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Notes to the Accounts

17 Determination and Hierarchy of Fair Values
               
           
A large majority of Sampo Group's financial assets are valued at fair value. The valuation is based on either published price quatations or valuation techniques based on market observable inputs, where available. For a limited amount of assets the value needs to be determined using other techniques.
               
The financial instruments measured at fair value have been classified into three hierarchy levels in the notes, depending on e.g. if the market for the instrument is active, or if the inputs used in the valuation technique are observable.
 
On level 1, the measurement of the instrument is based on quoted prices in active markets for identical assets or liabilities.
 
On level 2, inputs for the measurement of the instrument include also other than quoted prices observable for the asset or liability, either directly or indirectly by using valuation techniques.
 
In level 3, the measurement is based on other inputs rather than observable market data.
               
EURm     Level 1 Level 2 Level 3 Total
Financial assets 31.12.2010            
               
Derivative financial instruments            
  Interest rate swaps     - 66 - 66
  Other interest rate derivatives     4 1 - 5
  Foreign exchange derivatives     - 79 - 79
  Equity derivatives     - 8 - 8
        4 153 - 158
               
Financial assets designated at fair value through profit or loss            
  Equity securities     0 - - 0
  Debt securities     78 56 18 151
        78 56 18 151
               
Financial assets related to unit-linked insurance            
  Equity securities     152 6 0 159
  Debt securities     31 519 0 551
  Derivative financial instruments     0 14 - 14
  Mutual funds     1,602 612 57 2,271
        1,785 1,151 58 2,994
               
Financial assets available-for-sale            
  Equity securities     1,837 - 77 1,914
  Debt securities     602 12,220 86 12,908
  Mutual funds     1,252 259 767 2,278
        3,691 12,479 930 17,099
               
Total financial assests measured at fair value     5,557 13,839 1,005 20,402
             
Financial liabilities 31.12.2010            
             
Derivative financial instruments            
  Interest rate derivatives     -3 0 - -3
  Foreign exchange derivatives     - -23 - -23
  Equity derivatives     - -75 - -75
  Other derivatives     - -10 - -10
               
Total financial liabilities measured at fair value     -3 -108 - -111
               
               
EURm     Level 1 Level 2 Level 3 Total
Financial assets 31.12.2009            
               
Derivative financial instruments            
  Interest rate swaps     0 77 - 77
  Other interest rate derivatives     3 11 - 14
  Foreign exchange derivatives     - 67 - 67
  Equity derivatives     - 4 - 4
        3 158 - 161
               
Financial assets designated at fair value through profit or loss            
  Equity securities     1 4 - 5
  Debt securities     63 102 16 182
  Mutual funds     - 23 1 24
        64 130 17 211
               
Financial assets related to unit-linked insurance            
  Equity securities     27 101 - 128
  Debt securities     16 349 1 365
  Derivative financial instruments     - 8 - 8
  Mutual funds *)   1,532 231 54 1,817
        1,576 688 54 2,318
               
Financial assets available-for-sale            
  Equity securities     1,313 0 74 1,387
  Debt securities     1,522 10,437 93 12,053
  Mutual funds *)   875 261 501 1,637
        3,710 10,698 668 15,077
               
Total financial assests measured at fair value     5,353 11,675 740 17,768
               
*) Mutual funds differ from those disclosed in the Annual Report 2009 due to the defined classifications.
               
Financial liabilities 31.12.2009            
               
Derivative financial instruments            
  Interest rate derivatives     - 3 - 3
  Foreign exchange derivatives     - 117 - 117
  Equity derivatives     - 7 - 7
  Other derivatives     - 0 - 0
               
Total financial liabilities measured at fair value     - 127 - 127
               
               
Sensitivity analysis of fair values
               
The sensitivity of financial assets and liabilites to changes in exchange rates is assessed on business area level due to differenct base currencies. In P&C insurance, 10 percentage point depreciation of all other currencies against SEK would have resulted in an effect reognised in profit/loss of EURm 14 and in an effect recognised directly in equity of EURm -10. In Life insurance, 10 percentage point depreciation of all other currencies against EUR would have resulted in an effect recognised in profit/loss of EURm -12 and in an effect recognised directly in equity of EURm -72. In holding, 10 percentage point depreciation of all other currencies against EUR would have resulted in an effect recognised in profit/loss of EURm -2 and in an effect recognised idredctly in equity of EURm -2.
 
The sensitivity analysis of the Group's fair values of financial assets and liabilities in differenct market risk scenarios is presented below. The effects represent the instantaneous effects of a one-off change in the underlying market variable on the fair values on 31 Dec. 2010.
 
The sensitivity analysis includes the effects of derivative positions. All sensitivities are calculated before taxes. The debt issued by is not included.Sampo plc
               
        Interest rate Equity Other financial investments
        1 % parallel shift down 1 % parallel shift up 20 % fall in prices 20 % fall in prices
  Effect recognised in profit/loss     5 -10 0 -4
  Effect recognised directly in equity     281 -266 -671 -146
               
  Total effect     286 -276 -671 -151
               
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