SAMPO PLC STOCK EXCHANGE RELEASE 2 October 2017 at 9:45 am
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Change in Sampo Group's reporting - Topdanmark becomes a new segment
Sampo Group has since May 2011 consolidated Danish insurer Topdanmark
A/S as an associated company by reporting in the P&C Insurance segment
the share of Topdanmark's profit corresponding to Sampo's holding. Sampo
consolidates Topdanmark as a subsidiary as of 30 September 2017 in its
financial reporting in accordance with IFRS. This implies no other
change in the relationship between Sampo Group and Topdanmark.
Previously Sampo reported three segments; P&C Insurance (including
Topdanmark), Life Insurance and Holding segment (including Sampo's share
of Nordea's profit). Subsequent to consolidation of Topdanmark as a
subsidiary, Sampo will change its reporting structure and going forward
disclose four reportable segments; If, Topdanmark, Mandatum Life and
Holding (incl. Nordea).
In the January - September 2017 Interim Statement to be published on 2
November 2017 Topdanmark's balance sheet will be fully consolidated to
Sampo Group's balance sheet. The share of Topdanmark's profit for
January-September 2017 corresponding to Sampo's holding will be reported
as share of associate's profit/loss in the segment Topdanmark as a
separate line. In addition, the difference between the carrying value
and the fair value of Sampo's holding on 30 September 2017 will be
recognized in profit and loss. The exact amount of the latter item
depends on the closing price of Topdanmark share on 30 September 2017
and the share of Topdanmark's profit/loss for the third quarter of 2017.
The amount is over EUR 700 million.
As of 1 October 2017 Topdanmark's profit and loss items will be
recognized line-by-line in Sampo Group's consolidated financial
statements in the segment Topdanmark.
Sampo Group calculates and reports its Group solvency according to the
Act on the Supervision of Financial and Insurance Conglomerates
(2004/699) which is based on Directive 2002/87/EC of the European
Parliament and of the Council on the supplementary supervision of credit
institutions, insurance undertakings and investment. The consolidation
will change the treatment of Topdanmark in the Group Conglomerate
Solvency calculation. Going forward Topdanmark will be treated in the
same way as If P&C and Mandatum Life, which also means that the Solvency
Capital Requirement (SCR) for Topdanmark is calculated according to
standard model. The change is not expected to have a major impact on
Sampo Group's solvency ratio.
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Source: Sampo Oyj via Globenewswire
(END) Dow Jones Newswires
October 02, 2017 03:00 ET (07:00 GMT)