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Sensitivity Analysis of the Capital Position

The total sensitivity of equity is shown in table "Sensitivity analysis of capitalization to market risks, P&C insurance, Life insurance and Holding, 31 Dec 2010" separately for the insurance subsidiaries together with the corresponding effect on the discounted value of liabilities and adjusted solvency capital. For example a rise in interest rates would reduce the values of financial instruments causing a fall in the Sampo Group's equity. On the other hand, the effect on adjusted solvency capital would be positive due to the fact that value of technical provisions would fall as a result of applying a higher discount rate.

Sensitivity analysis of capitalization to market risks, P&C insurance, Life insurance and Holding, 31 Dec 2010

 

Interest rate Equity

Other financial investments

EURm

1% parallel shift down

1% parallel shift up

20% fall in prices

20% fall in prices

P&C insurance

170 -162 -330 -21

Life insurance

115 -113 -337 -125

Holding

2 -2 -4 -5

Total effect on equity

287 -277 -671 -151
         

Change in liability side adjustment

-875 622 22 8

Effect on adjusted solvency capital

-589 346 -649 -143

The effects represent the instantaneous effects of an one-off change in the underlying market variable on the fair values as of 31 December 2010. The sensitivity analysis includes the effects of derivative positions. All sensitivities are calculated before taxes. The debt issued by Sampo Group companies is not included.

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