Suomi-yhtiö Annual Report 2008

Review by the President and CEO

We steered our operations in accordance with the changing solvency requirements. In the financial statements, the provisions are calculated on the old bases. An exceptional year uncovered the problems contained in the new requirements.

Report by the Board of Directors

On 31 December 2008, the consolidated solvency capital totalled EUR 997 million (EUR 1,214 million the previous year) and the solvency ratio in proportion to technical provisions was 19.9% (21.9%). The consolidated balance sheet totalled EUR 6,089 million.

Investment Operations

The annual return on investment operations was -4.0 per cent. The result was weak in the light of the company’s objectives, but considering the general market trends, Suomi Mutual’s investment performance was reasonably good. The company managed to hedge its equity investments. The yield on the interest rate swap agreements hedging technical provisions was significantly large in last year’s investment environment.

Annual Accounts

Suomi Mutual will publish its 2008 Annual Report in both a web-based version and as a pdf file. It will be available in Finnish and English. The financial statements material included in the annual report is a shortened version of the official financial statements.

Customer Benefits

There were very few additional benefits assigned for 2008. In an uncertain global financial situation the return of solvency capital as special additional benefits was stopped, because sufficient solvency acts as a buffer to protect customers’ funds and enables good returns to be achieved as the markets recover.

PDF File

The pdf report is easy to print as a single document.