Sampo Oyj The Valuation Of Mandatum Life's Portfolio To Be Sold To Danske Bank Finalized

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TIDMSAMPO

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SAMPO PLC STOCK EXCHANGE RELEASE 19 June 2017 at 4:45

pm

The valuation of Mandatum Life's portfolio to be sold to Danske Bank

finalized

Mandatum Life Insurance Co. Ltd. disclosed on 27 October 2016 that it

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will exercise its option to sell the insurance portfolio, sold through

Danske Bank's branch network in Finland, to Danske Bank or its nominee.

The valuation process, by which the value of the portfolio was to be

determined, is now finalized by the external valuators.

As a result of the valuation process the value of the insurance

portfolio as at the 31 December 2016 is EUR 334 million. Mandatum Life

and Danske Bank have agreed that the theoretical result from the

beginning of 2017 until the date of the transfer as determined in the

valuation process will be deducted from the final sales price. This

theoretical result for year 2017 is determined to be EUR 18.1 million

and for year 2018 EUR 18.6 million. Mandatum Life and Danske Bank have

agreed that the actual result produced by the portfolio until the

transfer remains with Mandatum Life. The Transitional Agency Agreement

between Mandatum Life and Danske Bank will continue until closing.

After the transfer has been completed the transaction is expected to

have a negative impact of EUR 20 - 25 million on Mandatum Life's annual

profit before taxes. The transfer of the portfolio is expected to take

place during 2018.

For Mandatum Life sales gain from the transaction equals the value of

the insurance portfolio adjusted with items explained in the previous

chapter. The sales gain is taxable under the Finnish tax law. In Sampo

Group's consolidated accounts a goodwill of approximately EUR 75 million

will be deducted from the sales gain. The transaction will have a

positive impact on Mandatum Life's solvency position.

The sale of the portfolio is related to Mandatum Life's decision of not

prolonging its agency agreement with Danske Bank as of 31 December 2016.

In relation to the agency agreement Mandatum Life had the right to sell

the insurance portfolio, sold through Danske Bank's branch network in

Finland, to Danske Bank.

SAMPO PLC

Maria Silander

Communications Manager

tel. +358 10 516 0031

Further information:

Petri Niemisvirta

Managing Director, Mandatum Life

tel. +358 10 516 7200

Jukka Kurki

CFO, Mandatum Life

tel. +358 50 424 6630

Distribution:

Nasdaq Helsinki

London Stock Exchange

The principal media

Financial Supervisory Authority

www.sampo.com

This announcement is distributed by Nasdaq Corporate Solutions on behalf

of Nasdaq Corporate Solutions clients.

The issuer of this announcement warrants that they are solely

responsible for the content, accuracy and originality of the information

contained therein.

Source: Sampo Oyj via Globenewswire

http://www.sampo.com

(END) Dow Jones Newswires

June 19, 2017 10:00 ET (14:00 GMT)