The sale of Sampo’s entire holding in Nordea – Q&A

Sampo

In this blog entry we address the questions regarding the sale of Sampo’s entire holding in Nordea announced today. https://www.sampo.com/media/releases/2022/sampo-has-sold-its-entire-hold...

Why did you decide to sell the entire stake instead of the originally announced 100 million shares?

The strong market demand offered us an opportunity to reduce our holding to zero, which is in line with our P&C focused strategy.

The total remaining holding was 200 million shares. Does this mean that Sampo had already sold around 46 million shares between year-end 2021 and the final sale?

Yes. Around 19 million shares were sold in the open market in Q1 and 27 million in April.

Sampo’s management intends to propose that a new buyback programme is launched after the AGM. What will be the size of the programme?

The current programme of EUR 250 million launched in March is still ongoing and will end by latest 17 May 2022. Details of the new programme will be announced after the current programme is completed.

How will the sale affect Sampo Group’s solvency?

The positive effect from selling the entire stake, including previous sales in 2022, will be around 30 percentage points on the Group’s Solvency II ratio.

How will the sale affect Sampo Group’s financial leverage?

The effect will not be material, however slightly positive.

Do you have to use some of the proceeds for decreasing the financial leverage?

No, we don’t need the money for deleveraging. Funds for that purpose had already been secured with the Nordea disposals in 2021.

Mirko Hurmerinta, Investor Relations Manager, Sampo plc
Why invest in Sampo? IR Blog provides information about Sampo as an investment case and the Group's businesses and markets. www.sampo.com/irblog

Sampo is a Nordic property and casualty insurer operating also in the UK and in the Baltics. In the Nordics, Sampo provides insurance services across all countries, customer segments and products. In the UK, the company offers motor and home insurance for private individuals. The Group is made up of If P&C, Topdanmark, Hastings, and the parent company Sampo plc. Sampo was founded in 1909 and it is headquartered in Helsinki, Finland.

Key Estimate Figures09.02.2022

	2021	22e	23e
Revenue	9,746.0	10,694.7	11,102.8
growth-%	15.9 %	9.7 %	3.8 %
EBIT (adj.)	2,190.0	1,622.6	1,680.9
EBIT-% (adj.)	22.5 %	15.2 %	15.1 %
EPS (adj.)	0.52	0.40	0.43
Dividend	0.74	0.60	0.34
Dividend %	9.3 %	6.0 %	3.5 %
P/E (adj.)	15.4	24.8	23.1
EV/EBITDA	7.5	13.7	15.2