Business Wire

Elliott Releases Presentation on Sampo

Share

Elliott Advisors (UK) Limited (“Elliott” or “we”), which advises funds that as at the date of this release collectively hold investments equivalent to more than 3% of the share capital of Sampo Oyj (“Sampo” or the “Company”), today published a new presentation outlining a clear pathway to transform Sampo into a pure-play insurer and create in excess of EUR 8 billion of value.

Whilst Sampo’s announcement of 10 November 2020 was a positive first step towards making the structural simplifications necessary to re-establish the Company’s reputation among investors, Sampo’s shares have continued to underperform. Today, Sampo’s high quality core insurance business trades at an unmerited ~5x P/E discount to its peers; this sits in stark contrast to the ~4x P/E premium the business used to trade at several years ago.

Elliott believes that Sampo’s upcoming Capital Markets Day (“CMD”) on 24 February 2021 is the opportune moment for the Company to reverse this historical underperformance and value destruction, highlight its strengths and restore investor confidence. As such, Elliott encourages Sampo to:

  1. Simplify the Portfolio: Sampo should announce that it plans to become a pure-play insurer by Q4 2021. The Company’s Nordea stake is widely acknowledged to have become a significant distraction and a sustained drag on valuation for Sampo. In a survey of investors commissioned by Elliott, the vast majority of respondents indicated they would like to see a full exit from the Nordea stake within the next twelve months. Sampo is positioned to satisfy investor demands by distributing half of Sampo’s Nordea shares directly to shareholders – an act that over two-thirds of investors surveyed are supportive of – in Q2 2021 and selling the remainder to maintain a healthy balance sheet.
  2. Clarify the Strategy: Importantly, Sampo should assert that without the overhang of the Nordea stake, the Company will commit to being a dividend-focused P&C insurer, with no material M&A ambitions outside the Nordics until the Hastings deal proves successful. We believe that there is widespread confusion amongst investors about the Sampo equity story, including scepticism on the rationale for the Hastings transaction and Sampo’s future M&A appetite. What is clear is that investors are seeking greater focus on stable dividends, viewed as the lifeblood of a highly rated insurance company, and a commitment by Sampo to become a focused P&C insurer. The stability and growth prospects of IF P&C ideally position Sampo to become the stable dividend payer that investors seek; however, concerns about Sampo’s capital allocation strategy must be resolved before the market can give Sampo the credit it deserves.
  3. Enhance the Communications: IF P&C is Sampo’s crown jewel.Sampo should clearly and confidently articulate IF P&C’s strong fundamentals and provide the market with relevant, timely and specific targets and KPIs. Shining a spotlight on IF P&C will enable Sampo to recover its premium valuation.

Elliott believes that these measures and the transformation of Sampo into a pure-play insurer would collectively restore investor confidence and unlock in excess of EUR 8 billion in value for Sampo’s shareholders.

Elliott today launched a new website www.SimplifyingSampo.com, where Elliott’s presentation is available to view and download in full. Interested parties are encouraged to visit the website to receive additional information and to sign up for future updates.

About Elliott

Elliott Investment Management L.P. manages approximately $41 billion of assets. Its flagship fund, Elliott Associates, L.P., was founded in 1977, making it one of the oldest funds under continuous management. The Elliott funds’ investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm. Elliott Advisors (UK) Limited is an affiliate of Elliott Investment Management L.P.

Disclaimer

Elliott intends to reviews its investments in the company on a continuing basis and depending upon various factors, including without limitation, the company’s financial position and strategic direction, the outcome of any discussions with the company, overall market conditions, other investment opportunities available to Elliott Management, and the availability of company securities at prices that would make the purchase or sale of company securities desirable, Elliott may from time to time (in the open market or in private transactions, including since the inception of Elliott position) buy, sell, cover, hedge or otherwise change the form or substance of any of its investments (including company securities) to any degree in any manner permitted by law and expressly disclaims any obligation to notify others of any such changes. Elliott also reserves the right to take any actions with respect to its investments in the company as it may deem appropriate.

Contact information

London
Sarah Rajani CFA
Elliott Advisors (UK) Limited
T: +44 (0)20 3009 1475
srajani@elliottadvisors.co.uk

Finland
Mikael Jungner
Kreab
T: +35 850 554 1615
mikael.jungner@kreab.com

Sweden
Christina Rinman
Diplomat Communications
M: +46 709 711 213
christina.rinman@diplomatcom.com

About Business Wire

Business Wire
Business Wire



Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

SHINE, Phoenix merger focused on advancing fusion technology20.4.2021 20:00:00 CEST | Press release

SHINE Medical Technologies LLC and Phoenix LLC today announced that the companies have completed a merger under which Phoenix has become a wholly owned subsidiary of SHINE. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210420006038/en/ Greg Piefer, CEO of SHINE (left), talks with Evan Sengbusch, general manager of SHINE's Phoenix division, and Ross Radel, chief technology officer and chief operating officer of the Phoenix division, at the Phoenix headquarters and manufacturing center in Fitchburg, Wis., on April 16, 2021. (Photo: SHINE Medical Technologies) SHINE is a next-generation nuclear technology company focused on unlocking the power of fusion technologies to benefit the planet and humankind. The company’s goal is to deliver on the long-term promise of clean fusion energy by advancing fusion technology starting with the commercialization of medical isotopes. Phoenix designs and manufactures the world’s strongest stea

Hilton Releases 2020 ESG Report, Reinforcing Commitment to Positive Global Impact20.4.2021 17:49:00 CEST | Press release

Hilton (NYSE: HLT) has released its 2020 Environmental, Social and Governance (ESG) Report, which highlights the company’s continued commitment to redefining sustainable travel and driving positive impact on people and the planet. Through Hilton’s Travel with Purpose program, the company continues to take important steps to integrate positive social impact and environmental stewardship throughout its operations, communities and supply chain. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210420005911/en/ Hilton releases 2020 ESG report, reinforcing commitment to positive global impact. (Photo: Business Wire) “As we weathered this unpredictable year, Hilton has remained focused on our Team Members and the communities we serve around the world,” said Kristin Campbell, general counsel and chief ESG officer, Hilton. “We took a nimble approach during this difficult period to deliver meaningful support, while remaining focused on

Xsolla Unifies Skill-Based Gaming and Esports Platform, Monetization and Subscription Programs20.4.2021 16:30:00 CEST | Press release

Xsolla, the video game commerce company powered by its Transaction Engine and Business Engine to help developers and publishers market, sell, connect and optimize their games globally, has launched their new esports solution, enabling video game developers, publishers, and esports event producers to create engaging fan experiences with safe and secure payment processing, globally. The new program provides a straightforward, streamlined solution for the fastest growing entertainment segment worldwide. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210420005530/en/ Xsolla Unifies Skill-Based Gaming and Esports Platform, Monetization and Subscription Programs (Graphic: Business Wire) With Xsolla’s full suite of products, companies can work with esports properties or build their own esports platform with streamlined payments and subscriptions plans. With programs that scale from small local skill-based matchups to massive global

The Federation of Royal Colleges of Physicians Approves UpToDate Clinical Decision Support for CPD20.4.2021 15:30:00 CEST | Press release

UpToDate, the clinical decision support tool from Wolters Kluwer, Health has been approved by the Federation of the Royal Colleges of Physicians of the United Kingdom as a continuing professional development (CPD) activity. The organization is a collaboration between the Royal College of Physicians of London, Royal College of Physicians of Edinburgh, and Royal College of Physicians and Surgeons of Glasgow. The colleges have more than 50,000 members among them worldwide. The approval of UpToDate comes following new guidelines introduced by the Federation that recognize the use of online resources with current medical content (e-libraries) as CPD. Earning CPD while caring for patients Members will now be able to earn and track credits eligible for continuing professional development while using UpToDate to research clinical questions at the point of care. CPD credits are earned from UpToDate by consulting information relevant to a specific clinical question, thus broadening clinical know

MSCI Calls on Capital to Lead the Net-Zero Revolution20.4.2021 15:21:00 CEST | Press release

Addressing climate change will require the largest reconstruction of the global economy since the Industrial Revolution, according to a report published today by MSCI Inc. (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community. ‘The Role of Capital in the Net-Zero Revolution’highlights how capital markets participants must be a powerful and positive force to urgently drive the systemic transformation needed to avert climate catastrophe. This call to action identifies specific steps that companies as well as owners and managers of capital must take to drive the achievement of a net-zero economy by 2050. Analysis by MSCI of its All Country World Investable Markets Index (MSCI ACWI IMI) - a measure of approximately 9,000 publicly listed companies across 50 developed and emerging markets with a market value of over USD 70 trillion1 – revealed those companies annually emit an estimated 11.2 gigatons of carbon dioxide equivalent (

PPG Reports Increased Sales of Sustainably Advantaged Products, Continued Progress on Sustainability Goals20.4.2021 15:04:00 CEST | Press release

PPG (NYSE:PPG) today launched its 2020 Sustainability Report, highlighting the company’s strong, continued progress against key environmental, social and governance (ESG) areas. The report is available at sustainability.ppg.com. “Our unwavering commitment to ‘protect and beautify the world’ guides our more than 46,000 employees to further advance our sustainability progress each day,” said Michael H. McGarry, PPG chairman and chief executive officer. “We continue to innovate, invest and develop sustainably advantaged products and processes that our customers and other stakeholders count on to create a more sustainable future. As highlighted in our latest Sustainability Report, we have made significant progress within our many ESG-related initiatives, and we continue to drive our ambitious targets forward.” Throughout last year, PPG improved the sustainability of its products, processes and operations, decreasing its overall global environmental footprint. Achievements included: 35% of

Tradeweb Joins Climate Bonds Initiative Partners Program20.4.2021 15:00:00 CEST | Press release

Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today announced it has joined the Climate Bonds Initiative’s Partners Program, a global movement seeking to mobilise bond markets for climate change solutions. Climate Bonds Initiative is an international, investor-focused not-for-profit organisation, promoting investment in projects and assets necessary for a rapid transition to a low carbon and climate resilient economy. The Climate Bonds Standard and Certification Scheme is a labelling scheme for bonds, loans and other debt instruments. The rigorous scientific criteria ensure consistency with the goals of the Paris Climate Agreement. The Scheme is used globally by bond issuers, governments, investors and the financial markets to prioritize investments, which genuinely contribute to addressing climate change. The Climate Bonds Initiative has been tracking the green labelled market since 2009. By par

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom