities and commitments EURm 12/2023 12/2022 Off-balance sheet items Guarantees 9 9 Investment commitments 15 2,069 IT acquisitions 1 11 Other 2 2 Total 27 2,091 The comparative period includes Mandatum Group’s figures. The investment commitments in the upper table in 2022 were for the most part Mandatum’s commitments to private equity and credit funds. For further information, please see note 11. Assets pledged as collateral for liabilities or contingent liabilities 12/2023 12/2022 EURm Assets pledged Liabilities/ commitments Assets pledged Liabilities/ commitments Assets pledged as collateral Investment securities 408 293 362 169 Subsidiary shares 91 27 94 28 Cash and cash equivalents 63 36 19 32 Total 561 356 476 230 Assets pledged as security for derivative contracts Investment securities 9 8 Cash and cash equivalents 42 60 Assets pledged as security for insurance undertakings Investment securities 399 354 Assets pledged as security for loans Shares in subsidiaries 91 94 The pledged assets are included in the balance sheet item Financial assets, Other assets or Cash. Sampo and Mandatum have agreed on the sale of shares in Saxo Bank, but the sale is subject to approvals from authorities. Sampo has granted a loan amounting to EUR 280 million to Mandatum, which still remains undrawn at the end of reporting period. The loan is expected to be repaid within a period of 4 years from its issuance. 15 Subsequent events after the balance sheet date Change in reference point for disaggregation of IFRS 17 discounting effects in If On 18 January 2024, Sampo published a press release regarding technical changes in the calculation methodology for discounting effects in If. Following an analysis of the application of IFRS 17 over 2023 the reference point used in If P&C for disaggregation of IFRS 17 discounting effects has been changed from the beginning of year to the beginning of quarter. The change in reference point impacts on the split of discounting effects between the insurance service result ( ISR) and insurance finance income or expenses (IFIE), but not profit before taxes. This reflects the Group’s practice of providing financial results for individual quarters, and a desire to align more closely with common market practice and the approach taken by other Group companies. For more information, please see accounting principles. SAMPO GROUP RESULTS FOR 2023 65 ===== SIDA 66 =====