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| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

REPORTS FOR THE YEAR 2023
WWW.SAMPO.COM/YEAR 2023
Contents

Board of Directors’ Report 2023 ........................ | 3
Review of the 2023 financial year ....................... | 4
Outlook ......................................................................... | 7
Outlook for 202 4 .................................................. | 7
The major risks and uncertainties for the Group in the near-term ...................................... | 7
Dividend proposal ..................................................... | 8
Operating environment ........................................... | 9
Business areas ............................................................ | 10
If ................................................................................. | 10
Topdanmark ........................................................... | 13
Hastings ................................................................... | 14
Holding .................................................................... | 15
Financial position ...................................................... | 16
Group solvency ..................................................... | 16
Financial leverage position ............................... | 16
Ratings ..................................................................... | 17
Other developments ................................................ | 18
Demerger of Sampo plc .................................... | 18
Group Partial Internal Model application ..... | 19
Shares, share capital and shareholders ............. | 20
Shares and share capital ................................... | 20
Authorisations granted to the Board ............ | 22
Shareholders .......................................................... | 22
Holdings of the Board and Executive Management .......................................................... | 23
Share buyback programmes ............................ | 24
Governance and related issues ............................ | 25

Governance ............................................................ | 25
Annual General Meeting .................................... | 25
Risk management ................................................ | 27
Remuneration ........................................................ | 27
Changes in Group structure ............................. | 28
Changes in the Group management and the Board of Directors ....................................... | 30
Personnel ................................................................ | 32
Sustainability ............................................................... | 33
Highlights from year 2023 ................................ | 33
EU Taxonom y ........................................................ | 34
Events after the end of the reporting period .. | 41
Key figures ................................................................... | 42
Calculation of key figures ....................................... | 46
Group’s IFRS Financial Statements ................... | 48
Statement of profit and other comprehensive income ........................................... | 49
Consolidated balance sheet .................................. | 50
Statement of changes in equity ........................... | 51
Statement of cash flows ......................................... | 52
Group’s notes to the financial statements ...... | 53
Accounting principles .............................................. | 54
Segment information .............................................. | 72
Result by segment for twelve months ended 31 December 2023 .................................................... | 73
Result by segment for twelve months ended 31 December 2022 .................................................... | 74
Balance sheet by segment at 31 December 2023 ............................................................................... | 75

Balance sheet by segment at 31 December 2022 ............................................................................... | 76
Geographical information ....................................... | 77
Other notes .................................................................. | 78
Sampo plc’s Financial Statements ..................... | 190
Sampo plc’s income statement ............................ | 191
Sampo plc’s balance sheet .................................... | 192
Sampo plc’s statement of cash flows ................. | 193
Sampo plc’s notes to the financial statements ................................................................... | 194
Summary of significant accounting policies .... | 195
Notes 1–5 ...................................................................... | 196
Notes 6–8 ..................................................................... | 197
Note 9 ............................................................................ | 198
Notes 10-17 ................................................................... | 199
Notes 18–20 ................................................................. | 200
Note 21 ........................................................................... | 201
Approval of the Financial Statements and the Board of Directors’ Report ........................... | 202
Auditor’s Report ....................................................... | 204

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 2023 | 2 |  |

Board of Directors’ Report 2023

Review of the 2023 financial year ..................... | 4
Outlook ......................................................................... | 7
Outlook for 202 4 ....................................................... | 7
The major risks and uncertainties for the Group in the near-term ........................................... | 7
Dividend proposal .................................................... | 8
Operating environment .......................................... | 9
Business areas ............................................................ | 10
If ....................................................................................... | 10
Topdanmark ................................................................ | 13
Hastings ........................................................................ | 14
Holding .......................................................................... | 15
Financial position ..................................................... | 16
Group solvency .......................................................... | 16
Financial leverage position .................................... | 16
Ratings .......................................................................... | 17
Other developments ................................................ | 18
Demerger of Sampo plc .......................................... | 18
Group Partial Internal Model application .......... | 24
Shares, share capital and shareholders ........... | 20
Shares and share capital ......................................... | 20

Authorisations granted to the Board ................. | 22
Shareholders ............................................................... | 22
Holdings of the Board and Executive Management ............................................................... | 23
Share buyback programmes ................................. | 24
Governance and related issues ........................... | 25
Governance ................................................................. | 25
Annual General Meeting .......................................... | 25
Risk management ...................................................... | 27
Remuneration ............................................................. | 27
Changes in Group structure .................................. | 28
Changes in the Group management and the Board of Directors .................................................... | 30
Personnel ...................................................................... | 32
Sustainability .............................................................. | 33
Highlights from year 2023 ..................................... | 33
EU Taxonom y ............................................................. | 34
Events after the end of the reporting period | 41
Key figures .................................................................. | 42
Calculation of key figures ..................................... | 46

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 3 |  |

Board of Directors’ Report 2023
Review of the 2023 financial year
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. 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 2022 combined ratio under IFRS 4 included
significant items related to prior year development in
the fourth quarter, 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 the 4-5 per cent range observed over
2023 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. 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.
Following the announcement of the strategic review of
Mandatum on 7 December 2022, the Board of Directors
of Sampo plc resolved on 29 March 2023 to propose 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. The partial
demerger was completed on 1 October 2023 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. In
addition, the partial demerger had a positive accounting
effect of EUR 111 million in the Group’s profit before
taxes and net profit. Financial effects of the demerger
are disclosed in more detail in the section Demerger of
Sampo plc.
The Group’s profit before taxes from P&C operations
increased EUR 1,481 million after adjusting for IFRS 9
(803), but declined on a reported basis (1,924). Net
profit for the equity holders amounted to EUR 1,323
million (1,031), of which EUR 1,072 million (1,528) was
from continuing operations. Earnings per share
amounted to EUR 2.62 (3.97), of which EUR 2.12 (2.88)
was from continuing operations.
On 8 February 2024, Sampo plc’s Board of Directors
proposed 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.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 4 |  |

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. The financial leverage was 25.3 per cent
at the end of 2023, down from 25.6 per cent at the end
of 2022. 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.
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.
On 20 June 2023, Sampo announced a submission of an
application for a Group Partial Internal Model for
purposes of solvency capital requirement calculation to
the Finnish Financial Supervisory Authority. Following
the completion of the partial demerger, 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
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. The application process is
expected to be completed during the first half of 2024.
Sampo will issue a report on non-financial information in
accordance with Chapter 3a, Section 5 of the
Accounting Act. The report, Sampo Group
Sustainability Report 2023, will be separate from
the Board of Directors’ Report and published
around the turn of March and April 2024 at
www.sampo.com/year2023.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 5 |  |

Key figures
Sampo Group, 2023

EURm | 1–12/2023 | 1–12/2022 | Change, %
Profit before taxes (P&C Operations) | 1,481 | 1,924 | -23
If | 1,358 | 1,550 | -12
Topdanmark | 162 | 158 | 3
Hastings | 129 | 107 | 21
Holding | -160 | 146 | —
Net profit for the equity holders | 1,323 | 2,107 | -37
Underwriting result | 1,164 | 1,031 | 13
|  |  | Change
Earnings per share (EUR) | 2.62 | 3.97 | -1.36
Operational result per share (EUR) | 2.07 | — | —
Return on equity, % | 15.6 | 4.2 | 11.4
Profit before taxes (adjusted for IFRS 9), EURm* | 1,481 | 803 | 84%

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.
Financial targets
Sampo Group, 2021-2023

| Target | 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%

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 6 |  |

Outlook
Outlook for 2024
Sampo Group is expected to deliver a combined ratio in
2024 that meets the 2024-2026 annual target of below
85 per cent, including an assumed discount rate benefit
of 2 percentage points.
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 on
whether central banks will be keeping interest rates
elevated longer than expected. This may lead to both a
significant slowdown in economic growth and a
deterioration in the debt service capacity of businesses,
households and governments, raising the risk of abrupt
asset repricing in financial markets. Furthermore, the
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
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.

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| BOARD OF DIRECTORS’ REPORT 2023 | 7 |  |

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.

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Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 8 |  |

Operating environment
Nordic countries
Over 2023, the Nordic region experienced a challenging
macroeconomic environment with historically high
inflation and interest rates. The P&C insurers were also
affected by more weather-related claims than normal.
Despite this, the Nordic P&C insurance market
continued to perform relatively well, delivering better
profitability than most other European P&C markets.
The Nordic P&C market is highly consolidated, with the
four largest players accounting for some 80-90 per
cent of the markets in Norway, Finland, and Sweden
respectively. Many insurers are established in more than
one Nordic country. In Denmark, the market is less
consolidated with the top four insurers controlling
around 60 per cent of the market.
During the year, the competitive environment remained
broadly stable in the private and SME markets, while the
large corporate market remained in the hard part of the
underwriting cycle. The larger listed insurers maintained
strong financial discipline and implemented price
increases to combat elevated claims inflation.
Market-wide claims inflation was above the levels
observed in the recent past in 2023 and amounted to
4-5 per cent for If P&C. Inflation was mainly driven by
the property and motor products which were affected
by higher building materials and spare parts costs
following raw material shortages and increasing
transportation and energy costs. Weaker local
currencies also added pressure to cost inflation.
Towards the end of the year, Nordic claims inflation
showed signs of moderation, reducing the uncertainty
around the outlook for 2024.
Nordic claims frequencies returned to pre-pandemic
levels in 2023. During the year, the region suffered
various weather-related claims, of which the most
severe was the storm “Hans” at the end of the summer.
“Hans” delivered the heaviest rain in 25 years in Norway,
causing flood and landslide damage. Sweden was also
affected by this storm, as well as parts of Denmark and
Finland.
During the year, the Nordic region also experienced
some elevated claims from severe winter conditions. In
the beginning of the year, the region was affected by
harsh winter weather, especially in Sweden and Norway.
The last quarter of the year saw a longer and more
severe winter season than usual. There was heavy snow
and freezing temperatures in early November, which
resulted in weather related claims.
In 2023, the Nordics continued to be affected by the
hardening reinsurance market with a high cost of
coverage and reduced risk appetite among reinsurers.
The reinsurance prices increased, as expected, based on
global inflation, claims trends and climate change, which
also impacted the direct insurance market.
According to the UN’s climate panel IPCC, the effects of
climate change are already seen in the Nordic region
with more heatwaves and floods expected in the future.
This development is expected to be gradual where the
insurance industry with one-year contracts is well
equipped to handle the changes over time.
The Nordic region is known for being digitally advanced
and Nordic insurers committed to technological
advancements and innovation. During the year the
digitalisation trend continued with increased focus on
cyber risks. Targeted investments and continuous
monitoring for emerging threats were on top of every
insurer’s agenda for effective risk mitigation in the
complex area of cybersecurity.
United Kingdom
In the UK, P&C insurance market prices increased
significantly over the last 12 months in response to
elevated claims inflation.
Claims inflation increased significantly during 2022 and
remained persistent throughout 2023. Claims
frequencies also increased as travel returned closer to
pre-pandemic levels and as a result of adverse weather
experienced in the first quarter of the year.
Price comparison websites, Hastings’ primary
distribution channel, remain by far the largest sales
channel for UK car and home insurance customers. In
light of increasing market prices, the use of these
websites has increased during the year, as customers
shop around in order to find a more competitive price.
The FCA continues to be an active regulator in UK
General Insurance and introduced new Consumer Duty
rules with effective 31 July 2023, aiming to set higher
and clearer standards of consumer protection across
financial services. Hastings has successfully delivered
Consumer Duty in a timely manner and continues to
ensure that the principle of Consumer Duty is
embedded in line with its customer focused strategy.

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| BOARD OF DIRECTORS’ REPORT 2023 | 9 |  |

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.
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. The 2022 combined ratio under IFRS 4 included significant items
related to prior year development in the fourth quarter, some of which have been
recognised in the net financial results under IFRS 17. Hence, the figures are not fully
comparable between years.
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.
Results
If, 2023

EURm | 2023 | 2022 | Change, %
Gross written premiums | 5,468 | 5,432 | 1
Insurance revenue, net | 4,996 | 5,024 | -1
Claims incurred, net | -3,093 | -3,267 | -5
Operating expenses and claims handling costs | -1,061 | -1,084 | -2
Insurance service result / underwriting result | 842 | 673 | 25
Net investment income | 871 | 278 | 214
Insurance finance income or expense, net | -331 | 610 | —
Net financial result | 539 | 888 | -39
Other items | -24 | -11 | 122
Profit before taxes | 1,358 | 1,550 | -12

Key figures

EURm | 2023 | 2022 | Change
Combined ratio, % | 83.1 | 86.6 | -3.5
Cost ratio, % | 21.2 | 21.6 | -0.3
Risk ratio, % | 61.9 | 65.0 | -3.1
Large claims and severe weather, % | 4.7 | 1.3 | 3.4
Risk adjustment and other technical effects, current year % | 1.2 | 0.8 | 0.4
Prior year development, % | -5.3 | 0.6 | -6.0
Adjusted risk ratio, current year, % | 61.3 | 62.3 | -1.0
Discounting effect, current year, % | -3.4 | -2.9 | -0.5
Undiscounted adjusted risk ratio, current year, % | 64.7 | 65.2 | -0.5
Loss ratio, % | 67.6 | 70.7 | -3.1
Expense ratio, % | 15.6 | 15.9 | -0.4

All the key figures in the table above are calculated on a net basis.
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.

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| BOARD OF DIRECTORS’ REPORT 2023 | 10 |  |

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 especially 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 Private retention stood above 89 per cent (90) at
the end of 2023.
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. This positive development was supported by
good growth in the SME segment during the period,
successful renewals at the beginning of the year and
high retention.
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.
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.
Combined ratio development
If reported a combined ratio of 83.1 per cent (86.6) for
2023.
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. If’s large
claims outcome is reported as a deviation against
budget, while severe weather effects are disclosed in
full.
Prior year gains in 2023 increased to 5.3 percentage
points from -0.6 percentage points in the prior year.
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.
Discounting effects in 2023 increased by 0.5
percentage points year-on-year to 3.4 per cent (2.9).
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 had 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.

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| BOARD OF DIRECTORS’ REPORT 2023 | 11 |  |

In total, the risk ratio improved by 3.1 percentage points year-on-year to 61.9 per cent
(65.0) in 2023. The undiscounted adjusted risk ratio improved by 0.5 percentage
points year-on-year in 2023.
The cost ratio for 2023 improved by 0.3 percentage points to 21.2 per cent (21.6). The
2023 cost ratio development compares favourably to If P&C’s target for 2021-2023 of
an around 20 basis point yearly cost ratio reduction. Education and development costs
are included in the cost ratio.

|  | Combined ratio, % |  | Risk 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

Net financial result
For the full year 2023, If reported a net financial result of EUR 539 million (888). 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
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).
The unwind of discount rate amounted to EUR -180 million in 2023. Changes in
discount rates had an impact of EUR -136 million in the year.
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.

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| BOARD OF DIRECTORS’ REPORT 2023 | 12 |  |

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.
Sampo plc held 44.0 million shares in Topdanmark at 31 December 2023. The holding
increased slightly from 43.7 million shares at the end of 2022 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 34.
Further information on Topdanmark A/S and its Results for 2023 is available at
www.topdanmark.com.
Results
Topdanmark, 2023

EURm | 2023 | 2022 | Change, %
Gross written premiums | 1,339 | 1,308 | 2
Insurance revenue, net | 1,288 | 1,255 | 3
Claims incurred and claims handling costs, net | -862 | -809 | 7
Operating expenses | -233 | -216 | 7
Insurance service result / underwriting result | 194 | 230 | -16
Net investment income | 107 | -142 | —
Insurance finance income or expense, net | -79 | 115 | —
Net financial result | 27 | -28 | —
Other items | -59 | -45 | 32
Profit before taxes | 162 | 158 | 3

Key figures

| 2023 | 2022 | Change
Combined ratio, % | 85.0 | 81.7 | 3.3
Loss ratio, % | 66.9 | 64.4 | 2.5
Expense ratio, % | 18.1 | 17.2 | 0.8

All the key figures in the table above are calculated on a net basis. Comparison figures do not
include Topdanmark’s life operations.

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| BOARD OF DIRECTORS’ REPORT 2023 | 13 |  |

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.
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 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). 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.
Hastings generated an underwriting result of EUR 128 million (128 million), as growth in
premiums was largely offset by higher claims costs.
Results
Hastings, 2023

EURm | 2023 | 2022 | Change, %
Gross written premiums | 1,706 | 1,314 | 30
Brokerage revenue | 357 | 322 | 11
Insurance revenue, net (incl. brokerage) | 1,251 | 998 | 25
Claims incurred and claims handling costs, net | -714 | -509 | 40
Operating expenses | -409 | -361 | 13
Underwriting result | 128 | 128 | —
Net investment income | 79 | 16 | 397
Insurance finance income or expense, net | -35 | 11 | —
Net financial result | 44 | 27 | 61
Other items | -42 | -49 | -14
Profit before taxes | 129 | 107 | 21
Key figures | 2023 | 2022 | Change
Operating ratio, % | 89.8 | 87.2 | 2.6
Loss ratio, % | 63.3 | 57.2 | 6.1
Live customer policies (millions) | 3.5 | 3.2 | 0.2

All the key figures in the table above are calculated on a net basis. Hastings’ result table was
simplified in 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.
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.
Hastings’ profit before taxes increased to EUR 129 million (107) primarily due to the
increase in the 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).

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| BOARD OF DIRECTORS’ REPORT 2023 | 14 |  |

Holding
Sampo plc is the parent company of Sampo Group and responsible for the Group’s
strategy and capital management activities. In addition to the Group’s insurance
subsidiaries, a small number of direct investments are held in the holding company.
Results
Holding, 2023

EURm | 2023 | 2022 | Change, %
Net investment income | -37 | 177 | —
Other income | 1 | 132 | -99
Other expenses | -57 | -48 | 20
Finance expenses | -66 | -96 | -31
Share of associates' profit or loss | — | -19 | —
Profit before taxes | -160 | 146 | —

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. The increase in other expenses
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 and a group contribution of EUR 29 million
from Mandatum.
The accounting effect of EUR 111 million from the reallocation 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.

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| BOARD OF DIRECTORS’ REPORT 2023 | 15 |  |

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
5,849 million and solvency capital requirement (SCR) of
EUR 3,217 million. The regulatory Solvency II ratio
amounted to 177 per cent (210) based on own funds of
EUR 5,849 million (8,083) and SCR of EUR 3,301 million
(3,857).
The decrease from 210 per cent at the year-end 2022
was primarily driven by the demerger. 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.
At the end of 2022, shareholders’ equity amounted to
10,178 million (IFRS 17) and financial debt to EUR 3,288
million, translating into a financial leverage of 24.4 per
cent.
The decrease in shareholders’ equity in 2023 was driven
by the demerger and capital returns to shareholders
during the year. Financial debt decreased due to the
demerger and maturity of EUR 318 million senior debt in
September 2023.
Adjusting for the proposed dividend of EUR 1.80 per
share, financial leverage was 27.7 per cent at the end of
2023. More information on Sampo Group’s
outstanding debt iss ues is available at
www.sampo.com/debtfinancing.
Financial debt
Sampo Group, 31 December 2023

EURm | Sampo plc | If | Topdanmark | Hastings | Eliminations | Group total
Sub/hybrid | 1,490 | 135 | 148 | 0 | -127 | 1,645
Senior bonds | 959 | 0 | 0 | 0 | 0 | 959
Total | 2,449 | 135 | 148 | 0 | -127 | 2,604

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 16 |  |

Ratings
Relevant ratings for Sampo Group companies on 31 December 2023 are presented in the table below.

Rated company | Moody’s | Standard & Poor’s
| 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

Fitch rating on Hastings was discontinued during the second quarter due to no outstanding debt issues.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 17 |  |

Other developments
Demerger of Sampo plc
Following the announcement of strategic review of Mandatum in December 2022, the
Board of Directors of Sampo plc resolved on 29 March 2023 to propose 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
Mandatum was consolidated in Sampo Group’s P&L and balance sheet until the end of
September. The following table illustrates the financial effects of the demerger on the
Group’s January-September 2023 results and on the Group’s balance sheet at the end
of September 2023. Since a dividend liability was established for Mandatum during the
third quarter, Mandatum’s contribution has been added back into Sampo’s end of
September shareholders’ equity and financial debt figures in the table. As such, these
figures do not correspond to reported numbers.

Key figures 1-9/2023 |  | Pro forma, including Mandatum* | Pro forma, excluding Mandatum**
Net profit for the equity holders of the parent | EURm | 941 | 801
Earnings per share | EUR | 1.86 | 1.58
Own funds | EURm | 8,918 | 6,589
Own funds, including dividend accrual | EURm | — | 6,026
Solvency capital requirement | EURm | 3,776 | 3,087
Solvency II ratio | % | 236 | 213
Solvency II ratio, including dividend accrual | % | — | 195
IFRS shareholders’ equity | EURm | 9,033 | 7,309
Financial debt | EURm | 2,860 | 2,610
Financial leverage | % | 24.0 | 26.3

* Pro forma figures related to solvency and financial leverage exclude all demerger effects and
related transactions.
** Pro forma figures related to solvency and financial leverage include all demerger effects and
related transactions. Dividend accrual is based on the regular dividend of EUR 1.50 per share for
2022, i.e. excluding Mandatum’s contribution.
As the Board of Directors resolved to complete the demerger of Sampo plc during the
third quarter, a dividend liability equal to the estimated fair value of Mandatum’s net
assets was recognised on the Group’s balance sheet. This had a negative effect of EUR
1,826 million on Sampo’s shareholders’ equity at 30 September 2023.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 18 |  |

After the demerger completed on 1 October, the
dividend liability was remeasured against a fair value
based on Mandatum’s weighted average share price on
the first trading day on Nasdaq Helsinki, amounting to
EUR 1,835 million. The EUR 9 million difference between
the revised fair value of the dividend liability and the net
assets at the end of September was taken through the
P&L in the fourth quarter. The effect had no impact on
cash flow or solvency.
Following completion of the demerger, EUR 102 million
of long term debt was reallocated from Sampo plc to
Mandatum, to satisfy conditions for tax neutrality.
Adjusting for this, Sampo’s pro forma shareholders’
equity for the end of the third quarter would have been
EUR 7,309 million.
The reallocation of the long-term debt had a positive
effect of EUR 102 million in the Group’s profit before
taxes and net profit in the fourth quarter. With the
valuation difference of EUR 9 million mentioned above,
the total accounting effects on profit before taxes and
net profit from the debt reallocation 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 details are 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.
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 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.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 19 |  |

Shares, share capital and shareholders
Shares and share capital
At the end of 2023, Sampo plc had 501,796,752 shares,
which were divided into 501,596,752 A shares and
200,000 B shares. The total number of votes attached
to the shares wa s 502,596,752. Each A share entitles the
holder to one vote and each B share entitles the holder
to five votes at the General Meeting of Shareholders.
In 2023, Sampo cancelled 14,782,760 of its own A
shares that were repurchased under the share buyback
programmes in 2022 and 2023. These shares were
cancelled in March and August 2023.
At the end of 2023, Sampo plc’s share capital amounted
to EUR 98 million (98) and the equity capital in total to
EUR 7,687 million (10,178).
The Annual General Meeting held on 17 May 2023
decided on the deletion of the minimum and maximum
amounts set for the company’s A and B shares in the
Articles of Association due to the authorisation granted
to the Board to resolve upon a share split.
Sampo plc’s Articles of Association contain a
redemption obligation (16§) ,according to which, a
shareholder whose holding of all shares or of all votes
relating to the shares reaches or exceeds 33 1/3 per
cent or 50 per cent, is obliged to redeem, at the
presentation of claims by other shareholders, their
shares and the documents giving entitlement to the
shares, as stipulated in the Finnish Companies Act, in
the manner prescribed in the Article. The Article
contains further provisions on calculating the
shareholder’s holding and redemption price.
Sampo A shares have been quoted on Nasdaq Helsinki
since 1988 and all of the B shares are held by Kaleva
Mutual Insurance Company. B shares can be converted
into A shares at the request of the holder.
Sampo’s Swedish Depositary Receipts (SDR) have been
quoted on Nasdaq Stockholm since 2022. Helsinki-listed
A shares can be converted into SDRs and vice versa.
Approximately 2.1 million SDRs were issued at the end
of 2023.
Shareholders by the number of shares held
Sampo plc, 31 December 2023

Number of shares | Shareholders, number | Share- holders, % | Shares, number | Shares, % | Voting rights, number | Voting rights, %
1–100 | 110,146 | 53.21 | 4,614,546 | 0.92 | 4,614,546 | 0.92
101–500 | 65,836 | 31.81 | 15,989,786 | 3.19 | 15,989,786 | 3.18
501–1,000 | 15,006 | 7.25 | 11,180,875 | 2.23 | 11,180,875 | 2.22
1,001–5,000 | 13,414 | 6.48 | 28,078,213 | 5.60 | 28,078,213 | 5.59
5,001–10,000 | 1,518 | 0.73 | 10,652,503 | 2.12 | 10,652,503 | 2.12
10,001–50,000 | 875 | 0.42 | 16,947,504 | 3.38 | 16,947,504 | 3.37
50,001–100,000 | 90 | 0.04 | 6,610,344 | 1.32 | 6,610,344 | 1.32
100,001–500,000 | 72 | 0.03 | 13,643,773 | 2.72 | 13,643,773 | 2.71
500,001– | 35 | 0.02 | 394,079,208 | 78.53 | 394,879,208 | 78.57
Total | 206,992 | 100 | 501,796,752 | 100 | 502,596,752 | 100
of which nominee registered | 11 |  | 301,533,372 | 60.09 | 301,533,372 | 60.00

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 20 |  |

Share price performance
Sampo plc, 2019–2023
Share price performance adjusted for the partial demerger in 2023.
Monthly trading volume
Sampo plc, 2019–2023

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 21 |  |

Authorisations granted to the
Board
The Annual General Meeting held on 17 May 2023
authorised the Board to repurchase a maximum of
50,000,000 Sampo A shares, representing
approximately 9.7 per cent of all outstanding shares.
The Board was also authorised to resolve upon a share
issue without payment (share split). Based on this
authorisation, the Board can resolve to issue new shares
to all shareholders without payment in proportion to
their holdings so that a maximum of 5 new A and B
shares would be issued for each current A and B shares
respectively. If the Board decided on a share split, a
maximum of 300,000,000 A shares could be
repurchased.
The authorisation to decide on a repurchase of own
shares is valid until the close of the next Annual General
Meeting, expected to be held on 25 April 2024,
nevertheless not more than 18 months after AGM’s
decision. The authorisation to decide upon a share split
is valid until the next AGM, however at the latest until
30 June 2024.
Shareholders
The number of Sampo plc’s Finnish-registered
shareholders increased during 2023 by 8,849
shareholders to 206,992 as at 31 December 2023. The
holdings of nominee-registered and foreign
shareholders stood stable at 60.3 per cent (61.7) of the
shares and 60.2 per cent of the votes (61.6). Sampo did
not hold any own shares at the end of 2023.
On 31 December 2023, the total number of Sampo A
shares owned directly, indirectly or through financial
instruments by BlackRock Inc. and its funds was above
5 per cent of Sampo’s total stock. The total number of
voting rights attached to Sampo A shares was above 5
per cent of Sampo’s total voting rights.
Sampo did not receive any flagging notifications of
change in holding pursuant to Chapter 9, Section 5 of
the Securities Markets Act during in 2023.
The latest notifications are available at
www.sampo.com/flaggings.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 22 |  |

Shareholders
Sampo plc, the largest shareholders registered in Finland, 31 December 2023

A and B shares | Number of shares | % of share capital | % of votes
Solidium Oy | 33,278,580 | 6.63 | 6.62
Varma Mutual Pension Insurance Company | 22,248,420 | 4.43 | 4.43
Ilmarinen Mutual Pension Insurance Company | 6,037,057 | 1.20 | 1.20
Oy Lival AB | 4,020,000 | 0.80 | 0.80
Elo Mutual Pension Insurance Company | 3,968,000 | 0.79 | 0.79
The State Pension Fund | 2,900,000 | 0.58 | 0.58
OP Life Assurance Company Ltd | 1,834,542 | 0.37 | 0.37
Svenska litteratursällskapet i Finland r.f. | 1,469,150 | 0.29 | 0.29
Nordea Nordic Fund | 1,343,000 | 0.27 | 0.27
OP-Finland Fund | 1,331,025 | 0.27 | 0.26
Nordea Pro Finland Fund | 1,188,034 | 0.24 | 0.24
Evli Finland Select Fund | 1,185,000 | 0.24 | 0.24
OMX Helsinki 25 Exchange Traded Fund | 1,149,960 | 0.23 | 0.23
Åbo Akademi University Foundation | 1,063,872 | 0.21 | 0.21
Nordea Life Assurance Finland Ltd. | 904,380 | 0.18 | 0.18
Samfundet folkhälsan i Svenska Finland rf | 848,402 | 0.17 | 0.17
Nordea Suomi | 841,844 | 0.17 | 0.17
Keva | 814,100 | 0.16 | 0.16
OP Finland Index Fund | 808,173 | 0.16 | 0.16
Föreningen Konstsamfundet rf | 800,000 | 0.16 | 0.16
Foreign and nominee registered total | 302,593,499 | 60.30 | 60.21
Other total | 111,169,714 | 22.15 | 22.12
Total | 501,796,752 | 100 | 100

Shareholders by sector
Sampo plc (A and B shares), 31 December 2023

Sector | Number of shares | %
Corporations | 20,004,337 | 3.99
Financial institutions and insurance corporations | 17,654,345 | 3.52
Public institutions | 70,733,556 | 14.10
Non-profit institutions | 13,830,150 | 2.76
Households | 76,980,865 | 15.34
Foreign ownership and nominee registered | 302,593,499 | 60.30
Total | 501,796,752 | 100

Holdings of the Board and Executive
Management
The following table presents the Board’s and Group Executive Committee’s holdings of
Sampo A shares.
At the end of 2023, members of Sampo plc’s Board of Directors and their close family
members owned either directly or indirectly 197,429 (195,664) Sampo A shares. Their
combined holdings constituted 0.04 per cent (0.04) of shares and related votes.
Members of the Group Executive Committee and their close family members owned
either directly or indirectly 227,321 (564,438) Sampo A shares representing 0.05 per
cent (0.1) of shares and related votes.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 23 |  |

Shares owned by the Board of Directors and the Group
Executive Committee
Sampo plc, 31 December 2023 and 31 December 2022

Board of Directors | 31 Dec 2023 | 31 Dec 2022
Antti Mäkinen 1 | 7,010 | —
Jannica Fagerholm | 8,751 | 7,597
Christian Clausen | 38,479 | 37,819
Fiona Clutterbuck | 3,678 | 2,853
Georg Ehrnrooth | 129,532 | 128,681
Johanna Lamminen 2 | — | 2,695
Steve Langan | 1,498 | 673
Risto Murto | 5,169 | 4,449
Markus Rauramo | 2,407 | 1,668
Björn Wahlroos 3 | — | 9,229
Annica Witschard 1 | 905 | —
Total | 197,429 | 195,664
Board of Directors ownership of shares, % | 0.04 | 0.04
Board of Directors share of votes, % | 0.04 | 0.04

Group Executive Committee | 31 Dec 2023 | 31 Dec 2022
Torbjörn Magnusson | 46,268 | 46,480
Knut Arne Alsaker | 43,412 | 39,646
Ingrid Janbu Holthe | 5,588 | 1,875
Patrick Lapveteläinen 4 | — | 276,423
Petri Niemisvirta 4 | — | 93,470
Ville Talasmäki 5 | 17,801 | —
Morten Thorsrud | 65,788 | 61,344
Ricard Wennerklint | 48,464 | 45,200
Total | 227,321 | 564,438
Group Executive Committee's ownership of shares, % | 0.05 | 0.1
Group Executive Committee's share of votes, % | 0.05 | 0.1

1 Member of the Board of Directors since 17 May 2023
2 Member of the Board of Directors until 1 October 2023
3 Member of the Board of Directors until 17 May 2023
4 Member of the Group Executive Committee until 1 October 2023
5 Member of the Group Executive Committee since 1 October 2023
Share buyback programmes
In 2023, Sampo repurchased its own A shares under two different buyback
programmes based on the authorisation granted by the Annual General Meeting of
2022.
On 9 June 2022, Sampo’s Board launched a EUR 1 billion buyback programme. The
programme started on 10 June 2022 and was completed on 8 February 2023. Through
this programme, Sampo repurchased 22.1 million shares, of which 3.2 million were
repurchased in 2023. The average price amounted to EUR 45.28 per share.
On 29 March 2023, the Board launched a new EUR 400 million buyback programme.
The programme started on 3 April 2023 and was completed on 1 August 2023.
Through this programme, Sampo repurchased 9.4 million shares at an average price of
EUR 42.64 per share.
In total, Sampo repurchased 12.6 million shares in 2023, corresponding to
approximately 2.4 per cent of cent of all shares based on the share count prior to the
start of these programmes. These shares were cancelled in March and August 2023.
Further details on the company’s share buyback programmes are available at
www.sampo.com/sharebuyback.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 24 |  |

Governance and related issues
Governance
During 2023, Sampo complied in full with the Finnish
Corporate Governance Code 2020 approved by the
Securities Market Association on 19 September 2019,
effective from 1 January 2020 (the “CG Code 2020”). In
compliance with the Corporate Governance Code,
Sampo publishes a separate Corporate Governance
Statement on its website in fulfilment of the
requirement referred to in the Finnish Securities Markets
Act (746/2012), Chapter 7, Section 7.
The statement will be available at
www.sampo.com/year2023.
Annual General Meeting
The Annual General Meeting held on 17 May 2023
decided to distribute a dividend of EUR 2.60 per share
for 2022. The record date for the dividend payment was
22 May 2023 and the dividend was paid to Sampo
shareholders on 31 May 2023 and to Sampo SDR
holders on 2 June 2023. The Annual General Meeting
adopted the financial accounts for 2022 and discharged
the Board of Directors and the CEO from liability for the
financial year.
The AGM increased the number of the members of the
Board of Directors to ten members. Christian Clausen,
Fiona Clutterbuck, Georg Ehrnrooth, Jannica
Fagerholm, Johanna Lamminen, Steve Langan, Risto
Murto and Markus Rauramo were re-elected to the
Board. Antti Mäkinen and Annica Witschard were
elected as new members to the Board. The members of
the Board were elected for a term continuing until the
close of the next Annual General Meeting.
At its organisational meeting, the Board elected Antti
Mäkinen as Chair and Jannica Fagerholm as Vice Chair.
Christian Clausen, Risto Murto, Antti Mäkinen (Chair)
and Markus Rauramo were elected to the Nomination
and Remuneration Committee. Fiona Clutterbuck,
Georg Ehrnrooth, Jannica Fagerholm (Chair), Johanna
Lamminen, Steve Langan and Annica Witschard were
elected to the Audit Committee.
All the Board members have been determined to be
independent of the company and its major shareholders
under the rules of the Finnish Corporate Governance
Code 2020. The curriculum vitaes of the Board
Members are available at www.sampo.com/board.
The AGM decided to pay the following fees to the
members of the Board of Directors until the close of the
2024 AGM: the Chair of the Board will be paid an annual
fee of EUR 228,000 and other members of the Board
will be paid EUR 101,000 each. In addition, t he members
of the Board and its Committees will be paid the
following annual fees: the Vice Chair of the Board EUR
30,000, the Chair of the Audit Committee EUR 28,000
and the member of the Audit Committee EUR 6,400
each. A Board member shall, in accordance with the
resolution of the Annual General Meeting, acquire
Sampo plc A shares at the price paid in public trading
for 50 per cent of his/her annual fee after the deduction
of taxes, payments and potential statutory social and
pension costs. The company will pay any possible
transfer tax related to the acquisition of the company
shares.
The AGM accepted Sampo plc’s Remuneration Report
for Governing Bodies. The resolution wa s advisory.
Deloitte Ltd was re-elected as Auditor of Sampo plc.
The Auditor will be paid a fee determined by an invoice
approved by Sampo. Jukka Vattulainen, APA, will act as
the principally responsible auditor.
The AGM updated the business area of the company on
the Company’s Articles of Association to reflect the
company’s current strategy and main business area. In
addition, the minimum and maximum amounts set for
the Company’s A and B shares were deleted. The AGM
also resolved to amend article 11 § of the Company’s
Articles of Association such that, should the Board of
Directors so decide, General Meetings may be convened
as a so-called hybrid or remote meeting.
As part of the resolution on the demerger of Sampo plc
and conditional upon the registration of the completion
of the demerger, the AGM resolved to establish a new
entity, Mandatum plc, approve its articles of association,
and elect Markus Aho, Jannica Fagerholm, Kimmo
Laaksonen, Johanna Lamminen, Patrick Lapveteläinen
and Jukka Ruuska to Mandatum plc’s Board of
Directors. It was proposed that said Board of Directors
elect from among themselves Patrick Lapveteläinen as
the Chair and Jannica Fagerholm as the Vice Chair of
the Board of Directors.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 25 |  |

The AGM also resolved to, until the close of the first
Annual General Meeting of Mandatum following the
partial demerger pay a term fee of EUR 27,000 to each
member of the Board of Directors, EUR 42,000 to the
Chair of the Board of Directors and EUR 36,000 to the
Vice Chair of the Board of Directors; pay meeting fees
for each meeting of the Board of Directors of EUR 600
for each member of the Board of Directors and EUR
1,500 for the Chair of the Board of Directors and the
Vice Chair of the Board should she chair the meeting;
pay meeting fees for each meeting of the Audit
Committee of EUR 600 for each member of the Audit
Committee and EUR 1,000 for the Chair of the Audit
Committee.
The AGM elected Deloitte Ltd as Mandatum plc’s
auditor, with Reeta Virolainen, APA, acting as the
principally responsible auditor, and resolved for the
auditor to be paid a fee determined by an invoice
approved by Mandatum plc. The AGM also resolved to
establish a Shareholders’ Nomination Board for
Mandatum plc.
Including proxy representatives, there were altogether
324,489,527 shares (63.5 per cent of shares) and
325,289,527 votes (63.5 per cent of all votes) in the
company represented at the Annual General Meeting.
The minutes of the Annual General Meeting are
available for viewing at www.sampo.com/agm and at
Sampo plc's head office at Fabianinkatu 27, Helsinki,
Finland.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 26 |  |

Risk management
Sampo’s capital management framework aims to
support value creation by enabling its strategy.
Quantitative targets are set for group solvency and
group financial leverage, but other metrics are also
steered, such as adequate liquidity buffers.
Subsidiary balance sheets are calibrated to cover needs
for business plans and to provide a stable dividend.
Potential risk concentrations and adequate
diversification of risks are generally monitored closely,
and their sources are analysed. To the extent possible
Group-level risk concentrations are proactively
prevented by strategic decisions.
Sampo Group companies operate in business areas
where specific features of value creation are the pricing
of risks and the active management of risk portfolios in
addition to sound customer services. Successful
management of underwriting risks and investment
portfolio market risks is the main source of earnings for
Sampo Group companies.
In Sampo Group the risks associated with business
activities fall into three main categories: business risks
associated with external drivers affecting the
competitive environment or resulting from lack of
internal operational flexibility, reputational risk
associated with the company’s business practices or
associations and risks inherent in business operations.
A more detailed description of Sampo Group’s risk
management activities, governance, risks, and
capitalisation is available in the Risk Management
Report 2023 at www.sampo.com/year2023.
Remuneration
The Board of Directors has established the Sampo
Group Remuneration Principles, which apply to all
Sampo Group companies. The Remuneration Principles
are part of Sampo Group's internal governance
framework and describe the remuneration structure and
the principles for setting up remuneration systems in
Sampo Group. The Remuneration Principles may apply
to the Group CEO, insofar as they do not conflict with
Sampo plc’s Remuneration Policy for Governing Bodies.
The core of the Remuneration Principles is that all
remuneration systems in Sampo Group shall safeguard
the long-term financial stability and value creation of
Sampo Group and shall comply with regulatory and
ethical standards. They shall also be aligned with the
risk management framework and thus be designed in
parallel with the risk management principles and
practices.
Remuneration mechanisms shall encourage and
stimulate employees to do their best and surpass their
targets. Remuneration packages shall be designed to
reward fairly for prudent and successful performance.
At the same time, however, in order to safeguard the
interest of other stakeholders, remuneration
mechanisms shall not generate conflicts of interest and
shall not entice or encourage employees to excessive or
unwanted risk taking.
The different forms of remuneration used in Sampo
Group are the following:
(a) Fixed Compensation
(b) Variable Compensation
(c) Pension
(d) Other Benefits
Fixed compensation is the basis of an employee’s
remuneration package. Fixed salary shall support
financial stability by representing a sufficiently high
share of the total remuneration. Variable compensation
is used to ensure the competitiveness of total
remuneration packages. Variable compensation can
either be based on the contribution to the company’s
profitability and on individual performance (short-term
incentive programs) or be linked to committing
employees to Sampo Group for a longer period and
aligning the employees' interests with those of the
shareholders by linking the payout of the schemes to
key performance criteria and, if applicable, to the
positive development of Sampo’s share price (long-
term incentive schemes). The members of the Board of
Directors do not participate in any short-term incentive
programs or long-term incentive schemes.
The payment of variable compensation shall be based
on the assessment of the incurred risk exposure and the
fulfilment of solvency capital requirements. The
payment of a certain portion of the variable
compensation payable to the Senior Executive
Management and to certain key persons shall be
deferred for a defined period of time, as required in the
regulatory framework applicable to each Sampo Group
company. After the deferral period, a retrospective risk
adjustment review shall be carried out and the Board of
Directors of each Sampo Group company shall decide
whether the deferred variable compensation shall be
paid/released in full, partly or cancelled in whole. In
2023, a total of EUR 6.5 million (7.0) of short-term and
long-term incentives has been deferred.
The Board of Directors decides on the launch of long-
term incentive schemes based on financial instruments
of Sampo plc. No new long-term incentive schemes
based on financial instruments of Sampo plc were
launched in 2023. The last instalment of the long-term

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Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 27 |  |

incentive scheme 2017 and the first instalment of the
long-term incentive scheme 2020 vested in 2023.
The vesting of the schemes is determined on the basis
of Sampo's share price development and dividends paid
over each instalment’s performance period, starting
from the issue of the schemes, and performance criteria
related to the insurance margin and/or return on capital
at risk (RoCaR) applicable for each instalment. Both
incentive schemes contain a cap for maximum payout.
The terms and conditions of the incentive schemes are
available at www.sampo.com/incentiveterms.
A deferral rule applies to incentive rewards paid to the
Senior Executive Management and to certain key
persons. Persons subject to the deferral rule shall at
payout from the schemes acquire Sampo A shares with
a certain part of the instalment after deducting income
tax and other comparable charges. The shares are
subject to disposal restrictions for three years, after
which the Board of Directors shall decide on the
possible release.
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 2022 Remuneration Report for Governing Bodies
was presented to the Annual General Meeting in 2023.
The AGM resolved to adopt the Remuneration Report
and the resolution was made without being voted on,
which is considered unanimous acceptance based on
Finnish law.
Sampo plc publishes the 2023 Remuneration Report
for Governing Bodies in connection with the Board of
Directors’ Report at www.sampo.com/year2023. The
Remuneration Report for Governing Bodies provides
information on the remuneration of the Board of
Directors and the Group CEO, and has been prepared in
accordance with the Corporate Governance Code 2020.
The Corporate Governance Code 2020 can be viewed
in full on the website of the Securities Market
Association at www.cgfinland.fi/en.
Sampo plc presents the updated Remuneration Policy
for Governing Bodies to the 2024 Annual General
Meeting. The Remuneration Policy defines how the
remuneration of the Group CEO and the members of
the company’s Board of Directors has been arranged.
The Remuneration Policy has been developed in
accordance with the requirements set forth by the
amended EU Shareholders’ Rights Directive, as
implemented into Finnish legislation. The previous
Remuneration Policy was adopted by the AGM in 2020.
The updated Remuneration Policy is available at
www.sampo.com/agm.
Changes in Group structure
On 29 March 2023, the Board of Directors of Sampo plc
proposed to the Annual General Meeting a partial
demerger of Sampo plc to separate its fully-owned
subsidiary Mandatum from Sampo Group. The AGM
held on 17 May 2023 resolved to approve the demerger
plan and the demerger was successfully completed on 1
October 2023. Further information is available in the
section Effects of the partial demerger and Note 32.
On 16 March 2023, Topdanmark A/S disclosed that
Topdanmark Forsikring A/S has signed an agreement to
acquire Oona Health A/S and all subsidiaries. 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. Further information is available in
Note 34.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 28 |  |

S ampo Group structure
31 December 2023

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Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 29 |  |

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. As of the same
day, Ville Talasmäki was appointed as Group Chief
Investment Officer and Group Executive Committee
Member of Sampo.
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.
The Annual General Meeting of 17 May 2023 decided to
increase the number of members of the Board of
Directors to ten members. The number of the Board
members decreased to nine in the middle of the term as
Johanna Lamminen left the Board of Directors upon the
completion of the partial demerger of Sampo plc in
October 2023, 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.
At the AGM, Antti Mäkinen was elected as Chair of the
Board. Björn Wahlroos, the former Chair of the Board of
Directors, was not available for re-election.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 30 |  |

Sampo Group organisation
31 December 2023

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| BOARD OF DIRECTORS’ REPORT 2023 | 31 |  |

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).
Number of personnel
Sampo Group 2023

Sampo Group personnel (P&C operations) | Average personnel (FTE) 2023 | % | Average personnel (FTE) 2022 | %
By company |  |  |  |
If | 7,858 | 59 | 7,496 | 58
Hastings | 3,200 | 24 | 3,021 | 23
Topdanmark | 2,160 | 16 | 2,381 | 18
Sampo plc* | 54 | 0.4 | 50 | 0.4
Total | 13,272 | 100 | 12,947 | 100
By country |  |  |  |
United Kingdom | 3,176 | 24 | 3,000 | 23
Denmark | 2,756 | 21 | 2,969 | 23
Finland | 1,934 | 15 | 1,838 | 14
Sweden | 2,446 | 18 | 2,379 | 18
Norway | 1,613 | 12 | 1,580 | 12
Other countries | 1,346 | 10 | 1,181 | 9
Total | 13,272 | 100 | 12,947 | 100

*At the end of 2023, the total personnel (FTE) at Sampo plc amounted to 58 (51), of which 49 (46)
worked at the headquarters in Finland and 9 (5) at the branch office in Sweden.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 32 |  |

Sustainability
Sampo will issue a report on non-financial information in
accordance with Chapter 3a, Section 5 of the
Accounting Act. The report, Sampo Group
Sustainability Report 2023, will be separate from
the Board of Directors’ Report and published
around the turn of March and April 2024 at
www.sampo.com/year2023. Sampo will integrate the
Group’s sustainability reporting into the Board of
Directors’ report according to the requirements of the
Corporate Sustainability Reporting Directive (CSRD) in
2025 covering the reporting year 2024.
Highlights from year 2023
Sampo has a sustainability programme, which drives the
sustainability work on a group level. The programme
consists of strategic sustainability themes and under
each of the themes the most material sustainability
topics have been identified. Sampo’s sustainability
themes are Sustainable business management and
practices, Sustainable corporate culture, Sustainable
investment management and operations, Sustainable
products and services, and Sustainable communities.
During 2023, Sampo continued to work on sustainability
in line with the themes.
Business management and
practices
In 2023, Sampo started to prepare for the
implementation of the CSRD and the related European
Sustainability Reporting Standards (ESRS). Sampo
conducted, for example, a double materiality
assessment, a human rights impact assessment, and a
gap analysis against the ESRS. The implementation of
the legislation will continue in 2024, with the focus on
meeting the identified gaps, development of internal
processes, data collection, and final reporting.
During 2023, Sampo committed to the Science Based
Targets initiative (SBTi) and started to develop science-
based climate targets for its own operations and
investments. The targets will be submitted to the SBTi
for validation no later than October 2025. In addition,
the individual Group companies continued to work on
their company-specific targets according to schedule.
If’s targets were validated during the year, and Hastings
and Topdanmark will submit their targets for validation
in 2024.
Corporate culture
In 2023, Sampo advanced sustainable corporate culture,
for example, by updating related policies, conducting
employee surveys, launching new employee initiatives,
and developing training. The results of the continued
efforts are visible, as If, Topdanmark, and Hastings were
all able to exceed their employee engagement targets .
Sampo considers it important that there is an inclusive
corporate culture. Therefore, in 2023, a specific focus
area was diversity, equity, and inclusion (DEI). Sampo
introduced new targets, initiatives, partnerships, and
policy updates related to DEI. In addition, development
could be seen related to inclusive recruitment practices,
awareness raising, and overall DEI work, among others.
Investment management and
operations
Sampo maintained its focus on responsible investment
practices during 2023. Investment policies were
strengthened by adding further instructions on how to
take environmental, social, and governance (ESG)
issues into account in investment processes. Climate-
related considerations were highlighted, as Sampo is
committed to setting science-based climate targets for
its investments according to the SBTi’s methodology. In
2024, Sampo wants to develop group-level reporting
on responsible investment.
Products and services
In 2023, Sampo continued to develop the sustainability
of its supply chains. For example, If introduced a new
science-based climate target for its supply chain stating
that 30 per cent of the company’s suppliers by spend
covering purchased goods and services should have
science-based targets by 2028. Also, Topdanmark
continued to work on setting science-based climate
targets for its supply chain, while at the same time
focusing on the company’s existing supply chain-related
goals set for 2025. Hastings completed an ESG due
diligence on all critical suppliers and is committed to
developing a Supplier Code of Conduct during 2024.
Sampo also worked on the EU Taxonomy. During 2023,
Sampo analysed to what extent its underwriting and
investment activities are Taxonomy-eligible and
Taxonomy-aligned according to the latest guidance
from the EU.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 33 |  |

EU Taxonomy
The EU Taxonomy is a classification system that
translates the EU’s climate and environmental
objectives into criteria for specific economic activities
for investment purposes. The Taxonomy is part of the
EU’s efforts to achieve ambitious development goals in
line with Agenda 2030 and the Paris Climate
Agreement. The aim is to provide a common language
to help investors and companies navigate the transition
to a low-carbon, resilient, and resource-efficient
economy.
The basic principle of the EU Taxonomy is that for an
economic activity to be recognised as environmentally
sustainable (Taxonomy-aligned), it must make a
substantial contribution to at least one of the EU’s
climate and environmental objectives, which are climate
change mitigation; climate change adaptation;
sustainable use and protection of water and marine
resources; transition to a circular economy; pollution
prevention and control; and protection and restoration
of biodiversity and ecosystems. In addition, the
economic activity cannot significantly harm any of
these objectives and must meet the minimum
safeguards criteria. The Taxonomy Delegated Acts
establish and maintain criteria (i.e. technical screening
criteria) for activities, which have a substantial positive
environmental impact.
The EU Taxonomy is implemented gradually. For the
financial years 2021 and 2022, insurance companies
were required to report on Taxonomy eligibility (i.e.
reporting on whether the economic activity is included
in the Taxonomy Climate Delegated Act). Reporting on
Taxonomy alignment (i.e. reporting on whether the
economic activity meets the technical criteria for i)
substantial contribution, ii) do no significant harm, and
iii) comply with minimum safeguards) is required for
reporting from the financial year 2023 onwards.
Therefore, Sampo Group reports the EU Taxonomy
alignment of its insurance activities and investment
portfolio for the first time as part of the 2023 Board of
Directors’ Report.
Insurance companies are required to report key
performance indicators (KPIs) on sustainable
underwriting activities and sustainable investments. The
first one refers to the proportion of the non-life gross
written premiums (GWP) – in relation to total non-life
GWP – corresponding to insurance activities identified
as environmentally sustainable in the EU Taxonomy and
the second one to the proportion of the insurer’s or
reinsurer’s investments that are directed at or
associated with funding economic activities that qualify
as environmentally sustainable.
Sustainable underwriting activities
Non-life insurance and reinsurance are recognised as
enabling economic activities that can make a
substantial contribution to the environmental objective
of climate change adaptation. At the time of writing this
report, the EU Taxonomy does not define other
environmental objectives for insurance activities.
The non-life insurance activities listed in the Taxonomy
Delegated Acts are (a) medical expense insurance, (b)
income protection insurance, (c) workers’
compensation insurance, (d) motor vehicle liability
insurance, (e) other motor insurance, (f) marine,
aviation, and transport insurance, (g) fire and other
damage to property insurance, and (h) assistance.
Premiums related to life insurance and general liability
insurance are not listed in the Taxonomy and are,
therefore, not eligible.
Methodology
To be eligible, a non-life insurance activity must provide
coverage against climate-related perils (e.g. flooding,
landslides, and heat stress). In 2021 and 2022 Sampo
Group calculated and reported the Taxonomy eligibility
of its insurance activities by following the industry best
practice at the time. If an insurance policy did not
explicitly exempt climate-related events from coverage,
Sampo Group concluded that the insurance product
encompassed coverage against climate-related perils.
Sampo Group interpreted that if there was some cover
against climate-related perils for an insurance activity,
total premiums were to be assessed as eligible even
though there might have been climate-related
exceptions in the terms and conditions. This
methodology resulted in eligibility scores of 93.3 per
cent and 92.3 per cent for the years 2021 and 2022,
respectively, as Sampo Group’s insurance policies do
not, in general, exempt climate-related events from
coverage.
In 2023, Sampo Group has revised its methodology to
calculate Taxonomy eligibility to be in line with the
European Commission Notice (draft) on the
interpretation of certain legal provisions of the
Disclosures Delegated Act under Article 8 of the EU
Taxonomy Regulation, published on 21 December 2023.
Sampo Group has aimed at following the guidance
provided by the Notice as closely as possible, and for
the year 2023 solely the share of insurance premiums
that only pertain to the coverage of climate-related
perils is reported as eligible. Due to the late publication
of the guidance, Sampo Group was not able to gather
data of its whole insurance portfolio based on the new
methodology. Eligibility could be calculated for the
property insurance products, which were in focus for
the Taxonomy alignment assessment, as the data on the
share of the premium related to coverage of climate
related perils was available.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 34 |  |

As required by the December 2023 guidance, the
premiums for which Sampo Group was unable to obtain
the necessary data related to climate-related perils are
reported as non-eligible. The new methodology leads to
a significantly lower eligibility figure compared to the
previous years.
For an eligible insurance activity to be classified as
Taxonomy-aligned, it must fulfil the technical screening
criteria of
• Substantial contribution to climate change
adaptation:
– Leadership in modelling and pricing of climate risks
– Product design
– Innovative insurance coverage solutions
– Data sharing
– High level of service in post‐disaster situation
• Do No Significant Harm (‘DNSH’) climate change
mitigation criteria: The activity does not include
insurance of the extraction, storage, transport, or
manufacture of fossil fuels or insurance of vehicles,
property, or other assets dedicated to such purposes.
To assess the Taxonomy alignment of their activities,
the Sampo Group companies first screened the
fulfilment of the criteria of substantial contribution on a
line of business level. For the product lines, where
evidence of fulfilling the criteria was discovered, a more
thorough, product level analysis was conducted. Where
possible, the companies further divided the premiums
to the most granular level (e.g. based on a policy,
country, or element) where the technical screening
criteria were fulfilled, and only deemed the share related
to coverage of climate related perils of these specific
premiums as Taxonomy-aligned.
For assessing the DNSH-criteria, the Group companies
used NACE codes to extract contracts that could be
related to extraction, storage, transport, or manufacture
of fossil fuels.
For an economic activity to be considered as
Taxonomy-aligned, a company carrying the activity
must also meet the minimum safeguards, which are due
diligence and remedy procedures implemented to
ensure alignment with the OECD Guidelines for
multinational Enterprises and the UN Guiding Principles
on Business and Human Rights. Sampo Group has
implemented the required policies (e.g. Sampo Group
Code of Conduct) and taken actions to be compliant
with the safeguards. Sampo Group has, for example,
conducted a human rights impact assessment, and
continues to ensure that the adequate human rights due
diligence processes are maintained and constantly
developed. As part of the Taxonomy alignment
assessment, the Group companies have also assessed
their compliance with the minimum safeguards
separately.
Underwriting KPIs
The analysis, which is based on the above-mentioned
interpretations, shows that 2.2 per cent of Sampo
Group’s total non-life GWP were Taxonomy-eligible and
1.0 per cent of total GWP were Taxonomy-aligned in
2023. All the reported eligible and aligned premiums
were in If’s insurance portfolio, as a proportion of If’s
premiums related to fire and other damage to property
insurance fulfilled all the technical screening criteria, and
for those premiums If was able to separate the share
that only pertains to the coverage of climate-related
perils, as required by the European Commission
guidance. If also complies with the minimum
safeguards.
If has screened its procedures based on the UN and
OECD guidelines, and has, for instance, mechanisms in
place to assess whether its corporate clients are
complying with the UN Global Compact principles, uses
norm-based research for investments to identify
sustainability risks, and expects its suppliers to sign If’s
Supplier Code of Conduct. More details on If’s Human
rights due diligence process and its steps can be found
on If’s Sustainability Report 2023.
Sampo Group continues to integrate the EU Taxonomy
into its business strategy and product development
processes while monitoring the market expectations
and customer needs in this area. In the coming years,
Sampo Group aims to increase the share of Taxonomy-
aligned underwriting activities in its insurance portfolio.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 35 |  |

Taxonomy-eligible and Taxonomy-aligned non-life insurance and re-insurance activities
Sampo Group, 2023

| Substantial contribution to climate change adaptation | DNSH (Do No Significant Harm) |
Economic activities | Absolute premiums, 2023 | Proportion of premiums, 2023 | Proportion of premiums, 2022 | Climate change mitigation | Water and marine resources | Circular economy | Pollution | Biodiversity and ecosystems | Minimum safeguards
| (EURm) | % | % | Y/N | Y/N | Y/N | Y/N | Y/N | Y/N
A.1. Non-life insurance and reinsurance underwriting Taxonomy-aligned activities (environmentally sustainable) | 81 | 1.0 | N/A | Y | Y | Y | Y | Y | Y
A.1.1 Of which reinsured | — | — | N/A | — | — | — | — | — | —
A.1.2 Of which stemming from reinsurance activity | — | — | N/A | — | — | — | — | — | —
A.1.2.1 Of which reinsured (retrocession) | — | — | N/A | — | — | — | — | — | —
A.2 Non-life insurance and reinsurance underwriting Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) | 105 | 1.2 | N/A |  |  |  |  |  |
B. Non-life insurance and reinsurance underwriting Taxonomy-non-eligible activities | 8,266 | 97.8 | N/A |  |  |  |  |  |
Total (A.1 + A.2 + B) | 8,453 | 100.0 | 100.0 |  |  |  |  |  |

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 36 |  |

Sustainable investment
activities
The EU Taxonomy requires insurance companies to
report the proportion of underlying investments that
are Taxonomy-eligible and -aligned. To facilitate this
type of reporting at portfolio level, all holdings need to
be screened and analysed in relation to the economic
activities of the Taxonomy.
Methodology
Sampo Group analysed all underlying investments
according to the Taxonomy reporting requirements,
except for sovereign exposures that are to be excluded
from the Taxonomy analysis. In Sampo Group’s analysis,
exposures to municipalities were not categorised as
sovereign exposure. When analysing Taxonomy
eligibility and alignment, derivatives and investments to
undertakings not falling under the scope for publishing
non-financial information under Directive 2013/34/EU
(i.e. non-NFRD companies), were excluded from the
numerator, in line with the reporting requirements set in
the Taxonomy Disclosures Delegated Act. Reporting
requirements also obligate insurance undertakings to
distinguish the proportion of the investments held in
respect of life insurance contracts where the investment
risk is borne by the policy holders and the proportion of
remaining investments. Sampo Group has no
investments held in respect of life insurance contracts
where the investment risk is borne by the policy
holders.
The EU Taxonomy analysis of Sampo Group’s
investments was performed with the use of data from
an external data provider, ISS ESG (ISS). Sampo Group
changed the data provider for its 2023 reporting. The
change was due to the demerger of Mandatum and
further alignment of service providers across the Group.
Moreover, as Mandatum is no longer part of the Sampo
Group reporting, the EU Taxonomy reporting for 2023
is not comparable to the previous years.
ISS identified companies engaged in economic activities
covered by the Taxonomy and produced all Taxonomy
indicators directly based on the respective investee
companies’ own reporting of Taxonomy eligibility and
alignment. The indicators were provided based on both
underlying companies’ revenue and capital
expenditures. As security specific (e.g., mortgage
bonds) eligibility and alignment data is still scarce, most
of the securities’ eligibility and alignment data was
matched to the issuer’s reported data. Companies’
reported eligibility and alignment data was not modified
in any way by the data provider or by Sampo Group
and, therefore, it includes some discrepancies (e.g.,
breakdown of alignment to environmental objectives
does not correspond to total alignment).
The relevant investment assets were further analysed
according to the Taxonomy reporting requirements by
using both data provided by ISS and data gathered
based on each individual security's issuer. The
investments in undertakings categorised as non-NFRD
companies were identified by using data provided by
ISS. As ISS does not cover all NFRD companies, there is
a possibility that in the assets not covered by the
analysis, there are NFRD companies that have not been
identified. Investments in undertakings from the EU and
non-EU countries have been identified using the
securities' issuers' country code. Similarly, investments
in undertakings categorised as financial and non-
financial have been identified using the securities'
issuers' internal sector information to determine the
main sector the companies operate in (e.g., NACE
codes).
The underlying investments analysed also included
Sampo Group’s real assets (property plant and
equipment as well as investment property), cash and
cash equivalents, investments in associated companies
and intangible assets and they are included in the
denominator of the EU Taxonomy calculations.
For the direct real estate investments, no activities with
EU taxonomy alignment were found. However, direct
real estate investments have been included in the EU
Taxonomy eligibility figures for Sampo Group. All
investments in associated companies were in non-NFRD
companies, and thus, included no EU Taxonomy
eligibility or alignment figures. Cash and cash
equivalents were analysed based on the counterparties
but due to the nature of the instruments (e.g. cash and
money market instruments), there was no EU
Taxonomy eligibility or alignment reported. The
intangible assets of Sampo Group were also not found
to have activities related to the EU Taxonomy.
Investment KPIs
According to the analysis, the turnover and capital
expenditures-based Taxonomy eligibility of Sampo
Group’s covered assets was 4.1 per cent and 5.1 per
cent, respectively and the turnover-based and capital
expenditures-based Taxonomy alignment of Sampo
Group’s covered assets was 0.7 per cent and 0.9 per
cent, respectively, on 31 December 2023. As expected,
the reported numbers are low, as most of the
underlying companies are not subject to mandatory
Taxonomy reporting and reported eligibility and
alignment are low in general.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 37 |  |

Taxonomy-eligible and Taxonomy-aligned investment activities
Sampo Group, 31 December 2023
EURm

The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxonomy-aligned economic activities relative to the value of total assets covered by the KPI, with following weights for investments in undertakings per below: | The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxonomy-aligned economic activities, with following weights for investments in undertakings per below:
Turnover-based: | 0.7% | Turnover-based: | 129
Capital expenditures-based: | 0.9% | Capital expenditures-based: | 184
The percentage of assets covered by the KPI relative to total investments of insurance or reinsurance undertakings (total AuM). Excluding investments in sovereign entities. | The monetary value of assets covered by the KPI. Excluding investments in sovereign entities.
Coverage ratio: | 96.0% | Coverage: | 19,847

Additional, complementary disclosures: breakdown of denominator of the KPI
The percentage of derivatives relative to total assets covered by the KPI. | The value in monetary amounts of derivatives.
0.1% | 21
The proportion of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/ EU over total assets covered by the KPI: | Value of exposures to financial and non- financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings: | 19.9% | For non-financial undertakings: | 3,947
For financial undertakings: | 37.1% | For financial undertakings: | 7,362
The proportion of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: | Value of exposures to financial and non- financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings: | 9.5% | For non-financial undertakings: | 1,877
For financial undertakings: | 8.8% | For financial undertakings: | 1,750

Additional, complementary disclosures: breakdown of denominator of the KPI
The proportion of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/ EU over total assets covered by the KPI: | Value of exposures to financial and non- financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings: | 9.7% | For non-financial undertakings: | 1,927
For financial undertakings: | 14.9% | For financial undertakings: | 2,955
The proportion of exposures to other counterparties and assets over total assets covered by the KPI: | Value of exposures to other counterparties and assets:
18.3% | 3,636
The proportion of the insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned economic activities 1: | Value of insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy- aligned economic activities 1:
100.0% | 19,847
The value of all the investments that are funding economic activities that are not Taxonomy-eligible relative to the value of total assets covered by the KPI 2: | Value of all the investments that are funding economic activities that are not Taxonomy- eligible 2:
95.9% | 19,025
The value of all the investments that are funding Taxonomy-eligible economic activities, but not Taxonomy-aligned relative to the value of total assets covered by the KPI 3: | Value of all the investments that are funding Taxonomy-eligible economic activities, but not Taxonomy-aligned 3:
3.5% | 693

1 The figure on the table equals the total amount of Sampo Group’s investments covered by the KPI
other than investments held in respect of life insurance contracts where the investment risk is
borne by the policy holders. The turnover-based and capital expenditures-based alignment for
these investments are 0.7% and 0.9%, respectively.
2 Turnover-based figure is reported on the table. Capital expenditures-based figure is 94.9%.
3 Turnover-based figure is reported on the table. Capital expenditures-based figure is 4.2%.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 38 |  |

Additional, complementary disclosures: breakdown of numerator of the KPI
The proportion of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: | Value of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU:
For non-financial undertakings: | For non-financial undertakings:
Turnover-based: | 0.6% | Turnover-based: | 124
Capital expenditures-based: % | 0.8% | Capital expenditures-based: | 166
For financial undertakings: | For financial undertakings:
Turnover-based: | 0.0% | Turnover-based: | 6
Capital expenditures-based: | 0.1% | Capital expenditures-based: | 18
The proportion of the insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned: | Value of insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy- aligned:
Turnover-based: | 0.7% | Turnover-based: | 129
Capital expenditures-based: | 0.9% | Capital expenditures-based: | 184
The proportion of Taxonomy-aligned exposures to other counterparties and assets in over total assets covered by the KPI: | Value of Taxonomy-aligned exposures to other counterparties and assets over total assets covered by the KPI:
Turnover-based: | —% | Turnover-based: | —
Capital expenditures-based: | —% | Capital expenditures-based: | —

Breakdown of the numerator of the KPI per environmental objective
Taxonomy-aligned activities – provided ‘do-not-significant-harm’(DNSH) and social safeguards positive assessment:
(1) Climate change mitigation | Turnover: | 0.5% | Transitional activities: | Turnover: 0,1% ; CapEx: 0,1%
CapEx: | 0.8% | Enabling activities: | Turnover: 0,2% ; CapEx: 0,4%
(2) Climate change adaptation | Turnover: | 0.0% | Enabling activities: | Turnover: 0,0% ; CapEx: 0,0%
CapEx: | 0.0%
(3) The sustainable use and protection of water and marine resources | Turnover: | —% | Enabling activities: | Turnover: -% ; CapEx: -%
CapEx: | —%
(4) The transition to a circular economy | Turnover: | —% | Enabling activities: | Turnover: -% ; CapEx: -%
CapEx: | —%
(5) Pollution prevention and control | Turnover: | —% | Enabling activities: | Turnover: -% ; CapEx: -%
CapEx: | —%
(6) The protection and restoration of biodiversity and ecosystems | Turnover: | —% | Enabling activities: | Turnover: -% ; CapEx: -%
CapEx: | —%

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 39 |  |

Supplementary voluntary
information
To supplement the mandatory disclosures, Sampo
Group provides voluntary disclosures with additional
details.
Calculation of Taxonomy eligibility according to the
previous methodology, not taking into consideration
the European Commission Notice (draft) published on
21 December 2023, shows that 94.2 per cent of Sampo
Group’s non-life insurance GWP would have been
Taxonomy eligible in 2023 (92.3 per cent in 2022).
Calculation of taxonomy alignment, not taking into
consideration the European Commission Notice (draft)
published on 21 December 2023, shows that 6.7 per
cent of Sampo Group’s non-life insurance GWP would
have been Taxonomy-aligned in 2023.
Going forward, Sampo Group closely follows the
development of the Taxonomy regulation as the Group
is committed to developing its assessment and
reporting processes accordingly. Following the
publication of the Commission Notice (draft) on 21
December 2023, Sampo Group has acknowledged the
reporting requirements laid down by the Delegated
Regulation (EU) 2022/1214, related to fossil gas and
nuclear energy sectors. Due to late publication date of
the Notice, Sampo Group was not able to gather
reliable data for declaring the information as part of this
report. In addition, the varying reporting practices and
data quality of non-financial companies impacted
Sampo Group’s capabilities of producing high quality
reporting for the financial year 2023. During 2024,
Sampo Group will focus on enhancing its data collection
in accordance with the European Commission guidance.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 40 |  |

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

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 41 |  |

Key figures

Financial highlights |  | 2023 | 2022 (restated) | 2022 (published) | 2021 | 2020 | 2019
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 | 1,314 | 1,282 | 967 | —
Net financial result | EURm | 560 | 1,056 | — | — | — | —
Profit before taxes (P&C operations) | EURm | 1,481 | 1,924 | 1,863 | 3,171 | 380 | 1,541
Net profit for the equity holders | EURm | 1,323 | 2,107 | 1,427 | 2,567 | 37 | 1,130
Combined ratio | % | 84.6 | 85.8 | 82.1 | 81.4 | 83.4 | —
Solvency ratio 1 3 | % | 182 | 210 | 210 | 185 | 176 | 174
Financial leverage | % | 25.3 | 24.4 | 25.6 | 23.8 | 28.6 | —
Return on equity | % | 15.6 | 4.2 | -1.3 | 26.8 | 3.1 | 12.0
Average number of staff incl. Mandatum |  | 13,935 | 13,550 | 13,550 | 13,274 | 13,227 | 9,813
If |  | 2023 | 2022 (restated) | 2022 (published) | 2021 | 2020 | 2019
Gross written premiums | EURm | 5,468 | 5,432 | — | — | — | —
Insurance revenue, net | EURm | 4,996 | 5,024 | — | — | — | —
Insurance service result/underwriting result | EURm | 842 | 673 | 985 | 891 | 801 | 682
Net financial result | EURm | 539 | 888 | — | — | — | —
Premiums written before reinsurers' share (IFRS 4) | EURm | — | — | 5,432 | 5,134 | 4,823 | 4,675
Premiums earned (IFRS 4) | EURm | — | — | 5,002 | 4,772 | 4,484 | 4,388
Profit before taxes | EURm | 1,358 | 1,550 | 1,217 | 1,077 | 901 | 884
Combined ratio | % | 83.1 | 86.6 | 80.3 | 81.3 | 82.1 | 84.5
Cost ratio | % | 21.2 | 21.6 | 21.1 | 21.4 | 21.5 | 21.8
Risk ratio | % | 61.9 | 65.0 | 59.2 | 59.9 | 60.7 | 62.7
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 | 64.9 | 65.5 | 66.4 | 68.4
Expense ratio | % | 15.6 | 15.9 | 15.4 | 15.8 | 15.8 | 16.1
Return on equity | % | 31.3 | 13.2 | 6.1 | 37.0 | 33.3 | 34.5
Average number of staff |  | 7,858 | 7,496 | 7,496 | 7,223 | 7,182 | 6,603

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 42 |  |

Topdanmark |  | 2023 | 2022 (restated) | 2022 (published) | 2021 | 2020 | 2019
Gross written premiums | EURm | 1,339 | 1,308 | — | — | — | —
Insurance revenue, net | EURm | 1,288 | 1,255 | — | — | — | —
Insurance service result/underwriting result | EURm | 194 | 230 | 224 | 227 | 182 | 210
Net financial result | EURm | 27 | -28 | — | — | — | —
Premiums written before reinsurers' share, P&C insurance (IFRS 4) | EURm | — | — | 1,391 | 1,383 | 1,315 | 1,272
Premiums earned, P&C insurance (IFRS 4) | EURm | — | — | 1,326 | 1,285 | 1,227 | 1,178
Profit before taxes | EURm | 162 | 158 | 220 | 346 | 167 | 238
Combined ratio | % | 85.0 | 81.7 | 83.1 | 82.3 | 85.2 | 82.1
Loss ratio | % | 66.9 | 64.4 | 66.8 | 66.7 | 69.0 | 66.2
Expense ratio | % | 18.1 | 17.2 | 16.3 | 15.6 | 16.2 | 16.0
Average number of staff |  | 2,160 | 2,381 | 2,381 | 2,395 | 2,428 | 2,322
Hastings |  | 2023 | 2022 (restated) | 2022 (published) | 2021 | 16.11.-31.12.2020 | 2019
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 | 104 | 164 | — | —
Net financial result | EURm | 44 | 27 | — | — | — | —
Premiums written before reinsurers' share (IFRS 4) | EURm | — | — | 1,313 | 1,127 | 103 | —
Net premiums written (IFRS 4) | EURm | — | — | 727 | 495 | 137 | —
Premiums earned (IFRS 4) | EURm | — | — | 594 | 499 | 63 | —
Profit before taxes | EURm | 129 | 107 | 73 | 127 | -16 | —
Operating ratio | % | 89.8 | 87.2 | 89.7 | 80.3 | — | —
Loss ratio | % | 63.3 | 57.2 | 83.7 | 62.2 | — | —
Return on equity | % | 13.2 | -8.5 | — | — | — | —
Average number of staff |  | 3,200 | 3,021 | 3,021 | 3,005 | 2,974 | —
Holding |  | 2023 | 2022 (restated) | 2022 (published) | 2021 | 2020 | 2019
Profit before taxes | EURm | -160 | 146 | 146 | 1,331 | -826 | 139
Average number of staff |  | 54 | 50 | 50 | 63 | 67 | 63

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 43 |  |

Per share key figures |  | 2023 | 2022 (restated) | 2022 (published) | 2021 | 2020 | 2019
Earnings per share | EUR | 2.62 | 3.97 | 2.69 | 4.63 | 0.07 | 2.04
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 | 17.44 | 23.39 | 20.56 | 21.44
Net asset value per share | EUR | 15.30 | 20.01 | 18.74 | 25.48 | 19.82 | 20.71
Market capitalisation 4 | EURm | 19,876 | 25,112 | 25,112 | 24,093 | 19,199 | 21,609
Dividend per share | EUR | 1.80 | 2.60 | 2.60 | 4.10 | 1.70 | 1.50
Dividend payout ratio | % | 68.8 | 65.4 | 96.7 | 88.6 | 78.7 | 73.5
Effective dividend yield | % | 4.5 | 5.3 | 5.3 | 9.3 | 4.9 | 3.9
Price/earnings ratio |  | 15.1 | 12.3 | 18.1 | 9.5 | 16.0 | 19.1
Number of shares at 31 Dec. | 1,000 | 501,797 | 514,369 | 514,369 | 546,812 | 555,352 | 555,352
Average number of shares | 1,000 | 505,939 | 530,296 | 530,296 | 554,317 | 555,352 | 555,352
Weighted average number of shares | 1,000 | 505,939 | 530,296 | 530,296 | 554,317 | 555,352 | 555,352
A shares |  | 2023 | 2022 | 2022 | 2021 | 2020 | 2019
Number of shares at 31 Dec. | 1,000 | 501,597 | 514,169 | 514,169 | 545,612 | 554,152 | 554,152
Average number of shares | 1,000 | 505,739 | 530,096 | 530,096 | 553,117 | 554,152 | 554,152
Weighted average number of shares | 1,000 | 505,739 | 530,096 | 530,096 | 553,117 | 554,152 | 554,152
Weighted average share price | EUR | 39.36 | 44.25 | 44.25 | 40.50 | 32.35 | 39.15
Adjusted share price, high 4 | EUR | 45.21 | 49.97 | 49.97 | 47.33 | 42.46 | 43.38
Adjusted share price, low 4 | EUR | 34.53 | 35.85 | 35.85 | 33.82 | 21.34 | 34.45
Adjusted closing price | EUR | 39.61 | 48.82 | 48.82 | 44.06 | 34.57 | 38.91
Share trading volume during the financial year | 1,000 | 178,801 | 257,879 | 257,879 | 243,763 | 376,964 | 250,282
Relative share trading volume | % | 35.4 | 48.6 | 48.6 | 44.1 | 68.0 | 45.2
B shares |  | 2023 | 2022 | 2022 | 2021 | 2020 | 2019
Number of shares at 31 Dec. | 1,000 | 200 | 200 | 200 | 1,200 | 1,200 | 1,200
Average number of shares | 1,000 | 200 | 200 | 200 | 1,200 | 1,200 | 1,200

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

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 44 |  |

Calculation of key figures
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. Due to the change in the accounting
principle, Sampo presents both the restated key figures
and previously published figures for 2022.
As a result of the partial demerger during 2023 and the
sale of Topdanmark Life operations during 2022, the
table excludes any key figures related to the life
operations. In addition, the following key figures are no
longer included: Equity/assets ratio, Group solvency (in
euros), and Earnings per share, incl. items in other
comprehensive income or extraordinary items.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 45 |  |

Calculation of key fig ures
The key figures have been calculated in accordance with the decree issued by the Ministry of Finance and the specifying regulations and instructions of the Financial Supervisory
Authority. The Group solvency is calculated according to the consolidation method defined in the Solvency II Directive (2009/138/EC) and Insurance Companies Act (521/2008).
Additional information on the Group’s alternative performance measures is on the Group’s website www.sampo.com.

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
Expense ratio for P&C insurance, % |
| operating expenses | x 100%
| insurance revenue, net

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 46 |  |

Operating ratio for Hastings, % |
+ | claims incurred |
+ | acquisition costs |
+ | other operating expenses |
+ | operational depreciation and 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 |
Dividend payout ratio |
| Dividend per share | x 100%
| Earnings per share

Effective dividend yield |
| Dividend per share | x 100%
| Adjusted closing price
Price/earnings ratio |
| Adjusted closing price |
| Earnings per share |
Relative share trading volume |
| Share trading volume during the financial year | x 100%
| Average number of A shares

Exchange rates used in reporting

| 1–12/2023 | 1–9/2023 | 1–6/2023 | 1–3/2023 | 1–12/2022
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

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| BOARD OF DIRECTORS’ REPORT 2023 | 47 |  |

Group’s IFRS Financial Statements

Statement of profit and other comprehensive income .......................................... | 49
Consolidated balance sheet ................................. | 50
Statement of changes in equity .......................... | 51
Statement of cash flows ........................................ | 52

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
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| FINANCIAL STATEMENTS 2023 | 48 |  |

Statement of profit and other comprehensive income

EURm | Note | 1-12/2023 | 1-12/2022
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 | 5 | -457 | -436
Finance expenses | 7 | -93 | -98
Share of associates' profit or loss |  | 1 | -10
Profit before taxes |  | 1,481 | 1,924
Income taxes | 17,18 | -339 | -366
Profit from the continuing operations |  | 1,142 | 1,559
Discontinued operations, net of tax | 32 | 251 | 579
Divested operations, net of tax | 33 | — | 102
Net profit |  | 1,393 | 2,240

EURm | Note | 1-12/2023 | 1-12/2022
Other comprehensive income | 8 |  |
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

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 32.
Earnings per share on continuing operations for comparative period 2022 includes the divested
operations, i.e. Topdanmark Life operations.

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| FINANCIAL STATEMENTS 2023 | 49 |  |

Consolidated balance sheet

EURm | Note | 12/2023 | 12/2022 | 1 Jan 2022
Assets |  |  |  |
Property, plant and equipment | 10 | 318 | 355 | 373
Investment property | 12 | 0 | 166 | 236
Intangible assets | 11 | 3,637 | 3,494 | 3,660
Investments in associates | 13 | 12 | 16 | 475
Financial assets | 14,15,16 | 15,757 | 19,565 | 19,862
Financial assets related to unit-linked contracts |  | — | 9,930 | 10,546
Deferred income tax | 17 | 3 | 11 | 53
Insurance contract assets |  | — | 6 | 41
Reinsurance contract assets | 21 | 2,282 | 1,821 | 2,008
Other assets | 19 | 800 | 775 | 712
Cash and cash equivalents |  | 1,415 | 3,073 | 4,690
Non-current assets held for sale* | 33 | — | — | 16,029
Total assets |  | 24,225 | 39,212 | 58,684

EURm | Note | 12/2023 | 12/2022 | 1 Jan 2022
Liabilities |  |  |  |
Insurance contract liabilities | 20,21,22 ,23 | 11,716 | 16,210 | 18,266
Investment contract liabilities |  | — | 7,103 | 7,239
Subordinated debts | 24 | 1,645 | 1,983 | 2,016
Other financial liabilities | 24 | 1,269 | 1,457 | 2,315
Deferred income tax | 17 | 567 | 666 | 851
Other liabilities | 25 | 1,342 | 1,617 | 1,532
Liabilities related to non-current assets held for sale* | 33 | — | — | 13,010
Total liabilities |  | 16,538 | 29,035 | 45,228
Equity | 27 |  |  |
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

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 32.
*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 33 for further information.

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| FINANCIAL STATEMENTS 2023 | 50 |  |

Statement of changes in equity

EURm | Share capital | Legal reserve | Invested unres- tricted equity | Retained earnings 1 | Transla- tion of foreign operations 2 | Available- for-sale financial assets 3 | Cash flow hedges | Total | Non- controlling interest | Total
Equity at 31 December 2021 (IFRS 4) | 98 | 4 | 1,527 | 9,952 | -415 | 1,622 | — | 12,788 | 676 | 13,464
Impact of IFRS 17 transition 1 January 2022 | — | — | — | -7 | — | 23 | — | 16 | -25 | -9
Restated equity at 1 January 2022 (IFRS 17) | 98 | 4 | 1,527 | 9,945 | -415 | 1,646 | — | 12,805 | 651 | 13,456
Changes in equity |  |  |  |  |  |  |  |  |  |
Acquired non-controlling interests | — | — | — | -6 | — | — | — | -6 | -2 | -8
Dividends 4 | — | — | — | -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 | — | -1,639 | — | -1,639
Total comprehensive income | — | — | — | 2,133 | -268 | -1,396 | — | 468 | 133 | 601
Equity at 31 December 2022 | 98 | 4 | 1,527 | 8,482 | -741 | 248 | — | 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 | — | — | — | —
Restated 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
Dividends 4 | — | — | — | -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

1 IAS 19 Pensi on benefits had a net effect of EUR -5 million (26) on retained earnings.
2 In the comparison year, the translation differences of the other comprehensive income include associate Nordax’s share of exchange difference 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 profit or loss 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.

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| FINANCIAL STATEMENTS 2023 | 51 |  |

Statement of cash flows

EURm | 1–12/2023 | 1–12/2022
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

EURm | 1–12/2023 | 1–12/2022
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

Additional information to the cash flow statement | 1–12/2023 | 1–12/2022
Interest income received | 751 | 375
Dividend income received (excl. profit sharing from funds) | 92 | 273
Total out-going cashflows from leases | -37 | -21

* 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).

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| FINANCIAL STATEMENTS 2023 | 52 |  |

Group’s n otes to the financial statements

Summary of material accounting principles . | 54
Segment information .............................................. | 72
Result by segment for twelve months ended 31 December 2023 ..................................... | 73
Result by segment for twelve months ended 31 December 202 2 ..................................... | 74
Balance sheet by segment at 31 December 2023 ............................................................................... | 75
Balance sheet by segment at 31 December 2022 ............................................................................... | 76
Geographical information ..................................... | 77
Other notes ................................................................. | 78
1 Insurance service result ....................................... | 78
2 Net investment income ....................................... | 79
3 Net finance income or expense from insurance contracts .................................................. | 80
4 Other income .......................................................... | 80
5 Other expenses ...................................................... | 80
6 Auditor's fees .......................................................... | 81
7 Finance expenses .................................................. | 81
8 Components of other comprehensive income ........................................................................... | 82
9 Earnings per share ................................................ | 82
10 Property, plant, equipment ............................. | 83
11 Intangible assets .................................................... | 84
12 Investment property ........................................... | 86
13 Investments in associates and joint ventures ........................................................................ | 87

14 Financial assets .................................................... | 88
15 Determination and hierarchy of fair values | 91
16 Movements in level 3 financial instruments measured at fair value ........................................... | 96
17 Deferred tax assets and liabilities ................ | 99
18 Taxes ....................................................................... | 103
19 Other assets .......................................................... | 103
20 Insurance contract liabilities ......................... | 104
21 Reconciliation of insurance contract liabilities ....................................................................... | 105
22 Assets for insurance acquisition cash flows .............................................................................. | 114
23 Non-life claims development ......................... | 115
24 Financial liabilities .............................................. | 124
25 Other liabilities .................................................... | 127
26 Employee benefits ............................................. | 128
27 Equity and reserves ........................................... | 133
28 Incentive schemes ............................................. | 134
29 Investments in subsidiaries ........................... | 137
30 Material partly-owned subsidiaries ............. | 138
31 Related party disclosures ................................. | 139
32 Discontinued operations ................................. | 139
33 Business operations divested ....................... | 142
34 Business combinations .................................... | 143
35 Contingent liabilities and commitments .... | 144
36 Subsequent events after the balance sheet date ................................................................... | 146
37 Risk management disclosure ......................... | 147

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| FINANCIAL STATEMENTS 2023 | 53 |  |

Group’s notes to the financial statements
Summary of material
a ccounting principles
Sampo plc (business ID 0142213-3) is a Finnish public
company listed in Helsinki Nasdaq. It is domiciled in
Helsinki and the headquarters are at Fabianinkatu 27,
00100 Helsinki, Finland. The consolidated financial
statements of Sampo Group include Sampo plc
together with its subsidiaries and associates as of 31
December 2023. The group subsidiaries have insurance
and financing activities in Finland, Sweden, Norway,
Denmark, the Baltic countries, and the United Kingdom.
A copy of the Group’s financial statements is available
at the internet address www.sampo.com.
Basis of preparation
Sampo Group has prepared the consolidated financial
statements for 2023 in compliance with the
International Financial Reporting Standards (IFRSs). In
preparing the financial statements, Sampo has applied
all the standards and interpretations relating to its
business, adopted by the commission of the EU and
effective on 31 December 2023.
In the financial year of 2023, Sampo adopted two new
standards IFRS 17 Insurance Contracts and IFRS 9
Financial Instruments. The impact of these two
standards on the Group’s financial statements reporting
is described in the section IFRS 17 and IFRS 9 transition.
The annual improvements or other amendments to the
standards, adopted at the beginning of 2023, had no
material impact on the Group’s financial statements
reporting.
In preparing the notes to the consolidated financial
statements, attention has also been paid to the Finnish
accounting and company legislation and applicable
regulatory requirements.
The going concern accounting assumption has been
assessed by the Board and used in the preparation of
the financial statements.
The consolidated financial statements are presented in
euro (EUR), rounded to the nearest million, unless
otherwise stated.
The Board of Directors of Sampo plc accepted the
financial statements for issue on 6 March 2024. In
accordance with Limited Liability Companies Act, the
Annual General Meeting has right to approve or reject
the consolidated financial statements or change the
statements after they have been issued.
Consolidation
Subsidiaries
The consolidated financial statements combine the
financial statements of Sampo plc and all its
subsidiaries. Companies in which the Group has control
are consolidated as subsidiaries. Control exists when the
Group has more than half of the voting power or it has
power over the entity together with exposure to
variable returns from its involvement there and the
ability to use its power to affect the amount of these
returns. Subsidiaries are consolidated from the date on
which control is transferred to the Group and cease to
be consolidated from the date that control ceases.
The acquisition method of accounting is used for the
purchase of subsidiaries. The cost of an acquisition is
allocated to the identifiable assets, liabilities and
contingent liabilities, which are measured at the fair
value of the date of the acquisition. Acquisition-related
costs are recognised through profit or loss. Possible
non-controlling interest of the acquired entity is
measured either at fair value or at proportionate
interest in the acquiree’s net assets. The acquisition-
specific choice affects both the amount of recognised
goodwill and non-controlling interest. The excess of the
aggregate of consideration transferred, non-controlling
interest and possibly previously held equity interest in
the acquiree, over the Group’s share of the fair value of
the identifiable net assets acquired, is recognised as
goodwill.
The accounting policies used throughout the Group for
the purposes of consolidation are consistent with
respect to similar business activities and other events
taking place in similar conditions. All intra-group
transactions and balances are eliminated upon
consolidation.
Non-controlling interests
The technical division of profit for the financial year and
the total comprehensive income to the owners of the
parent and non-controlling interests is presented after
the statement of comprehensive income. The share of
profits is attributed to non-controlling interests even if it
should be negative.
Non-controlling interests are presented in the balance
sheet separately as part of equity.

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| FINANCIAL STATEMENTS 2023 | 54 |  |

Non-controlling interests in an acquiree are measured
either at fair value or as a proportionate share of net
assets of the acquiree. The choice is made for each
acquisition separately. At the end of the financial
reporting period, Sampo’s non-controlling interests
were determined as the proportionate share of net
assets of the acquirees.
Foreign currency translation
The consolidated financial statements are presented in
euro, which is the functional and reporting currency of
the Group and the parent company. Items included in
the financial statements of each of the Group entities
are measured using their functional currency, being the
currency of the primary economic environment in which
the entity operates. Foreign currency transactions are
translated into the appropriate functional currency
using the exchange rates prevailing at the dates of
transactions or the average rate for a month. The
balance sheet items denominated in foreign currencies
are translated into the functional currency at the rate
prevailing at the balance sheet date.
Exchange differences arising from the translation of
transactions and monetary balance sheet items
denominated in foreign currencies into functional
currency are recognised as translation gains and losses
in profit or loss. During comparative period, exchange
differences arising from non-monetary financial assets
classified as available-for-sale financial assets were
recognised directly in the fair value reserve in equity.
The income statements of Group entities whose
functional currency is other than euro are translated
into euro at the average rate for the period, and the
balance sheets at the rates prevailing at the balance
sheet date. The resulting exchange differences are
included in equity and their change in other
comprehensive income. When a subsidiary is divested
entirely or partially, the cumulative exchange
differences are included in the income statement under
sales gains or losses.
Goodwill and fair value adjustments arising from an
acquisition of a foreign entity are treated as if they were
assets and liabilities of the foreign entity. Exchange
differences resulting from the translation of these items
at the exchange rate of the balance sheet date are
included in equity and their change in other
comprehensive income.
The following exchange rates were applied in the
consolidated financial statements:

1 euro (EUR) = | Balance sheet date | Average exchange rate
Swedish krona (SEK) | 11.0960 | 11.4745
Danish krona (DKK) | 7.4529 | 7.4510
Pound sterling (GBP) | 0.8691 | 0.8697

Segment reporting
The Group’s segmentation is based on business areas
whose risks and performance bases as well as
regulatory environment differ from each other. The
control and management of business and management
reporting are organised in accordance with the business
segments. The Group’s business segments are If,
Topdanmark, Hastings, and Holding (including Nordea
in 2022). Mandatum was presented as a segment until it
was reclassified as discontinued operations during the
first quarter of 2023.
Geographical information has been given on income
from external customers and non-current assets. The
reported areas are Finland, Sweden, Norway, Denmark,
United Kingdom, and the Baltic countries.
In the inter-segment and inter-company pricing, for
both domestic and cross border transactions, market-
based prices are applied. The pricing is based on the
Code of Conduct on Transfer Pricing Documentation in
the EU and OECD guidelines.
Inter-segment transactions, assets and liabilities are
eliminated in the consolidated financial statements.
Non-current assets held for sale
and discontinued operations
Non-current assets and the assets and liabilities related
to discontinued operations are classified as held for
sale, if their carrying amount will be recovered
principally through sales transactions rather than from
continuing use. For this to be the case, the sale must be
highly probable, and the asset or disposal group must
be available for immediate sale in its present condition
subject only to terms that are usual and customary for
sales of such assets. In addition, the management must
be committed to a plan to sell, and the sale should be
expected to qualify for recognition as a completed sale
within one year from the date of classification. The
classification, presentation, and measurement
requirements of non-current assets or disposal groups
held for sale also apply to those that are held for
distribution to owners acting in their capacity as
owners.
Assets that meet the criteria to be classified as held for
sale are measured at the lower of carrying amount and
fair value less costs to sell. Immediately before the initial
classification of the asset as held for sale, the carrying
amount of the asset shall be measured in accordance
with applicable IFRSs. If the fair value less costs to sell is
the lower, an entity recognises an impairment loss at
initial reclassification. Gains for subsequent increases in
fair value are recognised through profit or loss. Once
reclassified, any depreciation or recognition of
associates’ share of profit or loss on such assets ceases.

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| FINANCIAL STATEMENTS 2023 | 55 |  |

Income and expense recognition
principles related to insurance
contracts
The introduction of IFRS 17 changed 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 recognised 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 the
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 recognised similarly to insurance
revenue and reflect the premium payments 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
direct insurance expenses, including also changes in the
risk of non-performance.
Insurance finance income or expense
The insurance finance income or expenses included in
the net financial result reflect the impacts arising from
financial components. These include 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.
Net investment income
Interest and dividends
Interest income and expenses are recognised in the
income statement using the effective interest rate
method. This method recognises income and expenses
on the instrument evenly in proportion to the amount
outstanding over the period to maturity. Dividends on
equity securities are recognised as revenue when the
right to receive payment is established.
Fees and commissions
The fees and transaction costs of financial instruments
measured at fair value through profit or loss are
recognised in profit or loss when the instrument is
initially recognised.
Revenue from contracts with
customers
Other income consists of income from insurance-related
services provided, that do not involve a transfer of
significant insurance risk, and are therefore accounted
for under IFRS 15 Revenue from contracts with
customers. Such income is primarily attributable to sales
commission and services for administration, claims
settlement, etc. in insurance contracts on behalf of
other parties.
Furthermore, If Group’s subsidiary Viking Assistance
Group AS provides roadside assistance. Income from
these services is recognised when roadside assistance
has been provided.
The subsidiary Hastings has revenue from broker
activities in accordance with IFRS 15 Revenue from
Contracts with Customers. The revenue consists
principally of fees and commissions relating to the

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| FINANCIAL STATEMENTS 2023 | 56 |  |

arrangement of third party underwritten insurance
contracts and ancillary products.
Revenue from insurance brokerage activities is
recognised at the point of sale to the customer and
revenue from other retail services is recognised when
the service has been completed. Revenue arising from
insurance broking activities is measured on an agency
basis, net of cost, at the fair value of the income
receivable after adjusting for any allowance for
expected future cancellation refunds. Hastings may also
provide contracts for the provision of other ad hoc,
point-in-time services to customers. Such income is
recognised when the performance obligation has been
satisfied at the expected value of consideration.
In the consolidated financial statements, the fees and
commissions from external broker activities are
included in Other income or Other expenses.
Financial assets and liabilities
Sampo Group is applying IFRS 9 Financial Instruments
from 1 January 2023. IFRS 9 superseded IAS 39
Financial Instruments: Recognition and Measurement.
Sampo Group applied the temporary exemption
regarding the adoption of IFRS 9 and implemented
IFRS 9 at the same time as IFRS 17 Insurance Contracts.
The IFRS 9 comparative figures 2022 were not restated.
More details on the IFRS 9 transition are included in the
section Transition to IFRS 17 Insurance Contracts and
IFRS 9 Financial Instruments.
Initial recognition and derecognition
Financial assets and liabilities are measured at the initial
recognition at fair value. If the acquired financial assets
and liabilities are not measured at fair value, transaction
costs directly attributable to acquisition or issue are
added or deducted respectively.
Purchases and sales of financial assets at fair value
through profit or loss are recognised and derecognised
on the trade date, which is the date on which the Group
commits to purchase or sell the asset. Loans and other
receivables are recognised when cash is advanced.
Financial assets and liabilities are offset, and the net
amount is presented in the balance sheet only when the
Group has a legally enforceable right to set off the
recognised amounts and it intends to settle on a net
basis, or to realise the asset and settle the liability
simultaneously.
Financial assets are derecognised when the contractual
rights to receive cash flows have expired or the Group
has substantially transferred all the risks and rewards of
ownership. Financial liabilities are derecognised when
the obligation specified in the contract is discharged,
cancelled or expired.
IFRS 9 Classification and measurement
principles (applied 1 January 2023 onwards)
Financial assets are classified as being subsequently
measured either at amortised 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 is measured at amortised
cost. 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. Business model reflects how the portfolios of
financial assets are managed to achieve business
objectives and to generate cash flows. The factors
considered in determining the portfolio’s business
model include how the financial assets’ performance is
evaluated and reported to management, how risks are
assessed and managed, past experience of how the
cash flows have been collected, and how compensation
is linked to performance.
Financial assets at fair value through profit
or loss
Financial assets classified as at fair value through profit
or loss include mainly investments in equity instruments
and funds, debt instruments, and other loans.
Equity instruments are classified and measured at fair
value through profit or loss.
Debt instruments, such as bonds and other interest-
bearing securities, are classified as measured at fair
value through profit or loss when the business model
reflects the assets being managed and evaluated on a
fair value basis. The instruments are initially recognised
and subsequently measured at fair value. Transaction
costs that are directly attributable to the issue or
acquisition of the assets are expensed in profit or loss.
Gains and losses arising from changes in fair value, or
realised on disposal, together with related interest
income and dividend, are recognised in the income
statement under net investment income.
Derivative instruments that are not designated as
hedges and do not meet the requirements for hedge
accounting are classified as financial assets at fair value
through profit or loss. Derivatives are initially
recognised at fair value. Derivative instruments are
carried as assets when the fair value is positive and as
liabilities when the fair value is negative. Derivative
instruments are recognised at fair value, and gains and
losses arising from changes in fair value, together with
realised gains and losses, are recognised in the income
statemen t under net investment income.

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| FINANCIAL STATEMENTS 2023 | 57 |  |

Financial assets measured at amortised cost
A financial asset is measured at amortised 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 (solely payments of principal and interest -
criteria, SPPI) i.e. it is consistent with basic lending
arrangement. SPPI criteria is met when the financial
instrument’s contractual cash flows are solely payments
of principal and interest on the principal amount
outstanding. Financial assets measured at amortised
cost comprise mainly debt instruments, loans, and
receivables.
Financial assets measured at amortised costs are
initially recognised at their fair value, including
transaction costs directly attributable to the acquisition
of the asset. Loans and other receivables are
subsequently measured at amortised cost using the
effective interest rate method.
Interest revenue is calculated using the effective
interest rate method. Under IFRS 9 financial assets
subsequently measured at amortised cost are subject to
loss allowance, that is, expected credit losses (ECL)
requirements.
Financial liabilities
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. Interest
expenses and gains or losses on derecognition are
recognised in the income statement.
Derivative financial liabilities are measured at fair value
through profit or loss.
If debt securities issued are redeemed before maturity,
they are derecognised and the difference between the
carrying amount and the consideration paid at
redemption is recognised in profit or loss.
IAS 39 Classification and measurement
principles (comparative period 2022)
During the comparative year 2022, based on the
measurement practice, financial assets and liabilities
were classified in the following categories upon the
initial recognition: financial assets at fair value through
profit or loss, loans and receivables, available-for-sale
financial assets, financial liabilities at fair value through
profit or loss, and other liabilities. Accounting principles
related to classification and measurement principles
under IAS 39 are presented in full in the Financial
Statements 2022.
Fair value
The fair value of financial instruments is determined
primarily by using quoted prices in active markets.
Instruments are measured either at a bid price or at the
last trade price if there is an auction policy in the stock
market of the price source. An exception are the
syndicated loans which are measured at a mid-price
because of the lower liquidity. The financial derivatives
are also measured at the last trade price. If the financial
instrument has a counter-item that will offset its market
risk, the same price source is used in assets and
liabilities to that extent. If a published price quotation
does not exist for a financial instrument in its entirety,
but active markets exist for its component parts, the fair
value is determined based on the relevant market prices
of the component parts.
Fair values of financial assets are based on either
published price quotations or valuation techniques
based on market observable inputs, where available. If
these are not available, the fair value is established by
using generally accepted valuation techniques including
recent arm’s length market transactions between
knowledgeable, willing parties, reference to the current
fair value of another instrument that is substantially the
same, discounted cash flow analysis, and option pricing
models. For a limited amount of assets, the value needs
to be determined using these other techniques.
The carrying amount of cash and cash equivalents as
well as settlement receivables included in other assets is
used as an approximation of fair value.
The financial instruments measured at fair value have
been classified into three hierarchy levels in the notes,
depending on, e.g. if the market for the instrument is
active, or if the inputs used in the valuation technique
are observable.
On level 1, the measurement of the instrument is based
on quoted prices in active markets for identical assets
or liabilities.
On level 2, inputs for the measurement of the
instrument include also other than quoted prices
observable for the asset or liability, either directly or
indirectly by using valuation techniques.
On level 3, the measurement is based on other inputs
rather than observable market data. The majority of
Sampo Group’s level 3 assets are private equity and
alternative funds.
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

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| FINANCIAL STATEMENTS 2023 | 58 |  |

publicly traded peer companies, the multiple-based
valuation, or the cashflows of the underlying
investments. Most private equity funds follow the
International Private Equity and Venture Capital (IPEV)
guidelines which give detailed instructions on the
valuation of private equity funds.
For alternative funds, the valuation is also conducted by
the fund managers. Alternative funds often have
complicated structures, and the valuation is dependent
on the nature of the underlying investments. There are
many different valuation methods that can be used, for
example, the method based on the cashflows of the
underlying investments. The operations and valuation of
alternative funds are regulated, for example by the
Alternative Investment Fund Managers Directive
(AIFMD), which determines the principles and
documentation requirements of the valuation process.
Impairment of financial assets
Sampo assesses at the end of each reporting period
whether there is any objective evidence that a financial
asset, other than those at fair value through profit or
loss, may be impaired. A financial asset is impaired and
impairment losses are recognised based on the
estimated future cash flows of the financial asset if
there is objective evidence of impairment as a result of
one or more loss events that occurred after the initial
recognition of the asset and if that event has an impact
that can be reliably estimated.
There is objective evidence of impairment, if, for
example, an issuer or debtor encounters significant
financial difficulties that will lead to insolvency and to
estimation that the customer will probably not be able
to meet the obligations to the Group. When there is
objective evidence of impairment of a financial asset
carried at amortised cost, the amount of the loss is
measured as the difference between the receivable’s
carrying amount and the present value of estimated
future cash flows discounted at the receivable’s original
effective interest rate. The difference is recognised as
an impairment loss in profit or loss. In Sampo Group the
impairment is assessed individually for each asset.
Financial assets measured at amortised cost
IFRS 9 introduced a forward-looking ECL model, which
in Sampo Group is mainly applicable to financial assets
measured at amortised 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 stages 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).

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Derivative financial instruments
and hedge accounting
Derivative financial instruments are classified as those
held for trading and those held for hedging, including
interest rate derivatives, credit risk derivatives, foreign
exchange derivatives, equity derivatives and
commodity derivatives. Derivative instruments are
measured initially at fair value. All derivatives are carried
as assets when fair value is positive and as liabilities
when fair value is negative.
Derivatives held for trading
Derivative instruments that are not designated as
hedges are treated as held for trading. They are
measured at fair value and the change in fair value,
together with realised gains and losses and interest
income and expenses, is recognised in profit or loss.
Hedge accounting
Sampo Group may hedge its operations against interest
rate risks, currency risks, and price risks through fair
value hedging and cash flow hedging. Cash flow
hedging is used as a protection against the variability of
the future cash flows. During the financial year, cash
flow hedging has been applied in Hastings.
Hedge accounting applies to hedges that are effective
in relation to the hedged risk and meet the hedge
accounting requirements of IFRS 9. The hedging
relationship between the hedging instrument and the
hedged item, as well as the risk management objective
and strategy for undertaking the hedge, are
documented at the inception of the hedge.
Cash flow hedging
Cash flow hedging is used to hedge the interest cash
flows of individual floating rate debt securities or other
floating rate assets or liabilities. The hedging
instruments used include currency forward contracts.
Derivative instruments which are designated as hedges
and are effective as such, are measured at fair value.
The effective part of the change in fair value is
recognised in other comprehensive income.
The cumulative change in fair value is transferred from
equity and recognised in profit or loss in the same
period that the hedged cash flows affect profit or loss.
When a hedging instrument expires, is sold, terminated,
or the hedge no longer meets the criteria for hedge
accounting, the cumulative change in fair value remains
in equity until the hedged cash flows affect profit or
loss.
Leases
Group as lessee
All lease contracts are primarily recognised in the
balance sheet in accordance with IFRS 16 Leases. The
only optional exemptions include certain short-term
contracts with a duration under 12 months or low-value
contracts for which the lease payments can be
recognised as an expense on a straight-line basis over
the lease term.
Right-of-use assets related to lease contracts (right to
use an underlying asset) are recognised in the asset
side as part of Property, plant and equipment and the
corresponding lease liabilities in the liability side as part
of Other liabilities. A right-of-use asset is recognised at
the commencement date of the lease and measured at
cost that includes the amount of the initial
measurement of the liability and potential prepaid rents
to the lessor. Right-of-use assets are amortised on a
straight-line basis over the lease period. Lease liability is
also recognised at the commencement date and
measured at the present value of the lease payments.
Depreciations on right-of-use assets and interests on
the lease liabilities are recognised in the income
statement.
Intangible assets
Goodwill
Goodwill represents the excess of the cost of an
acquisition (made after 1 January 2004) over the fair
value of the Group’s share of the net identifiable assets,
liabilities, and contingent liabilities of the acquired entity
at the date of acquisition. Goodwill on acquisitions
before 1 January 2004 is accounted for in accordance
with the previous accounting standards and the
carrying amount is used as the deemed cost in
accordance with the IFRS.
Goodwill is measured at historical cost less accumulated
impairment losses. Goodwill is not amortised. Instead, it
is tested at least annually for impairment.
Other intangible assets
IT software and other intangible assets, whether
procured externally or internally generated, are
recognised in the balance sheet as intangible assets
with finite useful lives if it is probable that the expected
future economic benefits that are attributable to the
assets will flow to the Group and the cost of the assets
can be measured reliably. The cost of internally
generated intangible assets is determined as the sum of
all costs directly attributable to the assets. Research
costs are recognised as expenses in profit or loss as
they are incurred. Costs arising from the development
of new IT software or from significant improvement of
existing software are recognised only to the extent they
meet the above-mentioned requirements for being
recognised as assets in the balance sheet.

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| FINANCIAL STATEMENTS 2023 | 60 |  |

Intangible assets with finite useful lives are measured at
historical cost less accumulated amortisation and
impairment losses. Intangible assets are amortised on a
straight-line basis over the estimated useful life of the
asset. The estimated useful lives by asset class are as
follows:
• IT software 3-10 years
• Other intangible assets 3-10 years
Intangible assets with an indefinite useful life, such as
brands and trademarks acquired in business
combinations, are not amortised. Instead, they are
tested at least annually for impairment.
Property, plant and equipment
Property, plant and equipment comprise properties
occupied for Sampo’s own activities, office equipment,
fixtures and fittings, and furniture.
Property, plant and equipment are measured at
historical cost less accumulated depreciation and
impairment losses.
Improvement costs are added to the carrying amount
of a property when it is probable that the future
economic benefits that are attributable to the asset will
flow to the entity. Costs for repairs and maintenance are
recognised as expenses in the period in which they
were incurred.
Items of property, plant and equipment are depreciated
on a straight-line basis over their estimated useful life. In
most cases, the residual value is estimated at zero. Land
is not depreciated. Estimates of useful life are reviewed
at financial year-ends and the useful life is adjusted if
the estimates change significantly. The estimated useful
lives by asset class are as follows:
• Buildings 20-50 years
• Components of buildings 15-20 years
• Property and leasehold improvements 4-10 years
• IT equipment and motor vehicles 2-5 years
• Other equipment 3-15 years
Depreciation of property, plant or equipment will be
discontinued if the asset in question is classified as held
for sale in accordance with IFRS 5 Non-current Assets
Held for Sale and Discontinued Operations.
Impairment of intangible assets
and property, plant and equipment
At each reporting date, the Group assesses whether
there is any indication that an intangible asset or an
item of property, plant or equipment may be impaired.
If any such indication exists, the Group will estimate the
recoverable amount of the asset. In addition, goodwill,
intangible assets not yet available for use, and
intangible assets with an indefinite useful life will be
tested for impairment annually, independent of any
indication of impairment. For impairment testing the
goodwill is allocated to the cash-generating units of the
Group from the date of acquisition. In the test, the
carrying amount of the cash-generating unit, including
the goodwill, is compared with its recoverable amount.
The recoverable amount is the higher of an asset’s fair
value less costs to sell and its value in use. The value in
use is calculated by estimating future net cash flows
expected to be derived from an asset or a cash-
generating unit, and by discounting them to their
present value using a pre-tax discount rate. If the
carrying amount of an asset is higher than its
recoverable amount, an impairment loss is recognised in
profit or loss. In conjunction with this, the impaired
asset’s useful life will be re-determined.
The impairment loss is reversed if there has been a
change in circumstances and the recoverable amount
has changed after the recognition of the impairment
loss, but no more than to the carrying amount that it
would have been without recognition of the impairment
loss. Impairment losses recognised for goodwill are not
reversed.
Insurance contracts
Sampo Group is applying IFRS 17 Insurance Contracts
from 1 January 2023 and comparative figures are
restated for 2022. Sampo Group’s operations are
focused on the P&C business and Sampo primarily uses
the premium allocation approach (PAA) under IFRS 17.
More details on IFRS 17 transition are included in the
section Transition to IFRS 17 Insurance Contracts and
IFRS 9 Financial Instruments.
The risks involved in insurance contracts are widely
elaborated in the Group’s note 37.

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| FINANCIAL STATEMENTS 2023 | 61 |  |

P&C operations
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 containing one or more
components within the scope of different accounting
standards are accounted for separately. Sampo
evaluates the insurance contracts 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. The portfolios comprise contracts
with similar risks that are managed together. These
portfolios are further divided into annual cohorts, i.e.
contracts 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 the
management), business area and country. Portfolios are
determined separately for each legal entity or based on
product lines.
Sampo Group has identified some onerous contracts,
but all in all their amount is insignificant.
The carrying amount of the portfolios of insurance and
reinsurance contracts determines their presentation as
assets or liabilities in the balance sheet.
Contract boundary
The initial measurement of a 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,
together with 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, because the coverage period for most of the
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 acquisition
cash flow asset, and liability for incurred claims (LIC),
the latter 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 recognised.
The acquisition cash flows reducing the carrying
amount of LRC 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 recognised, are presented
as a separate acquisition cash flow asset and included in
the related portfolio’s total carrying amount.
The liability for remaining coverage relates to the
obligation to investigate and pay valid claims that have
not yet occurred. 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,
remain in this liability. The carrying amount is also

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| FINANCIAL STATEMENTS 2023 | 62 |  |

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.
For groups of onerous contracts, a loss component is
part of the liability for remaining coverage. The loss
component is calculated as the difference between the
liability measured with the general measurement model
and with the premium allocation approach.
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. Both the best estimate and risk adjustment are
discounted to present value using standard actuarial
methods and applying market-based yield curves. The
curves are constructed based on a risk-free rate and an
illiquidity premium for each of the main currencies.
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. Discount rates are constructed
separately for the main currencies applied in Sampo
Group’s subsidiaries.
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 accounting 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.

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| FINANCIAL STATEMENTS 2023 | 63 |  |

Life operations
Sampo Group’s life operations were reclassified as
discontinued operations during the first quarter.
Accounting principles related to life operations are
presented in the note 32.
Employee benefits
Post-employment benefits
Post-employment benefits include pensions and life
insurance.
Sampo has defined benefit plans in Sweden and
Norway, and defined contribution plans in other
countries. The most significant defined contribution
plan is that arranged through the Employees’ Pensions
Act (TyEL) in Finland.
In the defined contribution plans, the Group pays fixed
contributions to a pension insurance company and has
no legal or constructive obligation to pay further
contributions. The obligations arising from a defined
contribution plan are recognised as an expense in the
period to which the obligation relates.
In the defined benefit plans, the company still has
obligations after paying the contributions for the
financial period and bears their actuarial and/or
investment risk. The obligation is calculated separately
for each plan using the projected unit credit method. In
calculating the amount of the obligation, actuarial
assumptions are used. The pension costs are recognised
as an expense for the service period of employees.
Defined benefit plans are both funded and unfunded.
The amounts reported as pension costs during a
financial year consist of the actuarially calculated
earnings of old-age pensions during the year, calculated
straight-line, based on pensionable income at the time
of retirement. The calculated effects in the form of
interest expense for crediting/appreciating the
preceding years’ established pension obligations are
then added. The calculation of pension costs during the
financial year starts at the beginning of the year and is
based on assumptions about such factors as salary
growth and price inflation throughout the duration of
the obligation and on the current market interest rate
adjusted to take into account the duration of the
pension obligations.
The current year pension cost and the net interest of
the net liability is recognised through profit or loss in
pension costs. The actuarial gains and losses and the
return of the plan assets (excluding net interest) are
recognised as a separate item in other comprehensive
income.
The fair value of the plan assets covered by the plan is
deducted from the present value of future pension
obligations and the remaining net liability or net asset is
recognised separately in the balance sheet.
The Group has also certain voluntary defined benefit
plans which have no material significance.
Termination benefits
An obligation based on termination of employment is
recognised as a liability when the Group is verifiably
committed to terminate the employment of one or
more persons before the normal retirement date or to
grant benefits payable upon termination as a result of
an offer to promote voluntary redundancy. As no
economic benefit is expected to flow to the employer
from these benefits in the future, they are recognised
immediately as an expense. Obligations maturing more
than 12 months later than the balance sheet date are
discounted. The benefits payable upon termination at
Sampo are the monetary and pension packages related
to redundancy.
Share-based payments
During the financial year, Sampo had four valid share-
based incentive schemes settled in cash (the long-term
incentive schemes 2017 II as well as 2020 I, 2020 II and
2020 III for the management and key employees).
Topdanmark had one mainly share-settled incentive
scheme for the executive board and senior executives
during the financial year. Hastings had also a share-
based incentive scheme settled in cash during the
financial year.
More information on the different incentive schemes of
the Group companies can be found in note 28 Incentive
schemes.
The schemes have been measured at fair value at the
grant date and at every reporting date thereafter.
In the schemes settled in cash, the valuation is
recognised as a liability and changes are recognised
through profit or loss.
In the schemes settled in shares, the strike amounts
received on the exercise of the options are recognised
in the shareholder’s equity.
The fair value of the schemes has to a large extent been
determined using the Black-Scholes-pricing model. The
fair value of the market-based part of the incentive
takes into consideration the model’s forecast
concerning the number of incentive units to be paid as
a reward. The effects of non-market-based terms are
not included in the fair value of the incentive; instead,
they are considered in the number of those incentive
units that are expected to be exercised during the
vesting period. In this respect, the Group will update the
assumption on the estimated final number of incentive
units at every interim or annual balance sheet date.

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| FINANCIAL STATEMENTS 2023 | 64 |  |

Income taxes
Item Tax expenses in the income statement comprise
current and deferred tax. Tax expenses are recognised
through profit or loss, except for items recognised
directly in equity or other comprehensive income, in
which case the tax effect will also be recognised for
those items. Current tax is calculated based on the valid
tax rate of each country. Tax is adjusted by any tax
related to previous periods.
Deferred tax is calculated on all temporary differences
between the carrying amount of an asset or liability in
the balance sheet and its tax base. Deferred tax is not
recognised on non-deductible goodwill impairment, nor
is it recognised on the undistributed profits of
subsidiaries to the extent that it is probable that the
temporary difference will not reverse in the foreseeable
future. Deferred tax liabilities and assets are offset in the
individual companies if, and only if, they relate to
income taxes levied by the same taxation authority and
the company has a legally enforceable right of offset
them.
Deferred tax is calculated by using the enacted tax
rates prior to the balance sheet date. A deferred tax
asset is recognised to the extent that it is probable that
future taxable income will be available against which a
temporary difference can be utilised.
Share capital
The incremental costs directly attributable to the issue
of new shares or options or to the acquisition of a
business are included in equity as a deduction, net of
tax, from the proceeds.
Dividends are recognised in equity in the period when
they are approved by the Annual General Meeting.
When the parent company or other Group companies
purchase the parent company’s equity shares, the
consideration paid is deducted from the equity as
treasury shares until they are cancelled. If such shares
are subsequently sold or reissued, any consideration
received is included in equity.
Treasury shares
The purchase price paid for buy-back of treasury shares
(own shares) is directly deducted from equity. No gains
or losses are recognised from purchase, sale, or
cancellation of own shares. If own shares are re-issued,
the difference between purchase price and
consideration received is recognised in the premium
reserve.
Cash and cash equivalents
Cash and cash equivalents comprise cash and short-
term deposits (3 months).
Sampo presents cash flows from operating activities
using the indirect method in which the profit (loss)
before taxation is adjusted for the effects of
transactions of a non-cash nature, deferrals and
accruals, and income and expense associated with
investing or financing cash flows.
In the cash flow statement, interest received and paid is
presented in cash flows from operating activities. In
addition, the dividends received from other than
associated companies are included in cash flows from
operating activities. Dividends received from associates
are presented in cash flows from investments.
Dividends paid are presented in cash flows from
financing.

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| FINANCIAL STATEMENTS 2023 | 65 |  |

Accounting policies requiring
management judgement and
key sources of estimation
uncertainties
Preparation of the accounts in accordance with the
IFRS requires management estimates and assumptions
that have affected the revenue, expenses, assets,
liabilities and contingent liabilities presented in the
financial statements. Judgement is required also in the
application of accounting policies. The estimates made
are based on the best information available at the
balance sheet date. The estimation is based on historical
experiences and the most probable assumptions
concerning the future at the balance sheet date. The
actual outcome may deviate from results based on
estimates and assumptions. Any changes in the
estimates will be recognised in the financial year during
which the estimate is reviewed in all subsequent
periods.
Insurance contracts
Sampo Group management applies judgement
regarding the determination of discount rates and risk
adjustment.
The interest rate curve includes a risk-free rate and an
illiquidity premium determined by Management, which
in Sampo Group is mainly based on a portfoli o of high-
rated bonds.
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 to risk aversion. The
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 per cent to 85 per cent.
Actuarial assumptions
Evaluation of insurance liabilities always involves
uncertainty, as technical provisions are based on
estimates and assumptions concerning future claims
costs. The estimates are based on statistics on historical
claims available to the Group on the balance sheet date.
The uncertainty related to the estimates is generally
greater when estimating new insurance portfolios or
portfolios where the clarification of a loss takes a long
time because complete claims statistics are not yet
available. In addition to the historical data, estimates of
insurance liabilities take into consideration other
matters such as claims development, the amount of
unpaid claims, legislative changes, court rulings and the
general economic situation.
A substantial part of the Group’s P&C insurance
liabilities concerns statutory accident and traffic
insurance. The most significant uncertainties related to
the evaluation of these liabilities are assumptions about
inflation, mortality, discount rates and the effects of
legislative revisions and legal practices.
Defined benefit plans as intended in IAS 19 are also
estimated in accordance with actuarial principles. As
the calculation of a pension plan reserve is based on
expected future pensions, assumptions must be made
not only about discount rates, but also about matters
such as mortality, employee turnover, price inflation and
future salaries.
Determination of fair value
The fair value of any non-quoted financial assets is
determined using valuation methods that are generally
accepted in the market.
Impairment tests
Goodwill, and intangible assets with an indefinite useful
life are tested for impairment at least annually. The
recoverable amounts from cash-generating units have
mainly been determined by using calculations based on
the value in use. These require management estimates
on matters such as future cash flows, the discount rate,
and general economic growth and inflation.
Consolidation of Topdanmark as a
subsidiary
According to IFRS 10 Consolidated Financial Statements
an investor controls an investee when it is exposed, or
has rights, to variable returns from its involvement with
the investee, and has the ability to affect those returns
through its power over the investee.
On 30 September 2017, Sampo’s ownership of
Topdanmark AS’s shares was 44.2 per cent and 49.1 per
cent of votes. At that time, Sampo’s management
thoroughly considered all the facts and circumstances
required by the standard in assessing whether Sampo
controlled Topdanmark and concluded that it should
consolidate Topdanmark as a subsidiary in the
consolidated financial statements. Considerations
included, among other things, the fact that Sampo was
the largest individual investor and Sampo was unaware
of any agreements between the other investors. In
addition, it was considered that Sampo had the power
to direct Topdanmark’s relevant activities, i.e., the
activities that significantly affect the investee’s returns.
At the time of assessment, Sampo had three members
in Topdanmark’s Board of Directors, one of them being
the Chairman. In total, there are 9 members on
Topdanmark’s Board and a vote of 50 per cent is
required for the decision making, according to the
Articles of Association. However, Sampo has the right,
at its discretion, to convene an extraordinary general

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| FINANCIAL STATEMENTS 2023 | 66 |  |

meeting to change the composition of the Board of
Directors and therefore gain the majority of voting
rights over the Board of Directors.
Discontinued operations
Sampo evaluated the reclassification principles set in
IFRS 5 Non-current Assets Held for Sale and
Discontinued Operations and IFRIC 17 Distribution of
Non-cash Assets to Owners. As a result of the analysis,
Sampo concluded that the demerger met the criteria
set for arrangements considered as held for distribution
to owners acting in their capacity as owners on 30
September 2023. Mandatum’s assets and liabilities were
reclassified as a disposal group held for distribution to
owners and related liabilities on 31 March 2023.
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 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 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. 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.
The best estimate for the fair value of Mandatum Group
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 in a dividend liability of EUR
1,835 million.
As the dividend liability recognised in September 2023
was EUR 1,826 million, Sampo recognised a difference
of EUR 9 million 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 the 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
practise 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, in accordance with IAS 8.32
Accounting Policies, Changes in Accounting Estimates
and Errors and not a change in an 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.

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| FINANCIAL STATEMENTS 2023 | 67 |  |

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.
Sampo is in the process of assessing its exposure to the
global minimum top-up tax rules for when it comes into
effect. The assessment does not indicate any material
additional tax to be levied as a consequence of the top-
up tax rules, apart from a possible exception in
Gibraltar. Due to the complexities in applying the
legislation and calculating GloBe income, there may still
be top-up tax effects.
Transition to IFRS 17 Insurance
Contracts and IFRS 9 Financial
Instruments
Summary of high-level impacts in Sampo
Group
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. PAA requires
changes in the calculation of insurance liabilities,
including 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 is
currently 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.
Implementation of IFRS 17 or IFRS 9 did not have an
impact on the Solvency II calculations.
IFRS 17 Insurance Contracts
Transition approaches applied
On transition to IFRS 17 a full retrospective approach
and restatement of the previous year’s comparatives is
required. However, if the application of a full
retrospective approach is impracticable, then a
modified retrospective approach or a fair value
approach may be applied. A full retrospective approach
was applied in the Group’s non-life companies whereas
all transition methods were applied in the Group’s life
company.
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 derecognised any existing balances that
would not exist if IFRS 17 had always been applied. The
resulting net difference was recognised in retained
earnings.
Sampo Group's life operations applied the modified
retrospective approach and fair value approach, when
application of the full retrospective approach was
impracticable. The choice of transition approach
depended on the type of the product/portfolio, the
issue date, and data availability.
When applying the fair value approach, Sampo Group’s
life operations were required to determine the
contractual service margin or loss component of the
liability for the remaining coverage at the transition
date. as the difference between the fair value of a group
of insurance contracts at that date and the fulfilment
cash flows measured at the same date. At the end of
the reporting period 2023, Sampo Group does not have
life operations due to the partial demerger and listing of
Mandatum Group on 1 October 2023.

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| FINANCIAL STATEMENTS 2023 | 68 |  |

Opening balance sheet 1 January 2022
Sampo Group's opening balance sheet amounted to EUR 58.7 billion and equity to
EUR 13.5 billion. Compared to the IFRS 4 closing balance sheet of EUR 61.1 billion, the
opening IFRS 17 balance sheet decreased by EUR 2.4 billion. On transition to IFRS 17,
both assets and liabilities decreased mainly due to reclassifications of premium
receivables, and deferred acquisition costs from other assets to insurance liabilities in
the balance sheet. Discounting of reserves decreased insurance liabilities, whereas
introduction of risk adjustment increased insurance liabilities. The introduction of the
loss component related to onerous contracts had only an insignificant impact on
transition.
The net transition impact on the IFRS 17 equity was insignificant, amounting to EUR 14
million in the opening balance sheet.
The following table presents the IFRS 17 opening balance sheet, as of 1 January 2022.

EURm | 1 Jan 2022
Assets |
Property, plant and equipment | 373
Investment property | 236
Intangible assets | 3,660
Investments in associates | 475
Financial assets | 19,862
Financial assets related to unit-linked contracts | 10,546
Deferred income tax | 53
Insurance contract assets | 41
Reinsurance contract assets | 2,008
Other assets | 712
Cash and cash equivalents | 4,690
Non-current assets held for sale* | 16,029
Total assets | 58,684
Liabilities |
Insurance contract liabilities | 18,266
Investment contract liabilities | 7,239
Subordinated debts | 2,016
Other financial liabilities | 2,315
Deferred income tax | 851
Other liabilities | 1,532
Liabilities related to non-current assets held for sale* | 13,010
Total liabilities | 45,228
Equity |
Share capital | 98
Reserves | 1,530
Retained earnings | 9,945
Other components of equity | 1,231
Equity attributable to owners of the parent | 12,805
Non-controlling interests | 651
Total equity | 13,456
Total equity and liabilities | 58,684

* 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 33 for further information.

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| FINANCIAL STATEMENTS 2023 | 69 |  |

IFRS 17 impacts on Sampo Group’s non-life
operations
The impact on the insurance contract liabilities due to
the introduction of the new IFRS 17 components,
including risk adjustment, deferred acquisition costs and
additional discounting amounted to EUR -2 billion. The
main impacts decreasing the insurance contract
liabilities were due to the additional discounting effect
and reclassifications. Under IFRS 17, all liabilities for
incurred claims are discounted, whereas only a smaller
part of reserves was discounted under IFRS 4.
IFRS 17 impacts on Sampo Group’s life operations
In the IFRS 17 opening balance, insurance contract
liabilities amounted to EUR 6.6 billion. Introduction of
discounting, as well as the new IFRS 17 components, risk
adjustment and CSM, increased the insurance contract
liabilities. At transition, the CSM amounted to EUR 433
million.
A significant part of life insurance liabilities (unit-linked
policies) is in the scope of IFRS 9, as these contracts do
not include significant insurance risk or discretionary
bonuses. In the opening balance sheet these investment
contract liabilities amounted to EUR 7.2 billion. For
contracts in scope of IFRS 9, expected profits are not
presented as CSM.
At the end of reporting period 2023, Sampo Group
does not have life operations due to the partial
demerger and listing of Mandatum Group on 1 October
2023.
Equity bridge calculation between IFRS 4 and IFRS 17
Sampo Group assessed the impact that the application
of IFRS 17 had on the Group’s equity. Sampo Group’s
retained earnings decreased by EUR 7 million (of which
revaluation of investment property was EUR 2 million),
and other components of equity increased by EUR 23
million at 1 January 2022. Other components of equity
increased due to the termination of shadow accounting
related to the segregated group pension portfolio.

EURm | Share capital | Reserves | Retained earnings | Other components of equity | Non-controlling interests | Total
Equity 31 Dec 2021 | 98 | 1,530 | 9,952 | 1,208 | 676 | 13,464
IFRS 17 adjustments non-life companies |  |  | 9 |  | -32 | -23
IFRS 17 adjustments life company |  |  | -18 |  |  | -18
Tax impact |  |  | 0 |  | 7 | 7
Other |  |  | 2 | 23 |  | 25
Equity 1 Jan 2022 | 98 | 1,530 | 9,945 | 1,231 | 651 | 13,456

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| FINANCIAL STATEMENTS 2023 | 70 |  |

IFRS 9 Financial Instruments
IFRS 9 Financial Instruments standard superseded IAS 39 Financial Instruments:
Recognition and Measurement. The new standard changed the classification and
measurement of financial assets, and includes a new impairment model based on
expected credit losses.
Sampo Group has 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.
Classification and measurement under IFRS 9
The table presents the changes in classification and measurement of the main financial
assets and liabilities during the transition to IFRS 9. The implementation of IFRS 9 did
not have a material impact on the measurement of the balance sheet, as the main part
of the financial assets were reported at fair value under IAS 39 in the balance sheet,
which is also the measurement principle under IFRS 9. Therefore, the new classification
requirements did not have a material impact on total equity at the transition to IFRS 9
As financial assets classified as available for sale under IAS 39 are measured at fair
value through profit or loss under IFRS 9, the equity reserve related to available-for-
sale financial assets is transferred into retained earnings.
There were no changes in the measurement of financial liabilities on transition to
IFRS 9.

Measurement category under IAS 39 | Measurement category under IFRS 9 | Carrying amount 31 Dec 2022 (IAS 39) | Transfer | Carrying amount 1 Jan 2023 (IFRS 9)
|  | EURm |  | EURm
Derivative financial instruments | Derivative financial instruments | 79 | — | 79
Financial assets at fair value | Financial assets at fair value through profit or loss | 3,045 | — | 3,045
Financial assets available for sale | Financial assets at fair value through profit or loss | 16,048 | — | 16,048
Loans and receivables | Financial assets at amortised cost | 296 | — | 296

The carrying amounts presented in the table above exclude the effect of expected credit losses.
The effect is expected to be insignificant. Previously recognised incurred credit losses are included
in the carrying amounts presented in the table.
Investments underlying unit-linked policies amounting to EUR 10.5 billion are excluded in the
table.They are classified as at fair value through profit or loss both under IAS 39 and IFRS 9.

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| FINANCIAL STATEMENTS 2023 | 71 |  |

Segment information
At the end of the reporting period, Sampo Group’s
business segments are If, Topdanmark, Hastings and
Holding. At the end of comparative period, Mandatum
has been presented as a business segment.
Segment information has been produced in accordance
with the accounting policies adopted for preparing and
presenting the consolidated financial statements. The
segment revenue, expense, assets and liabilities, either
directly attributable or reasonably allocable, have been
allocated to the segments. Inter-segment pricing is
based on market prices. The transactions, assets and
liabilities between the segments are eliminated in the
consolidated financial statements on a line-by-line basis.
There was no significant income between segments
during the financial periods.

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| FINANCIAL STATEMENTS 2023 | 72 |  |

Result by segment for twelve months ended 31 December 2023

EURm | If | Topdan- mark | 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, 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 | — | — | -1
Cash flow hedges | — | — | -1 | — | — | -1
Total items reclassifiable to profit or loss, net of tax | -23 | -3 | 23 | — | — | -3

EURm | If | Topdan- mark | Hastings | Holding | Elim. | Sampo Group
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

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.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 73 |  |

Result by segment for twelve months ended 31 December 2022

EURm | If | Topdan- mark | 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, 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

EURm | If | Topdan- mark | Hastings | Holding | Elim. | Sampo Group
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

Mandatum’s segment has been presented in the table on a single line as a discontinued operation,
and therefore the Group total by lines do not reconcile to the segment totals.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 74 |  |

Balance sheet by segment at 31 December 2023

EURm | If | Topdanmark | Hastings | Holding | Elim. | Sampo Group
Assets |  |  |  |  |  |
Property, plant and equipment | 177 | 117 | 19 | 4 | — | 318
Intangible assets | 579 | 1,545 | 1,512 | 1 | — | 3,637
Investments in associates | 4 | 8 | — | — | — | 12
Financial assets | 10,838 | 2,060 | 1,407 | 7,564 | -6,112 | 15,757
Deferred income tax | 4 | 4 | — | — | -4 | 3
Reinsurance contract assets | 563 | 79 | 1,640 | — | — | 2,282
Other assets | 553 | 89 | 136 | 23 | — | 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 | 0 | — | 567
Other liabilities | 1,011 | 162 | 112 | 58 | — | 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

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 75 |  |

Balance sheet by segment at 31 December 2022

EURm | If | Topdanmark | Hastings | Mandatum | Holding | Elim. | Sampo Group
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

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 76 |  |

Geographical information

EURm |  |  |  |  |  |  |
2023 | Finland | Sweden | Norway | Denmark | UK | Baltic | Total
Revenue from external customers | 1,343 | 1,801 | 1,654 | 1,897 | 1,308 | 223 | 8,225
Non-current assets | 111 | 454 | 189 | 1,675 | 1,531 | 7 | 3,968

EURm |  |  |  |  |  |  |
2022 | Finland | Sweden | Norway | Denmark | UK | Baltic | Total
Revenue from external customers | 1,682 | 1,840 | 1,730 | 1,848 | 1,030 | 189 | 8,319
Non-current assets | 481 | 457 | 208 | 1,354 | 1,523 | 7 | 4,030

Geographical information has been disclosed on income from external customers and
non-current assets. The reported areas are Finland, Sweden, Norway, Denmark, UK and
the Baltic countries.
The revenue includes insurance revenue according to the underwriting country.
Holding includes net investment income and other operating income. For Hastings,
income from broker activities has been included as well. Revenue from external
customers during the reporting period 2023 includes Mandatum’s revenue until the
date of demerger i.e. 1 October 2023.
Non-current assets comprise of intangible assets, investments in associates, property,
plant and equipment, and investment property. At the end of the reporting period,
non-current assets no longer include Mandatum’s assets or liabilities.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 77 |  |

Other notes
1 Insurance service result

EURm | 1-12/2023 | 1-12/2022
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

The table does not include Mandatum Group’s figures. For further information, please see note 32.
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 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.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 78 |  |

2 Net investment income
The n et 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.

EURm | 1-12/2023 | 1-12/2022
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

EURm | 1-12/2023 | 1-12/2022
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

The table does not include Mandatum Group’s figures. For further information, please see note 32.
Net gains or losses for debt securities include exchange differences of EUR -3 million
(2).
The amount of expected credit losses on financial assets measured at amortised cost is
presented in the note 14.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 79 |  |

3 Net finance income or expense from
insurance contracts

EURm | 1-12/2023 | 1-12/2022
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

The table does not include Mandatum Group’s figures. For further information, please see note 32.
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

EURm | 1-12/2023 | 1-12/2022
Other income | 265 | 345
Income related to broker activities | 12 | 6
Total other income | 277 | 350

The table does not include Mandatum Group’s figures. For further information, please see note 32.
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, e.g. 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 Other expenses

EURm | 1-12/2023 | 1-12/2022
Other expenses | -300 | -127
Depreciation and amortisation | -99 | -117
Salaries and other staff costs | -57 | -192
Total other expenses | -457 | -436

The table does not include Mandatum Group’s figures. For further information, please see note 32.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 80 |  |

Expenses by nature
As Sampo presents expenses by function in the statement of profit or loss, the
following table provides additional information on the nature of the expenses including
the total of depreciation, amortisation and employee benefit expense.

EURm | 1-12/2023 | 1-12/2022
Staff costs |  |
Salaries and wages | -893 | -892
Cash-settled share-based payments | -4 | -34
Share-settled share-based payments | -2 | -2
Pension costs |  |
Pension expenses - defined contribution plans | -99 | -101
Pension expenses - defined benefit plans | -15 | -17
Other social security costs | -168 | -176
Depreciations |  |
Depreciation on plant and equipment | -15 | -8
Depreciation IFRS 16 | -33 | -34
Amortisations |  |
Amortisation on customer relations | -64 | -65
Amortisation on other intangibles | -46 | -62
Rental expenses | -34 | -36
IT costs | -244 | -250
Marketing expenses | -62 | -65
Other | -654 | -594
Total expenses split by nature | -2,335 | -2,337

The table includes Mandatum Group’s figures.
The main items in line Other include c ommission s of EUR 138 million (157), other
technical expenses of EUR 132 million (20), acquisition costs of EUR 92 million (78),
and levies EUR 48 million (42).
6 Auditor's fees

EUR thousand | 1-12/2023 | 1-12/2022
Auditing fees | -4,666 | -4,300
Deloitte | -4,032 | -4,000
KPMG | -634 | -300
Other fees | -612 | -1,000
Deloitte | -460 | -700
KPMG | -152 | -300
Total | -5,278 | -5,300

7 Finance expenses

EURm | 1-12/2023 | 1-12/2022
Interest expense on financial liabilities | -24 | -32
Interest expense on subordinated loans | -48 | -49
Other items | -22 | -17
Total finance expenses | -93 | -98

The table does not include Mandatum Group’s figures. For further information, please see note 32.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 81 |  |

8 Components of other comprehensive
income

EURm | 1-12/2023 | 1-12/2022
Other comprehensive income |  |
Items reclassifiable to profit or loss |  |
Exchange differences | -1 | -268
Available-for-sale financial assets |  |
Gains/losses arising during the year | n/a | -1,102
Reclassification adjustments (IAS 1.93) | n/a | -19
Cashflow 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 | n/a | -484
Other comprehensive income total, net of tax | -8 | -1,639

The table does not include Mandatum Group’s figures in 2023 . For further information, please see
note 32.
9 Earnings per share

EURm | 1-12/2023 | 1-12/2022
Profit or loss attributable to the equity holders of the parent company | 1,323 | 2,107
Weighted average number of shares outstanding during the financial year* | 506 | 530
Earnings per share (EUR per share) | 2.62 | 3.97
Earnings per share, continuing operations | 2.12 | 2.88
Earning per share, discontinuing operations | 0.50 | 1.09

* The weighted average number of treasury shares during the financial year has been taken into
account in the number of shares. There were no other share-related transactions during the
financial year.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 82 |  |

10 Property, plant and equipment

| 2023
EURm | Right-of- use assets 1 | Land and buildings | Plant and equipment 2 | Total
At 1 January |  |  |  |
Cost | 289 | 119 | 162 | 570
Accumulated depreciation | -92 | -8 | -115 | -216
Net carrying amount at 1 January | 197 | 111 | 47 | 355
Carrying amount at 1 January |  |  |  |
Business acquisitions | — | 1 | 0 | 1
Additions | 19 | 1 | 25 | 45
Disposals | -20 | -4 | -5 | -29
Depreciation | -32 | 0 | -14 | -46
Exchange differences | -4 | 0 | -1 | -4
Other changes | — | -3 | — | -3
Carrying amount at 31 December | 160 | 106 | 52 | 318
At 31 December |  |  |  |
Cost | 286 | 114 | 182 | 582
Accumulated depreciation | -126 | -9 | -130 | -264
Net carrying amount at 31 December | 160 | 106 | 52 | 318

The disposals in the financial year include the PP&E of Mandatum Group, separated
from Sampo on 1 October 2023. For further information, please see note 32.

| 2022
EURm | Right-of- use assets 1 | Land and buildings | Plant and equipment 2 | Total
At 1 January |  |  |  |
Cost | 276 | 127 | 162 | 566
Accumulated depreciation | -70 | -8 | -113 | -191
Net carrying amount at 1 January | 207 | 119 | 50 | 375
Carrying amount at 1 January |  |  |  |
Additions | 33 | — | 18 | 50
Disposals | -3 | — | -13 | -17
Depreciation | -34 | -1 | -8 | -43
Exchange differences | -6 | -7 | 0 | -12
Carrying amount at 31 December | 197 | 111 | 47 | 355
At 31 December |  |  |  |
Cost | 294 | 120 | 163 | 577
Accumulated depreciation | -97 | -9 | -116 | -222
Net carrying amount at 31 December | 197 | 111 | 47 | 355

1 The Group acts as a lessee in various leases of office premises, vehicles, and office equipment.
Right-of-use assets relate to lease contracts for large office premises. The Group leases premises
mainly for its own use. The expected lease term varies from 2 to 12 years. Most contracts include an
option to extend the contract at the term end. Some lease contracts have an option to terminate
the contract before the term end. Variable lease payments are generally linked to consumer price
indexes.
More information on leases is in note 25 Other liabilities.
2 Equipment in different segments comprise IT equipment and furniture.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 83 |  |

11 Intangible assets

| 2023
EURm | Goodwill | Customer relations | Trademark | Work in progress | Other intangible assets | Total
At 1 January |  |  |  |  |  |
Cost | 2,385 | 679 | 224 | 72 | 625 | 3,985
Accumulated amortisation | — | -216 | — | — | -275 | -492
Net carrying amount at 1 January | 2,385 | 463 | 224 | 72 | 350 | 3,494
Net carrying amount at 1 January |  |  |  |  |  |
Business acquisitions | 238 | 72 | 7 | — | 8 | 325
Additions | — | — | — | 102 | 4 | 106
Disposals | -163 | -31 | — | -2 | -4 | -200
Amortisation | — | -65 | 0 | -1 | -44 | -109
Transfers from WIP | — | — | — | -81 | 81 | —
Exchange differences | 10 | 3 | 3 | — | 5 | 21
Net carrying amount at 31 December | 2,469 | 443 | 233 | 90 | 401 | 3,637
At 31 December |  |  |  |  |  |
Cost | 2,469 | 726 | 233 | 91 | 722 | 4,241
Accumulated amortisation | — | -282 | 0 | -1 | -321 | -604
Net carrying amount at 31 December | 2,469 | 443 | 233 | 90 | 401 | 3,637

The disposals in the financial year include the intangibles of Mandatum Group,
separated from Sampo on 1 October 2023. For further information, please see note 32.

| 2022
EURm | Goodwill | Customer relations | Trademark | Work in progress | Other intangible assets | Total
At 1 January |  |  |  |  |  |
Cost | 2,490 | 716 | 277 | 36 | 681 | 4,200
Accumulated amortisation | — | -157 | — | — | -249 | -406
Net carrying amount at 1 January | 2,490 | 560 | 277 | 36 | 432 | 3,794
Net carrying amount at 1 January |  |  |  |  |  |
Business acquisitions | — | 5 | — | 1 | 2 | 7
Additions | 3 | 1 | — | 102 | 7 | 114
Disposals | -12 | -28 | -43 | -6 | -72 | -162
Amortisation | — | -65 | — | — | -60 | -125
Transfers from WIP | — | — | — | -41 | 41 | —
Other changes | -4 | 1 | — | -19 | 16 | -5
Exchange differences | -92 | -11 | -10 | -1 | -15 | -129
Net carrying amount at 31 December | 2,385 | 463 | 224 | 72 | 350 | 3,494
At 31 December |  |  |  |  |  |
Cost | 2,385 | 680 | 224 | 72 | 626 | 3,988
Accumulated amortisation | — | -218 | — | — | -276 | -494
Net carrying amount at 31 December | 2,385 | 463 | 224 | 72 | 350 | 3,494

The comparison year includes Mandatum. For further information, please see note 32.

Goodwill is split between the segments as follows: | 2023 | 2022
If | 556 | 562
Topdanmark | 1,038 | 802
Hastings | 876 | 858
Mandatum | — | 163
Total | 2,469 | 2,385

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 84 |  |

The useful life for customer relations in the Group is 3–10 years. They are amortised
using the straight-line method. The useful life of trademark is deemed indefinite and it
will not be amortised.
Other intangible assets in all segments comprise mainly IT software. Amortisations and
impairment losses are included in the income statement item Other expenses.
Testing goodwill for impairment
Goodwill is tested for impairment in accordance with IAS 36 Impairment of assets. No
impairment losses have been recognised based on these tests.
For the purpose of testing goodwill for impairment, Sampo determines the recoverable
amount of its cash-generating units, to which goodwill has been allocated, on the basis
of value in use. Sampo has defined these cash-generating units as If Group,
Topdanmark Group, and Hastings Group.
The recoverable amounts for If and Hastings have been determined by using a
discounted cash flow model. The model is based on the best estimates of companies’
management of both historical evidence and financial conditions such as premiums,
claims, reinsurance, margins, interest rates, capital structure, and income and cost
development. The derived cash flows were discounted at the pre-tax rate of the cost
of equity which for both If and Hastings was 10.1 per cent. The cost of capital is defined
based on the CAPM model from external sources to reflect the risk of each company
relative to the market.
Forecasts for If, approved by the management, cover the years 2024–2026. The cash
flows beyond that have been extrapolated using a 2 per cent growth rate. Hastings’
long-term growth rate for years beyond 2028 is 2.0 per cent.
For Hastings, the recoverable amount exceeds its carrying amount by some EUR 700
million. With the calculation method used, e.g. an increase of about 2 percentage
points in the cost of equity could lead to a situation where the recoverable amount of
the entity would equal its carrying amount.
As for the If Group, the management believes that any reasonably possible change in
any of these key assumptions would not cause the aggregate carrying amount to
exceed the aggregate recoverable amount.
IAS 36 permits determining the recoverable amount by using the fair value less costs
to sell. For Topdanmark, the valuation of goodwill has been tested on the balance
sheet date by using that method. The fair value of Topdanmark of EUR 1,904 million on
the balance sheet date exceeds its carrying amount in the Group.
Sensitivity analysis

Impact on the present value from the following changes (EURbn) | 2023
If |
Long-term Combined ratio +2.5 p.p. | -1.7
Long-term Combined ratio -2.5 p.p. | 1.7
Long-term growth rate -1 p.p. | -1.8
Long-term growth rate +1 p.p. | 2.6
Cost of equity +1 p.p. | -2.1
Cost of equity -1 p.p. | 3.0
Hastings |
Long-term growth rate -1 p.p. | -0.3
Long-term growth rate +1 p.p. | 0.4
Cost of Equity +1 p.p. | -0.4
Cost of Equity -1 p.p. | 0.5

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 85 |  |

Acquisition of Oona Health AS, impairment testing of goodwill
On 1 December 2023, Topdanmark acquired 100% of the shares of Oona Health A/S.
The purchase price includes goodwill of EUR 237 million (DKK 1,770 million). For
further information on the acquisition, please see note 34.
Calculation of value in use is based on 10 years expected cash flows as approved by
the management. The pre-tax discount rate is 13.8%, and the post-tax rate 10.2%.

| 2023
Assumptions |
Earned premiums, CAGR, 0-10 years | 8.9%
Earned premiums CAGR >10 years (terminal growth) | 3.0%
Long-term combined ratio | 84.2%
Sensitivities (EURm) |
Earned premiums CAGR >10 years (terminal growth) -1pp | -25
Long-term combined ratio +1pp | -10
Post-tax discount rate +1pp | -41

12 Investment property

EURm | 12/2023 | 12/2022
Net carrying amount at 1 January | 166 | 568
Additions | — | 17
Disposals | -166 | -375
Net gains and losses from fair value adjustments | — | 5
Other changes | 0 | -49
Exchange differences | 0 | 0
Net carrying amount at 31 December | 0 | 166

The disposals in the financial year include the investment property of Mandatum
Group, separated from Sampo on 1 October 2023. For further information, please see
note 32.
The premises in investment property for different segments are leased on market-
based, irrevocable contracts. The lengths of the contracts vary from those for the time
being to those for several years.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 86 |  |

13 Investments in associates and joint ventures
Associates and joint ventures that have been
accounted for by the equity method at 31 December
2023

EURm Name | Domicile | Carrying amount | Interest held %
Associates |  |  |
CAB Group AB | Sweden | 3 | 21.98
Rogaland Forsikring AS | Norway | 1 | 33.00
Bornholms Brandforsikring A/S | Denmark | 8 | 27.00

Associates and joint ventures that have been accounted
for by the equity method at 31 December 2022

EURm Name | Domicile | Carrying amount | Interest held %
Associates |  |  |
Precast Holding Oy | Finland | 4 | 24.43
CAB Group AB | Sweden | 3 | 21.98
Rogaland Forsikring AS | Norway | 1 | 33.00
Bornholms Brandforsikring A/S | Denmark | 7 | 27.00

Changes in investments in associates and in joint
ventures

EURm | 2023 | 2022
At 1 January | 16 | 777
Share of profit or loss | 1 | 22
Additions | — | 1
Disposals | -4 | -313
Changes in the equity of associates | — | -12
Exchange differences | — | -33
Reclassification as an investment at fair value through p/l | — | -425
At 31 December | 12 | 16

The carrying amount of investments in associates included goodwill of EUR - million (4).
The disposals in the financial year include the investments in associates of Mandatum
Group, separated from Sampo on 1 October 2023. For further information, please see
note 32.
Changes in holding of associate shares in 2022
NOBA Holding AB (former Nordax)
At the end of the financial year 2022 the associate shares in NOBA Holding were
reclassified to equity securities at fair value through profit or loss at the balance sheet
date, in accordance with IAS 39 Financial Instruments: Recognition and Measurement.
The valuation difference between the book value and fair value was recognised in the
income statement in other operating income.
Until the reclassification date, NOBA Holding was accounted for under IAS 28
Investments in associates and joint ventures. Other comprehensive income of EUR -37
million, recognised in earlier periods and remaining, was recycled to the income
statement at the reclassifcation.
Nordea
In April 2022, Sampo sold its remaining Nordea holding through an accelerated
bookbuild offering of 200 million shares. The sale of Nordea shares ended the
classification of shares as non-current assets held for sale.
The transactions in 2022 generated total gross proceeds of EUR 2.3 billion, of which
EUR 2.1 billion was raised in the second quarter. The positive accounting effect from
the transactions on Sampo’s consolidated statement of profit and loss was EUR 103
million, of which EUR 75 million was booked for the second quarter.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 87 |  |

14 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.

EURm | 12/2023 | 12/2022
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

The comparative period includes Mandatum Group’s figures. For further information, please see
note 32.
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 35.
Loans measured at amortised cost include Hastings’ loans to customers amounting to
EUR 186 million (75).
Financial assets measured at amortised cost by stages
The financial assets measured at amortised cost are in the scope of impairment. The
impairment model is based on a forward-looking expected credit loss model (ECL).
The expected credit loss model has a three-stage approach based on changes in
credit risk. A 12-month ECL (Stage 1) applies to all items, unless there is a significant
increase in credit risk since initial recognition. For items where there is a significant
increase in credit risk (Stage 2), or in default (Stage 3), lifetime ECL applies.
The determination of expected credit losses is described in detail in the section
Accounting principles. The next table presents the gross amounts of financial assets
measured at amortised cost and loss allowance by stages.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 88 |  |

12/2023 |  |  |  |
EURm | Stage 1 - 12-month ECL | Stage 2 - Lifetime ECL - not credit- impaired | Stage 3 - Lifetime ECL - credit- impaired | Total
Financial assets at amortised cost |  |  |  |
Loans | 451 | 8 | 7 | 466
Deposits | 1 | — | — | 1
Loss allowance | -9 | -1 | -5 | -16
Total | 442 | 6 | 2 | 451

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 P&L was EUR 10 million.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 89 |  |

Derivative financial instruments

|  | 2023 Fair value |  | 2022 Fair value
EURm | Contract/ Notional Amount | Assets | Liabilities | Contract/ Notional Amount | Assets | Liabilities
Derivatives held for trading |  |  |  |  |  |
Interest rate derivatives |  |  |  |  |  |
OTC derivatives |  |  |  |  |  |
Interest rate swaps | 340 | 3 | 44 | 394 | 5 | 45
Inflation cover | 211 | 16 | 12 | 274 | 22 | 3
Total interest rate derivatives | 551 | 18 | 56 | 668 | 27 | 48
Foreign exchange derivatives |  |  |  |  |  |
OTC derivatives |  |  |  |  |  |
Currency forwards | 3,032 | 18 | 57 | 5,092 | 58 | 6
Currency options, bought and sold | 53 | 1 | 1 | 31 | 4 | 2
Total foreign exchange derivatives | 3,085 | 20 | 58 | 5,123 | 62 | 7
Total derivatives held for trading | 3,636 | 38 | 114 | 5,791 | 89 | 55

|  | 2023 Fair value |  | 2022 Fair value
EURm | Contract/ Notional Amount | Assets | Liabilities | Contract/ Notional Amount | Assets | Liabilities
Derivatives held for hedging |  |  |  |  |  |
Fair value hedges |  |  |  |  |  |
Currency forwards | — | — | — | 328 | 12 | —
Total derivatives held for fair value hedging | — | — | — | 328 | 12 | —
Cash flow hedges |  |  |  |  |  |
Currency forwards | — | — | — | 6 | — | —
Interest rate swaps | 228 | — | 2 | — | — | —
Total cash flow hedges | 228 | — | 2 | 6 | — | —
Total derivatives held for hedging | 228 | — | 2 | 334 | 12 | —
Group financial derivatives, total | 3,864 | 38 | 116 | 6,124 | 101 | 55

Fair value hedges
During comparative period 2022 in Mandatum, fair value hedging was applied to
hedge a proportion of foreign exchange risk in available-for-sale financial assets. The
interest elements of foreign exchange forward contracts were excluded from hedging
relationships.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 90 |  |

15 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.
In 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.
In level 3, the measurement is based on other inputs
rather than observable market data. Sampo Group’s
level 3 assets consist mainly of a few larger equity
investments and investments in private equity and
alternative funds.
In level 3, the two most prominent equity investments
are valued by using excess return model, in which the
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.
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.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 91 |  |

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

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

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 92 |  |

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

EURm |  |  |  |  |
31 December 2022 | Carrying amount | Level 1 | Level 2 | Level 3 | Total
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

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 93 |  |

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

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 32.
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 32.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 94 |  |

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.

| 12/2023 | 12/2022
EURm | 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

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.

| Interest rate | Interest rate | Equity | Other financial assets
EURm | 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

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 95 |  |

16 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
Financial assets at fair value through profit or loss |  |  |  |  |
Debt securities | 134 | 1 | 11 | -126 | 19
Equity securities | 763 | -14 | 9 | -28 | 730
Funds | 212 | -61 | — | — | 151
Total | 1,109 | -74 | 20 | -155 | 900

Mandatum Group’s financial instruments on level 3 are not included in the opening balance 1 January 2023. For further information on classification of Mandatum Group as
discontinued operation, please see note 32.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 96 |  |

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 | Settlements | 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 profit or loss |  |  |  |  |  |  |  |  |  |
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 profit or loss. The comparative
period includes Mandatum Group’s figures. For further information, please see note 32.

| 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

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 97 |  |

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 32.
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.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 98 |  |

17 Deferred tax assets and liabilities
Changes in deferred tax during the financial year 2023

EURm | 1 Jan | Business acquisitions/ disposals | Recognised in comprehensive income statement | Recognised in equity | Exchange differences | 31 Dec
Deferred tax assets |  |  |  |  |  |
Tax losses carried forward | 2 | 0 | -1 | — | 0 | 1
Changes in fair values | 5 | — | -5 | — | 0 | 0
Other deductible temporary differences | 128 | -3 | -11 | 0 | 2 | 116
Total | 135 | -3 | -17 | — | 2 | 117
Netting of deferred taxes |  |  |  |  |  | -114
Deferred tax assets in the balance sheet, total | 135 | -3 | -17 | 0 | 2 | 3
Deferred tax liabilities |  |  |  |  |  |
Depreciation differences and untaxed reserves | 209 | -2 | 21 | — | -4 | 224
Changes in fair values | 194 | -70 | 67 | 0 | 2 | 194
Pension assets | 7 | — | -1 | — | — | 7
Other taxable temporary differences | 379 | -93 | -32 | 0 | 1 | 255
Total | 790 | -164 | 56 | 0 | -1 | 680
Netting of deferred taxes |  |  |  |  |  | -114
Deferred tax liabilities in the balance sheet, total | 790 | -164 | 56 | 0 | -1 | 567

The disposals include the deferred tax assets and liabilities of Mandatum Group, separated from Sampo on 1 October 2023. For further information, please see note 32.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 99 |  |

Changes in deferred tax during the financial year 2022

EURm | 1 Jan | Business acquisitions/ disposals | Recognised in comprehensive income statement | Recognised in equity | Exchange differences | 31 Dec
Deferred tax assets |  |  |  |  |  |
Tax losses carried forward | 2 | — | 0 | 0 | 0 | 2
Changes in fair values | 6 | — | 0 | — | 0 | 5
Other deductible temporary differences | 141 | 1 | -6 | 0 | -7 | 128
Total | 148 | 1 | -6 | 0 | -8 | 135
Netting of deferred taxes |  |  |  |  |  | -124
Deferred tax assets in the balance sheet, total | 148 | 1 | -6 | 0 | -8 | 11
Deferred tax liabilities |  |  |  |  |  |
Depreciation differences and untaxed reserves | 219 | 0 | -7 | 7 | -10 | 209
Changes in fair values | 513 | 7 | -307 | — | -18 | 194
Pension assets | — | — | 7 | — | — | 7
Other taxable temporary differences | 226 | -19 | 175 | 1 | -4 | 379
Total | 957 | -12 | -131 | 9 | -33 | 790
Netting of deferred taxes |  |  |  |  |  | -124
Deferred tax liabilities in the balance sheet, total | 957 | -12 | -131 | 9 | -33 | 666

The line items in deferred tax assets and liabilities for the comparison year 2022 have been restated due to the transition to IFRS 17.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 100 |  |

Pillar II - tax losses
Sampo Group companies have applied a temporary mandatory relief from deferred tax accounting for any impacts of the top-up tax and accounts for it as a current tax should it
occur.

EURm |  |  |  |  |  |  |  |
Tax losses carried forward 2023 | Country | Tax losses carried forward in local currency | Tax losses carried forward | Of which no deferred tax asset has been recognised | Of which deferred tax asset has been recognised | Recognised deferred tax asset | Applicable tax rate | Potential deferred tax asset not recognised
Sampo Plc | Finland | EURm 267 | 267 | 267 | — | — | 20.00% | 53
If P&C Insurance Holding Ltd (publ) | Norway | NOKm 83 | 7 | 7 | — | — | 22.00% | -*
If P&C Insurance Ltd (publ) | Germany | EURm 2 | 2 | 2 | — | — | 27.38% | -*
If P&C Insurance Ltd (publ) | France | EURm 16 | 16 | 16 | — | — | 25.83% | -*
If P&C Insurance Ltd (publ) | UK | GBPm 20 | 23 | 23 | — | — | 25.00% | -*
If P&C Insurance AS | Latvia | — | — | — | — | — | 20.00% | -
Insrt AB | Sweden | SEKm 6 | 1 | 1 | — | — | 20.60% | —
Viking Sverige AB | Sweden | SEKm 42 | 4 | — | 4 | 1 | 20.60% | —
Viking Assistance A/S | Denmark | DKKm 33 | 4 | 4 | — | — | 22.00% | 1
Viking Nordic Assistance S.L | Spain | — | — | — | — | — | 25.00% | —
Hastings Group Finance plc | UK | GBPm 7 | 8 | 8 | — | — | 25.00% | 2
Total |  |  |  |  |  | 1 |  | 56

* Lo ss has occurred in a foreign branch and has been deducted in the head office. Utilisation of the loss locally in the foreign branch would not affect the tax expense for the company as a whole. Therefore,
no deferred tax asset can be recognised relating to the foreign branch.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 101 |  |

MEUR |  |  |  |  |  |  |  |
Tax losses carried forward 2022 | Country | Tax losses carried forward in local currency | Tax losses carried forward | Of which no deferred tax asset has been recognised | Of which deferred tax asset has been recognised | Recognised deferred tax asset | Applicable tax rate | Potential deferred tax asset not recognised
Sampo Plc | Finland | EURm 172 | 172 | 172 | — | — | 20.00% | 34
If P&C Insurance Holding Ltd (publ) | Norway | — | — | — | — | — | 22.00% | -*
If P&C Insurance Ltd (publ) | Germany | EURm 5 | 5 | 5 | — | — | 27.38% | -*
If P&C Insurance Ltd (publ) | France | EURm 24 | 24 | 24 | — | — | 25.83% | -*
If P&C Insurance Ltd (publ) | UK | GBPm 25 | 28 | 28 | — | — | 25.00% | -*
If P&C Insurance AS | Latvia | EURm 3 | 3 | 3 | — | — | 20.00% | 1
Insrt AB | Sweden | SEKm 6 | 1 | 1 | — | — | 20.60% | —
Viking Sverige AB | Sweden | SEKm 22 | 2 | — | 2 | — | 20.60% | —
Viking Assistance A/S | Denmark | DKKm 33 | 4 | 4 | — | — | 22.00% | 1
Viking Nordic Assistance S.L | Spain | EURm 0 | — | — | — | — | 25.00% | —
Hastings Group Finance plc | UK | GBPm 7 | 8 | 8 | — | — | 25.00% | 2
Total |  |  |  |  |  | — |  | 38

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 102 |  |

18 Taxes

EURm | 2023 | 2022
Profit before tax | 1,481 | 1,924
Tax calculated at parent company's tax rate | -296 | -385
Different tax rates in foreign jurisdictions | -40 | -153
Income from associates not subject to tax | 0 | 21
Income not subject to tax | 46 | 49
Non-deductible expenses | -40 | -17
Tax losses for which no deferred tax asset has been recognised | -36 | -28
Changes in tax rates | -8 | 2
Tax from previous years | 2 | 5
Total | -372 | -505

The taxes include the tax from the discontinued operations EUR -33 million (-139).
19 Other assets

EURm | 12/2023 | 12/2022
Assets arising from direct insurance operations | 245 | 213
Assets arising from reinsurance operations | 92 | 22
Settlement receivables | 5 | 83
Accrued interest | 130 | 113
Net pension asset | 32 | 34
Other | 296 | 310
Total other asset | 800 | 775

Item Other includes, e.g. assets related to patient insurance pool EUR 63 million (68),
other receivables, prepaid expenses and damaged goods.
Other assets include non-current assets EUR 61 million (65).

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 103 |  |

20 Insurance contract liabilities
Insurance liabilities reflect the liability the Group has for its insurance undertakings,
meaning 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.
For further information on accounting principles related to insurance contract
liabilities, please see the section Accounting principles.

EURm | 12/2023 | 12/2022
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
Reinsurance contract assets |  |
Assets for remaining coverage | 258 | 221
Assets for incurred claims | 2,024 | 1,600
Reinsurance contract assets, total | 2,282 | 1,821
Total insurance contracts, net of reinsurance | 9,434 | 14,389

The comparative period includes Mandatum Group’s figures. For further information, please see
note 32.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 104 |  |

21 Reconciliation of insurance contract liabilities
Insurance contracts
The first table presents the reconciliation of the carrying
amounts of the liability for remaining coverage and the
liability for incurred claims for issued insurance
contracts during the reporting period as a result of
amounts recognized in the statement of total
comprehensive income and cash flows.
Reinsurance contracts
Following table presents the reconciliation of the
carrying amounts of the asset for remaining coverage
and the asset for incurred claims for reinsurance
contracts during the reporting period as a result of
amounts recognized in the statement of profit and
other comprehensive income and cash flows.
Information is presented on Sampo Group level and on
the reporting segment level. Information regarding
insurance contract liability is presented on contracts
measured under PAA model.
Mandatum Group’s figures are not included in the
reconciliation tables as Mandatum is reported as
disposal group held for distribution to owners.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 105 |  |

Sampo Group - Insurance contract liabilities, gross at 31 December 2023 and 31 December 2022

| 2023 | 2022
| Liabilities for remaining coverage | Liabilities for incurred claims |  | Liabilities for remaining coverage | Liabilities for incurred claims |
EURm | Excluding loss component | Loss component | Estimates of present value of future cash flows | Risk adjustment for non- financial risk | Total | Excluding loss component | Loss component | Estimates of present value of future cash flows | Risk adjustment for non- financial risk | Total
Opening balance | 1,499 | 14 | 8,931 | 444 | 10,889 | 1,504 | 28 | 9,686 | 477 | 11,695
Changes in the statement of comprehensive income |  |  |  |  |  |  |  |  |  |
Insurance revenue | -8,417 | — | — | — | -8,417 | -8,062 | — | — | — | -8,062
Insurance service expenses |  |  |  |  |  |  |  |  |  |
Incurred claims and other insurance service expenses | — | — | 6,503 | 154 | 6,657 | — | — | 5,897 | 151 | 6,047
Amortisation of insurance acquisition cash flows | 223 | — | — | — | 223 | 213 | — | — | — | 213
Changes that relate to past service (LIC) | — | — | -395 | -145 | -540 | — | — | -71 | -163 | -234
Changes that relate to future service (LRC) | — | 12 | — | — | 12 | — | -12 | — | — | -12
Total insurance service expenses | 223 | 12 | 6,108 | 9 | 6,351 | 213 | -12 | 5,826 | -13 | 6,014
Insurance service result | -8,195 | 12 | 6,108 | 9 | -2,066 | -7,849 | -12 | 5,826 | -13 | -2,048
Insurance finance income or expense | — | — | 529 | — | 529 | -1 | — | -826 | — | -827
Other items (including FX effects) | -185 | — | 91 | 4 | -89 | 244 | -1 | -475 | -20 | -252
Total changes in the statement of comprehensive income | -8,379 | 12 | 6,728 | 13 | -1,626 | -7,606 | -14 | 4,525 | -32 | -3,127
Cash flows during the period |  |  |  |  |  |  |  |  |  |
Premiums received | 8,785 | — | — | — | 8,785 | 7,808 | — | — | — | 7,808
Claims and other insurance service expenses paid | — | — | -6,111 | — | -6,111 | — | — | -5,280 | — | -5,280
Insurance acquisition cash flows paid | -221 | — | — | — | -221 | -207 | — | — | — | -207
Total cash flows during the period | 8,564 | — | -6,111 | — | 2,453 | 7,601 | — | -5,280 | — | 2,321
Transfer to other items in the balance sheet | 17 | — | — | 1 | 18 | — | — | — | — | —
Closing balance - liabilities relating to insurance contracts | 1,701 | 27 | 9,547 | 459 | 11,734 | 1,499 | 14 | 8,931 | 444 | 10,889
Acquisition cash flow asset |  |  |  |  | -18 |  |  |  |  | —
Closing balance |  |  |  |  | 11,716 |  |  |  |  | 10,889

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 106 |  |

Sampo Group - Reinsurance contracts at 31 December 2023 and 31 December 2022

| 2023 | 2022
| Assets for remaining coverage | Assets for incurred claims |  | Assets for remaining coverage | Assets for incurred claims |
EURm |  | Estimates of present value of future cash flows | Risk adjustment for non- financial risk | Total |  | Estimates of present value of future cash flows | Risk adjustment for non- financial risk | Total
Opening assets | 221 | 1,384 | 215 | 1,820 | 251 | 1,523 | 232 | 2,007
Changes in the statement of comprehensive income |  |  |  |  |  |  |  |
Allocation of reinsurance premiums paid | -1,005 | — | — | -1,005 | -894 | — | — | -894
Amounts recoverable from reinsurers |  |  |  |  |  |  |  |
Recoveries of incurred claims and other insurance service expenses | — | 935 | 72 | 1,007 | — | 600 | 67 | 667
Adjustments to assets for incurred claims | — | -80 | -70 | -150 | — | 155 | -73 | 82
Effect of changes in non-performance risk of reinsurers | — | — | — | — | — | — | — | —
Net expenses from reinsurance contracts | -1,005 | 855 | 2 | -148 | -894 | 756 | -6 | -144
Insurance finance income or expenses from reinsurance contracts | — | 83 | — | 83 | — | -90 | — | -90
Effect of movements in exchange rates | -8 | 31 | 4 | 26 | 22 | -85 | -11 | -75
Total changes in the statement of comprehensive income | -1,014 | 969 | 6 | -39 | -872 | 580 | -17 | -310
Cash flows |  |  |  |  |  |  |  |
Premiums paid | 1,051 | — | — | 1,051 | 842 | — | — | 842
Amounts received | — | -550 | — | -550 | — | -719 | — | -719
Total cash flows | 1,051 | -550 | — | 501 | 842 | -719 | — | 123
Closing assets | 258 | 1,803 | 220 | 2,282 | 221 | 1,384 | 215 | 1,820

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 107 |  |

If - Insurance contract liabilities, gross at 31 December 2023 and 31 December 2022

| 2023 | 2022
| Liabilities for remaining coverage | Liabilities for incurred claims |  | Liabilities for remaining coverage | Liabilities for incurred claims |
EURm | Excluding loss component | Loss component | Estimates of present value of future cash flows | Risk adjustment for non- financial risk | Total | Excluding loss component | Loss component | Estimates of present value of future cash flows | Risk adjustment for non- financial risk | Total
Opening balance - liabilities relating to insurance contracts | 868 | 7 | 5,655 | 162 | 6,693 | 873 | 25 | 6,230 | 172 | 7,301
Changes in the statement of comprehensive income |  |  |  |  |  |  |  |  |  |
Insurance revenue | -5,330 | — | — | — | -5,330 | -5,322 | — | — | — | -5,322
Insurance service expenses |  |  |  |  |  |  |  |  |  |
Incurred claims and other insurance service expenses | — | — | 3,924 | 58 | 3,981 | — | — | 3,570 | 52 | 3,621
Amortisation of insurance acquisition cash flows | 100 | — | — | — | 100 | 102 | — | — | — | 102
Changes that relate to past service (LIC) | — | — | -184 | -43 | -228 | — | — | 118 | -56 | 62
Changes that relate to future service (LRC) | — | 10 | — | — | 10 | — | -17 | — | — | -17
Total insurance service expenses | 100 | 10 | 3,739 | 14 | 3,863 | 102 | -17 | 3,688 | -4 | 3,769
Insurance service result | -5,230 | 10 | 3,739 | 14 | -1,467 | -5,220 | -17 | 3,688 | -4 | -1,553
Insurance finance income or expense | — | — | 340 | — | 340 | — | — | -619 | — | -619
Other items (including FX effects) | -191 | — | 57 | -2 | -135 | 211 | -1 | -333 | -6 | -130
Total changes in the statement of comprehensive income | -5,420 | 10 | 4,136 | 13 | -1,261 | -5,009 | -18 | 2,735 | -10 | -2,302
Cash flows during the period |  |  |  |  |  |  |  |  |  |
Premiums received | 5,572 | — | — | — | 5,572 | 5,102 | — | — | — | 5,102
Claims and other insurance service expenses paid | — | — | -3,754 | — | -3,754 | — | — | -3,311 | — | -3,311
Insurance acquisition cash flows paid | -108 | — | — | — | -108 | -98 | — | — | — | -98
Total cash flows during the period | 5,463 | — | -3,754 | — | 1,710 | 5,004 | — | -3,311 | — | 1,693
Transfer to other items in the balance sheet |  |  |  |  |  |  |  |  |  |
Closing balance - liabilities relating to insurance contracts | 911 | 17 | 6,038 | 175 | 7,141 | 868 | 7 | 5,655 | 162 | 6,693
Acquisition cash flow asset |  |  |  |  | -7 |  |  |  |  | —
Closing balance - Insurance contract liabilities |  |  |  |  | 7,134 |  |  |  |  | 6,693

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 108 |  |

If - Reinsurance contracts at 31 December 2023 and 31 December 2022

| 2023 | 2022
| Assets for remaining coverage | Assets for incurred claims |  | Assets for remaining coverage | Assets for incurred claims |
EURm |  | Estimates of present value of future cash flows | Risk adjustment for non- financial risk | Total |  | Estimates of present value of future cash flows | Risk adjustment for non- financial risk | Total
Opening assets | 28 | 226 | 10 | 264 | 23 | 242 | 11 | 276
Changes in the statement of comprehensive income |  |  |  |  |  |  |  |
Allocation of reinsurance premiums paid | -334 | — | — | -334 | -299 | — | — | -298
Amounts recoverable from reinsurers |  |  |  |  |  |  |  |
Recoveries of incurred claims and other insurance service expenses | — | 339 | 10 | 348 | — | 84 | 3 | 87
Adjustments to assets for incurred claims | — | 41 | -3 | 38 | — | 34 | -4 | 30
Effect of changes in non-performance risk of reinsurers | — | — | — | — | — | — | — | —
Net expenses from reinsurance contracts | -334 | 380 | 7 | 52 | -299 | 118 | -1 | -181
Insurance finance income or expenses from reinsurance contracts | — | 8 | — | 8 | — | -9 | — | -9
Effect of movements in exchange rates | -12 | 8 | 0 | -4 | 13 | -2 | 0 | 11
Total changes in the statement of comprehensive income | -346 | 396 | 7 | 57 | -285 | 107 | -1 | -179
Cash flows |  |  |  |  |  |  |  |
Premiums paid | 354 | — | — | 354 | 291 | — | — | 291
Amounts received | — | -112 | — | -112 | 0 | -123 | — | -123
Total cash flows | 354 | -112 | — | 242 | 291 | -123 | — | 167
Closing assets | 36 | 510 | 17 | 563 | 28 | 226 | 10 | 264

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 109 |  |

Topdanmark - Insurance contract liabilities, gross at 31 December 2023 and 31 December 2022

| 2023 | 2022
| Liabilities for remaining coverage | Liabilities for incurred claims |  | Liabilities for remaining coverage | Liabilities for incurred claims |
EURm | Excluding loss component | Loss component | Estimates of present value of future cash flows | Risk adjustment for non- financial risk | Total | Excluding loss component | Loss component | Estimates of present value of future cash flows | Risk adjustment for non- financial risk | Total
Opening balance - liabilities relating to insurance contracts | 285 | 2 | 1,441 | 35 | 1,763 | 303 | 1 | 1,529 | 40 | 1,872
Changes in the statement of comprehensive income |  |  |  |  |  |  |  |  |  |
Insurance revenue | -1,369 | — | — | — | -1,369 | -1,330 | — | — | — | -1,330
Insurance service expenses |  |  |  |  |  |  |  |  |  |
Incurred claims and other insurance service expenses | — | — | 1,093 | 15 | 1,108 | — | — | 1,015 | 17 | 1,031
Amortisation of insurance acquisition cash flows | 31 | — | — | — | 31 | 33 | — | — | — | 33
Changes that relate to past service (LIC) | — | — | -27 | -16 | -43 | — | — | -25 | -21 | -46
Changes that relate to future service (LRC) | 0 | 1 | 0 | — | 1 | 0 | 1 | 0 | 0 | 1
Total insurance service expenses | 31 | 1 | 1,066 | -1 | 1,097 | 33 | 1 | 989 | -5 | 1,018
Insurance service result | -1,337 | 1 | 1,066 | -1 | -272 | -1,298 | 1 | 989 | -5 | -312
Insurance finance income or expense | — | — | 81 | — | 81 | -1 | — | -116 | — | -117
Other items (including FX effects) | — | — | -5 | 1 | -4 | -1 | — | — | — | —
Total changes in the statement of comprehensive income | -1,337 | 1 | 1,142 | — | -194 | -1,299 | 1 | 874 | -5 | -429
Cash flows during the period |  |  |  |  |  |  |  |  |  |
Premiums received | 1,336 | — | — | — | 1,336 | 1,314 | — | — | — | 1,314
Claims and other insurance service expenses paid | — | — | -1,038 | — | -1,038 | — | — | -961 | — | -961
Insurance acquisition cash flows paid | -18 | — | — | — | -18 | -33 | — | — | — | -33
Total cash flows during the period | 1,318 | — | -1,038 | — | 280 | 1,281 | — | -961 | — | 320
Transfer to other items in the balance sheet | 17 | — | — | 1 | 18 | — | — | — | — | —
Closing balance - liabilities relating to insurance contracts | 282 | 2 | 1,546 | 37 | 1,867 | 285 | 2 | 1,441 | 35 | 1,763
Acquisition cash flow asset |  |  |  |  | -12 |  |  |  |  | —
Closing balance - liabilities relating to insurance contracts |  |  |  |  | 1,855 |  |  |  |  | 1,763

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 110 |  |

Topdanmark - Reinsurance contracts at 31 December 2023 and 31 December 2022

| 2023 | 2022
| Assets for remaining coverage | Assets for incurred claims |  | Assets for remaining coverage | Assets for incurred claims |
EURm |  | Estimates of present value of future cash flows | Risk adjustment for non- financial risk | Total |  | Estimates of present value of future cash flows | Risk adjustment for non- financial risk | Total
Opening assets | -2 | 80 | 1 | 79 | 3 | 83 | 2 | 88
Changes in the statement of comprehensive income |  |  |  |  |  |  |  |
Allocation of reinsurance premiums paid | -80 | — | — | -80 | -75 | — | — | -75
Amounts recoverable from reinsurers |  |  |  |  |  |  |  |
Recoveries of incurred claims and other insurance service expenses | — | 49 | — | 49 | — | 44 | — | 44
Adjustments to assets for incurred claims | — | 1 | — | 1 | — | -5 | — | -5
Effect of changes in non-performance risk of reinsurers | — | — | — | — | — | — | — | —
Net expenses from reinsurance contracts | -80 | 49 | — | -31 | -75 | 39 | — | -37
Insurance finance income or expenses from reinsurance contracts | — | 2 | — | 2 | 0 | -2 | — | -2
Effect of movements in exchange rates | — | — | — | 0 | 0 | 0 | — | 0
Total changes in the statement of comprehensive income | -80 | 51 | 0 | -29 | -75 | 37 | — | -39
Cash flows |  |  |  |  |  |  |  |
Premiums paid | 82 | — | — | 82 | 70 | — | — | 70
Amounts received | 0 | -54 | 0 | -54 | 0 | -39 | — | -39
Total cash flows | 82 | -54 | 0 | 28 | 70 | -39 | — | 30
Closing assets | -1 | 78 | 1 | 79 | -2 | 80 | 1 | 79

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 111 |  |

Hastings - Insurance contract liabilities, gross at 31 December 2023 and 31 December 2022

| 2023 | 2022
| Liabilities for remaining coverage | Liabilities for incurred claims |  | Liabilities for remaining coverage | Liabilities for incurred claims |
EURm | Excluding loss componen t | Loss componen t | Estimates of present value of future cash flows | Risk adjustment for non- financial risk | Total | Excluding loss componen t | Loss componen t | Estimates of present value of future cash flows | Risk adjustment for non- financial risk | Total
Opening balance - liabilities relating to insurance contracts | 347 | 5 | 1,835 | 247 | 2,434 | 328 | 3 | 1,927 | 265 | 2,522
Changes in the statement of profit or loss |  |  |  |  |  |  |  |  |  |
Insurance revenue | -1,719 | — | — | — | -1,719 | -1,409 | — | — | — | -1,409
Insurance service expenses |  |  |  |  |  |  |  |  |  |
Incurred claims and other insurance service expenses | — | — | 1,486 | 81 | 1,568 | — | — | 1,312 | 82 | 1,394
Amortisation of insurance acquisition cash flows | 92 | — | — | — | 92 | 79 | — | — | — | 79
Changes that relate to past service (LIC) | — | — | -184 | -86 | -269 | — | — | -163 | -86 | -250
Changes that relate to future service (LRC) | 0 | 2 | 0 | 0 | 2 | 0 | 3 | 0 | 0 | 3
Total insurance service expenses | 92 | 2 | 1,303 | -4 | 1,391 | 79 | 3 | 1,149 | -4 | 1,226
Insurance service result | -1,628 | 2 | 1,303 | -4 | -328 | -1,331 | 3 | 1,149 | -4 | -183
Insurance finance income or expense | — | — | 108 | — | 108 | — | — | -91 | — | -91
Other items (including FX effects) | 6 | — | 39 | 5 | 50 | 34 | — | -142 | -14 | -122
Total changes in the statement of profit or loss | -1,622 | 2 | 1,449 | 1 | -170 | -1,297 | 3 | 916 | -18 | -396
Cash flows during the period |  |  |  |  |  |  |  |  |  |
Premiums received | 1,877 | — | — | — | 1,877 | 1,393 | — | — | — | 1,393
Claims and other insurance service expenses paid | — | — | -1,320 | — | -1,320 | — | — | -1,008 | — | -1,008
Insurance acquisition cash flows paid | -95 | — | — | — | -95 | -77 | — | — | — | -77
Total cash flows during the period | 1,782 | — | -1,320 | 0 | 462 | 1,316 | — | -1,008 | — | 308
Transfer to other items in the balance sheet | — | — | — | — | — | — | — | — | — | —
Closing balance - liabilities relating to insurance contracts | 508 | 7 | 1,964 | 247 | 2,726 | 347 | 5 | 1,835 | 247 | 2,434
Closing balance - liabilities relating to insurance contracts |  |  |  |  | 2,726 |  |  |  |  | 2,434

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 112 |  |

Hastings - Reinsurance contracts at 31 December 2023 and 31 December 2022

| 2023 | 2022
| Assets for remaining coverage | Assets for incurred claims |  | Assets for remaining coverage | Assets for incurred claims |
EURm |  | Estimates of present value of future cash flows | Risk adjustment for non- financial risk | Total |  | Estimates of present value of future cash flows | Risk adjustment for non- financial risk | Total
Opening assets | 195 | 1,078 | 203 | 1,477 | 225 | 1,198 | 219 | 1,643
Changes in the statement of comprehensive income |  |  |  |  |  |  |  |
Allocation of reinsurance premiums paid | -591 | — | — | -591 | -520 | — | — | -520
Amounts recoverable from reinsurers |  |  |  |  |  |  |  |
Recoveries of incurred claims and other insurance service expenses | — | 548 | 62 | 610 | — | 473 | 64 | 537
Adjustments to assets for incurred claims | — | -121 | -67 | -188 | — | 126 | -69 | 57
Effect of changes in non-performance risk of reinsurers | — | — | — | — | — | — | — | —
Net expenses from reinsurance contracts | -591 | 426 | -5 | -170 | -520 | 599 | -5 | 73
Insurance finance income or expenses from reinsurance contracts | — | 73 | — | 73 | — | -80 | — | -80
Effect of movements in exchange rates | 4 | 22 | 4 | 30 | 8 | -83 | -11 | -86
Total changes in the statement of comprehensive income | -588 | 521 | -1 | -68 | -512 | 436 | -16 | -92
Cash flows |  |  |  |  |  |  |  |
Premiums paid | 615 | — | — | 615 | 482 | — | — | 482
Amounts received | — | -384 | — | -384 | — | -556 | — | -556
Total cash flows | 615 | -384 | — | 231 | 482 | -556 | — | -74
Closing assets | 223 | 1,215 | 202 | 1,640 | 195 | 1,078 | 203 | 1,477

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 113 |  |

22 Assets for insurance acquisition cash flows
The table presents the reconciliation from opening to closing balances of the carrying
amount of the acquisition cash flow asset during the reporting periods.

EURm | 2023
Reconciliation of acquisition cash flow asset |
Opening balance | 10
Cash flows recognised as an asset | 36
Amounts transferred to liability for remaining coverage | -28
Closing balance | 18

The table does not include Mandatum Group’s figures.
The following table presents the expected timing of when the acquisition cash flow
asset will be derecognised and instead be included in the liability for remaining
coverage of the group of insurance contracts to which they are allocated.
Time bands: Assets for insurance acquisition cash flows

2023 | Expected timing of derecognition |
EURm | 2024 | 2025-2026 | 2027-2028 | Total
Acquisition cash flow asset | 12 | 4 | 2 | 18

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 114 |  |

23 Non-life claims development
Prior-year estimates of the claims expense for individual
claims years also represent a measure of Sampo
Group’s and its reporting segment’s ability to foresee
final claims expenses. The following tables present the
expense trend for the claims for individual claims in the
years before and after reinsurance. For accident years
2013 and earlier, the information is aggregated to one
row. Information is presented on Sampo Group level
and on the reporting segment level.
The upper part of the table shows how an estimate of
the total claims expense per accident year evolves
annually relating to the undiscounted fulfilment cash
flows (i.e. consisting of both best estimate and risk
adjustment). The lower section shows how large a share
of this is presented in the balance sheet. More
information on insurance liabilities is in the risk
management note 37.
Since Sampo Group’s group companies have operations
in various countries, their portfolios are exposed to a
number of currencies. To adjust for currency effects, the
local reporting currency has been translated to EUR at
the closing rate on 31 December 2023. Consequently,
the table is not directly comparable with the
corresponding tables reported in previous years, since
all accident years include translated information and
closing rates are used throughout. The table is not
directly comparable with the income statement either
where average rates throughout the year are applied,
and since the effect is partially presented in claims
incurred and partially within insurance finance income
or expense when relating to changes in indexation of
annuities.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 115 |  |

Sampo Group - Claims development before reinsurance

EURm |  |  |  |  |  |  |  |  |  |  |
Claims expense, gross Accident year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Total
Estimated claims expense |  |  |  |  |  |  |  |  |  |  |
at the close of the claims year | 3,838 | 3,928 | 4,072 | 4,192 | 4,424 | 4,667 | 4,748 | 4,914 | 5,451 | 6,412 |
one year later | 3,837 | 3,995 | 4,131 | 4,188 | 4,508 | 4,683 | 4,692 | 5,006 | 5,480 |  |
two years later | 3,851 | 3,970 | 4,086 | 4,178 | 4,547 | 4,729 | 4,687 | 4,912 |  |  |
three years later | 3,857 | 3,937 | 4,052 | 4,177 | 4,583 | 4,717 | 4,615 |  |  |  |
four years later | 3,868 | 3,899 | 3,950 | 4,152 | 4,562 | 4,674 |  |  |  |  |
five years later | 3,793 | 3,858 | 3,992 | 4,127 | 4,505 |  |  |  |  |  |
six years later | 3,735 | 3,853 | 3,967 | 4,102 |  |  |  |  |  |  |
seven years later | 3,736 | 3,860 | 3,950 |  |  |  |  |  |  |  |
eight years later | 3,732 | 3,827 |  |  |  |  |  |  |  |  |
nine years later | 3,708 |  |  |  |  |  |  |  |  |  |
ten years later |  |  |  |  |  |  |  |  |  |  |
Current estimate of total claims expense | 3,708 | 3,827 | 3,950 | 4,102 | 4,505 | 4,674 | 4,615 | 4,912 | 5,480 | 6,412 |
Total disbursed | 3,516 | 3,612 | 3,671 | 3,801 | 4,095 | 4,117 | 3,889 | 3,831 | 3,907 | 3,017 |
Liability (gross) reported in the balance sheet | 192 | 215 | 279 | 301 | 410 | 558 | 725 | 1,081 | 1,572 | 3,394 | 8,727
Liability (gross) relating to 2013 and prior years |  |  |  |  |  |  |  |  |  |  | 2,933
Discounting effect, gross |  |  |  |  |  |  |  |  |  |  | -2,034
Liability for claims handling expenses and other items |  |  |  |  |  |  |  |  |  |  | 380
Total liability for incurred claims |  |  |  |  |  |  |  |  |  |  | 10,007

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 116 |  |

Sampo Group - Claims development after reinsurance

EURm |  |  |  |  |  |  |  |  |  |  |
Claims expense, net of reinsurance Accident year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Total
Estimated claims expense |  |  |  |  |  |  |  |  |  |  |
at the close of the claims year | 3,509 | 3,544 | 3,515 | 3,597 | 3,805 | 4,002 | 3,999 | 4,089 | 4,657 | 5,287 |
one year later | 3,508 | 3,571 | 3,527 | 3,620 | 3,866 | 3,998 | 3,916 | 4,094 | 4,675 |  |
two years later | 3,501 | 3,546 | 3,511 | 3,603 | 3,907 | 4,023 | 3,901 | 4,038 |  |  |
three years later | 3,509 | 3,532 | 3,474 | 3,617 | 3,950 | 4,053 | 3,875 |  |  |  |
four years later | 3,494 | 3,485 | 3,445 | 3,601 | 3,948 | 4,033 |  |  |  |  |
five years later | 3,434 | 3,472 | 3,462 | 3,610 | 3,911 |  |  |  |  |  |
six years later | 3,393 | 3,463 | 3,462 | 3,584 |  |  |  |  |  |  |
seven years later | 3,392 | 3,480 | 3,431 |  |  |  |  |  |  |  |
eight years later | 3,396 | 3,453 |  |  |  |  |  |  |  |  |
nine years later | 3,371 |  |  |  |  |  |  |  |  |  |
ten years later |  |  |  |  |  |  |  |  |  |  |
Current estimate of total claims expense | 3,371 | 3,453 | 3,431 | 3,584 | 3,911 | 4,033 | 3,875 | 4,038 | 4,675 | 5,287 |
Total disbursed | 3,187 | 3,250 | 3,224 | 3,341 | 3,564 | 3,614 | 3,348 | 3,310 | 3,519 | 2,823 |
Liability (net) reported in the balance sheet | 184 | 203 | 206 | 243 | 347 | 419 | 528 | 728 | 1,156 | 2,464 | 6,478
Liability (net) relating to 2013 and prior years |  |  |  |  |  |  |  |  |  |  | 2,768
Discounting effect, gross |  |  |  |  |  |  |  |  |  |  | -1,626
Liability for claims handling expenses |  |  |  |  |  |  |  |  |  |  | 349
Risk of non-performance by reinsurer |  |  |  |  |  |  |  |  |  |  | 15
Total liability for incurred claims |  |  |  |  |  |  |  |  |  |  | 7,983

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 117 |  |

If - Claims development before reinsurance

EURm |  |  |  |  |  |  |  |  |  |  |
Claims expense, gross Accident year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Total
Estimated claims expense |  |  |  |  |  |  |  |  |  |  |
at the close of the claims year | 2,580 | 2,583 | 2,534 | 2,608 | 2,743 | 2,869 | 3,005 | 2,991 | 3,293 | 3,945 |
one year later | 2,568 | 2,597 | 2,565 | 2,645 | 2,836 | 2,912 | 3,043 | 3,128 | 3,383 |  |
two years later | 2,573 | 2,581 | 2,559 | 2,631 | 2,864 | 2,926 | 3,083 | 3,099 |  |  |
three years later | 2,585 | 2,555 | 2,515 | 2,634 | 2,881 | 2,969 | 3,048 |  |  |  |
four years later | 2,588 | 2,523 | 2,502 | 2,605 | 2,897 | 2,959 |  |  |  |  |
five years later | 2,552 | 2,517 | 2,511 | 2,613 | 2,865 |  |  |  |  |  |
six years later | 2,522 | 2,501 | 2,515 | 2,587 |  |  |  |  |  |  |
seven years later | 2,511 | 2,510 | 2,484 |  |  |  |  |  |  |  |
eight years later | 2,508 | 2,490 |  |  |  |  |  |  |  |  |
nine years later | 2,488 |  |  |  |  |  |  |  |  |  |
ten years later |  |  |  |  |  |  |  |  |  |  |
Current estimate of total claims expense | 2,488 | 2,490 | 2,484 | 2,587 | 2,865 | 2,959 | 3,048 | 3,099 | 3,383 | 3,945 |
Total disbursed | 2,345 | 2,330 | 2,306 | 2,397 | 2,601 | 2,659 | 2,682 | 2,591 | 2,577 | 1,905 |
Liability (gross) reported in the balance sheet | 144 | 160 | 178 | 190 | 264 | 300 | 367 | 508 | 807 | 2,040 | 4,958
Liability (gross) relating to 2013 and prior years |  |  |  |  |  |  |  |  |  |  | 2,474
Discounting effect, gross |  |  |  |  |  |  |  |  |  |  | -1,471
Liability for claims handling expenses |  |  |  |  |  |  |  |  |  |  | 252
Total liability for incurred claims |  |  |  |  |  |  |  |  |  |  | 6,213

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 118 |  |

If - Claims development after reinsurance

EURm |  |  |  |  |  |  |  |  |  |  |
Claims expense, net of reinsurance Accident year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Total
Estimated claims expense |  |  |  |  |  |  |  |  |  |  |
at the close of the claims year | 2,544 | 2,542 | 2,481 | 2,553 | 2,693 | 2,810 | 2,829 | 2,868 | 3,205 | 3,571 |
one year later | 2,529 | 2,553 | 2,491 | 2,594 | 2,768 | 2,842 | 2,848 | 2,973 | 3,270 |  |
two years later | 2,520 | 2,534 | 2,484 | 2,576 | 2,796 | 2,853 | 2,889 | 2,926 |  |  |
three years later | 2,532 | 2,516 | 2,447 | 2,579 | 2,814 | 2,898 | 2,857 |  |  |  |
four years later | 2,530 | 2,483 | 2,434 | 2,550 | 2,827 | 2,891 |  |  |  |  |
five years later | 2,492 | 2,476 | 2,439 | 2,569 | 2,796 |  |  |  |  |  |
six years later | 2,462 | 2,461 | 2,443 | 2,543 |  |  |  |  |  |  |
seven years later | 2,451 | 2,471 | 2,412 |  |  |  |  |  |  |  |
eight years later | 2,449 | 2,451 |  |  |  |  |  |  |  |  |
nine years later | 2,429 |  |  |  |  |  |  |  |  |  |
ten years later |  |  |  |  |  |  |  |  |  |  |
Current estimate of total claims expense | 2,429 | 2,451 | 2,412 | 2,543 | 2,796 | 2,891 | 2,857 | 2,926 | 3,270 | 3,571 |
Total disbursed | 2,287 | 2,294 | 2,253 | 2,360 | 2,537 | 2,599 | 2,501 | 2,453 | 2,527 | 1,916 |
Liability (net) reported in the balance sheet | 141 | 157 | 159 | 183 | 259 | 291 | 356 | 473 | 743 | 1,655 | 4,417
Liability (net) relating to 2013 and prior years |  |  |  |  |  |  |  |  |  |  | 2,460
Discounting effect, gross |  |  |  |  |  |  |  |  |  |  | -1,445
Liability for claims handling expenses |  |  |  |  |  |  |  |  |  |  | 239
Risk of non-performance by reinsurer |  |  |  |  |  |  |  |  |  |  | 15
Total liability for incurred claims |  |  |  |  |  |  |  |  |  |  | 5,686

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 119 |  |

Topdanmark - Claims development before reinsurance

EURm |  |  |  |  |  |  |  |  |  |  |
Claims expense, gross Accident year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Total
Estimated claims expense |  |  |  |  |  |  |  |  |  |  |
at the close of the claims year | 839 | 827 | 800 | 728 | 787 | 790 | 820 | 843 | 883 | 974 |
one year later | 849 | 836 | 800 | 744 | 799 | 810 | 802 | 835 | 876 |  |
two years later | 841 | 821 | 786 | 735 | 807 | 816 | 780 | 844 |  |  |
three years later | 833 | 819 | 774 | 744 | 815 | 817 | 793 |  |  |  |
four years later | 815 | 813 | 757 | 737 | 813 | 815 |  |  |  |  |
five years later | 795 | 793 | 760 | 735 | 816 |  |  |  |  |  |
six years later | 783 | 788 | 755 | 741 |  |  |  |  |  |  |
seven years later | 782 | 795 | 757 |  |  |  |  |  |  |  |
eight years later | 788 | 789 |  |  |  |  |  |  |  |  |
nine years later | 784 |  |  |  |  |  |  |  |  |  |
ten years later |  |  |  |  |  |  |  |  |  |  |
Current estimate of total claims expense | 784 | 789 | 757 | 741 | 816 | 815 | 793 | 844 | 876 | 974 |
Total disbursed | 743 | 746 | 717 | 686 | 738 | 725 | 681 | 681 | 638 | 484 |
Liability (gross) reported in the balance sheet | 42 | 44 | 40 | 55 | 79 | 90 | 112 | 163 | 238 | 490 | 1,351
Liability (gross) relating to 2013 and prior years |  |  |  |  |  |  |  |  |  |  | 303
Discounting effect, gross |  |  |  |  |  |  |  |  |  |  | -119
Other items |  |  |  |  |  |  |  |  |  |  | 48
Total liability for incurred claims |  |  |  |  |  |  |  |  |  |  | 1,583

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 120 |  |

Topdanmark - Claims development after reinsurance

EURm |  |  |  |  |  |  |  |  |  |  |
Claims expense, net of reinsurance Accident year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Total
Estimated claims expense |  |  |  |  |  |  |  |  |  |  |
at the close of the claims year | 791 | 776 | 742 | 703 | 735 | 757 | 782 | 785 | 837 | 923 |
one year later | 798 | 784 | 746 | 716 | 746 | 774 | 764 | 777 | 830 |  |
two years later | 792 | 770 | 731 | 708 | 754 | 780 | 744 | 785 |  |  |
three years later | 784 | 768 | 720 | 717 | 762 | 781 | 758 |  |  |  |
four years later | 766 | 756 | 702 | 711 | 759 | 779 |  |  |  |  |
five years later | 745 | 747 | 701 | 708 | 763 |  |  |  |  |  |
six years later | 733 | 742 | 698 | 715 |  |  |  |  |  |  |
seven years later | 736 | 751 | 701 |  |  |  |  |  |  |  |
eight years later | 742 | 745 |  |  |  |  |  |  |  |  |
nine years later | 738 |  |  |  |  |  |  |  |  |  |
ten years later |  |  |  |  |  |  |  |  |  |  |
Current estimate of total claims expense | 738 | 745 | 701 | 715 | 763 | 779 | 758 | 785 | 830 | 923 |
Total disbursed | 697 | 701 | 662 | 660 | 686 | 691 | 648 | 633 | 604 | 466 |
Liability (net) reported in the balance sheet | 41 | 44 | 38 | 55 | 77 | 88 | 109 | 152 | 226 | 457 | 1,288
Liability (net) relating to 2013 and prior years |  |  |  |  |  |  |  |  |  |  | 301
Discounting effect, gross |  |  |  |  |  |  |  |  |  |  | -117
Liability for claims handling expenses |  |  |  |  |  |  |  |  |  |  | 30
Total liability for incurred claims |  |  |  |  |  |  |  |  |  |  | 1,503

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 121 |  |

Hastings - Claims development before reinsurance

EURm |  |  |  |  |  |  |  |  |  |  |
Claims expense, gross Accident year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Total
Estimated claims expense |  |  |  |  |  |  |  |  |  |  |
at the close of the claims year | 419 | 518 | 738 | 857 | 893 | 1,008 | 923 | 1,079 | 1,275 | 1,493 |
one year later | 420 | 562 | 765 | 800 | 873 | 962 | 847 | 1,043 | 1,221 |  |
two years later | 437 | 568 | 741 | 812 | 876 | 988 | 825 | 969 |  |  |
three years later | 439 | 563 | 763 | 799 | 887 | 931 | 773 |  |  |  |
four years later | 465 | 562 | 691 | 810 | 852 | 900 |  |  |  |  |
five years later | 445 | 548 | 721 | 780 | 824 |  |  |  |  |  |
six years later | 430 | 564 | 697 | 774 |  |  |  |  |  |  |
seven years later | 443 | 555 | 710 |  |  |  |  |  |  |  |
eight years later | 436 | 547 |  |  |  |  |  |  |  |  |
nine years later | 435 |  |  |  |  |  |  |  |  |  |
ten years later |  |  |  |  |  |  |  |  |  |  |
Current estimate of total claims expense | 435 | 547 | 710 | 774 | 824 | 900 | 773 | 969 | 1,221 | 1,493 |
Total disbursed | 428 | 536 | 649 | 717 | 757 | 732 | 526 | 559 | 693 | 629 |
Liability (gross) reported in the balance sheet | 7 | 11 | 61 | 56 | 67 | 167 | 247 | 410 | 528 | 864 | 2,418
Liability (gross) relating to 2013 and prior years |  |  |  |  |  |  |  |  |  |  | 156
Discounting effect, gross |  |  |  |  |  |  |  |  |  |  | -443
Liability for claims handling expenses |  |  |  |  |  |  |  |  |  |  | 80
Total liability for incurred claims |  |  |  |  |  |  |  |  |  |  | 2,211

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 122 |  |

Hastings - Claims development after reinsurance

EURm |  |  |  |  |  |  |  |  |  |  |
Claims expense, net of reinsurance Accident year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Total
Estimated claims expense |  |  |  |  |  |  |  |  |  |  |
at the close of the claims year | 175 | 225 | 292 | 341 | 377 | 436 | 388 | 436 | 614 | 794 |
one year later | 181 | 234 | 290 | 310 | 351 | 382 | 303 | 345 | 575 |  |
two years later | 189 | 241 | 296 | 320 | 357 | 391 | 267 | 327 |  |  |
three years later | 193 | 248 | 307 | 321 | 374 | 374 | 260 |  |  |  |
four years later | 197 | 247 | 309 | 339 | 362 | 364 |  |  |  |  |
five years later | 197 | 250 | 323 | 333 | 353 |  |  |  |  |  |
six years later | 197 | 261 | 321 | 327 |  |  |  |  |  |  |
seven years later | 205 | 259 | 318 |  |  |  |  |  |  |  |
eight years later | 205 | 258 |  |  |  |  |  |  |  |  |
nine years later | 204 |  |  |  |  |  |  |  |  |  |
ten years later |  |  |  |  |  |  |  |  |  |  |
Current estimate of total claims expense | 204 | 258 | 318 | 327 | 353 | 364 | 260 | 327 | 575 | 794 |
Total disbursed | 203 | 256 | 309 | 322 | 342 | 324 | 198 | 224 | 388 | 441 |
Liability (net) reported in the balance sheet | 1 | 2 | 9 | 5 | 11 | 39 | 62 | 103 | 187 | 353 | 772
Liability (net) relating to 2013 and prior years |  |  |  |  |  |  |  |  |  |  | 6
Discounting effect, gross |  |  |  |  |  |  |  |  |  |  | -64
Liability for claims handling expenses |  |  |  |  |  |  |  |  |  |  | 80
Total liability for incurred claims |  |  |  |  |  |  |  |  |  |  | 794

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 123 |  |

24 Financial liabilities

EURm | 12/2023 | 12/2022
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

The comparative period includes Mandatum Group’s figures. For further information, please see
note 32.
The segment financial liabilities include subordinated debts, derivatives, debt securities
in issue, and other financial liabilities.
If

EURm |  |  | 12/2023 | 12/2022
Subordinated debt securities |  |  |  |
Subordinated loans | Maturity | Interest |  |
Subordinated loan, 2021 (nominal value SEKm 1,500) | 30 years | 3 month Stibor + 1.30% | 135 | 134
Subordinated loan, 2018 (nominal value SEKm 1,000) | perpetual | 3 month Stibor + 2.75% | - | 90
Total subordinated debt securities |  |  | 135 | 224
Other financial liabilities |  |  |  |
Derivative financial instruments |  |  | 58 | 7
Total financial liabilities |  |  | 193 | 231

The loan of 2018 was issued with floating interest rate terms. The loan included terms
stating the right of redemption after five years and at any interest payment date
thereafter. The loan was redeemed in March 2023.
The loan of 2021 was issued with floating interest rate terms. The loan includes terms
stating the right of redemption after five years, at any date for a three-month period
after the first five years and thereafter at any interest payment date. The loan is listed
on the Luxembourg Stock Exchange (BdL Market).

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 124 |  |

Topdanmark

EURm |  |  | 12/2023 | 12/2022
Subordinated debt securities |  |  |  |
Subordinated loans | Maturity | Interest |  |
Subordinated loan tier 1, 2022 (nominal value DKKm 400) | perpetual | 3 month Cibor + 4.75 % | 54 | 54
Subordinated loan, 2021 (nominal value DKKm 700) | 12/2031 | 3 month Cibor + 1.25 % | 94 | 94
Total subordinated debt securities |  |  | 148 | 148
Other financial liabilities |  |  |  |
Derivative financial instruments |  |  | 36 | 32
Amounts owed to credit institutions |  |  | 9 | 23
Total financial liabilities |  |  | 193 | 203

Subordinated loans are wholly included in Topdanmark’s own funds. Approximately
EUR 127 million (128) (DKK 950 million) of the subordinated loans are subscribed by If.
Hastings

EURm |  |  | 12/2023 | 12/2022
Other financial liabilities |  |  |  |
Amounts owed to credit institutions |  |  | 184 | 73
Total financial liabilities |  |  | 186 | 73

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 matures 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.
Mandatum
Table presents Mandatum segment’s financial liabilities for the comparative period
2022.

EURm |  |  |  | 12/2022
Subordinated debt securities |  |  |  |
Subordinated loans | Maturity | Interest |  |
Subordinated loan, 2019 (nominal value EURm 250) | 30 years | 12 month Euribor + 4.5 % |  | 250
Subordinated loan, 2002 (nominal value EURm 100) | perpetual | — |  | 100
Total subordinated debt securities |  |  |  | 350
Other financial liabilities |  |  |  |
Derivative financial instruments |  |  |  | 3
Total financial liabilities |  |  |  | 352

Mandatum Life issued in 2002 EUR 100 million Capital Notes, which were wholly
subscribed by Sampo plc. At the time of the partial demerger, with the consent of the
Financial Supervisory Authority, Mandatum redeemed the loan.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 125 |  |

Holding

EURm |  |  | 12/2023 | 12/2022
Subordinated debt securities |  |  |  |
Subordinated loans | Maturity | Interest |  |
Subordinated loan, 2020 (nominal value EURm 1,000) | 32 years | 2.50 % | 993 | 993
Subordinated loan, 2019 (nominal value EURm 500) | 30 years | 3.38 % | 496 | 496
Total subordinated debt securities |  |  | 1,490 | 1,489
Other financial liabilities |  |  |  |
Derivative financial instruments |  |  | 20 | 14
Debt securities in issue | Maturity | Interest |  |
Bond 2016, (nominal value EURm 750) | 7 years | 1.00 % | — | 318
Bond 2017, (nominal value EURm 500) | 8 years | 1.25 % | 162 | 161
Bond 2018, (nominal value EURm 500) | 10 years | 1.625 % | 311 | 311
Bond 2018, (nominal value EURm 500) | 12 years | 2.25 % | 395 | 400
Bond 2018, (nominal value NOKm 1,000) | 10 years | 3.10 % | 89 | 95
Other |  |  | 2 | 21
Total bonds |  |  | 959 | 1,306
Total financial liabilities |  |  | 2,469 | 2,808

The subordinated loan of 2019 has a fixed interest rate for the first ten years, and the
2020 loan for the first 12 years. After that, the loans become subject to a variable
interest rate but they also include terms stating the right of redemption at this point in
time or at any interest payment date thereafter. The loans are listed on the London
Stock Exchange.
The determination and hierarchy of fair values of financial assets and liabilities
measured at acquisition cost is disclosed in note 15. According to this determination,
the subordinated debt securities and bonds are categorised either on level 1 or 2.
Eliminations between segments

EURm | 12/2023 | 12/2022
Eliminations between segments | -127 | -228
Group financial liabilities total | 2,914 | 3,439

Change in liabilities from financing activities

EURm | 1 January 2023 | Incoming cash flows | Outgoing cash flows | Exchange differences | Other | 31 December 2023
Subordinated debt | 1,983 | — | -87 | -3 | -248 | 1,645
Bonds | 1,306 | — | -340 | -7 | — | 959
Other loans | 96 | 143 | -46 | 2 | — | 194
Total | 3,384 | 143 | -473 | -8 | -248 | 2,798

EURm | 1 January 2022 | Incoming cash flows | Outgoing cash flows | Exchange differences | Other | 31 December 2022
Subordinated debt | 2,016 | 54 | -69 | -19 | 2 | 1,983
Bonds | 2,200 | — | -859 | -10 | -25 | 1,306
Other loans | 43 | 69 | -13 | -3 | — | 96
Total | 4,259 | 122 | -942 | -32 | -24 | 3,384

Item Other for the reporting period 2023 is mainly related to the separation of
Mandatum.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 126 |  |

25 Other liabilities

EURm | 12/2023 | 12/2022
Liabilities arising out of direct insurance operations | 227 | 252
Liabilities arising out of reinsurance operations | 69 | 10
Settlement liabilities | 5 | 61
Provisions | 6 | 6
Interests | 29 | 9
Tax liabilities | 2 | 20
Lease liabilities | 160 | 197
Employee benefit liability | 21 | —
Prepayments and accrued income | 241 | 287
Other | 581 | 776
Total other liabilities | 1,342 | 1,617

Item Other includes, e.g. premium taxes EUR 164 million (176), other tax liabilities,
employee withholding taxes, and liabilities related with patient insurance pool.
In the provisions, EUR 3 million (3) of the provision consist of funds reserved for
futures expenses for previously implemented or planned development of efficient
administrative, and claims adjustment processes and structural changes in distribution
channels, resulting in organisational changes that affect all business areas. In addition,
the item includes a provision of approximately EUR 4 million (3) for lawsuits and other
uncertain liabilities.
The non-current share of other liabilities is EUR 82 million (95).
Leases
The total effect of leases on the statement of cash flows was EUR -33 million (-15).
Non-cash flow additions from IFRS 16 leases to the balance sheet items were EUR 15
million (32).

EURm | 1-12/2023 | 1-12/2022
Items recognised in the p/l from lease liabilities |  |
Interest expenses | -2 | -3
Expenses from short-term and low-value lease liabilities | -4 | -7

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 127 |  |

26 Employee benefits
Sampo Group’s subsidiary If had defined benefit plans in Sweden and Norway during
the financial year 2023.
If applies IAS 19 Employee Benefits and recognizes defined-benefit pension plans in
Sweden and Norway. Other pension plans existing in the Group have either been
classified as defined-contribution plans or have been classified as defined-benefit
plans, but recognized as defined-contribution plans. This occurs because If lacks the
information necessary to recognize them as defined-benefit plans or they have been
deemed as insignificant.
For the defined-contribution pension plans, If pays fixed contributions and has no
further payment obligations once the contributions have been paid. The pension
expense for the defined-contribution plans is equal to the premiums paid by If for the
fiscal year.
Employee benefit obligations of If

EURm | 2023 | 2022
Defined benefit pension obligations, including social costs | 209 | 210
Fair value of plan assets | 220 | 220
Net liability (asset) recognised in the balance sheet | -11 | -9
of which recognised as Net pension assets in Other assets | 32 | 34
of which recognised as Net pension liabilities in Other liabilities | 21 | 25

The Swedish defined-benefit pension plan, FTP2, is a multiemployer plan and is closed
to new employees born in 1972 or later. In Norway, there are a few smaller pension
plans, mainly unfunded pension plans, for which If is responsible for ongoing payments.
These include an early retirement plan, covering all employees born in 1957 or earlier
and who were employed by If in 2013, as well as a small number of pension obligations
on salary above 12G or individual pension agreements.
A common feature of the defined-benefit plans is that the employees and survivors
encompassed by the plans are entitled to a guaranteed pension that depends on the
employees’ service period and pensionable salary at the time of retirement. The
dominating benefit is the old-age pension, referring to a life-long pension after the
anticipated retirement age.
The anticipated retirement age for Sweden in connection with life-long pension is 65
years. Life-long old-age pension following a complete service period is payable at a
rate of 10% of the pensionable salary between 0 and 7.5 income base amounts, 65% of
salary between 7.5 and 20 income base amounts and 32.5% between 20 and 30
income base amounts. Paid-up policies and pension payments from the Swedish plans
are normally indexed annually with an amount corresponding to the change in the
consumer price index. However, there is no agreement guaranteeing the value and
future supplements, in addition to the contractual pension benefit, which could either
rise or fall.
The pensions in Sweden are primarily funded through insurance whereby the insurer
establishes the premiums and disburse the benefits. If’s obligation is primarily fulfilled
through payment of the premiums. Should the assets that are attributable to the
pension benefits not be sufficient to enable the insurer to cover the guaranteed
pension benefits, If could be forced to pay supplementary insurance premiums or
secure the pension obligations in some other way. However, given the insurer’s high
consolidation ratio, the risk that If will be forced to take any such action is low.
To cover the insured pension benefits in Sweden, as well as for a small plan in Norway,
the related capital is managed as part of the insurers’ management portfolios. New and
existing asset categories are evaluated on an ongoing basis, in order to diversify the
asset portfolios with a view to optimize the anticipated risk-adjusted return. Any
surplus that arises from management of the assets normally accrues to If and/or the
insured and there is no form of transfer of the asset value to other members of the
insurance collective.
The insurers and If are jointly responsible for monitoring the pension plans, including
investment decisions and contributions. The pension plans are essentially exposed to
similar material risks regarding the final amount of the benefits, longevity, the
investment risk associated with the plan assets, and the fact that the choice of
discount interest rate affects the valuation in the financial statements.
When applying IAS 19, the pension obligation and the pension cost attributed to the
fiscal period are calculated annually, using the Projected Unit Credit method. The
calculation of the defined benefit obligation is based on future expected pension
payments and includes yearly updated actuarial assumptions such as salary growth,
inflation, mortality and employee turnover. The expected pension payments are then
discounted to a present value, using a discount rate set with reference to AAA and AA

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 128 |  |

corporate bonds issued in local currency, including mortgage-backed bonds, as of
mid- December. The discount rates chosen in Sweden and Norway take into account
the duration of the company’s pension obligations in each respective country. After a
deduction for the plan assets, a net asset or a net liability is recognized in the balance
sheet.
The following tables contain a number of material assumptions, specifications of
pension costs, assets and liabilities, and a sensitivity analysis showing the potential
effect on the obligations of reasonable changes in those assumptions, as of the end of
the fiscal year.
The carrying amounts have been stated, including special payroll tax in Sweden
(24.26%) and a corresponding fee in Norway (14.1%-19.1%).
During 2022, the main defined benefit plan in Norway was closed for accounting
purposes, as only a few individuals remain in the plan, as well as two small plans in
Sweden. This has been reported as a settlement under IAS 19 as of December 31 2022.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 129 |  |

Specification of employee benefit obligations by country

| 2023 | 2022
EURm | Sweden | Norway | Total | Sweden | Norway | Total
Recognised in income statement and other comprehensive income |  |  |  |  |  |
Current service cost | 3 | 0 | 3 | 4 | 0 | 4
Past service cost and settlements | — | — | — | 0 | 1 | 1
Total defined benefit pensions costs in insurance service result | 3 | 0 | 3 | 4 | 1 | 5
Interest expense on net pension liability | -1 | 1 | -1 | 0 | 0 | 0
Remeasurement of the net pension liability | 6 | 0 | 6 | -31 | -2 | -32
Total net cost (income) in comprehensive income statement | 8 | 1 | 8 | -26 | 0 | -27
Recognised in balance sheet |  |  |  |  |  |
Defined benefit pension obligations, including social costs | 186 | 23 | 209 | 184 | 27 | 210
Fair value of plan assets | 218 | 2 | 220 | 218 | 2 | 220
Net liability (net assets) recognised in balance sheet | -32 | 21 | -11 | -34 | 25 | -9
Distribution by asset class |  |  |  |  |  |
Bonds | 42% | — |  | 42% | — |
Equities | 20% | — |  | 20% | — |
Properties | 10% | — |  | 10% | — |
Other | 28% | — |  | 28% | — |

The following actuarial assumptions have been used for the calculation of defined benefit pension plans in Norway and Sweden:

| Sweden | Sweden | Norway | Norway
| 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022
Discount rate | 3.50% | 3.50% | 3.75% | 3.25%
Future salary increases | 3.00% | 2.75% | 3.25% | 3.00%
Price inflation | 2.00% | 2.00% | 2.25% | 2.00%
Mortality table | DUS23 | DUS21 | K2013 | K2013
Average duration of pension liabilities | 17 years | 18 years | 11 years | 10 years
Expected contributions to the defined benefit plans during 2023 and 2022 | 6 | 6 | - | -

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 130 |  |

| 2023 | 2022
Sensitivity analysis of effect of reasonably possible changes | Sweden | Norway | Total | Sweden | Norway | Total
Discount rate, +0.50% | -15 | -1 | -15 | -15 | -1 | -16
Discount rate, -0.50% | 16 | 1 | 17 | 17 | 1 | 18
Future salary increases, +0.25% | 4 | 0 | 4 | 4 | 0 | 4
Future salary increases, -0.25% | -3 | 0 | -3 | -3 | 0 | -3
Expected longevity, +1 year | 6 | 1 | 6 | 6 | 1 | 7

| 2023 | 2022
EURm | Funded plans | Unfunded plans | Total | Funded plans | Unfunded plans | Total
Distribution of obligations on funded and unfunded plans |  |  |  |  |  |
Defined benefit pension obligations, including social costs | 188 | 20 | 209 | 186 | 24 | 210
Fair value of plan assets | 220 | — | 220 | 220 | — | 220
Net pension liability (net assets) recognised in the balance sheet | -31 | 20 | -11 | -34 | 24 | -9

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 131 |  |

Analysis of the change in net liability recognised in the
balance sheet

EURm | 2023 | 2022
Pension liabilities |  |
At the beginning of the year | 204 | 288
Current cost | 3 | 4
Interest cost | 7 | 5
Actuarial gains (-) / losses (+) on financial assumptions | — | -66
Actuarial gains (-) / losses (+) on demographic assumptions | 0 | -6
Actuarial gains (-) / losses (+), experience adjustments | -3 | 25
Exchange differences on foreign plans | -1 | -19
Benefits paid | -7 | -20
Settlements | — | -7
Defined benefit pension obligations on Dec 31, excl. social security costs | 203 | 204
Social security costs | 6 | 7
Defined benefit plans on Dec 31, incl. social security costs | 209 | 210
Reconciliation of plan assets |  |
At the beginning of the year | 220 | 268
Interest income | 7 | 5
Difference between actual return and calculated interest income | -9 | -16
Contributions paid | 5 | 10
Exchange differences on foreign plans | 0 | -19
Benefits paid | -4 | -20
Settlements | — | -7
Plan assets at 31 December | 220 | 220

Other short-term employee benefits
There are other short-term employee incentive programmes in the Group, the terms of
which vary according to country, business area or company. Benefits are recognised in
the profit or loss for the year they arise. An estimated amount of these short-term
incentives, social security costs included, for 2023 is EUR 62 million.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 132 |  |

27 Equity and reserves
Equity (1,000 shares)

| 12/2023 | 12/2022
Equity (1,000 shares) | 501,797 | 514,369

The shares are divided into A and B classes, with the number of A shares being
179,000,000 at minimum and 711,200,000 at maximum, and the number of B shares
being 0 at minimum and 4,800,000 at maximum. Each A share entitles its holder to
one vote and each B share entitles its holder to five votes at a General Meeting of
Shareholders. The shares have no nominal value.
At the end of the financial year 2023, the number of A shares amounted to 501,596,752
and B shares to 200,000 shares.
Treasury shares (1,00 0 shares)

| 12/2023 | 12/2022
Own shares held by Sampo plc (1,000 shares) | — | 2,141

Reserves and retained earnings
Legal reserve
The legal reserve comprises the amounts to be transferred from the distributable
equity, according to the Articles of Association or on the basis of the decision of the
AGM.
Invested unrestricted equity
The reserve includes other investments of equity nature, as well as the issue price of
shares to the extent it is not recorded in the share capital by an express decision.
Other components of equity
Other components of equity include derivatives used in cash flow hedges and
exchange differences. In the comparison year, fair value changes of financial assets
available for sale were also included in other components of equity.
Changes in the reserves and retained earnings are presented in the Group’s statement
of changes in equity.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 133 |  |

28 Incentive schemes
Long-term incentive schemes 2017 I–2020 I
The Board of Directors of Sampo plc has decided on the long-term incentive schemes
2017:1 and 2020:1 for the key employees of Sampo Group. The Board of Directors of
Sampo plc has authorised the Group CEO to decide on the allocation of incentive units,
which are used to determine the incentive reward. The Board decides on the number
of incentive units allocated to the Group CEO and the Group Executive Committee
members. Some 90 persons in Sampo plc and If were included in the long-term
incentive schemes at the end of 2023.
The amount of the incentive reward is based on the share price development of the
Sampo A share and Sampo Group’s return on capital at risk (RoCaR). In addition, in
accordance with the terms updated in September 2023, the amount of the incentive
paid in 2024 is partly based on the share price development of Mandatum plc. The
value of one calculated incentive unit is the trade-weighted average price of the
Sampo A share (and for rewards paid in 2024 Mandatum share price) at the time
period specified in the terms of the incentive scheme, reduced by the dividend-
adjusted starting price. The starting price of the incentive schemes varies between
EUR 32.94–44.74. The maximum value of one incentive unit varies between EUR
56.94–68.74. In the 2020:1 incentive scheme, the calculation of the incentive reward
furthermore takes into account the RoCaR. If the RoCaR is at least risk-free return + 5
per cent, the reward is paid out in full. If the RoCaR is at least risk-free return + 3 per
cent but less than risk-free return + 5 per cent, the payout is 50 per cent. If the RoCaR
is below risk-free return + 3 per cent, no incentive reward will be paid.
Each plan has three performance periods and incentive rewards are paid in cash in
three instalments. Identified staff shall buy Sampo A shares with 50 per cent of the
amount of the instalment after deducting income tax and other comparable charges.
The shares are subject to disposal restrictions for three years from the date when the
instalment was paid. A premature payment of the incentive reward may occur in the
event of changes in the group structure. The fair value of the incentive schemes is
estimated by using the Black-Scholes pricing model.

|  | 2017:I/2 | 2020:I | 2020:I/2 | 2020:I/3
Terms approved* |  | 14 Sep 2017 | 5 Aug 2020 | 5 Aug 2020 | 5 Aug 2020
Granted (1,000) 31 Dec 2020 |  | 85 | 3,877 | — | —
Granted (1,000) 31 Dec 2021 |  | 60 | 3,815 | 220 | —
Granted (1,000) 31 Dec 2022 |  | 30 | 3,805 | 220 | 208
Granted (1,000) 31 Dec 2023** |  | — | 2,124 | 170 | 158
End of performance period I 30% |  | Q2-2021 | Q2-2023 | Q2-2024 | Q2-2025
End of performance period II 35% |  | Q2-2022 | Q2-2024 | Q2-2025 | Q2-2026
End of performance period III 35% |  | Q2-2023 | Q2-2025 | Q2-2026 | Q2-2027
Payment I 30% |  | 09/2021 | 09/2023 | 09/2024 | 09/2025
Payment II 35% |  | 09/2022 | 09/2024 | 09/2025 | 09/2026
Payment III 35% |  | 09/2023 | 09/2025 | 09/2026 | 09/2027
Price of Sampo A at terms approval date EUR* |  | 44.02 | 30.30 | 30.30 | 30.30
Starting price EUR*** |  | 44.10 | 32.94 | 43.49 | 44.74
Dividend-adjusted starting price EUR at 31 December 2023 |  | — | 24.54 | 36.79 | 42.14
Sampo A closing price EUR at 31 December 2023 | 39.61 |  |  |  |
Mandatum closing price EUR at 31 December 2023 | 4.07 |  |  |  |
Total intrinsic value, EURm |  |  | 31 | 1 | —
Total debt | 32 |  |  |  |
Total cost for the financial period, EURm (incl. social cost) | 10 |  |  |  |

* Grant dates vary
** Without Mandatum
** In the 2017:1 incentive scheme, the trade-weighted average price of the Sampo A share during
ten trading days from the adoption of the scheme and in the 2020:1 incentive scheme, the trade-
weighted average price of the Sampo A share during twenty-five trading days commencing the
day after Sampo plc’s publication of its Half-Year Financial Report in 2020.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 134 |  |

Long-term incentive scheme of Topdanmark
Topdanmark’s long-term option-based scheme is for its Executive Board and senior
executives. The strike price has been fixed at 110% of the market price on the last
trading date in the prior financial year (average of all trades). The options may be
exercised 3-5 years subsequent to the granting. The scheme is settled by shares.
The only earnings conditions to the option scheme requires employment during the
whole year of the allocation. Options are allocated at the beginning of the year and, in
connection with resignations in the year of allocation, a proportional deduction in the
number of allocated options is made.
The tables below show option holder’s standing at the year end.

| Strike price | Executive board | Senior executives | Resigned | Total
Total number of options (1,000) |  |  |  |  |
At 1 January 2023 | 38 | 85 | 425 | 470 | 981
Granted | 54 | 25 | 101 | — | 126
Transferred | — | — | -56 | 56 | —
Exercised | 30 | -12 | -73 | -131 | -216
Forfeited | 46 | — | — | -16 | -16
At 31 December 2023 | 167 | 98 | 397 | 379 | 874
At 1 January 2022 | 36 | 108 | 765 | 249 | 1,121
Granted | 54 | 38 | 180 | — | 218
Transferred | — | -53 | -414 | 467 | —
Exercised | 28 | -8 | -105 | -239 | -352
Forfeited | 37 | — | — | -7 | -7
At 31 December 2022 | 155 | 85 | 425 | 470 | 981
Per granting |  |  |  |  |
2019, exercise period January 2022–2024 | 30 | 6 | 31 | 72 | 108
2020, exercise period January 2023–2025 | 36 | 17 | 72 | 103 | 192
2021, exercise period January 2024–2026 | 28 | 23 | 100 | 122 | 245
2022, exercise period January 2025–2027 | 45 | 27 | 104 | 75 | 206
2023, exercise period January 2026–2028 | 50 | 25 | 90 | 7 | 122

| Executive board | Senior executives | Resigned | Total
Average market price on date of exercise 2023 | 47 |  |  |
Fair value of granting 2023 | — | 1 | — | 1
Fair value at 31 December 2023 | 1 | 3 | 4 | 8

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 135 |  |

The fair value of the granting for the year has been calculated using the Black and
Scholes model, assuming a share price of EUR 49 (49). The interest rate corresponds
to the zero-coupon rate based on the swap curve on 31 December of the previous
year. Future volatility is assumed to be 22 per cent (22) p.a and the average life of the
options approximately 4 years. The volatility based on previous years’ volatility is still
management’s best estimate of the future volatility. The strike prices are adjusted by
dividend distribution for outstanding options.
On 31 December 2023, there were 300,000 options (290,000), which could be
exercised.
Long-term incentive scheme of Hastings
The total charge for the share-based payments recognised in the profit or loss during
2023 was EUR 7 million (2) with a share-based payment liability of EUR 8 million (15)
held at 31 December 2023.
Long term incentive plan
Certain management personnel of Hastings Group participate in the Group’s Long
Term Incentive Plan (’LTIP’), which is a cash settled scheme. Vesting is subject to a
three-year service period and the achievement of certain performance conditions. The
performance conditions for the LTIP are profit before tax and live customer policies.
Cash awards totalling EUR 13 million (12) were granted in 2023 and EUR 6 million (2) of
cash awards were forfeited. The expected life is the contractual life of the award
adjusted to reflect management’s best estimate of holder behaviour. There were cash
awards with a value of EUR 32 million (38) outstanding on 31 December 2023.
Restricted stock awards
Restricted Stock Awards are whereby certain individuals are granted cash awards
conditional upon their continued employment with the Group. The expected life is the
contractual life of the award adjusted to reflect management’s best estimate of holder
behaviour. During 2023, certain key management personnel were granted cash awards
with a value of EUR 0.7 million (0.5) conditional upon continued employment within
the Group. There were cash awards with a value of EUR 0.9 million (0.8) outstanding at
31 December 2023.
Capital appreciation plan
At the year end, 31 December 2021, certain key management personnel were invited to
participate in the Hastings Group’s Capital Appreciation Plan (’CAP’), under which they
may be awarded up to five free B Ordinary Shares in HGCL, for every B Ordinary Share
they purchase, subject to performance thresholds, based upon total shareholder return
(’TSR’). The total number of B Ordinary Shares purchased and allotted under the
scheme in 2023 was zero (-). Potential matching awards of B Ordinary Shares have the
potential to vest in two tranches, with 50% being conditional upon a TSR measured
over a four-year period, and 50% being conditional upon TSR measured over a five-
year period, with the number of awards dependent upon the level of return between a
minimum and maximum target. At the end of each performance period, one half of
shares will vest immediately, and one half will be deferred for 12 months before
becoming exercisable. The vesting is dependent on continuing service by the
participant over the period of any deferment, ranging from three to six years.
The TSR measure for these awards is calculated using the Monte Carlo valuation
model. The fair value of the matching shares was EUR 4 million, or approximately EUR
4 per matching share.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 136 |  |

29 Investments in subsidiaries

Name | Group holding % | Carrying amount
If P&C Insurance Holding Ltd | 100 | 1,886
If P&C Insurance Ltd | 100 | 1,488
If P&C Insurance AS | 100 | 40
Vertikal Helseassistanse AS | 100 | 31
Viking Assistance Group AS | 100 | 83
Topdanmark A/S* | 49.6 | 1,488
Topdanmark Forsikring A/S | 49.6 | 559
Topdanmark EDB A/S | 49.6 | 40
Topdanmark BidCo A/S** | 48.4 | 265
Oona Health A/S | 48.4 | 31
Forsikringsselskabet Dansk Sundhedssikring A/S | 48.4 | 38
Daytona Midco Ltd** | 48.4 | 249
Daytona Acquisitions Ltd | 48.4 | 249
Hastings Group (Consolidated) Ltd | 100 | 2,611
Hastings Group Holdings Limited | 100 | 1,961
Hastings Group (Finance) plc | 100 | 1,058
Hastings Group Limited | 100 | 348
Advantage Global Holdings Limited | 100 | 270
Hastings (Holdings) Limited | 100 | 23

* The Group’s ownership of votes.
** Topdanmark BidCo A/S and Daytona Midco Ltd are related to the acquisition of Oona Health A/S.
The table excludes dormant companies in Great Britain as well as property and housing companies
accounted for in the consolidated accounts, and other companies that are insignificant to the
consolidated financial statements.
Changes in the subsidiary shares in 2023
Topdanmark A/S acquired 100% of the shares of Oona Health A/S on 1 December
2023.
Sampo plc made an additional investment of approximately EUR 14 million in
Topdanmark A/S in the third quarter of 2023.
Mandatum Group was separated from the Group due to a partial demerger in October
2023.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 137 |  |

30 Material partly-owned subsidiaries

|  | Equity interest held by non-controlling interests
Subsidiary | Country | 2023 | 2022
Topdanmark A/S | Denmark | 50.4 | 50.7
Accumulated balances of material non- controlling interests |  |  |
Topdanmark A/S |  | 424 | 560

The summarised financial information
Amounts before the separation of non-controlling interests can be seen in the Group’s
segment income statement and balance sheet.
Non-controlling interests’ share of the income statement

EURm | 2023 | 2022
Insurance revenue | 690 | 674
Insurance service expenses | -577 | -541
Reinsurance result | -15 | -19
Insurance service result | 98 | 114
Net investment result | 54 | -72
Net finance income or expense from insurance contracts | -40 | 58
Net financial result | 14 | -14
Other income | 1 | 11
Other expenses | -12 | -4
Finance expenses | -6 | -3
Profit before taxes | 95 | 104
Income taxes | -25 | -23
Share of discontinued operations | - | 52
Net profit attributable to the non-controlling interests | 70 | 133

Non-controlling interests’ share of the balance sheet

EURm | 2023 | 2022
Assets |  |
Property, plant and equipment | 59 | 57
Intangible assets | 406 | 249
Investments in associates | 4 | 4
Financial assets | 1,038 | 1,309
Deferred income tax | 2 | 3
Reinsurance contract assets | 40 | 40
Other assets | 45 | 33
Cash and cash equivalents | 12 | 4
Total assets | 1,608 | 1,700
Liabilities |  |
Insurance contract liabilities | 935 | 893
Subordinated debts | 74 | 75
Other financial liabilities | 23 | 28
Deferred income tax | 70 | 61
Other liabilities | 82 | 84
Total liabilities | 1,184 | 1,141
Total equity attributable to non-controlling interests | 424 | 560

EURm | 2023 | 2022
Dividends paid to non-controlling interests | 187 | 207
Cash flows allocated to non-controlling interests | 4 | -73

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 138 |  |

31 Related party disclosures
The related parties of Sampo Group include subsidiaries, associates and joint ventures.
In addition, related parties include, as mentioned below, key management personnel
and their related parties. The Group’s subsidiaries are included in note 29 and
significant associates in note 13.
All intra-group transactions and balances are eliminated upon consolidation. The
related party transactions disclosed in the note include transactions with related
parties that are not eliminated in the preparation of consolidated financial statements.
Transactions with related parties are on an arm’s length basis.
Key management personnel and their related parties
The key management personnel in Sampo Group consists of the members of the Board
of Directors of Sampo plc, the Chief Executive Officer (CEO) and Sampo Group’s
Executive Committee. Their related parties include close family members and the
entities over which the members of the key management personnel or their close
family members have control or significant influence.
Key management compensation

EURm | 2023 | 2022
Short-term employee benefits | -8 | -10
Post employment benefits | -3 | -3
Other long-term benefits | -6 | -6
Total | -17 | -19

Short-term employee benefits comprise salaries and other short-terms benefits,
including profit-sharing bonuses accounted for the year, and social security costs.
Post employment benefits include pension benefits under the Employees’ Pensions Act
(TyEL) in Finland and voluntary supplementary pension benefits.
Other long-term benefits consist of the benefits under long-term incentive schemes
accounted for the year (see note 28).
Related party transactions of the key management
The key management does not have any loans from the Group companies.
32 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 constituted a reporting segment in accordance with IFRS 8
Operating Segments. Mandatum Group was presented as a discontinued operation, in
accordance with IFRS 5 N on-current assets held for sale and discontinued operations
u ntil 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 and the
comparative information for the year 2022 is 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 Contract s 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 of Mandatum Grou p, are presented in short. New accounting principles
related to IFRS 9 Financial Instruments are included in section Accounting principles.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 139 |  |

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
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 to 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 ser vices 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.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 140 |  |

Result of discontinued operations

EURm | 1-9/2023 | 1-12/2022
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

The profit from the discontinued operations and total comprehensive income for the
discontinued operations is attributable entirely to the owners of the parent.
The 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. Earning per
share from discontinued operations was EUR 0.5.
Effect on the financial position of the Group

EURm | 9/2023
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

Cash flows from discontinued operations

EURm | 1-9/2023 | 1-9/2022
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

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.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 141 |  |

33 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 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 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

EURm | 1-11/2022
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

Due to the disposal, trademark related to Topdanmark Life was derecognised in the
statement of profit in the Group, totalling net EUR -46 million.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 142 |  |

34 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 EUR 72 million (DKK 535 million)
and trade names 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

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| FINANCIAL STATEMENTS 2023 | 143 |  |

35 Contingent liabilities, commitments and legal proceedings

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
above table in 2022 were for the most part Mandatum’s commitments to private equity and credit
funds. For further information, please see note 32.
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.
Policyholder's beneficiary rights

EURm | 2023 | 2022
Assets covered by policyholders' beneficiary rights | 10,034 | 9,644
Technical provisions, net | -6,171 | -6,082
Surplus of registered securities | 3,863 | 3,562

The assets are registered as assets covering technical provisions (Solvency II). In the
event of an insolvency situation, policyholders have a beneficiary right to assets
registered for coverage of technical provisions.
Other financial commitments
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.
The subsidiary If P&C Insurance Ltd provides insurance with mutual undertakings
within several pools, such as the Nordic Nuclear Insurance Pool, Norwegian Natural
Perils’ Pool and the Dutch Terror Pool.
In connection with the transfer of property and casualty insurance business from the
Skandia Group to the If Group as of March 1, 1999, If P&C Holding Ltd and If P&C
Insurance Ltd issued a guarantee for the benefit of Försäkringsaktiebolaget Skandia
(publ.), whereby the aforementioned companies in the If Group mutually guarantee
that companies in the Skandia group will be indemnified against any claims or actions
due to guarantees or similar commitments made by companies in the Skandia Group,
within the property and casualty insurance business transferred to the If Group.

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| FINANCIAL STATEMENTS 2023 | 144 |  |

If P&C Insurance Holding Ltd and If P&C Insurance Ltd
have separately entered into agreements with
Försäkringsaktiebolaget Skandia (publ.) and Tryg-
Baltica Forsikrings AS, whereby Skandia and Tryg-
Baltica will be indemnified against any claims
attributable to guarantees issued
byFörsäkringsaktiebolaget Skandia (publ.) and Vesta
Forsikring AS, on behalf of Skandia Marine Insurance
Company (U.K.) Ltd. (renamed Marlon Insurance
Company Ltd., company dissolved in July 2017) in
favour of the Institute of London Underwriters. Marlon
was sold during 2007, and the purchaser issued a
guarantee in favour of the aforementioned companies
in the If Group for the full amount that they may be
required to pay under these guarantees.
If P&C Insurance Company Ltd has outstanding
commitments to private equity funds totalling EUR 3
million, which is the maximum amount that the
company has committed to invest in the funds. Capital
will be called to these funds over several years as the
funds make investments.
With respect to certain IT systems If and Sampo use
jointly, If P&C Insurance Holding Ltd has undertaken to
indemnify Sampo for any costs caused by If that Sampo
may incur in relation to the owners of the systems.
Sampo Group’s Danish companies and Topdanmark
Group’s companies are jointly taxed, with Topdanmark
A/S being the management company. Pursuant to the
specific rules on corporation taxes etc. in the Danish
Companies Act, the companies are liable for the jointly
taxed companies and for any obligations to withhold
tax from interests, royalties and dividend for companies
concerned.
In connection with the implementation of a new
customer and core system, Topdanmark Forsikring A/S
has undertaken to provide support towards specific
suppliers to fulfil Topdanmark EDB IV ApS’ obligations
in accordance with the contracts.
Contingent liability
Entities within Hastings Group are subject to review by
tax authorities in the UK and Gibraltar. The Hastings
Group commenced discussion with HMRC in December
2016 regarding aspects of its business model and the
allocation of certain elements of its profit between the
Group’s operating subsidiaries, Hastings Insurance
Services Limited (’HISL’) in the UK and Advantage
Insurance Company Limited (’AICL’) in Gibraltar. During
the year, management has engaged in correspondence
and meetings with HMRC. Management has reviewed
current and previous tax filings and considered the
nature of the ongoing enquiries, and does not consider
it appropriate to provide for any additional tax due.
Hastings Group provides for potential tax liabilities that
may arise on the basis of the amount expected to be
paid to the tax authorities, having taken into
consideration any ongoing enquiries or reviews and
based on guidance from professional firms. The final
amounts paid may differ from the amounts provided
depending on the ultimate resolution of such matters
and any changes to the estimates or amounts payable
in respect of prior periods are reported through
adjustments relating to prior periods. In the event that
the tax authorities do not ultimately accept the filed tax
position, it is possible that the Hastings Group will have
an additional tax liability. However the ongoing nature
of the enquiry means that it is inherently difficult to
predict a range of potential outcomes with certainty.
Based on the information received from HMRC to date,
management does not believe that it is probable that
any additional amounts will ultimately become payable.
Further information in respect of the enquiries has,
therefore, not been provided in accordance with IAS 37,
on the grounds it is not practicable to do so.
Legal proceedings
There are a number of legal proceedings against the
Group companies outstanding on 31 December 2023,
arising in the ordinary course of business. The
companies estimate it unlikely that any significant loss
will arise from these proceedings.

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| FINANCIAL STATEMENTS 2023 | 145 |  |

36 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.
Dividend proposal to the AGM
In the meeting of 8 February 2024, the Board of
Directors decided to proposet, at the Annual General
Meeting on 25 April 2024, a divided distribution of EUR
1.80 per share (totalling approx. EUR 903 million based
on the number the number of outstanding shares at the
balance sheet date). The dividends to be paid will be
accounted for in the equity in 2024 as a deduction of
retained earnings.

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| FINANCIAL STATEMENTS 2023 | 146 |  |

37 Risk Management disclosure
Sampo Group business and risk
strategy
Sampo’s strategy is to create long-term value from its
non-life insurance operations. The Group’s focus within
non-life insurance is on the private and SME business in
the Nordic countries and the digital distribution market
in the United Kingdom. Sampo Group is first and
foremost exposed to the general performance of the
Nordic economies. However, the Nordic economies
typically are at any given time at different stages of
their economic cycles, because of reasons such as
different economic structures and separate currencies.
Also, geographically the Nordics as a large area is more
a source of underwriting diversification than
concentration. Hence, inherently the Nordic area is a
good basis for a diversified business. Geographic
diversification is extended also outside of the Nordics
into the United Kingdom via Hastings.
To further maintain diversification of businesses Sampo
Group proactively prevents concentrations, to the
extent possible, by segregating the duties of separate
business areas. As a result, separate companies have
very few overlapping areas in their underwriting and
investments activities. Despite proactive strategic
decisions on segregation of duties, concentrations in
underwriting and investments may appear and hence
liabilities and assets are monitored at the Group level to
identify potential concentrations at a single company or
risk factor level.
It is regarded that the current business model where all
companies have their own operational processes and
agreements with counterparties mitigates accumulation
of counterparty default risks and operational risks.
Hence, these risks are mainly managed at company
level.
The number of intragroup exposures between the
Group companies is small and the parent company is
the main source of internal liquidity and capital within
the Group. This effectively prevents contagion risk, and
hence potential problems of one company will not
directly affect the other Group companies.
Underwriting and market risk concentrations and their
management are described in the later sections as well
as the parent company’s role as a risk manager of
group-wide risks and as a source of liquidity.
Sampo's risk management strategy is to:
• Ensure that risks affecting the profit and loss account
and the balance sheet are identified, assessed,
managed, monitored and reported in all business
activities and at the Group level;
• Ensure cost-efficient customer business that is
soundly priced in terms of risks and adding value to
our clients;
• Ensure the overall efficiency, security and continuity
of operations;
• Ensure that risk buffers – in the form of capital and
foreseeable profitability – are adequate in relation to
the current risks inherent in business activities and
existing market environment;
• Limit M&A transactions to bolt-ons in non-life
insurance;
• Dispose non-strategic or otherwise unnecessary
balance sheet items and distribute the released
capital and reserves to the parent company as
appropriate; and
• Arrange its activities in ways that safeguard the
Group’s reputation, since in addition to the ability to
provide value-adding services for its clients and
sound capitalisation, the confidence of the clients and
other stakeholders is among the most significant
assets of Sampo Group.
Sampo Group risk management
system
The purpose of risk management is the creation and
protection of value. The risk management system is part
of the larger internal control system, and it integrates
risk management into the governance of the Group and
into its significant activities and functions, including
decision making. The risk management system includes
the risk management principles and the corresponding
policies, in addition to the organisational structures and
processes by which risks are being managed.
The central tasks in the risk management process are as
follows:
• Identification of risks: The risks involved in business
operations and business environment, are monitored
continuously together with earnings potential. In
particular, when new services are launched or
business environment is changing, earnings potential
and risks including reputational risks shall be
thoroughly analysed.
• Assessment of capital need: The capital need to cover
measured risks, risk-based capital, is assessed and
analysed regularly by risk types and over risks and
business areas. In addition, management considers
the size of the buffers over risk-based capital to get
actual amount of capital.
• Pricing of risks: Sound pricing of customer
transactions and careful risk/return consideration of
investments is the prerequisite for achieving the
targeted financial performance and profitability over
time. In general, the starting points of insurance policy
pricing and investment decisions are (i) adequate

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| FINANCIAL STATEMENTS 2023 | 147 |  |

expected return on allocated capital and (ii) operating
costs.
• Managing risk exposures, capital positions and
operational processes: The risks of insurance
liabilities, investment portfolios and operative
processes and capital positions are adjusted to
maintain a sound risk to return ratio and return on
capital.
• Measuring and reporting of risks: Results, risks,
profitability and needed capitalisation are measured,
analysed and reported by Finance and Risk
Management functions, which are independent from
business activities
Classification of risks
In Sampo Group, the risks associated with business
activities fall into the categories shown in the picture
Classification of risks in Sampo Group.
Classification of risks in Sampo Group

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| FINANCIAL STATEMENTS 2023 | 148 |  |

Risks inherent in business
operations
In its underwriting and investment operations, Sampo
Group is consciously taking certain risks to generate
earnings. These earnings risks are carefully selected and
actively managed. Underwriting risks are priced to
reflect their inherent risk levels and the expected return
of investments is compared to the related risks.
Furthermore, earnings related risk exposures are
adjusted continuously and their impact on the capital
need is assessed regularly.
Successful management of underwriting risks and
investment portfolio market risks is the main source of
earnings for Sampo Group companies. Day-to-day
management of these risks, i.e., maintaining them within
given limits and authorisations is the responsibility of
the business areas and the investment units.
Some risks, such as counterparty default risks and
operational risks presented in the graph Classification of
Risks in Sampo Group are indirect repercussions of
Sampo’s normal business activities. They are one-sided
risks, which in principle have no related earnings
potential. Accordingly, the risk management objective is
to mitigate these risks efficiently rather than actively
manage them. Mitigation of consequential risks is the
responsibility of the business areas and the investment
units. The capital need for these risks is measured by
independent risk management functions. It must be
noted that the categorisation of risks between earnings
and consequential risks varies depending on the
industry. For Sampo Group’s clients, for instance, the
events that are subject to insurance policies are
consequential risks and for Sampo Group these same
risks are earnings risks.
Some risks such as interest rate, currency and liquidity
risks are by their nature simultaneously linked to various
activities. To manage these risks efficiently, Sampo
Group companies must have a detailed understanding
of expected cash flows and their variance within each of
the company’s activities. In addition, a thorough
understanding of how the market values of assets and
liabilities may fluctuate at the total balance sheet level
under different scenarios is needed. These balance
sheet level risks are commonly defined as Asset and
Liability Management (“ALM”) risks. In addition to
interest rate, currency and liquidity risk, inflation risk
and risks relating to GDP growth rates are central ALM
risks in Sampo Group. The ALM risks are one of the
focus areas of senior management because of their
relevance to risks and earnings in the long run.
In general, concentration risk arises when the
company’s risk exposures are not diversified enough.
When this is the case, an individual extremely
unfavourable claim or financial market event, for
instance, could threaten the solvency of the company.
Concentrations can evolve within separate activities –
large single name or industry specific insurance or
investment exposures – or across activities when a
single name or an industry is contributing widely to the
profitability and risks of the company through both
insurance and investment activities.
Concentration risk may also materialise indirectly when
profitability and the capital position react similarly to
general economic developments or to structural
changes in the institutional environment in different
areas of business.
Sustainability approach
Sampo Group has a sustainability programme, which
drives Group level sustainability work. The programme
consists of five strategic sustainability themes: Business
management and practices, Corporate culture,
Investment management and operations, Products and
services, and Communities. In addition, the Group is
committed to protecting the environment and
combatting climate change.
Climate-related risks and opportunities at Sampo Group
are identified, assessed, and managed primarily in the
insurance subsidiaries, where the actual business
operations are being carried out.
Environmental issues and climate change are factors
that are expected to have a mid and long-term effect
on Sampo Group’s businesses. Climate-related risks can
be categorised into physical risks and transition risks.
Physical risks can be further classified into long-term
weather changes (chronic risks) and extreme weather
events such as storms, floods, or droughts (acute risks).
Transition risks refer to risks arising from the shift to a
low carbon economy, for example changes in
technology, legislation, and consumer sentiment.
The strength of the risks depends on the trajectory of
global warming. A scenario in line with the Paris Climate
Agreement, limiting the temperature rise to 1.5°C, would
have moderate consequences, whereas 3–5°C scenarios
would have severe consequences for industry,
infrastructure, and public health. Especially in
geographically vulnerable regions, abandonment of
low-lying coastal areas due to rising sea levels and food
and water shortages, can lead to large-scale migration
and outbreaks of diseases.
Physical risks are risk factors affecting especially the
financial position and results of Sampo Group. The
increasing likelihood of extreme weather conditions and
natural disasters is included in internal risk models.
Climate-related risks are also managed effectively with
reinsurance programs and price assessments. Since
climate change could increase the frequency and/or
severity of physical risks, the Sampo Group companies

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| FINANCIAL STATEMENTS 2023 | 149 |  |

conduct sensitivity analyses using scenarios in which
the severity of natural catastrophes is assumed to
increase.
Sampo Group’s investments can be exposed to both
physical risks and transition risks, depending on the
investment in question. Investments are particularly
exposed to physical risks in the form of losses incurred
from extreme weather events. The transition to a low-
carbon society with potentially increasing
environmental and climate regulation, more stringent
emission requirements, and changes in market
preferences could in turn cause transition risks for the
Group’s investments and possible revaluation of assets
as operating models in carbon intense sectors change.
To manage physical risks and transition risks,
investment opportunities are carefully analysed before
any investments are made and climate-related risks are
considered along with other factors affecting the risk-
return ratio of individual investments. The methods
used by Sampo Group include, for example, annual
analysis of the carbon footprint and climate impact of
investments, sector-based screening and ESG
integration, monitoring the geographical distribution of
investments and engagement with investee companies.
Core risk management activities
To create value for all stakeholders in the long run,
Sampo Group must have the following forms of capital
in place:
• Financial flexibility in the form of adequate capital and
liquidity.
• Good technological infrastructure.
• Intellectual capital in the form of comprehensive
proprietary actuarial data and analytical tools to
convert this data into information.
• Human capital in the form of skilful and motivated
employees.
• Social and relationship capital in the form of good
relationships with society and clients to understand
the changing needs of different stakeholders.
These resources are being continuously developed in
Sampo Group. They are in use when the following core
activities related to risk pricing, risk taking, and active
management of risk portfolios are conducted.
Appropriate selection and pricing of underwriting risks
• Underwriting risks are carefully selected and are
priced to reflect their inherent risk levels.
• Insurance products are developed proactively to
meet clients’ changing needs and preferences.
Effective management of underwriting exposures
• Diversification is actively sought.
• Reinsurance is used effectively to reduce largest
exposures.
Careful selection and execution of investment
transactions
• Risk return ratios and sustainability issues of separate
investments opportunities are carefully analysed.
• Transactions are executed effectively.
Effective mitigation of consequential risks
• Counterparty default risks are mitigated by carefully
selecting counterparties, applying collateral
agreements, and assuring adequate diversification.
• High quality and cost-efficient business processes are
maintained.
• Continuity and recovery plans are continuously
developed to secure business continuity.
Effective management of investment portfolios and the
balance sheet
• Balance between expected returns and risks in
investment portfolios and the balance sheet is
optimised, considering the features of insurance
liabilities, internally assessed capital needs, regulatory
solvency rules and rating requirements.
• Liquidity risks are managed by having an adequate
portion of investments in liquid instruments. The
portion is mainly dependent on the features of the
liabilities.
At the Group level, the risk management focus is on
capitalisation, leverage, and liquidity. It is also essential
to identify potential risk concentrations and to have a
thorough understanding of how solvency and reported
profits of Group companies would develop under
different scenarios. These concentrations and
correlations may influence Group level capitalisation,
leverage, and liquidity as well as on Group level
management actions.
When the above-mentioned core activities are
successfully implemented, a balance between profits,
risks and capitalisation can be achieved and shareholder
value can be created.
Accounting principles
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, and IAS 39 is applied. For more
information on the implementation, please see note on
accounting principles section IFRS 17 and IFRS 9
transition impacts.

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| FINANCIAL STATEMENTS 2023 | 150 |  |

Underwriting risks at Sampo Group
With respect to the underwriting businesses carried out in the subsidiary companies, it
has been established that If and Topdanmark operate within the Nordic countries, but
mostly in different geographical areas and in different lines of business and hence their
underwriting risks are different by nature. There are some overlapping areas in
Denmark in If and Topdanmark. However, there are no material underwriting risk
concentrations in the normal course of business. Hastings operates solely in the United
Kingdom, and hence its underwriting risks are geographically distinct from the Nordics.
Consequently, business lines as such are contributing diversification benefits rather
than a concentration of risks.
Key sensitivities
Effects from instant change on profit or loss in year 2023

EURm | Shock | 2023
UW profit | Discount rate +100 bps | 45
UW profit | Discount rate -100 bps | -50
Insurance finance income and expense, net | Discount rate +100 bps | 315
Insurance finance income and expense, net | Discount rate -100 bps | -360
Net investment income | Interest rates +100 bps | -335
Net investment income | Interest rates -100 bps | 355
Net investment income | Spreads +100 bps | -330
Net investment income | Equities -10% | -220

Underwriting risks at If Group
As shown in the graph Breakdown of gross written premiums by business area,
country, and line of business, If, 31 December 2023, the If insurance portfolio is well
diversified across business areas, countries, and lines of business. The six lines of
business are segmented in accordance with the insurance class segmentation used in
IFRS.
Breakdown of gross written premiums by business area, country, and line of business
If, 31 December 2023, total EUR 5,468 million (5,432)

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There are minor differences between the figures
reported by Sampo Group and If due to differences in
foreign exchange rates used in the consolidation.
Premium and catastrophe risk and their
management and control
The main factors affecting If’s premium risk are claims
volatility, claims inflation, and pricing methodology.
Given the inherent uncertainty of P&C insurance
operations, there is a risk of losses due to unexpectedly
high claims expenses. Examples of what could lead to
high claims expenses include large fires, natural
catastrophes or an unforeseen increase in the frequency
or the average size of small and medium-sized claims.
The principal methods for mitigating premium risks are
by reinsurance, diversification, prudent underwriting,
and regular follow-ups linked to the strategy and
financial planning process.
An analysis of how changes in the combined ratio,
insurance revenue (net of reinsurance premium
expense) and claims incurred affect the result before
tax is presented in the table Sensitivity analysis,
premium risk, If, 31 December 2023 and 31 December
2022.
Sensitivity analysis, premium risk
If, 31 December 2023 and 31 December 2022

| Level 2023 | Change in current level | Effect on result before tax (Gross) | Effect on result before tax (Net)
(Gross) | (Net) |  | 2023 | 2022 | 2023 | 2022
Combined ratio, business area Private | 83.5% | 83.1% | +/- 1 percentage point | +/ 28.7 | +/ 29.5 | +/ 28.4 | +/ 29.3
Combined ratio, business area Commercial | 82.1% | 81.9% | +/- 1 percentage point | +/ 13.2 | +/ 13.4 | +/ 13.1 | +/ 13.2
Combined ratio, business area Industrial | 96.5% | 87.3% | +/- 1 percentage point | +/ 9.2 | +/ 8.5 | +/ 6.3 | +/ 5.9
Combined ratio, business area Baltics | 85.6% | 85.9% | +/- 1 percentage point | +/ 2.3 | +/ 1.9 | +/ 2.2 | +/ 1.9
Insurance revenue (net of reinsurance premium expenses EURm) | 5,330 | 4,996 | +/- 1 per cent | +/ 53.3 | +/ 53.3 | +/ 49.9 | +/ 50.2
Claims incurred (EURm) | 3,763 | 3,377 | +/- 1 per cent | +/ 37.6 | +/ 36.7 | +/ 33.7 | +/ 35.5

The Underwriting Committee is an advisory and
preparatory body to the CEOs in the respective
companies. In accordance with the instructions for the
Underwriting Committee, the committee monitors
compliance with the established underwriting principles.
The Chairman of the Underwriting Committee is, among
other things, responsible for the approval of
underwriting deviations defined in the Underwriting
Policy.
The Underwriting Policy sets general principles,
restrictions, and directions for the underwriting
activities. The Underwriting Policy is supplemented by
guidelines outlining in greater detail how to conduct
underwriting within each business area.
The Reinsurance Policy stipulates guidelines for the
purchase of reinsurance. The optimal choice of
reinsurance program is evaluated by comparing the
expected cost with the benefit of the reinsurance, the
impact on result volatility and capital requirements. The
main tool for this evaluation is If’s internal model in
which small claims, large claims and natural
catastrophes are modelled.
The Reinsurance Policy includes limitations on
permitted reinsurers and their rating for each line of
business. In addition, limits relating to concentration risk
and exposure to reinsurance risk are included. The
reinsurers are continuously assessed and evaluated
through in-house financial and qualitative pre-defined
analyses.
A group-wide reinsurance program is in place in If since
2003. In 2023, retention levels were between SEK 100
million (approximately EUR 9.0 million) and SEK 300
million (approximately EUR 27.0 million) per risk and

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SEK 300 million (approximately EUR 27.0 million) per
event.
Reserve risk and its management and control
If's main reserve risks are claims inflation and increased
retirement age.
Reserves, especially in long tailed business, are sensitive
to assumptions of future claims inflation since they
affect the future claim amount. An increased retirement
age, through for instance a political decision, will
increase the duration and present value of annuities as
they decrease, or expire, at retirement. An increase in
life expectancy will likewise increase the duration and
present value of annuities.
Valuation of the liability for incurred claims always
includes a degree of uncertainty since it is based on
estimates of the size and the frequency of future claims
payments. The uncertainty in the valuation is normally
greater for new portfolios for which complete run-off
statistics are not yet available, and for portfolios
including claims that take a long time to settle. Workers’
compensation, motor third party liability (MTPL),
personal accident and liability insurance are products
with the latter characteristics.
The value of the net liability for incurred claims is in
addition to risk factors relating to reserve risk also
impacted by changes in discount rates and exchange
rates. These market risks are described in sections for
interest rate risk and currency risk. The reserve risk
differs from interest rate risk since it relates to the size
of future cash flows, while the interest rate risk only
impacts the present value of future cash flows.
The duration of the provisions, and thus the sensitivity
to changes in discount rates, varies with each product
portfolio. The weighted average duration for 2023
across the product portfolios was 6.2 (6.0) years.
A large part of the exposure relates to lines of business
MTPL and workers’ compensation, where a part of the
liability for these lines includes annuities. In 2023 the
proportion of liability for incurred claims related to
MTPL and workers’ compensation was 52 (54) per cent.
In the tables Net liability for incurred claims by line of
business and major geographical area, If, 31 December
2023 and 31 December 2022, the size and duration of
If’s IFRS net liability for incurred claims are presented
by line of business and major geographical area.
Net liabilities for incurred claims by line of business and major geographical area
If, 31 December 2023

| Sweden | Norway | Finland | Denmark | Baltics | Total
| EURm | Duration | EURm | Duration | EURm | Duration | EURm | Duration | EURm | Duration | EURm | Duration
Motor other and MTPL | 868 | 9.2 | 226 | 1.7 | 669 | 10.8 | 103 | 3.0 | 107 | 4.0 | 1,972 | 8.2
- whereof MTPL | 774 | 10.2 | 159 | 2.3 | 647 | 11.1 | 89 | 3.1 | 93 | 4.5 | 1,762 | 9.2
Workers' compensation | 0 | 0.0 | 116 | 2.9 | 805 | 10.4 | 300 | 8.2 | 0 | 0.0 | 1,220 | 9.1
Liability | 249 | 4.0 | 120 | 1.5 | 117 | 3.3 | 74 | 2.9 | 20 | 2.0 | 580 | 3.1
Accident | 283 | 6.4 | 319 | 6.1 | 163 | 7.0 | 80 | 1.7 | 3 | 0.3 | 847 | 5.9
Property | 330 | 1.0 | 364 | 0.8 | 175 | 0.7 | 101 | 0.4 | 26 | 0.6 | 996 | 0.8
Marine, aviation, transport | 17 | 0.7 | 16 | 0.7 | 9 | 1.1 | 26 | 0.6 | 3 | 0.7 | 70 | 0.7
Total | 1,747 | 6.3 | 1,162 | 2.7 | 1,938 | 8.9 | 681 | 4.7 | 158 | 3.1 | 5,686 | 6.2

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 153 |  |

Net liabilities for incurred claims by line of business and major geographical area
If, 31 December 2022

| Sweden | Norway | Finland | Denmark | Baltics | Total
| EURm | Duration | EURm | Duration | EURm | Duration | EURm | Duration | EURm | Duration | EURm | Duration
Motor other and MTPL | 845 | 8.2 | 270 | 1.7 | 642 | 11.4 | 106 | 2.9 | 94 | 4.2 | 1,957 | 7.9
- whereof MTPL | 761 | 9.0 | 209 | 2.1 | 621 | 11.7 | 94 | 3.0 | 82 | 4.8 | 1,767 | 8.7
Workers' compensation | 0 | 0.0 | 140 | 3.0 | 846 | 10.5 | 279 | 7.7 | 0 | 0.0 | 1,264 | 9.0
Liability | 245 | 4.0 | 113 | 1.4 | 108 | 2.7 | 70 | 2.7 | 21 | 2.2 | 557 | 3.0
Accident | 291 | 5.3 | 310 | 5.2 | 146 | 6.8 | 82 | 1.7 | 2 | 0.2 | 831 | 5.2
Property | 261 | 1.0 | 356 | 0.8 | 161 | 0.7 | 98 | 0.4 | 26 | 0.6 | 902 | 0.8
Marine, aviation, transport | 16 | 0.7 | 17 | 0.7 | 10 | 1.1 | 26 | 0.3 | 2 | 0.8 | 70 | 0.6
Total | 1,657 | 5.8 | 1,206 | 2.5 | 1,913 | 9.2 | 661 | 4.3 | 144 | 3.2 | 5,582 | 6.0

A sensitivity analysis of the reserve risk is presented in
the table below as well as the interest rate risk relating
to insurance contracts. The effects represent the
immediate impact on the liability’s values as a result of
changes in the different risk factors as per December 31
each year. The sensitivity analysis is calculated before
tax. Change in the liability for incurred claims, net will
result in a corresponding change in result before
income taxes. The effect in the income statement is
presented in either the insurance service result or the
net financial result.
Sensitivity analysis, reserve risk
If, 31 December 2023 and 31 December 2022

Insurance liabilities item | Risk factor | Change in risk parameter | Country | Effect EURm 2023 Gross | Effect EURm 2023 Net | Effect EURm 2022 Gross | Effect EURm 2022 Net
Discounted estimated future cash flows | Inflation increase | Increase by 1 percentage point | Sweden | 124.5 | 120.1 | 114.9 | 112.1
Denmark | 33.6 | 33.0 | 30.6 | 29.9
Finland | 25.5 | 25.2 | 27.6 | 27.4
Norway | 21.5 | 20.2 | 20.3 | 19.9
Annuities and reated INBR | Decrease in mortality | Life expectancy increase by 1 year | Sweden | 15.1 | 15.1 | 12.8 | 12.8
Denmark | 1.0 | 1.0 | 0.8 | 0.8
Finland | 49.2 | 49.2 | 46.4 | 46.4
Norway | 0.2 | 0.2 | 0.1 | 0.1
Discounted liability for incurred claims | Decrease in discount rate | Decrease by 1 percentage point to liquid part of yield curve | Sweden | 87.0 | 82.6 | 79.0 | 76.4
Denmark | 33.5 | 32.9 | 29.8 | 29.2
Finland | 171.6 | 171.3 | 172.8 | 172.6
Norway | 31.4 | 30.1 | 29.0 | 28.6

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 154 |  |

The IFRS Insurance liabilities are further analysed by
claims years. The output from this analysis is illustrated
both before and after reinsurance in the claims cost
trend tables. These are disclosed in the note 23.
The Boards of Directors decide on the guidelines
governing the calculation of insurance liabilities. The
Chief Actuary is responsible for developing and
presenting guidelines on how the insurance liabilities
are to be calculated and for assessing whether the level
of total liability is sufficient. The Actuarial function is
responsible for ensuring compliance with the steering
documents and that local rules and regulations are
reflected in guidelines and working routines.
The Actuarial Committee is a preparatory and advisory
board for If’s Chief Actuary. The committee secures a
comprehensive view over reserve risk, discusses, and
gives recommendations on policies and guidelines for
calculating insurance liabilities.
The calculation of liabilities for incurred claims
according to IFRS is carried out by actuaries within
each business area. The premium and claims provisions
according to the Solvency II regulations are based on
parameters from each business area and the Chief
Actuary unit. The actuarial estimates are based on
historical claims data and exposures that are available
at the closing date. Factors that are considered include
loss development trends, the level of unpaid claims,
changes in legislation, case law and economic
conditions. When estimating the liability, established
actuarial methods are generally used, combined with
projections of the number of claims and average claims
costs.
Underwriting risks in Topdanmark Group
As shown in the graph Breakdown of gross written
premiums by business area, country and line of
business, Topdanmark, 31 December 2023,
Topdanmark’s insurance portfolio is diversified across
Business areas and lines of business.
Breakdown of gross written premiums by business area, country and line of business
Topdanmark, 31 December 2023, Total EUR 1,339 million (1,308)

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 155 |  |

Premium and catastrophe risk and their
management and control
The main underwriting risk that influences the
performance is the risk of catastrophe events. However,
the insurance risk of Topdanmark Forsikring is
mitigated by a comprehensive reinsurance program.
The reinsurance program focuses on catastrophe risks
such as storm, cloudburst, fire and other cumulative
risks, where several policyholders are affected by the
same event. The biggest retentions are on storm with
DKK 150 million plus reinstatement for each event, while
the biggest retention on fire is DKK 30 million with a
maximum capacity of DKK 1,245 billion. In workers'
compensation risks are covered up to DKK 1 billion with
a retention of DKK 50 million.
Nearly all insurance risks in Topdanmark Forsikring are
measured by a partial internal model instead of the
Solvency ll standard model. The partial internal model
has been approved by the Danish Supervisory
Authorities for solvency calculations. The efficiency of
the reinsurance programme is assessed by the partial
internal model.
With certain restrictions, acts of terrorism are covered
by the reinsurance contracts. The NBCR (nuclear,
biological, chemical, radiological) acts of terrorism are
covered by a public organisation. This is based on an
Act on NBCR acts of terrorism. Under this scheme the
costs from a NBCR attack in Denmark will initially be
borne by the State, but those costs will subsequently be
recovered from policyholders.
Premium risk reduction measures taken at different
levels of operations are as follows:
• Collection of data on risk and claims history
• Use of collected and processed data in profitability
reporting, risk analyses and in the internal model
• Ongoing follow-up on risk developments as well as
quarterly forecasts for future risk development
• Pricing using a statistical model tool including
customer scoring tools
• Reinsurance cover that reduces the risk especially for
catastrophe events
• Ongoing follow-up on the risk overview and
reinsurance coverage in Topdanmark's Risk
Committee.
To maintain product and customer profitability,
Topdanmark monitors changes in its customer
portfolios. Provisions are recalculated, and the
profitability reports are updated in the same context on
a monthly basis. Based on this reporting, trends in claim
levels are carefully assessed and price levels may be
adjusted if considered necessary.
In the private market segment, customer scoring is
used, and customers are divided into groups according
to their expected profitability levels. The customer
scoring has two roles. First it helps to maintain the
balance between the individual customer's price and
risk. Secondly it facilitates the fairness between
individual customers by ensuring that no customers are
paying too large premiums to cover losses from
customers who pay too small premiums.
The historical profitability of major SME customers with
individual insurance schemes is monitored using
customer assessment systems. These assessment
systems enable Topdanmark to achieve accurate
information about income, claims expenses, combined
ratio etc. for each customer.
In addition to the analysis described above,
Topdanmark continuously improves its administration
systems to achieve more detailed data, which in turn
enables the company to continuously improve the
pricing and gain even better insight into how the
different types of claims are composed.
The insurance risk scenarios are presented in the table
Sensitivity analysis, premium risk, Topdanmark, 31
December 2023 and 31 December 2022.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 156 |  |

Sensitivity analysis, premium risk
Topdanmark, 31 December 2023 and 31 December 2022

Key figures | Current level 2023 (Gross) | Current level 2023 (Net) | Change in current level | Effect on result before tax (Gross) | Effect on result before tax (Net)
2023 | 2022 | 2023 | 2022
Combined ratio, business area Private | 82.6% | 81.5% | +/- 1 percentage point | +/- 7.6 | +/- 6.4 | +/- 6.4 | +/- 6.3
Combined ratio, business area Commercial | 88.5% | 85.2% | +/- 1 percentage point | +/- 7 | +/- 6.9 | +/- 6.4 | +/- 6.2
Insurance revenue (net of insurance premium expense, EURm) |  | 1,460 | +/- 1 per cent |  |  | +/- 13.8 | +/- 12.5
Claims incurred (EURm) | 953 | 912 | +/- 1 per cent | +/- 9.5 | +/- 8.5 | +/- 9.1 | +/- 8.1

Reserve risk and its management and control
The insurance lines of business are divided into short-
tail i.e., those lines where the period from notification
until settlement is short and long-tail i.e., those lines
where the period from notification until settlement is
long. The main short-tail lines in Topdanmark are
buildings, other property, motor other and health
products registered via Oona A/S. For the short-tail
lines the claims are mainly settled within the first year.
Long-tail lines relate to personal injury and liability and
consist of the lines Workers' compensation, Accident,
Motor third party insurance and Commercial liability.
Composition of non-life provisions for outstanding
claims is presented in the following table.
Net liability for incurred claims by line of business
Topdanmark, 31 December 2023 and 31 December 2022

| 2023 | 2022
EURm | Duration | EURm | Duration
Motor other and MTPL | 159 | 1.8 | 156 | 1.1
- whereof MTPL | 133 | 2.3 | 133 | 2.3
Workers' compensation | 813 | 7.4 | 773 | 7.0
Liability | 105 | 2.0 | 99 | 2.3
Accident | 179 | 2.1 | 173 | 1.7
Property | 209 | 1.3 | 167 | 1.5
Marine, aviation, transport | 1 | 1.0 | 2 | 1.2
Travel insurance | 4 | 0.8 | 4 | 0.9
Income protection | 23 | 0.9 | 21 | 0.9
Other | 11 | 0.8 | 0 | 0.0
Total | 1,503 | 4.4 | 1,395 | 4.2

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 157 |  |

Due to the longer period of claims settlement, the risk
profile of the long-tail lines of business are generally
more uncertain than that of the short-tail lines. It is not
unusual that claims in long-tail lines are settled three to
five years after notification and in rare cases up to ten
to fifteen years.
The reserve risk is calculated using Topdanmark’s
partial internal model for insurance risk. Workers’
compensation claims provision has by far the biggest
risk, followed by the other long-tail lines’ claims
provisions.
During such a long period of settlement, the levels of
compensation could be significantly affected by
changes in legislation, case-law or practice in the
compensation of claim incidents adopted by the Danish
Labour Market Insurance which decides on
compensation for injury and loss of earnings potential in
all cases of serious industrial injuries. The practice
adopted by the Danish Labour Market Insurance also
has some impact on the levels of compensation for
accident and personal injury within motor liability and
commercial liability insurance. Supreme court decisions
can also influence the provisions for former years
especially for Workers’ compensation.
The reserve risk represents mostly the ordinary
uncertainty of calculation and claims inflation, i.e., an
increase in the level of compensation due to the annual
increase in compensation per policy being higher than
the general development in prices or due to a change in
judicial practice or legislation. The sufficiency of the
provisions is tested in key lines by calculating the
provisions using alternative models as well, and then
comparing the compensation with information from
external sources, primarily statistical material from the
Danish Labour Market Insurance and the Danish Road
Sector/Road Directorate.
Sensitivity analysis, reserve risk
Topdanmark, 31 December 2023 and 31 December 2022

Insurance liabilities item | Risk factor | Change in risk parameter | Country | Effect EURm 2023 | Effect EURm 2023 Net | Effect EURm 2022 | Effect EURm 2022 Net
Discounted estimated future cash flows | Inflation increase | Increase by 1 percentage point | Denmark | 50.7 | 50.7 | 46.5 | 46.5
Annuities and reated INBR | Decrease in mortality | Life expectancy increase by 1 year | Denmark | 0.9 | 0.9 | 0.9 | 0.9
Discounted insurance liabilities, net | Decrease in discount rate | Decrease by 1 percentage point | Denmark | 62.4 | 61.7 | 57.3 | 56.6

Underwriting risks in Hastings Group
Hastings provides motor, home insurance products, and
is a provider of regulated consumer credit in the current
for of personal loans. To the United Kingdom (UK)
market the motor and home insurance products are
provided through its Gibraltar-based general insurance
underwriting company Advantage.
For Solvency II reporting purposes the lines of business
are:
• Motor vehicle liability insurance (Motor liability)
• Other motor insurance (Motor other)
• Fire and other damage to property insurance

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 158 |  |

Net liability for incurred claims by line of business
Hastings, 31 December 2023 and 31 December 2022

| 31 Dec 2023 | 31 Dec 2022
| EURm | Duration | EURm | Duration
Motor | 755 | 2.2 | 763 | 2.1
Workers' compensation | 0 | 0 | 0 | 0
Liability | 0 | 0 | 0 | 0
Accident | 0 | 0 | 0 | 0
Property | 40 | 1.8 | 37 | 1.2
Marine, aviation, transport | 0 | 0 | 0 | 0
Other |  |  |  |
Total | 794 | 2.2 | 800 | 2.1

Sensitivity analysis, premium risk
Hastings, 31 December 2023 and 31 December 2022

Key figure | Level, 2023 (Gross) | Level, 2023 (Net) | Change | Effect on pre-tax profit (Gross), EURm | Effect on pre-tax profit (Net), EURm
2023 | 2022 | 2023 | 2022
Operating ratio |  | 90% | +/- 1 percentage point |  |  | +/- 12.5 | +/- 9.9
Insurance revenue (net of reinsurance premium expense) | 1719 | 1128 | +/- 1 per cent | +/- 17.2 | +/- 14.1 | +/- 11.3 | +/- 8.8
Claims incurred | 1135 | 714 | +/- 1 per cent | +/- 11.4 | +/- 10.1 | +/- 7.1 | +/- 4.9

Pricing risk
Advantage's risk appetite require management to
maintain rates that are projected to achieve loss ratios
within the target loss ratio range. As a response to
market conditions rates were regularly adjusted, after
review by management, to remain competitive and
provide customer-focused benefits to policyholders.
The rate changes were regularly reviewed and amended
in keeping with an agile approach to pricing and
appropriately factoring in ongoing claims cost inflation
risk. Robust technical product pricing with strong
governance controls for both Motor and Household
products is the principal way Advantage manages
insurance risk exposures in order to mitigate the risk of
pricing ineffectively.
Changes to technical rates are constructed based upon
the analysis of current and future predicted frequency
and severity patterns, new business acquisition and
existing case models to ensure an appropriate risk
spread and balance. Competitor monitoring also feeds
into the development of pricing and product
segmentation.
Weekly governance arrangements approve changes to
rate plan and review account performance. The Rating
Analysis Committee approves decisions for segment
level rate changes and book level rate changes. The
goal is to ensure that the business being written will be
profitable.
Audits are conducted on a regular basis to ensure that
all underwriting and rating rules are being applied
correctly.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 159 |  |

Reserve risk
Advantage does not take significant reserve risk and
holds an internal risk margin to a 75 per cent confidence
level versus internal best estimate. Since reserving is
subject to expert judgment the Group Chief Actuary
calculates the best estimate, the Hastings Group Senior
Actuary verifies the data, appropriateness of techniques
utilised, and assumptions used to create the best
estimate and an additional best estimate is created by a
fully independent third party. Advantage has a series of
monthly, quarterly, and semi-annual controls to ensure
reserve adequacy.
Hastings’ Gross Written Premiums (GWP) for 2023
amounted to EUR 1,706 million.
Breakdown of Gross Written Premiums
Hastings, 31 December 2023, Total EUR 1,706 million (1,313)
Advantage maintained a disciplined approach to pricing
despite continued market competition. Live customer
policies grew year on year in 2023. This disciplined but
agile underwriting and pricing approach led to many
selective rate adjustments during 2023.
Claims cost inflation had a large influence on the risk
profile for 2023. Advantage implemented a number of
standard monthly rate increases over the year to
mitigate the impact of this. Effective pricing, claims
management and frequency experience has resulted in
profits and capital with the solvency ratio within or
above of Advantage’s target range during the year.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 160 |  |

Sensitivity analysis, reserve risk
Hastings, 31 December 2023 and 31 December 2022

Insurance liabilities item | Risk factor | Change in risk parameter | Effect Gross EURm 2023 | Effect Net EURm 2023 | Effect Gross EURm 2022 | Effect Net EURm 2022
Discounted estimated future cash flows | Inflation increase | Increase by 1 percentage point | 63.0 | 10.1 | 56.3 | 8.9
Periodic Payment Orders (PPOs) | Decrease in mortality | Life expectancy increase by 1 year | 3.1 | 0.1 | 3.2 | 0.1
Discounted insurance liabilities, net | Decrease in discount rate | Decrease by 1 percentage point | 37.4 | 10.2 | 33.4 | 9.0

Market risks at Sampo Group
For all subsidiaries, their insurance liabilities and the
company specific risk appetite are the starting points
for their investment activities. The insurance liabilities
including loss absorbing buffers as well as the risk
appetite of If, Topdanmark, and Hastings differ, and as a
result the structures and risks of the investment
portfolios and the balance sheets of the three
companies differ respectively. Sampo Group’s
investment assets presented in the tables and graphs in
this section do not include investments in the shares of
subsidiaries.
The total amount of Sampo Group’s investment assets
as at 31 December 2023 was EUR 17,160 million (22,346)
as presented in the following graph.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 161 |  |

Development of investments
If, Topdanmark, Hastings, and Sampo plc, 31 December 2023 and 31 December 2022
The content of the figures in this graph is different compared to financial asset line presented in the balance sheet.
Sampo plc figures do not include intragroup items.
* For 2023 private equity also includes direct holdings in non-
listed equities.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 162 |  |

Investment activities and market risk taking are
arranged pro-actively in such a way that there is no
significant overlap between the wholly owned
subsidiaries’ single name risks except with regards to
Nordic banks where the companies have their extra
funds in short-term money market assets and cash.
From the diversification of the assets of the balance
sheet perspective, Topdanmark is a positive factor
because the role of Danish assets is dominant in its
portfolios and especially the role of Danish covered
bonds is central. In Sampo Group’s other insurance
companies’ portfolios the weight of Danish investments
has been immaterial. Even though Hastings’ investment
portfolio is smaller than other Group companies’
portfolios, it has had a positive impact on the
diversification of Sampo Group’s investments. Most
Hastings’ assets are British investments, denominated in
pound sterling, which is a market that other Sampo
Group companies have very limited exposure to.
Moreover, Hastings’ investment portfolio consists
mainly of investment grade fixed income investments.
In the next paragraphs concentrations by homogenous
risk groups and by single names are presented first and
after that balance sheet level risks are discussed.
Holdings by sector, geographical area and
asset class
Regarding fixed income and equity exposures financial
institutions and covered bonds have a material weight
in the group-wide portfolios whereas the role of public
sector investments is quite limited. Most of these assets
are issued by Nordic corporates and institutions,
although Hastings brings some diversification in this
respect. Most corporate issuers, although being based
in the Nordic countries, are operating at global markets
and hence their performance is not that dependent on
the Nordic markets. Exposures by sector, asset class
and rating are presented in the following table. Sampo
considers that the balance sheet values describe the
maximum exposure amount exposed to credit risk.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 163 |  |

Exposures by sector, asset class and rating
Sampo Group, 31 December 2023

EURm | AAA | AA+ - AA- | A+ - A- | BBB+ - BBB- | BB+ - C | D | Non- rated | Fixed income total | Listed equities | Other | Counter- party risk | Total | Change from 31 Dec 2022
Basic industry | 0 | 0 | 42 | 198 | 31 | 0 | 35 | 307 | 40 | 0 | 0 | 346 | -33
Capital goods | 0 | 14 | 147 | 143 | 34 | 0 | 140 | 478 | 520 | 0 | 0 | 998 | 105
Consumer products | 1 | 40 | 232 | 388 | 23 | 0 | 92 | 776 | 191 | 0 | 0 | 967 | -45
Energy | 0 | 19 | 19 | 0 | 0 | 0 | 63 | 100 | 18 | 0 | 0 | 119 | -110
Financial institutions | 33 | 1,420 | 2,339 | 773 | 51 | 0 | 45 | 4,661 | 0 | 728 | 67 | 5,456 | -1,304
Governments | 427 | 46 | 0 | 0 | 0 | 0 | 0 | 473 | 0 | 0 | 0 | 473 | -21
Government guaranteed | 46 | 25 | 0 | 0 | 0 | 0 | 0 | 71 | 0 | 0 | 0 | 71 | -17
Health care | 0 | 1 | 15 | 125 | 9 | 0 | 46 | 196 | 1 | 0 | 0 | 197 | -20
Insurance | 9 | 10 | 51 | 109 | 7 | 0 | 234 | 420 | 0 | 112 | 0 | 532 | 117
Media | 0 | 0 | 0 | 0 | 0 | 0 | 15 | 15 | 0 | 0 | 0 | 15 | -14
Packaging | 0 | 0 | 0 | 0 | 25 | 0 | 0 | 25 | 0 | 0 | 0 | 25 | 1
Public sector, other | 504 | 18 | 0 | 0 | 0 | 0 | 0 | 523 | 0 | 0 | 0 | 523 | -190
Real estate | 0 | 58 | 140 | 221 | 20 | 0 | 184 | 623 | 0 | 14 | 0 | 637 | -122
Services | 0 | 0 | 41 | 183 | 108 | 0 | 26 | 358 | 0 | 2 | 0 | 360 | 214
Supranationals | 197 | 0 | 0 | 0 | 0 | 0 | 0 | 197 | 0 | 0 | 0 | 197 | -30
Technology and electronics | 0 | 12 | 27 | 51 | 0 | 0 | 65 | 155 | 0 | 1 | 0 | 156 | 4
Telecommunications | 0 | 0 | 12 | 213 | 0 | 0 | 24 | 248 | 37 | 0 | 0 | 285 | 37
Transportation | 0 | 49 | 73 | 15 | 0 | 0 | 80 | 217 | 0 | 0 | 0 | 217 | -55
Utilities | 0 | 0 | 72 | 207 | 60 | 0 | 65 | 404 | 0 | 0 | 0 | 404 | -3
Others | 0 | 0 | 16 | 17 | 0 | 0 | 31 | 64 | 4 | 22 | 0 | 90 | 74
Asset-backed securities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Covered bonds | 3,895 | 0 | 32 | 0 | 0 | 0 | 95 | 4,022 | 0 | 0 | 0 | 4,022 | -292
Funds | 0 | 0 | 0 | 11 | 0 | 0 | 40 | 51 | 663 | 516 | 0 | 1,230 | 7
Clearing house | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2 | 2 | -33
Total | 5,113 | 1,712 | 3,257 | 2,652 | 368 | 0 | 1,280 | 14,382 | 1,475 | 1,395 | 69 | 17,321 | -1,731
Change from 31 Dec 2022 | -141 | -417 | -204 | 251 | -153 | 3 | -208 | -870 | -1,074 | 692 | -429 | -1,681 |

In the table, both fixed income instruments and listed equities include direct and indirect investments.
Total assets differ from the graph Development of investments
due to derivatives.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 164 |  |

Most of the financial institutions and covered bonds are
in the Nordic countries, which can be seen in the table
Fixed income investments in the financial sector, Sampo
Group, 31 December 2023 and 31 December 2022.
Fixed income investments in the financial sector
Sampo Group, 31 December 2023

EURm | Covered bonds | Cash and money market securities | Long-term senior debt | Long-term subordinated debt | Total | %
Sweden | 1,776 | 191 | 566 | 169 | 2,702 | 32,1 %
Denmark | 1,863 | 79 | 315 | 162 | 2,419 | 28,7 %
Finland | 52 | 750 | 275 | 125 | 1,202 | 14,3 %
Norway | 338 | 0 | 384 | 319 | 1,041 | 12,4 %
France | 0 | 249 | 133 | 5 | 388 | 4,6 %
United States | 0 | 2 | 179 | 0 | 181 | 2,2 %
Netherlands | 0 | 0 | 92 | 21 | 113 | 1,3 %
Iceland | 0 | 0 | 60 | 2 | 62 | 0,7 %
Switzerland | 0 | 0 | 52 | 0 | 52 | 0,6 %
Canada | 0 | 0 | 51 | 0 | 51 | 0,6 %
Ireland | 0 | 0 | 47 | 0 | 47 | 0,6 %
United Kingdom | 0 | 0 | 41 | 0 | 41 | 0,5 %
Australia | 0 | 0 | 36 | 0 | 36 | 0,4 %
Austria | 0 | 0 | 20 | 0 | 20 | 0,2 %
Germany | 0 | 0 | 18 | 0 | 18 | 0,2 %
Spain | 0 | 0 | 15 | 0 | 15 | 0,2 %
Belgium | 0 | 0 | 15 | 0 | 15 | 0,2 %
New Zealand | 0 | 0 | 11 | 0 | 11 | 0,1 %
Bermuda | 0 | 0 | 0 | 7 | 7 | 0,1 %
Total | 4,028 | 1,271 | 2,310 | 811 | 8,420 | 100,0 %

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 165 |  |

Fixed income investments in the financial sector
Sampo Group, 31 December 2022

EURm | Covered bonds | Cash and money market securities | Long-term senior debt | Long-term subordinated debt | Total | %
Denmark | 1,813 | 869 | 156 |  | 2,839 | 24,3 %
Finland | 1,729 | 157 | 552 | 165 | 2,603 | 22,3 %
Sweden | 44 | 2,028 | 291 | 127 | 2,490 | 21,3 %
France | 520 |  | 515 | 283 | 1,318 | 11,3 %
Norway | 179 |  | 328 | 264 | 771 | 6,6 %
United States |  | 2 | 346 | 2 | 350 | 3,0 %
United Kingdom |  | 62 | 176 | 2 | 240 | 2,1 %
Canada | 32 |  | 197 |  | 230 | 2,0 %
Netherlands |  |  | 161 | 50 | 211 | 1,8 %
Ireland |  | 138 | 27 | 24 | 188 | 1,6 %
Iceland |  |  | 56 | 33 | 89 | 0,8 %
Germany |  | 1 | 81 |  | 82 | 0,7 %
Spain |  |  | 40 |  | 40 | 0,3 %
Gibraltar |  | 40 |  |  | 40 | 0,3 %
Switzerland |  |  | 26 | 13 | 40 | 0,3 %
Luxembourg |  | 6 | 34 |  | 39 | 0,3 %
New Zealand |  |  | 25 |  | 25 | 0,2 %
Australia |  |  | 25 |  | 25 | 0,2 %
Austria |  |  | 18 |  | 18 | 0,2 %
Bermuda |  |  | 16 |  | 16 | 0,1 %
Belgium |  |  | 14 |  | 14 | 0,1 %
Estonia |  |  |  | 8 | 8 | 0,1 %
Cayman Islands |  |  | 5 |  | 5 | 0,0 %
Jersey |  | 0 |  |  | 0 | 0,0 %
Total | 4,318 | 3,302 | 3,087 | 971 | 11,679 | 100,0 %

The public-sector exposure includes government bonds,
government guaranteed bonds and other public-sector
investments as shown in the tables Fixed income
investments in the public sector, Sampo Group 31
December 2023 and 31 December 2022. The public
sector has had a relatively minor role in Sampo Group’s
portfolios and these exposures have been mainly in the
Nordic countries.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 166 |  |

Fixed income investments in the public sector
Sampo Group, 31 December 2023

EURm | Governments | Government guaranteed | Public sector, other | Total
Sweden | 421 | 0 | 131 | 552
Norway | 0 | 0 | 391 | 391
Supranationals | 0 | 6 | 191 | 197
United States | 46 | 0 | 0 | 46
Germany | 0 | 46 | 0 | 46
Finland | 0 | 25 | 0 | 25
Denmark | 7 | 0 | 0 | 7
Total | 473 | 77 | 713 | 1,264

Sampo Group, 31 December 2022

EURm | Governments | Governments guaranteed | Public sector, other | Total
Sweden | 404 |  | 184 | 588
Norway |  |  | 369 | 369
Finland | 19 | 24 |  | 42
Supranationals |  |  | 135 | 135
United Kingdom | 71 |  |  | 71
Germany |  | 52 |  | 52
France |  | 10 |  | 10
Total | 493 | 87 | 687 | 1,267

The listed equity investments of Sampo Group totalled
EUR 1,474 million at the end of year 2023 (2,884).
The geographical core of Sampo Group’s equity
investments is in the Nordic companies. The proportion
of Nordic companies’ equities corresponds to 50 per
cent of the total equity portfolio. This is in line with
Sampo Group’s investment strategy of focusing on
Nordic companies. However, these Nordic companies
are mainly competing in global markets, only a few are
operationally purely domestic companies. Hence, the
ultimate risk is not highly dependent on the Nordic
economies. A breakdown of the listed equity exposures
of Sampo Group is shown in the graph Breakdown of
listed equity investments by geographical regions,
Sampo Group, 31 December 2023 and 31 December
2022.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 167 |  |

Breakdown of listed equity investments by geographical regions
Sampo Group, 31 December 2023 and 31 December 2022

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 168 |  |

Largest holdings by single name
The largest exposures by individual issuers and
counterparties are presented in the tables Largest
exposures by issuer and asset class, Sampo Group 31
December 2023 and 31 December 2022.
Largest exposures by issuer and asset class
Sampo Group, 31 December 2023

Issuer | Total, EURm | % of total investment assets | Cash & short-term fixed income | Long-term fixed income, total | Long-term fixed income: Government guaranteed | Long-term fixed income: Covered bonds | Long-term fixed income: Senior bonds | Long-term fixed income: Tier 1 and Tier 2 | Equities | Uncolla- teralised part of derivatives
Nordea Bank | 959 | 6% | 284 | 672 | 0 | 489 | 125 | 57 | 0 | 2
Svenska Handelsbanken | 814 | 5% | 108 | 705 | 0 | 622 | 44 | 39 | 0 | 0
Swedbank | 713 | 4% | 0 | 713 | 0 | 589 | 99 | 25 | 0 | 0
Nykredit Realkredit A/S | 598 | 3% | 0 | 598 | 0 | 598 | 0 | 0 | 0 | 0
Realcredit Danmark | 592 | 3% | 0 | 592 | 0 | 592 | 0 | 0 | 0 | 0
Sweden | 552 | 3% | 0 | 552 | 0 | 0 | 552 | 0 | 0 | 0
NOBA | 471 | 3% | 0 | 46 | 0 | 0 | 34 | 12 | 425 | 0
Skandinaviska Enskilda Banken | 439 | 3% | 252 | 186 | 0 | 22 | 133 | 31 | 0 | 2
Danske Bank | 429 | 2% | 251 | 176 | 0 | 24 | 133 | 20 | 0 | 1
Norway | 391 | 2% | 0 | 391 | 0 | 0 | 391 | 0 | 0 | 0
Total top 10 exposures | 5,958 | 35% | 896 | 4,631 | 0 | 2,936 | 1,512 | 183 | 425 | 5
Other | 11,202 | 65% |  |  |  |  |  |  |  |
Total investment assets | 17,160 | 100% |  |  |  |  |  |  |  |

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 169 |  |

Largest exposures by issuer and asset class
Sampo Group, 31 December 2022

Issuer | Total, EURm | % of total investment assets | Cash & short-term fixed income | Long-term fixed income, total | Long-term fixed income: Government guaranteed | Long-term fixed income: Covered bonds | Long-term fixed income: Senior bonds | Long-term fixed income: Tier 1 and Tier 2 | Equities | Uncolla- teralised part of derivatives
Nordea Bank | 1,416 | 6% | 715 | 699 | 0 | 496 | 130 | 73 | 0 | 2
Skandinaviska Enskilda Banken | 818 | 4% | 639 | 178 | 0 | 65 | 93 | 20 | 0 | 1
Danske Bank | 801 | 4% | 516 | 286 | 0 | 119 | 137 | 29 | 0 | 0
Nykredit Realkredit A/S | 645 | 3% | 0 | 645 | 0 | 645 | 0 | 0 | 0 | 0
BNP Paribas | 601 | 3% | 541 | 60 | 0 | 0 | 60 | 0 | 0 | 0
Sweden | 588 | 3% | 0 | 588 | 0 | 0 | 588 | 0 | 0 | 0
Realkredit Danmark | 514 | 2% | 0 | 514 | 0 | 514 | 0 | 0 | 0 | 0
Nordax | 425 | 2% | 0 | 0 | 0 | 0 | 0 | 0 | 425 | 0
Norway | 369 | 2% | 0 | 369 | 0 | 0 | 369 | 0 | 0 | 0
Saxo Bank | 345 | 2% | 0 | 31 | 0 | 0 | 13 | 17 | 314 | 0
Total top 10 exposures | 6,522 | 29% | 2,411 | 3,368 | 0 | 1,840 | 1,389 | 140 | 739 | 3
Other | 15,824 | 71% |  |  |  |  |  |  |  |
Total investment assets | 22,346 | 100% |  |  |  |  |  |  |  |

The largest high-yield and non-rated fixed income
investment single-name exposures are presented in the
tables Ten largest direct high yield and non-rated fixed
income investments, Sampo Group, 31 December 2023
and 31 December 2022. Furthermore, the largest direct
listed equity exposures are presented in the tables Ten
largest direct listed equity investments, Sampo Group,
31 December 2023 and 31 December 2022.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 170 |  |

Ten largest direct high yield and non-rated fixed income investments and direct listed equity investments
Sampo Group, 31 December 2023

Ten largest direct high yield and non-rated fixed income investments | Rating | Total, EURm | % of total direct fixed income investments |  | Ten largest direct listed equity investments | Total, EURm | % of total direct equity investments
Saab | NR | 56 | 0,4 % |  | NOBA* | 425 | 19,3 %
NOBA | NR | 46 | 0,3 % |  | Saxo Bank* | 302 | 13,7 %
ALM Equity | NR | 38 | 0,3 % |  | Volvo | 180 | 8,2 %
Ellevio Holding 1 AB | NR | 35 | 0,2 % |  | Nexi S.p.A.** | 149 | 6,8 %
Visma Group Holding | NR | 35 | 0,2 % |  | ABB | 86 | 3,9 %
Altera Infrastructure Holdings LLC | NR | 30 | 0,2 % |  | Autoliv Inc | 64 | 2,9 %
Swedavia | NR | 30 | 0,2 % |  | Husqvarna | 59 | 2,7 %
Campus Byen A/S | NR | 29 | 0,2 % |  | Nederman Holding | 56 | 2,6 %
Resource Group TRG | NR | 27 | 0,2 % |  | Veidekke | 46 | 2,1 %
Huhtamaki | BB+ | 25 | 0,2 % |  | Volvo Cars | 38 | 1,7 %
Total top 10 exposures |  | 351 | 2,4 % |  | Total top 10 exposures | 1,405 | 63,8 %
Other direct fixed income investments |  | 13,980 | 97,6 % |  | Other direct equity investments | 797 | 36,2 %
Total direct fixed income investments |  | 14,331 | 100,0 % |  | Total direct equity investments | 2,202 | 100,0 %

* Although NOBA and Saxo Bank are not listed companies, they are major equity investments in Sampo plc's portfolio and are therefore included in the table.
** Investment in Nexi S.p.A is managed by HF Evergood
partners.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 171 |  |

Ten largest direct high yield and non-rated fixed income investments and direct listed equity investments
Sampo Group, 31 December 2022

Ten largest direct high yield and non-rated fixed income investments | Rating | Total, EURm | % of total direct fixed income investments |  | Ten largest direct listed equity investments | Total, EURm | % of total direct equity investments
Ellevio Holding 1 AB | NR | 60 | 0,4 % |  | Nordax* | 425 | 21,3 %
Teollisuuden Voima | BB+ | 54 | 0,3 % |  | Saxo Bank* | 314 | 15,7 %
Saab | NR | 53 | 0,3 % |  | Volvo | 131 | 6,6 %
Granite Debtco 9 Limited | NR | 49 | 0,3 % |  | ABB | 114 | 5,7 %
Granite Debtco 10 Limited | NR | 45 | 0,3 % |  | Enento Group | 62 | 3,1 %
Huhtamaki | BB+ | 44 | 0,3 % |  | Volvo Car | 55 | 2,8 %
ALM Equity | NR | 43 | 0,3 % |  | Nederman Holding | 54 | 2,7 %
Pohjolan Voima | NR | 41 | 0,3 % |  | Husqvarna | 52 | 2,6 %
Visma Group Holding | NR | 36 | 0,2 % |  | Vaisala | 50 | 2,5 %
Schibsted | NR | 35 | 0,2 % |  | Yara International | 48 | 2,4 %
Total top 10 exposures |  | 459 | 2,8 % |  | Total top 10 exposures | 1,306 | 65,5 %
Other direct fixed income investments |  | 15,790 | 97,2 % |  | Other direct equity investments | 689 | 34,5 %
Total direct fixed income investments |  | 16,249 | 100,0 % |  | Total direct equity investments | 1,995 | 100,0 %

The exposures in fixed income instruments issued by
non-investment grade issuers are significant, because a
relatively small number of Nordic companies are rated.
Furthermore, many of the Nordic rated companies have
a high yield rating.
Balance sheet concentrations
In general, Sampo Group is structurally dependent on
the performance of the Nordic economies as already
described earlier. Sampo Group is also economically
exposed to a fall in interest rates. This follows from the
duration of insurance liabilities being longer than fixed
income asset duration in If. In Topdanmark and Hastings
interest rate risk of the balance sheet is limited and
hence Topdanmark or Hastings are not increasing
interest rate risk materially at the Group level.
Sampo Group benefits when interest rates rise, as the
economic value of insurance liabilities decreases more
than the value of assets backing them.
Market risks at If Group
The total market value of If’s investment portfolio at 31
December 2023 was EUR 11,156 million (10,719). A large
part of the fixed income portfolio was concentrated to
corporate bonds issued by financial institutions and
bank account balances amounted to 29.6 per cent of
the fixed income portfolio. When including covered
bonds, the concentration to financial institutions was
52.0 per cent. The remainder of the fixed income
portfolio consists of exposure to other sectors with real
estate representing the second largest concentration of
6.3 per cent.
The composition of the If investment portfolios by asset
class at year end 2023 and at year end 2022 as well as
average maturities of fixed income investments, are
shown in the table Investment allocation, If, 31
December 2023 and 31 December 2022.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 172 |  |

Investment allocation
If, 31 December 2023 and 31 December 2022

| 2023 | 2022
Asset class | Market value, EURm | Weight, % | Average maturity, years | Market value, EURm | Weight, % | Average maturity, years
Fixed income total | 9,905 | 89% | 3.1 | 9,541 | 89% | 2.9
Money market securities and cash | 240 | 2% | 0.0 | 272 | 3% | 0.0
Government bonds | 1,065 | 10% | 3.7 | 1,030 | 10% | 3.5
Credit bonds, funds and loans | 8,600 | 77% | 3.2 | 8,239 | 77% | 2.9
Covered bonds | 2,181 | 20% | 2.8 | 2,505 | 23% | 3.0
Investment grade bonds and loans | 4,327 | 39% | 3.5 | 3,649 | 34% | 2.8
High-yield bonds and loans | 1,137 | 10% | 2.8 | 1,088 | 10% | 2.7
Subordinated / Tier 2 | 490 | 4% | 3.0 | 555 | 5% | 2.9
Subordinated / Tier 1 | 466 | 4% | 2.9 | 442 | 4% | 3.0
Hedging swaps | 0 | 0% | - | 0 | 0% | -
Listed equity total | 1,244 | 11% | - | 1,169 | 11% | -
Finland | 0 | 0% | - | 0 | 0% | -
Scandinavia | 718 | 6% | - | 630 | 6% | -
Global | 526 | 5% | - | 539 | 5% | -
Alternative investments total | 5 | 0% | - | 5 | 0% | -
Real estate | 0 | 0% | - | 1 | 0% | -
Private equity | 4 | 0% | - | 4 | 0% | -
Biometric | 0 | 0% | - | 0 | 0% | -
Commodities | 0 | 0% | - | 0 | 0% | -
Other alternative | 0 | 0% | - | 0 | 0% | -
Trading derivatives | 2 | 0% | - | 4 | 0% | -
Asset classes total | 11,156 | 100% | - | 10,719 | 100% | -
FX Exposure, gross position | 134 | - | - | 73 | - | -

If’s investment management strategy is conservative,
with a low equity share and low fixed-income duration.
The Investment Policy is the principal document for
managing market risk. If also has a separate
Responsible Investment Policy, expanding the scope of
the responsible investment processes and increasing
alignment across the Sampo Group. Both investment
performance and market risk are actively monitored
and controlled by the Investment Control Committee
monthly. Other limits, such as the allocation limits, issuer
and counterparty limits, sensitivity limits for interest
rates and credit spreads as well as the regulatory capital
requirements are regularly monitored.
Market risks of balance sheet
Asset and liability management risk
If's exposure to ALM risk arises mainly from changes in
interest rates, inflation, and currency movements. The
ALM risk is considered through the risk appetite
framework and its management and governance are
based on If’s investment policies. To maintain the ALM
risk within the overall risk appetite, the insurance
liabilities may be matched by investing in appropriate

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 173 |  |

fixed income instruments and by using currency and
interest rate derivatives.
Interest rate risk
If's exposure to interest rate risk from insurance
contracts issued and reinsurance contracts held arises
from the net liability for incurred claims, where future
claims payments are discounted to a present value and
therefore impacted by changes in discount rates. The
duration sensitivity to changes in interest rates in the
net liability for incurred claims is analysed in the
Reserve risk section. For more information see the
table s Sensitivity analysis, reserve risk, If, 2023 and
2022 in the section Underwriting risks.
If’s exposure to interest rate risk from financial
instruments arises primarily from fixed income
investments.
If is negatively affected when interest rates are
decreasing, as the duration of insurance liabilities is
longer than the duration of investment assets. During
2023 interest rates maintained their higher level
compared to recent history and If invested in
instruments with somewhat longer maturities. Interest
rate sensitivity in terms of the average duration of fixed
income investments was 2.4 years on 31 December
2023 (1.9). The respective duration of insurance
liabilities was 6.2 years (6.0). However, the fixed income
portfolio is significantly larger than the amount of
insurance liabilities which mitigates the duration
mismatch respectively.
Interest rate risk relating to insurance liabilities is, in
accordance with the Investment Policy, considered in
the composition of investment assets. The overall
interest rate risk is managed by sensitivity limits for
instruments sensitive to interest rate changes.
Currency risk
If writes insurance policies that are mostly denominated
in the Scandinavian currencies and in euro. Currency
risk is reduced by matching insurance liabilities with
investment assets in corresponding currencies or by
using currency derivatives. The currency exposure in
insurance operations is hedged to the base currency on
a regular basis. The currency exposure in investment
assets is monitored weekly and hedged when the
exposure has reached a specific level, set with respect
to cost efficiency and minimum transaction size. An
active currency management can be performed within
set limits. The transaction risk positions against the
Swedish krona are shown in the tables Transaction risk
position, If, 31 December 2023 and 31 December 2022.
The tables show the net transaction risk exposures and
the changes in the value of positions given a 10 per cent
decrease in the value of the functional currency
Transaction risk position
If, 31 December 2023

Base currency SEK (in EURm) | EUR | USD | JPY | GBP | SEK | NOK | DKK | Other | Total, net
Insurance operations | -3,255 | -180 | 0 | -49 | 37 | -2,233 | -1,114 | -29 | -6,823
Investments | 3,091 | 319 | 0 | 24 | 113 | 1,869 | 187 | 0 | 5,604
Derivatives | 117 | -123 | 5 | 22 | -168 | 350 | 916 | 22 | 1,141
Transaction risk, net position | -47 | 15 | 5 | -4 | -18 | -13 | -11 | -7 | -79
Sensitivity: SEK -10% | -5 | 2 | 0 | 0 | -2 | -1 | -1 | -1 | -8

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 174 |  |

Transaction risk position
If, 31 December 2022

Base currency SEK (in EURm) | EUR | USD | JPY | GBP | SEK | NOK | DKK | Other | Total, net
Insurance operations | -3,739 | -185 | 0 | -33 | -11 | -2,318 | -1,029 | -28 | -7,342
Investments | 2,304 | 297 | 1 | 11 | 108 | 2,071 | 263 | 5 | 5,058
Derivatives | 1,370 | -113 | 13 | 16 | -78 | 229 | 760 | 15 | 2,211
Transaction risk, net position | -66 | -1 | 13 | -7 | 19 | -18 | -6 | -8 | -73
Sensitivity: SEK -10% | -7 | 0 | 1 | -1 | 2 | -2 | -1 | -1 | -7

The transaction risk position in SEK represents exposure in foreign subsidiaries/branches within If with a functional currency other than SEK.
In addition to transaction risk, If is also exposed to
translation risk which at a Group level stems from
foreign operations with other functional currencies than
SEK.
Liquidity risk
If’s liquidity risk is limited since premiums are collected
in advance and large claim payments are usually known
a long time before they fall due. The Cash Management
unit is responsible for liquidity planning. To identify
liquidity risk, expected cash flows from investment
assets and insurance liabilities are analysed regularly,
taking both normal market conditions and stressed
conditions into consideration. Liquidity risk is reduced
by investing in assets that are traded in liquid markets.
The maturities of cash flows from financial instruments,
insurance liabilities and reinsurance contracts are
presented in the tables Cash flows according to
contractual maturity, If, 31 December 2023 and 31
December 2022. The average maturity of fixed income
investments was 3.2 years (2.9). In the table, financial
assets and liabilities are divided into contracts with a
contractual maturity profile, and other contracts. Only
the carrying amount is shown for the other contracts.
The table also shows expected future cash flows for
insurance liabilities and reinsurance assets, which by
nature are inherently associated with a degree of
uncertainty.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 175 |  |

Cash flows according to contractual maturity
If, 31 December 2023

EURm | Carrying amount total | Carrying amount without contractual maturity | Carrying amount with contractual maturity | Cash flows
2024 | 2025 | 2026 | 2027 | 2028 | 2029- 2038 | 2039-
Financial assets | 11,296 | 1,485 | 9,812 | 1,605 | 1,835 | 2,142 | 2,561 | 1,400 | 1,487 | 0
Financial assets (non-derivatives) | 11,275 | 1,485 | 9,791 | 1,585 | 1,835 | 2,142 | 2,561 | 1,400 | 1,487 | 0
Interest rate swaps | 2 | 0 | 2 | 2 |  |  |  |  |  |
FX derivatives | 19 | 0 | 19 | 19 |  |  |  |  |  |
Asset for incurred claims | 527 | 0 | 527 | 328 | 108 | 44 | 19 | 11 | 18 | 1
Financial liabilities | -550 | 0 | -550 | -402 | -31 | -137 | 0 | 0 | 0 | 0
Financial liabilities (non-derivatives) | -492 |  | -492 | -344 | -31 | -137 | 0 | 0 | 0 | 0
Interest rate swaps |  |  |  |  |  |  |  |  |  |
FX derivatives | -58 | 0 | -58 | -58 | 0 | 0 | 0 | 0 | 0 | 0
Lease liabilities | -148 | 0 | -148 | -27 | -26 | -23 | -20 | -14 | -47 | 0
Liability for incurred claims and other insurance related payables | -6,443 | 0 | -6,443 | -2,483 | -794 | -471 | -339 | -262 | -1,301 | -795

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 176 |  |

Cash flows according to contractual maturity
If, 31 December 2022

EURm | Carrying amount total | Carrying amount without contractual maturity | Carrying amount with contractual maturity | Cash flows
2023 | 2024 | 2025 | 2026 | 2027 | 2028- 2037 | 2038-
Financial assets | 10,943 | 1,464 | 9,479 | 1,647 | 2,178 | 1,811 | 2,023 | 2,266 | 862 | 0
Financial assets (non-derivatives) | 10,888 | 1,464 | 9,424 | 1,596 | 2,177 | 1,811 | 2,023 | 2,266 | 862 | 0
Interest rate swaps | 4 | 0 | 4 | 3 | 1 | 0 | 0 | 0 | 0 | 0
FX derivatives | 50 | 0 | 50 | 48 | 0 | 0 | 0 | 0 | 0 | 0
Asset for incurred claims | 236 | 0 | 236 | 127 | 48 | 24 | 13 | 8 | 15 | 1
Financial liabilities | -628 | -48 | -580 | -436 | -8 | -35 | -138 | 0 | 0 | 0
Financial liabilities (non-derivatives) | -621 | -48 | -573 | -429 | -8 | -35 | -138 | 0 | 0 | 0
Interest rate swaps |  |  |  |  |  |  |  |  |  |
FX derivatives | -7 | 0 | -7 | -6 | 0 | 0 | 0 | 0 | 0 | 0
Lease liabilities | -160 | 0 | -160 | -26 | -23 | -23 | -22 | -18 | -59 | 0
Liability for incurred claims and other insurance related payables | -6,014 | 0 | -6,014 | -2,215 | -734 | -469 | -334 | -271 | -1,248 | -743

In the table, financial assets and liabilities are divided
into contracts that have an exact contractual maturity
profile, and other contracts. Only the carrying amount is
shown for the other contracts. In addition, the table
shows expected cash flows for net technical provisions,
which by their nature, are associated with a certain
degree of uncertainty. Cashflows related to assets
without contractual maturity are not included in the
table, although they are covering the 2023 cashflows,
which in the table are negative..
Market risks at Topdanmark Group
In general, long-term value creation shall be based
mainly on the acceptance of insurance risks. To
supplement the profit from insurance activities,
Topdanmark accepts a certain level of market risks,
given its strong liquidity position and stable, high
earnings from insurance operations. Hence, in addition
to fixed income instruments, Topdanmark has invested,
among other things, in equities and fixed income assets
to improve the average investment return.
Market risks are kept on an appropriate level in order to
limit negative profit and loss effects to very
unfavourable financial market scenarios. The investment
portfolio shall be managed to ensure that market risks
will not endanger the insurance operations even in
unfavourable market conditions.
To achieve company level targets, the investment policy
sets the company's objectives, strategies, organisation,
and reporting practices on investments. The investment
strategy is more precisely determined in terms of
market risk limits and specific requirements for certain
investments and sub-portfolios (risk appetite). The
investment strategy is determined by the Board and
revised at least once a year. Appropriate financial risk
mitigation techniques are used.
When selecting the investment assets, a portfolio
composition that matches the risk features of the
corresponding liabilities is sought. The purpose of the
investment policy is also to ensure that the company
has effectively implemented the organisation, systems,
and processes necessary to identify, measure, monitor,
manage and report on investment risks to which it is
exposed.
When market risks are measured and managed, all
exposures are included, regardless of whether they
arise from active portfolio management of investments
or from annuities, which are considered market ris k.
As of 1 December 2022, when the closing deal between
Topdanmark Forsikring and Nordea was finalised, the
new investment department took over all front office
capabilities for Topdanmark Forsikring. The investment
policy and thereby the overall risk profile and strategic
asset allocation is mainly unchanged. However, the

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| FINANCIAL STATEMENTS 2023 | 177 |  |

investment strategy has been altered. As part of the
closing deal, the co-investing arrangement between
Topdanmark Forsikring and Topdanmark Livsforsikring
has been terminated. The exposures have been shifted
to ETFs (Exchange Traded Funds). The original asset
classes and geographical exposures are unchanged. The
CLO-portfolio has been sold. The credit exposure is
managed through a High Yield ETF (EUR).
The purpose of these changes is to keep the risk profile
unchanged and use index trackers to have the right
exposures that comply with the set risk limits, ESG
policy etc.
Investment allocation
Topdanmark, 31 December 2023 and 31 December 2022

| Topdanmark
| 31 Dec 2023 | 31 Dec 2022
Asset class | Market value, EURm | Weight, % | Market value, EURm | Weight,%
Fixed income total | 1,898 | 94% | 2,422 | 94%
Money market securities and cash | 1 | 0% | 544 | 21%
Government and mortgage bonds | 1,766 | 88% | 1,722 | 67%
Credit bonds | 43 | 2% | 39 | 2%
Index-linked bonds | 88 | 4% | 91 | 4%
CLOs | 0 | 0% | 26 | 1%
Listed equity total | 81 | 4% | 111 | 4%
Denmark | 15 | 1% | 25 | 1%
Scandinavia | 2 | 0% | 2 | 0%
Global | 64 | 3% | 85 | 3%
Alternative investments total | 34 | 2% | 35 | 1%
Real estate | 0 | 0% | 0 | 0%
Unlisted equities and hedge funds | 34 | 2% | 35 | 1%
Trading derivatives | 1 | 0% | 1 | 0%
Asset classes total | 2,014 | 100% | 2,569 | 100%

The exposure in equities outside Denmark and credit bonds has been adjusted by the use of derivatives. Unlisted equities and hedge funds include also private equity and direct holdings in non-listed
equities
The equity portfolios, excluding associated companies,
are well-diversified and without large concentrations.
Investment assets are mostly comprised of government
and Danish mortgage bonds. These assets are interest
rate sensitive and to a significant extent equivalent to
the total interest rate sensitivity of the non-life
insurance liabilities. Consequently, the return on
government and mortgage bonds should be assessed in
connection with return and revaluation of non-life
insurance liabilities.
The small allocation to credit bonds is primarily exposed
to European issuers.
Index-linked bonds comprise primarily Danish mortgage
bonds for which the coupon and principal are index-
linked.

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| FINANCIAL STATEMENTS 2023 | 178 |  |

Market risks of balance sheet
Interest rate risk
Interest rate risk is calculated for assets, liabilities, and
derivative instruments, for which the carrying amount is
dependent on the interest rate level. Regarding
insurance liabilities Topdanmark is exposed to interest
rate risk due to provisions for outstanding claims.
Shifting the market yield curve upwards and
downwards or changing its shape leads to changed
market values of assets and derivatives and thus to
unrealised gains or losses.
When assessing the value and sensitivity of insurance
provisions Topdanmark has used the Solvency II
discount curve that is based on the market yield curve.
Generally, the interest rate risk is limited and controlled
by investing in interest-bearing assets in order to
reduce the overall interest rate exposure of the assets
and liabilities to the desired level. Therefore, the Danish
mortgage bonds and government bonds have a central
role in the asset portfolios. To further reduce the
interest rate sensitivity of the balance sheet, interest
rate swaps have been used for hedging purposes.
Equity risk
The Danish part of the equity portfolio is based on the
OMXCCAP index and is approximated by the ETF Xact
OMXC25. The rest of the equity holdings are in the
foreign equity portfolio that seeks to track the MSCI
World DC index by the relevant geographical ETF in
USA, Europe and Japan. As a result, Topdanmark’s
equity holdings are well-diversified both in terms of
geographical and company-specific risks.
Real estate risk
Real estate risk is limited to properties in own use and
located in Ballerup and Viby. The properties are valued
in accordance with the rules of the Danish FSA i.e., at
market value taking the level of rent and the terms of
the tenancy agreements into consideration.
Spread risk
Most of Topdanmark's interest-bearing assets comprise
of AAA rated Danish mortgage bonds. The risk of credit
losses is minor due to the high credit quality of the
issuers and because investments have been made at
spreads that are in balance with Topdanmark’s desired
risk ratio levels. The portfolio is well-diversified by
issuer, issuer type and capital centres, and therefore, the
exposure to concentration risk is insignificant.
The investment policy stipulates that the portfolio must
be well-diversified by the number of counterparties and
by the amount of exposure to individual counterparties.
The main source of spread risk is the mortgage bonds.
Due to high allocation of these investments in the
portfolios, spread risk is the most material source of
market risk SCR.
Currency risk
In practice, the investment assets are the only source of
currency risk while the insurance liabilities are in Danish
krones. The currency risk is mitigated by derivatives and
net exposures in different currencies are minor except
in the euro.
The currency risk is assessed based on the SCR. The
value of the base currency is shocked by 25 per cent
against most of the currencies except against the euro
where the largest exposure exists, and the shock is 0.39
per cent, because the Danish krone is pegged to the
euro.
Inflation risk
Future inflation is implicitly included in the models
Topdanmark uses to calculate its insurance liabilities.
The insurance liabilities are calculated based on the
expected future indexation of wages and salaries.
An expected higher future inflation rate would generally
be included in the insurance liabilities with a certain
time delay, while at the same time the result would be
impacted by higher future indexation of premiums. To
reduce the risk of inflation within Workers'
compensation, Topdanmark uses index-linked bonds
and inflation derivatives to hedge a proportion of the
expected cash flows sensitive to future inflation. The
inflation sensitivity of capitalisation factors is not
hedged.

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| FINANCIAL STATEMENTS 2023 | 179 |  |

Liquidity risk
Topdanmark Group has a strong liquidity position.
Firstly, as premiums are paid in the beginning of the
coverage period, liquidity risk related to customers’
payments is very limited. Secondly, the nature of a
diversified insurance business means that it is highly
unlikely that a liquidity shock could occur. Insurance
liabilities are quite stable and on the investment side
money market investments are complemented by a
large portfolio of liquid listed Danish government and
mortgage bonds.
The maturities of cash flows from financial instruments,
insurance liabilities and reinsurance contracts are
presented in the table Cash flows according to
contractual maturity, Topdanmark, 31 December 2023. .
Cash flows according to contractual maturity
Topdanmark, 31 December 2023

EURm | Carrying amount total | Carrying amount without contractual maturity | Carrying amount with contractual maturity | Cash flows
2024 | 2025 | 2026 | 2027 | 2028 | 2029- 2038 | 2039-
Financial assets | 1,861 |  | 1,861 | 420 | 424 | 321 | 170 | 166 | 505 | 113
Financial assets (non-derivatives) | 1,859 |  | 1,859 | 420 | 424 | 321 | 170 | 166 | 504 | 113
Interest rate swaps | 1 |  | 1 | 0 | 0 | 0 | 0 | 0 | 1 | 0
FX forwards | 0 |  | 0 | 0 |  |  |  |  |  |
Asset for incurred claims | 79 |  | 79 | 58 | 9 | 4 | 3 | 2 | 4 |
Financial liabilities | 299 | 128 | 172 | 10 | 9 | 102 | 59 | 1 | 21 | 1
Financial liabilities (non-derivatives) | 275 | 128 | 148 | 9 | 7 | 101 | 57 |  |  |
Interest rate swaps | 24 |  | 24 | 1 | 2 | 1 | 1 | 1 | 21 | 1
FX derivatives | 0 |  | 0 | 0 |  |  |  |  |  |
Lease liabilities |  |  |  |  |  |  |  |  |  |
Liability for incurred claims and other insurance related payables | 1,582 |  | 1,582 | 603 | 249 | 183 | 118 | 87 | 303 | 184

Market risks at Hastings Group
Hastings’ investment portfolio has been designed to
generate a targeted return whilst operating within the
conservative risk appetite parameters set by the Board.
Management aims to prudently operate within its risk
appetite. The risk appetite includes a low appetite for
losses arising from volatility of market prices affecting
values of assets and liabilities and for assets not
matching the profile of liabilities. As a result,
the investment strategy includes only a very limited
amount of equity exposure.
The total market value of Hastings' investment portfolio
at 31 December 2023 was EUR 1,680 million (1,320). The
investment portfolio was dominated by investment
grade fixed income investments, which comprised 69
per cent of total investment assets. The rest was
invested in money market securities and cash
amounting to 27 per cent, and high yield and alternative
investments with a combined allocation of 4 per cent.
The composition of the Hastings investment portfolios
by asset class at year end 2023 and at year end 2022 as
well as average maturities of fixed income investments,
are shown in the table Investment allocation, Hastings,
31 December 2023 and 31 December 2022.

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| FINANCIAL STATEMENTS 2023 | 180 |  |

Investment allocation
Hastings, 31 December 2023 and 31 December 2022

| 2023 | 2022
Asset class | Market value, EURm | Weight, % | Average maturity, years | Market value, EURm | Weight, % | Average maturity, years
Fixed income total | 1,646 | 98% | 2.2 | 1,287 | 98% | 3.3
Money market securities and cash | 448 | 27% | 0.0 | 246 | 19% | 0.0
Government bonds | 0 | 0% | 3.9 | 71 | 5% | 0.1
Credit bonds, funds, and loans | 1,198 | 71% | 3.0 | 970 | 74% | 4.3
Covered bonds | 0 | 0% | 0.0 | 0 | 0% | 0.0
Investment grade bonds and loans | 1,164 | 69% | 5.0 | 954 | 72% | 4.4
High-yield bonds and loans | 27 | 2% | 4.9 | 16 | 1% | 4.0
Subordinated / Tier 2 | 7 | 0% | — | 0 | 0% | —
Subordinated / Tier 1 | 0 | 0% | — | 0 | 0% | —
Hedging swaps | 0 | 0% | — | 0 | 0% | —
Listed equity total | 0 | 0% | — | 0 | 0% | —
UK | 0 | 0% | — | 0 | 0% | —
Global | 0 | 0% | — | 0 | 0% | —
Alternative investments total | 34 | 2% | — | 32 | 2% | —
Real estate | 0 | 0% | — | 0 | 0% | —
Private equity | 0 | 0% | — | 0 | 0% | —
Biometric | 0 | 0% | — | 0 | 0% | —
Commodities | 0 | 0% | — | 0 | 0% | —
Other alternative | 34 | 2% | — | 32 | 2% | —
Trading derivatives | 0 | 0% | — | 0 | 0% | —
Asset classes total | 1,680 | 100% | — | 1,320 | 100% | —
FX Exposure, gross position | 0 | —% |  | 0 | —% | —

The core investment portfolio of debt securities,
supplemented by a diversified portfolio of holdings in
collective investment schemes, is held by Advantage.
The Advantage Board works with the investment
managers and investment consultants to maximise
return whilst minimising risk and preserving capital. The
criteria for the portfolio structure, classes of holdings
and individual limits are consistent with a very low risk
appetite. These investment rules are monitored on a
quarterly basis internally and using an external
consultancy. The monitoring outputs are provided to
the Investment Committee and Risk & Compliance
Committee quarterly.
Advantage made no direct use of derivatives during the
period. Derivatives are, however, utilised within
Investment Funds in which Advantage has a share, both
for hedging purposes and to generate additional return.
Interest rate risk
Hastings manages balance sheet interest rate risk
principally through matched duration of assets and
liabilities, meaning that interest rates are aligned as far
as possible, and interest rate risk is reduced. This is
monitored in the quarterly Investment Committee
meetings and includes adherence to tight duration
mismatch tolerances which form part of the relevant
risk appetite statement.
Liquidity risks
Hastings maintains a short duration and highly liquid
portfolio, in line with its low risk appetite. Liquidity Risk
is largely managed at Advantage. Cash and cash

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| FINANCIAL STATEMENTS 2023 | 181 |  |

equivalent balances are held in current accounts or
short-term money market instruments. These are
generally less than 60 days in duration, with low
sensitivity to movements in interest rates compared to
longer duration assets.
The liquidity profile and cashflow of investments is
monitored at the quarterly Investment Committee to
ensure Advantage can meet its liabilities into the future.
Advantage’s investment managers actively manage
liquidity risk in the portfolio to ensure that bonds can be
sold efficiently to meet cash needs. Informed by market
data, they look to purchase bonds with less than 5 years
since issue date, larger issue sizes and which trade
regularly. Liquidity scoring is conducted by
Advantage’s investment managers, based on time since
issue, issue size, traded volumes and observed bid-ask
spreads.
Cash flows according to contractual maturity
Hastings, 31 December 2023

EURm | Carrying amount total | Carrying amount without contractual maturity | Carrying amount with contractual maturity | Cash flows
2024 | 2025 | 2026 | 2027 | 2028 | 2029- 2038 | 2039-
Financial assets | 1,869 | 704 | 1,165 | 143 | 341 | 349 | 179 | 154 | 0 | 0
Financial assets (non-derivatives) | 1,869 | 704 | 1,165 | 143 | 341 | 349 | 179 | 154 | 0 | 0
Interest rate swaps | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
FX forwards | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Asset for incurred claims | 1,333 | 1,333 | 0 | 349 | 236 | 183 | 61 | 96 | 169 | 240
Financial liabilities | 187 | 0 | 187 | 73 | 71 | 43 | 0 | 0 | 0 | 0
Financial liabilities (non-derivatives) | 185 | 0 | 185 | 71 | 71 | 43 | 0 | 0 | 0 | 0
Interest rate swaps | 2 | 0 | 2 | 2 | 0 | 0 | 0 | 0 | 0 | 0
FX derivatives | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Lease liabilities | 10 | 0 | 10 | 6 | 3 | 1 | 0 | 0 | 0 | 0
Liability for incurred claims and other insurance related payables | 2,125 | 2,125 | 0 | 670 | 404 | 302 | 127 | 137 | 211 | 275

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| FINANCIAL STATEMENTS 2023 | 182 |  |

Counterparty risks at If Group
In If, the major sources of counterparty risk stem from
reinsurance recoverables, bank balances, financial
derivatives, and other receivables.
Counterparty default risk arising from receivables from
policyholders and other receivables related to
commercial transactions is limited, as non-payment of
premiums generally results in cancellation of insurance
policies.
Reinsurance counterparty risk
Reinsurance is used regularly to utilise If’s own funds
efficiently, reduce the cost of capital, limit large
fluctuations of underwriting results, and to have access
to reinsurers’ competence base.
The distribution of reinsurance recoverables and pooled
solutions is presented in the table below. In the table,
EUR 206 (151) million is excluded, which mainly relates
to captives and statutory pool solutions.
Reinsurance recoverables and pooled solutions
If, 31 December 2023 and 31 December 2022

| 31 Dec 2023 | 31 Dec 2022
Rating | Total EURm | % of total | Total EURm | % of total
AAA | 0 | 0% | 0 | 0%
AA+ - A- | 450 | 100% | 134 | 100%
BBB+ - BBB- | 0 | 0% | 0 | 0%
BB+ - C | 0 | 0% | 0 | 0%
D | 0 | 0% | 0 | 0%
Non-rated | 0 | 0% | 0 | 0%
Total | 450 | 100% | 135 | 100%

The amount of the recoverables reported above is
exposed to counterparty risk as recoverables are
typically not covered by collaterals.
If’s Reinsurance Policy sets requirements for the
reinsurers’ minimum financial strength rating and the
maximum exposure limits to individual reinsurers. In
addition, internal credit risk analysis plays a central role
when counterparties are approved.
The Reinsurance Committee is a collaboration forum
with the role to secure appropriate reinsurance cover
for insurance risk in accordance with If’s risk appetite
and provides an opinion as well as proposes actions in
respect of such issues.
The Reinsurance Security Committee in If shall give
input and suggestions in respect to various issues
regarding reinsurance default risk and risk exposure, as
well as proposed deviations from the Reinsurance
Policy.
Reinsurance assets for incurred claims for the ten
largest reinsurer counterparties amounted to EUR 272
(144) million, representing 52 (61) per cent of the total
reinsurance assets for incurred claims. Out of the ten
largest reinsurer counterparties, 59 (32) per cent of the
reinsurers had an A rating or higher, while the rest were
from non-rated captives.
The total ceded written premium related to treaty and
facultative reinsurance agreements amounted to EUR
89 (82) million.
Counterparty risk related to financial derivatives
In If, the default risk of derivative counterparties is a by-
product of managing market risks. The role of long-term
interest rate derivatives has been immaterial and
counterparty risk mainly stems from short-term FX
derivatives. The counterparty risk of bilaterally settled
derivatives is mitigated by a careful selection and
diversification of counterparties to prevent risk
concentrations and by using collateral techniques, e.g.
ISDA Master Agreements backed by Credit Support
Annexes. If settles interest rate swaps in central clearing

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| FINANCIAL STATEMENTS 2023 | 183 |  |

houses, which mitigates bilateral counterparty risk but
also results in a systemic risk exposure related to
centralised clearing parties.
Counterparty risks at Topdanmark Group
Topdanmark is exposed to counterparty risk in both its
insurance and investment activities. The default risk
related to fixed income and equity investments is
covered by spread-risk and equity-risk models in SCR
calculations and hence they are not discussed in this
context.
The main sources of counterparty risk are deposits
made to individual banks, derivative contracts with
banks and current receivables from reinsurance
companies with the addition of potential receivables
that will arise in case of a 1-in-200-year catastrophe
event. Topdanmark's counterparty risk is assessed by
the SCR standard formula
Reinsurance
Within insurance activities the reinsurance companies'
ability to pay is the most important counterparty risk
factor. Topdanmark minimises this risk by primarily
buying reinsurance cover from reinsurance companies
with a minimum rating of A- and by spreading
reinsurance cover over many reinsurers.
For reinsurance counterparties, the Board approves
security guidelines which determine the maximum size
of reinsurance contract cover per a separate reinsurer.
This portion is dependent on the reinsurer's rating as
well as on Topdanmark’s own assessment of the
reinsurer. The largest risk concentrations may occur in
case of major catastrophe events, including storms and
cloudbursts.
Investments
Topdanmark may suffer losses due to their
counterparties’ inability to meet their obligations on
bonds, loans, and other contracts including derivatives.
The majority of Topdanmark’s interest bearing assets
comprise of Danish mortgage bonds.
To limit the counterparty risk of financial contracts,
including derivative contracts, the choice of
counterparties is restrictive, and collateral is required
when the value of the financial contracts exceeds the
predetermined limits. The size of the limits depends on
the counterparty's credit rating and the terms of the
contract.
Counterparty risks at Hastings Group
Hastings is exposed to counterparty risk through
reinsurance assets, financial assets and cash and cash
equivalents. A number of controls exist within the
Hastings Group to mitigate against counterparty
default, such as annual reviews of reinsurance panels,
credit rating tolerances in line with a low-risk appetite,
and a low-risk, diversified investment portfolio..
Reinsurance counterparty risk
A key component of risk mitigation is reinsurance.
Advantage manages the tender of the reinsurance
programme, which consists of both non-capitalised
Excess of Loss (“XoL”) and Quota Share (“QS”)
protection. Under the 2023 arrangements, the Motor
exposure risk to Advantage is capped at GBP 1 million
per loss, net of XoL reinsurance, and Household
exposure is capped at GBP 16.0 million (approximately
EUR 18.4 million) per event loss. In 2023, the
Advantage Board reduced the motor QS participation
from 35 per cent to 30 per cent, driven principally by a
change in risk appetite. Advantage’s reinsurance
strategy will continue to be reviewed in line with risk
appetite.

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| FINANCIAL STATEMENTS 2023 | 184 |  |

Reinsurance recoverables
Hastings, 31 December 2023 and 31 December 2022

| 2023 | 2022
Rating | Total, EURm | % of total | Total, EURm | % of total
AAA | 0 | 0% | 0 | 0%
AA | 1,031 | 63% | 962 | 65%
A | 608 | 37% | 512 | 35%
BBB | 2 | 0% | 3 | 0%
Less than BBB | 0 | 0% | 0 | 0%
Unrated | 0 | 0% | 0 | 0%
Total | 1,640 | 100% | 1,477 | 100%

To mitigate the inherent counterparty and credit risk
posed by the reinsurance programme to Advantage’s
balance sheet, Advantage has set criteria for the
minimum credit quality of the reinsurance
counterparties and for concentration limits. These
tolerances are monitored and mitigated on a continual
basis, with line of sight to the Board quarterly, or ad-hoc
as needed.
To better protect itself where possible, Advantage aims
to:
• place with parent entities within reinsurance groups
to mitigate counterparty risk in accepting reinsurance
from small regional branches
• introduce collateralisation or cut through terms and/
or parental guarantees to mitigate counterparty risk
• ensure special termination clauses are in place in the
event of rating downgrade or reorganisation of
reinsurance groups to which Advantage is exposed

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| FINANCIAL STATEMENTS 2023 | 185 |  |

Capitalisation
Sampo’s core business competences are skilful pricing
of risks inherent in business operations and high-quality
management of arising risk-exposures and capital
needed to cover these risks. A balance between
earnings, risks, and capital contributes positively to
return on equity and to stakeholder confidence,
facilitating the creation of shareholder value.
Sampo plc is responsible for the group’s capital
management activities. These actions are guided by
targets set for group-level solvency and financial
leverage and they include decisions on group-level
investment exposures, business growth and
performance targets, reinsurance strategies, capital
distributions, and capital instrument issuances.
Group level capitalisation is managed within Sampo’s
capital management framework, which sets targets for
solvency and informs potential risk management
actions.
Group-level capitalisation and the factors affecting it
are illustrated in the graph Sampo Group’s capitalisation
framework.
Sampo Group’s capitalisation framework

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| FINANCIAL STATEMENTS 2023 | 186 |  |

The Group’s capital requirement is dependent mainly on
the capital requirements of the sub-groups and
investments in the Nordic financial service companies
on Sampo plc's balance sheet. Otherwise, the parent
company’s contribution to the Group capital need is
relatively small, because Sampo plc does not have any
business activities of its own other than the
management of its capital structure and liquidity
portfolio.
Diversification benefit exists at two levels, within the
companies and between the companies. The former is
included in the companies’ solvency capital requirement
(SCR).
Conceptually, the Group’s own funds equals the
difference between the market value of assets and
liabilities plus the subordinated liabilities. This difference
has accrued during the lifetime of the Group and it
includes the following main components:
• accrued profits that have not been paid as dividends
over the years
• valuation differences between IFRS and Solvency II
• issued capital and subordinated liabilities meeting
Solvency II requirements.
At the Group level, the capital requirement and own
funds are both exposed to foreign currency translation
risk. The actual capital and the capital needs of If,
Topdanmark, and Hastings are converted from their
reporting currencies to the euro. When the reporting
currencies of If, Topdanmark, and Hastings depreciate,
the actual amount of the Group’s capital in euros
decreases and the capital requirements of If,
Topdanmark, and Hastings will be lower in euro terms.
Translation currency risk is monitored internally and its
effect on Sampo Group’s solvency on a going concern
basis is analysed regularly. However, internally no
capital need is set for translation risk, because it is
realised only when a sub-group is divested.
The Group-level buffers equal in total to the difference
between the amount of the Group’s own funds and the
Group capital requirement. In addition to sub-group
level factors – expected profits and their volatility,
business growth prospects, volatility of the balance
sheet due to fluctuations in the market value of
investments and insurance liabilities, and ability to issue
Solvency II compliant capital instruments – there are
factors that are additionally relevant when considering
the size of the Group-level buffers. The most material of
them are correlation of sub-groups’ profits, parent
company’s capacity to generate liquidity, probability of
business arrangements and shareholders’ dividend
expectations.
The role of Sampo plc
As the Group’s holding company, Sampo plc is
responsible for the Group’s capital management
activities. These actions are guided by targets set for
group-level solvency and financial leverage and they
include decisions on group-level investment exposures,
business growth and performance targets, reinsurance
strategies, capital distributions and capital instrument
issuances. In addition, group-level risk accumulations
and concentrations are monitored regularly and
managed by adjusting aggregated risks where
necessary.
The parent company Sampo plc is also a source of
liquidity within the Group. Hence, the healthy funding
structure and the capacity to generate funds if needed
are a continuous focus. Sampo plc needs liquidity to
manage the group’s financing needs, enable dividend
security and to finance potential transactions. Sampo
plc funding is mainly limited to internal dividends and
investment returns but can periodically be
complemented with new debt and capital or asset sales.
Hence, holding company liquidity needs to be managed
holistically together with the dividend policy, strategic
ambitions, and balance sheet targets.
As at 31 December 2023, Sampo had long-term
strategic holdings of EUR 5,635 million in the subsidiary
companies and they were funded mainly by capital of
EUR 5,465 million. Sampo plc had outstanding senior
debt of EUR 959 million and subordinated debt of EUR
1,490 million. Average remaining maturity of senior debt
was 4.8 years and EUR 395 million of it had a maturity
longer than five years. Funding structure of strategic
holdings and other holdings can be considered strong.
The capacity to generate funds is dependent on
leverage and liquidity buffers which can be inferred
from the table Balance sheet structure, Sampo plc, 31
December 2023 and 31 December 2022.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 187 |  |

Balance sheet structure
Sampo plc, 31 December 2023 and 31 December
2022

EURm | 31 Dec 2023 | 31 Dec 2022
Assets total | 7,990 | 9,685
Liquidity | 1,352 | 2,467
Investment assets | 979 | 990
Other investments | 2 | 2
Fixed income | 101 | 27
Equity & private equity | 876 | 961
Subordinated loans | 0 | 100
Equity holdings | 5,635 | 6,066
Subsidiaries | 5,635 | 6,066
Associated | 0 | 0
Other assets | 24 | 62
EURm | 31 Dec 2023 | 31 Dec 2022
Liabilities total | 7,990 | 9,685
CPs issued | 0 | 0
Long-term senior debt | 959 | 1,306
Private placements | 2 | 21
Bonds issued | 957 | 1,285
Subordinated debt | 1,490 | 1,489
Capital | 5,465 | 6,814
Undistributable capital | 98 | 98
Distributable capital | 5,367 | 6,716
Other liabilities | 76 | 77

The leverage of Sampo plc was moderate at year end
according to for example these measures:
• The financial leverage measured as the portion
of debt within all liabilities was 31 (29) per cent.
• Sampo’s net debt is EUR 996 (201) million.
Regarding liquidity, Sampo plc held EUR 1,352 (2,467)
million in bank account balances and short-term money
market investments. Liquidity is mainly affected by
received and paid dividends as well as changes in
issued debt instruments and changes in investments.
Sampo’s dividend payment takes place in May and it will
significantly lower the liquidity position of the holding
company. A part of the investment assets (979) can be
sold in case liquidity is needed. Short-term liquidity can
be considered adequate.
All in all, Sampo plc is in a good position to refinance its
current debt and even issue more debt. This capacity
together with the tradable financial assets means that
Sampo plc can generate liquid funds.
Sampo plc is able to balance risks within Sampo Group.
When Sampo plc is managing its funding, capital
structure, and liquidity, it takes into account that some
of its operative companies have other base currencies
than the euro (the Swedish krona, the Danish krone,
pound sterling), and are exposed to lower interest rates.
These risks may affect Sampo’s decisions on the
issuance of debt instruments and the composition of
the liquidity portfolio.
The maturities of financial assets and liabilities and lease
liabilities are presented in the table Cash flows
according to contractual maturity, Sampo plc, 31
December 202 3 and 31 December 2022.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 188 |  |

Cash flows according to contractual maturity
Sampo plc, 31 December 2023 and 31 December 2022

31 Dec 2023 | Carrying amount total | Cash flows
EURm | Carrying amount total | Carrying amount without contractual maturity | Carrying amount with contractual maturity | 2024 | 2025 | 2026 | 2027 | 2028 | 2029- 2038 | 2039-
Financial assets | 2,325 | 1,623 | 702 | 617 | 14 | 2 | 2 | 30 | 65 | 0
Financial assets (non-derivatives) | 2,325 | 1,623 | 702 | 617 | 14 | 2 | 2 | 30 | 65 | 0
Interest rate swaps | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
FX forwards | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Asset for incurred claims | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Financial liabilities | 2,527 | 0 | 2,527 | -72 | -223 | -59 | -59 | -475 | -2,032 | 0
Financial liabilities (non-derivatives) | 2,507 | 0 | 2,507 | -70 | -223 | -59 | -59 | -461 | -2,032 | 0
Interest rate swaps | 20 | 0 | 20 | -2 | 0 | 0 | 0 | -14 | 0 | 0
FX derivatives | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Lease liabilities | 2 | 0 | 2 | -1 | 1 | 0 | 0 | 0 | 0 | 0
Liability for incurred claims and other insurance related payables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0

31 Dec 2022 | Carrying amount total | Cash flows
EURm | Carrying amount total | Carrying amount without contractual maturity | Carrying amount with contractual maturity | 2023 | 2024 | 2025 | 2026 | 2027 | 2028- 2037 | 2038-
Financial assets | 3,596 | 2,799 | 797 | 688 | 24 | 8 | 8 | 8 | 77 | 183
Financial assets (non-derivatives) | 3,596 | 2,799 | 797 | 688 | 24 | 8 | 8 | 8 | 77 | 183
Interest rate swaps | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
FX forwards | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Asset for incurred claims | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Financial liabilities | 2,816 | 0 | 2,816 | -416 | -65 | -224 | -60 | -60 | -2,513 | 0
Financial liabilities (non-derivatives) | 2,802 | 0 | 2,802 | -416 | -63 | -223 | -59 | -59 | -2,504 | 0
Interest rate swaps | 14 | 0 | 14 | 0 | -2 | -1 | -1 | -1 | -9 | 0
FX derivatives | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
Lease liabilities | 2 | 0 | 2 | -1 | -1 | 0 | 0 | 0 | 0 | 0
Liability for incurred claims and other insurance related payables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 189 |  |

Sampo plc’s Financial Statement s

Sampo plc’s income statement ........................... | 191
Sampo plc’s balance sheet ................................... | 192
Sampo plc’s statement of cash flows ............... | 193

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 190 |  |

Sampo plc’s income statement

EURm | Note | 1–12/2023 | 1–12/2022
Sales |  | 1 | —
Staff expenses |  |  |
Salaries and remunerations |  | -14 | -21
Social security costs |  |  |
Pension costs |  | -2 | -2
Other |  | -3 | -6
Other operating expenses | 1 | -39 | -19
Operating profit |  | -57 | -48
Financial income and expense | 3 |  |
Income from shares in Group companies |  | 1,039 | 1,008
Income from other shares |  | 23 | 182
Other interest and financial income |  |  |
Group companies |  | — | 4
Other |  | 23 | 6
Other investment income and expense |  | -9 | 704
Other interest income |  | 37 | 11
Interest and other financial expense |  | -95 | -111
Exchange result |  | 3 | -12
Profit before appropriations and taxes |  | 963 | 1,744
Group contribution |  | — | 29
Income taxes |  | 0 | 8
Profit for the financial year |  | 963 | 1,780

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 191 |  |

Sampo plc’s balance sheet

EURm | Note | 2023 | 2022
Assets |  |  |
Intangible assets |  | 1 | 1
Tangible assets |  | 3 | 3
Investments |  |  |
Shares in Group company | 21 | 5,635 | 6,066
Receivables from Group companies | 4 | — | 100
Other shares and participations | 5 | 876 | 961
Other investments | 6 | 706 | 696
Short-term receivables |  |  |
Other receivables | 7 | 20 | 44
Prepayments and accrued income | 8 | 2 | 16
Cash and cash equivalents |  | 747 | 1,798
Total assets |  | 7,990 | 9,685

EURm | Note | 2023 | 2022
Liabilities |  |  |
Equity | 9,10 |  |
Share capital |  | 98 | 98
Invested unrestricted equity |  | 1,527 | 1,527
Other reserves |  | 273 | 273
Retained earnings |  | 2,604 | 3,136
Profit for the financial year |  | 963 | 1,780
Liabilities |  |  |
Long-term liabilities | 13 |  |
Bonds |  | 959 | 1,306
Subordinated debt securities |  | 1,490 | 1,489
Short-term liabilities |  |  |
Deferred tax liability | 14 | — | —
Other liabilities | 11 | 5 | 12
Accruals and deferred income | 12 | 71 | 65
Total liabilities |  | 7,990 | 9,685

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 192 |  |

Sampo plc’s statement of cash flows

EURm | 1–12/2023 | 1–12/2022
Operating activities |  |
Profit before tax | 963 | 1,773
Adjustments |  |
Realised gains and losses on investments | 9 | —
Other adjustments | -14 | -830
Adjustments total | -5 | -830
Change (+/-) in assets of operating activities |  |
Investments | 341 | 48
Other assets | 11 | 13
Total | 351 | 60
Change (+/-) in liabilities of operating activities |  |
Financial liabilities | -2 | -35
Other liabilities | 1 | 9
Paid interests | -72 | -90
Paid taxes | 0 | 8
Total | -73 | -107
Net cash from operating activities | 1,237 | 896
Investing activities |  |
Investment in subsidiaries | -108 | -427
Divestments in associates | — | 2,291
Dividend received from associates | — | 157
Other investments | 0 | —
Net cash from investing activities | -108 | 2,022

EURm | 1–12/2023 | 1–12/2022
Financing activities |  |
Dividends paid | -1,321 | -2,186
Purchase of own shares | -555 | -1,444
Repayments of debt securities in issue | -334 | -571
Received group contribution | 29 | 15
Net cash used in financing activities | -2,180 | -4,186
Total cash flows | -1,051 | -1,269
Cash and cash equivalents at 1 January | 1,798 | 3,067
Cash and cash equivalents at 31 December | 747 | 1,798
Net change in cash and cash equivalents | -1,051 | -1,269

Additional information to the statement of cash flows

EURm | 1–12/2023 | 1–12/2022
Interest income received | 63 | 23
Interest expense paid | -72 | -90
Dividend income received | 1,062 | 1,190

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 193 |  |

Sampo plc’s notes to the financial statements

Summary of significant accounting policies .. | 195
Notes ............................................................................. | 196
1 Other operating expenses ................................... | 196
2 Auditors' fees .......................................................... | 196
3 Financial income and expense .......................... | 196
4 Receivables from Group companies ............... | 196
5 Other shares and participations ....................... | 196
6 Other investments ................................................. | 197
7 Other receivables ................................................... | 197
8 Prepayments and accrued income .................. | 197
9 Movements in the parent company's equity ............................................................................. | 198
10 Share capital .......................................................... | 199
11 Other liabilities ....................................................... | 199
12 Accruals and deferred income ........................ | 199
13 Long-term liabilities ............................................. | 199
14 Deferred tax assets and liabilities .................. | 199
15 Pension liabilities .................................................. | 199
16 Rental commitments ........................................... | 199
17 Other liabilities and commitments ................. | 199
18 Number of personnel .......................................... | 200
19 Salaries and remuneration of the Board and the Group CEO .................................................. | 200
20 Pension contributions to the CEO, deputy CEO and the members of the Board .................. | 200
21 Shares held ............................................................ | 201

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
| Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 194 |  |

Sampo plc’s notes to the financial statement
Summary of significant
accounting policies
Sampo plc (business ID 0142213-3) is Sampo Group’s
parent company and a Finnish public company listed in
Helsinki Nasdaq. It is domiciled in Helsinki and the
headquarters are at Fabianinkatu 27, 00100 Helsinki,
Finland.
The presentation of Sampo plc’s financial statements
have been prepared in accordance with the Finnish
Accounting Act and Ordinance.
Partial demerger
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.
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 amounting to
EUR 538 million 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.
The recognition of loan receivable had an impact on the
parent company’s equity amounting to EUR 102 million.
Foreign currency translation
Foreign currency transactions are translated using the
exchange rate prevailing at the date of transactions or
the average rate for the month. The Balance sheet items
denominated in foreign currencies are translated at the
rate prevailing at the balance sheet date. The exchange
differences are recognised in the income statement.
Non-current assets
Intangible and tangible assets are stated at acquisition
cost less depreciation or amortisation.
Investments are measured at acquisition cost and, in
case there is objective evidence of an impairment, the
impairment is recognised through profit or loss.
Previously the financial instruments were measured at
fair value through Fair Value reserve applying Chapter 5
section 2a § of the Finnish Accounting Act. The change
in the accounting policy is recognised through retained
earnings on 1 January 2022.
Derivatives
Financial derivatives held for trading are initially
recognised at fair value, and gains and losses arising
from changes in fair value together with realised gains
and losses are recognised in the income statement.
Derivative instruments are carried as assets when the
fair value is positive and as liabilities when the fair value
is negative.
Derivative financial instruments have been used only for
operative hedging purposes. For more information see
the Group note Summary of Significant Accounting
Policies.
Risk management
The risk management note 37 includes detailed
information on the risk management.
Revenue recognition
Revenue is recognised when it occurs.
Leases
Lease payments are treated as rentals.
Income taxes
The income statement includes the company's income
taxes based on taxable profit for the period. Income tax
includes tax expense based on taxable profit for the
period as well as deferred tax. Tax expense is
recognised in profit or loss except for the items
recognised directly in equity, in which case tax is
recognised accordingly. Tax is adjusted for possible
items related to previous reporting periods.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 195 |  |

1 Other operating expenses

EURm | 1–12/2023 | 1–12/2022
Rental expenses | -1 | -1
IT expenses | -1 | -1
External services | -28 | -10
Other staff costs | -1 | -1
Other | -7 | -6
Total | -38 | -19

Item Other includes e.g. administration fees.
2 Auditors' fees

EUR thousand | 1–12/2023 | 1–12/2022
Auditing fees | -414 | -1,065
Tax consultancy | — | —
Other fees | — | —
Total | -414 | -1,065

3 Financial income and expense

EURm | 1–12/2023 | 1–12/2022
Dividend income | 1,062 | 1,190
Interest income | 60 | 20
Interest expense | -72 | -86
Gains on disposal | — | 704
Exchange result | 3 | -12
Other | -32 | -25
Total | 1,020 | 1,792

4 Receivables from Group companies

EURm | 2023 | 2022
Carrying amount at the beginning of the year | 100 | 100
Disposals | -100 | —
Carrying amount at the end of the year | — | 100

Mandatum Life issued in 2002 EUR 100 million Capital Notes, which were wholly
subscribed by Sampo plc. At the time of partial demerger, with the consent of the
Financial Supervisory Authority, Mandatum redeemed the loan in full.
5 Other shares and participations

EURm | 2023 | 2022
Fair value at 1 January | — | 795
Change of accounting policy | — | -200
Acquisition cost 1 January | 961 | 595
Transfer from associates | — | 368
Increase | 7 | 3
Decrease | -92 | -5
Acquisition cost 31 December | 876 | 961

In connection with the demerger, Sampo sold certain financial assets to Mandatum.
These assets included holdings in Enento Group, guarantee shares of Kaleva Mutual
Insurance Company and other smaller equity, debt, and alternative investments.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 196 |  |

6 Other investments

EURm | 2023 | 2022
Acquisition cost 1 January | 696 | 704
Increase | 2,325 | 3,766
Decrease | -2,315 | -3,773
Acquisition cost 31 December | 706 | 696

EURm | 2023 | 2022
Bonds | 15 | 26
Money market | 590 | 670
Loan receivable | 101 | —
Total | 706 | 696

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.
7 Other receivables

EURm | 2023 | 2022
Trading receivables | — | 1
Other | 20 | 43
Total | 20 | 44

Item Other includes derivative guarantees EUR 20 (14) million and Group receivables
of EUR 0 (29) million.
8 Prepayments and accrued income

EURm | 2023 | 2022
Accrued interest | 2 | 5
Other | 0 | 11
Total | 2 | 16

EURm | 2023 | Fair value | 2022 | Fair value
Derivatives | Contract /notional value | Assets | Liabilities | Contract /notional value | Assets | Liabilities
Derivatives held for trading |  |  |  |  |  |
Interest rate derivatives | 89 | — | 20 | 95 | — | 14
Total | 89 | — | 20 | 95 | — | 14

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 197 |  |

9 Movements in the parent company's equity

| Restricted equity | Unrestricted equity |
EURm | Share capital | Invested unrestricted capital | Other reserves | Retained earnings | Total
Carrying amount at 1 January 2022 | 98 | 1,527 | 273 | 6,766 | 8,663
Dividends | — | — | — | -2,186 | -2,186
Acquisition of own shares | — | — | — | -1,444 | -1,444
Profit for the year | — | — | — | 1,780 | 1,780
Carrying amount at 31 December 2022 | 98 | 1,527 | 273 | 4,916 | 6,814

| Restricted equity | Unrestricted equity |
EURm | Share capital | Invested unrestricted capital | Other reserves | Retained earnings | Total
Carrying amount at 1 January 2023 | 98 | 1,527 | 273 | 4,916 | 6,814
Dividends | — | — | — | -1,321 | -1,321
Acquisition of own shares | — | — | — | -555 | -555
Partial demerger | — | — | — | -539 | -539
Loan receivable due to partial demerger | — | — | — | 102 | 102
Profit for the year | — | — | — | 963 | 963
Carrying amount at 31 December 2023 | 98 | 1,527 | 273 | 3,567 | 5,465

Distributable funds

EURm | 2023 | 2022
Parent company |  |
Profit for the year | 963 | 1,780
Retained earnings | 2,604 | 3,136
Invested unrestricted capital | 1,527 | 1,527
Other reserves | 273 | 273
Total | 5,367 | 6,716

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 198 |  |

10 Share capital
Information on share capital is disclosed in note 27 in the consolidated financial
statements.
11 Other liabilities

EURm | 2023 | 2022
Other | 5 | 12
Total | 5 | 12

12 Accruals and deferred income

EURm | 2023 | 2022
Deferred interest | 29 | 29
Derivatives | 20 | 14
Other | 23 | 22
Total | 71 | 65

13 Long-term liabilities

EURm | 2023 | 2022
Bonds | 959 | 1,306
Subordinated debt securities | 1,490 | 1,489
Total | 2,449 | 2,794

More information in Sampo Group’s consolidated not e 24 Financial liabilities.
14 Deferred tax assets and liabilities
The parent company did not have any deferred tax liability or asset in the balance
sheet at the end of 2023 or 2022.
15 Pension liabilities
The basic and supplementary pension insurance of Sampo plc’s staff is handled
through insurance policies in pension insurance companies in Finland and Sweden.
16 Rental commitments

EURm | 2023 | 2022
Not more than one year | 1 | 1
Over one year but not more than five years | 1 | 1
Total | 2 | 2

17 Other liabilities and commitments
Sampo plc has granted a credit facility to Hastings Group Holdings Ltd of GBP 75
million, which will terminate in October 2026. The credit facility was undrawn at the
end of the reporting period. More information is in Sampo Group’s note 24 Financial
liabilities.
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 Mandatum a loan amounting
to EUR 280 million, which still remains undrawn at the end of reporting period. The
loan is expected to be repaid within a period of four years from its issuance.
T he fund comm itments given total EUR 7 (7) million.
The joint liability related to the Finnish VAT group was terminated on 30 April 2023, so
there was no joint VAT liability on the balance sheet date (EUR 3 million).

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 199 |  |

18 Number of personnel

| 2023 Average during the year | 2022 Average during the year
Full-time personnel | 54 | 50
Part-time personnel | 1 | —
Total | 55 | 50

19 Salaries and remuneration of the Board
and the Group CEO

EUR thousand |  | 2023 | 2022
Group CEO | Torbjörn Magnusson | 3,139 | 3,328
Members of the Board of Directors |  |
Antti Mäkinen | 228 | —
Björn Wahlroos | — | 190
Christian Clausen | 101 | 98
Fiona Clutterbuck | 107 | 104
Georg Ehrnrooth | 107 | 104
Jannica Fagerholm | 159 | 152
Johanna Lamminen | 45 | 104
Steve Langan | 107 | 104
Risto Murto | 101 | 98
Markus Rauramo | 101 | 98
Annica Withchard | 107 | —

In accordance with the decision of the Annual General Meeting in 2023, the company
has compensated the transfer tax related to the acquisition of the company shares, in
total EUR 8,446.39 (EUR 1,819.48 pertaining to the Chairman, EUR 1,268.84 EUR to the
Vice Chairman and EUR 5,358.07 to the other members of the Board).
20 Pension contributions to the CEO, deputy
CEO and the members of the Board

EUR thousand | Supplementary pension costs | Statutory pension costs | Total
Pension contributions paid during the year |  |  |
President/CEO 1 | 869 | 468 | 1,337
Former Chairmen of the Board |  |  |
Kalevi Keinänen 2 | 90 |  | 90
Former Presidents/CEO:s |  |  |
Harri Hollmen 3 | 225 |  | 225
Total | 1,184 | 468 | 1,652

1 The Group CEO is entitled to a supplementary defined contribution pension in accordance with
the present pension contract.
2 Group pension agreement with a retirement age of 60 years and pension benefit of 66 per cent of
the pensionable TyEL-salary (TyEL: Employees’s Pension Act). The payment for 2023 is based on a
TyEL index adjustment.
3 Group pension agreement with a retirement age of 60 years and a pension benefit of 60 per cent
of the pensionable TyEL-salary. The payment for 2023 is based on a TyEL index adjustment.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 200 |  |

21 Shares held

| 31 December 2023 | 31 December 2022
Company name | Percentage of share capital held | Carrying amount EURm | Percentage of share capital held | Carrying amount EURm
Group undertakings |  |  |  |
P&C insurance |  |  |  |
If P&C Insurance Holding Ltd, Stockholm, Sweden | 100.00 | 1,886 | 100.00 | 1,886
P&C insurance |  |  |  |
Topdanmark A/S, Copenhague, Denmark | 48.92 | 1,121 | 48.53 | 1,107
P&C insurance |  |  |  |
Hastings Group (Consolidated) Plc, London, United Kingdom | 100.00 | 2,611 | 100.00 | 2,534
Life insurance |  |  |  |
Mandatum Holding Ltd, Helsinki, Finland | — | — | 100.00 | 539

Sampo Plc has a branch located in Sweden.
Due to the demerger, all the shares in Mandatum Holding Ltd were transferred without
a liquidation procedure to Mandatum plc, a company incorporated in the demerger on
the effective date.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 201 |  |

Approval of the Financial Statements and
the Board of Directors’ Report
Helsinki, 6 March 2024
Sampo plc
Board of Directors

| Christian Clausen | Fiona Clutterbuck | Georg Ehrnrooth |
| Jannica Fagerholm | Steve Langan | Risto Murto |
|  | Markus Rauramo | Annica Witschard |  |
|  | Antti Mäkinen Chairman | Torbjörn Magnusson Group CEO |  |

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 202 |  |

Auditor’s note
An auditor's report on the audit performed has been issued today.
Helsinki, 12 March 2024
Deloitte Oy
Audit firm
Jukka Vattulainen
APA

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 203 |  |

Auditor’s Report (Translation of the Finnish Original)
To the Annual General Meeting of Sampo plc
Report on the Audit of
the Financial Statements
Opinion
We have audited the financial statements of Sampo plc
(business identity code 0142213-3) for the year ended 31
December, 2023. The financial statements comprise the
consolidated balance sheet, income statement,
statement of comprehensive income, statement of
changes in equity, statement of cash flows and notes,
including material accounting policy information, as well
as the parent company’s balance sheet, income
statement, statement of cash flows and notes.
In our opinion
• the consolidated financial statements give a true and
fair view of the group’s financial position, financial
performance and cash flows in accordance with IFRS
Accounting Standards as adopted by the EU
• the financial statements give a true and fair view of
the parent company’s financial performance and
financial position in accordance with the laws and
regulations governing the preparation of financial
statements in Finland and comply with statutory
requirements.
Our opinion is consistent with the additional report
submitted to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with good
auditing practice in Finland. Our responsibilities under
good auditing practice are further described in the
Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report.
We are independent of the parent company and of the
group companies in accordance with the ethical
requirements that are applicable in Finland and are
relevant to our audit, and we have fulfilled our other
ethical responsibilities in accordance with these
requirements.
In our best knowledge and understanding, the non-
audit services that we have provided to the parent
company and group companies are in compliance with
laws and regulations applicable in Finland regarding
these services, and we have not provided any
prohibited non-audit services referred to in Article 5(1)
of regulation (EU) 537/2014. The non-audit services that
we have provided have been disclosed in note 6 to the
consolidated financial statements and in note 2 to the
parent company notes.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our
professional judgment, were of most significance in our
audit of the financial statements of the current period.
These matters were addressed in the context of our
audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a
separate opinion on these matters.
We have also addressed the risk of management
override of internal controls. This includes consideration
of whether there was evidence of management bias
that represented a risk of material misstatement due to
fraud.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 204 |  |

Key Audit Matter | How our audit addressed the Key Audit Matter
Valuation of insurance contract liabilities We refer to Summary of Material Accounting policies in the financial statements as well as notes 20 and 21. As of 31 December 2023, Sampo Group has insurance contract liabilities totalling EUR 11,716 million (2022: EUR 16,210 million), consisting primarily of property and casualty (P&C) insurance contract liabilities. The measurement of insurance liabilities consists of the liability for remaining coverage (LRC) and the liability for incurred claims (LIC) including both reported but not settled claims as well as incurred but not reported claims (IBNR). Sampo Group adopted IFRS 17 Insurance Contracts standard from 1 January 2023, and comparative figures have been restated. Sampo Group’s operations are focused on the P&C business and Sampo primarily uses the premium allocation approach (PAA) under IFRS 17. As of 1 January 2022, Sampo Group's opening balance sheet amounted to EUR 58.7 billion and equity to EUR 13.5 billion. Compared to the IFRS 4 closing balance sheet of EUR 61.1 billion, the opening IFRS 17 balance sheet decreased by EUR 2.4 billion. Discounting of reserves decreased insurance liabilities whereas introduction of risk adjustment increased insurance liabilities. The introduction of the loss component related to onerous contracts had only an insignificant impact on transition. The result of management's assessments regarding the calculation of the liability for incurred claims depends on inputs, the choice of actuarial methods and the precision of management judgment in determining actuarial assumptions. Key assumptions with the greatest impact on the carrying amount include inflation, discount rates as well as estimated future payments for claims. Valuation of insurance contract liabilities requires significant management judgment and accounting assumptions about uncertain future events, which may materially affect the carrying amount, and thus this is a key audit matter. | We have assessed the measurement of the provisions for insurance contracts as calculated by Management. Our audit procedures included testing of the key controls relating to valuation of insurance liabilities and key assumptions. We have involved Deloitte´s actuarial experts together with IFRS 17 subject matter experts in our audit procedures and evaluated methods and models used by the management. We have compared the information used in the calculations with the historical data and we have analysed the developments in risk, interest and cost trends. We have evaluated management’s significant estimations and judgments and performed independent calculations based on actuarial methods for a substantial part of the insurance contract liabilities. We have evaluated management’s interpretation of the new accounting standard IFRS 17 and its application to the relevant insurance contracts as well as assessed the changes introduced to the financial statements and related disclosures following the adoption of IFRS 17. We have evaluated and examined a selection of general IT controls linked to relevant systems and applications assessed as critical to the data that forms the basis for the calculation of the liability for incurred claims. On a sample basis we have examined input data used in the calculations of the liability for incurred claims.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 205 |  |

Key Audit Matter | How our audit addressed the Key Audit Matter
Valuation of financial assets We refer to Summary of Material Accounting policies in the financial statements as well as notes 14–16. The Group's investments amount to EUR 15,757 million (2022: EUR 19,565 million). Financial assets represent a significant part of the group's balance sheet. Major part of the Group's financial assets are measured at fair value. At level 1, the valuation of the financial asset is based on the quoted price in an active market. Level 2 valuation also uses other verifiable prices as inputs, either directly or derived from them, using valuation techniques. At level 3, valuation is based on non-observable market data. Audit focus areas relate to valuations on level 2 and 3 in line with IFRS in which the valuation techniques include inputs which are not directly observable from the markets. The use of different valuation techniques and assumptions may result in different estimates of fair value and hence this is a key audit matter. | Our audit procedures have included the evaluation of the internal controls, appropriateness of accounting policies used and the reasonableness of accounting estimates made by management. We have evaluated the appropriateness of the valuation models and accounting policies used by the company to assess whether the fair value measurement is in accordance with generally accepted standards and industry practices. We have requested external confirmations to verify the existence of the investment. Together with our valuation specialists, we have assessed the assumptions used by management in the valuation calculation. We have utilized Deloitte´s valuation analytics and performed the recalculation of fair values based on the information available on the market. For financial assets that are valued on the basis of non-market information, we have also evaluated the practices and assumptions used by management in determining fair values. We have assessed the disclosures of the investments in the financial statements.

There are no significant risks of material misstatement referred to in EU regulation No 537/2014, point (c) of Article 10(2) relating to the parent company’s financial statements.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 206 |  |

Responsibilities of the Board of
Directors and the Group CEO for
the Financial Statements
The Board of Directors and the Group CEO are
responsible for the preparation of consolidated financial
statements that give a true and fair view in accordance
with IFRS Accounting Standards as adopted by the EU,
and of financial statements that give a true and fair view
in accordance with the laws and regulations governing
the preparation of financial statements in Finland and
comply with statutory requirements. The Board of
Directors and the Group CEO are also responsible for
such internal control as they determine is necessary to
enable the preparation of financial statements that are
free from material misstatement, whether due to fraud
or error.
In preparing the financial statements, the Board of
Directors and the Group CEO are responsible for
assessing the parent company’s and the group’s ability
to continue as a going concern, disclosing, as
applicable, matters relating to going concern and using
the going concern basis of accounting. The financial
statements are prepared using the going concern basis
of accounting unless there is an intention to liquidate
the parent company or the group or cease operations,
or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the
Audit of Financial Statements
Our objectives are to obtain reasonable assurance
about whether the financial statements as a whole are
free from material misstatement, whether due to fraud
or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit
conducted in accordance with good auditing practice
will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the
aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the
basis of the financial statements.
As part of an audit in accordance with good auditing
practice, we exercise professional judgment and
maintain professional skepticism throughout the audit.
We also:
• Identify and assess the risks of material misstatement
of the financial statements, whether due to fraud or
error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve
collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness
of the parent company’s or the group’s internal
control.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
• Conclude on the appropriateness of the Board of
Directors’ and the Group CEO’s use of the going
concern basis of accounting and based on the audit
evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
significant doubt on the parent company’s or the
group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to
the related disclosures in the financial statements or,
if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s
report. However, future events or conditions may
cause the parent company or the group to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and
content of the financial statements, including the
disclosures, and whether the financial statements
represent the underlying transactions and events so
that the financial statements give a true and fair view.
• Obtain sufficient appropriate audit evidence
regarding the financial information of the entities or
business activities within the group to express an
opinion on the consolidated financial statements. We
are responsible for the direction, supervision and
performance of the group audit. We remain solely
responsible for our audit opinion.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 207 |  |

We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings,
including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and
communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, related
safeguards.
From the matters communicated with those charged
with governance, we determine those matters that were
of most significance in the audit of the financial
statements of the current period and are therefore the
key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in
extremely rare circumstances, we determine that a
matter should not be communicated in our report
because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest
benefits of such communication.
Other Reporting
Requirements
Information on our audit
engagement
We were first appointed as auditors by the Annual
General Meeting on 19 May 2021, and our appointment
represents a total period of uninterrupted engagement
of 3 years.
Other information
The Board of Directors and the Group CEO are
responsible for the other information. The other
information comprises the report of the Board of
Directors.
Our opinion on the financial statements does not cover
the other information.
In connection with our audit of the financial statements,
our responsibility is to read the other information and, in
doing so, consider whether the other information is
materially inconsistent with the financial statements or
our knowledge obtained in the audit, or otherwise
appears to be materially misstated. Our responsibility
also includes considering whether the report of the
Board of Directors has been prepared in accordance
with the applicable laws and regulations.
In our opinion, the information in the report of the
Board of Directors is consistent with the information in
the financial statements and the report of the Board of
Directors has been prepared in accordance with the
applicable laws and regulations.
If, based on the work we have performed, we conclude
that there is a material misstatement of the report of
the Board of Directors, we are required to report that
fact. We have nothing to report in this regard.
Other opinions
We support that the financial statements should be
adopted. The proposal by the Board of Directors
regarding the use of the profit shown in the balance
sheet is in compliance with the Limited Liability
Companies Act. We support that the Members of the
Board of Directors of the parent company and the
Group CEO should be discharged from liability for the
financial period audited by us.
Helsinki, 12 March 2024
Deloitte Oy
Audit Firm
Jukka Vattulainen
Authorised Public Accountant (KHT)

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 208 |  |

Independent auditor’s report on the ESEF consolidated financial
statements of Sampo plc (Translation of the Finnish Original)
To the Board of Directors of Sampo plc
We have performed a reasonable assurance
engagement on whether the iXBRL tagging of the
consolidated financial statements in the ESEF
consolidated financial statements
(743700UF3RL386WIDA22-2023-12-31-en.zip) of
Sampo plc (0142213-3) for the financial year ended 31
December 2023 has been prepared in accordance with
the requirements of Article 4 of Commission Delegated
Regulation (EU) 2018/815 (ESEF RTS).
Responsibilities of
the board of directors
and the Group CEO
The Board of Directors and the Group CEO are
responsible for the preparation of the report of the
Board of Directors and financial statements (ESEF
financial statements) that comply with the requirements
of ESEF RTS. This responsibility includes:
• preparation of ESEF financial statements in XHTML
format in accordance with Article 3 of ESEF RTS
• tagging the consolidated financial statements’
primary statements, disclosures and identifying
information in the ESEF financial statements with
iXBRL tags in accordance with Article 4 of ESEF RTS,
and
• ensuring consistency between ESEF financial
statements and audited financial statements.
The Board of Directors and the Group CEO are also
responsible for such internal control as they determine
is necessary to enable the preparation of ESEF financial
statements in accordance with the requirements of
ESEF RTS.
Auditor’s independence
and quality control
We are independent of the company in accordance
with the ethical requirements that are applicable in
Finland and are relevant to the engagement we have
performed, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
The auditor applies International Standard on Quality
Management 1 and, accordingly, an audit firm shall
design, implement, and maintain a system of quality
control including policies and procedures regarding
compliance with ethical requirements, professional
standards, and applicable legal and regulatory
requirements.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 209 |  |

Auditor’s responsibilities
In accordance with the engagement letter, we express
an opinion on whether the tagging of the consolidated
financial statements in the ESEF financial statements
has been prepared in all material respects in accordance
with the requirements of Article 4 of ESEF RTS. We
conducted a reasonable assurance engagement in
accordance with International Standard on Assurance
Engagements ISAE 3000.
The engagement includes procedures to obtain
evidence on:
• whether the tagging of the consolidated financial
statements’ primary statements in ESEF financial
statements has been prepared in all material respects
in accordance with the requirements of Article 4 of
ESEF RTS
• whether the tagging of the consolidated financial
statements’ disclosures and identifying information in
the ESEF financial statements has been prepared in all
material respects in accordance with the
requirements of Article 4 of ESEF RTS, and
• whether the ESEF financial statements are consistent
with the audited financial statements.
The nature, timing and extent of the procedures
selected depend on the auditor’s judgment. This
includes the assessment of risk of material departures
from the requirements set out in ESEF RTS, whether
due to fraud or error.
We believe that the evidence we have obtained is
sufficient and appropriate to provide a basis for our
opinion.
Opinion
In our opinion, the tagging of the consolidated financial
statements in the ESEF financial statements
(743700UF3RL386WIDA22-2023-12-31-en.zip) of
Sampo plc for the financial year ended 31 December
2023 has been prepared in all material respects in
accordance with the requirements of Article 4 of ESEF
RTS.
Our audit opinion on the consolidated financial
statements of Sampo plc for the financial year ended 31
December 2023 has been expressed in our auditor’s
report dated 12 March 2024. In this report, we do not
express an audit opinion or any other assurance
conclusion on the consolidated financial statements.
Helsinki 12 March 2024
Deloitte Oy
Audit Firm
Jukka Vattulainen
APA
Sampo plc (business id 0142213-3) is a Finnish public company listed in Helsinki Nasdaq. It is domiciled in Helsinki and the headquarters are at Fabianinkatu 27, 00100 Helsinki, Finland. The consolidated
financial statements of Sampo Group include Sampo plc together with its subsidiaries and associates as of 31 December 2022. The group subsidiaries have insurance and financing activities in Finland,
Sweden, Norway, Denmark, the Baltic countries, and the United Kingdom. A copy of Group’s financial statements is available at internet address www.sampo.com. Copyright Sampo plc, Finland.

| Board of Directors’ Report |  |  | Group’s IFRS Financial Statements |  |  | Sampo plc’s Financial Statements |  |  | Auditor’s Report |  | ≡ |
Group’s notes to the financial statements | Sampo plc’s notes to the financial statements

| FINANCIAL STATEMENTS 2023 | 210 |  |