Sampo Group's results very good, dividend proposal

SAMPO PLC             PRESS RELEASE                8 February 2017 at 9:35 am

Sampo Group's results very good, dividend proposal highest ever

Sampo Group's profit before taxes for the fourth quarter of 2016 increased to EUR 528 million, compared to EUR 413 million in the comparison period. Full-year profit before taxes for 2016 amounted to EUR 1,871 million (1,888).

- Despite the low interest rate environment, 2016 was a very good year for us. Insurance technical result was excellent and combined ratio reached a new record, says Kari Stadigh , Group CEO and President.

Combined ratio for 2016 was 84.4 per cent including non-recurring items. Even adjusted for non-recurring items the combined ratio for 2016 was still best ever and amounted to 86.1 per cent. Previous year, the combined ratio amounted to 85.4 per cent including non-recurring items and 86.5 per cent excluding on-offs.

The Board proposes to the Annual General Meeting to be held on 27 April 2017 a dividend of EUR 2.30 per share. A dividend of EUR 2.15 per share was paid for year 2015. The proposed dividend payment amounts in total to EUR 1,288 million (1,204) and the dividend proposal is highest ever.

Other key figures for 2016

• Sampo Group's total comprehensive income for the period, taking changes in the market value of assets into account, rose to EUR 1,760 million (1,564).
• Earnings per share was almost unchanged at EUR 2.95 (2.96). Mark-to-market earnings per share improved to EUR 3.14 (2.79).
• Return on equity for the Group amounted to 15.0 per cent (14.0).
• Net asset value per share was EUR 24.86 (23.79).
• Profit before taxes for the P&C insurance was EUR 883 million (960).
• Sampo's share of Nordea's net profit for 2016 amounted to EUR 773 million (751).
• Profit before taxes in life insurance operations rose to EUR 210 million (181).

Outlook for 2017

Sampo Group's business areas are expected to report good operating results for 2017.

However, the mark-to-market results are, particularly in life insurance, highly dependent on capital market developments. The continuing low interest rate level also creates a challenging environment for reinvestment in fixed income instruments.

The P&C insurance operations are expected to reach their long-term combined ratio target of below 95 per cent in 2017 by a margin.

Nordea's contribution to the Group's profit is expected to be significant.

Sampo Group's Full-year Financial Report 2016 and Supplementary Financial Information Package are available at www.sampo.com/result .

Sampo will today arrange a Finnish-language press conference at Savoy, Eteläesplanadi 14 (7th floor), Helsinki, at 12:30 pm Finnish time.

An English-language conference call for investors and analysts will be arranged at 4 pm Finnish time (2 pm UK time). Please call +44 (0)330 336 9105, +1 719 325 4746, +46 (0)8 5033 6574 or +358 (0)9 7479 0361. The conference code is 8784082. The conference call can also be followed live at www.sampo.com/result .

For more information, please contact:

Maria Silander, Communications Manager, tel. +358 10 516 0031

Distribution: The principal media www.sampo.com