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Notes to the Accounts

13 Intangible Assets
                 
P&C insurance        
           
          2010
  EURm Goodwill Customer relations Other intangible assets Total
  At 1 Jan.        
  Cost 506 47 107 660
  Accumulated amortisation - -41 -99 -140
  Net carrying amount 506 6 8 521
               
  Opening net carrying amount 506 6 8 521
  Exchange differences 71 0 0 72
  Additions        
    Acquired separately     - - 6 6
  Disposals -13 - - -13
  Amortisation - -7 -1 -8
  Closing net carrying amount 564 0 13 577
           
  At 31 Dec.        
  Cost 564 47 113 725
  Accumulated amortisation - -47 -100 -148
  Net carrying amount 564 0 13 577
                 
          2009
  EURm Goodwill Customer relations Other intangible assets Total
  At 1 Jan.        
  Cost 479 47 101 627
  Accumulated amortisation - -34 -98 -132
  Net carrying amount 479 13 3 495
           
  Opening net carrying amount 479 13 3 495
  Exchange differences 27 1 0 28
  Additions        
    Acquired separately     - - 5 5
  Disposals - - 0 0
  Amortisation - -7 -1 -8
  Closing net carrying amount 506 6 8 520
           
  At 31 Dec.        
  Cost 506 47 107 660
  Accumulated amortisation - -41 -99 -140
  Net carrying amount 506 6 8 521
                 
                 
The intangible asset allocated to customer relations arose from the acquisition of If in 2004, as a part of the acquisition cost allocated to the insurance contracts of the If Group. The item was amortised on a straight-line basis in 6 years.
                 
                 
Life insurance
                 
      2010 2009
  EURm Goodwill Other intangible assets Total Goodwill Other intangible assets Total
  At 1 Jan.            
  Cost 153 34 188 153 32 185
  Accumulated amortisation - -20 -20 - -18 -18
  Net carrying amount 153 14 167 153 14 167
               
  Opening net carrying amount 153 14 167 153 14 167
  Additions - 2 2 - 3 3
  Amortisation - -4 -4 - -3 -3
  Closing net carrying amount 153 12 165 153 14 167
               
  At 31 Dec.            
  Cost 153 36 190 153 34 188
  Accumulated amortisation - -25 -25 - -20 -20
  Net carrying amount 153 12 165 153 14 167
                 
                 
Holding
                 
              2010 2009
  EURm Other intangible assets Other intangible assets
  At 1 Jan.    
  Cost 30 30
  Accumulated amortisation -20 -20
  Accumulated impairment losses -9 -9
  Net carrying amount 0 0
       
  Opening net carrying amount 0 0
  Amortisation 0 0
  Closing net carrying amount 0 0
       
  At 31 Dec.    
  Cost 6 30
  Accumulated amortisation -5 -20
  Accumulated impairment losses 0 -9
  Net carrying amount 1 0
                 
              2010 2009
Group, total 743 688
                 
Other intangible assets in all segments comprise mainly IT software.
 
Depreciation and impairment losses are included in the income statement item Other operating 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 and Mandatum Life.
 
The recoverable amounts for If have been determined by using a discounted cash flow model. The model is based on Sampo’s management’s best estimates of both historical evidence and economic conditions such as volumes, margins, income and cost development. The value in use model for Mandatum Life has been fundamentally based on the embedded value model where the cash flow estimates for existing policies are based on budgets approved by the management and on historical evidence in terms of policy surrendering, death and accident frequencies etc. The derived cash flows for If were discounted at the pre-tax rates of 11.2 per cent. For Mandatum Life, the weighted average cost of capital of 10.4 per cent has been used for the discounting.
 
Forecasts for If, approved by the management, cover years 2011 – 2013. The cash flows beyond that have been extrapolated using a 2 % growth rate. A 2 % growth rate for years beyond 2010 has been used for the markets where Mandatum Life operates.
 
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.
                 
                 
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