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Notes to the Group’s Financial Statements

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 31.12.2013
Derivative financial instruments
Interest rate swaps 1 51 - 52
Other interest derivatives - 0 - 0
Foreign exchange derivatives - 12 - 12
Equity derivatives - 14 - 14
1 77 - 78
Financial assets designated at fair value through profit or loss
Equity securities 2 - - 2
Debt securities - 46 0 46
2 46 0 48
Financial assets related to unit-linked insurance
Equity securities 324 2 13 339
Debt securities 14 1,069 19 1,101
Derivative financial instruments 2,098 804 64 2,966
Mutual funds - 26 - 26
2,436 1,901 97 4,433
Financial assets available-for-sale *)
Equity securities 1,583 - 243 1,826
Debt securities 1,874 10,858 39 12,770
Mutual funds 993 124 720 1,836
4,449 10,981 1,002 16,432
Total financial assests measured at fair value 6,887 13,006 1,099 20,992
FINANCIAL LIABILITIES 31.12.2013
Derivative financial instruments
Interest rate derivatives 1 14 - 15
Foreign exchange derivatives - 22 - 22
Equity derivatives - 16 - 16
Total financial liabilities measured at fair value - 52 - 53
EURm Level 1 Level 2 Level 3 Total
FINANCIAL ASSETS 31.12.2012
Derivative financial instruments
Interest rate swaps 2 62 - 64
Other interest rate derivatives - 2 - 2
Foreign exchange derivatives - 87 - 87
Equity derivatives - 16 - 16
2 166 - 168
Financial assets designated at fair value through profit or loss
Equity securities 3 - - 3
Debt securities - 66 - 66
3 66 - 70
Financial assets related to unit-linked insurance
Equity securities 239 67 14 320
Debt securities - 808 17 826
Derivative financial instruments 1,821 520 50 2,390
Mutual funds - 16 - 16
2,060 1,412 81 3,553
Financial assets available-for-sale *)
Equity securities 1,535 - 69 1,603
Debt securities 253 12,439 73 12,764
Mutual funds 1,131 118 894 2,143
2,918 12,557 1,036 16,511
Total financial assests measured at fair value 4,984 14,201 1,117 20,301
FINANCIAL LIABILITIES 31.12.2012
Derivative financial instruments
Interest rate derivatives - 4 - 4
Foreign exchange derivatives - 39 0 39
Equity derivatives - - 19 19
Total financial liabilities measured at fair value - 43 19 62
*) During the financial year, debt securities EURm 19 (7) were transferred from level 1 to level to 2. From level 2 to level 1 were transferred EURm 151 (-). Mutual funds EURm 34 were transferred from level 2 to level 1 in the comparsion year.
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 result in an increase recognised in profit/loss of EURm 12 (15) and in a decrease recognised directly in equity of EURm 11 (11). In Life insurance, 10 percentage point depreciation of all other currencies against EUR would result in an increase recognised in profit/loss of EURm 14 (52) and in a decrease recognised directly in equity of EURm 68 (64). In Holding, 10 percentage point depreciation of all other currencies against EUR would have no impact in profit/loss, but a decrease recognised in equity of EURm 15 (3).
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. 2013.
The sensitivity analysis includes the effects of derivative positions. All sensitivities are calculated before taxes.
The debt issued by Sampo plc is not included.
          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 9 -23 0 -4
Effect recognised directly in equity 192 -186 -550 -169
Total effect 202 -210 -550 -173
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